GROUP OPERATING RESULTS

The Poste Italiane Group’s profit for 2016 amounts to €622 million, a 12.7% improvement on the figure for 2015, amounting to €552 million. Operating profit of €1,041 million is up 18.3% on the €880 million of 2015. Despite the fact that the Postal and Business Services segment contributed a loss of €436 million, this is an improvement of 23.2% on the operating loss of €568 million for the previous year. This reflects the positive contribution from the fees paid by BancoPosta RFC in return for use of the Group’s distribution network.
The Financial Services segment recorded an operating profit of €813 million (€907 million in 2015), after benefitting from non-recurring income generated by the sale of the Group’s investment in Visa Europe Ltd.(12), which took place as part of Visa Inc.’s acquisition of this company, and returns on BancoPosta RFC’s investments. In contrast, as described below, the result also reflects other provisions for risks and charges, made to cover the estimated cost of voluntary action taken to protect customers who purchased units issued by the Invest Real Security real estate fund.
The Insurance Services and Asset Management segment reports operating profit of €636 million (up 24.7%) and an excellent operating performance, with €19.9 billion in premium revenue during the period (€18.2 billion in 2015).

RECLASSIFIED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

	for the year ended 31 December		Increase/(decrease)
(€m)	2016	2015	Amount	%
Revenue from sales and services and insurance premium revenue	28,627	27,007	1,620	6.0%
Postal and Business Services	3,768	3,818	(50)	-1.3%
Financial Services	4,683	4,707	(24)	-0.5%
Insurance Services and Asset Management	19,953	18,243	1,710	9.4%
Other Services	223	239	(16)	-6.7%
Other income from financial and insurance activities	4,421	3,657	764	20.9%
Financial Services	604	442	162	36.7%
Insurance Services and Asset Management	3,817	3,215	602	18.7%
Other operating income	64	75	(11)	-14.7%
Postal and Business Services	54	64	(10)	-15.6%
Financial Services	7	6	1	16.7%
Insurance Services and Asset Management	2	1	1	n/s
Other Services	1	4	(3)	-75.0%
Total revenue	33,112	30,739	2,373	7.7%
Cost of goods and services	2,476	2,590	(114)	-4.4%
Net change in technical provisions for insurance business and other claims expenses	21,958	19,683	2,275	11.6%
Other expenses from financial and insurance activities	539	689	(150)	-21.8%
Personnel expenses	6,241	6,151	90	1.5%
Capitalised costs and expenses	(25)	(33)	8	24.2%
Other operating costs	301	198	103	52.0%
Total costs	31,490	29,278	2,212	7.6%
EBITDA	1,622	1,461	161	11.0%
Depreciation, amortisation and impairments	581	581	-	n/s
Operating profit/(loss)	1,041	880	161	18.3%
Finance income/(costs)	9	50	(41)	-82.0%
Profit/(loss) on investments accounted for using the equity method	6	3	3	n/s
Profit/(Loss) before tax	1,056	933	123	13.2%
Income tax expense	434	381	53	13.9%
Profit for the year	622	552	70	12.7%

n/s: not significant

Total revenue by operating segment

	for the year ended 31 December		Increase/(decrease)
(€m)	2016	2015
Postal and Business Services	3,822	3,882	(60)	-1.5%
Financial Services	5,294	5,155	139	2.7%
Insurance Services and Asset Management	23,772	21,459	2,313	10.8%
Other Services	224	243	(19)	-7.8%
Total revenue	33,112	30,739	2,373	7.7%

