UBI_2011_9_5_00 Semestrale giugno 2011_post

Interim
Financial report
as at and for the
half year ended
30th June 2011
Translation from the Italian original
which remains the definitive version
Joint stock co-operative company
Registered office: Bergamo, Piazza Vittorio Veneto 8
Operating offices: Bergamo, Piazza Vittorio Veneto 8; Brescia, Via Cefalonia 74
Member of the Interbank Deposit Protection Fund and the National Guarantee Fund
Tax Code, VAT No. and Bergamo Company Registration No. 03053920165
ABI (Italian Banking Association) 3111.2 Register of Banks No. 5678. Register of banking groups No. 3111.2
Parent of the Unione di Banche Italiane Banking Group
Share capital as at 18th July 2011: euro 2.254.366.897,50 fully paid up
www.ubibanca.it
Contents
UBI Banca: company officers ..................................................................................................
UBI Banca Group: the main investments as at 30th June 2011 ...............................................
UBI Banca Group: branch network as at 30th June 2011........................................................
UBI Banca Group: principal figures and performance indicators.............................................
The rating .............................................................................................................................. .
MANAGEMENT REPORT ON THE CONDENSED INTERIM CONSOLIDATED
STATEMENTS AS AT AND FOR THE PERIOD ENDED 30TH JUNE 2011
-
-
-
-
-
-
-
FINANCIAL
The macroeconomic scenario .............................................................................................
Significant events in the first half of 2011..........................................................................
The 2011-2015 Business Plan of the UBI Banca Group ................................................................
The share capital increase ............................................................................................................
Human resources ..............................................................................................................
The distribution network and positioning ..........................................................................
The consolidation scope ....................................................................................................
Reclassified consolidated financial statements, reclassified income statement net
of the most significant non-recurring items and reconciliation schedules ...........................
Reclassified consolidated statement of financial position ..............................................................
Reclassified consolidated quarterly statements of financial position .............................................
Reclassified consolidated income statement ..................................................................................
Reclassified consolidated quarterly income statements .................................................................
Reclassified income statement net of the most significant non recurring items .............................
Reconciliation schedules ...............................................................................................................
Notes to the reclassified consolidated financial statements ...........................................................
The consolidated income statement ...............................................................................................
General banking business with customers: funding ...........................................................
Funding policies............................................................................................................................
Total funding ................................................................................................................................
Direct funding ...............................................................................................................................
Indirect funding and assets under management ...........................................................................
General banking business with customers: lending ...........................................................
Performance of the loan portfolio ..................................................................................................
Risk ..............................................................................................................................................
The interbank market and the liquidity situation ...............................................................
Financial assets ................................................................................................................
Exposure to sovereign debt risk ...................................................................................................
Exposure of the UBI Banca Group to some types of products .......................................................
Property, equipment and investment property and intangible assets ..................................
Non current assets/liabilities held for disposal .................................................................
Provisions for risks and charges ........................................................................................
Contingent liabilities .........................................................................................................
Equity and capital adequacy .............................................................................................
Information on share capital, the shares, dividends paid and earnings per share ...............
Information on risks and hedging policies..........................................................................
Consolidated companies: the principal figures ...................................................................
Information on the principal banks in the Group ..........................................................................
Segment reporting .............................................................................................................
Transactions with related parties.......................................................................................
Other information .............................................................................................................
Litigation.......................................................................................................................................
Inspections ...................................................................................................................................
Tax aspects ...................................................................................................................................
Subsequent events occurring after the end of the first half and the business outlook
for consolidated operations................................................................................................
1
3
4
6
7
8
12
19
19
25
28
33
39
47
47
48
49
50
51
52
54
55
65
65
66
67
72
75
75
81
85
88
93
95
104
107
108
108
109
114
118
132
136
145
146
150
150
150
151
157
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT
AND FOR THE PERIOD ENDED 30TH JUNE 2011
Condensed half year mandatory consolidated financial statements as at and
for the period ended 30th June 2011 .......................................................................................
- Consolidated statement of financial position ...................................................................................
- Consolidated income statement.......................................................................................................
- Consolidated statement of comprehensive income...........................................................................
- Statement of changes in consolidated equity ...................................................................................
- Consolidated statement of cash flows ..............................................................................................
Notes .....................................................................................................................................
- Accounting policies .........................................................................................................................
- Explanatory tables ..........................................................................................................................
160
160
161
161
162
164
165
165
174
STATEMENT OF THE CHIEF EXECUTIVE OFFICER AND OF THE SENIOR OFFICER
RESPONSIBLE FOR PREPARING THE ACCOUNTING DOCUMENTS ................................................
179
INDEPENDENT AUDITORS’ REPORT ..........................................................................................
183
REPORT ON THE PERFORMANCE OF THE PARENT, UBI BANCA SCPA, IN THE FIRST HALF OF
▪
2011
Reclassified financial statements, reclassified income statement net of the most significant
non-recurring items and reconciliation schedules ..............................................................
Reclassified statement of financial position ...................................................................................
Reclassified quarterly statements of financial position ..................................................................
Reclassified income statement ......................................................................................................
Reclassified quarterly income statements .....................................................................................
Reclassified income statement net of the most significant non-recurring items .............................
Reconciliation schedules ...............................................................................................................
Notes to the reclassified financial statements................................................................................
188
188
189
190
191
192
193
194
▪
Performance in the period .................................................................................................
195
▪
Separate condensed interim mandatory financial statements
as at and for the period ended 30th June 2011 ..................................................................
Statement of financial position......................................................................................................
Income statement .........................................................................................................................
Statement of comprehensive income .............................................................................................
Statement of changes in equity .....................................................................................................
Statement of cash flows ................................................................................................................
206
206
207
207
208
210
DE JURE AND DELEGATED POWERS OF THE CORPORATE BODIES
CONSOB - Italian securities market authority - recommendation No. 97001574 of 20th February 1997 .....
212
GLOSSARY .............................................................................................................................
216
BRANCH NETWORK OF THE UBI BANCA GROUP ........................................................................
232
CALENDAR OF CORPORATE EVENTS OF UBI BANCA FOR 2011
CONTACTS
Key
The following abbreviations are used in the tables:
- dash (-): when the item does not exist;
- not significant (n.s.): when the figure is insufficient to reach the minimum level in question or is in any case not
significant;
- not available (n.a.): when the information is not available
- a cross “X”: when no amount is to be given for the item (in compliance with Bank of Italy instructions).
All figures are given in thousands of euros, unless indicated otherwise.
2
UBI Banca: company officers
Honorary Chairman
Giuseppe Vigorelli
Supervisory Board (appointed by a Shareholders’ Meeting on 24th April 2010)
Chairman
Senior Deputy Chairman
Deputy Chairman
Deputy Chairman
Management Board (appointed by the Supervisory Board on 27th April 2010)
Chairman
Deputy Chairman
Chief Executive Officer
Corrado Faissola
Giuseppe Calvi
Alberto Folonari
Mario Mazzoleni
Battista Albertani
Giovanni Bazoli
Luigi Bellini
Mario Cattaneo
Silvia Fidanza
Enio Fontana
Carlo Garavaglia
Alfredo Gusmini
Pietro Gussalli Beretta
Giuseppe Lucchini
Italo Lucchini
Federico Manzoni
Toti S. Musumeci
Sergio Orlandi
Alessandro Pedersoli
Giorgio Perolari
Sergio Pivato
Roberto Sestini
Giuseppe Zannoni
Emilio Zanetti
Flavio Pizzini
Victor Massiah
Giampiero Auletta Armenise
Giuseppe Camadini
Mario Cera
Giorgio Frigeri
Gian Luigi Gola(*)
Guido Lupini
Andrea Moltrasio
Franco Polotti
General Management
General Manager
Deputy General Manager
Deputy General Manager
Deputy General Manager
Deputy General Manager
Graziano Caldiani
Rossella Leidi
Giovanni Lupinacci
Ettore Medda
Pierangelo Rigamonti
Senior Officer Responsible in accordance with
Art. 154 bis of the Consolidated Finance Act
Elisabetta Stegher
Independent auditors
KPMG Spa
(*) Appointed on 30th June 2010 by the Supervisory Board
3
4
5
6
UBI Banca Group:
principal figures and performance
indicators1
30.6.2011
31.12.2010
30.6.2010
STRUCTURAL INDICATORS
Net loans to customers/total assets
77,4%
78,0%
75,8%
Direct funding from customers/total liabilities
Net loans to customers/direct funding from customers
80,0%
96,8%
81,8%
95,4%
78,2%
96,9%
Equity (including profit for the period/year) / total liabilities
Assets under management/indirect funding from private customers
Leverage ratio (total assets-goodwill-other intangible assets)/(equity+non controlling interests-intangible assets)
PROFIT INDICATORS
ROE (Profit for the period/year/equity excluding profit for the period/year) annualised
9,1%
8,4%
8,3%
52,3%
17,0
54,6%
19,9
54,2%
20,2
4,3%
1,6%
1,9%
ROTE [profit for the period/year/tangib le equity (equity excluding profit, net of intangib le assets)] annualised
ROA (Profit for the period/year/total assets) annualised
7,7%
0,38%
3,2%
0,13%
3,8%
0,15%
The cost/income ratio (operating expenses/operating income)
Personnel expense/operating income
72,4%
43,3%
70,6%
41,5%
72,8%
43,4%
Net impairment losses on loans/net loans to customers (losses on net loans) annualised
0,51%
0,69%
0,64%
Net interest income/operating income
Net commission income/operating income
61,0%
34,4%
61,3%
33,9%
61,0%
35,3%
0,4%
1,0%
-0,3%
2,14%
1,91%
1,62%
45,43%
48,69%
50,23%
4,48%
3,91%
3,55%
(coverage)
31,55%
34,89%
35,39%
Net non-performing loans/equity excluding profit for the period/year
18,57%
17,95%
14,96%
8,71%
7,47%
7,86%
Net result on financial activities/operating income
RISK INDICATORS
Net non-performing loans/net loans to customers
Net impairment losses on non-performing loans/gross non-performing loans
(coverage for non-performing loans)
Net non-performing + net impaired loans/net loans to customers
Net impairment losses on non-performing and impaired loans/gross non-performing loans+impaired loans
CAPITAL RATIOS Basel 2 standard
Tier 1 ratio (tier 1 capital/total risk weighted assets)
Core tier I ratio after specific deductions to tier 1 capital
8,20%
6,95%
7,34%
Total capital ratio [(supervisory capital+tier 3/total risk weighted assets]]
Supervisory capital (in thousands of euro)
13,02%
12.467.200
11,17%
10.536.200
11,86%
10.300.489
of which: Tier one capital after the application of prudential filters and specific deductions
Risk weighted assets
INCOME STATEMENT, STATEMENT OF FINANCIAL POSITION FIGURES (in thousands of euro), STRUCTURAL
DATA (numbers)
Profit
8.337.623
95.761.304
7.047.888
94.360.909
6.831.999
86.869.263
251.710
172.121
102.074
70.030
1.706.117
105.116
3.496.061
63.501
1.723.010
(tier 1capital net o f preference shares and savings shares or privileged shares o f no n controlling interests/to tal risk weighted assets)
Normalised profit
Operating income
Operating expenses
Net loans to customers
of which: net non-performing loans
net impaired loans
Direct funding from customers
Indirect funding from customers
of which: assets under management
(1.235.254)
(2.468.564)
(1.254.908)
102.774.467
2.195.117
101.814.829
1.939.916
100.157.746
1.625.370
2.404.465
2.032.914
1.935.873
106.163.877
78.565.784
106.760.045
78.078.869
103.362.434
78.476.237
41.122.089
42.629.553
42.544.703
Total funding from customers
Equity (excluding profit for the period/year)
184.729.661
11.821.241
184.838.914
10.806.898
181.838.671
10.867.923
Total assets
132.750.897
130.558.569
132.099.415
Branches in Italy
Total personnel at the end of period/year (actual employees in service + workers on agency leasing contracts)
1.877
19.546
1.892
19.699
1.884
20.260
Average total personnel (actual employees in service + workers on agency leasing contracts) (*)
Financial advisors
18.885
750
19.384
786
19.633
848
1 The indicators have been calculated using the reclassified figures contained in the section “Reclassified consolidated financial statements, reclassified
income statement net of the most significant non-recurring items and reconciliation schedules” in the Interim Consolidated Management Report as at and
for the period ended 30th June 2011.
Information on the share is given in the section “Information on share capital, the shares, dividends paid and earnings per share” in that same report.
(*) Part time employees have been calculated within total average personnel numbers according to convention on a 50% basis.
7
The rating
The tables below summarise the ratings assigned to the Group by the international agencies,
Standard & Poor’s, Moody’s and Fitch Ratings.
On 6th May 2011, Standard & Poor’s reported that it had confirmed its existing ratings with a
negative outlook.
On 23rd June 2011, following the review it had announced due to a possible downgrade of
Italian sovereign debt, Moody’s reported that it had put the long term debt and deposit ratings
of 16 Italian banks on review for possible downgrade because they were considered more
sensitive to a possible lowering of the credit rating for Italy. Moody’s did not include UBI Banca
among the banks subject to review just mentioned, but limited its action to changing the
outlook on its long term debt and deposit rating for UBI Banca, as it did for another 12 Italian
banks, from stable to negative to reflect the potential long term impact of a possible change in
the context for government support.
STANDARD & POOR’S
Short-term Issuer Credit Rating (i)
A-1
Long-term Issuer Credit Rating (i)
A
Stand Alone Credit Profile (SACP) (ii)
Outlook
a
Negative
RATINGS ON ISSUES
Senior unsecured debt
A
Subordinated debt (Lower Tier 2)
A-
Preference shares
BBB
French Certificats de Dépôt Programme
A-1
MOODY'S
Long-term debt and deposit rating (I)
Short-term debt and deposit rating (II)
A1
Prime-1
Bank Financial Strength Rating (BFSR) (III)
C
Baseline Credit Assessment (BCA) (IV)
A3
Outlook (deposit ratings)
Negative
Outlook (Bank Financial Strength Rating)
Negative
RATINGS ON ISSUES
Senior unsecured LT
A1
Lower Tier 2 subordinated
Preference shares
(former BPB-CV and Banca Lombarda)
A2
Euro Commercial Paper Programme
Covered Bond
Baa3
Prime-1
Aaa
(i) The issuer credit rating reflects the agency’s opinion of the
intrinsic creditworthiness of the bank combined with an
assessment of the potential for future support that the bank might
receive in the event of difficulty (from government or from the
group to which it belongs).
Short term: ability to repay short term debt with a maturity of less
than one year (A-1: best rating – C: worst rating)
Long term: ability to pay interest and principal on debt with a
maturity of longer than one year (AAA: best rating – D: worst
rating)
(ii) The SACP is a rating of the intrinsic creditworthiness of the bank
in the absence of external support (from government or from the
group to which it belongs).
(I) The ability to repay long-term debt (maturing after one year) in
local currency. By using the JDA method (Joint Default Analysis),
this rating associates the financial strength rating (BFSR – Bank
Financial Strength Rating) with the probability of intervention if
needed by external support (shareholders, the group to which it
belongs or official institutions).
(Aaa: prime quality – Baa3:
medium quality)
(II) The ability to repay debt in local currency maturing in the short
term (due in less than one year).
(Prime -1: highest quality – not prime: speculative grade)
(III) This rating does not relate to the ability to repay debt but
considers the bank’s intrinsic financial strength (by analysing
factors such as its geographical market presence, the
diversification of its activities, the financial basics) in the absence
of external support. (A: best rating – E: worst rating)
(IV) The Baseline Credit Assessment represents the equivalent of the
Bank Financial Strength Rating on the traditional scale of the long
term rating.
8
(1) The ability to repay debt in the short term (maturity less than 13
months). (F1: best rating – C: worst rating)
FITCH RATINGS
Short-term Issuer Default Rating (1)
F1
Long-term Issuer Default Rating (2)
A
Bank Individual Rating (3)
B/C
Viability Rating (3)
a
Support Rating (4)
2
Support Rating Floor (5)
Outlook for Long-term Issuer Default Rating
BBB
Stable
RATINGS ON ISSUES
Senior unsecured debt
A
Lower Tier 2 subordinated
A-
Preference shares
Euro Commercial Paper Programme
Covered Bond
BBB+
F1
AAA
(2) The ability to meet financial commitments in the long term,
independently of the maturity of individual obligations. This
rating is an indicator of the probability that an issuer will default.
(AAA: best rating – D: worst rating)
(3) An assessment of a bank’s intrinsic strength in the event that it
cannot rely on forms of external support. (A: best rating – E:
worst rating). This rating has been incorporated in the new
Viability Rating from 20th July 2011, structured on the traditional
long term rating scale, which will replace the Bank Individual
Rating.
(4) A rating of the possibility of concrete and timely external support
(from the state or large institutional investors) if the bank finds
itself in difficulty. (1: best rating – 5: worst rating)
(5) This rating gives additional information, closely linked to the
Support Rating, in that for each level of the Support Rating it
identifies the minimum level which the Issuer Default Rating
could reach if negative events were to occur.
9
10
MANAGEMENT REPORT
ON THE CONDENSED
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
AS AT AND FOR THE PERIOD
ENDED 30TH JUNE 2011
The macroeconomic scenario
The international scenario – already affected by a slowdown in the recovery of industrialised
countries, by high levels of unemployment and by excess liquidity in emerging economies –
has deteriorated rapidly since May, as pressures on sovereign debts have intensified.
Almost a year after its rescue, Greece has once again fallen into crisis as delays in tax
modifications compromised the disbursement of a tranche of aid needed to repay maturing
securities1. At the end of June, the concrete risk of imminent debt restructuring persuaded the
Greek parliament to approve a new medium term fiscal austerity plan and the European
Union and the International Monetary Fund to prepare a second package of aid to meet Greek
financing requirements until the end of 2014. On 21st July the 17 countries in the euro area
reached an agreement containing both measures specific to Greece and provisions to support
member states in difficulty.
With regard to Greece, a very broad and detailed package of assistance measures was approved
amounting to almost 160 billion euro, which involved the following:
• new government support amounting to approximately 109 billion euro;
• assistance on a voluntary basis from private sector institutional investors (banks and insurance
companies) amounting to 37 billion euro;
• further assistance of 12,6 billion euro by means of a debt buy-back.
At the same time eurozone leaders proposed a reform of the European Financial Stability Facility (EFSF)
designed to broaden its powers and allow it to:
• purchase bonds on the secondary market, subject to prior ECB approval, directly buying securities
already issued by a country in crisis;
• provide advance aid to governments in difficulty with “precautionary loans”;
• the ability to intervene to recapitalise banks in crisis countries;
• extend the maturity of loans from the present 7,5 years to a minimum of 15 years;
• the reduction of the interest rate to 3,5% from around 4,5% at present.
The attention of financial operators to economic and political adjustment processes in
peripheral countries kept the entire euro area under pressure 2 . After Greece and Ireland,
Portugal was also obliged to apply to the EU and the IMF for financial assistance totalling 78
billion euro last May, and to subscribe to a demanding adjustment programme to bring its
debt to GDP ratio down from 9,1% in 2010 to 3% in 2013.
The turbulence gradually widened to include other European countries more incisively than in
the past, including Italy. This related, amongst other things, to the decision of the major rating
agencies to place Italy under review3.
Consequently the spreads between yields on Italian government securities and German bunds
widened: in July the spread for ten-year BTPs reached record levels and exceeded 400 basis
points at the beginning of August. Subsequently, following, amongst other things, purchases
made by the ECB, the spread fell below 300 basis points.
Pressures have also been fuelled since the middle of July by difficulties encountered by the
United States in reaching an agreement to raise its debt ceiling to 2.400 billion dollars and
thereby enable the government to honour its commitments. These difficulties constitute some
of the reasons that persuaded Standard & Poor’s to downgrade its USA public debt rating for
the first time in history from AAA to AA+.
1 On 9th May the international rating agency, Standard & Poor’s, made a first cut to Greece’s rating from BB- to B, followed on 20th
May by Fitch (from BB+ to B+). On the following 13th June S&P further downgraded the Greek Republic from B to CCC and
intervened for a third time on 27th July (from CCC to CC). On 13th July Fitch reduced its rating of Greece from B+ to CCC, while on
25th July Moody’s also downgraded it from Caa1 to AC.
2 After S&P lowered its rating of Irish sovereign debt from A2 to BBB+ on 1st April, Moody’s downgraded its rating of Portugal twice
from A3 to Baa1 on 5th April and from Baa1 to Ba2 on the following 5th July. On 13th July that same agency cut its Irish rating from
Baa3 to Ba1.
3 On 20th May S&P changed the outlook for its rating of Italy from stable to negative in relation to risks concerning the reduction of
government debt connected with weak economic growth. This was followed by a similar decision for four Italian banks. For basically
the same reasons, on 17th June Moody’s placed its rating of Italy under review for possible downgrading and followed up with the
same decision for 16 Italian banks.
12
Commodities prices, which were raised by geopolitical events occurring since the beginning of
year (tensions in North Africa and in the Middle East culminating in the civil war in Libya) fell
between May and June, following the worsening of the Greek situation, the impact of exchange
rates which penalised demand and uncertainty over the economic recovery in a context of
restrictive economic policy orientations. In detail, oil prices were initially affected by fears of a
possible spread of popular uprisings to other major producers, with a consequent reduction in
the supply. After it passed the 125 dollars per barrel mark in April, the price of Brent oil fell
slightly in the months that followed, reflecting concerns over the fragility of the recovery4.
Inflationary pressures re-emerged during the first half of 2011 which were particularly strong
in emerging economies, in the presence of growing constraints on capacity and a greater
commodity component in their respective consumer baskets.
Consumer price trends remained one of the main determinants of the different orientation of
monetary policies at world level. They remained extremely expansionary 5 in advanced
economies despite the two rises in the reference rate made by the ECB, while central banks in
emerging areas continued to maintain a restrictive orientation6.
The euro strengthened on foreign
M ajor exchange rates and oil prices (Brent) at the end of period
exchange markets during the first
half of 2011 against almost all the
Jun-11
Mar-11
Dec-10
% change Sep-10
Jun-10
A
B
C
A/C
D
E
major currencies. In detail, at the
end of June the European currency
Euro/Dollar
1,4165
1,3377
8,4%
1,3630
1,2234
1,4504
Euro/Yen
117,77
108,60
7,5%
113,75
108,15
had recovered by 8,4% against the
116,79
9,2757
8,8148
6,4%
9,1192
8,2972
Euro/Yuan
9,3747
dollar and by 7,5% against the yen
Euro/Franc CH
1,3009
1,2486
-2,4%
1,3387
1,3177
1,2185
which, after a sharp slowdown
0,8833
0,8572
5,4%
0,8675
0,8183
Euro/Sterling
0,9037
following the violent earthquake in
Dollar/Yen
83,15
81,15
-0,8%
83,45
88,39
80,52
Dollar/Yuan
6,5483
6,5900
-1,9%
6,6905
6,7815
6,4635
March, strengthened again in the
Futures - Brent (in $)
117,36
94,75
18,7%
82,31
75,01
112,48
second quarter, especially against
the United States currency (3,2%). Source: Thomson Financial Reuters
As pressures increased on European sovereign debts, the euro depreciated against all the
major currencies since the beginning of July and against the Swiss franc in particular, a
traditional safe haven currency, while the slow appreciation of the yuan against the dollar
continued (1,9% in the first six months of the year).
While it continued to grow, the world economy, showed signs of slowing in the second
quarter, affected on the one hand by the impact of the earthquake in Japan and by the
negative effect of high commodity costs on the other. The largest contribution to growth
continues to come from emerging countries and from Asian countries in particular. In
advanced economies, on the other hand, the abundant liquidity provided by accommodative
monetary policies does not yet seem to have produced the desired results in terms of new
investments, while domestic demand remains weak, both in the public sector, held down by
4 The trend also benefited from the announcement in June by the International Energy Agency – given the failure of OPEC to increase
supply – of the release onto the market of 60 million barrels from strategic reserves designed to compensate for the temporary loss of
Libyan oil from the market.
5 Attentive to containing inflation below 2%, the ECB increased the rate on main refinancing operations twice by 25 basis points in
April and July to bring it up from 1% – a level at which it had stood for almost two years – to 1,50%. On the other hand non
conventional operations were continued until October at least, consisting of both main refinancing operations and one and three
month fixed rate tender procedures with full allotment of all bids. Faced with a further worsening of the financial crisis, the ECB
recommenced the purchase of government securities in August and at the same time it launched extraordinary injections of sixmonth liquidity.
The Federal Reserve, however, in consideration of the current slowdown in the United States economy, declared its intention to
maintain official rates at exceptionally low levels (0-0,25%) for a prolonged period of time (until 2013). The programme of treasury
security purchases announced in November 2010 came to an end at the end of June, while the reinvestment of the proceeds from
redemptions of government agency bonds and mortgage-backed securities held in portfolio in treasury securities is continuing.
The Bank of Japan also left its reference rate unchanged (0-0,1%), while it provided two new credit lines in April and June of 1.000
billion yen (one year) and 500 billion euro yen (two year) respectively, in order to provide liquidity to financial institutions in areas hit
by the earthquake and also to encourage investments in equities by those already admitted as counterparties in the programme to
purchase securities that is still in progress. It then increased the amount of that programme by 10 thousand billion yen to 50
thousand billion yen in August.
6 Since the beginning of the year, the People’s Bank of China has raised compulsory reserve ratio requirements six times and they now
stand at a record level of 21,5%. It raised the rate on bank loans three times, to now stand at 6,56% (+25 b.p. in February, April and
July).
The Indian central bank on the other hand raised the reference rate five times to now stand at 8%: +25 b.p. in January, March and
June; +50 b.p. in May and July. The reference rate in Brazil, now at 12,25%, was raised four times (+50 b.p, in January and
February; +25 b.p. in April and June), while the central bank of Russia raised rates twice (+25 b.p. in February and May) from 7,75%
to 8,25%.
13
budgetary constraints, and in the private sector, partly due to difficult conditions on labour
markets.
Actual and forecast data: industrialised countries
Gross domestic product
Percentages
Consumer prices
2010
2011(1)
2012(1)
2010(2)
Euro Area
3,0
4,0
1,8
2,6
0,5
1,6
2,7
1,6
1,8
1,6
-0,7
1,6
3,6
0,2
2,7
3,4
0,1
2,7
9,6
5,0
10,1
9,2
4,6
9,9
Italy
1,3
1,0
1,3
1,6
3,0
2,8
8,4
Germany
France
3,6
1,5
2,6
1,8
1,9
2,0
1,2
1,7
2,4
2,3
2,4
2,4
7,1
9,8
United States
Japan
Public Sector Deficit
(% of GDP)
Unemployment
Jun-11(3) 2011(1) (2)
2010(2)
Jun-11(3) 2011(1) (2)
Reference interest
rates
2010
2011(1)
2012(1)
Dec-10
Aug-11
9,0
4,8
9,8
10,8
7,6
6,0
9,7
8,5
4,3
7,6
7,6
3,5
0-0,25
0-0,10
1,00
0-0,25
0-0,10
1.50
8,0
8,2
4,6
4,0
3,2
-
-
6,1
9,7
6,0
9,4
3,3
7,0
2,0
5,8
1,2
5,3
-
-
1.3
-2,2
-1,8
1,4
3,3
3,2
12,0
12,2
13,3
9,1
5,9
4,5
-
Ireland
-1,0
0,6
1,9
-1,6
1,2
1,5
13,7
14,2
15,0
32,4
10,5
8,8
-
-
Greece
-4,5
-3,5
1,1
4,7
3,1
3,5
12,6
16,6
16,0
10,5
9,5
9,3
-
-
Spain
United Kingdom
-0,1
0,8
1,5
2,0
3,0
3,0
20,1
21,0
20,9
9,2
6,3
5,3
1,4
1,7
2,1
3,3
4,2
4,1
7,8
7,7
7,5
10,4
8,4
6,7
Portugal
,
-
0,50
-
0,50
,
(1) Forecasts
(2) Average annual rate
(3) The latest available information has been used, w here data had not been published as at 30th June 2011.
Source: Prometeia and official statistics
The United States economy continues to show signs of slowing: the annualised change in
GDP in the second quarter was +1,3% (+0,4% in the previous period), the aggregate result of
stagnant consumption, an improvement in fixed investments – while those in the residential
sector continue to be weak – and a positive contribution from the balance of payments,
although largely due to a slowdown in imports. The balance of trade worsened further between
January and June increasing from 250,2 billion dollars to 288,3 billion dollars (+15,3%),
attributable mainly to trade with Opec countries and with China, partly the result of a weaker
dollar.
The trend for consumption continues to be affected by the difficult labour market situation,
with progressive growth in the unemployment rate since April after the temporary fall observed
in the first quarter (9,2% in June, 8,8% in March, 9,4% in December).
On the prices front, inflation rose rapidly from 1,5% in December to 3,6% in May and June
and the core index (net of the energy and foodstuffs components) doubled in six months to
1,6% (0,8% in December).
Despite measures designed to cool the economy, growth in Chinese GDP continued with an
increase of 9,6% year-on-year in the first half of 2011 (+9,7% in the first three months and
+9,5% in the second quarter) driven again by high domestic demand: fixed investments
continued to grow at an extremely high pace (+25,6%) with particularly high peaks in the
manufacturing
sector
(+55%
for
electrical machinery and equipment); Actual and forecast data: the principal emerging countries
+16,8% for retail sales of consumer
Reference interest
Gross domestic product
Consumer prices
rates
goods; +14,3% for industrial production
Perc entages
(1)
(1)
(2)
(3)
with peaks of close to +20% in some
2010
Dec-10
Aug-11
2012
2010
Jun-11
2011
manufacturing sectors. After a small
10,3
8,2
3,3
5,81
China
9,0
6,4
6,56
deficit in the first quarter of the year
12,0
6,25
10,1
8,4
India
7,9
8,9
8,00
the balance of trade also returned to
7,6
3,6
5,0
10,75
Brazil
4,1
6,7
12,25
surplus, contributing to a further
4,0
4,5
6,9
7,75
Russia
4,8
9,4
8,25
increase in currency reserves, which
,
,
(1)
Forecasts
Source:
Prometeia,
IMF
and
official
statistics
had reached almost 3.200 billion
(2) Average annual rate
dollars
in
June,
including (3) The latest available information has been used, w here data had not been published as at 30th
approximately 1.200 billion dollars held June 2011.
in United States treasury securities in May. With regard to prices, inflation increased to 6,4%
in June, driven by large increases in foodstuffs (+14,4%), suggesting that new restrictive action
may be taken by the monetary authorities. A new peak of 6,5% was then reached in July.
Affected by the consequences of the disastrous earthquake in March, Japan officially slipped
back into recession in the first quarter of 2011 with a quarterly fall in GDP (-0,9% after -0,6%
in the fourth quarter of 2010). The contraction continued in the following three months (-0,3%)
– due primarily to a fall in exports which was affected by the reduction in output in previous
months – even if the Japanese economy nevertheless showed signs of recovery. After a record
collapse in March (-15,5%), the industrial production index has recorded month-on-month
14
increases since April (+3,8% in June after +6,2% in May, with +37,4% for durable consumer
goods), in line with the improvement in the climate of confidence for large manufacturing
companies contained in the Tankan report.
Again in June, on the labour market, the unemployment rate at 4,6% had continued to
decrease compared to the end of 2010 (4,9%), even if it had risen slightly compared to the low
reached in May (4,5%).
Inflation – which became positive again in the second quarter (0,3% in April and May) after
four consecutive months of no change – stood at 0,2% in June.
The economy of the euro area slowed significantly between April and June (+0,2% compared
to the previous quarter; +1,7% year-on-year), reflecting a sharp slowdown by Germany. It was
in fact the German economy which had driven European growth in the first three months of
the year, to give a quarterly increase in GDP of +0,8%, mainly the result of a recovery in
investments and of a marginal positive contribution from net exports, while consumption
continued to be weak. The figure for the second quarter was in line with economic indicators
which had signalled growth at a slower pace. After continuous increases in the first five
months of the year, the €-coin indicator calculated by the Bank of Italy – which provides an
estimate of quarterly growth in GDP for the area, adjusted to iron out short term fluctuations –
fell both in June and July, reflecting a fall in business confidence and downwards pressures
from equity markets and from a widening of long and short term interest rate spreads. Surveys
of the industrial sector performed by the European Commission had come to similar
conclusions and it was confirmed by the progressive slowdown in industrial production which
recorded negative monthly growth in June of -0,7% (+2,9% on an annual basis from +4,4% in
May).
Once again no signs of improvement came from the labour market, with the unemployment
rate steady at 9,9% in June for the fourth consecutive month and a particularly critical
situation in Spain (21%).
Inflation, as measured by the harmonised consumer price index, seems to have stabilised in
the second quarter (2,7% in May and in June) after a gradual increase brought it to a peak in
April, up to 2,8% from 2,2% at the end of 2010. Similarly the core index, net of foodstuffs,
energy products, alcohol and tobacco, also remained practically unchanged in the second
quarter (1,6% in June), but had risen compared to December (1%).
According to preliminary estimates, Italian GDP increased by 0,3% between April and June
compared to the first quarter (a year-on-year change of +0,8%), to record a slight acceleration
in the economy compared to +0,1% in the previous period, affected by a decrease in
inventories, which was offset by a modest increase in consumption and net foreign demand,
while there was no change in investments.
The trend for gross domestic product in the second quarter reflected performance by industrial
production which returned to growth year-on-year, reacting with a two month delay to the
increase in European demand. However, the trend seems to have come to a halt since May
with the industrial production index (seasonally adjusted) up by only 0,2% year-on-year in
June, in line with the deterioration in the climate of confidence for manufacturing companies.
The unemployment rate remained basically stable for the whole of the first half, falling to 8%
in June (8,2% in December), the result, amongst other things, of a fall in participation in the
labour market. The figure for Italy was lower than the average for Europe (9,9%), due to the
use of state income benefits, although to a lesser extent than in the past: a total of 511.1
million hours of state lay-off and redundancy benefits were authorised in the first half of 2011,
a decrease of 19,3% compared to the same period in 2010, mainly for the ordinary component.
The figures for July also confirmed this trend.
Italian inflation has increased much more rapidly than the European average since February:
the harmonised consumer price index rose progressively from 1,9% in January to 3% in May
and June (2,1% in December), compared to European growth from 2,3% to 2,7% (2,2% in
December). Initial estimates for July, however, show a sharp decrease to 2,1%, attributable in
part to a new method of calculating indices for seasonal products adopted in January 2011.
The Italian balance of trade deficit had reached 22,2 billion euro at the end of the first half, a
large increase compared to 14,2 billion euro recorded in the first six months of 2010 due to
increased deficits in the energy and intermediate products sectors.
15
As concerns public finances, while the objectives set in May in the Economy and Finance
Document7 remain in place, the government, in accordance with the requests of international
bodies, announced its intention in July to pass a mini-budget to make savings of 60 billion
euro, in compliance with commitments made under the stability programme (consisting of a
decree law containing urgent measures to stabilise finances and a parliamentary bill for tax
and welfare reform). The increased difficulties for Italian government securities at the
beginning of August and pressures from European authorities led the government to bring
forward its deadline for balancing its budget to 2013.
United states: yield curves (*)
Europe: yield curves (*)
5,00
4,50
4,50
4,00
4,00
3,50
3,50
3,00
3,00
2,50
2,50
2,00
2,00
1,50
1,00
30th June 2010
1,50
31st December 2010
1,00
30th June 2010
31st December 2010
30th June 2011
0,50
0,00
1-6m1y 2y
30th June 2011
0,50
5y
10y
30y
0,00
1-6m1y 2y 5y
10y
30y
(*) Interbank rates up to 1 year. German bonds yields above 1 year.
The United States yield curve shifted slightly downwards compared to December 2010,
incorporating the effects of weak economic growth and the consequent expectation that
monetary policies would remain accommodative in the short term.
On the other hand, the European yield curve shifted generally upwards compared to December
as a consequence of the first rise in the reference rate made in April by the ECB and also of
the risk attached to a continuation of the sovereign debt crisis.
The principal share indices in local currency
After
the
fluctuating
Jun-11
Mar-11
Dec-10
% change
Sep-10
Jun-10
performance recorded in the
A
B
C
A/C
D
E
first four months of the year,
Ftse Mib (Milan)
21.727
20.173
0,1%
20.505
19.312
20.187
partly the result of tensions
FTSE Italia All Share (Milan)
22.454
20.936
-0,1%
21.098
19.869
20.913
in the Middle East and in
Xetra Dax (Frankfurt)
7.041
6.914
6,7%
6.229
5.966
7.376
Cac 40 (Paris)
3.989
3.805
4,7%
3.715
3.443
3.982
North Africa and of the
Ftse 100 (London)
5.909
5.900
0,8%
5.549
4.917
5.946
earthquake in Japan, the
S&P 500 (New York)
1.326
1.258
5,0%
1.141
1.031
1.321
main equity markets started
DJ Industrial (New York)
12.320
11.578
7,2%
10.788
9.774
12.414
Nasdaq Composite (New York)
2.781
2.653
4,6%
2.369
2.109
2.774
to slide in early May. A
Nikkei 225 (Tokyo)
9.708
10.229
-3,5%
9.369
9.192
9.868
temporary recovery at the
Topix (Tokyo)
863
899
-5,0%
830
828
854
end of June allowed indices,
MSCI emerging markets
1.171
1.151
-0,4%
1.076
918
1.146
except for those of Japan and
Italy, to end the first half of 2011 above levels at the beginning of the year, but new
generalised falls were subsequently recorded on all the main European markets and above all
on the Italian market. The fall in share prices in the second quarter was caused mainly by the
increase in the risk premium requested by investors. This affected the banking sector most
and European banks in particular because they were more exposed to the performance of the
sovereign debt market. Fears over Greek debt subsequently spread firstly to the government
securities of other peripheral countries and then in the second half of July to Spanish and
Italian equities.
Capital inflows into equities have also reduced in emerging countries since May and prices
weakened, mainly as a result of the change in the composition of international portfolios into
lower risk securities and due to expectations of further increases in reference interest rates.
7 For 2011 the document estimated a fall to 3,9% in the deficit to GDP ratio (4,6% in 2010), while the ratio of public debt to GDP was
forecast to rise further to 120% (119% in 2010). The document confirms the target for net debt of 2,7% for 2012 – in line with
European Council recommendation made as part of the excess deficit procedure started against Italy in December 2009 – and the
achievement of a break-even target for 2014.
16
As concerns assets under management, continuing difficulties clearly emerge from the
Assogestioni (national association of asset management companies) figures8 for the first half of
2011 which show net negative inflows of approximately 10 billion euro for the mutual funds
sector. three billion of which for the month of June alone. The opposing trends for funds
registered abroad (+4,7 billion euro), which now account for almost 60% of the total, and
Italian registered funds (-14,7 billion euro), still penalised until 30th June by unfavourable tax
treatment, continued.
From the viewpoint of the type of fund, outflows mainly regarded monetary funds (-6,2 billion
euro) and bond funds (-4 billion euro) and to a lesser extent hedge funds (-1,3 billion euro),
while only flexible products (+1,1 billion euro) and balanced funds (+0,4 billion euro) recorded
inflows and equity funds remained unchanged.
At the end of the first half of 2011 assets had therefore fallen to 441,4 billion euro from 460
billion euro in December, with a change in composition into flexible funds (up from 14,6% to
15,9%), compared to a fall in the percentage of monetary funds (from 13,5% to 12,2%) while
other types of fund remained substantially unchanged.
On 1st July 2011 the tax reform introduced by Decree Law No. 225/2010, termed the “thousand
extensions”, entered into force. This brought the taxation on Italian investment funds into line with that of
foreign funds and tax is now levied on profits “realised” and that is on gains or losses recorded at the time
of sale, rather than on the “mark-to-market” value.
The Italian banking sector recorded a slowdown in the first half both for lending and funding
– the latter, however, characterised by a reduction in the total compared to December – while
the quality of credit deteriorated further.
On the basis of data published by the Bank of Italy9, at the end of June the rate of change in
direct funding (deposits of residents and bonds) recorded a new low of +1% (+3,3% in
December and +5,6% in June 2010), the aggregate result of a recovery in the bond component
(+4,4% compared to -1,6% in December) and a decrease in other types of funding (-1,1%
compared to +6,6% in December), despite the still positive trend, although slowing, for
repurchase agreements (+6,6%).
After peaking in February (+6,8%), the growth rate in June for lending to the private sector
stood at 4,9% (+4,3% in December and +2,5% in June 2010). In terms of borrowers, Bank of
Italy data shows a realignment of lending to businesses (+5,3%; +1,6% in December) and that
to households (+5,9%; +7,7% in December). The latter recorded a slowdown which affected
both residential mortgages (+5,2% in June 2011 compared to +8,3% in December) and the
various forms of consumer credit (+1,2% compared to +1,9%).
As concerns loans to businesses on the other hand, short term loans (up to one year) recorded
a recovery, which resulted in a year-on-year increase of 9,1% at the end of the first half of
2011.
From the viewpoint of risk, in June non-performing loans to the private sector gross of
impairment losses 10 had reached 97,4 billion euro (90,8 billion euro at the end of January
2011), including 32,8 billion euro to households and 63,9 billion euro to businesses. The ratio
of gross non-performing private sector loans to private sector loans was 5,67% (4,61% in
December), while the ratio of gross non-performing private sector loans to capital and reserves
was 25,64% (22,20% at the end of 2010).
On the other hand, net non-performing loans totalled 52 billion euro, an increase of
approximately 3,2 billion euro compared to 48,8 billion euro in January, with a ratio of net
non-performing loans to total loans of 2,69% (2,43% in December) and a ratio of net nonperforming loans to capital and reserves of 13,69% (13,31% in December).
Again in June, securities issued by residents in Italy held in the portfolios of Italian banks had
decreased slightly year-on-year (-1%): the increase in long term government securities (CCTs
and BTPs, +16,3%) basically offset the decrease in short term government securities (BOTs
8 Trend Mensile sui Fondi Aperti – July 2011.
9 Bank of Italy, supplement to the statistics bulletin Moneta e Banche, August 2011.
10 From January 2011, the figures relating to gross and net non-performing loans are not statistically comparable with past figures
following corporate ownership operations by some banking groups. As a consequence, the annual rates of change for both items are
no longer significant.
17
and CTZs, -33%) and “other certificates” (-2,8%). Within the latter, bank bonds increased by
2,4% and accounted for approximately 60% of the total. The ratio of securities to private sector
loans was 32,7% (32,9% at the end of 2010).
At the end of the period, the average interest rate on bank funding from customers calculated
by the Italian Banking Association 11 (which includes the yield on deposits, bonds and
repurchase agreements in euro for households and non financial companies) had risen to
1,77% (1,50% in December). The rise in the average weighted interest rate on lending to
households and non financial companies recorded in the period was of the same magnitude
(3,89% from 3,62% in December).
11 ABI Monthly Outlook, Economia e Mercati Finanziari-Creditizi, July 2011.
18
Significant events in the first half of 2011
The 2011-2015 Business Plan of the UBI Banca Group
On 13th May 2011, the Management Board and the Supervisory Board of UBI Banca approved
the Group Business Plan containing strategic guidelines and operating, financial and capital
targets for the period 2011-2013/2015.
In the current market context – in which banking products and services are easily replicated
and subject to rigorous regulatory constraints, within a sector which is structurally mature –
the UBI Banca Group intends to distinguish itself in terms of quality, which it will maximise
by means of the following:
▪ optimisation of its capital structure;
▪ strengthening its structural balance;
▪ innovation in its distribution model;
▪ redefinition of the roles of the product companies in terms of:
- specialisation and complementarity with the network bank products and services;
- a change of focus by external networks on the acquisition of new customers to be
directed to the network banks to increase customer loyalty and cross-selling;
- optimisation of their capital and financial structure;
▪ maintenance of the current level of expense although with significant investments;
▪ consolidation of the low risk profile;
▪ strengthening of the already firm dividend policy.
On the basis of those premises, the Group intends
▪ in terms of financial objectives:
- to return swiftly to profit levels consistent with the cost of capital:
ROTE1 2013: 10,0%; 2015: 14,9%;
- to maintain high capital strength:
common equity ratio (primary quality capital according to Basel 3 regulations) 2013:
8,2%; 2015: 8,9%;
- to strengthen structural balance:
loans/direct funding2 2013: 100%, 2015: 96%
a net interbank position tending towards zero.
▪ to improve customer satisfaction and the sense of Group identity among employees and to
heighten the perception of UBI Banca as a high quality bank among all its stakeholders, as
well as on the local markets in which has its roots.
Greater details of the Business Plan, in terms of figures in particular, are given in the
presentation of the “2011-2013/2015 Business Plan” published on the UBI Banca website,
which may be consulted and also in the quarterly financial report as at and for the period ended
31st March 2011.
Action to implement the Business Plan
Following its approval, intense organisational work commenced to structure, co-ordinate and
monitor the 16 business projects with a significant impact on the achievement of the
objectives set in the plan. A manager and a work plan of the activities to be performed were
selected for each project along with procedures for periodic monitoring, including the
measurement of impacts on assets and liabilities and operating variables. The projects are
grouped within three focus areas: business, governance and support, as well as product
companies and special projects.
1 Excluding the effects of the purchase price allocation.
2 Net of repurchase agreements with the Cassa di Compensazione e Garanzia (CCG - a central counterparty clearing house).
19
BUSINESS
This focus area includes the main projects, and also the largest number, formulated to
support the Business Plan. They involve action to reorganise business activities (the
distribution model), changes to service models and also plans to boost business results.
Details of activities commenced and/or at an advanced stage of implementation are given with
the descriptions of the strategic initiatives.
The plan involves growth in operating income to be achieved in part by enhancement of the
Group’s distribution capacity and its strong customer base by means of the following:
▪ a new “hour-glass” shaped distribution model, which combines the best features of the
conventional “hierarchical” and “portfolio” models to create synergies from interaction
between the different markets and different supply chains. It is generated by the coordination performed by new local departments;
▪ market segmentation which will allow groups of customers currently not served as well as
possible to be reached with high value added services;
▪ a “mass market machine” with the introduction within retail branches of a joint
management pool of account managers and staff for mass market customers, with the
consequent identification of retail account managers to specialise in growth;
▪ a “pricing excellence project” to improve the structured management of pricing and to close
gaps found by studies with the sector nationally.
In addition to the above initiatives, the following are designed to support the acquisition and
retention of customers:
▪ acceleration of the integrated multi-channel project, with an increase in numbers of QuiUBI
Internet Banking users;
▪ the development of high value added customised products and services such as more
flexible modular current accounts to meet customer requirements, in place of bundled
accounts and also a broad range of advisory services.
The plan also includes specific organisational and technological initiatives, concerning
problem loan management:
▪ pro-active management of non-performing loans with:
- the implementation of a new technologically advanced IT platform to manage the life
cycle of deteriorated loans;
- a revision of the organisational model to refine operating processes, differentiated by
exposure and type of loan;
- segmentation and division of positions into portfolios assigned to account managers who
are allocated specific credit recovery budgets;
▪ maximisation of problem loan quality through a new management by objectives approach
which allocates a budget for the management of problem loan portfolios and electronic
“problem loan sheets” to monitor the objectives set at the branch or corporate centre level of
each network bank;
▪ extension to the main product companies of the credit monitoring model designed to
structurally reduce loan impairment rates.
At the same time, the Business Plan also includes a significant effort to streamline and/or
automate internal operational and management processes and sales processes in order to
shorten customer response times and improve transparency and clarity in contracts and
regulations. This is also strongly focused on reducing costs.
The above initiatives will be accompanied and facilitated by intense personnel training, with
the delivery of 100.000 person days planned each year.
The “hour glass” model
The revision of the Group’s distribution model is designed to strengthen the Group’s “local
banking” identity by redefining departmental and network bank units and streamlining
commercial, credit and loan approval processes at the same time.
