For some time the Bank has envisaged means of renegotiating mortgage terms in order to meet the needs of households asking to adapt instalments to their changed income-generation capacity. Over 56,500 renegotiations were completed in 2015, for a corresponding residual debt amount of more than 5,558 million euro.
A solution launched in 2014 and updated in 2015 is “Rata Leggera”, a plan allowing customers who have contracted mortgage loans, for which the repayment began at least 12 months earlier and who have not defaulted on their payments, to suspend their principal payments for a maximum of 12 months, to cover unexpected expenses and overcome temporary hardship or as a means of freeing up funds in the household budget to be used in consumer goods and lifestyle improvement investments. There were 3,226 suspensions in 2015 for a total residual debt of 557.6 million euro.
The Group also participated in the Guarantee Fund for Main Home Purchasing, established by the 2014 Stability Law to facilitate access to credit by households for the purchase and energy efficiency of their main residence. Thanks to the Memorandum of Understanding between ABI and the Ministry of Economy and Finance, signed in October 2014, the beneficiaries - mostly young couples, single-parent families with minor children, young people under the age of 35 who hold an atypical employment contract and tenants of public housings owned by IACP - can get a guarantee on the principal amount of their loan (up to 50%). The lending Bank undertakes not to request additional guarantees besides the mortgage on the property and to apply, free of charge, the flexible options connected to the mortgage. Since its activation, which took place in February, 393 loans were disbursed, for a total of 42.3 million euro.
As part of the Solidarity Fund for first home mortgages, set up at the Ministry of Economy and Finance, 322 new requests for suspension were accepted during the year. Total suspensions, at the end of 2015, included about 3,500 mortgages for a total residual debt value of approximately 300 million euro.
A further agreement for the suspension of loans to households between ABI and the main Consumer Associations, following the provisions of the 2015 Stability Law, forms part of the banking system initiatives, consistent with the economic and regulatory scenario, aimed at ensuring support for families in need, allowing the suspension of payment of the loan principal for a maximum of 12 instalments. Since its activation, at the end of May, nearly 400 applications were approved, for a total residual debt value of nearly 12 million euro and deferred debt of over 3 million euro.
The topic of home purchase is of great importance in our country, and to deepen the analysis devoted to the trends of residential mortgages in Italy, and to their market, in 2015 a new quarterly publication of the Intesa Sanpaolo’s Research Department was launched called "Il monitor del mercato dei mutui” (The mortgage market monitor). The publication follows the dynamics of bank loans to households for house purchase and the conditions of access to credit, in particular the interest rates charged by banks and the evolution of demand and supply factors in this market. To complete the context analysis, it analyses the key indicators of the property market, i.e. prices, transactions and expectations of the sector operators. The analysis at the national level is coupled with the examination of the dynamics of regional markets, with details by region on the trend of residential mortgage loans to households, prices and transactions in residential properties @.
Aware that real estate sector is an important pillar for the recovery of the country and that the house is a fundamental value for Italians, already in 2014 Intesa Sanpaolo launched "Casa Insieme”, an initiative aimed at stimulating the real-estate market that enhances the saleability of newly-built properties financed by the Bank by bringing together buyers and sellers of new homes.
In 2015 this commitment led - as part of the new process of developing and expanding the services offered to customers, aimed at meeting customers' comprehensive home needs - to the establishment of Intesa Sanpaolo Casa, the new Group company with the objective of buying and selling residential real estate. By year end, real-estate agencies operating in Italy were thirteen, spread across Milan, Rome, Turin and Monza, managed by employees and set up as "shops in shops" within bank branches. Other agencies will be opened in major Italian cities during 2016.
Cutting edge services for home research, purchase, renovation and furnishing are being offered thanks to the agreements reached with two start-ups: CoContest, which puts property owners in touch with a network of architects to develop an interior design and property valuation project, and Habitissimo, which allows, through its online platform for professional services (carpenters, plumbers, electricians, movers, painters, etc.), to request and compare up to four quotes, and benefit from the support of user reviews. At year end, there were about 1,000 customers interested in buying or selling a home, assisted by the new company.
In relation to the establishment of Intesa Sanpaolo Casa, all agreements relating to the "Casa Insieme” initiative have expired on 31 December 2015, with no possibility of renewal.
