Economic value generated is calculated according to instructions from the Italian Banking Association (ABI) and in line with international reference standards. The calculation is made by reclassifying consolidated income statement items recorded in the financial statements, as required by Bank of Italy Circular No. 262. The economic value generated, which in 2016 was 15.4 billion euro, came from net income from financial operations and the insurance business – which therefore takes into account impairment losses on loans and financial assets available for sale – plus realised gains and losses on investments and discontinued operations and other operating income. The amount of economic value generated expresses the value of wealth produced, most of which is distributed among stakeholders with whom the Group interacts in various ways on a daily basis. In particular:
- employees and other staff benefited from over 39% of the economic value generated, for a total of 6.1 billion euro. In addition to staff pay, the total also includes payments to the network of financial advisors;
- suppliers received approximately 17% of the economic value generated, for a total of 2.6 billion euro as payment for goods and services;
- government, organisations and institutions recorded a total flow of funds of 2.3 billion euro, equal to around 15% of the economic value generated, over 800 million euro of which referring to taxes on income from continuing operations, almost 900 million euro to indirect taxes and duties, and 578 million to levies and other charges concerning the banking industry, consisting of ordinary and extraordinary contributions to resolution funds and guarantee schemes. There were also numerous social and cultural initiatives and other actions taken to support the charity funds and social and cultural disbursements;
- approximately 21% of the economic value generated was allocated to Shareholders and minority interest, and mainly for the proposed dividend, for a total of 3.2 billion euro.
The remaining amount, of around 1.3 billion euro, was withheld by the corporate system. This refers to deferred tax assets and liabilities, amortisation, depreciation and provisions for risks and charges. Self-financing is considered an investment that other stakeholder categories make each year to maintain efficiency and allow development of the Bank as a whole.
|ECONOMIC VALUE||Millions of euro||[%]|
|ECONOMIC VALUE GENERATED||15,373||100.0|
|ECONOMIC VALUE DISTRIBUTED||-14,104||91.7|
|Employees and staff||-6,075||39.5|
|Government, organisations and institutions, communities||-2,275||14.8|
|Shareholders, holders of equity instruments and third parties||-3,199||20.8|
|ECONOMIC VALUE RETAINED||1,269||8.3|
Breakdown of 2016 economic value