Total revenue of €33.1 billion is up 7.7% on 2015. The improvement primarily reflects the positive performance of insurance services and asset management, where total revenue amounts to €23.8 billion (up 10.8% compared with the previous year).
Postal and Business Services contributed total revenue of €3,822 million, registering a reduction of 1.5% due to the expected decline in traditional letter post. It should be noted that there has been an ongoing slowdown in the pace of decline in this segment’s total revenue over a number of quarters. Despite this, the decline in revenue from traditional letter post is only partially being replaced by revenue from the parcels business. Revenue for the year also includes portions of Universal Service compensation relating to previous years, as described in more detail below.
Total revenue from Financial Services amounts to €5,294 million, marking an increase of 2.7% due to a rise in “Other income from financial activities”, which is up from €442 million in 2015 to €604 million in 2016. This income includes €121 million in non-recurring income generated by the sale of the Group’s investment in Visa Europe Ltd..
As noted above, the Insurance Services and Asset Management segment which, from 1 January 2016, also includes the activities of BancoPosta Fondi Sgr, delivered excellent results during the year (€23.8 billion in total revenue), with Poste Vita and its subsidiary, Poste Assicura, recording premium revenue of €19.9 billion (premium revenue of €18.2 billion in 2015). This primarily reflects the performances of traditional Class I investment and savings products, where the Group has built up a strong presence.
Total revenue from Other Services amounts to €224 million (€243 million in 2015) and is generated by Poste Mobile.

OPERATING RESULTS BY OPERATING SEGMENT

2016 (€m)	Postal and Business Services	Financial Services	Insurance Services and Asset Management	Other Services	Adjustments and eliminations	Total
External revenue	3,822	5,294	23,772	224	–	33,112
Intersegment revenue	4,540	543	1	44	(5,128)	–
Total revenue	8,362	5,837	23,773	268	(5,128)	33,112
Costs	8,713	518	22,620	220	–	32,071
Intersegment costs	85	4,506	517	20	(5,128)	–
Total costs	8,798	5,024	23,137	240	(5,128)	32,071
Operating profit/(loss)	(436)	813	636	28	–	1,041

2015 (€m)	Postal and Business Services	Financial Services	Insurance Services and Asset Management	Other Services	Adjustments and eliminations	Total
External revenue	3,882	5,155	21,459	243	–	30,739
Intersegment revenue	4,331	491	–	91	(4,913)	–
Total revenue	8,213	5,646	21,459	334	(4,913)	30,739
Costs	8,650	441	20,484	284	–	29,859
Intersegment costs	131	4,298	465	19	(4,913)	–
Total costs	8,781	4,739	20,949	303	(4,913)	29,859
Operating profit/(loss)	(568)	907	510	31	–	880

POSTAL AND BUSINESS SERVICES

POSTAL AND BUSINESS SERVICES SEGMENT PROFIT OR LOSS

(€m)	2016	2015	Increase/ (decrease)
Revenue from sales and services	3,768	3,818	(50)	-1.3%
Other operating income	54	64	(10)	-15.6%
Total external revenue	3,822	3,882	(60)	-1.5%
Intersegment revenue	4,540	4,331	209	4.8%
Total revenue	8,362	8,213	149	1.8%
Cost of goods and services	2,048	2,116	(68)	-3.2%
Personnel expenses	6,059	5,974	85	1.4%
Depreciation, amortisation and impairments	536	530	6	1.1%
Capitalised costs and expenses	(25)	(33)	8	24.2%
Other operating costs	95	63	32	50.8%
Intersegment costs	85	131	(46)	-35.1%
Total costs	8,798	8,781	17	0.2%
Operating profit/(loss) (EBIT)	(436)	(568)	132	23.2%

The Postal and Business Services segment reports an operating loss of €436 million, although this marks an improvement of €132 million on 2015 (a loss of €568 million).
This reflects an increase in intersegment revenue (up €209 million on 2015), which is regulated by specific internal operating guidelines governing the fees payable for services provided to the Financial Service segment. This made up for the reduction in volumes and revenue generated by the external market (down €60 million compared with 2015) primarily attributable to the decline in traditional letter post. The increase in intersegment revenue from distribution services also reflects the results generated by active management of BancoPosta’s investment portfolio and the above gain on the sale of the investment in Visa Europe.
An analysis of costs reveals a reduction in the cost of goods and services (down €68 million on 2015), primarily due to efficiency improvements achieved during the year, whilst personnel expenses are up (rising €85 million compared with 2015). The latter trend reflects non-recurring expenses linked to the cost of early retirement incentives during the year, and provisions for restructuring charges, made to cover the estimated costs to be incurred by the Parent Company for early retirement incentives. These items offset the impact of the reduction in the average workforce in 2016, compared with the average for the previous year.