The “hour glass” model introduces “Local Departments”, the main points of reference for “local
banks” as key units in the commercial process chain for all customer segments and markets
(branches, CBUs and PBUs), with a twofold organisational interconnection: cross market
20
(retail, private banking, corporate) and cross process (commercial and credit). The new
departments will be responsible for the most significant commercial, credit and operational
risk aspects, developing relationships with local customers and with major clients and opinion
leaders (“local social capital”).
The presence of “micro-areas” within local areas will also continue and be strengthened with
the introduction of “Head Branches” and “Group Branches”.
The principal changes to the credit process regard the creation of Local Approval
Committees (LACs), which approve credit and commercial decisions by joint signature. They
are designed to create synergies between both processes and to “spread a culture of credit”,
both at the grant stage and at the stage of monitoring and management of the quality of the
portfolio. This will involve a revision of Credit Departments with the introduction of specialist
local units physically close to the Local Departments in order to immediately facilitate cross
process activity and optimise the functioning of loan disbursement processes.
When the model is fully operational, Local Departments will also have access to view all
business transactions in their local areas and will give compulsory opinions on Credit
Department decisions.
The first implementation action commenced on 1st August 2011 (Stage 1), with the
introduction of the new “hour glass” model, applied on a flexible basis to take account of local
differences, customer portfolios and the characteristics of individual network banks. The
introduction involved the following:
- the revision of the Commercial Area units of the network banks;
- the start-up of Local Department units with a consequent revision of the distribution
structure (with no impact on customers because it involved no massive changes in
customer portfolios);
- changes in the organisation and scope of the Local Loan Approval Centres consistent with
the new Local Departments;
- the revision of commercial processes (approval of interest rates and conditions) and the
relative support procedures and tools consistent with the new organisational units.
The completion of the changes (Stage 2), with the revision of network bank credit units and
the new loan approval process along with the introduction of local committees is scheduled for
January 2012.
The “simplicity” objective
This project, which had already been commenced when the Business Plan was approved and
was incorporated within it because of its importance and the new areas for its development,
consists of three lines of action:
a) the simplification and streamlining of internal processes and operating processes.
Twenty four initiatives were agreed and planned (including ten completed at the end of July
2011 and five added with work already in progress) concerning the “easy sale of banking
products (simplification of sales procedures, integration of forms, contract automation, the
introduction of checklists for documentation to be acquired), the “easy sale of investment
and loan financial products” (the revision of processes for the sale of bonds, the automation
of sicav orders, an electronic diary of financial movements, the automation/integration of
forms for loans to small businesses and private individuals) and “Easy Work” (a new UBI
Desk work station, circular editing of customer directories, optimisation of portfolio
receipts, integration of remote banking movements in a series of procedures, automation of
utility statements, optimisation of external business with the Italian post office, cheque
book supplies, automated receipt of non life insurance policies, new design of financial
profile questionnaires);
b) the use of biometric signatures (a technology which allows a recognisable and naturally
produced “digital” signature to be inserted in documents, by using a PC equipped with a
touch screen or a graphics tablet).
The implementation stage has commenced with the purchase of the first batch of tablets
and the definition of operational support processes for paying in and withdrawal
operations. A pilot phase is scheduled in the next few months on retail customers in
branches with high volumes of business;
c) streamlining of internal regulations, by means of a new dedicated intranet site, “The
Regulations Portal”.
21
Activities to “rationalise” regulations (on a mass basis or when regulation booklets were
issued) has been virtually completed (regulations have been reduced from approximately
100.000 documents existing in November 2010 to a little more than 4.600 circulars). The
new portal is now online and accessible by all the network banks and product companies,
with a simple and functional interface that can be customised on the basis of user
requirements.
GOVERNANCE AND SUPPORT
This focus area includes initiatives which will have an impact on the branch network of the
Group and on the personnel numbers in various organisational units, a project for the
enhancement, motivation and management of human resources and all those initiatives
designed to contain costs structurally.
The branches programme involves a continuous series of changes to the distribution network
with 66 new branches opening, rationalisations (closures and/or transformations) and the
geographical specialisations – designed to eliminate geographical overlap – performed in the
period 2009-2011.
It is expected to maintain branch numbers more or less unchanged in the period 2012-2015
with 50 branches opening in growth areas and rationalisation action for 60 branches (40
closures and 20 transformations) in established local markets. Additionally, 170 operations
are scheduled to “enhance” selected branches designed to improve their images and visibility
and increase their potential.
As concerns personnel changes, the objective is a further improvement in operating efficiency
to be achieved, amongst other things, by retraining personnel for commercial activities. The
Business Plan allows for a net reduction of approximately 1.000 in Group personnel numbers,
of which 800 in addition to those already planned for 2011. Total personnel numbers will
therefore fall from approximately 19.700 in 2010 to approximately 18.700 in 2015.
Furthermore, the net reduction includes over 1.000 new appointments during the plan period
to support generation turnover and allow personnel management action needed to support
career growth.
Thirty percent of action to control spending will be focused on the “other administrative
expenses” of the product companies, by centralising supplier negotiations at UBI.S and
optimisation of the IT platform, which with significant investments will provide constant
annual savings when fully operational. Furthermore the simplification projects in progress will
also result in the streamlining and optimisation of costs.
PRODUCT COMPANIES AND SPECIAL PROJECTS
This focus area includes initiatives to develop IT platforms (at UBI.S) and to change the focus
of some product companies and it includes the project concerning the new guidelines for
Group’s internet bank.
UBI.S: development of the IT platform
The objective of the project is to maximise the contribution made by technology to support
growth in Group revenues and to contain costs. It is to be achieved on the one hand through
the evolution of software applications employed in business processes and on the other
through selective upgrades of the software system, it being considered that the IT system does
not require structural overhaul.
In detail, technological development will be directed towards transformation of the basic
infrastructure of the IT system, innovation and simplification, multi-channel distribution,
improvements in customer relationship management, work stations, process digitalisation and
the industrialisation of governance systems.
Structural IT costs will be reduced at the same time by means of extraordinary actions
performed mainly through the redesign of software components on non mainframe platforms
which will provide constant savings when phased in.
The level of investments programmed over the time period of the plan (approximately 80
million euro) will allow a potential increase in production capacity (around 26%), with an
22
improvement in the administration of high strategic value software applications, the creation
of niche areas designed to support the development of software in the more innovative
business areas, with a reduction in time-to-delivery, and strengthening of IT governance to
ensure greater control of suppliers and to support the industrialisation of the “IT factory”.
IW Bank
This bank will pursue a multi-channel policy for evolved affluent customers, on the one hand
by increasing income on the banking segment while at the same time managing and
maintaining its excellence on the trading segment and on the other hand by combining growth
in size and repositioning on value added services with the streamlining of processes and
internal systems.
A new advisory service will be launched in this respect with local offices opened and a network
of independent advisors (professionally qualified) will work in close co-ordination by computer
with the team at headquarters. New business process re-engineering will also bring internal
processes into line with international best practices, by implementing a new customer service
model with more marked differentiation based on the wealth generated by customers and by
redesigning internal processes, with possible outsourcing of non core activities in order to
maximise productivity and eliminate inefficiencies.
All this activity will allow new synergies with the Group to be created with IW Bank becoming
a channel for direct funding in Italy and other European countries. In Italy this will occur
without the risk of cannibalisation on the network banks, with investments in targeted
marketing and the launch of cross selling initiatives to increase existing customer loyalty.
Abroad the internet bank operates under the freedom to provide services rule (preliminary
studies are underway on Germany and France), with the launch of deposit accounts, promoted
and supported by investments in targeted marketing campaigns in the media in co-operation
with specialist agencies in different countries.
A summary is given below of action taken which involved some product companies in the first
half of the year and which, while not included in business plan forecasts, are strongly
complementary to the objectives of the plan itself and to the strategic policies of the individual
companies themselves.
Redefinition of the scope of operations and the organisational structure of
B@NCA 24-7
On 27th April 2011 – when it disposed of part of its investment in BY YOU Spa (see the
subsequent section “The consolidation scope”) – UBI Banca and BY YOU signed a new five year
commercial agreement with an option for a subsequent five year extension. This involved,
amongst other things, a new operational model centred on the direct granting of loans by the
network banks and consequently the final end to the commercial arrangements between BY
YOU and B@nca 24-7, leaving the latter responsible exclusively for the management of the
portfolio of existing mortgages.
In implementation of the above agreement, on 11th May 2011 the new arrangements came into
operation for mortgages brokered by the BY YOU network of agents with the transfer of
mortgage disbursement activities and overall customer relationship management to the
network banks. This was performed not only with a view to stabilising lending – to reduce
costs associated with possible early repayments – but also to a commercial promotion through
an offer of a targeted range of products and services at competitive terms and conditions
(concerning current accounts and bundled services).
This resulted in an increase at the same time in administrative activities for the processing of
mortgages performed centrally by UBI Sistemi e Servizi, which led to an expansion of the
“medium-term” sector of the services company with the creation of specific operational units at
Varese and in Milan.
23
Redefinition of the the organisational structure of UBI Leasing
In line with the information reported in the 2010 Annual Report, the reorganisation of the
Group’s leasing company was performed during the first half of 2011, designed to improve the
efficiency and effectiveness of its risk management processes in consideration of their negative
performance.
In detail, the measures put in place, which did not have repercussions on employment except
in terms of mobility and retraining, were as follows:
- the creation of a Risk Control Unit on the staff of the General Management to which all risk
management, anti money laundering and claim activities were transferred, while first level
credit controls were strengthened at the same time;
- the strengthening and concentration of company units for the management of operational
risk with regard to both disbursement and credit monitoring processes;
- the streamlining of the network of agents and stronger connections with Group banks, by
expanding support units for the marketing of UBI Leasing products;
- a general optimisation of company units accompanied by the transfer to Brescia and Jesi of
activities previously performed by the Bergamo and Treviso centres which are no longer
operational.
Disposal of UBI Pramerica SGR operations consisting of alternative fund
managements
On 15th June 2011, UBI Pramerica signed a strategic agreement with Tages Capital SGR – an
independent asset management company – in the alternative fund management sector.
The agreement involves the contribution to Tages by UBI Pramerica of its alternative fund
management operations consisting of three hedge funds (Capitalgest Alternative Conservative,
Capitalgest Alternative Dynamic and Capitalgest Alternative Equity Hedge) with assets under
management as at 31st December 2010 totalling approximately 290 million euro.
The operations disposed of will include the relative personnel, assets and liabilities and the
service and outsourcing contracts.
On conclusion of the transaction – scheduled for the second half of 2011 – UBI Pramerica will
acquire a 10% stake in the share capital of Tages Capital and an agreement will also be signed
for the distribution on the UBI Banca distribution network over a number of years of all the
alternative funds (hedge and UCITS) managed by Tages.
The agreement reached will allow UBI Pramerica to focus strategically on its mutual
investment funds and customer portfolio managements which already represent the core
business of the company today. However, as a result of the partnership with Tages, the UBI
Group will be able to continue to offer its customers a broad range of hedge funds and to
benefit from Tages high level of international specialisation.
24
The share capital increase
UBI Banca performed a large increase in its share capital of one billion euro in order to
anticipate changes underway in the regulatory context and, thanks to the traditional solidity
which has always distinguished the Group, also to grasp opportunities for endogenous growth
which may arise during the course of the Business Plan. A summary is given below of the
stages of the operation announced on 28th March 2011, when the annual results were
presented.
13th May 2011
The Management Board, after receiving authorisation from the Supervisory Board, passed a
resolution to implement the authorisation conferred on it by the Shareholders’ Meeting of 30th
April 2011 to increase the share capital, in more than one issuance and for payment in cash,
by a maximum amount of one billion euro inclusive of the share premium with option rights
for shareholders and holders of the convertible bonds “UBI 2009/2013 convertibile con facoltà
di rimborso in azioni”. It also provided for the presentation of a prospectus to the Consob
(Italian securities market authority), publication of which was subject to prior authorisation by
that body.
1st June 2011
The governing bodies of the bank decided to issue a maximum number of 262.580.944
ordinary shares with a par value of 2,50 euro each, of the same class as those outstanding
and with normal dividend entitlement, to be offered as an option to shareholders and to the
holders of the convertible bonds “Ubi 2009/2013 convertibile con facoltà di rimborso in azioni”,
at a price of 3,808 euro per share, inclusive of a share premium of 1,308 euro, for a maximum
nominal amount of 656.452.360 euro and for a total maximum amount (inclusive of the share
premium) of 999.908.234,75 euro.
The shares were offered at a ratio of eight new shares for every 21 shares owned and/or every
21 “Ubi 2009/2013 convertibile con facoltà di rimborso in azioni” convertible bonds owned. The
subscription price was calculated by applying a discount of approximately 22,43% on the
theoretical ex-rights price of UBI Banca shares, calculated on the basis of the official stock
market price on 1st June 2011.
Following the issue of authorisation from the Consob (memorandum No. 11050124), the
prospectus was published in accordance with the law and made available to the public at the
registered offices of the Bank, on the corporate website (www.ubibanca.it) and on the Borsa
Italiana website (www.borsaitaliana.it).
It was filed with the Consob on 3rd June 2011.
5th June 2011
In implementation of Art. 7 of the regulations for the “Warrant azioni ordinarie UBI Banca
2009/2011” warrants an adjustment to the exercise price was announced following the
increase in the share capital. The price for the exercise of the warrants therefore fell from
12,30 euro per share to 11,919 euro per share3.
6th-24th June 2011 (rights offer period)
6th-17th June 2011 (option rights are traded)
During the rights offer period, 636.120.051 rights were exercised and therefore a total of
242.331.448 shares were subscribed (92,3% of the total shares offered) for a total amount of
922.798.153,98 euro.
Also the Banca del Monte di Lombardia Foundation and the Cassa Risparmio di Cuneo
Foundation received authorisation from the Ministry of the Economy and participated in the
share capital increase by exercising all the option rights due to them.
At the end of the period, 53.154.927 rights for the subscription of 20.249.496 shares (7,7% of
the shares offered) had not been exercised for a total amount of 77.110.080,77 euro.
3 Art. 7, letter a) of the Regulations stated that if between the issue date of the warrants and 7th July 2011, a resolution were passed
and implemented to increase the share capital by payment in cash through the issue of new shares, the exercise price must be
reduced by an amount calculated according to the provisions contained in those Regulations.
25
4th-7th July 2011 (offer period of option rights not exercised)
In compliance with paragraph three of article 2441 of the Italian Civil Code, the unexercised
rights were offered on the stock exchange. In the first five days of the offer (4th July 2011), all
the 53.154.927 unexercised options rights were sold through Mediobanca at an auction price
of 0,04 euro, with proceeds for UBI Banca of 2.126.197,08 euro, recognised within the share
premium reserve.
11th July 2011
At the end of the period for the subscription of unexercised rights, 5.706.984 shares (2,17% of
the total newly issued shares offered) were subscribed, for a total of 21.732.195,07 euro.
Therefore 14.542.512 shares (5,54% of the shares offered) remained that had not been
subscribed for a total amount of 55.377.885,70 euro, which on the following 18th July were
made available to the underwriting syndicate4, in accordance with the underwriting agreement
signed on 1st June 2011. The increase in the share capital of 999.908.234,75 euro, which was
fully subscribed for a total of 262.580.944 new shares was therefore completed on that date.
Share capital - number of shares: changes occurring during 2011
Date
Number of
shares issued
Reason
Number of shares
31.12.2010
3.3.2011
3.6.2011
24.6.2011
24.6.2011
268 Bond conversion February 2011
96 Bond conversion May 2011
242.331.448 Exercise of rights for share capital increase
5.7.2011
7.7.2011
11.7.2011
18.7.2011
240 Bond conversion June 2011
Share premium reserve
639.145.902
1.597.864.755,0
7.100.378.060
639.146.170
1.597.865.425,0
7.100.380.807
639.146.266
1.597.865.665,0
7.100.381.791
881.477.714
2.203.694.285,0
7.417.351.325
881.477.714
2.203.694.285,0
7.401.115.119
881.477.954
2.203.694.885,0
7.401.117.579
881.497.263
2.203.743.157,5
7.403.425.648
887.204.247
2.218.010.617,5
7.410.890.383
901.746.759
2.254.366.897,5
7.429.911.989
Recognition of the expenses incurred for the increase in
the share capital net of tax
30.6.2011
5.7.2011
Share capital
7.401.115.119
7.403.243.776
Sale of unexercised rights (*)
19.309 Conversion of w arrants June 2011
5.706.984 Exercise of unexercised rights
14.542.512 Subscription by the syndicate
bonds: "UBI 2009/2013 Convertibile con facoltà di rimborso in azioni" - w arrants: "Warrant azioni ordinarie UBI Banca 2009/2011"
(*) The sale of 53.154.927 unexercised rights at 0,04 euro each gave rise to proceeds of 2.126.197,08 euro.
Other changes affecting the share capital of UBI Banca
Conversion of the bond “UBI 2009/2013 convertibile con facoltà di rimborso in azioni”5
A total of 604 shares were issued against the presentation of bonds for a nominal amount of
7.701 euro in the period from 10th January 2011 (date from which the right was exercisable)
until the date of this report for the exercise of conversion rights held by bondholders in
accordance with article 5 of the regulations.
In detail, 240 new ordinary shares were issued on 5th July (in relation to bonds for a nominal
amount of 3.060 euro presented for conversion in June). On 3rd June 96 shares were issued
against requests received in May (in relation to bonds for a nominal amount of 1.224 euro),
while 268 shares were issued on 3rd March (for a nominal amount of 3.417 euro in relation to
applications presented in February).
4 The share issue was underwritten by a syndicate of banks co-ordinated and led by Mediobanca – Banca di Credito Finanziario S.p.A.
and Centrobanca – Banca di Credito Finanziario e Mobiliare S.p.A., as joint global co-ordinators, and by Morgan Stanley as co-global
co-ordinator. Mediobanca – Banca di Credito Finanziario Spa, Morgan Stanley, Barclays Capital, BNP Paribas, Citi, Deutsche Bank
AG London Branch and ING as joint bookrunners, together with the co-bookrunners, agreed to subscribe – under the usual terms
and conditions for this type of operation – those shares not taken up at end of the offer period on the stock exchange. Crédit Agricole
Corporate & Investment Bank, EQUITA S.I.M. Spa, HSBC, Intermonte, Natixis, Nomura, Société Générale Corporate & Investment
Banking and The Royal Bank of Scotland participated in the consortium as co-bookrunners.
5 UBI Banca did not take advantage of its right to settlement in cash under article 7 of the regulations for the bond, nor did it
announce its intention to call the bonds under article 12 of the regulations.
26
Exercise of “Warrant azioni ordinarie UBI Banca 2009/2011” warrants
On 30th June 2011 the exercise period came to an end for the warrants which gave the right to
subscribe newly issued ordinary shares of UBI Banca (with a par value of 2,50 euro each) at a
conversion ratio of one share for every 20 warrants at an adjusted subscription price of 11,919
euro per share. In compliance with article 4 of the regulations for the warrants, following the
exercise of 386.180 Warrants, 19.309 shares with normal dividend entitlement and the same
characteristics as the oustanding, were made available on 7th July to those with rights to
subscribe them.
All rights attaching to the Warrants which had not been exercised by the expiry date of 30th
June 2011 expired and had no validity to all effects and purposes.
Repurchase of treasury shares
In implementation of a shareholders’ resolution of 30th April 2011, which involved the
purchase of treasury shares to be assigned to the senior management of the Group as part of
the Group incentive schemes, on 12th and 13th July UBI Banca proceeded to repurchase
1.200.000 treasury shares on the market (corresponding to the maximum number
purchasable) at an average price of 3,6419 euro per share for a total amount of 4,37 million
euro, less than the total maximum amount set in the shareholders’ authorisation (5,5 million
euro).
The purchase transactions were performed on the regulated market in compliance with the
limits set in the shareholders’ resolution, by the provisions of the law, applicable regulations,
including EC Directive 2273/2003 and by admissible market practices.
UBI Banca currently holds 1.200.000 treasury shares (0,13% of the share capital).
27
Human resources
The composition of Group personnel and changes in the first
half of 2011
Group personnel
Employees actually in service
Number
Banca Popolare di Bergamo Spa
Banco di Brescia Spa
Banca Carime Spa
Banca Popolare Commercio e Industria Spa
Banca Popolare di Ancona Spa
Banca Regionale Europea Spa
UBI Banca Scpa
Banco di San Giorgio Spa
Banca di Valle Camonica Spa
Centrobanca Spa
IW Bank Spa*
B@nca 24-7 Spa
UBI Banca Private Investment Spa
Banque de Dépôts et de Gestion Sa**
UBI Banca International Sa
TOTAL FOR BANKS
UBI Sistemi e Servizi SCpA
UBI Leasing Spa
UBI Factor Spa
UBI Pramerica SGR Spa***
Prestitalia Spa
UBI Insurance Broker Srl
UBI Fiduciaria Spa
Silf Spa
BPB Immobiliare Srl****
InvestNet Italia Srl
UBI Gestioni Fiduciarie Sim Spa
Gestioni Lombarda (Suisse) Sa**
Centrobanca Sviluppo Impresa SGR Spa
Coralis Rent Srl
UBI Trustee Sa
UBI Management Company Sa
S.B.I.M. Spa
Twice Sim Spa*
Capitalgest Alternative Investments SGR Spa***
UBI Pramerica Alternative Investments SGR Spa***
TOTAL
Workers on personnel leasing contracts
TOTAL PERSONNEL
On secondment outside the Group
- out
- in
TOTAL WORKFORCE
30.6.2011
A
31.12.2010
B
Changes
A-B
Employees on the payroll
30.6.2010
C
30.6.2011
D
31.12.2010
E
Changes
D-E
3.730
2.600
2.197
1.738
1.709
1.514
1.241
416
349
319
283
220
163
92
95
3.761
2.632
2.221
1.756
1.715
1.552
1.367
417
346
325
291
227
167
116
98
-31
-32
-24
-18
-6
-38
-126
-1
3
-6
-8
-7
-4
-24
-3
3.800
2.692
2.253
1.904
1.726
1.575
1.350
425
348
342
292
240
172
129
96
3.798
2.603
2.333
1.928
1.791
1.585
2.173
418
346
315
297
170
155
89
90
3.808
2.625
2.363
1.952
1.795
1.585
2.171
418
346
316
312
172
163
112
92
-10
-22
-30
-24
-4
2
-1
-15
-2
-8
-23
-2
16.666
16.991
-325
17.344
18.091
18.230
-139
2.027
249
153
143
101
40
23
13
52
7
8
6
6
4
3
1
-
1.860
242
153
142
105
40
23
14
9
7
7
6
6
4
2
1
-
-
-
1.877
233
151
129
107
39
21
18
53
9
9
7
6
6
4
2
1
39
10
2
672
246
146
120
96
36
17
25
47
8
4
2
4
3
-
665
250
145
122
102
36
17
25
4
8
4
2
4
2
-
-
167
7
1
-4
-1
43
1
1
-
7
-4
1
-2
-6
43
1
-
19.502
19.612
-110
20.067
19.517
19.616
-99
44
87
-43
300
44
87
-43
19.546
19.699
-153
20.367
24
17
7
14
19.570
19.716
-146
20.381
-
-
9
13
-4
19.570
19.716
-146
* Twice Sim was merged into IW Bank on 1st November 2010.
** Gestioni Lombarda (Switzerland) was merged into Banque de Dépôts et de Gestion on 7th December 2010.
*** Capitalgest Alternative Investments SGR and UBI Pramerica Alternative Investments SGR were merged into UBI Pramerica SGR with effect from 1st July
2010.
**** At the end of the period, the personnel of BPB Immobiliare also included personnel appointed with seasonal contracts that were not banking industry
contracts: 43 as at 30th June 2011 and 44 as at 30th June 2010.
The table gives details for each company of the actual distribution of ordinary employees (workers on permanent and temporary contracts and on
apprenticeship contracts) within the Group as at 30th June 2011, adjusted to take account of secondments to and from other entities within or
external to the Group (column A), compared with the position at the end of 2010 (column B) and the position in June 2010 (column C), which was
restated on a consistent basis. Column D, on the other hand, gives details of the number of employees on the payroll as at 30th June 2011 compared
to the position at the end of 2010 (column E).
Compared to the Interim Consolidated Financial Report as at and for the period ended 30th June 2010 (20.260 personnel) which was published, total
personnel as at 30th June 2010 have been restated to include the 107 employees acquired in September 2010.
28
At the end of the first half of 2011 the total personnel of the UBI Banca Group numbered
19.546 compared to 19.699 in December 2010, a decrease during the period of -153. This
trend is attributable partly to less use of flexible contracts, but above all to the effects of
personnel turnover with recruitment and persons leaving and to the remaining persons leaving
on redundancy schemes for employees.
With regard to the redundancy scheme still in progress – implemented on the basis of the trade union
agreement of 14th August 2007 – this resulted in 37 persons leaving in the first half of 2011, which, added
to the 900 that had already left since 31st December 2010, brought the total number of personnel leaving to
937. This scheme will end in the second half of 2011 with 23 employees leaving (postponed in relation to
measures introduced by Decree Law No. 78/2010 converted into Law No. 122/2010).
The synergies mainly regarded the network banks (-193 consisting of 147 employees and 46
on agency leasing contracts), as a result of a reduction in turnover and less use of flexible
contracts.
The remaining entities consisting of the other banks and Group companies, however, recorded
an increase in numbers of 40, in relation to an increase in the BPB Immobiliare workforce due
to temporary summer requirements in tourist and hotel facilities (+43). Net of these seasonal
changes, the other banks and Group companies remained more or less stable (-3), although
this was the aggregate result of different trends in individual companies in relation to their
specific organisational and market contexts.
A significant change occurred at UBI Sistemi e Servizi, which increased its effective workforce
by 167 in the first six months of the year, following the centralisation of contact centre
activities (performed by UBI Banca until 31st December 2010) and the expansion of units to
support mortgage disbursement (in relation to the commercial agreement reached with BY
YOU, which involved the transfer of new mortgage loans to the network banks).
The table gives details of changes in the type of employee contract, with a total decrease in
numbers in the period of 991, the result of
Employees on the payroll
306 personnel leaving – 37 due to use of
the “solidarity fund”, four for retirement
Number
30.6.2011
31.12.2010
Change
(one on incentive schemes) and 91 for end
of contract – and 207 new appointments,
Total employees
19.517
19.616
-99
of which:permanent
19.337
19.420
-83
as follows:
on temporary contracts
161
171
-10
+75 permanent;
apprentices (*)
19
25
-6
+132 on temporary contracts (some relating
to BPB Immobiliare).
(*) Contract regulated by Legislative Decree No. 276/2003 (Biagi Law) for young people
between the ages of 18 and 29, by which they acquire a qualification through training
at work which provides them with specific occupational skills. The duration varies
from a minimum of 18 months to a maximum of 48 months.
The average age of Group employees as at
30th June 2011 was 43 years and ten months compared to 43 years and five months at the
end of 2010, while the average length of service was 17 years and two months compared to 16
years and nine months in December.
The percentage of part time employees was 7,7% (7,3% in December 2010). Female personnel
accounted for 36,85% of the total, compared to 36,7% at the end of the year.
Composition of personnel in Group Banks by rank
Number
Senior managers
Middle managers 3rd and 4th level
30.6.2011
%
31.12.2010
%
408
2,2%
412
2,3%
3.206
17,7%
3.209
17,6%
Middle managers 1st and 2nd level
3.849
21,3%
3.877
21,3%
3rd Professional Area (office staff)
10.399
57,5%
10.492
57,5%
1st and 2nd Professional Area (other personnel)
TOTAL FOR BANKS
229
1,3%
240
1,3%
18.091
100,0%
18.230
100,0%
The figure for 31st December 2010 is different from that reported in the annual report because it takes account of
the five employees from Gestioni Lombarda (Sw itzerland) merged into Banque de Dépôts et de Gestion.
1 In terms of effective personnel, the reduction in employees was greater in the first half of 2011 (-110) due to the combined effect of
increased secondments outside the Group (+7), mainly to UBI Assicurazioni, and less use of personnel from outside the Group (-4).
29
Trade union relations
Work on trade union relations was intense in the first half of 2011 in relation to agreements
signed at both Group and individual company level and also to the start of procedures
concerning the new Group Business Plan.
A memorandum of understanding was signed in February concerning the transfer of new
mortgages originated by BY YOU, previously managed by B@nca 24-7, to the network banks,
while a memorandum concerning the tax relief on productivity for 2011 was signed in April.
At individual company level an agreement was signed in March regarding the rationalisation of
Banca Popolare di Ancona’s branch network, a project which did not involve job losses.
An agreement was signed on the reorganisation of UBI Leasing in April. This initiative, which
did not give rise to any reductions in personnel, was designed primarily to improve the
efficiency and effectiveness of risk management processes and to better identify centres of
responsibility with regard to the activities performed by individual units.
A trade union procedure was commenced in June for the rationalisation of B@nca 24-7
operations in local centres and the centralisation of some activities in the Tax and
Administration Area of UBI Banca. The relative agreement was signed on 25th July. The
operation involved the adoption of limited geographical and occupational mobility measures for
the workers concerned.
Finally, again in June, a procedure was commenced concerning the 2011-2015 Group
Business Plan. With the agreement signed on 28th July 2011, the parties established that the
projects would be commenced and implemented gradually and they started the organisational
implementation of the new distribution model (the “hour glass” model) in the network banks
from 1st August. They also extended the duration of the procedure until 5th October 2011 for
discussions on the remaining issues, with meetings resuming on 12th September.
Training
Training activity was also intense in the first six months of the year, designed for the
completion and/or introduction of strategic projects destined to improve specific skills and to
enhance
roles,
with
Training by subject area in the first half of 2011
particular
reference
to
business management and
Total
Remote
governance roles.
Classroom
Job experienceperson/days
%
training
Subject area
of training
The
most
significant
activities,
already
Finance
3.631
230
141
4.002
8,6%
commenced
in
2010
(see
Credit
6.210
2.323
8.533
18,4%
the specific section of the
Managerial-Behavioural
3.979
3.979
8,6%
Regulatory
3.513
8.748
12.261
26,4%
“consolidated management
Other subjects
2.220
437
2.657
5,7%
report” in the 2010 Annual
Internal instruction
1.185
1.185
2,6%
Report),
included
the
100,0%
TOTAL
34.102
9.241
3.034
46.377
following:
the completion of the training workshop “ValoRe in Rete” for existing branch managers
designed to strengthen “virtuous behaviours” (commercial, credit, organisational and
human resource management”) required to improve performance and relations with
customers and local communities. The project involves a follow-up in the second half of the
year to review and give more detailed examination of issues connected with human
resource management and internal branch organisation;
Insurance
Commercial
9.905
3.459
263
-
133
30
10.168
3.592
21,9%
7,8%
the project “Excellence in Corporate Banking”, a highly specialist two year programme
designed to provide all the Corporate Account Managers in the Group with a high level of
specific expertise, which will be completed by the end of the current year;
a compulsory, role qualifying, training programme for potential new Branch Managers. The
examination sessions organised in the first half led to the qualification of 67 new potential
Branch Managers (a further 80 employees will be examined in the second half of the year).
In addition to ordinary programmes and the usual compulsory ISVAP (insurance authority)
training and refresher courses on sensitive regulations, the following projects were launched:
“Valore al Centro”: similarly to the “ValoRe in Rete” project for branch managers, this
course is to improve the capacities and skills of managers of central units in terms of a
culture of service to the distribution network and an orientation towards the internal
customer;
CSR – corporate social responsibility: an initiative targeted at all personnel to promote a
culture and the principles and content of CSR and to encourage knowledge and the
dissemination of Group values (ethics code) and the adoption of responsible actions by
individuals;
anti-money laundering: to improve knowledge on the part of all personnel on up-to-date
procedures for managing suspect operations, appropriate verification of customers and
record-keeping obligations;
with regard to credit: the training initiatives “internal rating systems and the credit
process”, for small business and corporate segment supervisors and account managers and
“credit elements and the management of arrears” for mass market account managers;
in the field of finance: the projects: “PCF UBI Advanced”, to improve the financial planning
capabilities of Affluent Market account managers, and “Corporate Finance”, designed to
strengthen the effectiveness of private bankers in their ability to take advantage of
opportunities for synergies in the “bank-customer businessman-business” relationships.
During the first half a specific new managerial training programme was launched for senior
management and roles of major responsibility, centred on the subject of human resource
management designed to further improve management skills in terms of proactive behaviour,
motivation and effective personnel management. Approximately 130 senior managers of the
Group were again offered the opportunity, already given in 2009 and 2010, to participate in
the Ambrosetti Permanent Update Programme, which involves meetings at a high level for the
exchange of information and discussion on economic, financial, social and managerial
subjects.
Finally, work was performed to design the contents of training courses scheduled to start in
the second half of 2011 in implementation of the 2011-2015 Business Plan. The following
courses have been organised:
- occupational retraining for personnel to operate in future in the mass market segment, to
commence from the third quarter of 2011 (the new “Mass Market Team” project);
- training programme for new “developers” (to be implemented in 2012);
- improvement of and education on customer satisfaction;
- extension of the “ValoRe in Rete” method to roles and specialists operating in the small
business and affluent market segments.
A total of 46.000 person/days of training (including classroom, job experience and remote
training) were delivered in the first half of 2011 in the 16 banks and companies within the
Group training perimeter, representing approximately 50% of the entire training programme
planned for 2011.
Internal communication
Various communications initiatives were completed in the first half of 2011 designed to inform
employees of all the main projects and corporate guidelines by means of a more effective and
rapid circulation of information achieved through the combined use of conventional tools,
31
such as the Group house organ, and innovative multimedia communication (the multi-media
magazine for the shareholders meeting, UBI Click, UBIPod).
Project activities currently being completed include the new Group portal due to be launched
in the second half of 2011.
On 7th and 8th April the two annual conventions were held at the Lingotto Congress Centre in
Turin of the retired personnel associations of Banca Popolare di Bergamo and Banca Popolare
Commercio e Industria. A total of over 500 persons attended the two meetings. The presidents
of the two associations, the general managers of the two network banks and the general
manager of the Parent attended as speakers.
Finally, the group convention was held on 30th May at the MiCo (Milan Congresses) centre –
located at the former Milan trade fair. Over 3.000 colleagues from bank and Group companies
met for a day of listening and dialogue dedicated to the illustration of the new 2011-2015
Business Plan. Participants included the chairmen and members of the Board of Directors of
the network banks and product companies.
Management policies and the welfare system
No changes occurred during the six month period with respect to the information reported in
the 2010 Annual Report which may be consulted.
32
The distribution network and market
positioning
The branch network of the Group
As at 30th June 2011, the UBI Banca Group had 1.886 branches, unchanged at the date of
this report, compared to 1.901 at the end of 2010.
The branch network of the UBI Banca Group in Italy and abroad
30.6.2011
number o f branches
UBI Banca Scpa
31.12.2010
Change
2
2
-
Banca Popolare di Bergamo Spa (1)
Banco di Brescia Spa
359
364
365
362
-6
2
Banca Popolare Commercio e Industria Spa (2)
234
234
-
Banca Regionale Europea Spa (3)
Banca Popolare di Ancona Spa
229
240
229
248
-8
Banca Carime Spa
294
294
-
Banca di Valle Camonica Spa
66
64
2
Banco di San Giorgio Spa
UBI Banca Private Investment Spa
57
26
57
31
-5
Centrobanca Spa
6
6
-
B@nca 24-7 Spa
1
1
-
IW Bank Spa
Banque de Dépôts et de Gestion Sa - Switzerland
2
3
2
3
-
UBI Banca International Sa - Luxembourg
3
3
-
TOTAL (1)
1.886
1.901
-15
Total Branches in Italy (1)
1.877
1.892
-15
Financial advisors
ATMs
750
2.455
786
2.470
-36
-15
POS TERMINALS
61.407
61.220
187
(1)
(2)
(3)
The figure as at 31st December 2010 included a temporary mini-branch for the launch of the
prepaid card Enjoy.
The figures do not include units dedicated exclusively to loan secured by pledge (9 as at 30th
June 2011 and as at 31st December 2010) operating under the Banca Popolare Commercio e
Industria brand.
The figures include three foreign branches.
The changes that occurred compared to December mainly reflect further reorganisation of
geographical market coverage, performed with effect from 18th April, with the objective of
improving the efficiency of the network banks in their business with customers.
These actions, which formed part of the rationalisation process that accompanied and followed
the “branch switching” operation of January 2010, involved Banca Popolare di Bergamo,
Banca Regionale Europea, Banca Popolare di Ancona and UBI Banca Private Investment and
can be summarised as follows:
16 branches and 12 mini-branches closed due to geographical overlap;
13 branches transformed into mini-branches and one mini-branch into a branch.
At the same time the Group has not abandoned endogenous growth, opening 12 new branches
and transforming six units formerly operated as “treasury” branches into mini-branches.
As already reported in the 2010 Annual Report, during the first half of 2011 the UBI Banca
Group also introduced a more highly evolved distribution structure which, although to
differing degrees of implementation, affected 552 units (including 391 “grouped” branches and
161 “head” branches) of four network banks (Banco di Brescia, Banca Carime, Banca di Valle
Camonica and Banca Regionale Europea), with the introduction of the new types of “head
branches” and “grouped branches”.
33
The first stage of the implementation of the new “hour glass” distribution model, provided for
under the 2011-2015 Business Plan, commenced on 1st August. This model, described in the
previous section “Significant events in the first half of 2011”, involves, amongst other things,
the reorganisation of management and distribution units with the introduction of Local
Departments as the main oversight departments of the bank on local markets.
Action taken on the branch network of the Group in Italy and abroad until 30th June 2011
Transformation
of treasury
mini-branches branches into
mini-branches
Opening of:
branches
Closures of:
Transformation of Transformation of
branches into mini- mini-branches into
mini-branches
branches
branches
branches
Banca Popolare di Bergamo Spa
1
-
-
3
4
2
1
Banco di Brescia Spa
-
2
-
-
-
-
-
Banca Regionale Europea Spa
3
2
-
2
3
1
-
Banca Popolare di Ancona Spa
1
1
4
6
8
9
-
Banca Carime Spa
1
-
-
-
1
-
-
Banca di Valle Camonica Spa
-
-
2
-
-
-
-
Banco di San Giorgio Spa
1
-
-
-
1
1
-
UBI Banca Private Investment Spa
-
-
-
5
-
-
-
TOTAL
7
5
6
16
17
13
1
A summary is given below of the changes that occurred in 2011 and until the date of this
report, which affected the Group presence in Italy:
•
BANCA POPOLARE DI BERGAMO closed a mini-branch in March, temporarily opened in Viale
Vittorio Emanuele II in Bergamo for the commercial launch of the prepaid card Enjoy, and
opened one new branch at Casatenovo (Lecco) in May, while it closed six branches in April1.
It closed down a mini-branch in Viale Vittorio Emanuele II in Bergamo on 1st July located in
the national insurance offices and opened a new mini-branch in Cagliari in August;
•
BANCO DI BRESCIA opened two mini-branches in March in Brescia in Via Volturno and at 86
Via Orzinuovi;
•
BANCA REGIONALE EUROPEA opened new branches between February and March in Ovada
(Alessandria) and in Turin, in Corso Regina Margherita and also two new mini-branches in
Casale Monferrato and Tortona in the public health centre premises, while it closed two
mini-branches again in Casale Monferrato in Via Hugues and in Rivoli (Turin) in Piazza
Martiri della Libertà. On the other hand it closed three units in April2, while in June it
opened a new branch in Chieri (Turin);
•
BANCA POPOLARE DI ANCONA opened a total of one branch in May in Faenza (Ravenna) and
five new mini-branches: in January in Frosinone at the air and naval base; between April
and June in Torre San Patrizio (Fermo), Acquasanta Terme (Ascoli Piceno), Limatola
(Benevento) and Riardo (Caserta) by transforming four existing treasury branches. Again in
April it closed a total of 14 branches3;
•
BANCA CARIME
•
transformed two former treasury branches in Castione della
Presolana (Bergamo) and Provaglio d’Iseo (Brescia) in the district of Provezze into minibranches in June;
•
BANCO DI SAN GIORGIO opened a new branch in June at Finale Ligure (Savona) and closed a
mini-branch in March in Via alla Porta degli Archi in Genoa;
•
UBI BANCA PRIVATE INVESTMENT, however, closed five branches in April in Cagliari, in
Castellammare di Stabia (Naples), in Macerata, in Naples in Via Alvino and in Rome in Via
Anicio Gallo.
opened a second branch in Brindisi in April in Via Commenda, while in
March it closed a mini-branch in Vibo Valentia in Corso Vittorio Emanuele III;
BANCA DI VALLE CAMONICA
1 Monza at 27 Via Cavallotti; Varese at 146 Viale Borri and in Via Magenta; Gallarate (Varese) in Via Verdi; Saronno (Varese) in Via
San Giuseppe; Olgiate Comasco (Como) at 39 Via Roma.
2 Novara at 5 Largo Don Minzoni, Pinerolo (Turin) in Piazza Vittorio Veneto; Borgosesia (Vercelli) in Via Duca d’Aosta.
3 Ancona in Via Trieste; Osimo (Ancona) in Via Marco Polo; Jesi (Ancona) in Via Gallodoro; Pesaro on the Adriatica state road and Via
Strada delle Marche; Urbino in Borgo Mercatale; Novafeltria (Pesaro Urbino) in Piazza Cappelli in the Secchiano District; Civitanova
Marche (Macerata) in Via Pellico in the Santa Maria Apparente District; Ascoli Piceno in Via Angelini; Montappone (Fermo); Rome in
Via Milano; San Gregorio da Sassola (Rome); Naples in Via Schipa; Bacoli (Naples).
34
The opening of around ten branches is
planned in the second half of the year to
complete the 2009-2011 Branches Plan.
Under the new Business Plan for the period
2012-2015, the size of the Group’s branch
network is to remain basically unchanged
with around fifty new branches and about
sixty further rationalisations.
The Italian distribution network of the
Group is completed by units dedicated
specifically to private banking customers
(private banking units and the associated
“corners”) and to corporate customers
(corporate banking units and the associated
“corners”). These were also affected by
reorganisation performed in parallel with
the changes to the distribution model of the
network banks already mentioned.
At the end of June, 106 private banking
facilities were in operation and 94 corporate
banking facilities, which had risen to 109
and 98 respectively at the date of this
report4.
P rivate banking and corporate units
Private Banking Units
30.6.2011
31.12.2010
Change
106
107
-1
Private Banking Units (PBU)
Banca Popolare di Bergamo
Banco di Bres cia
Banca Popolare Commercio e Indus tria
Banca Regionale Europea
Banca Carime
Banca Popolare di Ancona
Banca di Valle Camonica
Banco di San Giorgio
UBI Banca Private Inves tment
Private corners
Banca Popolare di Bergamo
Banco di Bres cia
Banca Popolare Commercio e Indus tria
Banca Regionale Europea
Banca Carime
Banca Popolare di Ancona
Banco di San Giorgio
Corporate Banking Units
Corporate Banking Units (CBU)
Banca Popolare di Bergamo
Banco di Bres cia
Banca Popolare Commercio e Indus tria
Banca Regionale Europea
Banca Carime
Banca Popolare di Ancona
Banca di Valle Camonica
Banco di San Giorgio
Corporate corners
Banca Popolare di Bergamo
Banco di Bres cia
Banca Popolare Commercio e Indus tria
Banca Regionale Europea
Banca Carime
Banca Popolare di Ancona
Banca di Valle Camonica
Banco di San Giorgio
55
14
9
8
6
3
5
1
3
6
51
18
5
5
2
10
11
94
58
14
12
8
6
3
5
1
3
6
49
18
3
5
1
11
11
94
65
18
13
9
8
6
6
2
3
29
1
11
4
2
3
7
1
-
-3
-3
2
2
1
-1
-
66
18
15
9
8
5
6
2
3
28
1
8
4
3
3
7
1
1
-1
-2
1
1
3
-1
-1
Group customers are also supported by a
network comprised of 750 financial advisors
reporting to UBI Banca Private Investment, consisting of 397 operating in the central and
northern division and 353 in the central and southern division.
The decrease compared to the figure at the end of 2010 (-36 financial advisors) reflects Group
policy adopted in 2008 designed to improve the quality of the network. This led to the release
of 57 financial advisors, most of whom with a portfolio smaller than the average and the
recruitment of 21 new financial advisors with an average-to-high portfolio profile.
As a result of that action, and despite the negative performance of markets, the average size of
the portfolios increased during the first half from six million euro to 6,4 million euro.
4 The changes that occurred since the beginning of the year and until the date of publishing this report were as follows:
-
-
with regard to private banking facilities, in January Banco di Brescia streamlined its presence in Milan and Brescia unifying the
four units previously operating in the two Lombard cities into just two PBUs, while in April it opened two separate corners in
Cremona and Mantua, following the closure of its Cremona and Mantua PBU. Banca Carime, on the other hand, closed a corner
in Vibo Valentia in March and a corner in Lagonegro (Potenza) in August, while it transformed two corners in Reggio Calabria and
Lecce into PBUs. In May Banca Regionale Europea opened a new corner in Turin, while in August Banca di Valle Camonica
opened a new PBU in Brescia. In that same month Banca Popolare di Bergamo transformed two PBUs in Grumello del Monte
and Ponte San Pietro (Bergamo) into corners, opening two new PBUs in Bergamo and in Varese and a new corner in Milan. Again
in August Banca Popolare di Ancona transformed two corners in Ascoli Piceno and Caserta into PBUs;
as concerns corporate banking facilities, in January Banco di Brescia unified two units operating previously in Milan into one
single CBU and it transformed its Cremona CBU into a corner, while opening two new corners in Milan in Lambrate and in
Corsico (Milan). Again in January Banco di San Giorgio closed a corner in Imperia, while Banca Carime transformed a corner in
Lecce into a CBU and opened a new corner in Martina Franca (Taranto). In August that same bank closed a CBU in Andria and a
corporate corner in Lamezia Terme (Catanzaro), while it opened a new corner in Foggia. In May Banca Regionale Europea closed
a corner in Vercelli and in August Banca Popolare di Ancona opened three corners in Civitanova Marche (Macerata),
Campobasso and Osimo (Ancona) and transformed a corner in Aversa (Caserta) into a CBU. Again in August Banca di Valle
Camonica and Banca Popolare Commercio e Industria opened two new corners in Brescia and Assago (Milan).
35
The international presence
At the date of this report the international presence of the UBI Banca Group was structured as
follows:
two foreign banks, Banque de Dépôts et de Gestion Sa (with three branches in Switzerland
at Lausanne, Geneva and Lugano and a fund management company in Singapore) and UBI
Banca International Sa (with headquarters in Luxembourg, branches in Munich and
Madrid and a trust company in Luxembourg);
•
three foreign branches of Banca Regionale Europea in France (at Nice, Menton and
Antibes);
•
representative offices in Sao Paolo in Brazil, Mumbai, Shanghai, Hong Kong and Moscow;
•
equity investments (mainly controlling interests) in four foreign companies: in addition to
UBI Trustee Sa Luxembourg and BDG Singapore Private Ltd. also in Lombarda China Fund
Management Co. and UBI Management Co. Sa;
•
one branch of UBI Factor Spa in Krakow in Poland;
•
37 commercial co-operation agreements with foreign banks (covering more than 50
countries), two “Trade Facilitation” agreements with the European Bank for Reconstruction
and Development (EBRD) and with the International Financial Corporation (IFC) and also a
“product partnership” in the Middle East and in Asia with Standard Chartered Bank to
guarantee effective assistance on all the principal markets in those areas.