In this period of economic crisis, Italian companies continue to have recourse to extraordinary lay-off payments and employees often receive the indemnity from INPS, the Italian Social Security Authority, after 7/8 months following the request. Since 2005, as support for laid-off employees, Intesa Sanpaolo has made use of the “Anticipazione Sociale” product.
Anticipazione Sociale offers the opportunity to open a time-release credit facility with particularly favourable terms. It can be used until INPS credits the worker’s current account with the salary integration. Through agreements signed with the Authorities and local institutions in Lombardy, Piedmont, Emilia Romagna, Tuscany and Veneto, the worker does not bear any charges as these are covered by the project partners. In 2015 approximately 6 million euro were disbursed and about 3.3 million were used for over 1,300 households.
Finally, the Intesa Sanpaolo Group has joined the social initiative project promoted by Adiconsum designed to prevent usury. "Prestito Adiconsum", the loan guaranteed by a fund financed by grants that the Italian State has made available through Law no. 108 of 7 March 1996 and entrusted to Banca Prossima, is for all persons and households who, despite having recovered repayment ability, because of previous negative positions do not have access to legal credit.
The verification and pre-selection of loan applicants is carried out exclusively by professional staff at the Adiconsum National Headquarters. The loan, in place since October, is a medium- term loan repaid in monthly instalments, for an amount of 2,000 to 30,000 euro, and a maximum term of 84 months.
The International Subsidiary Banks, in turn, have developed solutions to meet the needs of families.
Since 2014, Intesa Sanpaolo Bank Albania has been offering a mortgage loan for young people for first home purchase, which foresees the possibility to postpone the payment of instalments for three times, each for a maximum of six months, during the entire life of the loan, so as to deal with any work or family-related problems. Moreover, in 2015 the interest rate applied was adjusted downward and 155 loans were granted for a total of 7.5 million euro.
The “Fleximortgage young” line of Slovakian VÚB Banka offers discounts on the instalment interest rate borne by the Bank and the Slovakian Government, payment suspension options or restructuring of instalments. Approximately 272 million euro were granted in 2015. The Bank has also created a loan for small construction companies which, in partnership with municipal authorities, envisages the construction of flats for rent with support from a state housing fund set up for social housing initiatives. In 2015, the Bank granted approximately 4.5 million euro.
Already since 2013 Banca Intesa Beograd in Serbia has been making loans available with insurance against job loss or disability. The loan offers the option of delaying payment of the instalment five times during the repayment period. 54.8 million euro were granted in 2015.
In Slovenia, Banka Koper proposes, in the case of people with financial difficulties due to job loss, a debt moratorium of up to one year, with the possibility of extending the repayment period to avoid too high rates.
Finally, CIB Bank in Hungary does not collect the December instalment of personal loans to ease the economic burden on customers during the Christmas period.
As part of a specific course of action aimed at offering customers simple and concrete protection solutions, Intesa Sanpaolo offers a wide range of products.
A new "ProteggiMutuo” policy was made available by Intesa Sanpaolo Assicura for non-life insurance, and by Intesa Sanpaolo Vita for life insurance, which can be combined with real estate mortgage loans to individuals granted by the Group Banks, which, through its modular structure, protects the borrower from serious events that may hinder his ability to repay the loan, through three guarantees: Life insurance, Total permanent disability and Job-loss.
“Mi Curo dei Miei” of Intesa Sanpaolo Vita is dedicated to the protection of the family, in the event of predecease. This measure has led to a better understanding of the need to ensure coverage of the weak family member and the consequent subscription of an appropriate insurance coverage.
“Tu Dopo di noi” is an insurance product designed to protect a disabled beneficiary on the death of the insured. A lifelong product giving priority to the value of capital invested, as a result of prudential separate management, mainly in bonds. “Tu Dopo di noi” targets those with a disabled family member and wishing to protect their future by guaranteeing protected capital that continues to provide them with real, secure support.
161 new policies were taken out in 2015. Previously our portfolio contained a similar product with the same characteristics, “Alfa Dopo di Noi”, and therefore as at 31 December 2015 a total of 895 contracts were in force.