FINANCIAL SERVICES

FINANCIAL SERVICES SEGMENT PROFIT OR LOSS

(€m)	2016	2015	Increase/ (decrease)
Net interest income	1,517	1,543	(26)	-1.7%
Interest and similar income	1,591	1,601	(10)	-0.6%
Interest and similar expense	74	58	16	27.6%
Net fee and commission income	3,586	3,528	58	1.6%
Fee and commission income	3,653	3,583	70	2.0%
Fee and commission expense	67	55	12	21.8%
Profits/(Losses) on trading, on disposals or repurchases and fair value adjustments in hedge accounting	582	429	153	35.7%
Net interest and other banking income	5,685	5,500	185	3.4%
Net losses /recoveries on impairment of loans and advances	(6)	(9)	3	-33.3%
Net income from banking activities	5,679	5,491	188	3.4%
Administrative expenses:	4,702	4,495	207	4.6%
personnel expenses	126	124	2	1.6%
other administrative expenses	4,576	4,371	205	4.7%
Net provisions for risks and charges	132	59	73	n/s
Other operating income/(expenses)	32	30	2	6.7%
Operating expenses	4,866	4,584	282	6.2%
Operating profit/(loss) (EBIT)	813	907	(94)	-10.4%

n/s: not significant

Operating profit generated by the Financial Services segment in 2016 amounts to €813 million, down 10.4% compared with the previous year (€907 million in 2015). This essentially reflects an increase in operating expenses (up 6.2% compared with 2015, as detailed below), partially offset by an improvement in net interest and other banking income, which totals €5,685 million (up 3.4% compared with the €5,500 million of 2015).
Net interest income of €1,517 million marks a slight reduction of 1.7% (€1,543 million in 2015), essentially reflecting a reduction in the return earned by BancoPosta RFC on deposits with the Ministry of the Economy and Finance, in line with market trends.
Net fee and commission income is up from €3,528 million in 2015 to €3,586 million in 2016. This income primarily consists of commissions earned on the distribution of postal savings products, totalling €1,577 million, and €2,026 million from the processing of bills paid by payment slip, insurance broking, the distribution of loan products and other collection and payment services.
Net interest and other banking income is up from €5,500 million in 2015 to €5,685 million (up 3.4%), primarily due to gains on the sale of available-for-sale financial assets held by BancoPosta RFC, totalling €594 million (€426 million in the previous year). This figure includes the impact of the sale of the investment in Visa Europe Ltd. to Visa Incorporated, which resulted in non-recurring income of €121 million, in recognition of Poste Italiane’s contribution over the years as a provider of electronic money services. The result also reflects specific impairment losses of €13.7 million on non-performing loans at Banca del Mezzogiorno-Medio Credito Centrale (BdM-MCC).

Net income from banking activities is up €188 million from the €5,491 million of 2015 to €5,679 million in 2016, after impairment losses on loans of €6 million, including the impairment of overdrawn current accounts held by BancoPosta’s customers.
Operating expenses are up 6.2% on the same period of the previous year, due primarily to an increase in intersegment costs paid for the services provided by the distribution network to the Financial Services segment (regulated by specific internal operating guidelines), and to an increase in net provisions for risks and charges, due to the voluntary initiative designed to protect customers who had invested in real estate funds marketed by Poste Italiane between 2002 and 2005 (further information is provided in the section of the Report on Operations containing the BancoPosta RFC Management Review – Risk management system).
This item also includes the impairment of €37 million recognised in order to bring the value of BdM-MCC’s net assets into line with their estimated realisable value. This impairment was rendered necessary by the agreement to transfer Poste Italiane’s entire interest in BdM-MCC to Invitalia. The agreement was finalised on 8 February 2017 and the transfer will take place in 2017.