During the first half of 2011 the UBI Banca Group sponsored events of national and
international importance in order to increase the visibility of its brand in Italy and abroad and
to consolidate its closeness to customers who operate on international markets. It also
organised conventions, meetings and events, in co-operation with other Group companies5.
•
Just three years after opening, in July our representative office in Moscow received a prestigious award
from the Association of Regional Russian banks. It was awarded a prize as the best foreign bank present in
Russia on the basis of the quality of its contacts with Russian counterparties, the activity performed with
these and also the professional esteem which these have for the UBI Banca team.
Remote channels
Market coverage by the UBI Banca Group is completed by its integrated multi-channel services
provided through an innovative platform which unifies all the direct channels available to
private individual and business customers (internet and mobile banking, the contact centre,
self service facilities such as ATMs and kiosks, evolved cards and payment systems, the
Corporate banking InterBancario service and POS terminals).
5 The very many initiatives included the following:
- the fifth edition of the International Banking Forum, held in Brescia on 16th and 17th June, entitled “Risk and Trade in the new
Emerging Markets: the CIVETS” (Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa). The initiative, which was organised
to consolidate correspondent banking business and relationships with foreign banks, was attended by 57 counterparties from
foreign banks, international bodies and supranational institutions from 23 countries to give a total of 130 participants;
- the launch of a privileged partnership on the occasion of the celebrations for the 150th anniversary of the unification of Italy with
the La Scala Theatre Academy which resulted in the organisation in 2011 of an international tournée in ten foreign cities in which
the Group is present with its foreign network (already reached: Mumbai, Madrid, Moscow, Luxembourg, Munich, Singapore, Hong
Kong and Shanghai);
- participation as the exclusive banking sponsor in the eighth edition of the China Trader Award, an important and prestigious prize
for Italian companies that have excelled – in terms of determination, dynamism, innovation and creativity – in the development of
business relations with Hong Kong and China;
- the organisation on 21st and 23rd June 2011 in Turin and at Jesi respectively of an “International Open Day” (an event for
businessmen operating on foreign markets who wish to internationalise their companies), which involved representatives of the
Group’s international network and the management teams of the network bank hosts (BRE and BSG in Turin with 120 corporate
clients and prospects present; BPA at Jesi with over 110 participants). The specialist workshops were held by managers of the
Group’s representative offices, UBI Banca International, Centrobanca, UBI Factor and Banque de Dépôts et de Gestion and by
some external experts: CEI Piemonte (Piedmont Foreign Centre for Internationalisation), the Marches Region, the Confindustria of
Pesaro and the Marchet (Ancona Agency for the World Market), an agency for the internationalisation of the Chamber of
Commerce of Ancona.
36
With that platform it is possible to enable continuous improvement to the services offered, in
terms of additional services and round the clock seven day a week accessibility from different
devices (e.g. personal computers, smartphones, self service machines) as well as customisation
of their use. The objective is to increase the loyalty of current customers and to attract new
target customers, such as young people and foreigners, naturally with a propensity to use
direct in addition to conventional channels.
The strategic importance of an integrated multi-channel platform was also underlined in the
new 2011-2015 Business Plan, with a specific project.
With regard to the channels available to private individual customers, in the first six months
of 2011 the users of the QUI UBI Internet Banking service increased by 11% to exceed 714
thousand users at the end of June (approximately 643 thousand in December 2010). The
performance of the QUI UBI Affari service for small businesses was equally encouraging with
approximately 81 thousand users (+24% since the beginning of the year). The number of
Contact Centre users also increased by 11% to over 770 thousand (compared to more than
694 thousand at the end of 2010).
Customer satisfaction with these services is shown by the significant increase in their use over
the six month period:
• +34% to over 2,7 million, for the number of payment and telephone recharge transactions
performed using QUI UBI Internet Banking;
• half of trades on regulated markets performed using QUI UBI Internet Banking and the
Contact Centre (56% excluding the approximately 85 thousand branch transactions in
June alone performed in relation to trades in rights related to the share capital increase);
• in the mobile banking area, approximately 75 thousand accesses per month to the site
optimised for cell phone navigation (approximately 15 thousand in 2010), with 28 thousand
downloads of the application for iPhones and Androids;
• +19% for the number of paying in transactions in cash or by cheque through the 306
evolved ATMs with a consequent increase in their percentage of total paying-in transactions
to 16,3% (14,5% in the first half of 2010).
New initiatives are planned for future months designed to add to the services provided. These
include a range of products and services for foreigners, the start of online sales on QUI UBI
Internet Banking and the release of dedicated applications for BlackBerry cell phones and
Apple iPads in the mobile phone area.
Cards
At the end of June a total of 810 thousand Libra (issued by B@nca 24-7) and CartaSì credit
cards were in issue, a decrease compared to December (over one million). When the mass
migration to microchip cards took place, no substitution was requested for many dormant
cards, while in other cases customers preferred to replace multifunction cards with the debit
card (Libramat) component only.
On the other hand, the results for prepaid cards were very positive having exceeded 208
thousand in number by the end of June, with an increase of over 18% compared to
approximately 176 thousand at the end of 2010. The trend for this sector benefited from the
success of the Enjoy card, thanks to the effectiveness of the advertising campaign conducted
in the second half of 2010, with the total number of cards issued reaching 71 thousand, an
increase of over 50% compared to 45 thousand cards in issue at the end of year. The
improvement in transaction flows for sums spent in retail outlets was equally satisfactory.
As concerns debit cards, the issue of Libramat cards (debit cards in the Bancomat,
Pagobancomat and Maestro networks) was positively affected by the campaign for the
withdrawal of old multi-function cards equipped with magnetic band technology only. Total
cards in issue increased in the period by approximately 60 thousand (+4%) to exceed
1.430.000.
37
The trend compared to same period of 2010 was also favourable in terms of both use of
Bancomat debit cards at ATMs (+4%) and sums spent at points of sale (+5%).
Activities to replace magnetic band debit and credit cards with microchip cards are nearing
completion: as at 30th June approximately 85% of the new debit cards had already been
delivered to customers.
Major initiatives planned for the second half of the year include the start of online sales of
Enjoy cards, the launch of a new debit card on the market for minors aged between 13 and 17
years and the start of feasibility studies for innovative projects in the mobile payments area.
The positioning of the Group
UBI Banca Group: market shares
31.3.2011
Branches
North Italy
31.12.2010
6,4%
6,4%
Lombardy
Prov. of Bergamo
Prov. of Brescia
Prov. of Com o
Prov. of Lecco
Prov. of Sondrio
Prov. of Mantua
Prov. of Milan
Prov. of Monza Brianza
Prov. of Pavia
Prov. of Varese
13,0%
21,0%
22,8%
6,2%
5,4%
8,1%
5,7%
9,1%
8,4%
15,5%
23,8%
12,9%
21,0%
22,6%
6,2%
5,4%
8,1%
5,7%
9,1%
8,5%
15,6%
23,7%
Piedmont
Prov. of Alessandria
Prov. of Cuneo
Prov. of Novara
8,4%
11,7%
24,5%
5,1%
8,4%
11,1%
24,5%
5,1%
Liguria
Prov. of Genoa
Prov. of Imperia
Prov. of Savona
Prov. of La Spezia
5,9%
4,8%
5,8%
5,9%
10,2%
6,0%
5,0%
5,8%
5,9%
10,3%
3,6%
3,6%
Marches
Prov. of Ancona
Prov. of Macerata
Prov. of Fermo
Prov. of Pesaro-Urb ino
Central Italy
8,8%
10,6%
9,5%
10,7%
8,1%
8,8%
10,6%
9,5%
10,6%
8,1%
Latium
Prov. of Viterb o
Prov. of Rom e
4,3%
14,7%
4,0%
4,3%
14,8%
4,0%
South Italy
8,3%
8,3%
6,1%
8,6%
8,0%
5,5%
6,1%
8,6%
8,1%
5,5%
Calabria
Prov. of Catanzaro
Prov. of Cosenza
Prov. of Crotone
Prov. of Reggio Calab ria
Prov. of Vib o Valentia
22,3%
14,4%
26,3%
18,9%
22,2%
26,3%
22,2%
14,3%
25,7%
18,9%
22,1%
28,2%
Basilicata
Prov. of Matera
Prov. of Potenza
14,3%
15,7%
13,7%
14,4%
15,7%
13,8%
Apulia
Prov. of Brindisi
Prov. of Bari
Prov. of Barletta-Andria-Trani
Prov. of Taranto
8,2%
11,5%
10,1%
6,5%
8,5%
8,2%
11,5%
10,1%
6,4%
8,5%
5,6%
5,6%
Campania
Prov. of Caserta
Prov. of Salerno
Prov. of Naples
Total Italy
The table summarises the positioning of the UBI
Banca Group in terms of branches as at 31st March
2011 in provinces with a more significant presence,
on the basis of the latest available Bank of Italy
data.
No significant changes occurred compared to the
position at the end of 2010.
Therefore at the end of March the Group continued
to be able to count on a market share of greater
than 10% in 19 Italian provinces, in addition to a
substantial presence in Milan (9%) and in Rome
(4%).
38
Consolidation scope
The companies that formed part of the consolidation as at 30th June 2011 are listed below,
divided into subsidiaries (consolidated line-by-line) and associates (consolidated using the
equity method).
The percentage of control or ownership attributable to the Group (direct or indirect), their
headquarters (registered address or operating headquarters) and the share capital is also
indicated for each of them.
Companies consolidated on a line-by-line basis (control is by the Parent of the Group where no
other indication is given):
1. Unione di Banche Italiane Scpa – UBI Banca (Parent)
registered address: Bergamo, Piazza Vittorio Veneto, 8 – share capital: 2.254.366.897,50 euro1
2. Banca Popolare di Bergamo Spa (100% controlled)
registered address: Bergamo, Piazza Vittorio Veneto, 8 – share capital: 1.350.514.252 euro
3. Banco di Brescia San Paolo CAB Spa (100% controlled)
registered address: Brescia, Corso Martiri della Libertà, 13 – share capital: 615.632.230,88 euro
4. Banca Popolare Commercio e Industria Spa (75,0769% controlled)
registered address: Milano, Via della Moscova, 33 – share capital: 934.150.467,60 euro
5. Banca Regionale Europea Spa (74,9437% controlled)2
registered address: Cuneo, Via Roma, 13 – share capital: 468.880.348,04 euro
6. Banca Popolare di Ancona Spa (92,9167% controlled)
registered address: Jesi (Ancona), Via Don A. Battistoni, 4 – share capital: 122.343.580 euro
7. Banca Carime Spa (92,8331% controlled)
registered address: Cosenza, Viale Crati snc – share capital: 1.468.208.505,92 euro
8. Banca di Valle Camonica Spa (74,2439% controlled and Banco di Brescia holds 8,7156%)
registered address: Breno (Brescia), Piazza Repubblica, 2 – share capital: 2.738.693 euro
9. Banco di San Giorgio Spa (the parent holds 37,7331% and BRE holds 57,3332%)
registered address: Genova, Via Ceccardi, 1 – share capital: 94.647.277,50 euro
10. Banque de Dépôts et de Gestion Sa (100% controlled)
registered address: Avenue du Théâtre, 14 - Lausanne (Switzerland) – share capital: 10.000.000
Swiss francs
11. BDG Singapore Pte Ltd (100% controlled by Banque de Dépôts et de Gestion)
registered address: 391B Orchard Road # 15-01 Ngee Ann City Tower B – Singapore – share capital:
5.600.000 Singapore dollars
12. UBI Banca International Sa (90,6031% controlled and Banco di Brescia holds 5,8519%, BPB
3,3723% and Banco di San Giorgio 0,1727%)
registered address: 37/A, Avenue J.F. Kennedy, L – Luxembourg – share capital: 59.070.750 euro
13. UBI Trustee Sa (100% controlled by UBI Banca International)
registered address: 37/A, Avenue J.F. Kennedy, L – Luxembourg – share capital: 250.000 euro
14. B@nca 24-7 Spa (100% controlled)
operating headquarters: Bergamo, Via A. Stoppani, 15 – share capital: 316.800.000 euro
1 Share capital as at 18th July 2011; the share capital as at 30th June 2011 was 2.203.694.285 euro.
2 The percentage of control relates to the total share capital held. The Group does in fact possess 80,1054% of the ordinary shares,
26,4147% of the privileged shares and 59,127% of the savings shares.
39
15. Barberini Sa (100% controlled)
registered address: Woluwe-Saint-Pierre, Avenue de Tervueren, 237 – Brussels (Belgium) – share
capital: 3.000.000 euro3
16. Prestitalia Spa (100% controlled by B@nca 24-7)
registered address: Roma, Via Ostiense, 131/L – share capital: 46.385.482 euro
17. Silf Società Italiana Leasing e Finanziamenti Spa (100% controlled)
registered address: Cuneo, Via Roma, 13 – share capital: 2.000.000 euro
18. IW Bank Spa (65,0392% controlled and Centrobanca holds 23,496%)
registered address: Milano, Via Cavriana, 20 – share capital: 18.404.795 euro
19. InvestNet International Spa (100% controlled by IW Bank)
registered address: Milano, via Cavriana, 20 – share capital: 12.478.465 euro
20. Investnet Italia Srl (100% controlled by IW Bank)
registered address: Milano, via Cavriana, 20 – share capital: 5.000.000 euro
21. Invesclub Srl – in liquidation (100% controlled by IW Bank)
registered address: Milano, Via San Vittore al teatro, 1 – share capital: 10.000 euro
22. UBI Banca Private Investment Spa (100% controlled)
registered address: Brescia, Via Cefalonia, 74 – share capital: 67.950.000 euro
23. Centrobanca Spa (92,3890% controlled and BPA holds 5,4712%)
registered address: Milano, Corso Europe, 16 – share capital: 369.600.000 euro
24. Centrobanca Sviluppo Impresa SGR Spa (100% controlled by Centrobanca)
registered address: Milano, Corso Europe, 16 – share capital: 2.000.000 euro
25. FinanzAttiva Servizi Srl (100% controlled)
registered address: Bergamo, Piazza Vittorio Veneto, 8 – share capital: 5.660.000 euro
26. UBI Pramerica SGR Spa (65% controlled)
operating headquarters: Milano, Via Monte di Pietà, 5 – share capital: 19.955.465 euro
27. UBI Management Company Sa (100% controlled by UBI Pramerica SGR)
registered address: 37/A, Avenue J.F. Kennedy, L – Luxembourg – share capital: 125.000 euro
28. UBI Insurance Broker Srl (100% controlled)
registered address: Bergamo, Via f.lli Calvi, 15 – share capital: 3.760.000 euro
29. UBI Leasing Spa (79,9962% controlled and BPA holds 18,9965%)
registered address: Brescia, Via Cefalonia, 74 – share capital: 241.557.810 euro
30. Unione di Banche Italiane per il Factoring Spa - UBI Factor Spa (100% controlled)
registered address: Milano, Via f.lli Gabba, 1/a – share capital: 36.115.820 euro
31. BPB Immobiliare Srl (100% controlled)
registered address: Bergamo, Piazza Vittorio Veneto, 8 – share capital: 185.680.000 euro
32. Società Bresciana Immobiliare Mobiliare - S.B.I.M. Spa (100% controlled)
registered address: Brescia, Via A. Moro, 13 – share capital: 35.000.000 euro
33. Società Lombarda Immobiliare Srl - SOLIMM (100% controlled)
registered address: Brescia, Via Cefalonia, 74 – share capital: 100.000 euro
34. BPB Funding Llc (100% controlled)
registered address: One Rodney Square, 10th floor, Tenth and King Streets, Wilmington, New Castle
County, Delaware, USA – share capital: 1.000.000 euro
35. BPB Capital Trust (100% controlled by BPB Funding Llc)
registered address: One Rodney Square, 10th floor, Tenth and King Streets, Wilmington, New Castle
County, Delaware, USA – share capital: 1.000 euro
36. Banca Lombarda Preferred Capital Company Llc (100% controlled)
registered address: 1209, Orange Street the Corp. Trust Center, Wilmington, New Castle County,
Delaware, USA – share capital: 1.000 euro
3 UBI Banca also holds 92.784 financial instruments termed “parts bénéficiaires” issued by the company which do not form part of the
share capital.
40
37. Banca Lombarda Preferred Securities Trust (100% controlled)
registered address: 1209, Orange Street the Corp. Trust Center, Wilmington, New Castle County,
Delaware, USA – share capital: 1.000 euro
38. BPCI Funding Llc (100% controlled)
registered address: One Rodney Square, 10th floor, Tenth and King Streets, Wilmington, New Castle
County, Delaware, USA – share capital: 1.000.000 euro
39. BPCI Capital Trust (100% controlled by BPCI Funding Llc)
registered address: One Rodney Square, 10th floor, Tenth and King Streets, Wilmington, New Castle
County, Delaware, USA – share capital: 1.000 euro
40. UBI Fiduciaria Spa (100% controlled)
registered address: Brescia, Via Cefalonia, 744 – share capital: 1.898.000 euro
41. UBI Gestioni Fiduciarie Sim Spa (100% controlled by UBI Fiduciaria)
registered address: Brescia, Via Cefalonia, 744 – share capital: 1.040.000 euro
42. Coralis Rent Srl (100% controlled)
registered address: Milano, Via f.lli Gabba, 1 – share capital: 400.000 euro
43. UBI Sistemi e Servizi SCpA5 – Consortium Stock Company (70,9193% controlled and 2,9599%
held by: Banca Popolare di Bergamo, Banco di Brescia, Banca Popolare Commercio e Industria,
Banca Popolare di Ancona, Banca Carime and Banca Regionale Europea; 1,4799% held by: Banco di
San Giorgio, Banca di Valle Camonica, UBI Banca Private Investment, UBI Pramerica SGR,
Centrobanca and B@nca 24-7; 0,74% held by UBI Factor; 0,074% held by: IW Bank, UBI Insurance
Broker and SILF)
registered address: Brescia, Via Cefalonia, 62 – share capital: 35.136.400 euro
44. UBI Finance Srl6 (60% controlled)
registered address: Milano, Foro Bonaparte, 70 – share capital: 10.000 euro
45.
46.
47.
48.
49.
50.
51.
52.
Albenza 3 Srl7
Orio Finance Nr. 3 Plc7
Sintonia Finance Srl7
24-7 Finance Srl8
Lombarda Lease Finance 4 Srl9
UBI Finance 2 Srl10
UBI Finance 3 Srl11
UBI Lease Finance 5 Srl12
4
With effect from 1st January 2011, UBI Fiduciaria and UBI Gestioni Fiduciarie Sim transferred their registered addresses in Brescia
from 70, via Cefalonia to 74, via Cefalonia in the new UBI Banca management centre.
5 The Group holds a controlling 98,52% interest in the share capital of UBI.S; the remaining 1,48% is held by UBI Assicurazioni.
6 A special purpose entity in accordance with Law No. 130/1999, this company, enrolled on the general list of intermediaries
pursuant to Art. 106 of the consolidated banking act, was formed on 18th March 2008 to allow the Parent to implement a
programme to issue covered bonds.
7 Special purpose entities formed in compliance with Law No. 130/1999 for the securitisations performed in 2001 and 2002 by the
former BPB-CV Scrl (Albenza 3 Srl), by BPU International Finance Plc Ireland, subsequently closed down – (Orio Finance Nr. 3 Plc)
and by Centrobanca (Sintonia Finance Srl). They were included in the consolidated financial statements because they are in reality
controlled, since their assets and liabilities were originated by Group member companies. The consolidation only concerns those
assets subject to securitisation and the relative liabilities issued. With regard to Sintonia Finance, as the securitisation was
multioriginator, only those assets and liabilities relating to the operation originated by Centrobanca were consolidated.
8 A special purpose entity (formerly Lombarda Lease Finance 1 Srl) used in compliance with Law No. 130/1999 for the B@nca 24-7
securitisations performed in 2008. It was included in the consolidated financial statements because this company is in reality
controlled, since its assets and liabilities were originated by a Group member company. UBI Banca holds a 10% stake.
9 A special purpose entity formed in accordance with Law No. 130/1999 for the securitisation performed in 2005 by SBS Leasing. It
was included in the consolidated financial statements because this company is in reality controlled, since its assets and liabilities
were originated by a Group member company. UBI Banca holds a 10% stake.
10 A special purpose entity formed in accordance with Law No. 130/1999 for the securitisation performed in 2001 by Banco di
Brescia and completed in the meantime. The company (formerly “Lombarda Mortgage Finance 1 Srl”) was used as an SPE (special
purpose entity) for the securitisation of a portfolio of performing loans performed by Banco di Brescia at the beginning of 2009. It
was included in the consolidated financial statements because this company is in reality controlled, since its assets and liabilities
were originated by a Group member company. UBI Banca holds a 10% stake.
11 A special purpose entity formed in accordance with Law No. 130/1999 for the securitisation performed by SBS Leasing in 2002
and completed in the meantime. The company (formerly Lombarda Lease Finance 2 Srl) was used as an SPE (special purpose
entity) for the securitisation of a portfolio of performing loans performed by Banca Popolare di Bergamo at the end of 2010. It was
included in the consolidated financial statements because this company is in reality controlled, since its assets and liabilities were
originated by a Group member company. UBI Banca holds a 10% stake.
12 A special purpose entity formed in compliance with Law No. 130/1999 and used as an SPE for the securitisation of performing
loans by UBI Leasing in November 2008. It was included in the consolidated financial statements because this company is in
reality controlled, since its assets and liabilities were originated by a Group member company. UBI Banca holds a 10% stake.
41
Companies consolidated using the equity method (the investment is by the Parent where no
other indication is given):
1. Aviva Vita Spa (50% controlled)
registered address: Milano, Viale Abruzzi, 94 – share capital: 135.000.000 euro13
2. Aviva Assicurazioni Vita Spa (formerly UBI Assicurazioni Vita Spa)
(49,9999% held by UBI Banca)
registered address: Milano, Viale Abruzzi, 94 – share capital: 49.721.776 euro
3. Lombarda Vita Spa (40% interest held)
registered address: Brescia, Corso Martiri della Libertà, 13 – share capital: 185.300.000 euro
4. UBI Assicurazioni Spa (49,9999% interest held)
registered address: Milano, via Tolmezzo, 1514 – share capital: 32.812.000 euro
5. Polis Fondi SGRpA (19,6% interest held)
registered address: Milano, Via Solferino, 7 – share capital: 5.200.000 euro
6. Lombarda China Fund Management Company (49% interest held)
registered address: 47, Sin Mao Tower, 88 Century Boulevard, Pudong Area 200121, Shanghai
(China) – share capital: 120.000.000 yuan/renminbi
7. SF Consulting Srl (35% interest held)
operating headquarters: Mantova, Via P.F. Calvi, 40 – share capital: 93.600 euro
8. Sofipo Fiduciaire Sa (30% interest held by Banque de Dépôts et de Gestion)
registered address: Via Balestra, 22B - Lugano (Switzerland) – share capital: 2.000.000 Swiss francs
9. Arca SGR Spa (23,1240% interest held by the Parent and 3,5840% by BPA)
registered address: Milano, Via M. Bianchi, 6 – share capital: 50.000.000 euro
10. S.P.F. Studio Progetti Finanziari Srl (25% interest held by BPA)
registered address: Roma, Via National, 243 – share capital: 92.960 euro
11. Prisma Srl (20% interest held)
registered address: Milano, Via S. Tecla, 5 – share capital: 120.000 euro
12. Siderfactor Spa (27% interest held by UBI Factor)
registered address: Milano, Via f.lli Gabba, 1/A – share capital: 1.200.000 euro
13. Capital Money Spa (20,6711% interest held)
registered address: Milano, Via Lausanne, 16 – share capital: 2.042.955 euro
14. Ge.Se.Ri. – Gestione Servizi di Riscossione Spa in liquidation (100% controlled by BRE)
registered address: Cuneo, Via Roma, 13 – share capital: 323.520 euro
15. UFI Servizi Srl (23,1667% interest held by Prestitalia)
registered address: Roma, Via G. Severano, 24 – share capital: 150.000 euro
13 The share capital as at 31st July 2011; the share capital as at 30th June 2011 was 125.000.000 euro.
14 In a meeting of 20th May the Board of Directors of UBI Assicurazioni Spa passed a resolution to transfer the registered address from
12 Piazzale Zavattari to 15 Via Tolmezzo (still in Milan) from 20th June 2011.
42
Changes in the consolidation scope
No changes were made to the consolidation scope compared to 31st December 2010 except for
those reported below. The descriptions of the changes are grouped into those for banks and
those for other companies for which details of the rationalisation process and action taken to
strengthen capital are given.
Banks:
• Banca Popolare di Ancona Spa: UBI Banca made further purchases during the first half of
2011 from non controlling shareholders, for a total of 4.489 shares (a small fraction
amounting to 0,0184% of the share capital), which brought its controlling interest up from
92,8983% at the end of 2010 to 92,9167%;
• Banca Carime Spa: in the first three months of the year the Parent acquired 13.580 shares
from non controlling shareholders, bringing its control of the subsidiary up to 92,8331%
(92,8322% in December).
• Banco di San Giorgio Spa: subsequent to 31st December 2010, UBI Banca acquired 971.219
shares from private individuals to increase its investment from 36,1939% at the end of
2010 to 37,7331% as at 30th June 2011. If the stake held by BRE (57,3332% of the share
capital) is considered, the total control of this Ligurian bank is 95,0663% (93,5271% as at
31st December 2010).
• IW Bank: as a result of transactions which occurred in the first half of 2011, control by the
Group rose from 78,77% of the total share capital at the end of 2010 (55,2740% held by
UBI Banca and 23,4960% by Centrobanca) to 88,5352% as at 30th June 2011 (65,0392%
held by the Parent and 23,4960% by Centrobanca). Both figures exclude treasury shares
held by IW Bank accounting for 1,1290% of the share capital, while Webstar holds the
remaining 10,3358%.
A summary of the main stages of the change is given below:
-
-
-
-
-
15
27th October 2010: after an interest of greater than 90% of the share capital with voting
rights came to be held (a threshold which determines the obligation to purchase the
remaining shares of the issuer), UBI Banca and Webstar (bound by a shareholders’
agreement) jointly announced, in compliance with Art. 50 of the Issuers’ Regulations
(residual public tender offer), their intention not to restore the free float and to comply
with the purchase obligation.
16th February 2011: with Resolution No. 17669, the Consob (Italian securities market
authority) set the share price at 1,988 euro per share for the purchase, in accordance
with Art. 108, paragraph 2 of the Consolidated Finance Act, of the ordinary shares of IW
Bank by the offerors;
22nd February 2011: UBI Banca decided to pay an increase on the price set by the
Consob, thereby bringing it up to 2,043 euro15 for each share offered for sale, if it came
to hold at least 95% of the share capital;
15th March 2011: with Note No. 11019656 the Consob authorised the publication of the
information document in relation to the operation for the obligation to purchase
7.189.039 ordinary shares of IW Bank (9,8767% of the share capital with voting rights
and 9,7652% of the total share capital) in compliance with Art 108, paragraph 2 of the
Consolidated Finance Act;
21st March 2011: start of the period for the presentation of applications to sell collected
on the Mercato Telematico Azionario (electronic stock exchange);
7th April 2011: UBI Banca disclosed that applications to sell had been received
representing 4.007.842 ordinary shares of IW Bank, equal to 5,5062% of the share
capital with voting rights and 5,4440% of the total share capital and that as a
consequence the threshold of 95% of the share capital (calculated net of treasury shares
held in portfolio) had been exceeded. The conditions set by law had therefore been met
The highest official market price of the IW Bank share in the preceding 12 months.
43
-
-
-
for compliance with the purchase obligation pursuant to Art. 108, paragraph 1 of the
Consolidated Finance Act, and for the exercise of the right to purchase the remaining
shares in circulation, pursuant to Art. 111 of the Consolidated Finance Act, by means of
a joint operation agreed with the Consob and Borsa Italiana;
8th April 2011: end of the period for the presentation of applications to sell. The UBI
Banca Group disclosed that it held (with account taken of the IW Bank shares held by
Webstar S.A. and the treasury shares held in portfolio by IW Bank itself) a total of
70.398.647 ordinary shares of IW Bank, accounting for 96,7174% of the share capital
with voting rights (95,6254% of the total share capital);
12th April 2011: UBI Banca published the results of the purchase obligation operation in
compliance with articles 108, paragraph 2, and 109 of the Consolidated Finance Act and
details of the manner of compliance with the obligation and of the right to purchase in
accordance with articles 108 and 111 of the Consolidated Finance Act.
In the period from 21st March until 8th April, 4.799.674 shares of IW Bank were offered
under the purchase obligation operation, accounting for approximately 67% of the total
remaining shares subject to the operation and 6,5940% of the share capital with voting
rights (6,5196% of the total share capital), for a total price of 9,8 million euro (date of
payment: 13th April).
After the end of the period for the presentation of applications to sell, the joint operation
for the purchase of the remaining 2.389.365 ordinary shares of IW Bank still in
circulation (3,2826% of the share capital with voting rights and 3,2456% of the total
share capital) commenced. These were purchased at a price of 2,043 euro per share for a
total of 4,9 million euro (date of execution of the operation and payment: 19th April);
19th April 2011: after the suspension of the IW Bank share from trading in the sessions
of 14th, 15th and 18th April, Borsa Italiana removed the share from the listing on the
Mercato Telematico Azionario (electronic stock exchange) with effect from that date;
• Centrobanca Spa: on 21st April 2011, the Parent purchased 24.322 shares from a banking
counterparty for approximately 43 thousand euro. The investment held therefore rose from
92,3818% in December 2010 to 92,3890% at the end of first half of the year, while Group
control grew at the same time during the period from 97,8530% to 97,8602%.
Other companies
• Lombarda Lease Finance 3: following the early close down of the securitisation transaction
in the summer of 2010 and the redemption of all the notes issued, the underlying business
was removed from the consolidation scope on 1st January 2011 (although the company
remains operational). The items in the income statement relating to the assets and
liabilities of the company recognised during the year, but no longer present at year end, still
appeared in the accounts for the year ended 31st December 2010;
• Ubi Sistemi e Servizi Scpa: on 13th January 2011 UBI Pramerica SGR sold 50.000 shares of
UBI.S to IW Bank for 38.500 euro. This allowed this internet bank to become a shareholder
of the consortium company with 0,074%, while the interest held by UBI Pramerica SGR fell
from 1,5539% at the end of December to 1,4799%;
• Polis Fondi SGRpA: on 14th February 2011 the agreement was completed, signed on 28th
July 2010 by principal shareholders: Sopaf on the one hand (which held 49% of the share
capital) and UBI Banca together with Banco Popolare, BPER, Banca Popolare di Sondrio
and Banca Popolare di Vicenza on the other, five “popular” bank shareholders who together
also held 49%. The purpose of the agreement was to acquire the investment held by Sopaf
for consideration of eight million euro. Following the issue of the authorisation by the Bank
of Italy (on 18th January 2011), the planned transactions commenced. In this context UBI
Banca acquired a further 9,8% of the share capital (50.960 shares) for payment of 1,6
million euro. The interest held by UBI Banca therefore rose from 9,8% in December 2010 to
19,6% at the end of June.
The five “popular” banks and Unione Fiduciaria therefore signed a new five year
shareholders’ agreement, the contents of which determined a change in the method of
consolidation. Since it was no longer able by itself to influence decisions on significant
matters in terms of joint control, UBI Banca no longer qualified as possessing control,
although it does meet the conditions for significant influence. This meant that it was no
44
longer consolidated with the proportionate method (applied as at 31st December 2010) and
is now an equity-accounted investee.
Other companies: the organisational simplification process
• Prestitalia Spa: on 10th January 2011, Barberini Sa sold its entire investment held in
Prestitalia (53.378 shares accounting for 100% of the share capital) to B@nca 24-7 for a
total price of 77 million euro. Consequently, as at 30th June this bank, which specialises in
consumer credit, possessed full and direct control of the company.
On 24th March 2011, in connection with the agreements to purchase the entire share
capital of Barberini Sa and Prestitalia Spa, UBI Banca paid Medinvest International and
Pharos Sa the last instalment of the amount relating to Barberini: 1,6 million euro, which
was subject to determined conditions concerning the agency network of Presitalia being
met, and 74 thousand euro as the final balance on the purchase of 92.784 financial
instruments termed "parts bénéficiaires";
• UBI Trust Company Ltd: on 10th February 2011 the local monetary authority – Jersey
Financial Services Commission Companies Registry – announced that it had removed UBI
Trust Company from the companies register. Following the geographical repositioning of
trustee services to Luxembourg, the company was closed down with effect from 30th June
2010 (99,9980% controlled by UBI Banca International);
• Invesclub Srl: on 2nd March 2011, a Quotaholders’ Meeting of the company passed a
resolution to wind up the company by placing it into voluntary liquidation in accordance
with Art. 2484 of the Italian Civil Code. This was in consideration of its non strategic
importance both for its parent, IW Bank, and for the Group;
• Tex Factor Srl – in liquidation: on 31st March 2011 the voluntary liquidation of the company
was completed with its removal from the consolidation and, on 13th April 2011, also from
the company register;
• InvestNet International Spa: on 14th April 2011 a shareholders’ meeting of InvestNet
International Sa – a Luxembourg registered company – passed a resolution to transfer the
registered address of the company to Italy (to Milan, at 20 Via Cavriana), with the
consequent transformation of the company into an Italian registered joint stock company
named InvestNet International Spa. The transformation has not yet been recorded in the
Company Register;
• BY YOU Spa: on 27th April 2011, UBI Banca, a shareholder with a 40% stake, sold 30% of
the share capital of BY YOU (accounting for 195.000 shares) to Bluestar, Linea Mutui and
Promozione Mutui for a price of five million euro, which will be paid, except for a sum of
195 thousand euro paid immediately in cash, in five annual instalments plus interest from
January 2012. As part of that sale, the shareholders also signed a five year shareholders
agreement by which reciprocal put and call options are held on the remaining 10% stake
held by UBI Banca in BY YOU.
As a result of that sale, the company and its wholly owned subsidiaries – By You Piemonte
Srl, By You Liguria Srl, By You Mutui Srl (which controls Sintesi Mutuo Srl) and By You
Adriatica Srl – all consolidated using the proportionate method as at 31st December 2010,
were excluded from the consolidation as at 30th June 2011;
• Ge.Se.Ri. – Gestione Servizi di Riscossione Spa in liquidation: on 24th May 2011 the
Management Board of UBI Banca approved a project for the merger of the company into its
parent which wholly owns it, Banca Regionale Europea, to be performed by merger on an
acquisition basis and on the basis of the simplified procedure pursuant to article 2505 of
the Italian Civil Code. The project – approved on 6th June by the Board of Directors of BRE
in accordance with Art. 2501 ter of the Italian Civil Code and on that same date by the
receiver of Ge.Se.Ri., again in accordance with Art. 2501 ter – was communicated to the
Bank of Italy on 29th June 2011 for the issue of the relative authorisation;
• InvestNet Italy Srl: on 17th June 2011 the merger of the company into its parent according
to the simplified procedure pursuant to Art. 2505 of the Italian Civil Code was approved by
a quotaholders’ meeting of Investnet Italia and by the Board of Directors of IW Bank, which
wholly owns the company. The operation, authorised by the Bank of Italy on the preceding
45
30th May, forms part of a broader process to simplify and streamline the organisational
structure of Group. The merger took effect from 1st August 2011, while it is effective for
accounting and tax purposes from 1st January 2011;
• FinanzAttiva Servizi Srl: on 26th July 2011, the Management Board of UBI Banca decided
(in accordance with Art. 2501 ter of the Italian Civil Code) a project for the merger of
FinanzAttiva Servizi (approved by the Board of Directors of the latter on 29th July), by
means of the simplified procedure pursuant to Art. 2505 of the Italian Civil Code, since the
company is wholly owned by the Parent. The operation, which forms part of a broader
process to simplify and streamline the organisational structure of Group, has not yet
received authorisation from the Bank of Italy (the application was sent on 5th August
2011).
Other companies: share capital increases
• BDG Singapore Pte Ltd: following the start-up of operations (asset management), on 19th
January 2011 the parent company, Banque de Dépôts et de Gestion, made a payment of
5.275.000 Singapore dollars to strengthen the capital of the company, in accordance with a
shareholders’ resolution of 10th December 2010. The share capital therefore rose to
5.600.000 Singapore dollars (from 325.000 Singapore dollars before);
• Aviva Vita Spa: on 23rd February 2011, UBI Banca (which holds 50% of the company) paid
up its part (five million euro) of a share capital increase for a total of 20 million euro,
performed in more than one issuance, approved by the shareholders on that same date.
This increase was designed to provide Aviva Vita with adequate resources for its solvency
margin, now and in the future, in view of the growth in its premium income and the
redemption of a subordinated loan. The share capital of the company therefore rose from
115.000.000 euro to 125.000.000 euro at the end of the period.
On 26th July 2011, the Board of Directors of Aviva Vita decided to ask the shareholders to
pay a second tranche of the share capital increase (a total of 10 million euro, including five
million from UBI Banca, which made the payment on the following 29th July). As a
consequence, the share capital had risen to 135.000.000 euro at the end of July;
• UBI Leasing Spa: on 6th April 2011 the shareholders of the company passed a resolution to
increase the equity of the company by 60 million euro. The operation gave rise to an
increase in the share capital of 45 million euro from the previous 196.557.810 euro to the
new amount of 241.557.810 euro, through the issue of 7,5 million new ordinary shares,
with a par value of six euro each, at a price of eight euro per share. The difference of 15
million euro between the nominal value of the share and the issue price – the latter
designed to take account of the increase in the capital value of the company – was
recognised in the share premium reserve. The strengthening of the capital – a consequence
of changes in the supervisory context, the need to maintain adequate levels of capitalisation
and to fund future investments and comply with regulatory capital ratios – was subscribed
on a pro rata basis by UBI Banca and Banca Popolare di Ancona, with no change in the
respective percentage interests held.
46
Reclassified consolidated financial
statements, reclassified income statement
net of the most significant non-recurring
items and reconciliation schedules
Reclassified consolidated statement of financial position
Figures in thousands of euro
30.6.2011
A
31.12.2010
B
Changes
A-B
% changes
A/B
30.6.2010
C
Changes
A-C
% changes
A/C
ASSETS
10.
Cash and cash equivalents
20.
Financial assets held for trading
30.
Financial assets at fair value
40.
Available-for-sale financial assets
60.
Loans to banks
70.
595.685
609.040
-13.355
-2,2%
632.183
-36.498
-5,8%
1.093.974
2.732.751
-1.638.777
-60,0%
2.640.330
-1.546.356
-58,6%
468.038
147.286
320.752
217,8%
155.143
312.895
201,7%
10.223.610
10.252.619
-29.009
-0,3%
12.501.312
-2.277.702
-18,2%
4.384.636
3.120.352
1.264.284
40,5%
3.290.637
1.093.999
33,2%
Loans to customers
102.774.467
101.814.829
959.638
0,9%
100.157.746
2.616.721
2,6%
80.
Hedging derivatives
413.389
591.127
-177.738
-30,1%
916.055
-502.666
-54,9%
90.
Fair value change in hedged financial assets (+/-)
254.474
429.073
-174.599
-40,7%
621.964
-367.490
-59,1%
100.
Equity investments
381.376
368.894
12.482
3,4%
406.789
-25.413
-6,2%
120.
Property, equipment and investment property
2.077.758
2.112.664
-34.906
-1,7%
2.097.820
-20.062
-1,0%
130.
Intangible assets
5.287.195
5.475.385
-188.190
-3,4%
5.475.662
-188.467
-3,4%
of which: goodwill
4.286.210
4.416.660
-130.450
-3,0%
4.397.766
-111.556
-2,5%
140.
Tax assets
2.312.956
1.723.231
589.725
34,2%
1.362.428
950.528
69,8%
150.
Non-current assets and disposal groups held for
sale
7.041
8.429
-1.388
-16,5%
40.285
-33.244
-82,5%
160.
Other assets
2.476.298
1.172.889
1.303.409
111,1%
1.801.061
675.237
37,5%
Total assets
132.750.897
130.558.569
2.192.328
1,7%
132.099.415
651.482
0,5%
-46,3%
LIABILITIES AND EQUITY
10.
Due to banks
4.966.574
5.383.977
-417.403
-7,8%
9.252.062
-4.285.488
20.
Due to customers
56.199.737
58.666.157
-2.466.420
-4,2%
58.534.315
-2.334.578
-4,0%
30.
Securities issued
49.964.140
48.093.888
1.870.252
3,9%
44.828.119
5.136.021
11,5%
40.
Financial liabilities held for trading
844.259
954.423
-110.164
-11,5%
896.016
-51.757
-5,8%
60.
Hedging derivatives
80.
Tax liabilities
90.
Liabilities associated with activities under disposal
100.
Other liabilities
110.
120.
953.439
1.228.056
-274.617
-22,4%
1.560.152
-606.713
-38,9%
1.309.724
993.389
316.335
31,8%
814.057
495.667
60,9%
987
-
987
-
-
987
4.778.011
2.600.165
2.177.846
83,8%
3.697.804
1.080.207
Post-employment benefits
383.467
393.163
-9.696
-2,5%
405.118
-21.651
-5,3%
Provisions for risks and charges:
335.057
303.572
31.485
10,4%
271.353
63.704
23,5%
a) pension and similar obligations
b) other provisions
140.+170.
+180.+190.
Share capital, share premiums and reserves and
fair value reserves
210.
Non-controlling interests
220.
Profit for the period/year
Total liabilities and equity
n.s.
29,2%
67.022
68.082
-1.060
-1,6%
70.464
-3.442
-4,9%
268.035
235.490
32.545
13,8%
200.889
67.146
33,4%
11.821.241
10.806.898
1.014.343
9,4%
10.867.923
953.318
8,8%
942.551
962.760
-20.209
-2,1%
870.422
72.129
8,3%
251.710
172.121
132.750.897
130.558.569
47
n.s.
2.192.328
n.s.
102.074
149.636
146,6%
1,7%
132.099.415
651.482
0,5%
Reclassified consolidated quarterly statements of financial position
30.6.2011
31.3.2011
31.12.2010
30.9.2010
30.6.2010
31.3.2010
Figures in thousands of euro
ASSETS
10.
Cash and cash equivalents
20.
Financial assets held for trading
595.685
569.052
609.040
586.075
632.183
637.113
1.093.974
1.613.809
2.732.751
2.836.561
2.640.330
1.990.806
30.
Financial assets at fair value
468.038
474.114
147.286
153.951
155.143
159.658
40.
Available-for-sale financial assets
60.
Loans to banks
10.223.610
10.252.511
10.252.619
10.954.989
12.501.312
7.123.883
4.384.636
4.510.008
3.120.352
3.427.795
3.290.637
70.
2.996.834
Loans to customers
102.774.467
102.702.444
101.814.829
101.195.034
100.157.746
97.805.640
80.
Hedging derivatives
413.389
351.398
591.127
816.673
916.055
743.946
450.741
90.
Fair value change in hedged financial assets (+/-)
254.474
194.086
429.073
796.414
621.964
100.
Equity investments
381.376
378.196
368.894
375.800
406.789
419.289
120.
Property, equipment and investment property
2.077.758
2.086.769
2.112.664
2.071.976
2.097.820
2.087.323
130.
Intangible assets
5.287.195
5.452.328
5.475.385
5.478.993
5.475.662
5.497.679
of which: goodwill
4.286.210
4.416.659
4.416.660
4.413.791
4.397.766
4.401.911
140.
Tax assets
2.312.956
1.704.774
1.723.231
1.379.250
1.362.428
1.616.739
150.
Non-current assets and disposal groups held for sale
7.041
6.023
8.429
48.256
40.285
134.769
160.
Other assets
2.476.298
2.442.098
1.172.889
1.622.444
1.801.061
2.351.971
Total assets
132.750.897
132.737.610
130.558.569
131.744.211
132.099.415
124.016.391
LIABILITIES AND EQUITY
10.
Due to banks
4.966.574
7.332.517
5.383.977
7.126.257
9.252.062
4.612.141
20.
Due to customers
56.199.737
56.144.592
58.666.157
57.412.547
58.534.315
52.754.329
30.
Securities issued
49.964.140
48.678.875
48.093.888
46.463.566
44.828.119
45.670.177
40.
Financial liabilities held for trading
844.259
1.040.163
954.423
978.064
896.016
948.995
60.
Hedging derivatives
953.439
1.020.994
1.228.056
1.827.144
1.560.152
1.130.958
80.
Tax liabilities
1.309.724
1.083.134
993.389
908.091
814.057
1.277.497
90.
Liabilities associated with activities under disposal
100.
Other liabilities
110.
Post-employment benefits
383.467
382.333
393.163
402.921
405.118
414.667
120.
Provisions for risks and charges:
335.057
321.912
303.572
295.747
271.353
277.233
a) pension and similar obligations
b) other provisions
140.+170.
+180.+190.
Share capital, share premiums and reserves and fair
value reserves
987
-
-
-
-
803.894
4.778.011
4.606.189
2.600.165
4.288.484
3.697.804
3.859.410
67.022
67.317
68.082
69.560
70.464
70.982
268.035
254.595
235.490
226.187
200.889
206.251
11.821.241
11.088.990
10.806.898
10.886.557
10.867.923
11.351.150
210.
Non-controlling interests
942.551
973.302
962.760
957.099
870.422
877.815
220.
Profit for the period
251.710
64.609
172.121
197.734
102.074
38.125
132.750.897
132.737.610
130.558.569
131.744.211
132.099.415
124.016.391
Total liabilities and equity
48
Reclassified consolidated income statement
Figures in thousands of euro
10.-20.
Net interest income
of which: effects of the purchase price allocation
Net interest income excluding the effects of the PPA
70.
Dividends and similar income
Profits of equity-accounted investees
40.-50.
80.+90.+
100.+110.
Net commission income
Net income (loss) from trading, hedging and disposal/repurchase activities and from
assets/liabilities at fair value
1H 2011
1H 2010
Changes
% changes
A
B
A-B
A/B
2nd Quarter
2011
C
2nd Quarter
2010
D
Changes
% changes
FY 2010
C-D
C/D
E
1.041.116
1.050.774
(9.658)
(0,9%)
513.579
517.441
(3.862)
(0,7%)
2.142.526
(25.854)
1.066.970
(32.483)
1.083.257
(6.629)
(16.287)
(20,4%)
(1,5%)
(12.018)
525.597
(15.934)
533.375
(3.916)
(7.778)
(24,6%)
(1,5%)
(61.141)
2.203.667
18.665
18.237
428
2,3%
16.555
16.862
(307)
(1,8%)
24.099
9.622
11.066
(1.444)
(13,0%)
4.953
6.043
(1.090)
(18,0%)
17.613
586.577
607.557
(20.980)
(3,5%)
294.641
313.929
(19.288)
(6,1%)
1.185.297
7.221
(5.886)
13.107
n.s.
(7.391)
(964)
6.427
n.s.
34.044
42.916
41.262
1.654
4,0%
21.263
17.170
4.093
23,8%
92.482
220.
Other net operating income
Operating income
1.706.117
1.723.010
(16.893)
(1,0%)
843.600
870.481
(26.881)
(3,1%)
3.496.061
180.a
Operating income excluding the effects of the PPA
Personnel expense
1.731.971
(737.944)
1.755.493
(747.528)
(23.522)
(9.584)
(1,3%)
(1,3%)
855.618
(373.217)
886.415
(376.496)
(30.797)
(3.279)
(3,5%)
(0,9%)
3.557.202
(1.451.584)
180.b
Other administrative expenses
(356.290)
(384.565)
(28.275)
(7,4%)
(185.209)
(199.730)
(14.521)
(7,3%)
(769.744)
Net impairment losses on property, equipment and investment property and intangible assets
of which: effects of the purchase price allocation
Net impairment losses on property, equipment and investment property and intangib le assets
excluding the effects of the PPA
(141.020)
(34.912)
(122.815)
(37.444)
18.205
(2.532)
14,8%
(6,8%)
(81.296)
(17.456)
(61.729)
(18.722)
19.567
(1.266)
31,7%
(6,8%)
(247.236)
(74.889)
48,4%
200.+210.