INSURANCE SERVICES AND ASSET MANAGEMENT

INSURANCE SERVICES AND ASSET MANAGEMENT SEGMENT PROFIT OR LOSS

(€m)	2016	2015	Increase/ (decrease)
Net insurance premium revenue	19,884	18,197	1,687	9.3%
gross premium revenue	19,929	18,238	1,691	9.3%
outward reinsurance premiums	45	41	4	9.8%
Fee and commission income	60	44	16	36.4%
Net financial income from assets related to traditional products	3,274	2,352	922	39.2%
Net financial income from assets related to index- and unit-linked products	35	193	(158)	-81.9%
Net change in technical provisions for insurance business and other claims expenses	21,958	19,683	2,275	11.6%
Claims paid	7,471	8,038	(567)	-7.1%
Net change in technical provisions for insurance business	14,507	11,660	2,847	24.4%
Change in technical provisions where investment risk is transferred to policyholders	(20)	(15)	5	33.3%
Investment management expenses	17	15	2	13.3%
Acquisition and administration costs	633	562	71	12.6%
Net commissions and other acquisition costs	482	436	46	10.6%
Operating costs	151	126	25	19.8%
Other revenues/(costs), net	(9)	(16)	7	-43.8%
Operating profit/(loss) (EBIT)	636	510	126	24.7%

Operating profit generated by the Insurance Services and Asset Management segment amounts to €636 million, marking an increase of 24.7% on the previous year. This primarily reflects the positive performance of the Poste Vita Group, whose operations resulted in total premium revenue of €19.9 billion, after the portion ceded to reinsurers (up 9.3% on premium revenue of €18.2 billion in 2015). This was generated primarily by the sale of life products, amounting to €19.8 billion (€18.1 billion in 2015), whilst €80 million was generated by sales of non-life products.
With regard to assets under management, the period saw an increase in inflows into mutual investment funds, generating commission income of €60 million in 2016 (up 36.4% on the previous year).
Despite a market scenario marked by a high degree of volatility and falling yields on government securities, net finance income from securities related to traditional products amounts to €3,274 million, up on the €2,352 million of 2015. This reflects both an increase in ordinary income, thanks to growth in assets under management, and above all financial market trends, which resulted in the recognition of net unrealised gains of €475 million, compared with losses of €435 million in 2015. However, given that these investments are included in the separately managed accounts covering the matching insurance liabilities, this amount has been attributed in full to policyholders under the shadow accounting method.
Finance income from investments linked to index- and unit-linked products amounts to approximately €35 million in 2016, down on the figure of €193 million recorded in 2015, primarily reflecting heightened financial market volatility and the number of Class III products reaching maturity. This amount is almost entirely matched by a corresponding change in technical provisions.

As a result of the above operating performance and the corresponding revaluation of insurance liabilities due to the positive financial performance, the matching change in technical provisions, after the portion ceded to reinsurers, amounts to €22.0 billion, compared with €19.7 billion in the same period of the previous year. Of the above change, claims paid to customers, inclusive of policy expirations of approximately €3.8 billion, amount to approximately €7.5 billion (€8.0 billion in 2015). Total surrenders accounted for 2.9% of initial provisions (3.3% in 2015), a figure that continues to be far lower than the industry average.

As a result of the above, net premium revenue at the end of 2016 amounts to approximately €12.4 billion (€10.1 billion 2015). Investment management expenses, amounting to €17 million (€15 million in 2015), primarily regard portfolio management fees and fees for the custody of securities. The increase is due to growth in the portfolio.
Given the positive operating performance, infra-group commissions for distribution and collection amount to €482 million (€436 million in 2015). The increase has benefitted the Group’s Financial Services segment, which is responsible for marketing the products, and the Postal and Business Services segment in return for the distribution services provided.
Operating expenses of €151 million are up 19.8% compared with the €126 million of 2015. This reflects increases in the quality and size of the Group’s workforce, needed in order to respond to the continuous growth in size and business volumes, and its investment in ongoing functional/infrastructural improvements to key business support systems. However, operating expenses continue to be far lower than the industry average at 0.8% of premium revenue and 0.1% of provisions.