130.a
130.b+c+d
190.
(106.108)
(85.371)
20.737
24,3%
(63.840)
(43.007)
20.833
Operating expenses
(1.235.254)
(1.254.908)
(19.654)
(1,6%)
(639.722)
(637.955)
1.767
Operating expenses excluding the effects of the PPA
(1,4%)
(622.266)
(619.233)
3.033
0,5%
203.878
232.526
(28.648)
(12,3%)
1.027.497
0,3%
(172.347)
(2.468.564)
(1.200.342)
(1.217.464)
(17.122)
Net operating income
470.863
468.102
2.761
Net operating income excluding the effects of the PPA
531.629
538.029
(6.400)
(1,2%)
233.352
267.182
(33.830)
(12,7%)
1.163.527
(706.932)
Net impairment losses on loans
0,6%
(2.393.675)
(263.522)
(321.704)
(58.182)
(18,1%)
(158.148)
(189.845)
(31.697)
(16,7%)
Net impairment losses on other assets and liabilities
(19.592)
(18.045)
1.547
8,6%
(17.959)
(18.660)
(701)
(3,8%)
(49.721)
Net provisions for risks and charges
(14.555)
(6.622)
7.933
119,8%
(4.136)
(4.407)
(271)
(6,1%)
(27.209)
240.+260.+270. Profits (losses) from disposal of equity investments and net impairment losses on goodwill
Pre-tax profit (loss) from continuing operations
(124.973)
(2.144)
122.829
n.s.
(125.154)
(2.236)
122.918
n.s.
90.700
48.221
119.587
(71.366)
(59,7%)
(101.519)
17.378
(118.897)
n.s.
334.335
Pre-tax profit (loss) from continuing operations excluding the effects of the PPA
108.987
189.514
(80.527)
(42,5%)
(72.045)
52.034
(124.079)
n.s.
470.365
290.
Taxes on income for the period/year from continuing operations
of which: effects of the purchase price allocation
216.748
20.006
(94.143)
22.505
(310.891)
(2.499)
n.s.
(11,1%)
293.666
9.936
(34.285)
11.153
327.951
(1.217)
n.s.
(10,9%)
(231.980)
43.770
310.
Post-tax profit from discontinued operations
-
83.357
(83.357)
(100,0%)
-
83.035
(83.035)
(100,0%)
83.368
330.
Profit for the year/period attributable to non-controlling interests
of which: effects of the purchase price allocation
(13.259)
4.441
(6.727)
5.136
6.532
(695)
97,1%
(13,5%)
(5.046)
2.139
(2.179)
2.622
2.867
(483)
131,6%
(18,4%)
(13.602)
10.034
Profit for the year/period attrib utab le to the shareholders of the Parent excluding the effects of the
PPA
288.029
144.360
143.669
99,5%
204.500
84.830
119.670
141,1%
254.347
Profit for the year/period attributable to the shareholders of the Parent
251.710
102.074
149.636
146,6%
187.101
63.949
123.152
192,6%
172.121
Total impact of the purchase price allocation on the income statement
(36.319)
(42.286)
(5.967)
(14,1%)
(17.399)
(20.881)
(3.482)
(16,7%)
(82.226)
340.
49
Reclassified consolidated quarterly income statements
2011
Figures in thousands of euro
10.-20.
70.
Net interes t incom e
2nd Quarter
80.+90.+
100.+110.
220.
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
513.579
527.537
548.555
543.197
517.441
533.333
of which: effects of the purchase price allocation
(12.018)
(13.836)
(14.598)
(14.060)
(15.934)
(16.549)
Net interest incom e excluding the effects of the PPA
525.597
541.373
563.153
557.257
533.375
549.882
16.555
2.110
3.531
2.331
16.862
1.375
4.953
4.669
(1.867)
8.414
6.043
5.023
294.641
-
291.936
-
313.767
15.384
263.973
-
313.929
-
293.628
(4.922)
Dividends and sim ilar incom e
Profits (losses) of equity-accounted investees
40.-50.
2010
1st Quarter
Net com m ission incom e
of which perform ance fees
Net incom e (los s) from trading, hedging and disposal/repurchase activities and from
as sets/liabilities at fair value
(7.391)
14.612
20.573
19.357
(964)
Other net operating incom e
21.263
21.653
25.893
25.327
17.170
24.092
843.600
862.517
910.452
862.599
870.481
852.529
Operating income
855.618
876.353
925.050
876.659
886.415
869.078
180.a
Operating income excluding the effects of the PPA
Personnel expens e
(373.217)
(364.727)
(344.469)
(359.587)
(376.496)
(371.032)
180.b
Other adm inistrative expenses
(184.835)
200.+210.
130.a
130.b+c+d
190.
(185.209)
(171.081)
(201.335)
(183.844)
(199.730)
Net im pairm ent losses on property, equipm ent and investm ent property and intangible ass ets
(81.296)
(59.724)
(63.996)
(60.425)
(61.729)
(61.086)
of which: effects of the purchase price allocation
Net im pairm ent losses on property, equipm ent and investm ent property and intangib le assets
excluding the effects of the PPA
Operating expenses
(17.456)
(17.456)
(18.722)
(18.723)
(18.722)
(18.722)
(63.840)
(42.268)
(45.274)
(41.702)
(43.007)
(42.364)
(639.722)
(595.532)
(609.800)
(603.856)
(637.955)
(616.953)
Operating expenses excluding the effects of the PPA
(598.231)
(622.266)
(578.076)
(591.078)
(585.133)
(619.233)
Net operating income
203.878
266.985
300.652
258.743
232.526
235.576
Net operating income excluding the effects of the PPA
233.352
298.277
333.972
291.526
267.182
270.847
(158.148)
(105.374)
(251.217)
(134.011)
(189.845)
(131.859)
(17.959)
(1.633)
(31.529)
(147)
(18.660)
615
(4.136)
(10.419)
(15.204)
(5.383)
(4.407)
(2.215)
Net im pairm ent losses on loans
Net im pairm ent losses on other assets and liabilities
Net provisions for risks and charges
240.+260.+270. Profits (losses) from disposal of equity investm ents and net im pairm ent loss es on goodwill
Pre-tax profit (loss) from continuing operations
(125.154)
181
12.346
80.498
(2.236)
92
(101.519)
149.740
15.048
199.700
17.378
102.209
Pre-tax profit (loss) from continuing operations excluding the effects of the PPA
(72.045)
181.032
48.368
232.483
52.034
137.480
290.
Taxes on incom e for the period from continuing operations
of which: effects of the purchase price allocation
293.666
9.936
(76.918)
10.070
(34.693)
10.720
(103.144)
10.545
(34.285)
11.153
(59.858)
11.352
310.
Post-tax profit (los s) from discontinued operations
-
-
(1)
12
83.035
322
330.
Profit for the period attributable to non-controlling interests
of which: effects of the purchase price allocation
Profit (loss) for the period attrib utab le to the shareholders of the Parent excluding the effects of
the PPA
(5.046)
2.139
(8.213)
2.302
(5.967)
2.503
(908)
2.395
(2.179)
2.622
(4.548)
2.514
204.500
83.529
(5.516)
115.503
84.830
59.530
340.
Profit for the period attributable to the shareholders of the Parent
187.101
64.609
(25.613)
95.660
63.949
38.125
Total im pact of the purchase price allocation on the incom e statem ent
(17.399)
(18.920)
(20.097)
(19.843)
(20.881)
(21.405)
50
Reclassified consolidated income statement net of the most significant non-recurring items
non-recurring items
1H 2011
Figures in thousands of euro
Net interest income (including the effects of PPA)
Dividends and similar income
Profits of equity-accounted investees
Net commission income
Net income (loss) from trading, hedging and disposal/repurchase activities and from
assets/liabilities at fair value
Other net operating income
non-recurring items
UBI Banca tax
Impairment
realignment in
Impact of IRAP
Impairment
loss on AFS
accordance with
adjustment for
loss on
Law No. 111/2011
securities and
deferred tax
Restructuring of
goodwill and
on the
and write off of
provisions
UBI Leasing
on other
investment in
deferred income recognised as at agent network
intangible
Intesa
tax assets/
31st December
assets
Sanpaolo
deferred IRAP tax
2010
assets
1H 2011
net of nonrecurring
items
1H 2010
A
(9.658)
18.237
428
2,3%
9.622
9.622
11.066
11.066
(1.444)
(13,0%)
586.577
586.577
607.557
607.557
(20.980)
(3,5%)
7.221
7.221
(5.886)
(5.886)
13.107
n.s.
1.603
44.519
41.262
40.305
4.214
10,5%
1.603
-
1.722.053
(14.333)
(0,8%)
33.233
(714.295)
23.649
3,3%
(384.565)
(28.275)
(7,4%)
(1,1%)
42.916
(747.528)
Other adm inistrative expenses
(356.290)
(356.290)
(384.565)
(141.020)
-
-
-
19.517
-
(957)
-
(121.503)
(122.815)
(122.815)
(1.312)
-
19.517
-
-
-
(1.215.737)
(1.254.908)
-
-
-
33.233
(1.221.675)
(5.938)
(0,5%)
470.863
-
19.517
-
-
1.603
491.983
468.102
-
(957)
-
33.233
500.378
(8.395)
(1,7%)
(263.522)
(321.704)
(321.704)
(58.182)
(18,1%)
(297)
(18.045)
813
1.110
n.s.
(11.044)
(6.622)
(6.622)
4.422
66,8%
1.333
(2.144)
2.001
(668)
(33,4%)
(263.522)
(19.592)
Net provisions for risks and charges
(14.555)
19.295
3.511
(124.973)
126.306
18.858
4.145
48.221
19.295
145.823
-
-
5.114
218.453
119.587
18.858
(957)
216.748
(976)
(2.030)
(352.841)
6.267
(1.407)
(134.239)
(94.143)
(79)
263
-
Profit for the period attributable to non-controlling interests
(13.259)
Profit for the period attributable to the shareholders of the Parent
251.710
ROE (annualised)
-
(957)
(0,9%)
(1.235.254)
Net impairment losses on other assets and liabilities
Post-tax profit from discontinued operations
A/B
1.050.774
1.723.010
Taxes on income for the period from continuing operations
A-B
B
18.237
(737.944)
Pre-tax profit from continuing operations before tax (including the effects of PPA)
% changes
1.050.774
1.707.720
Profits (losses) from disposal of equity investments and net impairment losses on
goodwill
Changes
18.665
(737.944)
Net impairment losses on loans
Leaving
incentives
1.041.116
1.706.117
Net operating income (including the effects of PPA)
1H 2010
net of nonrecurring
items
18.665
Operating income (including the effects of PPA)
Operating expenses (including the effects of PPA)
Net impairment
losses on
goodwill of
Gestioni
Lombarda
(Switzerland)
1.041.116
Personnel expense
Net impairment losses on property, equipment and investment property and intangible
assets (including the effects of PPA)
Impairment
Contribution of
losses on
depositary
investments in
banking
Intesa Sanpaolo
operations
and A2A
(925)
18.319
143.793
(352.841)
5.342
3.707
-
83.357
(83.357)
(14.184)
(6.727)
173
70.030
102.074
18.779
(83.878)
4.145
4.145
33.233
174.866
43.587
24,9%
(9.139)
(103.098)
31.141
30,2%
-
-
n.s.
(1.713)
(8.267)
5.917
71,6%
22.381
63.501
6.529
10,3%
4,3%
1,2%
1,9%
1,2%
Cost / Income ratio (including the effects of PPA)
72,4%
71,2%
72,8%
70,9%
Cost / Income ratio (excluding the effects of PPA)
69,3%
68,1%
69,4%
67,5%
51
Reconciliation schedule to 30th June 2011
RECLASSIFIED INCOME STATEMENT
Ite ms
Figures in thousands of euro
10.-20.
70.
Net interest income
mandatory
consolidated
financial
statements
80.+90.+
100.+110.
220.
180.a
Net commission income
1.041.116
18.665
9.622
9.622
585.510
Net income from trading, hedging and disposal/repurchase activities
and from assets/liabilities at fair value
Other net operating income
1.067
7.221
(76.332)
Operating income
1.769.344
(76.332)
Personnel expense
(737.944)
Net operating income
Net impairment losses on loans
130.b+c+d Net impairment losses on other assets and liabilities
Net provisions for risks and charges
Profits from disposal of equity investments and net impairment losses
on goodwill
Pre-tax profit from continuing operations
586.577
7.221
115.765
Operating expenses
240.+260.
+270.
reclassified
consolidated
financial
statements
(1.067)
-
Other administrative expenses
Net impairment losses on property, equipment and investment
200.+210. property and intangible assets
190.
depreciation for
profit of equityimprovements Consolidation
accounted
reclassification
to leased
investees
assets
tax
recoveries
18.665
180.b
130.a
1H 2011
1.042.183
Dividends and similar income
Profits of equity-accounted investees
40.-50.
reclassifications
1H 2011
(432.622)
3.483
9.622
42.916
3.483
-
1.706.117
(737.944)
76.332
(356.290)
(137.537)
(3.483)
(141.020)
(1.308.103)
76.332
-
(3.483)
-
461.241
-
9.622
-
-
(1.235.254)
470.863
(263.522)
(263.522)
(19.592)
(19.592)
(14.555)
(14.555)
(115.351)
48.221
(9.622)
-
(124.973)
-
-
-
48.221
290.
Taxes on income for the period from continuing operations
216.748
216.748
310.
Post-tax profit from discontinued operations
-
-
330.
Profit for the period attributable to non-controlling interests
(13.259)
(13.259)
340.
Profit for the period attributable to the shareholders of the Parent
251.710
-
-
-
-
251.710
Reconciliation schedule to 30th June 2010
RECLASSIFIED INCOME STATEMENT
Ite ms
Figures in thousands of euro
10.-20.
70.
Net interest income
Dividends and similar income
mandatory
consolidated
financial
statements
80.+90.+
100.+110.
Net commission income
Net (loss) from trading, hedging and disposal/repurchase activities
and from assets/liabilities at fair value
(2.629)
11.066
2.629
(5.886)
(76.054)
180.a
Personnel expense
(747.528)
180.b
Other administrative expenses
Net impairm ent losses on property, equipment and investment
property and intangible assets
(460.619)
Net operating income
130.b+c+d
190.
240.+260.
+270.
Net impairm ent losses on loans
Net impairm ent losses on other assets and liabilities
Net provisions for risks and charges
Profit (loss) from disposal of equity investments and net impairm ent
losses on goodwill
607.557
(5.886)
1.784.429
130.a
1.050.774
11.066
604.928
Operating income
Operating expenses
reclassified
consolidated
financial
statements
18.237
-
(76.054)
200.+210.
depreciation for
maximum
profit of equityoverdraf t
improvements
accounted
charge
to leased
investees
reclassification
assets
18.237
113.747
220.
Other net operating incom e
tax
recoveries
30.6.2010
1.053.403
Profits of equity-accounted investees
40.-50.
reclassifications
1H 2010
3.569
11.066
3.569
41.262
-
1.723.010
(747.528)
76.054
(384.565)
(119.246)
(3.569)
(122.815)
(1.327.393)
76.054
-
(3.569)
-
457.036
-
11.066
-
-
(1.254.908)
468.102
(321.704)
(321.704)
(18.045)
(18.045)
(6.622)
(6.622)
8.922
(11.066)
119.587
290.
Taxes on incom e for the period from continuing operations
(94.143)
310.
Post-tax profit from discontinued operations
83.357
83.357
330.
Profit for the period attributable to non-controlling interests
(6.727)
(6.727)
340.
Profit for the period attributable to the shareholders of the Parent
102.074
52
-
-
(2.144)
Pre-tax profit from continuing operations
-
-
119.587
(94.143)
-
-
-
-
102.074
Reconciliation schedule to 31st December 2010
RECLASSIFIED INCOME STATEMENT
Ite ms
Figures in thousands of euro
10.-20.
70.
Net interest income
mandatory
consolidated
financial
statements
80.+90.+
100.+110.
220.
Net commission income
Net income from trading, hedging and disposal/repurchase activities and from
assets/liabilities at fair value
180.a
Personnel expense
Other administrative expenses
Net impairment losses on property, equipment and investment property and
200.+210. intangible assets
180.b
Operating expenses
130.a
240.+260.
+270.
(4.072)
17.613
2.142.526
17.613
1.181.225
4.072
34.044
1.185.297
34.044
239.430
(153.846)
3.625.396
(153.846)
6.898
17.613
6.898
92.482
-
(1.451.584)
(923.590)
reclassified
consolidated
financial
statements
24.099
-
3.496.061
(1.451.584)
153.846
(769.744)
(240.338)
(6.898)
(247.236)
(2.615.512)
153.846
-
(6.898)
-
(2.468.564)
Net operating income
1.009.884
-
17.613
-
-
1.027.497
Net impairment losses on loans
(706.932)
(706.932)
130.b+c+d Net impairment losses on other assets and liabilities
190.
maximum
depreciation for
profit of equityimprovements
overdraft
accounted
to leased
charge
investees
assets
reclassification
24.099
Other net operating income
Operating income
tax
recoveries
FY 2010
2.146.598
Dividends and similar income
Profits of equity-accounted investees
40.-50.
reclassifications
FY 2010
(49.721)
(49.721)
Net provisions for risks and charges
(27.209)
(27.209)
Profits from disposal of equity investments and net impairment losses on
goodwill
108.313
Pre-tax profit from continuing operations
334.335
290.
Taxes on income for the year from continuing operations
310.
Post-tax profit from discontinued operations
330.
340.
(17.613)
-
-
90.700
-
-
(231.980)
334.335
(231.980)
83.368
83.368
Profit for the year attributable to non-controlling interests
(13.602)
(13.602)
Profit for the year attributable to the shareholders of the Parent
172.121
53
-
-
-
-
172.121
Notes to the reclassified consolidated financial statements
The mandatory financial statements have been prepared on the basis of Bank of Italy Circular No. 262 of 22nd
December 2005 and subsequent updates.
The contribution of depository banking operations was completed on 31st May 2010.
With regard to the statement of financial position, this involved the disposal of all the assets and liabilities associated
with these operations, and of direct funding in particular – the most significant component consisting of the accounts
for the management of the UBI Pramerica investment funds – which had been reclassified from 30th September 2009
and until 31st March 2010 within “liabilities associated with assets held for sale”.
With regard to the income statement, in addition to the gain resulting from that contribution, the first half of 2010
included the income and expense relating to assets held for sale, for the first five months only.
The following rules have been applied to the reclassified financial statements to allow a vision that is more consistent
with a management accounting style:
-
the tax recoveries recognised within item 220 of the mandatory financial statements (other net operating
income/expenses) were reclassified as a reduction in indirect taxes included within other administrative expenses;
the item profits (losses) of equity accounted investees includes the profits (losses) of equity accounted investees included
within item 240 in the mandatory financial statements;
the item net impairment losses on property, equipment and investment property and intangible assets includes items 200
and 210 in the mandatory financial statements and also the instalments relating to the depreciation of leasehold
improvements classified within item 220;
the item profits (losses) from the disposal of equity investments and impairment losses on goodwill includes the item 240,
net of profits (losses) of equity-accounted investees and also items 260 and 270 in the mandatory financial statements;
the item other net operating income/expense includes item 220, net of the reclassifications mentioned above.
The reconciliation of the items in the reclassified financial statements with the figures in the mandatory financial
statements, prepared on the basis of Bank of Italy Circular No. 262 of 22nd December 2005, has been facilitated, on the
one hand, with the insertion in the margin against each item of the corresponding number of the item in the mandatory
financial statements with which it is reconciled and, on the other hand, with the preparation of specific reconciliation
schedules.
The comments on the performance of the main statement of financial position and income statement items are made
on the basis of the reclassified financial statements and of the reclassified financial statements for the comparative
periods, and the tables providing details included in the subsequent sections of this financial report have also been
prepared on that same basis.
In order to facilitate analysis of the Group’s performance and in compliance with Consob Communication No.
DEM/6064293 of 28th July 2006, a special schedule has been included in the reclassified financial statements to
show the impact on earnings only of the principal non-recurring events and items – since the relative effects on
capital and cash flow, being closely linked, are not significant – which are summarised as follows:
First half 2011:
-
impairment loss on AFS securities and on the investment in Intesa Sanpaolo;
impairment loss on goodwill and on other intangible assets;
UBI Banca tax realignment in accordance with Decree Law No. 98/2011 converted with amendments into Law No.
111 of 15th July 2011 and write-off of deferred income tax assets/deferred IRAP tax assets;
impact of IRAP adjustment for deferred tax provisions recognised as at 31st December 2010;
expenses incurred for restructuring of UBI Leasing agent network;
First half 2010:
-
impairment losses on AFS investments in Intesa Sanpaolo and A2A;
contribution of the depository banking operations;
net impairment losses on goodwill of Gestioni Lombarda (Switzerland);
leaving incentives (trade union agreement of 20th May 2010).
54
The consolidated income statement
The income statement figures commented on are based on the reclassified consolidated financial
statements (the income statement and the quarterly income statements) contained in the preceding section
of this report and the tables furnishing details presented below are also based on those statements. The
notes that follow those reclassified financial statements may be consulted as may the reconciliation
schedules for a description of the reclassification.
In the first half of 2011, consolidated profit amounted to 251,7 million euro, a more than
twofold increase compared to 102,1 million euro achieved in the first half of 20101.
While on the one hand the Group benefited from tax relief pursuant to Law No. 111 of 15th
July 2011, on the other hand it was further penalised by the weak market context which
resulted in additional structural reductions in the value of some assets held in portfolio,
accompanied in the spring by new pressures and instability in the financial area.
As a result above all of the tax realignment for goodwill and other intangible assets, although
penalised by financial results and impairment losses for the period, the second quarter of the
year ended with a profit of 187,1 million euro, an increase compared to both the same period
in 2010 (63,9 million euro) and the first quarter of 2011 (64,6 million euro).
Difficulties in the economic and financial context did not diminish in the first six months of
the year and they continued to condition ordinary revenues: operating income – which
summarises the ordinary activities of the Bank – amounted to 1.706,1 million, a slight
decrease (-16,9 million euro) compared to 2010.
On a quarterly basis, ordinary income earned between 1st April and 30th June 2011
amounted to 843,6 million euro, a decrease compared to 862,5 million euro in the first three
months of 2011 (870,5 million in second quarter 2010), due to the still weak performance of
net interest income (-14 million euro) and also to the loss incurred on financial activities (-7,4
million euro).
Net interest income in the first half of 2011, which included the expense of the purchase price
allocation of 25,9 million euro, amounted to 1.041,1 million euro (-9,7 million euro compared
to the first half of 2010), the consequence, for each component of the item2, of the increased
impact of interest expense in line with market trends for interest rates3:
• the net balance of business with customers amounted to 928,9 million euro, (-53,3 million
euro), affected by the cost of institutional funding (partly due to putting forward issuances
for the entire year) and the effect of interest rates above all on medium and long term loans,
while the spread on business with customers remained fairly stable (+6 basis points for the
network banks and UBI Banca Lombarda Private Investment).
As concerns volumes of business, lending increased over twelve months (+2,6% for
consolidated loans), focused mainly on medium-to-long term maturities (the largest and
most lively component), while funding grew, especially for long term maturities (+5,2% the
year-on-year increase for bonds), although the average volumes are concentrated mainly on
short-term types of funding.
The item also includes 44,9 million euro (61,3 million euro) of differentials earned on fixed
rate bond hedges.
1 Non-recurring expenses were recognised in both periods, as a consequence of the purchase price allocation of the merger amounting
to 36,3 million euro in the first six months of 2011 and to 42,3 million euro in the first half of 2010.
If non-recurring items are not included then profit for the period was 70 million euro compared to 63,5 million euro in the
comparative first half. These items consisted of net income of 181,7 million euro, net of tax and non controlling interests (mainly the
result of the tax realignment, which, however, was partly offset by impairment losses for the period) and also in 2010 of net income
of 38,6 million euro, again net of tax and non controlling interests (mainly the result of the contribution of the depositary banking
operations).
2 The calculation of net balances was performed by allocating interest for hedging derivatives and financial liabilities held for trading
within the different areas of business (financial, with banks, with customers).
3 The progressive average one month Euribor rate for the two periods more than doubled, rising from 0,429% in the first half of 2010
to 1,045% in the first six months of 2011.
55
• financial assets held in the owned securities portfolio generated net interest income of 121
million euro, (+54,5 million euro), despite disinvestments in debt instruments over twelve
months amounting to 3,5 billion euro. However, total debt instruments (consisting mainly
of Italian government securities) continued to make an important contribution to net
interest income (185,4 million euro of interest income earned on available-for-sale assets).
Generally, however, these investments were impacted by the cost of hedging the fixed
interest rate bonds (differentials paid on derivatives);
• the net balance of interbank business showed net expense of 9,1 million euro, compared to
+2,2 million euro recorded in 2010. This reflected higher levels of average debt and the
relative cost in a context of growth in interest rates, especially on shorter term maturities.
Interest and similar income: composition
Debt
instruments
Figures in thousands of euro
1. Financial assets held for trading
1H 2011
1H 2010
14.060
772
-
14.832
-
-
-
-
-
185.416
-
-
185.416
128.345
2. Financial assets at fair value
3. Available-for-sale financial as sets
Other
transactions
Financing
12.607
3. Held-to-maturity investments
-
-
-
-
-
5. Loans to banks
-
22.079
30
22.109
12.805
6. Loans to customers
1.793
1.690.234
1.256
1.693.283
1.526.782
7. Hedging derivatives
-
-
-
-
-
8. Other assets
-
-
620
620
223
201.269
1.713.085
1.906
1.916.260
1.680.762
Total
Interest and similar expense: composition
Borrowings
Other
transactions
Securities
Figures in thousands of euro
1. Due to central banks
2. Due to banks
3. Due to customers
1H 2011
1H 2010
(3.103)
-
-
(3.103)
(28.111)
-
(24)
(28.135)
(7.785)
(170.995)
-
(3.106)
(174.101)
(86.656)
4. Securities issued
(2.788)
-
(635.192)
-
(635.192)
(519.184)
(6.728)
-
-
(6.728)
(4.708)
6. Financial liabilities at fair value
-
-
-
-
-
7. Other liabilities and provisions
-
-
(294)
(294)
(410)
(208.937)
(635.192)
(27.591)
(31.015)
(27.591)
(875.144)
(8.457)
(629.988)
1.041.116
1.050.774
5. Financial liabilities held for trading
8. Hedging derivatives
Total
Net interest income
In quarterly terms, partly due to the delay of some months in repricing income components,
net interest income fell by -14 million euro compared to the first quarter, caused by business
with customers and more specifically by the increase in interest paid on securities issued
(+34,2 million euro) and on borrowings (+21,6 million euro), while contributions from financial
assets and business on the interbank market remained unchanged.
Dividends of 18,7 million euro (18,2 million in the first half of 2010), relate mainly to securities
held in the AFS portfolio of the Parent, UBI Banca, and included 11,6 million euro relating to
the ordinary shares of Intesa Sanpaolo, which were remunerated by the same amount in the
corresponding period (0,08 euro per share).
Profits of equity-accounted investees 4 of 9,6 million euro, compared to 11,1 million euro in
2010, included significant contributions from: Aviva Vita (4,2 million euro compared to 4,7
million euro before), Lombarda Vita (3,1 million euro compared to 4,7 million euro), Aviva
Assicurazioni Vita (1,1 million euro compared to 1,4 million euro) and Arca SGR (1,1 million
euro compared to 0,9 million euro before).
4 The item consists of the profits of the companies recognised on the basis of the percentage interest held by the Group.
56
Commission income: composition
Commission expense: composition
1H 2011
Figures in thousands of euro
a) guarantees granted
1H 2010
1H 2011
Figures in thousands of euro
25.358
21.948
(469)
(411)
319.571
367.988
c) management and trading services:
(44.958)
(47.265)
18.767
21.285
1. trading in financial instruments
(8.730)
(8.528)
6.032
5.894
134.815
37.133
97.682
128.408
38.510
89.898
6.768
7.937
-
7.699
6. placement of securities
50.899
75.809
7. receipt and transmission of orders
8. advisory activities
8.1 on investments
8.2 on financial structure
20.176
1.940
1.940
-
24.176
3.380
3.278
102
9. distribution of third party services
80.174
93.400
26
26
39
39
61.167
18.981
66.684
26.677
c) management, trading and advisory services
1. trading in financial instruments
2. foreign exchange trading
3. portfolio management
3.1. individual
3.2. collective
4. custody and administration of securities
5. depository banking
9.1. portfolio management
9.1.1. individual
9.2. insurance products
9.3. other products
d) collection and payment services
75.329
71.108
f) services for factoring transactions
13.284
12.529
102.623
136.134
102.519
132.272
672.299
708.364
i) current account administration
j) other services
Total
a) guarantees received
1H 2010
2. foreign exchange trading
(25)
(196)
(2.781)
(2.781)
-
(2.936)
(2.347)
(589)
4. custody and administration of securities
(2.922)
(4.764)
5. placement of financial instruments
(2.355)
(2.136)
(28.145)
(21.033)
(19.262)
(28.705)
(30.441)
(22.690)
(85.722)
(100.807)
586.577
607.557
3. portfolio management
3.1. own
3.2. on behalf of third parties
6. financial instruments, products and services
distributed through indirect networks
d) collection and payment services
e) other services
Total
Net commission income
Net commission income amounted to 586,6 million euro (-21 million euro compared to the first
six months of 2010), the aggregate result of different trends.
On the one hand, after some years of continuous decreases, commissions on normal banking
operations started to make a partially positive contribution again: +13,6 million euro for
“Collection and payment services” (in relation to greater volumes of business), +7,3 million
euro for “Other services” (which include commitment fees) +0,8 million euro for factoring
transaction services and +0,1 million euro for “Current account administration”5.
On the other hand, management, trading and advisory services6 fell by 46,4 million euro to
268,6 million euro (accounting for 45,8% of total net commission income in the first half
compared to 51,8% before). The change is the aggregate result on the one hand of an increase
in portfolio managements (+6,6 million euro, the result of mutual fund business) and on the
other hand of falls in the following items: placement of securities (-25,1 million euro, in relation
to lower orders for “third party securities”), distribution of third party services
(-13,2 million euro, consisting of -5,5 million euro for insurance products and -7,7 million euro
for other products, significantly lower income from annual fees and smaller returns from third
party credit card issuers, now replaced by cards issued by the Group), depository banking
(-7,7 million euro, following the contribution of operations in May 2010) and receipt of orders
and advisory services (-5,4 million euro, as volatility on markets and the consequent prudential
approach of customers grew).
Compared to the first quarter of 2011, in which net commissions of 291,9 million euro were
recognised, income improved by 2,7 million euro, attributable mainly to traditional banking
services (partly due to the different timing of charges), but also to a realignment of
commissions on collective portfolio managements, although offset by poor performance by
trading and receipt of orders as well as placement of third party securities.
Volatility on financial markets increased again in the second quarter, with impacts not only on
the sovereign debt of some euro area countries, but also on share prices and risk premiums on
banking and corporate bonds.
The quarterly result for financial activities therefore amounted to -7,4 million euro, the
aggregate result of the following: -11,9 million from trading (penalised by equity
5 All the changes were calculated by subtracting commission expense from the respective commission income.
6 The amount consists of management, trading and advisory services net of the corresponding expense items and is calculated
excluding currency trading.
57
Net trading income (loss)
Gains
Profits from
trading
Losses
Losses from
trading
Net income
(loss) 1H 2011
Figures in thousands of euro
(A)
(B)
(C)
(D)
[(A+B)-(C+D)]
1. Financial assets held for trading
1.1 Debt instruments
29.455
7.074
96.224
17.380
(21.351)
(5.138)
(35.556)
(10.121)
68.772
9.195
(226.346)
(10.357)
2.847
3.432
(9.763)
(1.863)
(5.347)
(8.121)
45
4
(6)
-
43
440
-
-
-
-
-
-
19.489
75.408
(6.444)
(23.572)
64.881
(208.308)
1.667
808
3
-
(140)
(140)
-
1.530
668
1.507
1.896
-
-
-
-
-
(333)
859
3
-
-
862
(56)
13.899
154.016
154.805
(54.306)
1.2 Equity instruments
1.3 Units in O.I.C.R. (collective investment instruments)
1.4 Financing
1.5 Other
2. Financial liabilities held for trading
2.1 Debt instruments
2.2 Payables
2.3 Other
3. Financial assets and liabilities: exchange rate differences
X
4. Derivative instruments
4.1 Financial derivatives
- on deb t instruments and interest rates
X
X
X
1H 2010
431.719
431.719
1.010.937
1.010.937
(467.844)
(467.844)
(983.650)
(983.650)
(6.167)
(62.244)
(62.244)
408.363
1.001.033
(453.076)
(962.735)
(6.415)
596
3.963
(2.851)
(6.277)
(4.569)
6.743
X
X
(53.406)
201.862
- on equity instruments and share indices
- on currencies and gold
X
- other
22.760
5.941
(11.917)
(14.638)
2.146
506
-
-
-
-
-
(789)
462.841
1.107.164
(489.335)
(1.019.206)
1.891
(56.924)
4.2 Credit derivatives
Total
X
Net hedging income (loss)
1H 2011
Figures in thousands of euro
Net hedging income (loss)
1H 2010
(3.029)
49.649
Profit (loss) from disposal or repurchase
Profits
Net profit
1H 2011
Losses
Figures in thousands of euro
Financial assets
1. Loans to banks
-
2. Loans to customers
1.234
3. Available-for-sale financial assets
1H 2010
(792)
-
1.463
442
(1.843)
10.913
(370)
10.543
9.267
3.1 Deb t instruments
1.469
(370)
1.099
9.196
3.2 Equity instruments
6.946
-
6.946
71
3.3 Units in O.I.C.R (collective investment instruments).
3.4 Financing
2.498
-
-
2.498
-
-
4. Held-to-maturity investments
Total assets
-
-
-
-
12.147
(1.162)
10.985
8.887
Financial liabilities
1. Due to banks
-
-
-
-
2. Due to customers
-
-
-
-
3. Securities issued
3.221
(1.759)
1.462
(6.557)
Total liabilities
3.221
(1.759)
1.462
(6.557)
Total
15.368
(2.921)
12.447
2.330
Net loss on financial assets and liabilities at fair value
1H 2011
Figures in thousands of euro
Net loss on financial assets and liabilities at fair value
Net income (loss) from trading, hedging and disposal/repurchase activities and from
assets/liabilities at fair value
1H 2010
(4.088)
(941)
7.221
(5.886)
instruments and in particular by an impairment loss of 7,7 million euro on the private
equity investment in Medinvest International7, in view of the poor performance of its main
investee); +3 million euro from hedging (mainly the result of changes in the value of derivatives
on bonds); +5,2 million euro from the disposal of assets (including 1,9 million euro relating to
the sale of the last 434.559 shares of London Stock Exchange and 1,4 million euro from the
disposal of collective investment funds); -3,7 million euro from financial assets at fair value
(principally UBI Pramerica funds and a marginal quota of hedge funds).
The result for the second quarter (-7,4 million euro) compares with +14,6 million euro in the
first three months of the year, the result almost entirely of trading activity, especially in bonds,
due to the progressive completion of unwinding hedges. Furthermore, all the Lehman Brothers
7 The investment consists of a 19,57% stake held by UBI Banca. Medinvest International Sca (Luxembourg) is a merchant bank which
invests in companies and also provides financial advisory services to SMEs.
58
securities were sold during the first quarter (10 million euro nominal, measured at the
expected realisable value equal to 8,625% of the nominal amount) to realise a gain recognised
within item 80 “Trading” of 1,6 million euro (of which 938 thousand euro related to UBI Banca
International).
On a half year basis, net income from financial activities amounted to +7,2 million euro,
compared to -5,9 million euro in 2010. In detail:
• trading activities earned income of +1,9 million euro, compared to a loss of 56,9 million
euro of the corresponding period of 2010, due almost entirely (-48,9 million euro) to the
unwinding and ineffectiveness of hedging derivatives, used on a macro-hedge basis, for
fixed rate mortgages subject to either early repayment or renegotiation. It is a phenomenon
which had greater effects in the first half of 2010 and which is gradually reducing in 2011
as interest rates rise.
Net of that unwinding phenomenon (-11,1 million euro in the first half of 2011 and -48,9 in
the first half of 2010), normal activities generated the following: +14,6 million euro (-13,9
million euro) from debt instruments (inclusive of financial liabilities held for trading) and
the related derivative instruments; -9,9 million euro (-1,4 million euro) from equity
instruments and the related derivative instruments, (partly in relation to the impairment
loss on Medinvest International of 7,7 million euro already mentioned); +43 thousand euro
(+0,4 million euro) from investments in hedge funds; and +5,3 million euro (+7,4 million
euro) from foreign currency activities;
-
net loss from financial assets and liabilities at fair value – relating to the change in value of
investments by the Parent in UBI Pramerica funds and the now modest position in hedge
funds subscribed after 1st July 2007 – amounted to -4,1 million euro (-0,9 million in 2010);
-
net hedging loss – consisting of the change in the fair value of hedging derivatives and the
relative items hedged – stood at -3 million euro (+49,6 million euro in 20108);
-
net income from the disposal/repurchase of financial assets held for sale totalled 12,4
million euro and included the following: 6,8 million euro from the total disposal – performed
partly in February and then concluded on 20th May – of the investment in London Stock
Exchange (formerly Borsa Italiana); 2,5 million euro from the disposal of units in funds (of
which 2,2 million euro for UBI Pramerica SGR from the disposal of funds owned by the
former Capitalgest SGR); 1,1 million euro from debt instruments (of which 1,3 million euro
related to IW Bank); and 1,5 million euro from the repurchase of securities issued as part of
ordinary business with customers.
Net income in the first half of 2010 amounted to 2,3 million euro and included +9,2 million euro from
the disposal of available-for-sale debt instruments (of which 6,1 million euro related to IW Bank),
offset by -6,6 million euro from the repurchase of securities issued (as part of ordinary business with
customers).
Other net operating income increased by 42,9 million euro (+4%), as a result of growth in
revenues and in the item prior year Other net operating income and expense
income in particular (+6,5 million
1H 2011
1H 2010
euro), which was only partially offset Figures in thousands of euro
by an increase at the same time in Other operating income
78.212
71.685
prior year expenses (+3,6 million Recovery of expenses and other income on current accounts
6.761
7.232
Recovery of insurance prem iums
16.175
15.741
euro).
of taxes
76.332
76.054
The item “recovery of expenses and Recoveries
Rents and other income for property m anagement
4.058
3.997
other income on current accounts” Recovery of expenses on finance lease contracts
7.210
7.218
44.008
37.497
fell during the period by 0,5 million Other incom e and prior year incom e
(76.332)
(76.054)
euro, while “expenses for public Reclassification of "tax recoveries"
(35.296)
(30.423)
authority
treasury
contracts” Other operating expenses
Depreciation of leasehold im provements
(3.483)
(3.569)
increased (+1,3 million euro).
Costs relating to finance lease contracts
(3.261)
(3.374)
Expenses for public authority treasury contracts
(3.702)
(2.355)
Ordinary maintenance of investment properties
Other expenses and prior year expense
(28.333)
(24.694)
3.483
3.569
42.916
41.262
Reclassification of depreciation of leasehold improvem ents
Other net operating income and expense
8 This result should be interpreted in combination with the information reported on trading activity in the first half of 2010 because it
relates to a large extent to new hedges effective for IAS purposes on mortgages and loans;
59
Operating expenses decreased by 19,6 million euro (-1,6%) in the first half to 1.235,3 million
euro. Net of non-recurring items (19,5 million euro in the period, recognised within
impairment losses on property, equipment and investment property and intangible assets, and
33,2 million euro in the same period of 2010 recognised within personnel expense), expenses
stood at 1.215,7 million euro(-0,5%).
Personnel expense, 737,9 million euro,
fell by 9,6 million euro (of which -1,3 Personnel expense: composition
million euro for employees, -7,2 million
1H 2011
1H 2010
euro for workers on personnel leasing Figures in thousands of euro
contracts and -0,9 million euro for board
1) Employees
(723.830)
(725.134)
members). The change is the aggregate
a) Wages and salaries
(497.704)
(478.960)
result of the effects of the trade union
b) Social security charges
(135.415)
(125.645)
c) Post-employment benefits
(30.066)
(29.353)
agreement of 20th May 2010, which
d) Pension expense
(747)
(1.013)
resulted in a reduction in average
e) Provision for post-employment benefits
(4.874)
(4.273)
personnel numbers of approximately 750,
f) Pensions and similar obligations:
(1.569)
(1.897)
while increases consisted of ordinary
- defined contribution
(76)
(90)
- defined service
(1.493)
(1.807)
salary rises and provisions for the
g) Payments to external supplementary pension
variable component of salaries (company
plans:
(24.222)
(24.147)
bonus and incentive schemes) and for the
- defined contribution
(24.222)
(24.147)
- defined benefits
renewal of the national labour contract.
h)
Expenses
res
ulting
from
share
based
payments
The table shows the significant decrease
i) Other employee benefits
(29.233)
(59.846)
in the item “Other employee benefits” (- 2) Other personnel in service
(3.949)
(11.247)
30,6 million euro), in relation to the non
- Expenses for agency personnel on staff leas ing
contracts
(2.109)
(9.281)
recurring item (33,2 million euro of
Other expenses
(1.840)
(1.966)
leaving incentives) recognised in the 3) -Directors
and statutory auditors
(10.000)
(10.936)
second quarter of 2010 in connection 4) Expenses for retired personnel
(165)
(211)
with the signing of a trade union Total
(737.944)
(747.528)
agreement.
Other administrative expenses – 356,3 million euro – fell by 28,3 million euro. Current
expenses amounted to 328,7 million euro (–27,8 million euro) and, consistent with the
guidelines of the new Business Plan, included an item termed “projects” (because incurred in
relation to investments for business plan projects) amounting to 7,8 million euro.
Major action taken in the first half of the year to contain costs was focused on the following:
strategic and organisational advisory services (-5,7 million euro), professional IT services (-3,4
million euro, due partly to a change in the timing of expenses for strategic advisory services
and professional IT services linked to specific projects), telephone and data transmission
networks (-3,7 million euro), postal services (-3 million euro, partly in relation to lower
volumes of hardcopy communication), rent payable (-3 million euro, due in part to the
renegotiation of existing contracts), insurance premiums (-1,4 million euro) and credit recovery
expenses (-1 million).
A decrease of 6,5 million euro occurred within the item “Telephone and data transmission
expenses”, the result of lower costs incurred for a guarantee fund for credit card fraud using IT
systems (after the settlement of prior year positions with the banking consortium which
occurred in the second quarter of 2010).
On the other hand increases in current expenses regarded advertising (+1,6 million euro, for
the IW Bank television campaign) and expenses for corporate and legal affairs (+1,4 million
euro).
Net impairment losses on property, equipment and investment property and intangible assets
totalled 141 million euro and included a non recurring item of 19,5 million euro, relating to
the full impairment loss recognised on intangible assets connected with the investment in BY
YOU (partially disposed of in the second quarter), following the renegotiation of distribution
agreements. If the figure is normalised (121,5 million euro), no significant change was
recorded in impairment losses for the first half compared to the comparative period (-1,1%).
Given the basic stability of non IT depreciation and amortisation, the item is the aggregate
result of greater expense for new software introduced in 2010 and at the same time a
reduction in the depreciation of peripheral hardware (work stations).
60
On a quarterly basis, operating expenses
totalled 639,7 million euro, up from 595,5
million euro in the first quarter of 2011
(638 million in second quarter of 2010).
Again in quarterly terms, if the figure is
considered net of the impairment loss on
intangible assets relating to BY YOU
(620,2 million euro compared to 595,5
million euro in the previous quarter), the
change in total expense – affected also by
seasonal expenditure factors – amounting
to +24,7 million euro, is explained by the
following changes in the disaggregated
items:
-
growth in personnel expense (+8,5
million euro, to 373,2 million euro)
attributable to the recognition of
expenses relating to the accrual of
former public holidays (concentrated in
the second quarter this year) which will
be gradually recovered during the year
as leave is taken and to a provision of
3,8 million euro made by Banca
Carime, in relation to a refinement in
the calculation model for its internal
pension fund;
Other administrative expenses: composition
1H 2011
1H 2010
Figures in thousands of euro
A. Other administrative expenses
Rent payable
(328.743)
(36.531)
(356.548)
(39.630)
Professional and advisory services
Rentals of hardware, software and other assets
(35.849)
(19.433)
(44.106)
(18.737)
Maintenance of hardware, software and other assets
Tenancy of premises
(21.596)
(27.128)
(20.705)
(28.127)
Property maintenance
Counting, transport and management of valuables
(11.087)
(7.874)
(11.901)
(8.059)
(4.896)
(6.636)
(5.832)
(7.047)
Books and periodicals
Postal
Insurance premiums
(998)
(14.347)
(23.500)
(1.058)
(17.338)
(24.886)
Advertising
Entertainment expenses
(13.844)
(916)
(12.252)
(798)
Telephone and data transmission expenses
Services in outsourcing
(28.573)
(26.208)
(39.025)
(27.066)
Travel expenses
Credit recovery expenses
(11.743)
(20.029)
(11.538)
(21.075)
Forms, stationery and consumables
Transport and removals
(6.233)
(3.463)
(5.970)
(3.312)
Security
Other expenses
(4.808)
(3.051)
(5.083)
(3.003)
B. Indirect taxes
Indirect taxes and duties
Stamp duty
(27.547)
(18.799)
(64.555)
(28.017)
(20.310)
(64.231)
Municipal property tax
Other taxes
(4.423)
(16.102)
(4.583)
(14.947)
76.332
76.054
Membership fees
Information services and land registry searches
Reclassification of "tax recoveries"
-
(356.290)
(384.565)
an increase in other administrative Total
expenses (+14,1 million euro to 185,2 million euro), due to normal advertising campaigns
commenced in the second quarter (+4,3 million euro), credit recovery expenses (+2,7
million euro), corporate and legal advisory services (+2,2 million euro), professional IT
services (+1,5 million euro), strategic and organisational advisory services (+1,5 million
euro) and insurance premiums (+2 million euro). These changes are mainly due to the
different timing of the invoicing of the services received;
-
an increase in net impairment losses on property, equipment and investment property and
intangible assets (+2,1 million euro to 61,8 million euro), due to the amortisation of the new
software which came into use.
As a summary of overall performance, net operating income rose to 470,9 million euro,
compared to 468,1 in the first half of 2010.
On a quarterly basis, the result was 203,9 million euro (225 million euro normalised)
compared to 267 million euro in the first quarter of the year and to 232,5 million euro in the
second quarter of 2010 (264,8 million euro net of non-recurring items).
Net impairment losses on loans fell in the first half of 2011 to 263,5 million euro from 321,7
million euro before (-58,2 million euro), the aggregate result of opposing trends, including an
improvement by B@nca 24-7 (-29,8 million euro), as a result of the progressive realignment of
this product company’s credit quality with that of the Group.
Total net impairment losses as a percentage of net loans to customers fell as a consequence to
0,51% (annualised) from 0,64% (annualised) in the first half of 2010, compared to 0,69% for
the full year 2010.
In detail, collective net impairment losses were recognised in the period amounting to 24,6
million euro, a decrease of 7,6 million euro, against coverage of the performing loan portfolio of
the Group which was basically stable (0,54% compared to 0,53% twelve months before).
Specific impairment losses on loans fell at the same time to 238,9 million euro, an
improvement of 50,6 million euro of which 37 million euro relating to the network banks and
10 million euro to the product companies.
61
More specifically, the improvement by B@nca 24-7 should be underlined (-14,5 million euro),
although the impairment losses of the company included 13,7 million euro for impairment
relating to the company Ktesios9, of which eight million euro recognised in the second quarter
as the reclassification of a provision for risks and charges made in the fourth quarter of 2010
(a reclassification which involved the relative reversal of the provision for risks and charges).
Reversals of impairment losses were also recognised in the first half (excluding present value
discounts) amounting to 134,5 million euro (112,8 million euro in 2010).
Net impairment losses on loans: composition
Impairment losses/reversals of
impairment losses, net
Specific
Figures in thousands of euro
A. Loans to banks
B. Loans to customers
C. Total
1H 2011
Portfolio
(5)
(238.882)
(238.887)
Specific
(131)
(24.504)
(24.635)
(136)
(263.386)
(263.522)
Impairment losses/reversals of
impairment losses, net
Specific
Figures in thousands of euro
A. Loans to banks
B. Loans to customers
C. Total
1H 2010
Portfolio
1
(289.447)
(289.446)
Impairment losses/reversals of
impairment loss es, net
15
(142.892)
(142.877)
(134)
(15.137)
(15.271)
Impairment losses/reversals of
impairment loss es, net
Specific
(5)
(32.253)
(32.258)
2nd Quarter
2011
Portfolio
(4)
(321.700)
(321.704)
(2)
(184.078)
(184.080)
(119)
(158.029)
(158.148)
2nd Quarter
2010
Portfolio
(7)
(5.758)
(5.765)
(9)
(189.836)
(189.845)
In quarterly terms, net impairment losses increased by 52,8 million euro compared to 105,4
million euro in the first quarter (of which +46,9 million euro for specific impairment losses and
+5,9 million euro for portfolio impairment losses). This in reality incorporated seasonal
changes typical of the two periods, although with decidedly better performance than in the
second quarter of 2010.
Consequently the loss on net loans for the quarter (annualised) was 0,62% (0,41% in the first
quarter of 2011 and 0,76% in the second quarter of 2010).
Net impairment losses/reversals of impairment losses on loans: quarterly performance
Figures in
thousands of
euro
Specific
Portfolio
1st
Quarter
Specific
Portfolio
2nd
Quarter
Specific
Portfolio
3rd
Quarter
Specific
Portfolio
4th
Quarter
2011
(96.010)
(9.364)
(105.374)
(142.877)
(15.271)
(158.148)
2010
(105.366)
(26.493)
(131.859)
(184.080)
(5.765)
(189.845)
(124.200)
(9.811)
(134.011)
(217.327)
(33.890)
2009
(122.845)
(36.728)
(159.573)
(176.919)
(58.703)
(235.622)
(178.354)
(18.995)
(197.349)
(281.668)
9.001
(272.667)
2008
(64.552)
4.895
(59.657)
(85.136)
(8.163)
(93.299)
(77.484)
(25.384)
(102.868)
(219.512)
(90.887)
(310.399)
(251.217)
Net impairment losses on other assets and liabilities recognised in the first half amounted to
19,6 million euro. These included 19,3 million euro of non-recurring items consisting of
impairment losses on equity investments and AFS securities: 3,4 million euro in relation to
OICRs (collective investment funds) held by UBI Banca (of which 1,1 million relating to the
Polis property fund) and 15,9 million euro to the investment in Intesa Sanpaolo, with the loss
recognised on the basis of the official price as at 30th June 2011 (1,8075 euro)10.
Impairment losses were recognised in 2010 amounting to 18 million euro, including 18,9 million euro of
non-recurring items as follows: 1,7 million relating to the company A2A and 17,2 million euro to Intesa
Sanpaolo (official price as at 30th June 2010: 2,1735 euro).
9 The company operated as an agent for B@nca 24-7, providing services itself and through an associate company for the recovery of
credit. A shareholders’ meeting of the company, held on 14th April, decided to place it in voluntary liquidation. The signing of an
agreement is planned for September, which will involve the owners, the company and banks, designed to wind up the company
without losses.
10 The impairment loss was recognised on the basis of the new number of ordinary shares of Intesa Sanpaolo (186.458.028) held by the UBI Banca Group
following the increase in the share capital (when 41.435.116 new ordinary shares were subscribed at a price per share of 1,369 euro) and on the basis of the
difference that arose between the new carrying amount for the shares held in portfolio and their value at the end of the first half (337.022.886 euro).
62
Net provisions for risks and charges rose Net provisions for risks and charges
to 14,6 million euro (+7,9 million euro)
1H 2011
1H 2010
Figures in thousands of euro
and they related mainly to the following:
(213)
(680)
▪ B@nca 24-7, to meet the risk of the Net provisions for risks and charges for revocations
(135)
(329)
non recovery of prior year items in Provisions for personnel
Net provision for bonds in default
(215)
(383)
transit, for the operational risk Net provisions for litigation
(8.894)
(4.510)
(5.098)
(720)
connected with financial companies Other provisions for risks and charges
(14.555)
(6.622)
which disburse salary backed loans Total
and for convention fraud (8,8 million euro);
▪ UBI Leasing made provisions, as part of the reorganisation and restructuring of its network
of agents, to cover costs incurred for the termination of contracts with agents (3,5 million
euro, non-recurring, in addition to operational costs of 1,6 million euro, also non recurring);
▪ IW Bank, to close transit accounts which fail to balance, relating to the former legacy
platform. They were created in relation to follow-up work carried out after the IT migration
performed in February (2,1 million euro);
▪ Prestitalia, to bring provisions to meet supplementary customer indemnities for agent
redundancies, into line with Group standards (1,7 million euro).
Compared to the first quarter in which 10,4 million euro was recognised, the item net
provisions for risks and charges fell to 4,1 million euro, benefiting from reversals of eight
million euro, as a result of the already mentioned reclassification into net impairment losses
on loans performed by B@nca 24-7 in relation to the company Ktesios.
The income statement also contains an aggregate item, profits (losses) from the disposal of
equity investments and net impairment losses on goodwill, amounting to -125 million euro,
consisting of a non-recurring expense of 126,3 million euro arising from impairment tests
carried out in the second quarter of the year. These were impairment losses on goodwill which
adjusted the corresponding item 130 in the Statement of Financial Position, of which 74,1
million euro related to UBI Leasing, 34,7 million euro to Centrobanca and 17,5 million euro to
B@nca 24-711.
The item also includes profit earned (+2,3 million euro) from the partial disposal of the equity
investment in BY YOU in April 2011, although this was offset by the negative impact of its
removal from the consolidation (-4,1 million euro).
In the first half of 2010, the item amounted to -2,1 million euro and included a non recurring
impairment loss on the goodwill of Gestioni Lombarda Suisse (-4,1 million euro).
As a result of the performance described above, pre-tax profit from continuing operations
fell to 48,2 million euro from 119,6 million euro in the comparative period.
On a quarterly basis continuing operations before tax recorded a loss of 101,5 million euro
(+17,4 million in the same quarter of 2010), compared to +149,7 million euro earned in the
first three months of 2011.
In normalised terms, quarterly pre-tax profit amounted to 68,7 million euro (72,7 million in
the second quarter of 2010) compared to 149,7 million euro in the previous quarter.
Taxes on income for the period for continuing operations showed income in the first half,
amounting to 216,7 million euro, compared to tax expense of 94,1 million euro before.
The item included a non-recurring component of +352,8 million euro, relating to the Parent,
consisting of:
+377,8 million euro from the realignment of taxation on goodwill and other intangible
assets in accordance with Decree Law No. 98 of 6th July 2011, converted with amendments
into Law No. 111 of 15th July 2011. This legislation allowed, in accordance with the
principles of Law No. 2 of 28th January 200912, the recognition for tax purposes of higher
11 In detail, 18,5 million euro of the 34,7 million euro relating to Centrobanca was recognised for the impairment loss on the goodwill
of UBI Banca, while the 17,5 million euro relating to B@nca 24-7 was recognised entirely for the impairment loss on the goodwill of
UBI Banca. That goodwill, which had been recognised by the Parent (on 1st April 2007, the date of its formation), relates to the cash
generating units of the former BPU Banca Group which benefited from synergies arising from the business combination.
12 Some companies in the UBI Banca Group had taken advantage of the law mentioned in their 2008 income tax returns to obtain tax
relief on goodwill not acknowledged for tax purposes, recognised in their separate financial statements (UBI Banca for 569 million
euro, BRE for 68,6 million euro, BPA for 10,2 million euro and Carime for 23,3 million euro). The operation involved the recognition
of higher current taxation (substitute tax of 16%) in the consolidated financial statements amounting to 107,4 million euro and
63
values attributed to controlling interests acquired through extraordinary transactions. The
realignment is performed by the payment of a substitute tax of 16% (525,6 million euro to
be paid in November 2011), which allows tax to be deducted on the amortisation of the
amount subject to tax relief (3.285,3 million euro) at constant rates over ten years with
effect from 2012. Consequently, in the first half of 2011 deferred tax assets of 903,4 million
euro were recognised within item 290 of the income statement, corresponding to the future
benefit arising from the deduction of amortisation on the intangible assets subject to tax
relief;
-25 million euro from the reversal of deferred IRAP tax assets purposes already recognised
in the financial statements as at and for the year ended 31st December 2010. As a result of
the tax deductibility of the amortisation of the amount subject to tax relief mentioned
above, the Parent does not have sufficient taxable income for IRAP purposes to recover the
deferred tax assets which had been recognised, since IRAP is not included in the tax
consolidation. Consequently the conditions for its recognition were no longer met.
With the increase of 0,75% in the rate for IRAP introduced by Art 23, paragraph 5 of Decree
Law No. 98/2011 already mentioned, applicable to banks and financial companies and in
force with effect from the tax year 2011, changes arose in both current taxation (with the
recognition of greater current taxes for -8,1 million euro) and deferred taxation. The latter
amounted to -6,3 million euro (non-recurring), resulting from the adjustment of deferred tax
liabilities recognised in the financial statements as at and for the year ended 31st December
2010, which related principally to intangible assets arising from the purchase price allocation
for the merger of the former Banca Lombarda e Piemontese Group (and therefore classified as
non-recurring).
In normalised terms, taxes of 134,2 million euro were recognised in the first half (103,1 million
euro in 2010), to give a tax rate of 61,45% (up from 58,96% previously). Compared to the
theoretical tax rate (32,32%), the taxation levied was conditioned by the combined effect of
greater IRES (corporate income tax) and IRAP, due to:
- the non deductibility of impairment losses on equity investments, accounting for one
percentage point;
- the partial non deductibility of interest expense (4%), introduced by Law No. 133 of 6th
August 2008, accounting for five percentage points;
- the increase in the rate for IRAP (Art 23, paragraph 5 of Decree Law No. 98/2011, as
mentioned above), accounting for four percentage points;
- the total non deductibility for IRAP purposes of net impairment losses on loans and
personnel expense and the partial non deductibility of other administrative expenses and
depreciation and amortisation, accounting for 20 percentage points.
These impacts were only partly reduced (one percentage point) by the taxation on dividends
received and on the profit on the sale of the investment in London Stock Exchange.
On a quarterly basis taxes (normalised) fell to 57,3 million euro from 76,9 million euro in the
first three months of the year. The change mainly reflects the impact on taxation of the greater
impairment losses on deteriorated loans and the increase in the rate for IRAP.
The income statement for the first half of 2010 recorded post-tax profit from discontinued operations of
83,4 million euro (non-recurring), relating to the contribution by the Parent of the depository banking
operations to RBC Dexia Investor Services, performed in May 2010 (over one million euro, approximately,
related to BPCI, recognised within operating income and expense, resulting from the disposal at the same
time of correspondent banking contracts).
As a result of the performance already reported and as a result of the greater profits earned by
some banks and companies of the Group, profit for the period attributable to non-controlling
interests (inclusive of the effects of consolidation entries) rose to 13,3 million euro from 6,7
million euro in the first half of 2010.
lower taxation for deferred taxes of 216,8 million, with a net positive impact, net of non controlling interests, of 104,4 million euro
(the difference between the rate of the substitute tax and the ordinary tax rate).
64
The comments given in the sections that follow are based on items in the consolidated statement of
financial position contained in the reclassified consolidated financial statements on which the relative
tables furnishing details are also based.
The section “Consolidated companies: the principal figures” may be consulted for information on individual
banks and Group member companies.
General banking business with customers:
funding
Funding policies
Institutional funding on international markets increased in the first few months of 2011,
partly in relation to the positive reception of placements which led the Parent to move forward
issuances originally planned for subsequent periods.
The volumes placed, which totalled 3,5 billion euro, were well above maturities for the full year
(2,7 billion euro).
Although on the increase, non banking institutional funding nevertheless continues to
account for a small portion of total direct funding from customers, remaining constantly below
20%1.
In this context, just described, UBI Banca prioritised funding from covered bonds for longer
maturity placements, in relation to their lower cost compared to senior EMTN issues of the
same maturity, reserving the EMTN programme for issues with a maturity of up to three years.
In detail, two significant international placements of covered bonds were performed, assigned
AAA and Aaa ratings by Fitch and Moody’s:
- a first issuance in January of one billion euro with a ten year maturity (28th January 2021)
and a coupon of 5,25%;
- a second issuance in February of 750 million euro with a fifteen year maturity (22nd
February 2016) and a coupon of 4,5%.
Therefore, at the date of publishing this report, UBI Banca had seven issuances of covered
bonds outstanding for a total nominal amount of 5,5 billion euro.
The operations reported above form part of a programme for a maximum issuance of ten billion euro running
since July 2008 – a “multioriginator” programme which when fully underway will involve participation by ten
banks in the UBI Group.
The issue is backed by UBI Finance Srl in which a portfolio of residential mortgages was formed, which as
at 30th June 2011 totalled approximately 8,6 billion euro2, 29.6% of which originated by Banca Popolare di
Bergamo, 26,5% by Banco di Brescia, 14,4% by Banca Popolare Commercio e Industria, 8,3% by Banca
Regionale Europea, 7,3% by Banca Carime, 6,6% by Banca Popolare di Ancona, 3,4% by Banco di San
Giorgio, 2,4% by Banca di Valle Camonica and the remaining 1,5% by UBI Banca Private Investment.
The segregated portfolio has a high degree of fragmentation, because it includes more than 122 thousand
mortgages with average residual debt of 70,4 thousand euro, distributed with approximately 75% in North
Italy.
UBI Banca also issued significant senior notes under the EMTN PROGRAMME: a public
placement in February for 700 million euro with a two year maturity (28th February 2013) at a
fixed rate of 3,875%, followed in April by another public placement for one billion euro with a
1 18,8% at the end of June 2011 compared to 17,6% in December and 15,6% in June 2010 (20,3% if outstanding transactions with
the Cassa di Compensazione e Garanzia – a central counterparty clearing house – are excluded from total funding, compared to
19,3% in December and 17,4% in June 2010).
2 A further transfer of assets was performed in 2011 on 1st May for the covered bond programme in which Banca Popolare di Bergamo
and Banco di Brescia participated. They transferred mortgages to the special purpose entity UBI Finance which they already held in
their portfolios for a total of 1,4 billion euro of residual capital debt.
65
two and a half year maturity (21st October 2013) at a fixed rate of 4,125%. To complete the
information, a private placement was also made in May for 50 million euro (variable rate and
maturity of six years).
The continuation of difficult conditions on financial markets means that a resumption of
issuances in the remaining part of the year is highly unlikely, which confirms the validity of
the decision to put forward funding for the year to the first half of 2011.
In consideration of the positive performance of medium to long-term issuances, in the first half
of 2011 the Group reduced its total use of short term institutional funding (FRENCH
CERTIFICATES OF DEPOSIT and EURO COMMERCIAL PAPER, instruments listed in Luxembourg issued
by UBI Banca International), used as a “buffer” to optimise liquidity management and funding.
This sector of the market is also being affected by the heightened perception of sovereign debt
risk with a tendency to shorten the average maturity of new issues, which is in any case
always less than three months.
The Group continues to pay particular strategic attention to strengthening its funding from
ordinary customers, consistent with growth in lending and with a view to structural balance.
Bond issues in the first half of 2011 reached 5,4 billion euro (six billion euro at the date of this
report), against maturities during the year totalling 8,7 billion euro, including 4,6 billion euro
relating to the first half of 2011. Bonds maturing in the second half of 2011 (4,1 billion euro)
relate almost entirely to the network banks.
The positive performance reported above was also the result of issuances by the Parent. Over
the six month period UBI Banca placed four new listed bond issues for a total nominal value of
926 million euro, including 800 million euro with lower tier two subordination and a maturity
of seven years, destined specifically for network bank customers. These bonds partially
replaced maturing Centrobanca and network bank issues.
The Group is carefully assessing the possible impacts of recent tax measures on direct funding
policies and instruments, also in terms of future trends for indirect funding.
Total funding
Direct and indirect funding
(end of quarter totals in millions of euro)
200.000
180.000
160.000
140.000
120.000
100.000
80.000
60.000
40.000
Indirect funding
Direct funding
2Q 11
1Q 11
4Q 10
3Q 10
2Q 10
1Q 10
4Q 09
3Q 09
2Q 09
1Q 09
4Q 08
1Q 08
66
3Q 08
20.000
However a partial change in the composition
0
was observed compared to December:
although penalised by a contraction in
assets under management(-3,5%), indirect
funding increased while direct funding fell,
the result of opposing performance in the two quarters.
2Q 08
As a result of the positive performance of the
aggregate in the second quarter, at the end
of June 2011 total funding consisting of
total amounts administered on behalf of
customers had returned to the same levels
as at the end of 2010, at 184,7 billion euro,
a slight increase year-on-year (+1,6%),
attributable to positive performance by
direct funding (+2,7%). Indirect funding, on
the other hand, remained unchanged over
twelve months, although the assets under
management
component
performed
negatively (-3,3%) in 2011.
Total funding from customers
Figures in thousands of euro
Direct funding
30.6.2011
A
%
106.163.877
31.3.2011
B
%
Changes A/B
amount
57,5% 104.823.467
57,3%
1.340.410
%
31.12.2010
C
%
Changes A/C
amount
1,3% 106.760.045
57,8%
-596.168
%
30.6.2010
D
-0,6% 103.362.434
%
Changes A/D
amount
%
56,8%
2.801.443
2,7%
Indirect funding
78.565.784
42,5%
78.012.898
42,7%
552.886
0,7%
78.078.869
42,2%
486.915
0,6%
78.476.237
43,2%
89.547
0,1%
of which:
assets under
m anagem ent
41.122.089
22,3%
41.895.766
22,9%
-773.677
-1,8%
42.629.553
23,1%
-1.507.464
-3,5%
42.544.703
23,4%
-1.422.614
-3,3%
100,0%
1.893.296
2.890.990
1,6%
TOTAL FUNDING FROM
CUSTOMERS
184.729.661
100,0% 182.836.365
1,0% 184.838.914
100,0%
-109.253
-0,1% 181.838.671
100,0%
Direct funding
Direct funding exceeded 106 billion euro, with significant growth within the item over twelve
months by securities issued (+11,5%), which more than offset the decrease in amounts due to
customers (-4%), affected by business with the Cassa di Compensazione e Garanzia (C.C.G. - a
central counterparty clearing house).
The securities component also performed well on a half year basis (+3,9%), but was
insufficient to offset the contraction in amounts due to customers (-4,2%).
As can be seen from the table, the fall in amounts DUE TO CUSTOMERS is attributable primarily
to repurchase agreements with the C.C.G. (-3,4 billion euro year-on-year, -1,6 billion euro in
the first half), with which investments in Italian government securities are funded.
Net of that business, amounts due to customers increased compared to June 2010 (+1 billion
euro; +2,1%), but fell since December (-0,9 billion euro; -1,7%)3.
Compared to end-of-year figures, total funding decreased in terms of both repurchase
agreements (-0,5 billion euro), and current accounts and term deposits taken together (-0,7
billion euro), partly in relation to a change in the composition of investments by customers
into assets under custody.
SECURITIES ISSUED reached almost 50 billion euro to account for 47,1% of total direct funding
(50,7% if repurchase agreements with the C.C.G. are excluded).
Growth in this business (+5,1 billion euro over twelve months; +1,9 billion euro in the first
half) was driven by both institutional and other bond issuances, as reported in the previous
sub-section on funding policies.
As concerns the item “other certificates”, on the other hand, the performance year-on-year and
for the interim periods basically reflects the changes that occurred in short term institutional
funding (euro commercial paper and French certificates of deposit), for which the total
gradually diminished in 2011 in parallel with longer maturity institutional placements. It
should be considered that the item “other certificates” also comprises preference shares (0,5
billion euro) and certificates of deposit in yen (one billion euro, unchanged compared to June
2010, +0,2 billion euro in the first half).
-
* * *
Total institutional funding reached 20 billion euro, an increase of 3,9 billion euro year-on-year
and of 1,2 billion euro compared to December, the result in particular of changes in the longer
maturity component consisting of covered bonds (four issuances over twelve months for a total
nominal amount of 3,25 billion euro with maturities of between five and ten years: two
issuances in 2010 of one billion euro and 500 million euro respectively, followed by another
two issuances, the first for one billion euro and the second for 750 million euro, in 2011).
At the same time four placements were made over twelve months for a total nominal amount
2,75 billion euro under the EMTN programme, the first in 2010 for one billion euro and the
others for one billion euro, 700 million euro and 50 million respectively in 2011, against
maturities and redemptions of five note issues for approximately two billion euro nominal (four
issues for 1,68 billion euro matured in 2011).
3 Net of business with the Cassa di Compensazione e Garanzia, total direct funding increased by 6,7% compared to 30th June 2010
and by 1% compared to December 2010.
67
Direct funding from customers
30.6.2011
A
%
Figures in thousands of euro
Current accounts and deposits
31.12.2010
B
%
30.6.2010
C
%
%
Changes A/B
amount
%
44.697.229
42,1%
45.209.037
42,3%
Term deposits
1.104.611
1,0%
1.341.501
1,3%
Financing
9.266.869
8,7%
11.152.853
8.891.267
8,4%
11.011.766
10,3%
-2.120.499
-19,3%
12.131.020
11,7%
-3.239.753
-26,7%
7.575.488
7,1%
9.190.455
8,6%
-1.614.967
-17,6%
10.926.757
10,6%
-3.351.269
-30,7%
375.602
0,3%
141.087
0,1%
234.515 166,2%
108.157
0,1%
267.445 247,3%
0,8%
313.625 38,4%
- repurchase agreements
of which: repos with Cassa di Compensazione e Garanzia
- other
Other payables
-511.808
Changes A/C
amount
-1,1%
44.276.056
42,8%
421.173
1,0%
-236.890 -17,7%
1.201.679
1,2%
-97.068
-8,1%
10,4% -1.885.984 -16,9%
12.239.177
1.131.028
1,1%
962.766
168.262
17,5%
817.403
TOTAL AMOUNTS DUE TO CUSTOMERS (item 20 Liabilities)
56.199.737
52,9%
58.666.157
55,0% -2.466.420
-4,2%
58.534.315
56,6% -2.334.578
Bonds
45.167.471
42,6%
42.880.256
40,2%
2.287.215
5,3%
40.000.582
38,7%
4.796.669
4,5%
5.213.632
4,8%
-416.963
-8,0%
4.827.537
4,7%
49.964.140
47,1%
48.093.888
45,0% 1.870.252
3,9%
44.828.119
43,4% 5.136.021 11,5%
19.997.386
18,8%
18.797.662
17,6%
1.199.724
6,4%
16.081.402
15,6%
11.211.758
10,6%
11.158.751
10,5%
53.007
0,5%
10.485.346
10,2%
726.412
6,9%
2.257.749
2,1%
2.886.945
2,7%
-629.196
-21,8%
2.080.700
2,0%
177.049
8,5%
508.077
0,5%
521.256
0,5%
-13.179
-2,5%
658.683
0,6%
-150.606
-22,9%
5.555.153
5,2%
3.752.819
3,5%
1.802.334
48,0%
2.378.445
2,3%
Other certificates
TOTAL SECURITIES ISSUED (item 30 Liabilities)
1,0%
11,8% -2.972.308 -24,3%
-4,0%
5.166.889 12,9%
-30.868
-0,6%
of which:
securities subscribed by institutional customers:
- EMTN (*)
- French certificates of deposit
- Euro commercial paper
- Covered bonds
- Preference shares (**)
bonds subscribed by ordinary customers
- of the Group:
issued by UBI Banca
issued by the network banks
464.649
0,4%
477.891
0,4%
-13.242
-2,8%
478.228
28.069.692
26,5%
27.581.980
25,8%
487.712
1,8%
26.670.810
0,5%
3.915.984 24,4%
3.176.708 133,6%
-13.579
-2,8%
25,8% 1.398.882
5,2%
5.935.443
5,6%
5.035.176
4,7%
900.267
17,9%
3.908.028
3,8%
2.027.415
51,9%
17.899.416
16,9%
17.336.752
16,2%
562.664
3,2%
18.993.319
18,4%
-1.093.903
-5,8%
4.234.833
4,0%
5.210.052
4,9%
-975.219
-18,7%
3.769.463
3,6%
465.370
12,3%
-0,6% 103.362.434 100,0% 2.801.443
2,7%
- external distribution networks:
issued by Centrobanca
TOTAL DIRECT FUNDING
106.163.877 100,0% 106.760.045 100,0%
-596.168
Direct funding from customers
30.6.2011
A
%
31.3.2011
B
%
Figures in thousands of euro
Current accounts and deposits
44.697.229
42,1%
44.409.214
42,4%
288.015
0,6%
1.104.611
9.266.869
1,0%
8,7%
1.167.096
9.647.973
1,1%
9,2%
-62.485
-381.104
-5,4%
-4,0%
8.891.267
8,4%
9.274.100
8,8%
-382.833
-4,1%
7.575.488
7,1%
8.098.708
7,7%
-523.220
-6,5%
375.602
0,3%
373.873
0,4%
1.729
0,5%
1.131.028
1,1%
920.309
0,9%
210.719
22,9%
Term deposits
Financing
- repurchase agreements
of which: repos with Cassa di Compensazione e Garanzia
- other
Other payables
Changes A/B
amount
%
TOTAL AMOUNTS DUE TO CUSTOMERS (item 20 Liabilities)
56.199.737
52,9%
56.144.592
53,6%
55.145
0,1%
Bonds
Other certificates
45.167.471
4.796.669
42,6%
4,5%
43.976.679
4.702.196
42,0%
4,4%
1.190.792
94.473
2,7%
2,0%
TOTAL SECURITIES ISSUED (item 30 Liabilities)
49.964.140
47,1%
48.678.875
46,4% 1.285.265
2,6%
19.997.386
18,8%
19.583.663
18,7%
413.723
2,1%
11.211.758
10,6%
10.719.282
10,2%
492.476
4,6%
2.257.749
2,1%
2.181.343
2,1%
76.406
3,5%
-36,0%
of which:
securities subscribed by institutional customers:
- EMTN (*)
- French certificates of deposit
- Euro commercial paper
- Covered bonds
- Preference shares (**)
bonds subscribed by ordinary customers
- of the Group:
issued by UBI Banca
issued by the network banks
508.077
0,5%
793.299
0,8%
-285.222
5.555.153
5,2%
5.422.495
5,2%
132.658
2,4%
464.649
0,4%
467.244
0,4%
-2.595
-0,6%
28.069.692
26,5%
27.480.936
26,2%
588.756
2,1%
5.935.443
5,6%
4.997.526
4,8%
937.917
18,8%
17.899.416
16,9%
17.941.165
17,1%
-41.749
-0,2%
4.234.833
4,0%
4.542.245
4,3%
-307.412
-6,8%
106.163.877 100,0% 104.823.467 100,0% 1.340.410
1,3%
- external distribution networks:
issued by Centrobanca
TOTAL DIRECT FUNDING
The corresponding nominal amounts were 11.196 million euro (348 million euro subordinated) as at 30th June 2011, 10.700 million euro (502 million
euro subordinated) as at 31st March 2011, 11.128 million euro (502 million euro subordinated) as at 31st December 2010 and 10.478 million euro (852
million euro subordinated) as at 30th June 2010. The figures as at 30th June and as at 31st March 2011 do not include two private intragroup placements
for a total of 88 million euro (the first for 80 million euro, performed in January and the second for eight million euro, performed in March), eliminated in
the consolidation.
(**) The preference shares were issued for nominal amounts by BPB Capital Trust of 300 million euro, by Banca Lombarda Preferred Securities Trust of 155
million euro and by BPCI Capital Trust of 115 million euro. Following the public exchange offer concluded on 25th June 2009, the remaining nominal
amounts consisted of 227,436 million euro for the BPB Capital Trust issue, 124,636 million euro for that of Banca Lombarda Preferred Securities Trust
and 101,388 million euro for the BPCI Capital Trust issue.
(*)
68
In detail, institutional funding was composed as follows as at 30th June 2011:
EMTN securities (Euro Medium Term Notes) amounting to 11,2 billion (348 million euro
subordinated), issued by UBI Banca as part of a programme for a maximum issuance of 15 billion
euro. All the securities are admitted for trading on the London stock exchange with the sole exception
of those which had been issued by the former Banca Lombarda e Piemontese listed in Luxembourg;
covered bonds amounting to 5,5 billion euro, consisting of seven issues by UBI Banca for a total
nominal amount of 5,5 billion euro as part of a programme for a maximum issuance of ten billion
euro. The securities are listed in London;
French certificates of deposit amounting to 2,3 billion euro, issued by the UBI Banca International as
part of a programme for a maximum issuance of five billion euro, listed in Luxembourg;
euro commercial paper amounting to 0,5 billion euro, issued by UBI Banca International as part of a
programme for a maximum issuance of six billion euro, listed in Luxembourg;
preference shares amounting to 0,5 billion euro consisting of the securities still in issue following the
public exchange offer of June 2009. These consist of three issues, two listed in Luxembourg and one
in London.
Bond funding from ordinary customers exceeded 28 billion euro (+1,4 billion euro year-onyear, +0,5 billion euro in the first half of 2011).
Nine new listed placements were made by the Parent destined to network bank customers for
a total nominal amount of 2,3 billion euro, including three issuances for a total of 1,2 billion
euro, with a lower tier two subordination clause (four issued in the first half of 2011 for a total
of 0,9 billion euro, including two, for 0,8 billion euro, with lower tier two subordination). The
relative total in issue therefore rose to 5,9 billion euro, a year-on-year increase of two billion
euro, which offset the net reduction in the issues of the network banks (-1,1 billion euro). At
the same time Centrobanca funding through non captive channels also recorded growth (+0,5
billion euro).
Growth in the item on a half year basis, however, was more modest (+0,5 billion euro),
attributable to the maturity of Centrobanca bonds (-1 billion euro) which was more than offset
by net issuances of the network banks (+0,6 billion euro) and UBI Banca (+0,9 billion euro).
Maturities for bonds outstanding as at 30th June 2011
No minal amo unts in millio ns o f euro
UBI BANCA*
of which: EMTN
Covered bonds
Network banks
Other banks in the Group
TOTAL
3rd Quarter
2011
4th Quarter
2011
2012
2013
2014
Subsequent
years
800
265
4.927
4.470
3.582
9.091
23.135
800
233
4.070
3.392
2.311
390
11.196
-
11
23
23
23
5.420
5.500
2.406
1.571
4.842
4.651
2.149
2.158
17.777
Total
31
78
186
85
453
3.643
4.476
3.237
1.914
9.955
9.206
6.184
14.892
45.388
* The EMTN subordinated bonds were placed on the date of the expiration or the exercise of a call option.
As concerns market segmentation of customers, management accounting figures for end of
period volumes of direct funding for the network banks and for UBI Banca Private Investment
show that at the end of June, 76,7% of funding from customers came from the retail market
(75,8% in June 2010), 10,8% from the private banking market (11,6%) and 9,3% from the
corporate market (9,1%), while the remaining 3,2% was attributable to institutional customers
(3,5%).
In terms of annual changes, those same management accounting figures show a reduction of
7,5% for the private market and of 9,1% for institutional customers compared to +0,9% for the
corporate market, driven by the large corporate segment (+13,2%), against basic stability for
the retail market within which the positive trend for funding from private individuals (+0,6%)
more than offset the fall in funding from small businesses (-2,1%).
69
Listed securities
Bonds listed on the MOT (electronic bond market)
ISIN number
Book value as at
Nominal amount
of issue
30.6.2011
31.12.2010
IT0001197083
Centrobanca zero coupon 1998-2018
L. 800 billion
€ 150.707.901
€ 154.479.568
IT0001257333
Centrobanca 1998/2014 reverse floater
L. 300 billion
€ 112.212.076
€ 120.874.797
IT0001267381
Centrobanca 1998/2018 reverse floater capped
L. 320 billion
€ 121.440.378
€ 120.200.696
IT0001278941
Centrobanca 1998/2013 equity linked coupon
L. 100 billion
€ 43.225.336
€ 42.938.603
IT0001300992
Centrobanca 1999/2019 step dow n indicizzato al tasso sw ap euro 10 anni
€ 170.000.000
€ 114.994.003
€ 117.297.396
€ 53.656.336
IT0001312708
Centrobanca 1999/2019 step dow n eurostability bond
€ 60.000.000
€ 54.739.712
IT0003834832
Centrobanca 2005/2013 inflazione Italia con leva
€ 16.280.000
€ 9.481.466
€ 9.779.702
IT0003210074
Banca Popolare di Bergamo-CV 2001/2012 a tasso variabile subordinato ibrido - upper tier 2
€ 250.000.000
€ 250.173.458
€ 250.161.359
IT0004424435
UBI subordinato low er tier 2 a tasso variabile con ammortamento 28.11.2008-2015
€ 599.399.000
€ 593.429.163
€ 591.835.287
IT0004457187
UBI subordinato low er tier 2 a tasso variabile con ammortamento 13.3.2009-2016
€ 211.992.000
€ 209.437.882
€ 208.919.029
IT0004457070
UBI subordinato low er tier 2 fix to float con rimborso anticipato 13.3.2009-2019
€ 370.000.000
€ 375.985.896
€ 381.946.207
IT0004497050
UBI subordinato low er tier 2 fix to float con rimborso anticipato 30.6.2009-2019
€ 365.000.000
€ 361.794.737
€ 366.190.696
IT0004497068
UBI subordinato low er tier 2 a tasso variabile con ammortamento 30.6.2009-2016
€ 156.837.000
€ 154.522.498
€ 154.171.471
IT0004497043
Unione di Banche Italiane Scpa tasso misto 30.6.2009-2014
€ 219.990.000
€ 216.576.235
€ 216.057.808
IT0004496557
Unione di Banche Italiane Scpa tasso misto 7.7.2009-2014
€ 200.000.000
€ 199.441.080
€ 199.346.886
IT0004517139
Unione di Banche Italiane Scpa tasso misto 4.9.2009-2013
€ 84.991.000
€ 84.812.793
€ 84.972.035
IT0004572860
UBI subordinato low er tier 2 a tasso variabile con ammortamento 23.2.2010-2017
€ 152.587.000
€ 150.905.252
€ 150.468.611
IT0004572878
UBI subordinato low er tier 2 a tasso fisso con ammortamento 23.2.2010-2017
€ 300.000.000
€ 298.709.165
€ 301.729.015
IT0004624547
Unione di Banche Italiane Scpa tasso fisso 2,30% 31.8.2010-2012 Welcome Edition
€ 278.646.000
€ 280.756.928
€ 278.908.777
IT0004632680
Unione di Banche Italiane Scpa tasso fisso 2,15% 28.9.2010-2012
€ 450.000.000
€ 446.541.045
€ 448.161.421
IT0004626617
IW Bank Obbligazioni agosto 2015 con opzione di tipo call asiatica (*)
€ 1.140.000
€ 1.053.328
€ 1.115.514
IT0004642382
IW Bank Obbligazioni ottobre 2015 con opzione di tipo call asiatica - II tranche (*)
€ 1.045.000
€ 949.411
€ 944.346
IT0004645963
UBI subordinato low er tier 2 a tasso fisso con ammortamento 5.11.2010-2017
€ 400.000.000
€ 378.588.478
€ 380.788.851
IT0004651656
Unione di Banche Italiane Scpa tasso fisso 2,30% 2.12.2010-2013 Welcome Edition
IT0004652043
Unione di Banche Italiane Scpa tasso misto 2.12.2010-2014
IT0004710981
Unione di Banche Italiane Scpa tasso fisso 3,65% 20.5.2011-20.11.2013
€ 5.787.000
€ 5.819.459
IT0004713654
Unione di Banche Italiane Scpa tasso misto 10.6.2011-2015
€ 120.000.000
€ 118.296.841
-
IT0004718489
UBI subordinato low er tier 2 tasso fisso con ammortamento 5,50% 16.6.2011-2018 Welcome Edition
€ 400.000.000
€ 390.468.728
-
IT0004723489
UBI subordinato low er tier 2 tasso fisso con ammortamento 5,40% 30.6.2011-2018
€ 400.000.000
€ 390.671.269
-
Nominal amount
of issue
30.6.2011
31.12.2010
€ 639.145.872
€ 671.465.922
€ 652.263.445
Nominal amount
of issue
30.6.2011
€ 81.322.000
€ 80.926.350
€ 80.835.676
€ 174.973.000
€ 173.766.254
€ 173.588.891
-
(*) The figures relate to bonds o utstanding, that is net o f repurchases by the co mpany itself.
Convertible bonds listed on the MAT (electronic share market)
ISIN number
IT0004506868
UBI 2009/2013 convertibile con facoltà di rimborso in azioni
Covered bonds listed on the London Stock Exchange
ISIN number
Book value as at
Book value as at
31.12.2010
IT0004533896
Covered Bonds due 23 september 2016 3,625% guaranteed by UBI Finance Srl
€ 1.000.000.000
€ 1.032.439.038 € 1.028.582.677
IT0004558794
Covered Bonds due 16 december 2019 4% guaranteed by UBI Finance Srl
€ 1.000.000.000
€ 1.019.879.299 € 1.011.116.295
IT0004599491
Covered Bonds due 30 april 2022 floating rate amortising guaranteed by UBI Finance Srl
IT0004619109
Covered Bonds due 15 september 2017 3,375% guaranteed by UBI Finance Srl
IT0004649700
Covered Bonds due 18 october 2015 3,125% guaranteed by UBI Finance Srl
IT0004682305
IT0004692346
€ 250.000.000
€ 249.816.975
€ 1.000.000.000
€ 980.150.259
€ 971.231.814
€ 500.000.000
€ 494.854.358
€ 491.344.223
Covered Bonds due 28 january 2021 5,25% guaranteed by UBI Finance Srl
€ 1.000.000.000
€ 1.013.750.426
-
Covered Bonds due 22 february 2016 4,5% guaranteed by UBI Finance Srl
€ 750.000.000
€ 764.263.027
-
Nominal amount
of issue
30.6.2011
31.12.2010
Innovative equity instruments (preference shares) listed on international markets
ISIN number
€ 250.543.687
Book value as at
Luxem bourg
XS0123998394
Non-cumulative Fixed/Floating Rate Guaranteed Trust Preferred Securities
Banca Popolare di Bergamo Capital Trust
€ 300.000.000
€ 237.994.691
€ 244.086.637
XS0131512450
9% Non-cumulative Guaranteed Trust Preferred Securities
Banca Popolare Commercio e Industria Capital Trust
€ 115.000.000
€ 101.474.930
€ 106.899.082
London
Step-Up Non-voting Non-cumulative Trust Preferred Securities
XS0108805564 Banca Lombarda Preferred Securities Trust
€ 155.000.000
€ 125.179.664
€ 126.904.945
The list does not include the numerous EMTN issues listed in London and in Luxembourg, nor the securities generated by securitisations performed for
internal purposes by B@nca 24-7, UBI Leasing, Banco di Brescia and Banca Popolare di Bergamo, all listed on the Dublin stock exchange, nor the issues of
French certificates of deposit and of euro commercial paper, listed in Luxembourg.
70
Geographical distribution of direct funding from
customers by region of location of the branch
(excluding repurchase agreements and bonds)
Percentage of total
30.6.2011
Lombardy
Latium
58,98%
8,33%
(*)
31.12.2010
59,07%
8,70%
30.6.2010
58,42%
8,59%
Piedmont
Apulia
8,14%
4,73%
7,62%
4,78%
8,09%
4,62%
Calabria
4,65%
4,77%
4,68%
Marches
Campania
3,95%
3,89%
4,01%
3,88%
4,32%
3,98%
Liguria
Emilia Romagna
2,64%
1,11%
2,49%
0,98%
2,45%
1,07%
Veneto
Basilicata
1,08%
0,94%
1,14%
1,01%
1,13%
1,00%
Umbria
0,52%
0,49%
0,53%
Abruzzo
Friuli Venezia Giulia
0,42%
0,23%
0,41%
0,25%
0,42%
0,27%
Molise
Tuscany
0,19%
0,17%
0,20%
0,16%
0,21%
0,16%
Trentino Alto Adige
Valle d'Aosta
0,02%
0,01%
0,02%
0,01%
0,03%
0,02%
Sardinia
0,00%
0,01%
0,01%
100,00%
100,00%
100,00%
TOTAL
North
- North West
- North East
Central
South
72,2%
71,6%
71,5%
69,8%
69,2%
69,0%
2,4%
2,4%
2,5%
13,0%
14,8%
13,3%
15,1%
13,6%
14,9%
Finally, the table, “Geographical distribution of
direct funding from customers by region of
location of the branch” gives the geographical
distribution of traditional funding (consisting of
current accounts, savings deposits and
certificates of deposit) in Italy.
The figures confirm the significant geographical
concentration of the Group in the northern
regions of Italy (slightly up from 71,6% in
December to 72,2%), while the percentage in
central regions and the south was 13% and
14,8% respectively (13,3% and 15,1% in
December).
(*) The aggregates relate to banks only.
71
Indirect funding and assets under management
Indirect funding from ordinary customers
Figures in thousands of euro
30.6.2011
A
%
31.12.2010
B
30.6.2010
C
Changes A/B
%
amount
%
Changes A/C
%
amount
%
Assets under custody
37.443.695
47,7%
35.449.316
45,4%
1.994.379
5,6%
35.931.534
45,8%
1.512.161
4,2%
Assets under management
Customer portfolio management
41.122.089
8.644.679
52,3%
11,0%
42.629.553
9.112.815
54,6%
11,7%
-1.507.464
-3,5%
54,2%
11,6%
-1.422.614
-3,3%
-468.109
-5,1%
-468.136
-5,1%
42.544.703
9.112.788
1.942.923
2,5%
2.065.172
2,6%
-122.249
-5,9%
2.084.420
2,7%
-141.497
-6,8%
Mutual investment funds and SICAV’s
20.343.057
25,9%
21.189.141
27,1%
-846.084
-4,0%
20.846.848
26,6%
-503.791
-2,4%
Insurance policies and pension funds
12.134.353
15,4%
12.327.597
15,8%
-193.244
-1,6%
12.585.067
16,0%
-450.714
-3,6%
11.930.419
15,2%
12.124.734
15,5%
-194.315
-1,6%
12.389.146
15,8%
-458.727
-3,7%
78.565.784
100,0%
78.078.869
100,0%
486.915
78.476.237
100,0%
89.547
0,1%
of which: fund based instruments
of which: Insurance policies
TOTAL INDIRECT FUNDING FROM
ORDINARY CUSTOMERS
INDIRECT
FUNDING
from
ordinary customers of the
Group as at 30th June 2011
amounted to 78,6 billion
euro, practically unchanged
year-on-year, but slightly up
compared to both December
and March.
0,6%
Indirect funding from ordinary customers
30.6.2011
%
31.3.2011
Changes
%
amount
Figures in thousands of euro
%
Assets under custody
37.443.695
47,7%
36.117.132
46,3%
1.326.563
3,7%
Assets under management
Customer portfolio management
41.122.089
8.644.679
52,3%
11,0%
41.895.766
8.833.147
53,7%
11,3%
-773.677
-1,8%
-188.468
-2,1%
of which: fund based instruments
Mutual investment funds and SICAV’s
Insurance policies and pension funds
of which: Insurance policies
TOTAL INDIRECT FUNDING FROM
ORDINARY CUSTOMERS
1.942.923
2,5%
2.019.006
2,6%
-76.083
-3,8%
20.343.057
12.134.353
25,9%
15,4%
20.796.966
12.265.653
26,7%
15,7%
-453.909
-131.300
-2,2%
-1,1%
11.930.419
15,2%
12.053.737
15,5%
-123.318
-1,0%
78.565.784
100,0%
78.012.898
100,0%
552.886
0,7%
Assets under custody
2Q 11
1Q 11
4Q 10
3Q 10
2Q 10
1Q 10
4Q 09
3Q 09
2Q 09
1Q 09
4Q 08
3Q 08
2Q 08
The year-on-year performance of indirect 20.000
funding (+89,5 million euro; +0,1%)
recorded an increase in assets under 10.000
custody (+1,51 billion euro; +4,2%),
0
which more or less offset the decrease in
all
components
of
assets
under
management (-1,42 billion euro; -3,3%),
which had fallen to 52,3% of the total at
the end of June (54,2% twelve months before).
1Q 08
As can be seen from the
graph, the total has continued to fluctuate between 78 billion euro and 80 billion euro since
the third quarter of 2009, a reflection of
the uncertainties on financial markets in
Indirect funding
(end of quarter totals in millions of euro
that same period. However, it must be
stated that in the second quarter of 2011, 90.000
the downward trend in progress since the 80.000
last quarter of 2010 came to a halt as a
result of growth in assets under custody. 70.000
On the other hand, in that same period of
60.000
time total assets under management were
affected even more heavily by pressures 50.000
resulting from worsening of the sovereign
debt crisis, as they reached the lowest 40.000
level since the third quarter of 2009.
30.000
Assets under management
On the other hand, the aggregate recovered in a more definitive way between March and June
(+0,6 billion euro; +0,7%), as a result of assets under custody (+1,3 billion euro compared to
the first quarter; +3,7%), while assets under management recorded a general decrease (-0,77
billion euro; -1,8%), over half of which was due to performance by mutual investment funds
and SICAV’s (-0,45 billion euro; -2,2%).
-
***
72
In terms of assets under management net of Group funds (collective instruments and
customer portfolio managements), at the end of the first quarter the UBI Banca Group was
positioned in seventh place among operators in the sector4 (sixth among Italian groups) with
assets amounting to 27,4 billion euro – including approximately three billion euro relating to
institutional customers – and a decrease in market share to 2,97% (3,19% in December 2010).
***
-
As concerns mutual investment funds and Sicav’s, the Assogestioni (national association of
asset management companies) figures5 for the asset management companies of the UBI Banca
Group showed the following for the first half of 2011:
− negative net inflows of approximately 979 million euro, amounting to -4,7% of assets under
management at the end of 2010 (the net outflow for the sector nationally was 10 billion
euro, amounting to -2,2% of assets under management at the end of December);
− net assets under management of 20 billion euro, which places the Group in fifth place
among operators in the sector with a market share of 4,52%, slightly down compared to
4,56% at the end of 20106;
− a greater reduction in assets under management (-995 million euro; -4,7%) than that for
the sector nationally (-18,7 billion euro; -4,1%).