OTHER SERVICES

OTHER SERVICES SEGMENT PROFIT OR LOSS

(€m)	2016	2015	Increase/ (decrease)
Revenue from sales and services	223	239	(16)	-6.7%
Other operating income	1	4	(3)	-75.0%
Total external revenue	224	243	(19)	-7.8%
Intersegment revenue	44	91	(47)	-51.6%
Total revenue	268	334	(66)	-19.8%
Cost of goods and services	167	217	(50)	-23.0%
Personnel expenses	17	21	(4)	-19.0%
Depreciation, amortisation and impairments	30	39	(9)	-23.1%
Other operating costs	6	7	(1)	-14.3%
Intersegment costs	20	19	1	5.3%
Total costs	240	303	(63)	-20.8%
Operating profit/(loss) (EBIT)	28	31	(3)	-9.7%

The Other Services segment, which includes the company, PosteMobile, reports operating profit of €28 million for 2016, down €3 million on the previous year (€31 million in 2015).
The reduction reflects the performance of revenue, which is down 19.8% to €268 million, primarily as a result of the extraordinary transaction consisting of the demerger of the fixed line telecommunications business¹ and its transfer to Poste Italiane SpA, resulting in a reduction of €47 million in intersegment revenue (down 51.6% on 2015).
In the mobile telecommunications business, the trend towards a gradual repositioning of the offering towards flat-rate offerings continued, with a reduction in pay-as-you-go voice and messaging revenue only to a small extent offset by an increase in data revenue.
The cost of goods and services is down 23% compared with the previous year to €167 million, reflecting the above demerger and the cost efficiencies resulting from the contract with the new operator that has enabled PosteMobile to sell its own SIM cards as a Full MVNO and to migrate SIMs from the ESP platform.
Personnel expenses are also down 19% (down €4 million compared with 2015), following a reduction in the workforce, which is down from an average of 309 FTEs in 2015 to 249 in 2016. The decrease primarily reflects the transfer of the workforce employed by the fixed line telecommunications business to the Parent Company.
Depreciation and amortisation is down approximately €9 million, primarily as a result of the demerger of the fixed line telecommunications business, whilst other operating costs and provisions are down €1 million due to reduced impairment losses on trade and other receivables.

At 31 December 2016, PosteMobile’s customer base totals 3.65 million lines, up 1.3% on 31 December 2015. Good performances were registered both by voice services, with over 5.3 billion minutes used during the period (up 0.2% on 2015), and above all by data services provided over PosteMobile’s network, with an increase to 6.7 thousand terabytes (up 76% on 2015).
In 2016, PosteMobile further strengthened its position in the mobile payment services market, registering total transactions of in excess of €1 billion, up 89% on the figure for 2015. This growth was made possible by the role played by the PosteMobile and BancoPosta apps.
Thanks to ongoing updates of the functions and user experiences offered, the PosteMobile APP continues to be one of the most popular and widely used apps in the segment. With over 2 million downloads and an average customer rating in stores of 4.2 (on a scale of 1-5), it is one of the leading mobile wallet services in the Italian mobile market. The value of transactions has exceeded €520 million, marking a further 6% improvement on the performance registered in the previous year. There was an increase in the number of customers to almost 2 million (SIM PosteMobile SIMs or the SIMs of other operators), able to carry out financial transactions simply and securely through mobile digital channels. The BancoPosta APP, made available to all Poste Italiane customers from July 2015, regardless of their mobile operator, also achieved positive results, with over 600 thousand customers enabled to use its payment services and transactions amounting to over €518 million during the year.