Fund assets
UBI Banca Group
30.6.2011
A
Figures in millions of euro
Equities
Balanced
2.876
1.455
31.12.2010
B
%
14,4%
7,3%
2.734
1.512
10.793
54,0%
3.779
18,9%
Flexible
710
Hedge funds
355
19.968
Bond
Monetary funds
TOTAL (a)
Sector nationally
30.6.2011
A (*)
Figures in millions of euro
%
Changes A/B
amount
%
30.6.2010
C
%
13,1%
7,2%
142
-57
5,2%
-3,8%
2.370
1.519
11.784
56,2%
-991
-8,4%
11.096
52,7%
3.715
17,7%
64
1,7%
4.721
22,4%
3,6%
840
4,0%
-130
-15,5%
963
4,6%
1,8%
378
1,8%
-23
-6,1%
379
1,8%
100,0%
20.963
100,0%
-995
-4,7%
21.048
100,0%
31.12.2010
B
%
%
Changes A/B
amount
%
11,3%
7,2%
30.6.2010
C
%
Equities
102.255
23,2%
107.423
23,4%
-5.168
-4,8%
93.081
20,9%
Balanced
Bond
21.091
182.360
4,8%
41,3%
21.305
189.212
4,6%
41,1%
-214
-6.852
-1,0%
-3,6%
19.672
184.977
4,4%
41,4%
Monetary funds
54.025
12,2%
62.333
13,5%
-8.308
-13,3%
72.759
16,3%
Flexible
70.279
15,9%
67.087
14,6%
3.192
4,8%
62.035
13,9%
Hedge funds
11.353
2,6%
12.689
2,8%
-1.336
-10,5%
13.757
3,1%
441.363
100,0%
460.049
100,0%
-18.686
-4,1%
446.281
100,0%
TOTAL (b)
MARKET SHARE OF THE UBI BANCA GROUP (a)/(b)
4,52%
4,56%
4,72%
(*) Partially estimated data.
The summary figures in the table confirm the prudential approach of UBI Group customers in
the first half of 2011:
− a constantly higher percentage of lower risk funds (monetary funds and bonds), accounting
as a whole for 72,9% of the total compared to 53,5% for the Assogestioni sample. More
specifically, while monetary funds performed positively (+1,7%), against the trend for the
sector (-13,3%), the contraction in the bond component (-8,4%) was greater (-3,6% for the
sector);
− a trend for flexible funds (-15,5%) in the opposite direction to that of the sample (+4,8%);
4 Source: Assogestioni (national association of asset management companies), “Map of assets under management (collective
instruments and customer portfolio management)” for the first quarter of 2011. Following the formation of Am Holding, a new asset
management company created from an alliance between Anima Sgr and Prima Sgr, two asset management companies which,
considered singly, have lower assets under management and market share than those of the UBI Banca Group, the latter moved
down a place in the Assogestioni classification.
5 Trend Mensile sui Fondi Aperti – June 2011.
6 The UBI Group moved down two places compared to December, due firstly to the formation of Am Holding already mentioned, while
in May the Mediolanum Group moved up to hold fourth position in the Assogestioni classification.
73
− a percentage for equity funds constantly lower than that for the sector (14,4% compared to
23,2%), despite the trend in the opposite direction which characterised the investment
decisions made by customers.
***
As already reported in the previous section, “Significant events in the first half of 2011”, UBI
Pramerica SGR and Tages Capital SGR signed an agreement for a strategic alliance in June
which, amongst other things, involves the contribution to Tages of alternative fund
management operations consisting of three hedge funds (Capitalgest Alternative Conservative,
Capitalgest Alternative Dynamic and Capitalgest Alternative Equity Hedge).
***
Finally, in May UBI Pramerica SGR Spa received the Italy 2011 Morningstar Fund Awards
Prize as the “best bond company – third place”. Also, the UBI Pramerica Obbligazioni Globali
fund was awarded a “Morningstar top selection” certificate in the international bond category.
74
General banking business with customers:
lending
Performance of the loan portfolio
Composition of loans to customers
30.6.2011
A
Figures in thousands of euro
Current account overdrafts
14.376.063
Reverse repurchase agreements
Mortgage loans and other
medium-to-long term financing
301.106
55.539.184
of which
deteriorated
31.12.2010
14,0% 1.119.458
13.723.925
%
0,3%
B
-
323.597
54,0% 2.865.360
53.943.966
%
of which
deteriorated
13,5% 1.067.391
Changes A/B
amount
%
30.6.2010
C
%
of which
deteriorated
Changes A/C
amount
%
652.138
4,8%
14.644.948
14,6%
998.509
-268.885
-1,8%
-
-22.491
-7,0%
206.469
0,2%
-
94.637
45,8%
53,0% 2.512.658
1.595.218
3,0%
52.032.412
52,0% 2.219.759
3.506.772
6,7%
-4,7%
0,3%
Credit cards, personal loans and
salary backed loans
6.127.139
6,0%
183.280
6.344.773
6,2%
144.009
-217.634
-3,4%
6.431.496
6,4%
129.240
-304.357
Finance leases
9.463.728
9,2%
840.756
9.590.800
9,4%
769.279
-127.072
-1,3%
9.608.998
9,6%
695.177
-145.270
-1,5%
Factoring
2.847.727
2,8%
31.236
2.988.697
2,9%
16.946
-140.970
-4,7%
2.477.323
2,5%
22.662
370.404
15,0%
Other transactions
14.079.631
13,7%
760.614
14.846.953
14,6%
749.846
-767.322
-5,2%
14.653.071
14,6%
740.582
-573.440
-3,9%
Debt instruments:
39.889
0,0%
1.000
52.118
0,1%
1.000
-12.229
-23,5%
103.029
0,1%
1.000
-63.140
-61,3%
- structured instruments
25.456
0,0%
-
3.409
0,0%
-
22.047
646,7%
30.055
0,0%
-
-4.599
-15,3%
- other debt instruments
14.433
0,0%
1.000
48.709
0,1%
1.000
-34.276
-70,4%
72.974
0,1%
1.000
-58.541
-80,2%
102.774.467 100,0% 5.801.704 101.814.829 100,0% 5.261.129
959.638
0,9% 100.157.746 100,0% 4.806.929
2.616.721
2,6%
TOTAL
At
the
end
of
June
Composition of loans to customers
LENDING TO CUSTOMERS
of which
of which
Changes
%
%
30.6.2011
31.3.2011
deteriorated
deteriorated
amount
%
had
reached
102,8 Figures in thousands of euro
billion euro, an increase
Current account overdrafts
14.376.063 14,0% 1.119.458
14.205.131 13,8% 1.113.044
170.932
1,2%
of 2,6% compared to Reverse repurchase agreements
301.106
0,3%
534.824
0,5%
-233.718 -43,7%
100,2 billion euro twelve Mortgage loans and other mediumto-long term financing
55.539.184 54,0% 2.865.360
54.681.050 53,2% 2.776.149
858.134
1,6%
months before (+2,6 Credit cards, personal loans and
6.127.139
6,0%
6.331.904
6,2%
-204.765
-3,2%
183.280
153.563
billion
euro),
while salary backed loans
Finance leases
9.463.728
9,2%
9.532.093
9,3%
-68.365
-0,7%
840.756
826.645
growth of +4,9% was Factoring
2.847.727
2,8%
2.838.751
2,8%
8.976
0,3%
31.236
21.069
14.079.631 13,7%
14.530.332 14,2%
-450.701
-3,1%
760.614
752.994
reported by the Bank of Other transactions
instruments:
39.889
0,0%
48.359
0,0%
-8.470 -17,5%
1.000
1.000
Italy for the sector Debt
- structured instruments
25.456
0,0%
3.798
0,0%
21.658
570,2%
nationally1.
- other debt instruments
14.433
0,0%
1.000
44.561
0,0%
1.000
-30.128
-67,6%
The trend which reflects TOTAL
72.023
0,1%
102.774.467 100,0% 5.801.704 102.702.444 100,0% 5.644.464
a tendency common to
Italian banks on average was affected by a slowdown since the beginning of the year (+0,9%
compared to +2% for the sector), which became worse in the second quarter 2011 (+0,1%
compared to +0,8% for the sector).
The year-on-year trend was driven mainly by the network banks (+3,5%), which account for
approximately 68% of the consolidated total, while the change was more modest for the
product companies (+0,3%), affected by credit reclassification processes. It must also be
considered that approximately 40% of the business of the latter comes from “captive”
customers of the network banks (+4,9% annually).
Details for the types of lending over twelve months are as follows:
• mortgages and other medium-to-long term lending exceeded 55,5 billion euro (+3,5 billion
euro; +6,7%), which again confirmed them as the driving factor for total growth in the
portfolio, accounting for 54% of the total. On the basis of the new commercial agreement
signed between UBI Banca and BY YOU Spa on 27th April 2011, activities for the
disbursement of new mortgages were transferred directly to the network banks, leaving
B@nca 24-7 with responsibility for existing mortgages only, which at the end of the first
1 Loans to the private sector.
75
•
•
•
•
2Q 11
1Q 11
4Q 10
3Q 10
2Q 10
1Q 10
4Q 09
3Q 09
2Q 09
1Q 09
4Q 08
3Q 08
2Q 08
1Q 08
•
half of 2011 amounted to almost 5,2
Annual rate of change in lending to the private sector(*)
10%
billion euro, an increase year-on-year
9%
of 263,2 million euro (+5,3%).
Sector
On the basis of management
8%
nationally
UBI Group
accounting figures for performing
7%
residential mortgages only granted by
6%
the network banks, Centrobanca and
5%
B@nca 24-7, the total at the end of
4%
June had reached 22,5 billion euro
3%
(21,8 billion euro in December);
2%
the various types of consumer credit
1%
fell to 6,1 billion euro (-0,3 billion
0%
euro; ;-4,7%). The reduction reflected
-1%
primarily the trend for B@nca 24-7,
-2%
which reduced its total outstanding
-3%
loans over twelve months (-0,3 billion
euro to 5,8 billion euro; -4,9%),
(*) Excluding loans to public administrations
partly on the basis of precise
company policies pursued to improve credit quality. In detail, the fall in special purpose
loans (-0,3 billion euro; -39%) brokered by SILF and in other personal loans (-0,3 billion
euro; -12,9%), originated mainly by the Group network banks were only partially offset by
the good performance of salary backed loans originated by external distribution networks
and amounting to 3,1 billion euro (+0,3 billion euro; +11,8%) and accounting for 53% of the
total;
finance leases decreased slightly to 9,5 billion euro (-0,1 billion euro; -1,5%), partly in
relation to the reorganisation and revision of lending processes undertaken by UBI Leasing
in 2010, in parallel with a change of focus in commercial activity towards the captive
market;
factoring loans granted by UBI Factor increased to 2,8 billion euro (+0,4 billion euro;
+15%), an increase entirely attributable to the second half of 2010;
reverse repurchase agreements amounted to 301,1 million euro (+45,8%), reflecting the
ordinary business of the Parent with Cassa di Compensazione e Garanzia (CCG – a central
counterparty clearing house);
other types of short term lending also fell generally: current account overdrafts stood at
14,4 billion euro (-0,3 billion euro; -1,8%), although they recorded a recovery in the first six
months of 2011 as demand for short term credit by businesses emerged in the sector
nationally. On the other hand, after the increase recorded in the second half of 2010 “other
transactions” (loans for advances, portfolio, import/export transactions, very short term
lending, etc.), fell since January to 14,1 billion euro at the end of the first half of 2011 (-0,6
billion euro over twelve months; -3,9%).
An analysis of the consolidated portfolio on a half year basis shows an increase in loans (+1
billion euro compared to December), driven primarily by “mortgages and medium to long-term
loans” (+1,6 billion euro) and also by a recovery in current account overdrafts (+0,7 billion
euro), while all the other types of lending recorded negative trends. These included “other
transactions” which fell by 0,8 billion euro, of which 0,3 billion euro attributable to the
decrease in the exposure of the Parent to the CCG due to lower deposits requested for
participation in the “New MIC” (collateralised interbank market) segment of the market.
Consumer credit (-0,2 billion euro) on the other hand was affected by a slowdown in salary
backed loans granted by B@nca 24-7 and originated by external distribution networks, due
mainly to the disposal of external networks by Prestitalia (Ktesios Spa).
Similar trends emerged in the second quarter which recorded a reversal of the tendency for
factoring transactions, after the decrease that occurred between January and March.
76
In terms of maturities, at the end of June the UBI Group portfolio consisted of medium to longterm loans totalling 71,2 billion euro (+4,4% year-on-year), accounting for almost 70% of the
total, and of short term loans amounting to 31,6 billion euro (-1,2% year-on-year).
At the end of the first half, the ratio of lending to funding was 96,8%, practically unchanged
compared to twelve months before (96,9%), but up compared to December (95,4%). The
change reflects on the one hand more or less equal growth in the two aggregates over twelve
months and on the other, opposing trends in the first half of 2011. If funding is considered net
of repurchase agreements with the CCG, the ratio is 104,2% (108,4% and 104,4% in June and
December 2010 respectively).
As concerns customer market segmentation, end of period management accounting figures for
lending by network banks and by UBI Banca Private Investment show that at the end of the
June 55,3% was destined to the retail market (54,1% in June 2010), 42,9% to the corporate
market (44,3%) and 1,4% to the private banking market (1,1%), while the remaining 0,4% was
to institutional customers (0,5%).
In terms of annual trends, those same management figures show an improvement for the retail
market (+5,1%) – driven by the small business segment (+6,1%) and by the private individuals
segment (+4,3%) – and a slight decrease for the corporate market (-0,4%), due to a decrease for
the large corporate segment (-9,7%) only partially offset by an increase in the core segment
(+5,3%).
Distribution of loans by economic sector
(management accounting figures for performing loans of the network banks and Centrobanca)
30.6.2011
Manufacturing and service com panies
(no n financial co mpanies and pro ducer ho useho lds)
30.9.2010
30.6.2010
62,8%
62,8%
63,1%
62,9%
17,2%
10,0%
9,1%
4,4%
2,5%
2,2%
2,0%
1,9%
1,7%
1,5%
17,0%
10,3%
9,2%
3,3%
2,5%
2,2%
2,0%
2,0%
1,6%
1,5%
17,7%
9,9%
9,3%
3,6%
2,4%
2,1%
2,0%
1,6%
1,6%
1,4%
17,3%
10,0%
9,6%
3,7%
2,5%
2,0%
2,0%
1,8%
1,8%
1,5%
17,4%
9,8%
9,5%
4,2%
2,4%
2,0%
2,0%
1,8%
1,7%
1,5%
30,0%
3,6%
29,5%
4,5%
29,4%
4,6%
28,9%
4,6%
28,7%
4,7%
1,0%
2,2%
0,8%
2,4%
0,9%
2,3%
0,9%
2,5%
1,0%
2,7%
100,0%
100,0%
100,0%
100,0%
100,0%
Public adm inistrations
Other (not-for-profit institutions and the rest of the world)
TOTAL
31.12.2010
63,2%
of which: other services destined for sale
Commerce, recovery and repair services
Construction and public works
Energy products
Metal products, excluding machines and means of transport
Agricultural, forestry and fishery products
Hotels and restaurants
Foodstuffs, beverages and tobacco products
Textiles, leather and footwear, clothing
Agricultural and industrial machinery
Cons um er households
Financial com panies
31.3.2011
Again on the basis of management figures, the results given in the table for network banks
and Centrobanca only – an aggregate which represents approximately 70% of gross loans –
showed the following in June 2011:
− 93,2% of outstanding loans is destined to manufacturing and service companies and
consumer households (91,6% twelve months before), which confirms the traditional
vocation of the Group to support communities in its markets;
− as concerns the distribution by sector of lending to non financial companies and to
producer households, “other services destined for sale” and “commercial services, recoveries
and repairs” continued to account for the largest percentage of the total (27,2%), partly
because of their heterogeneity.
From the viewpoint of concentration, a
generalised improvement was recorded
compared to all the previous periods.
Concentration of risk
(largest customers or groups as a percentage of total loans and guarantees )
Customers or Groups
30.6.2011
31.3.2011
31.12.2010 30.9.2010
30.6.2010
Largest 10
Largest 20
4,0%
6,5%
4,1%
6,7%
4,1%
6,8%
4,1%
6,7%
4,6%
7,2%
Largest 30
8,2%
8,5%
8,5%
8,4%
8,7%
Largest 40
9,3%
9,5%
9,6%
9,5%
9,9%
Largest 50
10,3%
10,4%
10,5%
10,4%
10,9%
77
As concerns “large exposures”, on the other Large exposures
hand, on the basis of the new regulations in
30.6.2011
31.3.2011
31.12.2010
force since December2, as at 30th June 2011 Figures in thousands of euro
the UBI Banca Group had five positions
Number of positions
5
6
5
which exceeded 10% of the supervisory
Exposure
22.775.787
25.270.584
22.164.767
Positions at risk
4.486.718
4.668.018
1.782.442
capital, for a total of 22,8 billion euro:
• 8,3 billion euro to the CCG, in relation
to repurchase agreement transactions by the Parent;
• 7,2 billion euro to the Ministry of the Treasury, mainly in relation to investments in
government securities by the Parent;
• 1,3 billion euro of authorised credit to a major corporate counterparties, as part of ordinary
lending business with customers (two such counterparties were reported both in March and
December3);
• 6 billion euro to two major banking groups (two in March and one in December) in relation
to repurchase agreements entered into by the Parent to compensate for the temporary
shortage of assets for refinancing with the ECB
to customers by
(due to the assignment of a second rating for Geographical distribution of loans
region of location of the branch (*)
internal securitisations).
The actual exposure of the UBI Group after
weightings are applied, amounts to a total of 4,5
billion euro, a significant increase compared to
December, (but slightly down compared to March),
due mainly to the full weighting applied to the
repurchase agreements entered into by the Parent
with two major banking groups.
The percentage of consolidated supervisory capital
is below the limit of 25% set for banking groups for
each of the five exposures.
Details are given in the table “geographical
distribution of loans to customers by region of
location of the branch” of the geographical
distribution of lending in Italy.
The total share of loans to northern regions
amounted to 82,8% of the total, (of which 78,9% to
the North-West), slightly less than in December,
while that of central regions was 9,7% (9,3% in
December). The remaining 7,5% was to southern
regions (7,3% at the end of 2010).
Percentage of total
Lombardy
Piedm ont
Latium
Marches
Liguria
30.6.2011
31.12.2010
30.6.2010
69,29%
6,75%
5,00%
3,80%
2,83%
70,37%
6,39%
4,62%
3,84%
2,82%
70,36%
6,43%
4,68%
3,82%
2,77%
Campania
Apulia
Emilia Romagna
Calabria
Veneto
2,25%
2,10%
2,06%
1,90%
1,63%
2,17%
2,07%
1,97%
1,82%
1,59%
2,11%
2,09%
1,93%
1,84%
1,63%
Umbria
Abruzzo
Basilicata
Friuli Venezia Giulia
Molise
0,67%
0,61%
0,41%
0,25%
0,23%
0,64%
0,61%
0,40%
0,24%
0,24%
0,62%
0,60%
0,41%
0,26%
0,25%
Tuscany
Valle d'Aosta
Trentino Alto Adige
Sardinia
0,21%
0,01%
0,00%
0,00%
0,20%
0,01%
0,00%
0,00%
0,19%
0,01%
0,00%
0,00%
100,00%
100,00%
100,00%
Total
North
- North West
- North East
Central
South
82,8%
83,4%
83,4%
78,9%
79,6%
79,6%
3,9%
3,8%
3,8%
9,7%
7,5%
9,3%
7,3%
9,3%
7,3%
(*) The aggregates relate to banks only.
***
With regard to lending to small to medium-sized enterprises (SMEs), again in the first half of 2011 the
banks in the Group paid particular attention to relations with guarantee bodies and trade associations,
which represent an important link in relations with local economies.
With a view to facilitating access to credit by SMEs in the current difficult economic environment, use of
public sector instruments to mitigate credit risk continued at the same time. These included the Guarantee
Fund for SMEs (pursuant to Law No. 662/1996) and the fund managed by the SGFA (Fund Management
Company for the agricultural and food sectors which manages processing for the issue of direct and
subsidiary guarantees) for farms. More specifically, with regard to the Guarantee Fund for SMEs – with
which Banca Carime and BPA are among the principal banking partners in the sector in terms of business –
the convention agreement signed with the associate company SF Consulting, controlled by the Finservice
Group began to produce effects during the first half of 2011. It involves that company providing support and
advice to account managers for the completion of the formalities required for the grant of guarantees by the
fund.
2 The Bank of Italy Circular No. 263 “New regulations for the prudential supervision of banks” of 27th December 2010.
3 The failure to report one of the counterparties present in the comparative periods is a result of the increase in the supervisory capital
of the UBI Group that occurred in the second quarter. The nominal amount of the exposure at the end of June was therefore less
than 10% of that capital, the threshold beyond which the obligation to report applies.
78
New medium to long-term loans disbursed in the first half in relation to 11.351 transactions guaranteed by
guarantee bodies and guarantee funds, amounted to 920 million euro (+19,5% compared to the same period
in 2010). Total outstanding medium to long-term loans therefore rose to 3.722 million euro (+7% compared
to the end of 2010), while short term loans increased to approximately 625 million euro.
The broad range of existing products was updated to incorporate the main initiatives organised in cooperation with local public institutions (chambers of commerce, regions and provinces).
During the first quarter the product range and the rates and charges applied to credit lines granted was
subject to revision in order to bring them into line both with the increase in the cost of funding and credit
risk and also with the actual “value” of the guarantees acquired, depending on whether they are acceptable
or not in terms of less absorption of capital.
In the light of the growing Group business with guarantee bodies through conventions and of the corporate
changes in progress (company reorganisations and mergers between guarantee bodies and the
transformation of some guarantee bodies into intermediaries supervised by the Bank of Italy), a new
service model was adopted in the first six months of the year designed to standardise the processes for
stipulating conventions, for assessing guarantee bodies and monitoring operations for all the banks in the
Group.
***
As concerns loans using funds from the European Investment Bank (EIB) granted by the UBI Group in
implementation of the agreement signed in July 20104, the main change introduced concerns an increase in
the range of potential borrowers. In order to increase the possibility of use and the range of eligible projects,
in June the right to use the available funds was granted, in agreement with the EIB, (up to a maximum of
30% of the funding limit) for initiatives conducted also by medium-sized companies (with a workforce of
between 250 e 2.999 employees) in addition to Italian SMEs.
From the start of the initiative until 31st July 2011, 165 loans were granted while, again on the latter date,
185 loan applications were being processed or approved.
Intensification of the activity performed in the first half of 2011 and the broadening of the range of target
company beneficiaries should lead to the complete use of the first tranche of the loan by the end of
September (with loans disbursed or being disbursed). On the other hand, the start of the second tranche
will be completed by the end of August with the objective of signing agreements and introducing the relative
loan product by the end of 2011.
Again with regard to initiatives with the EIB, as part of the management of the credit line of 100 million
euro granted by the Marches Region to BPA, the maximum amount of the investments for appropriate
development programmes by SMES that may be financed was raised from 1,6 million euro to 2,5 million
euro in May.
“Anti Crisis” measures to support small to medium-sized enterprises
and families
The banks in the Group made further efforts in the first half of 2011 with their commitment,
commenced in 2009 and continued in 2010, to support SMEs (as defined by the EU) and
families in their respective local markets, in relation to action undertaken both locally and
nationally.
With regard to SMEs, at national level on 21st March 2011 the UBI Banca Group had already
adhered to the “Agreement on Loans to Small to medium-size enterprises” signed on 16th
February by the Italian Banking Association, the Ministry of the Economy and Finance and by
other business associations.
4 The agreement involves a funding contract which represents the first tranche of an EIB loan to UBI Banca, already approved, for a
total amount of 500 million euro.
79
This agreement involves the following:
− the extension from 31st January until 31st July 2011 of the time limit for the presentation of
applications to defer loans to banks by SMEs that have not already taken advantage of a
similar benefit, under the same conditions as the Joint Announcement5, i.e. the “Agreement
for the deferment of the debts of small to medium-sized enterprises to banks” (and
subsequent additions, including that of 23rd December 2009);
− the extension of the repayment schedules for medium to long-term loans which have
benefited from the deferral under the Joint Announcement by up to a maximum of two
years (three years for secured loans). As part of that extension, SMEs which apply may use
instruments to manage interest rate risk that are directly linked to the loans in question.
By signing that agreement, the UBI Banca Group is committed to maintaining the
contractually agreed interest rate if, amongst the other conditions, the extension benefits from
the intervention by the Cassa Deposito e Prestiti (CDP – state controlled fund and deposit
institution) with the use of funds made available by that institution. For that purpose, on 31st
May 2011 the UBI Group signed a special convention agreement with the CDP, on the basis of
that previously signed by the Italian Banking Association, which involves the assignment of a
maximum funds of 54,5 million euro.
The grant of loans by banks in the Group to strengthen the capital of SMEs, again in
accordance with the Agreement, continued.
From the start of the initiative until the end of June, the Group had received more than 16
thousand applications to benefit from the intervention provided under the “Joint
Announcement” – principally attributable to medium to long-term loans – for a total of 4,7
billion euro, of which over 14 thousand had already been processed for a quota of suspended
repayment on capital amounting to 582 million euro. Almost all the applications meeting the
requirements for eligibility were accepted.
In accordance with the “Agreement on Loans to Small to medium-size enterprises”, again as at
30th June 2011, over 100 applications to extend repayment schedules on loans had been
received, for which the remaining debt, in terms of the principal, amounted to 69 million euro.
Over 60 of the applications had already been approved on remaining principal of over 35
million euro.
Again as part of “anti crisis” action taken, the Group continued with the granting of loans to
SMEs at advantageous conditions through the use of funding from the Cassa Deposito e
Prestiti (CDP – state controlled fund and deposit institution) resulting from post office savings.
In detail, with regard to the first convention agreement of May 2009, which involved the
assignment to the banking sector of three billion euro with a duration of five years only, Group
banks approved around 1.200 applications for intervention with over 107 million euro of loans
disbursed.
With regard to the second convention agreement of 17th February 2010, which made five billion
euro available with greater flexibility in terms of duration (three, five and seven years), the UBI
Group was assigned a funding limit of which more than 225 million euro was used to grant
over 3.000 loans.
On 17th December 2010, the Italian Banking Association and the CDP signed the third
convention agreement, which sets out the criteria for the distribution and use of funds
amounting to up to 8 billion euro. Compared to the previous agreements, the main changes
concern greater opportunities for funding by banks through the assignment of:
- a “Ten year budget” usable for loans with a maturity of from seven to ten years, with
funding to the banking sector nationally of one billion euro, of which the UBI Group has
already used over 19 million euro;
- a “Stable budget” to finance the growth of SMEs, into which the funds not fully used by the
previous budgets are gradually flowing, and which will offer all maturities (three, five, seven
and ten years). This budget, usable “on demand”, must be used to fund unsecured loans
5 The agreement, which became operational on 28th September 2009 is for SMEs that are in temporary difficulty but which have good
operating prospects and are going concerns. It enables them to benefit from four measures: i) the deferral for twelve months of
principal repayments on mortgages; ii) the deferral for twelve or six months of the principal repayment portion of property or
equipment leasing instalments respectively; iii) an extension to 270 days for the repayment of bank advances on short term
receivables; iv) special finance designed to strengthen capital.
80
(maturities from 13 to 120 months) and secured loans (maturities from 61 to 120 months)
to finance investments or to increase the working capital of SMEs up to 100% of the
planned expenditure.
As concerns support for families hit by the economic crisis, various initiatives started in 2010
were continued during the current year. In detail:
- the “Italian Banking Association moratorium”, which forms part of the “Families
Programme” enabled 326 customers to defer mortgage repayments in the first six months
of the year (on a total debt of almost 25 million euro)6;
- the “solidarity fund” for the purchase of a main dwelling, which was created as the result of
an initiative by the Ministry of the Economy and Finance and became operational at the
end of 2010, has enabed 44 customers to benefit from the deferral of repayments for a total
of around five million euro;
- the “Loans of hope”, as amended in 2010 by the Italian Banking Association and by the
Italian Episcopal Conference, was used by four customers for a total of 22 thousand euro.
Formalities for adherence to the following new projects promoted by the Italian Banking
Association are already in progress: “Diamogli Futuro” – a student loan programme, which
follows on from the previous “Diamogli credito” programme – and the “Giovani Coppie” (young
couples) fund.
Risk
While the trend for gross deteriorated loans still recorded strong growth year-on-year, it slowed
significantly in the second quarter of 2011, in a context of basic stability for total loans in that
period.
After the pace of growth diminished in the last quarter of 2010, a temporary acceleration
occurred in the first quarter followed by a clear slowdown in the months that followed, which
was, moreover, the aggregate result of different trends for the different classes.
At the end of June, gross deteriorated loans exceeded eight billion euro, a year-on-year
increase of 1,19 billion euro (+17,4%), including 0,44 billion euro relating to the first quarter of
2011, but only 0,10 billion euro to the second. The changes over twelve months affected nonperforming loans (+0,76 billion euro), impaired loans (+0,45 billion euro) and restructured
loans (+0,25 billion euro), while a decrease was recorded for exposures past due and/or in
arrears (-0,27 billion euro).
Deteriorated loans net of impairment losses totalled 5,80 billion euro, a year-on-year increase of
0,99 billion euro (+20,7%), including 0,38 billion euro relating to the first quarter and 0,16
billion euro to the second quarter of 2011.
The trends reported were accompanied by a progressive reduction of two percentage points in
the total coverage (from 29,55% to 27,56%), which reflects both a lower estimated loss on all
newly classified positions 7 and the disposal of unsecured loans, on which almost full
impairment losses had been recognised, performed in the second quarter of 2011 by the
network banks, UBI Leasing and B@nca 24-7. Net of the effect of that disposal coverage was
28,70%.
Coverage for performing loans remained practically unchanged at 0,54%.
From the viewpoint of the types of loan, as can be seen from the table, “Composition of loans
to customers”, more than 65% of the annual growth in net deteriorated loans regarded the
item “mortgage loans and other medium-to-long term loans” backed by collateral, which
results automatically in a lower level of coverage.
6 In July, the Italian Banking Association and the representatives of the 13 consumer associations which signed the original agreement
decided to extend the time limit for presenting applications for admission to the moratorium by families until 31st January 2012.
7 Either as a result of the existence of collateral or because they are operational impairment or restructured loans for which
agreements have been reached to reschedule debt by agreeing to a debt repayment schedule pursuant to article 67 or to a debt
restructuring plan pursuant to article 182-bis of the Bankruptcy Law.
81
Loans to customers as at 30th June 2011
Im pairment
los ses
Gross exposure
Figures in thousands of euro
(7,59%)
Deteriorated loans
- Non-performing loans
- Impaired loans
- Res tructured loans
Carrying amount
Coverage (*)
8.009.373
4.022.363
2.207.669
1.827.246
(5,65%)
(3,81%)
(2,14%)
5.801.704
2.195.117
27,56%
45,43%
(2,56%)
(0,87%)
2.697.124
916.754
292.659
75.569
(2,34%)
(0,82%)
2.404.465
841.185
10,85%
8,24%
3,27%
- Pas t due loans
(0,35%)
373.132
12.195
(0,35%)
360.937
Performing loans
(92,41%)
97.498.368
525.605
(94,35%)
96.972.763
0,54%
105.507.741
2.733.274
102.774.467
2,59%
TOTAL
The item as a percentage of the total is given in b rackets.
Loans to customers as at 31st March 2011
Im pairment
los ses
Gross exposure
Figures in thousands of euro
(7,49%)
Deteriorated loans
- Non-performing loans
- Impaired loans
(3,77%)
(2,37%)
7.905.022
3.979.609
2.504.759
Carrying amount
(5,50%)
2.260.558
1.907.953
271.814
Coverage (*)
5.644.464
2.071.656
2.232.945
(2,02%)
(2,17%)
28,60%
47,94%
10,85%
- Res tructured loans
(0,85%)
897.668
67.317
(0,81%)
830.351
7,50%
- Pas t due loans
(0,50%)
522.986
13.474
(0,50%)
509.512
2,58%
Performing loans
(92,51%)
97.575.669
517.689
(94,50%)
105.480.691
2.778.247
TOTAL
97.057.980
0,53%
102.702.444
2,63%
The item as a percentage of the total is given in b rackets.
Loans to customers as at 31st December 2010
Im pairment
los ses
Gross exposure
Figures in thousands of euro
(7,14%)
Deteriorated loans
- Non-performing loans
(3,62%)
7.465.062
3.780.973
2.203.933
1.841.057
- Impaired loans
(2,22%)
2.320.471
- Res tructured loans
- Pas t due loans
(0,85%)
(0,45%)
889.070
474.548
Performing loans
(92,86%)
TOTAL LOANS TO CUSTOMERS
Carrying amount
(5,17%)
Coverage (*)
(1,91%)
5.261.129
1.939.916
29,52%
48,69%
287.557
(2,00%)
2.032.914
12,39%
60.577
14.742
(0,81%)
(0,45%)
828.493
459.806
6,81%
3,11%
97.073.520
519.820
(94,83%)
104.538.582
2.723.753
96.553.700
0,54%
101.814.829
2,61%
The item as a percentage of the total is given in b rackets.
Loans to customers as at 30th June 2010
Im pairment
los ses
Gross exposure
Figures in thousands of euro
(6,64%)
(3,18%)
6.822.810
3.266.057
2.015.881
1.640.687
- Impaired loans
(2,19%)
2.245.615
- Res tructured loans
(0,65%)
667.427
- Pas t due loans
(0,62%)
643.711
Performing loans
(93,36%)
Deteriorated loans
- Non-performing loans
TOTAL LOANS TO CUSTOMERS
Carrying amount
Coverage (*)
(4,80%)
(1,62%)
4.806.929
1.625.370
29,55%
50,23%
309.742
(1,93%)
1.935.873
13,79%
46.357
(0,62%)
621.070
6,95%
19.095
(0,63%)
624.616
2,97%
95.855.674
504.857
(95,20%)
102.678.484
2.520.738
95.350.817
0,53%
100.157.746
2,45%
The item as a percentage of the total is given in b rackets.
*the coverage ratio is calculated as impairment losses on loans on gross amounts.
Loans to customers: changes in gross deteriorated exposures in the first half of 2011
Non-performing
loans
Figures in thousands of euro
Opening gross exposure as at 1st January 2011
Impaired
loans
Restructured
exposures
Past due
exposures
3.780.973
2.320.471
889.070
474.548
794.163
1.195.180
135.521
571.622
transfers from performing exposures
179.387
776.875
26.858
552.109
transfers from other classes of deteriorated exposures
470.665
326.998
64.758
3.304
other increases
144.111
91.307
43.905
16.209
-552.773
-818.527
-107.837
-673.038
-305
-123.472
-9.645
-283.968
-201.609
-952
-2.758
Increases
Decreases
transfers into performing exposures
full impairment losses
from disposals
-57.831
transfers to other classes of deteriorated exposure
other decreases
Final gross exposure as at 30th June 2011
82
-
-
-
-8.381
-503.665
-6.495
-284.647
-190.438
-88.939
-347.184
-41.886
4.022.363
2.697.124
916.754
373.132
NON-PERFORMING LOANS
Gross non-performing loans rose over twelve months from 3,27 billion euro to 4,02 billion
euro, an increase of 756,3 million euro (+23,2%), of which 198,6 million euro relating to the
first quarter and 42,8 million euro to the second8.
The year-on-year increase is attributable almost entirely to the network banks (+375 million
euro), to UBI Leasing (+244,5 million euro) – partly in relation to the reclassification out of
impaired into non-performing loans of 123 million euro relating to contracts that were
terminated in the fourth quarter of 2010 – and to B@nca 24-7 (+169,7 million euro).
As shown in the table, the trend for this class continues to be driven mainly by the transfer of
positions already classified within other classes of deteriorated loans, and from impaired loans
in particular, and to a lesser degree by reclassifications out of performing loans.
Gross non-performing loans backed by collateral increased in the first half of 2011 by 0,31
billion euro to 2,36 billion euro and accounted for 58,8% of total gross loans at the end of
June (54,2% in December).
Net non-performing loans, on the other hand, rose over twelve months from 1,63 billion euro to
2,20 billion euro, an increase of 569,7 million euro, of which 131,7 million euro relating to the
first quarter and 123,5 million euro to the second.
As a result of the trends reported above, the ratio of non-performing loans to loans rose to
3,81% in gross terms and to 2,14% in net terms (i.e. net of impairment losses). Despite this
the UBI Group continues to maintain a qualitative advantage compared to the average for
Italian banks.
Coverage reduced progressively to 45,43% (48,69% in December, 50,23% in June 2010) due to
the constant presence in newly classified non performing loans of a significant proportion of
positions backed by collateral and therefore with generally less recognition of impairment
losses. In the second quarter of 2011 it was also affected by the disposal of unsecured loans
for a total gross amount of 129,7 million euro, on which almost full impairment losses had
been recognised (99%). If that disposal is not considered, coverage for non performing loans
would be 47,1%.
Coverage for non-performing loans not backed by collateral, considered gross of full
impairment losses (the write-off of positions subject to bankruptcy proceedings and the
relative impairment losses), was 79,68% at the end of June (80,82% in December).
IMPAIRED LOANS
As opposed to non-performing loans, between January and June 2011 the growth in gross
impaired loans that occurred in the last quarter of 2010 increased to reach 2,7 billion euro at
the end of the first half of 2011, with a year-on-year increase of 451,5 million euro (+20,1%) –
including 184,3 million euro relating to the first quarter of 2011 and 192,4 million euro to the
second – fuelled by significant reclassifications out of performing and other classes of
deteriorated loans.
While the year-on-year change is attributable entirely to the network banks (+356,3 million
euro) and Centrobanca (+163,2 million euro), the change since the beginning of the year was
due to the network banks (+182,7 million euro), Centrobanca (+127,5 million euro) and also
UBI Leasing (+53,3 million euro). For the latter two product companies the amounts involved
were considerable in the case of some positions.
Gross impaired loans backed by collateral increased over six months by 0,33 billion euro to
1,74 billion euro and accounted for 64,5% of the gross total, at the end of June (60,7% in
December).
Net impaired loans also rose over twelve months from 1,94 billion euro to 2,40 billion euro
(+468,6 million euro). The change appears to be concentrated mainly in 2011, although it is
slowing (+200 million euro and +171,5 million euro in the first two quarters of the year
respectively).
8 The trend for the second half of 2011 includes the effects of the disposal of unsecured non-performing loans for a total of 129,7
million euro performed by the network banks (36,2 million euro), UBI Leasing (35 million euro) B@nca 24-7 (58,5 million euro).
83
Coverage was stable at 10,85% compared to March, but was down compared to both
December (12,39%) and June 2010 (13,79%), in relation to the increase in the percentage of
positions backed by collateral.
Net of the latter positions, coverage for impaired loans stood at 19,67% (22,41% in December).
RESTRUCTURED LOANS
After the sharp slowdown recorded in the fourth quarter of 2010, the pace of growth in gross
restructured loans remained moderate again in the current year. The total rose over twelve
months from 667,4 million euro to 916,7 million euro, an increase of 249,3 million euro
(+37,4%) with only 27,7 million euro attributable to the first half of 2011 (19,1 million in
second quarter).
The positive trend for this loan class is also confirmed by reduced new classifications out of
performing loans, which between January and June amounted to approximately 15% of the
total for the year before.
The year-on-year change in this class was attributable to Banco di Brescia (+93,5 million
euro) accounting for around 80%, UBI Leasing (+54,9 million euro) and Banca Popolare di
Bergamo (+49,9 million euro).
Coverage increased progressively to 8,24% from 6,81% in December (6,95% in June 2010).
EXPOSURES PAST DUE (AND/OR IN ARREARS)
After a temporary increase in the first quarter of 2011 – attributable mainly to new unsecured
positions due to the Italian Banking Association- Ministry of the Economy and Finance
moratorium which expired and which are now being assessed in view of its extension – gross
exposures past due (and/or in arrears) started to diminish again in the months that followed to
stand at 373,1 million euro compared to 643,7 million euro in June 2010 (-270,6 million euro
year-on-year; -42%).
This fall – which affected both the network banks and the product companies in general –
must, however, be interpreted in relation to the reclassification of part of the total into other
classes of deteriorated loans, and into impaired loans in particular.
The continuation of action to manage credit quality nevertheless seems to have produced
effects, as seen by the reduction in new past due positions, which in the first half amounted to
just a little more than a third of the total for the year before.
The year-on-year performance for this class also reflected the reduction in those positions
termed, “exposures past due and in arrears for more than 90 days, backed by property
mortgages” (-218,4 million euro to 210,3 million euro gross of impairment losses), which as a
percentage of the total reduced progressively over twelve months from 66,6% to 56,4%, which
explains both the low level of coverage for this class of deteriorated loan and the year-on-year
increase from 2,97% to 3,27%.
84
The interbank market
and the liquidity situation
The quarterly changes in net interbank debt
Figures in thousands of euro
Loans to banks
30.6.2011
A
Figures in thousands of euro
Loans to banks
of which: due to central banks
NET INTERBANK DEBT
30.6.2010
E
4.510.008
3.120.352
3.427.795
3.290.637
345.625
739.508
295.430
375.415
4.966.574
7.332.517
5.383.977
7.126.257
9.252.062
-
1.255.064
2.219.152
2.000.056
2.977.481
-581.938
-2.822.509
-2.263.625
-3.698.462
-5.961.425
30.6.2010
F
31.3.2010
G
31.12.2009
H
30.9.2009
I
30.6.2009
L
3.290.637
2.996.834
3.278.264
3.101.108
375.415
282.815
641.788
198.428
643.471
9.252.062
4.612.141
5.324.434
5.306.536
6.073.741
2.977.481
479.002
639.753
501.371
1.500.249
-5.961.425
-1.615.307
-2.046.170
-2.205.428
-2.888.792
of which: loans to central b anks
Due to banks
30.9.2010
D
325.450
of which: due to central banks
NET INTERBANK DEBT
31.12.2010
C
4.384.636
of which: loans to central b anks
Due to banks
31.3.2011
B
3.184.949
As at 30th June 2011, the net interbank balance of the UBI Group consisted of debt of 0,6
billion euro, a marked reduction compared to previous periods.
Examination of items with a residual maturity of less than three months as at that same date
shows net debt of 0,8 billion euro (-0,6 billion euro at the end of March, +0,3 billion euro in
December 2010, both calculated excluding ECB auctions, in consideration of the guarantee of
full-allotment).
The significant improvement in the net debt that occurred in the second quarter is the result
of a reduction in debt (exposure to central banks was reduced to zero in June 2011), in
relation, amongst other things, to good performance by institutional funding on international
markets in the first half of the year.
Use of the interbank market by the Group for funding constitutes a complementary and/or
residual source of supply with respect to other types of funding on institutional markets and
repurchase agreements with the Cassa di Compensazione e Garanzia (a central counterparty
clearing house), (funding through these two channels totalled approximately 28 billion euro1).
In detail, at the end of the first half of 2011 loans to banks stood at 4,4 billion euro – of which
325 million euro to the central bank for compulsory reserve requirements – with the amounts
for all components basically the same as in March (an aggregate change of -0,1 billion euro
over three months).
Compared to December on the other hand, the aggregate increased by 1,3 billion euro, the
result of the combined effect of drawing on funds in the compulsory reserve (-0,4 billion euro)
and greater recourse to the market (+1,7 billion euro) and to repurchase agreements in
particular (+1,6 billion euro). These were agreements entered into with external counterparties
in order to increase assets eligible for refinancing, while waiting for a second rating to be
assigned to internal securitisations used for refinancing with the ECB.
1 See also the section “Funding from customers” in this respect.
85
Loans to banks: composition
30.6.2011
A
Figures in thousands of euro
Loans to central banks
Term deposits
Compulsory reserve requirements
31.3.2011
B
%
Changes A/B
%
amount
31.12.2010
C
%
Changes A/C
%
amount
30.6.2010
D
%
%
325.450
-
7,4%
-
345.625
-
7,7%
-
-20.175
-5,8%
-
739.508
-
23,7%
-
-414.058 -56,0%
-
-
375.415
-
11,4%
-
-414.058 -56,0%
375.058
11,4%
-
325.450
7,4%
345.021
7,7%
-19.571
-5,7%
739.508
23,7%
Reverse repurchase agreements
-
-
-
-
-
-
-
-
-
-
-
-
Other
-
-
604
0,0%
-604 -100,0%
-
-
-
-
357
0,0%
4.059.186
1.223.205
92,6%
27,9%
4.164.383
1.266.902
92,3%
28,1%
76,3% 1.678.342
37,3%
61.809
70,5%
2.915.222
1.454.366
88,6%
44,2%
Loans to banks
Current accounts and deposits
Term deposits
Other financing:
- repurchase agreements
-3,4%
2.380.844
1.161.396
10,1%
450.886
10,0%
-9.608
-2,1%
466.445
14,9%
-5,4%
524.366
15,9%
54,6%
2.446.595
54,2%
-51.892
-2,1%
753.003
24,1% 1.641.700 218,0%
936.490
28,5%
1.624.275
37,0%
1.720.630
38,1%
-96.355
-5,6%
988
0,0%
1.623.287
n.s.
182.511
5,5%
133
0,0%
149
0,0%
-16
-10,7%
165
0,0%
-32
-19,4%
142
0,0%
770.295
17,6%
725.816
16,1%
44.479
6,1%
751.850
24,1%
18.445
2,5%
753.837
22,9%
-
-
-
-
-
-
-
-
-
-
-
4.510.008 100,0%
-125.372
-2,8%
4.384.636 100,0%
-25.167
5,3%
441.278
Debt instruments
TOTAL
-2,5%
-43.697
2.394.703
- finance leases
- other
-105.197
3.120.352 100,0% 1.264.284
40,5%
3.290.637 100,0%
Amounts due to banks, amounting to close to 5 billion euro, decreased in the second quarter
by 2,4 billion euro, the consequence of both the elimination of debt to central banks (1,3
billion euro in March), and less recourse to the market (-1,1 billion euro).
All the components decreased, but the most significant contraction was in term deposits,
which fell to 0,7 billion euro (-0,9 billion euro over three months).
The decrease was more modest in the comparison with December (-0,4 billion euro), as a
result of an increase in repurchase agreements (+1,6 billion euro), to be interpreted jointly
with the corresponding asset item for the acquisition of eligible securities.
Due to banks: composition
Figures in thousands of euro
Due to central banks
Due to banks
Current accounts and deposits
Term deposits
Financing:
- repurchase agreements
- other
Amounts due for commitments
to repurchase own equity
instruments
Other payables
TOTAL
30.6.2011
A
31.3.2011
B
%
Changes A/B
%
amount
31.12.2010
C
%
Changes A/C
%
amount
%
30.6.2010
D
%
32,2%
-
1.255.064
17,1% -1.255.064 -100,0%
2.219.152
41,2% -2.219.152 -100,0%
2.977.481
4.966.574 100,0%
6.077.453
82,9% -1.110.879
-18,3%
3.164.825
58,8%
1.801.749
56,9%
6.274.581
67,8%
1.326.798
26,7%
1.382.412
18,9%
-55.614
-4,0%
692.788
12,9%
634.010
91,5%
2.656.476
28,7%
702.072
14,1%
1.610.640
22,0%
-908.568
-56,4%
1.199.455
22,3%
-497.383
-41,5%
2.232.492
24,1%
2.791.862
56,2%
2.899.513
39,5%
-107.651
-3,7%
1.149.003
21,3%
1.642.859 143,0%
1.286.143
13,9%
1.901.236
38,3%
1.991.262
27,1%
-90.026
-4,5%
290.737
5,4%
1.610.499
n.s.
430.005
4,6%
890.626
17,9%
908.251
12,4%
-17.625
-1,9%
858.266
15,9%
32.360
3,8%
856.138
9,3%
-
-
-
-
-
145.842
3,0%
184.888
2,5%
4.966.574 100,0%
-
-
-
-
-
-
-39.046
-
-21,1%
123.579
2,3%
22.263
-
18,0%
99.470
1,1%
7.332.517 100,0% -2.365.943
-32,3%
5.383.977 100,0%
-417.403
-7,8%
9.252.062 100,0%
As at 30th June 2011, UBI Banca held assets eligible for refinancing transactions with the
central bank amounting to approximately seven billion euro.
The total had decreased compared to the end of the year, due primarily to the introduction of
operational constraints:
on 1st January 2011 the central bank revised the classification and levels of haircuts for
eligible instruments. The level was raised for asset backed securities (ABS) from 12% to
16% with an impact on the total value of assets eligible for refinancing of approximately 0,3
billion euro;
a second rating requirement became operational from 1st March for ABS’s (in order for them
to be eligible, these instruments must have ratings issued by at least two different
international agencies). The rating process for internal securitisations in particular
(amounting to 7,5 billion euro net of haircuts at the end of 2010 and which regarded four of
the five existing securitisations2) was completed on assets of 4,1 billion euro at the end of
the second half of 2010, with a consequent reduction in eligible assets of approximately 3,4
2 The B@nca 24-7 securitisation of salary backed loans was excluded because of its low value.
86
billion euro (the delay was in fact the result of factors not under the direct control of the
Group).
In order to partially compensate for this the Parent entered into reverse repurchase
agreements with external counterparties just mentioned to purchase eligible assets
amounting to 1,6 billion euro net of haircuts.
In August, the eligibility of the securitisation of B@nca 24-7 residential mortgages was
restored and the eligibility of new assets generated by a Banca Popolare di Bergamo
securitisation (on performing loans to small to medium-sized businesses) was approved. While
temporary recourse to the acquisition of eligible assets through repurchase agreement
remained, the total result amounted to approximately 2,2 billion euro net of haircuts. This
increase more than compensated for the reduction in the Banco di Brescia securitisation,
following the partial repayment of the nominal amount (-0,75 billion euro net of haircuts) and
also other changes which affected eligible assets in relation, amongst other things, to trends in
market prices.
At the date of this report, total assets eligible for refinancing amounted to approximately eight
billion euro.
Assets eligible for refinancing
30.6.2011
nominal
amount
amount eligible
(net of haircuts)
31.3.2011
nominal
amount
amount eligible
(net of haircuts)
31.12.2010
nominal
amount
amount eligible
(net of haircuts)
AFS and HTM securities
1,50
1,36
1,41
1,28
1,40
1,34
B@nca 24-7 residential mortgage securitisation (*)
0,00
0,00
0,00
0,00
1,71
1,30
B@nca 24-7 salary backed loan securitisation (*)
0,00
0,00
0,00
0,00
0,38
0,31
B@nca 24-7 consumer loan securitisation (*)
0,00
0,00
0,00
0,00
2,13
1,73
UBI leasing leased assets securitisation
3,44
2,47
3,44
2,76
3,44
2,87
Banco di Brescia securitisation of perform ing loans to SMEs
1,56
1,18
1,56
1,17
1,56
1,25
Loans eligible resulting from participation in ABACO (**)
0,39
0,39
0,30
0,30
0,27
0,27
Securities purchased through repurchase agreements
2,21
1,58
2,16
1,64
-
-
TOTAL
9,10
6,98
8,87
7,15
10,89
9,07
The amounts for the B@nca 24-7 securitisations have been shown as nil since 31st March 2011 until the second rating is acquired and they are therefore
temporarily ineligible.
(**) ABACO (bank assets eligible as collateral) is the name given to procedures drawn up by the Bank of Italy for the management of loans eligible for
refinancing. In order to qualify as eligible, an asset must meet specific requirements concerning the following: type of debtor/guarantor (public sector,
non financial company, international and supranational institutions), high credit rating (single “A-” credit quality level, equivalent to a default probability
of 0,10%) and a minimum amount (one million euro for national use until 2011).
(*)
87
Financial assets
Total financial assets of the Group as at 30th June 2011 amounted to 11,8 billion euro, having
decreased progressively over twelve months after reaching their highest level at the end of the
first half of 2010 (15,3 billion euro) at the time of the action taken to support net interest
income.
Net of financial liabilities held for trading, 50% of which consisting of financial derivatives, the
aggregate amounted to 10,9 billion euro (11,3 billion euro in March and 12,2 billion euro in
December 2010).
In terms of composition, as shown in the table, the year-on-year trend is attributable to a
reduction in both financial assets held for trading (HFT) and in available-for-sale financial
assets. On the other hand, in the first semester of 2011, the only decrease was in financial
assets held for trading, which was only partly offset by new investments made in the first few
months of the year in financial assets at fair value, while available-for-sale (AFS) financial
assets remained stable.
Financial assets/liabilities
30.6.2011
Changes a / b
31.3.2011
Figures in thousands of euro
Total a
Financial assets held for trading
1.093.974
9,3%
1.613.809
13,1%
407.766
3,5%
439.386
3,6%
of which: financial derivatives contracts
Financial assets at fair value
%
Total b
%
amount
%
Changes a / c
31.12.2010
Total c
-519.835 -32,2%
2.732.751
-31.620
-7,2%
514.141
%
amount
20,8% -1.638.777
3,9%
-106.375
%
Changes a / d
30.6.2010
Total d
%
amount
%
-60,0%
2.640.330
17,3%
-1.546.356
-58,6%
-20,7%
733.882
4,8%
-326.116
-44,4%
468.038
4,0%
474.114
3,8%
-6.076
-1,3%
147.286
1,1%
155.143
1,0%
Available-for-sale financial assets
10.223.610
86,7%
10.252.511
83,1%
-28.901
-0,3%
10.252.619
78,1%
320.752 217,8%
-29.009
-0,3%
12.501.312
81,7%
-2.277.702
312.895 201,7%
-18,2%
TOTAL FINANCIAL ASSETS (A)
11.785.622 100,0%
12.340.434 100,0%
-554.812
-4,5%
13.132.656 100,0% -1.347.034
-10,3%
15.296.785
100,0% -3.511.163
-23,0%
10.108.459
85,8%
10.675.895
86,5%
-567.436
-5,3%
11.611.039
88,4% -1.502.580
-12,9%
13.570.854
88,7%
-3.462.395
-25,5%
8.239.826
69,9%
8.825.837
71,5%
-586.011
-6,6%
9.646.573
73,5% -1.406.747
-14,6%
11.559.892
75,6%
-3.320.066
-28,7%
623.603
5,3%
608.028
4,9%
15.575
2,6%
667.497
5,1%
-43.894
-6,6%
686.786
4,5%
-63.183
-9,2%
572.846
4,9%
591.779
4,8%
-18.933
-3,2%
274.362
2,1%
298.484 108,8%
287.757
1,9%
285.089
99,1%
of which:
- deb t instruments
- of which: Italian government securities
- equity instruments
- Units in O.I.C.R.
(collective investment instruments).
FINANCIAL LIABILITIES HELD FOR
TRADING (B)
844.259 100,0%
of which: financial derivatives contracts
421.485
NET FINANCIAL ASSETS (A-B)
10.941.363
49,9%
1.040.163 100,0%
449.517
11.300.271
43,2%
-195.904 -18,8%
954.423 100,0%
-110.164
-11,5%
896.016
100,0%
-28.032
-6,2%
545.161
-123.676 -22,7%
715.321
79,8%
-358.908
-3,2%
12.178.233
57,1%
-1.236.870
-10,2%
14.400.769
-51.757
-5,8%
-293.836
-41,1%
-3.459.406
-24,0%
Management accounting figures1 as at the 30th June 2011 show the following:
- in terms of types of financial instrument, the securities portfolio of the Group was composed
as follows: 76,6% of government securities, 16,7% of corporate securities (approximately
75% issued by major Italian and international banks and financial institutions), 1,3% of
hedge funds and the remainder consisting of funds, equities and other instruments;
- from a financial viewpoint, floating rate securities accounted for 63,7% of the portfolio2 and
fixed rate securities for 23,4%, while structured instruments (for which the optional
component concerned the coupons only and not the capital invested), present mainly in the
available-for-sale portfolio, accounted for 7,1%, with the remainder composed of equities,
funds and convertible bonds;
- as regards the reference currency, 98,8% of the securities were denominated in euro and
0,6% in dollars with currency hedges, while in terms of geographical distribution, 96% of the
investments (excluding hedge funds) were located in the euro area and 2% in USA
securities;
- finally, an analysis by rating (for the bond portfolio only) shows that 98,3% of the portfolio
consisted of “investment grade” securities with an average rating of A2.
1 The management accounting figures relate to a smaller portfolio than that stated in the consolidated financial statements, because
they exclude equity investments and some minor portfolios The analysis also includes transactions performed at the end of the first
half of 2011 with the value date for settlement in the first few days of July.
2 The fixed rate securities purchased as part of asset swaps are also considered as floating rate. They account for 80% of the floating
rate securities.
88
Available-for-sale financial assets
“Available for sale financial assets” (AFS), asset item 40, are measured at fair value with the recognition of
changes in a separate fair value reserve in equity, except for losses due to reductions in value that are
considered significant or prolonged. In this case the reduction in value that occurred in the period is
recognised through profit or loss, the amount being transferred from the negative or positive reserve that
may have been recognised in equity previously. Following the recognition of impairment losses, recoveries
in value continue to be recognised in the separate fair value reserve in equity. Any decreases below the
level of the previous impairment losses are recognised through profit and loss.
Available-for-sale financial assets: composition
30.6.2011
Figures in thousands of euro
Debt instruments
of which: Italian
government securities
Equity instruments
Units in O.I.C.R.
(co llective investment
instruments)
Financing
TOTAL
L1
L2
L3
Changes a / b
31.3.2011
Total a
L1
L2
L3
Total b
amount
Changes a / c
31.12.2010
%
L1
L2
L3
Total c
amount
%
30.6.2010
Total d
8.437.669
1.156.371
10.191
9.604.231
8.490.141
1.148.511
10.159
9.648.811
-44.580
-0,5% 8.509.464
1.115.988
10.255
9.635.707
-31.476
-0,3%
11.843.006
7.384.660
404.639
-
7.789.299
7.455.214
419.047
-
7.874.261
-84.962
-1,1%
7.776.547
-
-
7.776.547
12.752
0,2%
10.010.333
373.105
70.657
72.980
516.742
345.660
71.074
71.439
488.173
28.569
5,9%
346.586
73.614
70.357
490.557
26.185
5,3%
526.597
15.580
87.057
-
102.637
23.824
91.703
-
115.527
-12.890
-11,2%
18.313
106.596
-
124.909
-22.272
-17,8%
130.263
-
-
-
-
-
-
-
-
-
-
-
1.446
1.446
8.826.354
1.314.085
83.171
10.223.610
8.859.625
1.311.288
81.598
10.252.511
-0,3% 8.874.363
1.296.198
82.058
10.252.619
-28.901
-1.446 -100,0%
-29.009
-0,3%
1.446
12.501.312
At the end of the first half of 2011 available-for-sale financial assets amounted to 10,2 billion
euro, more or less unchanged since the end of the year, having reached 12,5 billion euro in
June 2010. They were composed principally of the following:
- the UBI Banca AFS portfolio amounting to 8.811 million euro (8.629 million euro in March
2011 and 8.698 million euro in December 2010);
- the IW Bank portfolio, designed to stabilise the bank’s net interest income given the nature
of its normal operations, amounting to 745 million euro (978 million euro and 845 million
euro);
- the Centrobanca corporate bond portfolio which constitutes activity complementary to and
consistent with the lending approach of that bank, amounting to 510 million euro (502
million euro and 557 million euro).
The IW Bank portfolio decreased by over 230 million euro as a result of net disinvestments in
government securities (CCTs), while the Centrobanca portfolio increased slightly (+8 million in
the quarter) as a result of a positive net balance on purchases, sales and maturities of
corporate securities.
Debt instruments also included financial instruments – all held by UBI Banca – eligible for
refinancing with the ECB with a book value of 89,1 million euro (unchanged compared to
December) consisting of an INPS (national insurance institute) securitisation.
Total Group investments in ABS instruments as at 30th June 2011, net of own securitisations,
totalled 89,4 million euro (89,6 million euro in December) and they were composed as follows:
89,1 million euro, classified in the AFS portfolio of UBI Banca, already mentioned;
0,3 million euro classified within the HFT portfolio of UBI International (see in this
respect the following sub-section “Financial assets held for trading”).
Investments in own securitisations, eliminated in the consolidation, amounted to 38,2 million
euro (39,3 million euro in December) and related to the following:
RMBS instruments classified within financial assets held for trading relating to UBI
Banca (Orio Finance) amounting to 5 million euro (5,3 million euro at the end of the
year);
ABS instruments amounting to 33,2 million euro (34 million euro at the end of 2010),
including:
7,3 million euro in the Centrobanca AFS portfolio (Sintonia Finance, 7,2 million
euro in December);
4,9 million euro in the Parent AFS portfolio (Lombarda Lease Finance, four million
euro, 5,8 million euro six months before);
89
21 million euro classified within loans and receivables relating to UBI Leasing
(Lombarda Lease Finance 4, unchanged in the first half).
Equity instruments increased slightly to 517 million euro from 488 million at the end of March
(491 million euro at the end of December), due to the increase in the interest held in Intesa
Sanpaolo following the subscription of the increase in the share capital.
Shareholdings that are not classified as companies subject to control, joint control or
significant influence and that are not held for merchant banking and private equity activities,
are recognised here.
With regard to listed investments classified within fair value level one, the interest held in
Intesa Sanpaolo rose to 337 million euro from 304,6 million euro in March (296,2 million euro
at the end of the year).
In June 2011 the UBI Banca Group participated in the increase in the share capital by subscribing
41.435.116 ordinary shares at a price of 1,369 euro per share. As a result of that subscription the Group
holds 186.458.028 shares (145.022.912 in March 2011), accounting for 1,20% of the share capital with
voting rights. The value of the investment as at 30th June 2011 also incorporates an impairment loss of 15,9
million euro on the basis of the market price at the end of the first half of 2011 (1,8075 euro).
This asset class also includes the A2A Spa shares, the market value of which fell over three
months from 12,9 million euro to 11,9 million euro and shares in ETF, listed on EuroStoxx 50,
amounting to 21,7 million euro (21 million euro in December).
Finally, the interest held in London Stock Exchange (4,1 million euro in March; 15,5 million euro
at the end of the year) was completely disposed of in May 2011 after partial sales performed in
the first quarter.
As concerns unlisted equity investments, those with a fair value level two and three increased
on aggregate by approximately 1,1 million euro principally as a result of the reclassification of
the remaining investment in BY YOU Spa (30% was sold on 27th April 2011).
Units in O.I.C.R. (collective investment instruments) stood at 102,6 million euro, down from
115,5 million euro before (124,9 million euro at the end of the year), as a result of
disinvestments by UBI Banca (L1) and UBI Pramerica (L2) for over 14 million euro, as well as
net increases in fair value (+1,2 million euro).
The item includes property funds – held almost entirely by the Parent – totalling 23,5 million
euro (27,4 million euro in March, 26,6 million euro in December 2010), including 15,6 million
euro relating to the Polis Fund (19,1 million euro three months before and 18,3 million euro at
the end of 2010) classified within fair value level one3.
At the end of June the fair value reserve in equity for available-for-sale financial assets showed
a negative balance of 264,3 million euro, having increased during the first half (-311,5 million
euro in December 2010), as a result of recoveries in value recorded by debt instruments.
Financial instruments held for trading
Financial assets held for trading
Asset item 20, “Financial assets held for trading”, includes financial trading instruments “used to generate
a profit from short-term fluctuations in price or from a dealer’s margin”. They are recognised at fair value
through profit or loss – FVPL.
3 Following more precise classification, as at 31st March 2011 that level also included UBI Pramerica funds (owned by UBI Banca),
previously classified within fair value level two and fully disposed of in the second quarter of 2011.
90
F in a n c ia l a s se ts h e ld fo r tra d in g : c o m p o siti o n
30.6.20 11
Fig u r e s in th o u s a n d s o f e u r o
L 1
L 2
C ha n g es a / b
31.3.2011
L 3
L 1
T o ta l a
L 2
L 3
a m o u nt
T o ta l b
C h a ng e s a / c
31.1 2.2 010
%
L 1
L 2
L 3
am ount
T o ta l c
30 .6.2010
%
T o ta l d
A. O n -s ta te m e n t of
fin a n c ia l p o s itio n
a s s e ts
D e b t in s tru m e n ts
o f wh ic h : I ta lia n
g o v e rn m e n t s e c u ritie s
E q u ity i n s tru m e n ts
U n its in O .I.C .R .
(c o lle c tive in ve s tm e n t
in s tru m e n ts )
F in a n c in g
T o ta l A
5 0 0 .6 6 4
3 .5 6 4
-
5 0 4 .2 2 8
1 .0 2 3 .4 5 9
3 .6 2 5
-
1 .0 2 7 .0 8 4
-5 2 2 .8 5 6
-5 0 ,9 %
1 .9 6 4 .3 1 9
1 1 .0 1 3
-
1 .9 7 5 .3 3 2
-1 .4 7 1 .1 0 4
-7 4 ,5 %
1 .7 2 7 .8 4 8
4 5 0 .5 2 7
-
-
4 5 0 .5 2 7
9 5 1 .5 7 6
-
-
9 5 1 .5 7 6
-5 0 1 .0 4 9
-5 2 ,7 %
1 .8 7 0 .0 2 6
-
-
1 .8 7 0 .0 2 6
-1 .4 1 9 .4 9 9
-7 5 ,9 %
1 .5 4 9 .5 5 9
1 9 .9 4 8
8
8 6 .9 0 5
1 0 6 .8 6 1
1 3 .6 2 1
2
1 0 6 .2 3 2
1 1 9 .8 5 5
-1 2 .9 9 4
-1 0 ,8 %
7 2 .8 5 6
2
1 0 4 .0 8 2
1 7 6 .9 4 0
-7 0 .0 7 9
-3 9 ,6 %
1 6 0 .1 8 9
520
153
1 .4 9 8
2 .1 7 1
532
54
1 .5 5 2
2 .1 3 8
33
1 ,5 %
512
54
1 .6 0 1
2 .1 6 7
4
0 ,2 %
2 .3 5 1
-
7 2 .9 4 8
-
7 2 .9 4 8
-
2 5 .3 4 6
-
2 5 .3 4 6
4 7 .6 0 2
1 8 7 ,8 %
-
6 4 .1 7 1
-
6 4 .1 7 1
8 .7 7 7
1 3 ,7 %
1 6 .0 6 0
5 2 1 .1 3 2
7 6 .6 7 3
8 8 .4 0 3
6 8 6 .2 0 8
1 .0 3 7 .6 1 2
2 9 .0 2 7
1 0 7 .7 8 4
1 .1 7 4 .4 2 3
-4 8 8 .2 1 5
-4 1 ,6 %
2 .0 3 7 .6 8 7
7 5 .2 4 0
1 0 5 .6 8 3
2 .2 1 8 .6 1 0
-1 .5 3 2 .4 0 2
-6 9 ,1 %
1 .9 0 6 .4 4 8
535
4 0 7 .2 3 1
-
4 0 7 .7 6 6
1 .2 1 4
4 3 8 .1 7 2
-
4 3 9 .3 8 6
-3 1 .6 2 0
-7 ,2 %
1 .0 1 4
5 0 9 .6 0 1
3 .5 2 6
5 1 4 .1 4 1
-1 0 6 .3 7 5
-2 0 ,7 %
7 3 3 .8 8 2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
535
4 0 7 .2 3 1
-
4 0 7 .7 6 6
1 .2 1 4
4 3 8 .1 7 2
-
4 3 9 .3 8 6
-3 1 .6 2 0
-7 ,2 %
1 .0 1 4
5 0 9 .6 0 1
3 .5 2 6
5 1 4 .1 4 1
-1 0 6 .3 7 5
-2 0 ,7 %
7 3 3 .8 8 2
5 2 1 .6 6 7
4 8 3 .9 0 4
8 8 .4 0 3
1 .0 9 3 .9 7 4
1 .0 3 8 .8 2 6
4 6 7 .1 9 9
1 0 7 .7 8 4
1 .6 1 3 .8 0 9
-5 1 9 .8 3 5
-3 2 ,2 %
2 .0 3 8 .7 0 1
5 8 4 .8 4 1
1 0 9 .2 0 9
2 .7 3 2 .7 5 1
-1 .6 3 8 .7 7 7
-6 0 ,0 %
2 .6 4 0 .3 3 0
B. De r iva tive in s tr u m e n ts
F in a n c ia l d e riva ti ve s
C re d it d e riva tive s
T o ta l B
T O TAL (A+ B)
-
At the end of June financial assets held for trading amounted to 1,1 billion euro, a significant
reduction compared to both comparative periods (-0,5 billion euro since March and
-1,6 billion euro since December), attributable primarily to the decrease in debt instruments,
as a result of disposals of Italian government securities (concentrated in the first quarter of the
year in particular).
Debt instruments also included direct investments in “Asset Backed Securities”, all held by
the subsidiary UBI Banca International Sa, consisting mainly of mortgage backed securities
(MBS), with the underlying assets principally of European origin and a management
accounting value of 0,3 million euro (0,5 million euro in December 2010).
A structured product was also present, similar in terms of risk to ABS instruments,
amounting to 2,7 million euro also relating to UBI Banca International Sa (2,6 million euro in
December).
Equity instruments4 also decreased during the quarter, falling from 119,9 million euro to 106,9
million euro. The decrease is linked to instruments held as part of merchant banking and
private equity business, mainly relating to Centrobanca and classified within fair value level
three. In June 2011 these had decreased to 86,9 million euro from 106,2 million euro in
March, due to the combined effect of the impairment loss on the investment in Medinvest held
by the Parent (-7,7 million euro), the disposal of an instrument by Centrobanca (-11,1 million
euro) and decreases in the fair value of some investments.
The fall in equity instruments classified within L3 was partially offset by the new investments
classified within L1, performed principally by the Parent.
Investments in OICR units (collective investment instruments) amounted to 2,2 million euro
relating almost entirely to hedge funds purchased by UBI Banca prior to 30th June 2007 and
still held (1,5 million euro classified within fair value level three)5.
The item financing – all relating to Prestitalia Spa – almost tripled compared to March rising
from 25,3 million euro to 72,9 million euro.
Finally, financial assets classified as held for trading also included derivative instruments
amounting to 407,8 million euro (439,4 million euro in March) entirely of a financial nature,
for which the performance and amount must be interpreted in strict relation to the
corresponding item recognised within financial liabilities held for trading.
As already reported, the Lehman Brothers securities, still held in portfolio at the end of December, classified
within deteriorated assets and amounting to 0,9 million euro (the expected realisable value of the bonds
subscribed by UBI International and by the Parent for a total nominal amount of 10 million euro) were
completely disposed of during the first quarter of 2011.
4 As already reported, until 31st December 2010 this accounting class had included the portfolio entrusted to the Group’s asset
management company under the management mandate granted to it (39 million euro of European equities at the end of the year).
The management strategy changed during the first quarter of 2011 and the UBI Pramerica SGR mandate now includes investments
in Pramerica mutual funds classified at fair value for an initial amount of 330 million euro (see the following sub-section in this
respect).
5 The following sub-section, “financial assets at fair value”, may be consulted for a full picture of the Group’s investments in hedge
funds.
91
Financial liabilities held for trading
Financial liabilities held for trading: composition
30.6.2011
L1
Figures in thousands of euro
L2
Changes a / b
31.3.2011
L3
L1
Total a
L2
L3
amount
Total b
Changes a / c
31.12.2010
%
L1
L2
L3
amount
Total c
30.6.2010
%
Total d
A. On-statement of
financial position
liabilities
Due to banks
50.294
-
-
50.294
197.630
-
-
197.630
Due to customers
372.480
-
-
372.480
393.016
-
-
393.016
-20.536
Debt instruments
-
-
-
-
-
-
-
-
-
422.774
-
-
422.774
590.646
-
-
590.646
667
420.818
-
421.485
775
448.742
-
449.517
-28.032
-
-
-
-
-
-
-
-
-
667
420.818
-
421.485
775
448.742
-
449.517
-28.032
423.441
420.818
-
844.259
591.421
448.742
- 1.040.163
Total A
-147.336 -74,6% 110.657
-
-
110.657
-
-
298.605
73.875
-
-
-
-
-
-167.872 -28,4% 409.262
-
-
409.262
13.512
-5,2% 298.605
-
-60.363 -54,5%
122.501
24,7%
58.194
-
-
3,3%
180.695
-123.676 -22,7%
715.321
B. Derivative instruments
Financial derivatives
Credit derivatives
Total B
TOTAL (A+B)
-6,2%
1.191
543.970
-
-
-
-
-
1.191
543.970
-
545.161
-123.676
-22,7%
715.321
-195.904 -18,8% 410.453
543.970
-
954.423
-110.164
-11,5%
896.016
-6,2%
545.161
-
-
As at 30th June 2011, financial liabilities held for trading (liabilities item 40) fell to 844,3
million euro after exceeding one billion euro in March (954,4 million euro at the end of the
year).
As shown in the table, all items contributed to the decrease in the total during the quarter.
With regard to on-statement of financial position liabilities (-167,9 million euro to 422,8
million euro) – relating entirely to uncovered short positions on government securities – the
most significant decrease concerned amounts due to banks (-147,3 million euro to 50,3
million euro).
Financial derivatives, amounting to 421,5 million euro, also decreased further (-28 million
euro), attributable mainly to lower volumes of business.
Financial assets at fair value
The item “financial assets at fair value” (asset item 30) comprises financial instruments designated as such
in application of the fair value option (FVO). The class also includes units in hedge funds purchased
subsequent to 1st July 2007.
These financial assets are recognised at fair value through profit or loss.
Financial assets at fair value: composition
30.6.2011
Figures in thousands of euro
L1
L2
31.3.2011
L3
Total a
L1
L2
Changes a / b
L3
Total b
amount
31.12.2010
%
L1
L2
30.6.2010
Changes a / c
L3
Total c
amount
%
Total d
Debt instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Equity instruments
Units in O.I.C.R.
(collective investment
instruments)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
440.748
-
27.290
468.038
445.822
-
28.292
474.114
-6.076
-1,3% 116.208
-
-
-
-
-
-
-
-
-
440.748
-
27.290
468.038
445.822
-
28.292
474.114
-6.076
Financing
TOTAL
-
31.078
147.286
-
-
-
-
-1,3% 116.208
-
31.078
147.286
-
320.752 217,8%
-
155.143
-
320.752 217,8%
155.143
In the first six months of 2011, financial assets at fair value – consisting exclusively of O.I.C.R.
(collective investment instruments) units held by UBI Banca – amounted to 468 million euro,
virtually unchanged compared to March (474,1 million euro).
The class was composed of the following types of investments:
-
-
UBI Pramerica mutual funds, created as part of the management mandate conferred on
the Group’s asset management company, classified within fair value level one,
amounting to 329,3 million euro (a new investment made in March 2011);
hedge funds amounting to 138,7 million euro, including 111,4 million euro relating to
Capitalgest alternative funds classified within fair value level one and 27,3 million euro
classified within fair value level three.
92
With regard to hedge funds – also including the remaining amount of 1,5 million euro
recognised within financial assets held for trading, consisting of fair value level three OICR
units (purchases made before 30th June 2007) – the total portfolio held by the Parent as at
30th June 2011 amounted to 140,2 million euro (144,8 million euro in March and 148,9
million euro in December). Hedge funds were redeemed, net of redemption fees 6, since the
beginning of the year amounting to 3,5 million euro.
As concerns applications to redeem hedge funds classified within fair value level three only (a
total of 28,8 million euro), management accounting figures at the end of the first half of 2011
showed that eight funds, for more than 18 million euro, are expected to pay and/or have
declared that they were implementing a deferred redemption plan (known as a "gate") – as
allowed for in their respective regulations; another 18 funds have created “side pockets” for an
amount of 10 million euro.
Exposure to sovereign debt risk
On 28th July 2011 the European Securities and Markets Authority (ESMA) published
document No. 2011/266 relating to information on sovereign debt to be disclosed in annual
and half year financial reports prepared by listed companies that adopt IAS/IFRS.
Details of the exposures of the UBI Banca Group are therefore given below. It should be
considered that according to the instructions issued by this European supervisory authority
“sovereign debt” is defined as bonds issued by central and local governments and by
government entities and also as loans granted to them.
UBI Banca Group: exposures to sovereign debt risk as at 30th June 2011
UBI BANCA
Country / portfolio of classification
Nominal amount Carrying amount
CONSOLIDATED
Fair value
Nominal amount Carrying amount
Fair value
figures in thousands of euro
- Italy
financial assets and liabilities held for trading (net exposure)
available-for-sale financial assets
7.323.203
7.399.555
7.399.555
9.177.934
9.234.047
424.502
422.833
422.833
452.422
450.527
450.527
6.875.005
6.951.141
6.951.141
7.740.276
7.789.305
7.789.305
23.696
25.581
25.581
985.236
994.215
994.215
2.500
2.540
2.540
118.429
118.468
118.468
2.500
2.540
2.540
2.519
2.558
2.558
115.910
115.910
115.910
97
loans
- Spain
financial assets and liabilities held for trading (net exposure)
loans
- Germany
financial assets and liabilities held for trading (net exposure)
9.234.047
6
6
6
97
97
6
6
6
7
7
7
90
90
90
11
loans
1
1
1
11
11
1
1
1
11
11
11
-
-
-
129.010
129.010
129.010
129.010
129.010
129.010
- Holland
10
10
10
10
10
10
loans
10
10
10
10
10
10
- Argentina
155
49
49
1.528
673
673
- France
financial assets and liabilities held for trading (net exposure)
- Luxembourg
loans
financial assets and liabilities held for trading (net exposure)
- Finland
49
49
1.528
673
673
5.132
5.132
5.000
5.132
5.132
5.000
5.132
5.132
5.000
5.132
5.132
7.330.875
7.407.293
7.407.293
9.432.019
9.487.448
9.487.448
financial assets and liabilities held for trading (net exposure)
Total on-statement of financial position exposures
155
5.000
As at 30th June 2011 the book value of the sovereign exposures of the UBI Group totalled 9,5
billion euro, of which over 97% concentrated in Italy.
Exposures in European government securities other than Italy were very modest: moreover,
those relating to Spain (ten year bond amounting to 2,5 million euro) and Finland (ten year
bond amounting to five million euro) were disposed of in July 2011.
6 The technical term used to indicate expenses for repayment.
93
With specific reference to Italian government securities, at the end of the first half of 2011 the
Group held 8,2 billion euro in portfolio, of which 7,8 billion euro classified within available-forsale financial assets and 0,4 billion euro within financial assets held for trading.
Approximately 90% of the investments related to the Parent.
The table below shows the distribution by maturity. The average maturity of the AFS portfolio
is 8,98 years while the financial duration, which considers securities hedged by asset swaps,
is 1,93 years.
Maturities of Italian government securities
figures in thousands of euro
less than six months
Financial assets held for
trading
Available-for-sale financial
assets
Total
88.713
2.352.909
2.441.622
six months to one year
178.513
107.549
286.062
one year to three years
133.824
49.872
183.696
-
884.250
884.250
three years to five years
five years to ten years
Over ten years
Total
42.632
2.100.108
2.142.740
6.844
2.294.612
2.301.456
450.527
7.789.299
8.239.826
After the end of the first half of 2011, the increased tensions on financial markets resulted in a
worsening of the negative balance on the fair value reserve for available-for-sale financial
assets. As at 24th August 2011, the balance on the portion of the reserve relating to Italian
government securities only was negative by 595,2 million euro net of tax, compared to -261,7
million at the end of the first half.
94
Exposures of the Group to some types of products
This section provides an update of the position of the UBI Banca Group with regard to some
types of financial instruments, which since the subprime mortgage crisis in 2007, are now
considered at high risk.
Special purpose entities (SPEs)
The involvement of the UBI Group in special purpose entities (SPEs7) concerns the following
types:
- entities formed to allow the issue of preference shares;
- conventional securitisation transactions 8 performed by Group member companies in
accordance with Law No. 130 of 30th April 1999;
- the issue of covered bonds, in accordance with Art. 7 bis of Law No.130/1999.
Special purpose entities existed as at 30th June 2011, within the UBI Banca Group for the
issue of preference shares used as innovative equity instruments on international capital
markets. These issues, which current supervisory regulations allow to be included in the
consolidated tier one capital, take the form of non redeemable instruments and they have
particularly junior levels of subordination. The preference shares included in the tier one
capital amounted to 453,46 million euro and they were issued by a number of the banks
which formed the Group prior to the merger.
On the one hand, securitisations form part of a strategic policy to expand lending by
simultaneously freeing up part of the supervisory capital relating to the amounts transferred
and on the other they constitute an important medium to long-term funding instrument. The
underlying assets securitised consist of performing assets of the network banks and other
product companies.
The list of SPEs used for the securitisations in which the Group is involved is as follows9:
Orio Finance Nr. 3 Plc,
Albenza 3 Srl,
Lombarda Lease Finance 4 Srl,
UBI Lease Finance 5 Srl,
Sintonia Finance Srl,
24-7 Finance Srl,
UBI Finance 2 Srl,
UBI Finance 3 Srl.
Finally, the entity UBI Finance Srl was formed to purchase loans from banks as part of
operations to issue covered bonds.
With the exception of UBI Finance Srl, the special purpose entities listed above are included in
the consolidated accounts because these companies are in reality controlled, since their assets
and liabilities were originated by Group member companies. As concerns Sintonia Finance,
since the securitisation was multi-originator, only those assets and liabilities relating to the
operation originated by Centrobanca are consolidated.
The securitisations concerning the special purpose entities, 24-7 Finance Srl, UBI Lease
Finance 5 Srl and UBI Finance 2 Srl were performed in order to constitute a portfolio of assets
eligible as collateral for refinancing with the European Central Bank, consistent with Group
policy for the management of liquidity risk.
7 Special Purpose Entities (SPEs) are special companies formed to achieve a determined objective.
8 With normal securitisations the originator sells the portfolio to a special purpose entity which then issues tranches of asset-backed
securities in order to purchase it. With a synthetic securitisation, on the other hand, the originator purchases protection for a pool of
assets and transfers the credit risk attaching to the portfolio – either fully or in part – by using credit derivatives such as CDSs
(credit default swaps) and CLNs (credit-linked notes) or by means of personal guarantees.
9 While the securitisation was closed down early in the third quarter of 2010, the company Lombarda Lease Finance 3 Srl continues to
remain operational.
95
They were performed on performing residential mortgages, salary backed loans and consumer
loans of B@nca 24-7 (24-7 Finance Srl), on lease contracts of UBI Leasing (UBI Lease Finance
5 Srl) and on performing loans to small to medium-sized enterprises of Banco di Brescia (UBI
Finance 2 Srl). In the securitisations in question, the senior securities issued by the entities –
assigned a rating – are listed and can be used for refinancing operations with the ECB.
Again in this context, in December 2010 a new securitisation transaction was initiated by
transferring loans to businesses, classified as performing and held by Banca Popolare di
Bergamo Spa, to the special purpose entity UBI Finance 3 Srl.
The operation consists of two stages:
- the transfer of the loans by the originator to the special purpose entity on 6th December
2010 (effective from 1st December), for an amount of approximately 2,8 billion euro;
- the issue of securities by UBI Finance 3 (performed in July 2011).
The issue of covered bonds is designed to diversify sources of funding for the Group and also
to contain the cost of it. As at 30th June 2011, UBI Banca had performed placements of
covered bonds for a total nominal amount of 5,5 billion euro (1,75 billion euro issued in 2011)
as part of a programme for a maximum issuance of ten billion euro. The originator banks
issued a subordinated loan to the SPE, UBI Finance, equal to the value of the loans sold, in
order to fund the purchase. At the end of June, these loans amounted to approximately 9,11
billion euro (7,83 billion euro in December 2010).
In this respect, exposures are present in the Group which relate solely to the special purpose
entities formed for the securitisations mentioned and they all fall within the consolidation
scope.
Ordinary lines of liquidity existed as at 30th June 2011 granted by the Parent to the special
purpose entity Orio Finance Nr.3 Plc for a total of five million euro, but not drawn on (five
million euro as at 31st December 2010, not drawn on). Ordinary lines of liquidity were also
granted by B@nca 24-7 to the entity 24-7 Finance for a total of 237,3 million euro, which have
been drawn on entirely (37,3 million euro, entirely drawn on, at the end of 2010).
All the securitisations are hedged by swap contracts where the main objective is to stabilise
the flow of interest generated by the securitised portfolio and to protect the special purpose
entity from interest rate risk. These derivatives contracts were taken out between the entities
and the respective hedging counterparties which, in order to be able to “close” the risk with
originator, took out contracts – identical in form but opposite in the effects – with UBI Banca.
The Parent, then in turn, renegotiated further mirror swaps with the respective originators10.
No exposures exist to special purpose entities or other conduit operations with underlying
securities or investments linked to United States subprime and Alt-A loans.
The total assets of SPEs relating to securitisations and to covered bonds amounted to 21,2
billion euro (21,9 billion euro in December 2010).
Details by asset class are given in the table below:
10 The following constituted exceptions to that practice: the UBI Lease Finance 5 and UBI Finance 2 transactions, where the special
purpose entity entered into swap contracts directly with UBI Banca (which then renegotiated mirror swaps with the originators UBI
Leasing and Banco di Brescia) and the Sintonia Finance securitisation which Centrobanca Spa closed directly, without going
through the Parent, hedging the risk by means of a swap contract.
96
SPE underlying assets
Classification of underlying assets of the securitisation
Figures in millions of euro
Entity
Total assets
Albenza 3 Srl
Sintonia Finance
24-7 Finance
24-7 Finance
24-7 Finance
Lease Finance 3
Lease Finance 4
UBI Lease Finance 5
Orio Finance 3
UBI Finance
UBI Finance 2
UBI Finance 3
30,2
27,1
4.969,6
61,2
199,4
3.713,9
30,2
8.600,5
1.146,4
2.391,3
Class of underlying asset
30.6.2011
Accounting
Classification
Measurement
criteria
adopted
L&R
L&R
L&R
L&R
L&R
L&R
L&R
L&R
L&R
L&R
L&R
L&R
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
Mortgages
Mortgages
Mortgages
Salary backed loans
Consumer loans
Leasing
Leasing
Leasing
RMBS Notes (ALBENZA 3 Srl)
Mortgages
Loans to SMEs and small businesses
Loans to businesses
Gross of
impairment
losses
Total impaired assets, mortgages and loans
Total impaired assets, leasing
TOTAL
21.169,8
28,9
22,0
1.782,8
341,1
1.432,2
175,4
3.472,4
30,2
8.500,2
1.078,2
2.383,8
31.12.2010
Net of
impairment
losses
(*)
(*)
(*)
(*)
(*)
(*)
28,9
19,5
1.775,0
338,1
1.395,6
175,0
3.472,4
30,2
8.485,3
1.074,8
2.376,0
(*)
(*)
(*)
(*)
(*)
(*)
Gross of
impairment
losses
Net of
impairment
losses
36,3
25,5
1.903,9
414,1
1.809,6
232,1
2.449,4
37,4
7.700,0
1.241,8
2.707,7
36,3
23,4
1.894,5
413,7
1.761,8
226,7
2.445,8
37,4
7.687,2
1.236,9
2.699,5
(*)
(*)
(*)
(*)
(*)
(*)
220,3
283,5
205,3
265,9
372,2
157,3
242,4
153,9
19.751,0
19.642,0
19.087,3
18.859,5
(*) assets transferred not derecognised on the books of the originators
The distribution by geographical location and credit rating of the securities issued relating to
the securitisations by the special purpose entities Lombarda Lease Finance 4 and UBI Lease
Finance 5 are given below.
Securitisations di UBI Leasing: distribution of the underlying assets and of the securities issued
(30th June 2011)
DISTRIBUTION BY GEOGRAPHICAL AREA
DISTRIBUTION OF ASSETS BY CREDIT RATING
unrated 14,3%
BBB 0,8%
1,3%
17,0%
1,4%
4,1%
A 0,0%
2,2%
51,3%
8,1%
4,7%
AAA
84,9%
9,9%
Lombardy
Latium
Liguria
Veneto
Trentino Alto Adige
Friuli Venezia Giulia
Piedmont
Emilia Romagna
Other
unrated
AAA
A
BBB
senza rating
Exposure in ABS, CDO, CMBS and other structured credit products
As at 30th June 2011, the UBI Banca Group held direct investments in ABS instruments
amounting to 92,1 million euro (92,2 million euro in December 2010), net of repurchases of
tranches of its own securitisations, consisting as follows:
- ABS instruments totalling 0,3 million euro (recognised within financial assets held for
trading), belonging to the subsidiary UBI Banca International, with underlying assets
mainly of European origin (0,5 million euro in December 2010);
- other structured credit products totalling 2,7 million euro (classified within financial assets
held for trading in the UBI Banca International portfolio) with an investment grade credit
rating (2,6 million euro at the end of 2010);
- ABS instruments totalling 89,1 million euro (recognised within available-for-sale financial
assets) relating to senior tranches of INPS (national insurance institute) securitisations
(89,1 million euro at the end of 2010).
97
(*)
(*)
(*)
(*)
(*)
(*)
The total amount of the direct investments in structured credit products (net of impairment
losses) listed above accounted for 0,07% of consolidated Group assets.
The ABS instruments classified within financial assets held for trading relate to trading
activity that is subject to risk limits which are monitored daily.
ABS securities recognised within available-for-sale financial assets are eligible for refinancing
with the European Central Bank.
No direct investments exist in securities backed by commercial mortgages (CMBS).
The table summarises Group exposures in ABS instruments: none of the positions listed
contained underlying assets linked to subprime or Alt-A loans.
Direct exposure in ABS
Figures in millions of
euro
Classifications
30.6.2011
31.12.2010
Hedged by
Counterparty
relationship
Type of exposure
Rating
Seniority
Accounting
Classification
Gross of
Net of
Impairm ent
losses
Hedged by
techniques
Gross of
Net of
Im pairment
to reduce
Impairm ent
Im pairment
to reduce
losses
counterparty
losses
losses
counterparty
credit risk
investor
investor
investor
ABS
ABS
Other structured
AAA
Senior
HFT
AFS
HFT
TOTAL
0,3
89,7
2,7
0,3
89,1
2,7
92,7
92,1
no
no
no
techniques
credit risk
0,5
88,7
2,6
0,5
89,1
2,6
91,8
92,2
no
no
no
Own securitisations, eliminated when consolidating the accounts, totalled 10,9 billion euro
(11,1 billion euro at the end of 2010) and related mainly to ABS instruments (including 9,0
billion euro of senior securities) used as collateral for advances from the ECB. Further details
are provided in the previous section “The interbank market and the liquidity situation” .
In addition to the direct exposures, hedge funds or funds of hedge funds were identified among
the assets present in Group portfolios with exposures to structured credit products of the CDO
and CMBS type. Investment in these funds as at 30th June 2011 amounted to approximately
126 million euro (net of impairment losses/reversals) and presented low percentages of
exposure (no hedge funds out of a total of 10 had a percentage of exposure greater than 2%).
Total indirect exposure to CDOs and CMBSs amounted to approximately 0,1 million euro, (0,1
million euro in December 2010).
Net gains/losses attributable to structured credit products classified as held for trading are
recognised within item 80 of the income statement “net trading income” and amounted to +0,1
million compared to -3,1 million euro at the end of 2010.
As concerns the fair value impact on structured products classified within available-for-sale
financial assets (AFS), the reserve in equity was debited – net of the tax – by approximately 0,2 million euro (+0,2 million euro at the end of 2010).
Other subprime and Alt-A exposures
Again at the end of the first half, indirect exposures to subprime and Alt-A mortgages existed
that were contained in hedge funds or funds of hedge funds held by the Parent. The
percentages of exposure to subprime and Alt-A mortgages were again low (no fund had a
percentage exposure of greater than 2%), with total exposure to subprime and Alt-A loans of
approximately 0,1 million euro (0,3 million euro as at 31st December 2010).
98
Exposures to monoline insurers
Indirect exposures to monoline insurance companies exist in hedge funds or funds of hedge
funds held by UBI Banca. The percentages of exposure remained very modest with an overall
amount of less than 0,1 million euro, unchanged compared to December 2010.
Leveraged Finance
The term leveraged finance is used in the UBI Banca Group to refer to finance provided for a
company or an initiative which has debt that is considered higher than normal on the market
and is therefore considered a higher risk. Usually this finance is used for specific acquisition
purposes (e.g. the acquisition of a company by other companies – either directly or through
vehicles/funds – owned by internal [buy-in] or external [buy-out] management teams). They
are characterised by “non investment grade” credit ratings (less than BBB-) and/or by
remuneration that is higher than normal market levels.
Leveraged finance business is performed by Centrobanca and is regulated by the Group Credit
Risk Policy designed to combine the achievement of budget targets in terms of business
volumes and profits with appropriate management of the attached risks.
Briefly, operations are based on a maximum investment ceiling, reviewed annually and allocated
on the basis of rating classes for operations according to predefined maximum percentages. The
system of limits is calculated to seek appropriate diversification both in terms of sector and the
concentration of risk on single company or Group counterparties.
The table below summarises on- and off-balance sheet exposure for leveraged finance by
Centrobanca. That activity accounts for approximately 19% of total lending and guarantees
granted by Centrobanca (12,2% as at 31st December 2010). The amounts shown as at 30th
June 2011 relate to 219 positions, for an average exposure per loan of 6,2 million euro. There
were around eleven positions of greater than 20 million euro (all relating to on-balance sheet
loans) corresponding to approximately 31,5% of the total.
Centrobanca leveraged finance business
figure s in m illio ns o f e uro
30 June 2011
31 December 2010
On-statement of financial position
exposure
Guarantees
gross exposure to customers
gross exposure to customers
used
impairment
used
1.303,8
-20,7
61,3
-6,0
853,0
-7,7
51,9
-6,0
impairment
The graphs below show the distribution of leveraged exposures by geographical area and by
sector.
Distribution of Centrobanca leveraged exposures
(the figures as at 31st December 2010 are given in brackets)
EXPOSURE BY GEOGRAPHICAL AREA
USA and
Mexico
2% (4%)
EXPOSURE BY SECTOR
Europe
14% (21%)
Manufacturing
52% (61%)
Italy
84% (75%)
99
Commerce
and services
48% (39%)
Residual exposures also exist within the UBI Banca Group – approximately 254 million euro
(265 million euro as at 31st December 2010) – relating to leveraged finance transactions
performed before this type of business was centralised at Centrobanca. They were performed
by the network banks relating to a total of 30 positions with average exposure per transaction
of 8,5 million euro.
The principal amounts related to Banco di Brescia (116,02 million euro), Banca Popolare di
Bergamo (61,2 million euro), Banca Popolare Commercio e Industria (32,0 million euro) and
Banca Regionale Europea (28,9 million euro).
Financial derivative instruments for trading with customers
The analysis performed as at 30th June 2011 for internal monitoring purposes show that the
risks assumed by customers are generally low and they outlined a conservative profile for UBI
Group business in OTC derivatives with customers.
The quantitative data updated at the end of the first half showed the following:
- a slight reduction in the total negative mark-to-market for customers, which stood at 2,68%
of the notional amount of the contracts compared to 3,35% as at 31st December 2010;
- the notional amount for existing contracts, totalling 7,168 billion euro, was attributable to
interest rate derivatives amounting to 6,589 billion euro and currency derivatives
amounting to 0,567 billion euro plus a marginal notional amount for commodities contracts
of 12 million euro;
- transactions in hedging derivatives account for close to 95,5% of the notional amount
traded for interest rate derivatives and 95% of the notional amount for currency derivatives;
- the total net mark-to-market (interest rate, currency and commodities derivatives) stood at
approximately -171 million euro. Those contracts with a negative mark-to-market for
customers were valued at -192 million euro.