¹ On 26 January 2016, Poste Italiane’s Board of Directors approved the partial demerger of PosteMobile’s fixed line telecommunications business to the Parent Company. The deed was formally executed on 27 April 2016.

Key performance indicators for principal Poste Italiane Group companies

The figures shown in the tables below reflect the financial and operational indicators (as deduced from the related reporting packages) of the principal Group companies, prepared in accordance with International Financial Reporting Standards (IFRS) and approved by the boards of directors of the respective companies.

POSTEL S.P.A. ⁽*⁾

			Increase/(decrease)
(€000)	2016	2015	Amount	%
Revenue from sales and services	215,593	224,366	(8,773)	-3.9%
Operating profit/(loss)	(7,721)	570	(8,291)	n/s
Profit/(loss) for the period	(7,968)	(3,535)	(4,433)	n/s
Investment	12,120	13,561	(1,441)	-10.6%
Equity	96,081	103,265	(7,184)	-7.0%
Permanent workforce – average	1,162	1,186	(24)	-2.0%
Flexible workforce – average	29	33	(4)	-12.1%

^(*) In the first half of 2016, PosteShop SpA was merged with and into Postel SpA, effective for accounting and tax purposes from 1 May 2016.
n/s: not significant

SDA EXPRESS COURIER S.P.A.

			Increase/ (decrease)
(€000)	2016	2015	Amount	%
Revenue from sales and services	568,165	534,950	33,215	6.2%
Operating profit/(loss)	(35,612)	(51,071)	15,459	-30.3%
Profit/(loss) for the period	(28,904)	(39,322)	10,418	-26.5%
Investment	4,858	10,267	(5,409)	-52.7%
Equity^(*)	9,125	498	8,627	n/s
Permanent workforce – average	1,376	1,434	(58)	-4.0%
Flexible workforce – average	66	144	(78)	-54.2%

^(*) Equity includes the recapitalisation of €38 million carried out by the Parent Company in 2016.
n/s: not significant

POSTE TUTELA S.P.A.

			Increase/ (decrease)
(€000)	2016	2015	Amount	%
Revenue from sales and services	87,138	84,039	3,099	3.7%
Operating profit/(loss)	694	411	283	68.9%
Profit/(loss) for the period	503	258	245	95.0%
Investment	59	41	18	43.9%
Equity	13,153	12,662	491	3.9%
Permanent workforce – average	15	15	-	n/s

n/s: not significant

POSTECOM S.P.A.

			Increase/(decrease)
(€000)	2016	2015	Amount	%
Revenue from sales and services	73,770	79,015	(5,245)	-6.6%
Operating profit/(loss)	2,590	1,999	591	29.6%
Profit/(loss) for the period	1,786	77	1,709	n/s
Investment	6,606	7,579	(973)	-12.8%
Equity^(*)	15,529	21,003	(5,474)	-26.1%
Permanent workforce – average	283	289	(6)	-1.9%
Flexible workforce – average	2	6	(4)	-66.7%

^(*) During 2016, the company paid dividends totalling €7 million.
n/s: not significant

EUROPA GESTIONI IMMOBILIARI S.P.A.

			Increase/ (decrease)
(€000)	2016	2015	Amount	%
Revenue from sales and services	94,948	14,447	80,501	n/s
Operating profit/(loss)	4,671	2,000	2,671	n/s
Profit/(loss) for the period	1,585	943	642	68.1%
Investment	380	812	(432)	-53.2%
Equity	235,402	233,833	1,569	0.7%
Permanent workforce – average	26	30	(4)	-13.3%

n/s: not significant

MISTRAL AIR SRL

			Increase/(decrease)
(€000)	2016	2015	Amount	%
Revenue from sales and services	84,919	115,772	(30,853)	-26.6%
Operating profit/(loss)	(3,979)	1,078	(5,057)	n/s
Profit/(loss) for the period	(2,942)	573	(3,515)	n/s
Investment	611	88	523	n/s
Equity	1,687	4,577	(2,890)	-63.1%
Permanent workforce – average	143	152	(9)	-5.9%
Flexible workforce – average	43	77	(34)	-44.2%

n/s: not significant

BANCA DEL MEZZOGIORNO – MEDIOCREDITO CENTRALE S.P.A.

			Increase/(decrease)
(€000)	2016	2015	Amount	%
Net interest income	41,678	47,725	(6,047)	-12.7%
Net fee and commission income	49,581	44,055	5,526	12.5%
Profit/(loss) for the period	29,146	32,427	(3,281)	-10.1%
Financial assets	2,685,827	2,523,777	162,050	6.4%
Equity^(*)	425,042	425,511	(469)	-0.1%
Permanent workforce – average	293	274	19	6.9%
Flexible workforce – average	24	21	3	14.3%

^(*) During 2016, the company paid dividends totalling €26 million.

POSTE VITA S.P.A.⁽*⁾

			Increase/ (decrease)
(€000)	2016	2015	Amount	%
Insurance premium revenue^(**)	19,820,265	18,145,452	1,674,813	9.2%
Profit/(loss) for the period	377,511	388,421	(10,910)	-2.8%
Financial assets	115,417,452	102,210,858	13,206,594	12.9%
Technical provisions for insurance business	113,534,750	100,201,523	13,333,227	13.3%
Equity^(***)	3,292,074	3,283,955	8,119	0.2%
Permanent workforce – average	361	311	50	16.1%
Flexible workforce – average	4	3	1	33.3%

^(*) The figures shown have been prepared in accordance with IFRS and therefore may not coincide with those in the financial statements prepared under Italian GAAP and in accordance with the Italian Civil Code.
^(**) Insurance premium revenue is reported gross of outward reinsurance premiums.
^(***) During 2016, the company paid dividends totalling €340 million.

POSTE ASSICURA S.P.A.⁽*⁾

			Increase/ (decrease)
(€000)	2016	2015	Amount	%
Insurance premium revenue^(**)	108,415	93,287	15,128	16.2%
Profit/(loss) for the period	12,607	8,954	3,653	40.8%
Financial assets	178,146	139,884	38,262	27.4%
Technical provisions for insurance business	143,164	112,317	30,847	27.5%
Equity	76,057	65,225	10,832	16.6%
Permanent workforce – average	48	57	(9)	-15.8%

BANCOPOSTA FONDI S.P.A. SGR

			Increase/ (decrease)
(€000)	2016	2015	Amount	%
Fee income	75,493	58,084	17,409	30.0%
Net fee income	42,571	34,188	8,383	24.5%
Profit/(loss) for the period	21,751	16,496	5,255	31.9%
Financial assets (liquidity and securities)	62,242	65,851	(3,609)	-5.5%
Equity^(*)	46,013	56,820	(10,807)	-19.0%
Permanent workforce – average	55	52	3	5.8%
Flexible workforce – average	1	1	-	n/s

^(*) During 2016, the company paid dividends totalling €32 million.
n/s: not significant

POSTEMOBILE S.P.A. (*)

			Increase/(decrease)
(€000)	2016	2015	Amount	%
Revenue from sales and services	267,685	333,530	(65,845)	-19.7%
Operating profit/(loss)	28,345	31,116	(2,771)	-8.9%
Profit/(loss) for the period	17,903	18,726	(823)	-4.4%
Investment	20,549	29,077	(8,528)	-29.3%
Equity^(**)	56,043	66,657	(10,614)	-15.9%
Permanent workforce – average	211	308	(97)	-31.5%
Flexible workforce – average	7	5	2	40.0%

^(*) The partial demerger of the company’s fixed line telecommunications business to Poste Italiane was executed on 27 April 2016 and the transaction was effective for legal, accounting and tax purposes from 1 May 2016.
^(**) During 2016, the company paid dividends totalling €18 million.