The Group has set a “Policy for the sale of OTC derivative instruments to customers” and has
issued “Regulations for the sale of OTC derivative instruments to customers”, which
implement the policy in operational terms and regulate the following:
• customer segmentation and classes of customers associated with specific classes of
products, stating that the purpose of the derivatives transactions must be hedging and that
transactions containing speculative elements must be of a residual nature;
• rules for assessing the appropriateness of transactions, defined on the basis of the products
sold to each class of customer;
• principles of integrity and transparency on which the range of OTC derivatives offered to
customers must be based, in compliance with the guidelines laid down by the Italian
Banking Association (and approved by the CONSOB) for illiquid financial products;
• rules and processes for assessing credit exposure, which grant credit lines with maximum
limits for trading in interest rate derivatives and credit lines on each single transaction for
currency derivatives and commodities derivatives, while counterparty risk is assessed on
the basis of Bank of Italy circular No. 263/2006;
• rules and processes for managing restructuring operations, while underlining their
exceptional nature;
• the catalogue of products offered to customers and the relative credit equivalents, updated
with respect to previous versions.
In June 2011, the contents of the “Policy for the placing of OTC derivative instruments to
customers” was incorporated in the “Policy for the sale and subscription of financial products”,
because the two documents have the same purpose and the same scope of application. The
“Policy for the sale and subscription of financial products” is currently under review which, in
accordance with the guidelines set by Group policy, will contain the principles established by
the “Regulations for the sale of OTC derivative instruments to customers”.
100
OTC interest rate derivatives: details of instrument types and classes of customer
Data as at 30th June 2011
Policy
product
class
Type of instrument
Policy customer class
Number of
transactions
Notional
of which negative
MtM
MtM
1
Purchase of caps
3: Professional and qualified
2: Non private individual retail
1: Private individual retail
85
1.439
1.311
2.835
211.456.450,17
445.663.266,74
152.896.664,78
810.016.381,69
809.787,78
5.293.661,29
2.086.258,54
8.189.707,61
-
3: Professional and qualified
2: Non private individual retail
1: Private individual retail
111
1.464
4.724
6.299
478.538.122,65
969.803.641,48
511.921.065,01
1.960.262.829,14
-7.870.350,20
-17.963.010,09
-4.850.464,21
-30.683.824,50
-7.884.533,30
-18.073.482,30
-4.864.877,10
-30.822.892,70
3: Professional and qualified
2: Non private individual retail
1: Private individual retail
264
785
441
1.490
1.545.703.656,31
1.362.127.797,00
63.230.868,49
2.971.062.321,80
-38.418.969,14
-42.726.374,42
-2.057.960,12
-83.203.303,68
-41.963.594,76
-45.585.171,47
-2.123.359,03
-89.672.125,26
3: Professional and qualified
2: Non private individual retail
20
72
92
78.653.527,07
156.269.093,56
234.922.620,63
-3.170.779,43
-18.075.923,24
-21.246.702,67
-3.470.306,90
-18.099.804,80
-21.570.111,70
10.716
5.976.264.153,26
-126.944.123,24
-142.065.129,66
97,9435%
90,697%
79,093%
80,886%
Purchase of caps Total
Capped swaps
Capped swaps Total
IRS Interest rate swaps
IRS Interest rate swaps Total
IRS Step up
IRS Step up Total
Total Class 1: hedging derivatives
Class 1: % of Group total
2
Purchase of caps (including KI/KO)
3: Professional and qualified
2: Non private individual retail
2
18
20
24.620.397,41
27.873.408,60
52.493.806,01
-201.376,29
-323.715,33
-525.091,62
-201.376,29
-323.715,33
-525.091,62
3: Professional and qualified
2: Non private individual retail
3
11
14
14.555.970,56
20.412.344,51
34.968.315,07
-67.992,82
-1.200.247,70
-1.268.240,52
-73.167,56
-1.200.247,70
-1.273.415,26
IRS Cap spreads
IRS Cap spreads Total
2: Non private individual retail
1
1
281.095,00
281.095,00
-1.419,72
-1.419,72
-1.419,72
-1.419,72
IRS Convertible
3: Professional and qualified
2: Non private individual retail
11
44
55
153.401.828,55
71.181.205,58
224.583.034,13
-6.900.241,16
-2.239.510,97
-9.139.752,13
-6.900.241,16
-2.239.510,97
-9.139.752,13
90
312.326.250,21
-10.934.503,99
-10.939.678,73
4,740%
6,813%
6,229%
Purchase of caps (including KI/KO) Total
Purchase of collars (including KI/KO)
Purchase of collars (incl. KI/KO) Total
IRS Convertible Total
Total Class 2: hedging derivatives with possible exposure
to contained financial risks
Class 2: % of Group total
0,8226%
3a
IRS Range
3: Professional and qualified
2: Non private individual retail
1: Private individual retail
IRS Range Total
(¹)
Memory Floor
Memory floors Total
3: Professional and qualified
Total Class 3a: partial hedging derivatives with pre-established maximum loss
16
88
1
105
75.321.420,80
161.512.703,41
500.000,00
237.334.124,21
-5.046.173,69
-12.258.961,62
-39.293,29
-17.344.428,60
-5.046.173,69
-12.258.961,62
-39.293,29
-17.344.428,60
1
1
4.000.000,00
4.000.000,00
-2.597.768,42
-2.597.768,42
-2.597.768,42
-2.597.768,42
106
241.334.124,21
-19.942.197,02
-19.942.197,02
3b
Gap floater swaps
Gap floater swaps Total
2: Non private individual retail
3
3
6.301.222,00
6.301.222,00
-91.491,73
-91.491,73
-102.206,48
-102.206,48
IRS corridor accruals
3: Professional and qualified
2: Non private individual retail
6
6
12
15.500.000,00
8.400.000,00
23.900.000,00
-168.867,55
-65.479,04
-234.346,59
-168.867,55
-65.479,04
-234.346,59
3: Professional and qualified
2: Non private individual retail
2
12
14
7.000.000,00
22.150.000,00
29.150.000,00
-647.229,08
-1.704.997,09
-2.352.226,17
-647.229,08
-1.704.997,09
-2.352.226,17
IRS corridor accruals Total
IRS Range stability
IRS Range stability Total
Total Class 3b: speculative derivatives with unquantifiable maximum loss
Total Class 3: derivatives not for hedging
Class 3: % of Group total
Total UBI Group
(1) Prior transaction not attributable to catalogue products.
101
29
59.351.222,00
-2.678.064,49
-2.688.779,24
135
300.685.346,21
-22.620.261,51
-22.630.976,26
1,2339%
4,563%
14,094%
12,885%
10.941
6.589.275.749,68
-160.498.888,74 -175.635.784,65
OTC currency derivatives: details of instrument types and classes of customer
Data as at 30th June 2011
Policy
product
class
Type of instrument
Policy customer class
Number of
transactions
Notional
of which negative
MtM
MtM
2
Collars
3: Professional and qualified
2: Non private individual retail
10
9
19
4.238.298,54
1.072.806,98
5.311.105,52
137.738,78
-7.997,56
129.741,22
-9.922,55
-11.035,11
-20.957,66
3: Professional and qualified
2: Non private individual retail
51
1
52
13.313.367,26
729.927,01
14.043.294,27
15.663,00
-33.410,17
-17.747,17
-114.026,25
-33.410,17
-147.436,42
New collars
New collars Total
2: Non private individual retail
2
2
2.608.322,51
2.608.322,51
-85.249,39
-85.249,39
-85.249,39
-85.249,39
Forward synthetic
3: Professional and qualified
2: Non private individual retail
238
57
295
146.264.974,59
26.812.199,80
173.077.174,39
-911.907,58
-55.933,62
-967.841,20
-3.188.864,13
-391.373,86
-3.580.237,99
3: Professional and qualified
2: Non private individual retail
110
24
134
80.362.151,81
5.352.449,30
85.714.601,11
-2.467.176,60
-318.312,91
-2.785.489,51
-3.113.700,76
-318.312,91
-3.432.013,67
Collars Total
Knock in collars
Knock in collars Total
Forward synthetic Total
Knock in forward
Knock in forwards Total
Bonus forwards
Bonus forwards Total
3: Professional and qualified
4
4
1.792.642,12
1.792.642,12
-42.882,91
-42.882,91
-42.882,91
-42.882,91
Options purchased by customer
3: Professional and qualified
2: Non private individual retail
5
2
7
2.814.814,82
298.507,46
3.113.322,28
215.896,37
24.437,33
240.333,70
-
3: Professional and qualified
2: Non private individual retail
232
311
543
151.748.478,06
101.187.836,01
252.936.314,07
-3.767.691,26
-2.623.067,30
-6.390.758,56
-4.630.072,64
-2.939.520,35
-7.569.592,99
1.056
538.596.776,27
-9.919.893,82
-14.878.371,03
95,74%
95,06%
-
91,95%
Options purchased by customer Total
Plafond
Plafond Total
Total Class 2: hedging derivatives with possible exposure
to contained financial risks
Class 2: % of Group total
3
Knock out knock in forward
Knock out knock in forwards Total
3: Professional and qualified
20
20
9.181.168,15
9.181.168,15
-108.561,72
-108.561,72
-292.973,88
-292.973,88
Knock out forward
Knock out forward Total
3: Professional and qualified
3
3
692.131,01
692.131,01
-11.988,99
-11.988,99
-11.988,99
-11.988,99
Options sold by customer
Options sold by customer Total
3: Professional and qualified
24
24
18.095.179,82
18.095.179,82
-997.704,38
-997.704,38
-997.704,38
-997.704,38
47
27.968.478,98
-1.118.255,09
-1.302.667,25
4,26%
4,94%
-
8,05%
Total Class 3: derivatives not for hedging
Class 3: % of Group total
Total UBI Group
1.103
566.565.255,25 -11.038.148,91 -16.181.038,28
OTC commodities derivatives: details of instrument types and classes of customer
Data as at 30th June 2011
Policy product
class
Type of instrument
Policy customer class
Number of
transactions
Notional
MtM
of which negative
MtM
2
Commodity swaps
3: Professional and qualified
2: Non private individual retail
30
2
32
10.633.963,54
267.625,00
10.901.588,54
245.503,92
109.454,00
354.957,92
-186.825,25
-12.995,00
-199.820,25
3: Professional and qualified
3
3
1.475.112,09
1.475.112,09
-28.256,37
-28.256,37
-28.256,37
-28.256,37
35
12.376.700,63
326.701,55
-228.076,62
Total UBI Group
35
12.376.700,63
326.701,55
-228.076,62
Total UBI Group
12.079
7.168.217.705,56 -171.210.336,10
-192.044.899,55
Commodity swaps Total
Forward synthetic
Forward synthetic Total
Total Class 2: hedging derivatives with possible exposure
to contained financial risks
102
OTC derivatives: first five counterparties by bank (figures in euro)
Data as at 30th June 2011
Bank
Centrobanca
Banco di Brescia
Banca Popolare Commercio & Industria
Banca Popolare di Ancona
Banca Regionale Europea
Banca Popolare di Bergamo
Banco di San Giorgio
Banca di Valle Camonica
Banca Carime
UBI Private Investment
Classification Policy
3:
3:
2:
3:
2:
3:
3:
3:
2:
3:
2:
2:
2:
3:
3:
2:
3:
2:
2:
3:
3:
3:
3:
3:
2:
2:
3:
3:
3:
3:
2:
2:
2:
2:
2:
3:
3:
2:
3:
3:
2:
2:
3:
3:
2:
1:
1:
1:
Professional and qualified
Professional and qualified
Non private individual retail
Professional and qualified
Non private individual retail
Professional and qualified
Professional and qualified
Professional and qualified
Non private individual retail
Professional and qualified
Non private individual retail
Non private individual retail
Non private individual retail
Professional and qualified
Professional and qualified
Non private individual retail
Professional and qualified
Non private individual retail
Non private individual retail
Professional and qualified
Professional and qualified
Professional and qualified
Professional and qualified
Professional and qualified
Non private individual retail
Non private individual retail
Professional and qualified
Professional and qualified
Professional and qualified
Professional and qualified
Non private individual retail
Non private individual retail
Non private individual retail
Non private individual retail
Non private individual retail
Professional and qualified
Professional and qualified
Non private individual retail
Professional and qualified
Professional and qualified
Non private individual retail
Non private individual retail
Professional and qualified
Professional and qualified
Non private individual retail
Private individual retail
Private individual retail
Private individual retail
103
MtM
of which negative MtM
-10.983.740
-2.597.768
-1.558.272
-1.502.034
-672.506
-5.831.468
-1.890.755
-1.767.648
-1.561.611
-1.445.905
-4.244.178
-1.263.834
-1.243.543
-1.238.228
-931.838
-3.976.894
-957.414
-934.513
-916.874
-674.200
-2.134.055
-1.281.958
-734.259
-595.169
-407.597
-1.623.780
-1.285.545
-1.258.979
-1.244.606
-1.212.915
-758.095
-753.922
-579.963
-531.846
-511.290
-428.515
-428.505
-384.163
-308.753
-242.121
-299.033
-154.116
-115.881
-109.474
-108.969
-508
-208
-97
-10.983.740
-2.597.768
-1.558.272
-1.725.354
-672.506
-5.831.468
-1.890.755
-1.767.648
-1.561.611
-1.445.905
-4.244.178
-1.263.834
-1.243.543
-1.238.228
-931.838
-3.976.894
-957.414
-934.513
-916.874
-674.200
-2.134.055
-1.299.058
-734.259
-595.169
-407.597
-1.623.780
-1.285.545
-1.258.979
-1.244.606
-1.212.915
-758.095
-753.922
-579.963
-531.846
-511.290
-428.515
-428.505
-384.163
-308.753
-242.121
-299.033
-154.116
-115.881
-109.474
-108.969
-508
-208
-97
Property,
equipment
and
property and intangible assets
Property, equipment
investment property
Property, equipment and investment
property: composition
Figures in thousands of euro
investment
30.6.2011
and
31.12.2010
A. Assets used in operations
1.1 owned
a) land
b) buildings
1.858.742
883.340
1.891.547
884.296
795.935
814.977
c) furnishings
d) electronic equipment
46.665
62.025
50.393
62.646
e) other
70.777
79.235
44.299
22.606
44.075
22.123
21.613
21.518
-
203
113
1.2 acquired through finance leases
a) land
b) buildings
c) furnishings
d) electronic equipment
e) other
Total A
B. Assets held for investment
2.1 owned
a) land
b) buildings
2.2 acquired through finance leases
a) land
b) buildings
Total B
Total (A+B)
80
118
1.903.041
1.935.622
174.717
103.112
71.605
177.042
103.864
73.178
-
-
174.717
177.042
2.077.758
2.112.664
104
Property, equipment and investment
property remained basically unchanged
at 2,1 billion euro in the first half. The
slight change compared to 31st December
2010 (-34,9 million euro) is due almost
entirely to the disposal of operating
assets (-32,8 million euro) relating mainly
to the Parent, network banks, UBI.S and
BDG.
Intangible assets
Intangible assets recognised as at 30th June
2011 amounted to 5,29 billion euro,
compared 5,48 billion euro at the end of
2010.
This item consisted principally of goodwill
amounting to 4,29 billion euro, down by 0,13
billion euro compared to December, and
other finite life intangible assets arising from
the purchase price allocation amounting to
one billion euro (1,06 billion euro in
December).
The Group performed impairment tests (on a
half year basis), which showed impairment
losses totalling 126,3 million euro at
consolidated
level.
A
more
detailed
description
of
the
procedures
and
methodologies employed, along with the
results, is contained in the section on the
notes to the condensed interim consolidated
financial
statements
which
may
be
consulted.
Composition of the item "Goodwill"
Figures in thousands of euro
UBI Banca Scpa
Banco di Brescia Spa
30.6.2011
485.219
521.245
1.267.763
1.267.763
Banca Carime Spa
812.454
812.454
Banca Regionale Europea Spa
Banca Popolare di Ancona Spa
309.121
249.049
309.121
249.049
Banca Popolare Commercio e Industria Spa
232.543
232.543
UBI Pramerica SGR Spa
205.489
205.489
Banco di San Giorgio Spa
155.265
155.265
Banca di Valle Camonica Spa
Banca Popolare di Bergamo Spa
103.621
100.044
103.621
100.044
160.337
UBI Leasing Spa
86.269
B@nca 24-7 Spa
71.132
71.132
IW Bank Spa
65.846
65.846
UBI Factor Spa
Prestitalia Spa
61.491
24.895
61.491
24.895
UBI Banca Private Investm ent Spa
20.189
20.189
UBI Banca International Sa
15.080
15.080
UBI Managem ent Company Sa
9.155
9.155
InvestNet International Sa
UBI Sistem i e Servizi SCpA
2.719
2.122
2.719
2.122
UBI Insurance Broker Srl
2.094
2.094
UBI Fiduciaria Spa
2.052
2.052
Centrobanca Spa
1.573
17.785
UBI Gestioni Fiduciarie Sim Spa
778
778
Società Lombarda Immobiliare Srl - SOLIMM
BY YOU Spa
172
-
172
3.459
-
685
Sintesi Mutui Srl
Changes in the period
31.12.2010
Other goodwill
Total
75
75
4.286.210
4.416.660
Figures in thousands of euro
A. Gross opening balances as at 31st December 2010
A.1 Total net reductions in value
A.2 Net opening balances as at 31st December 2010
B. Increases
C. Decreases
C.1 Sales
C.2 Net impairment losses - write downs
D. Final net balances as at 30th June 2011
D.1 Total net impairment losses
E. Final gross balances as at 30th June 2011
4.605.452
-188.792
4.416.660
-130.450
-4.144
-126.306
4.286.210
-185.167
4.471.377
C.1 Sales
-
thousand euro
BY You Group e Sintesi Mutui: derecognition of goodwill following the disposal of nearly all
the shares held with consequent elimination from the consolidation.
-4.144
Total
-4.144
C.2 Net impairment losses
-
UBI Leasing Spa: impairment loss on goodwill following the results of the impairment test.
-
Centrobanca Spa: impairment loss on goodwill following the results of the impairment test
(including 18.535 thousand euro attributable to the goodwill of UBI Banca arising from the
synergies recognised in 2007 when merger between the former BPU Group and the former
BLP Group took place).
B@nca 24-7 Spa: impairment loss on goodwill following the results of the impairment test
(attributable entirely to UBI Banca goodwill arising from the synergies recognised in 2007
when the merger between BPU and BL took place).
-
-74.068
-34.747
-
17.491
Total
-126.306
Total
-130.450
105
Commitments
to
purchase
property,
investment property and intangible assets
Commitments to purchase property,
equipment and investment property
Assets/amounts
30.6.2011
31.12.2010
A. Assets used in operations
1.1 owned
- land
- buildings
- furnishings
6.706
13
9.558
-
980
472
1.959
222
- electronic equipment
1.619
3.710
- other
3.622
3.667
-
-
- buildings
- furnishings
-
-
- electronic equipment
-
-
1.2 Finance lease
- land
- other
Total A
-
-
6.706
9.558
-
633
-
-
633
-
-
B. Assets held for investment
2.1 owned
- land
- buildings
2.2 Finance lease
- land
- buildings
Total B
Total (A+B)
-
-
-
633
6.706
10.191
106
equipment
and
Commitments to purchase property,
equipment and investment property as
at 30th June 2011 totalled 6,7 million
euro, compared to 10,2 million euro at
the end of 2010. The decrease that
occurred during the first half of 2011 (3,5 million euro) is due mainly to
owned operating assets, of which over a
third as a result of purchases of assets
by UBI.S.
At the end of June 2011, commitments
to purchase intangible assets related
entirely to software and amounted to
24,2 million euro (17,7 million euro in
December 2010).
Non current assets/liabilities held for sale
Non current assets and disposal groups held for sale: composition by type of asset
30.6.2011
Figures in thousands of euro
A. Single assets
A.1 Financial assets
A.2 Equity investments
A.3 Property, equipment and investment property
A.4 Intangible assets
A.5 Other non current assets
31.12.2010
30.6.2010
Total A
6.023
6.023
6.023
2.406
8.429
40.285
40.285
Total B
372
4
642
1.018
-
-
Total C
-
-
-
Total D
250
518
219
987
-
-
B. Groups of assets (discontinued operating units)
B.1 Financial assets held for trading
B.2 Financial assets at fair value
B.3 Available-for-sale financial assets
B.4 Held-to-maturity investments
B.5 Loans to banks
B.6 Loans to customers
B.7 Equity investments
B.8 Property, equipment and investment property
B.9 Intangible assets
B.10 Other assets
C. Liabilities associated with non current assets held for disposal.
C.1 Borrowings
C.2 Securities
C.3 Other liabilities
D. Liabilities associated with disposal groups held for disposal
D.1 Due to banks
D.2 Due to customers
D.3 Securities issued
D.4 Financial liabilities held for trading
D.5 Financial liabilities at fair value
D.6 Provisions
D.7 Other liabilities
As regards single assets held for disposal, the 6 million euro recognised as at 30th June 2011 –
relating to two properties of the Parent located in Brescia – is less than the amount of 8,4
million euro reported in December, due to the full disposal of software by UBI.S. The amount
as at 30th June 2010 on the other hand, related mainly to properties belonging to BPB
Immobiliare destined for sale.
Groups of assets held for sale recognised as at 30th June 2011 relate to the planned
contribution by UBI Pramerica to Tages Capital SGR of operations consisting of three hedge
funds, in accordance with an agreement for a strategic alliance between the two companies
signed in June.
107
Provisions for risks and charges
Provisions for risks and charges: composition
Figures in thousands of euro
30.6.2011
1. Company pension funds
2. Other provisions for risks and charges
2.1 litigation
2.2 personnel expense
2.3 other
TOTAL
31.12.2010
67.022
68.082
268.035
235.490
108.723
77.286
113.868
41.423
82.026
80.199
335.057
303.572
Provisions for risks and charges - other provisions
Figures in thousands of euro
30.6.2011
31.12.2010
1. Provision for revocation risks
2. Provision for bonds and default
26.740
10.075
29.161
10.155
3. Other provisions for risks and charges
45.211
40.883
TOTAL
82.026
80.199
Total provisions for risks and charges as at 30th June amounted to 335,1 million euro, an
increase of 31,5 million euro compared to 303,6 million euro at the end of the year. The
increase mainly reflects the recognition in the first half of 2011 personnel expense relating to
variable components of remuneration and the renewal of the national labour contract.
Contingent liabilities
Contingent liabilities
Figures in thousands o f euro
30.6.2011
for personnel litigation
for revocation risks
for compounding of interest
31.12.2010
266
2.209
1.329
246
2.857
1.394
855
73.292
660
73.390
for tax litigation
178.248
183.600
TOTAL
256.199
262.147
for claim risks
for other litigation
As shown in the table, contingent liabilities fell slightly compared to the end of 2010, (-5,9
million euro) attributable almost entirely to tax litigation which continues to represent
approximately 70% of the total for the item.
108
Equity and capital adequacy
Reconciliation between equity and profit of the Parent with consolidated equity as at 30th June 2011 and profit
for the period then ended
Figures in thousands of euro
of which:
Profit for the period
Equity
Equity and profit for the period in the accounts of the Parent
Effect of consolidation of subsidiaries including joint ventures
Effect of measuring other significant equity investments using the equity method
Dividends received during the period
11.394.353
210.917
1.748.557
31.901
213.243
10.499
-
-178.369
Other consolidation adjustments (including the effects of the PPA)
-1.101.860
-4.580
Equity and profit for the period in the consolidated accounts
12.072.951
251.710
The consolidated equity of the UBI Banca Group as at 30th June 2011, inclusive of profit for
the period, amounted to 12.073 million euro compared to 10.979 million euro at the end of
2010.
As shown in the statement of changes in consolidated equity contained among the mandatory
condensed interim consolidated financial statements, the change, amounting to 1.094 million
euro, that occurred in the first half of 2011 is attributable to:
• the allocation of 102,2 million euro of 2010 consolidated profit to dividends and other
uses1;
• the positive impact, totalling 906,6 million euro, resulting from the increase in the share
capital which as at 30th June 2011 had led to the issue of 242.331.448 new shares
following the exercise of rights:
-
+605,8 million euro the impact on share capital;
+300,8 million euro the increase in the share premium reserve, inclusive of the deduction from that
item of the expenses incurred for the increase in the share capital net of tax (16,2 milioni);
• the positive impact on consolidated income generated by the increase on aggregate of 47,9
million euro in the fair value reserve. This consisted of +47,2 million euro relating to
available-for-sale financial assets, +1,8 million euro to “Actuarial gains/losses on defined
benefit plans”, +0,6 million euro to “Special revaluation laws” and -1,7 million to cash flow
hedges;
• a decrease on aggregate in reserves of profits amounting to 10 million euro. This included: 9,2 million euro relating to the public tender offer to purchase IW Bank shares; -1,4 million
euro for the increase in the investment in
Banco di San Giorgio; +2 million euro for Fair value reserves attributable to the Group: composition
the positive impact on the equity of Swiss Figures in thousands of euro
30.6.2011
31.12.2010
subsidiaries due to exchange rate
Available-for-sale financial assets
-264.294
-311.493
differences;
Cash flow hedges
-2.300
-619
• the recognition of profit for the period of
251,7 million euro.
Foreign currency differences
Actuarial gains/losses
Special revaluation laws
TOTAL
-243
-12.695
-243
-14.518
73.711
73.146
-205.821
-253.727
As shown in the table, the increase
mentioned above of 47,2 million euro in the “fair value reserve for available-for-sale financial
assets” is attributable mainly to debt instruments held in portfolio (net of tax and the portion
attributable to non-controlling interests). These assets recorded increases in fair value of 65,5
million euro – including 55,8 million euro relating to the UBI Banca portfolio and to
government securities in particular (over 80%) – and reductions in fair value amounting to 21
million euro. Debt instruments held by the Parent accounted for 6,2 million euro of the latter
(90% consisting of other bonds).
1 The profit was then fully drawn on with an allocation to reserves of 69,9 million euro.
109
Equity instruments recorded a transfer from the positive reserve to the income statement of
5,8 million euro, relating almost entirely to the disposal of the interest held in London Stock
Exchange by UBI Banca (again net of tax), completed in May.
Fair value reserves of available-for-sale financial assets attributable to the Group: composition
30.6.2011
Figures in thousands of euro
Positive
reserve
Negative
reserve
31.12.2010
Positive
reserve
Total
Negative
reserve
Total
1. Debt instruments
82.322
-395.789
-313.467
66.715
-431.818
-365.103
2. Equity instruments
3. Units in O.I.C.R.
(collective investment instruments)
4. Financing
52.169
-4.022
48.147
58.225
-3.579
54.646
8.620
-
-7.594
-
1.026
-
9.124
-
-10.160
-
-1.036
-
143.111
-407.405
-264.294
134.064
-445.557
-311.493
TOTAL
Fair value reserves of available-for-sale financial assets attributable to the Group: changes in the period
Figures in thousands of euro
1. Opening balances as at 1st January 2011
Debt
instruments
Equity
instruments
OICR units
(co llective
investment
instruments)
Financing
Total
-365.103
54.646
-1.036
-
-311.493
78.309
65.485
6.772
2.761
2.035
546
6.659
3.749
1.967
-
87.729
71.269
9.285
- following impairment losses
2.084
495
1.821
-
4.400
- from disposal
4.688
51
146
-
4.885
2.3 Other changes
6.052
180
943
-
7.175
-26.673
-21.031
-
-9.260
-3.352
-
-4.597
-1.036
-
-40.530
-25.419
-
-1.181
-4.461
-5.795
-113
-2.438
-1.123
-
-9.414
-5.697
-313.467
48.147
1.026
-
-264.294
2. Positive changes
2.1 Increases in fair value
2.2 Transfer to income statement of negative reserves
3. Negative changes
3.1 Reductions in fair value
3.2 Impairment losses
3.3 Transfer to income statement of positive reserves: from
disposal
3.4 Other changes
4. Closing balances as at 30th June 2011
Capital adequacy
The supervisory capital of the UBI Group as at 30th June 2011 amounted to approximately
12,5 billion euro (10,5 billion euro at the end of 2010), while risk weighted assets, amounting
to 95,8 billion euro (94,4 billion euro in December), related mainly to credit and counterparty
risk.
Supervisory capital recorded substantial growth in the first half of 2011. The tier one capital
benefited mainly from the following: the operation to increase the share capital (concluded in
July); the capitalisation of profits for the period net of an estimate of dividends to be paid in
2012; a reduction in intangible assets (due mainly to the impact of impairment losses
recognised in the income statement); and the elimination of the negative filter relating to the
substitute tax on goodwill 2 . Growth in tier two capital was equally significant, mainly
attributable to changes in subordinated liabilities. More specifically, the issue of lower tier two
subordinated liabilities placed with retail customers (for a total nominal amount of 800 million
euro) more than compensated for the issue that was called during the first half (lower tier two
of approximately 155 million euro nominal).
2 Bank of Italy, Supervisory Bulletin No. 3, March 2011, “Communication of 31st March 2011 – Prudential filter relating to the
substitute tax on goodwill”. This provision was issued following measures contained in the “thousand extensions” decree concerning
deferred tax assets.
110
Capital ratios
(Basel 2 standardised approach)
30.6.2011
Figures in thousands of euro
Tier 1 capital before filters
Preference shares and savings/privileged shares attributable to non controlling interests
Tier 1 capital filters
Tier 1 capital after filters
Deductions from tier 1 capital
Tier 1 after filters and specific deductions (Tier 1)
Supplementary capital after filters
Deductions from supplementary capital
Supplementary capital after filters and specific deductions (Tier 2)
Deductions from tier 1+supplementary capital
31.12.2010
8.017.691
6.766.798
489.191
489.191
-32.524
-73.593
8.474.358
-136.735
7.182.396
-134.508
8.337.623
7.047.888
4.416.664
-136.735
3.770.505
-134.508
4.279.929
3.635.997
-150.352
Total supervisory capital
-147.685
12.467.200
10.536.200
7.093.850
6.952.925
77.743
106.636
489.312
-
489.312
-
7.660.905
7.548.873
Nominal amount
-
-
Amount eligible
-
-
95.761.304
94.360.909
Credit and counterparty risk
Market risk
Operational risk
Other prudential requirements
Total prudential requirements
Subordinated liabilities Tier 3
Risk weighted assets
Core tier 1 ratio after specific deductions from tier 1 capital (tier 1 capital net of preference
shares/risk w eighted assets)
8,20%
6,95%
Tier 1 capital ratio
(tier 1 capital/Risk weighted assets)
8,71%
7,47%
13,02%
11,17%
Total capital ratio
[(Supervisory capital+tier 3 eligible)/risk weighted assets]
18th
23rd
With a provision of
May 2010 and a later communication of
June 2010 (“Clarification of supervisory measures concerning supervisory capital –
prudential filters”), the Bank of Italy issued new supervisory instructions for the treatment of fair value reserves relating to debt instruments held in the
“available-for-sale financial assets” portfolio for the purposes of calculating supervisory capital (prudential filters). More specifically, as an alternative to the
“asymmetric approach” (full deduction of net losses from the tier one capital and inclusion of 50% of the net gains in the tier two capital) already provided for
by Italian regulations, it was permitted – in compliance with 2004 CEBS guidelines – to completely neutralise gains and losses recognised in the reserves
mentioned (“symmetrical approach”) subsequent to 31st December 2009, but limited to securities issued by the central governments of countries belonging to
the European Union. The Group decided to take advantage of the option and reported the decision to the Bank of Italy on 29 June 2010. It was therefore
applied uniformly by all members of the banking Group, commencing with the calculation of supervisory capital as at 30th June 2010.
Compliance with capital adequacy requirements at the end of June resulted in a capital
requirement of approximately 7,7 billion euro, a slight increase compared to the figure in
December (+0,1 billion euro), the result of an increase in the absorption of capital for credit
and counterparty risk, against a reduction in the capital requirement for market risk.
The increase in the capital aggregates reported above resulted in an appreciable improvement
in all the capital ratios calculated on the basis of the Basel 2 standardised approach: at the
end of June the core tier one ratio and the tier one ratio stood at 8,20% and 8,71%
respectively (6,95% and 7,47% in December), while the total capital ratio stood at 13,02%
(11,17% in December)3.
If the operations on capital performed in July 2011 are also considered4, the ratios mentioned
must be increased by a further 8 basis points.
3 As already reported, savings shares and privileged shares have been excluded from the core tier one capital since 31st December
2010, while they are included in the tier one capital.
4 See the section “Significant events in the first half of 2011”. for further information.
111
TYPE OF ISSUE
ISSUER
COUPON
BPB CAPITAL TRUST
TIER ONE CAPITAL
BANCA LOMBARDA PREFERRED
SECURITIES TRUST
BPCI CAPITAL TRUST
UNIONE DI BANCHE ITALIANE
Ordinary subordinated bond issues
(Lower Tier 2)
EARLY REDEMPTION
CLAUSE
NOMINAL
AMOUNT
IAS AMOUNT
30.6.2011
31.12.2010
2001/perpetual - mixed rate - Currency euro ISIN
XS0123998394
Until 14-2-2011 fixed rate of 8,364%; from 15-2-2011 variable
rate Euribor 3M + 5,94%.
perpetual
(*)
227.436
237.995
244.087
2
2000/perpetual - mixed rate - Currency euro ISIN
XS0108805564
Until 9-3-2010 fixed rate of 8,17%; from 10-3-2010 to 9-3-2011
variable rate Euribor 3M + 3,375%; from 10-3-2011 variable rate
Euribor 3M + 5,94%.
perpetual
(*)
124.636
125.179
126.905
3
2001/perpetual - mixed rate - Currency euro ISIN
XS0131512450
Until 26-6-2011 fixed rate of 9,00%; from 27-6-2011 variable rate
Euribor 3M + 5,94%.
perpetual
(*)
101.388
101.475
106.899
4
2006/2016 - variable rate EMTN ISIN XS0259653292 - Quarterly Euribor 3M + 0,50% for years 1-5; Euribor 3M + 1,10%
Currency euro
for years 6-10.
1
Innovative equity instruments
MATURITY
DATE
30-6-2016
Call 30-6-2011
Redemption by fixed
rate annual amortisation
schedule from 5-112013
5
2010/2017 - fixed rate ISIN IT0004645963 - Currency
Half year fixed rate 4,30%.
euro Listed on MOT (electronic bond market)
5-11-2017
6
2004/2014 - variable rate ISIN IT0003754949 Currency euro
Half year Euribor 6M + 0,125% for years 1-5; Euribor 6M +
0,725% for years 6-10.
23-12-2014
7
2004/2014 - variable rate ISIN IT0003723357 Currency euro
Half year Euribor 6M + 0,125% for years 1-5; Euribor 6M +
0,725% for years 6-10.
22-10-2014
-
-
154.488
400.000
378.588
380.789
110.597
109.523
109.477
137.896
136.821
136.930
28-11-2015
Redemption by fixed
rate annual amortisation
schedule from 28-112011
599.399
593.429
591.835
8
2008/2015 - variable rate ISIN IT0004424435 Currency euro Listed on MOT (electronic bond
market)
9
2006/2018 - variable rate EMTN ISIN XS0272418590 - Quarterly Euribor 3M + 0,50% for years 1-7; Euribor 3M + 1,10%
Currency euro
for years 8-12.
30-10-2018
Call 30-10-2013
211.650
211.890
211.754
10
2006/2016 - variable rate EMTN ISIN XS0278107999 - Quarterly Euribor 3M + 0,40% for years 1-5; Euribor 3M + 1,00%
Currency euro
for years 6-10.
19-12-2016
19-12-2011 (**)
136.100
136.088
136.070
11
2009/2016 - variable rate ISIN IT0004457187 Currency euro Listed on MOT (electronic bond
market)
13-3-2016
Redemption by fixed
rate annual amortisation
schedule from 13-32012
211.992
209.438
208.919
12
2009/2019 - mixed rate ISIN IT0004457070 Currency Half year fixed rate 4,15% until 2014; subsequently variable
euro - Listed on MOT (electronic bond market)
Euribor 6M + 1,85%.
13-3-2019
13-3-2014
370.000
375.986
381.946
30-6-2016
Redemption by fixed
rate annual amortisation
schedule from 30-62012
156.837
154.522
154.171
30-6-2019
30-6-2014
365.000
361.795
366.191
300.000
298.709
301.729
150.469
TIER TWO CAPITAL
Quarterly Euribor 3M + 0,85%.
Quarterly Euribor 3M + 1,25%.
13
2009/2016 - variable rate ISIN IT0004497068 Currency euro Listed on MOT (electronic bond
market)
14
2009/2019 - mixed rate ISIN IT0004497050 Currency Half year fixed rate 4% until 2014; subsequently variable Euribor
euro - Listed on MOT (electronic bond market)
6M + 1,85%.
Quarterly Euribor 3M + 1,25%.
15
2010/2017 - fixed rate ISIN IT0004572878 Currency
euro - Listed on MOT (electronic bond market)
Half year fixed rate 3,10%.
23-2-2017
Redemption by fixed
rate annual amortisation
schedule from 23-22013
16
2010/2017 - variable rate ISIN IT0004572860 Currency euro Listed on MOT (electronic bond
market)
Half year variable rate Euribor 6M + 0,40%
23-2-2017
Redemption by fixed
rate annual amortisation
schedule from 23-22013
152.587
150.905
17
2011/2018 - fixed rate ISIN IT0004718489 Currency
euro - Listed on MOT (electronic bond market)
Half year fixed rate 5,50%.
16.6.2018
Redemption by fixed
rate annual amortisation
schedule from 16-62014
400.000
390.469
-
18
2011/2018 - fixed rate ISIN IT0004723489 Currency
euro - Listed on MOT (electronic bond market)
Half year fixed rate 5,40%
30-6-2018
Redemption by fixed
rate annual amortisation
schedule from 30-62014
400.000
390.671
-
Quarterly Euribor 3M + 0,80%
18-6-2012
No provision
250.000
250.180
250.161
Half yearly fixed rate 6%
25-6-2012
No provision
164.000
164.349
164.499
4.819.518
4.778.012
4.177.319
BANCA POPOLARE DI
BERGAMO
Hybrid capitalisation instruments (Upper
Tier 2)
19
BANCA CARIME
Hybrid capitalisation instruments (Upper
Tier 2)
20
2001/2012 - variable rate ISIN IT0003210074 Currency euro - Listed on MOT (electronic bond
market)
2002/2012 - fixed rate 6% ISIN IT0003302863 Currency euro
TOTAL
(*) Subsequent to the early redemption dates, the securities are callable every three months. (**) An application for authorisation for the early redemption has been sent to the Bank of Italy.
112
The 2011 European stress test exercise
UBI Banca, together with four other Italian banks, took part in the 2011 European stress tests
conducted by the European Banking Authority (EBA) – in co-operation with the Bank of Italy,
the European Central Bank (ECB), the European Commission (EC) and the European
Systemic Risk Board (ESRB) – on 90 banks representing more than 65% of the total assets of
the European banking system. The results were published simultaneously on 15th July 2011.
The tests were designed to assess the ability of European banks to resist severe shocks and
their degree of capital adequacy if hypothetical stress events occurred under particularly
adverse conditions.
The hypotheses and the methodology of the exercise were designed to assess the capital
adequacy of banks using a benchmark of a core tier one ratio of 5% and to increase market
confidence in the soundness of the banks taking part in the exercise.
The adverse scenario used was defined by the ECB and covered a time horizon of two years
(2011-2012)5 . The stress test was conducted assuming that the statements of financial
position of the banks had remained unchanged compared to December 2010. Consequently it
did not consider the effects of company strategies and/or future management initiatives and it
did not constitute a profit forecast of the single banks taking part.
84
UBI Banca passed the stress test with a level of capitalisation well above the benchmark set
[and also above the observation threshold set (5%-6%)], which confirmed the soundness of the
Group. In the adverse scenario hypothesised the core tier one ratio estimated on the
consolidated figures for UBI Banca would have risen from 7,0% in December 2010 to 7,4% at
the end of 2012.
This result incorporates the effects of the increase in the share capital, which was fully
underwritten and announced to the market in a binding manner by 30th April 2011. It also
excludes the effects of future action taken to strengthen capital available to management.
As already reported UBI Banca has a convertible bond in issue “UBI 2009/2013 convertibile
con facoltà di rimborso in azioni” for 639 million euro which is not included in the capital ratios
reported above. No decision has been taken or planned concerning the conversion of that
instrument which currently constitutes only one source of funding. However, if it were
converted, the instrument would represent approximately 70 basis points of the core tier one
ratio, raising it to 8,1% as at 31st December 2010 under the adverse scenario.
It should also be considered, when assessing the UBI Banca results, that the capital ratios as
at 31st December 2010 were calculated on the basis of the standardised approach. UBI Banca
plans to adopt partial implementation of advanced approaches by the end of 2012.
5 The scenario involved a decrease in GDP and adverse performance by all the main macroeconomic variables with a related estimated
impact on PD and LGD and as a result on forecasts of impairment losses in the lending portfolio. A greater than expected increase in
interest rates was hypothesised together with a widening of sovereign debt spreads with a consequent increase in the cost of funding
and falls in equity prices.
113
Information on share capital, the shares,
dividends paid and earnings per share
Information on share capital and shareholder structure
The share capital of UBI Banca as at 30th June amounted to 2.203.694.285 euro, consisting of
881.477.714 ordinary shares with a nominal value of 2,5 euro; as at 18th July 2011 it had
risen to 2.254.366.897,50 euro1, consisting of 901.746.759 shares. All the outstanding shares
have normal dividend entitlement from 1st January 2010.
The legislation in force relating to ‘popular’ co-operative banks (Art. 30 of the Consolidated
Banking Act), which is also cited in article 18 of the corporate by-laws, limits the percentage
interest of the share capital that may be owned by registered and unregistered shareholders to
0.50% of the share capital.
The limit on the size of shareholdings does not apply to collective investment companies,
which are subject to the limits laid down in the rules of each of them.
Each registered shareholder may cast only one vote, irrespective of the number of shares held.
Under Article 120 of the Consolidated Finance Act, persons holding more than 2% of the share
capital in a share issuer which has Italy as its member state of origin must notify this to the
company and to the Consob (Italian securities market authority).
On the basis of reports received, at the date of this report the following holdings of greater
than 2% existed:
- Silchester International Investors LLP, with 4,09% (held for asset management purposes,
reported on 26th July 2011. The previous percentage declared in November 2010 was 2,292%);
-
BlackRock Inc., with 2,854% (reported on 20th May 2010);
Foundation Cassa di Risparmio di Cuneo with 2,2784%2;
Foundation Banca del Monte di Lombardia with 2,2548%2;
Norges Bank (the central bank of Norway) with 2,03% (declared on 25th August 2011. On 16th
August the percentage declared was 2,06%, which fell temporarily to 1,92% on the following 18th
August).
On the basis of an updating of the shareholders’ register, registered shareholders numbered
79.884 as at 30th March 2011. If account is also taken of the shareholders who are not listed
in the shareholders’ register, then the total of registered and unregistered shareholders
numbered approximately 146 thousand.
1 Details of the issuances performed in 2011 are reported in the section “Significant events in the first half of 2011”, in the part on the
increase in the share capital and on the other changes that affected the share capital.
2 Positions originating as a consequence of the merger of Banca Lombarda e Piemontese Spa in April 2007.
In accordance with Law No. 10 of 26th February 2011, for all those who as at 31st December 2009 held an investment in the share
capital greater than that set in paragraph 2 Art. 30 of the consolidated banking act, if exceeding that limit is the result of
concentration transactions between banks or between investors and while it is understood that the investment may not be
increased, the time limit for selling the shares which exceed 0,50% of the share capital has been put back until 31st December 2014.
114
Share performance
The UBI Banca share is traded on the Mercato Telematico Azionario (electronic stock
exchange) of Borsa Italiana in the blue chip segment and forms part of the 40 shares in the
FTSE/Mib Index.
Share performance in the first half of 2011 was yet again persistently weak. After partial
recoveries at the beginning of the year, equity markets were affected firstly by tensions which
spread progressively through the Middle East and North Africa (due to possible repercussions
on oil prices), which were then added to by concerns over the economic effects of the
earthquake in Japan. Subsequently the greatest fears were over the stability of the single
currency, due to the growing sovereign debt difficulties of some European countries (Greece,
Ireland, Portugal and Spain), made worse, from May onwards, by announcements by the main
rating agencies that they had placed Italian public debt under review (outlook negative by S&P
in May; under review for possible downgrade by Moody’s in June).
Despite the fall in the second quarter, on 30th June 2011 the FTSE Italia All-Share stood at
practically the same level as in December 2010 (-0,1%), while the banking sector fell by 9,4% –
penalised by the heightened perception of risk because of the Italian government securities
held in portfolio and prospects of higher costs for funding following the widening of spreads.
In this context the UBI Banca share fell even further to below four euro, although it
manifested no critical conditions in terms of holding government securities of crisis hit
countries, or imbalanced positions in other sectors and despite the positive conclusion of the
capital increase.
Performance comparisons for the Unione di Banche Italiane share
30.6.2011
A
31.3.2011
B
A mounts in euro
%
change
A/B
30.12.2010
C
%
change
A/C
30.9.2010
D
30.6.2010
E
%
change
A/E
%
change
A/F
2.4.2007
F
Unione di Banche Italiane shares
- official price
3,848
6,062
-36,5%
6,591
-41,6%
7,065
7,106
-45,9%
21,486
-82,1%
- reference price
3,882
6,030
-35,6%
6,550
-40,7%
7,110
7,100
-45,3%
21,427
-81,9%
-
0,0009
0,0032
-
0,0091
0,0163
-
-
-
102,360
106,760
-4,1%
104,850
-2,4%
106,000
106,980
-4,3%
-
-
FTSE Italia All-Share index
20.913
22.454
-6,9%
20.936
-0,1%
21.098
19.869
5,3%
42.731
-51,1%
FTSE Italia Banks index
15.575
18.116
-14,0%
17.190
-9,4%
20.061
19.267
-19,2%
54.495
-71,4%
Warrants 2009/2011 (1)
Convertible bonds 2009/2013 (2)
-
Source Datastream
(1)
(2)
traded on the MTA (electronic stock exchange) since 25th June 2009; (quoted on 25th June 2009 0,0293 euro); last price quoted: 0,0001 euro on 24th
June.
traded on the MTA (electronic stock exchange) since 20th July 2009 (quoted on 20th July 2009: 107,190 euro)
After the end of the first half of 2011 the international scenario worsened in both the USA –
due to the possibility of recession and difficulties encountered in raising the federal debt
ceiling – and in Europe due to fears over sovereign debts, and Italian debt in particular (with
the BTP-bund spread widening to over 400 basis points), which further penalised prices in the
banking sector.
With the risk attributed by financial markets to the Italian financial system priced in, while it
had successfully passed the European stress tests, the UBI share fell below the three euro
mark in August.
Volumes of trading in UBI Banca shares on the electronic stock exchange amounted to 823
million shares traded for 4,5 billion euro in the first six months of 2011. A total of 746 million
share were traded in 2010 for a value of 6,1 billion euro.
115
Performance of the UBI Banca share
since 1st July 2003(*) and volumes traded
Graph No. 1
120.000.000
115.000.000
110.000.000
105.000.000
100.000.000
95.000.000
90.000.000
85.000.000
80.000.000
75.000.000
70.000.000
65.000.000
60.000.000
55.000.000
50.000.000
45.000.000
40.000.000
35.000.000
30.000.000
25.000.000
20.000.000
15.000.000
10.000.000
5.000.000
0
Volumes
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
l
2003
o
g
a
2004
l
o
g
a
2005
l
o
g
a
2006
l
o
g
a
2007
l
o
g
a
2008
l
o
g
2009
a
l
o
g
a
2010
l
o
g
2011
a
l
(*) reference prices in euro
Performance of the FTSE Italia All-Share index, theFTSE Italia Banks index and the
UBI Banca share(*) since 2nd April 2007
110
105
100
95
90
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
Graph No. 2
FTSE Italia All-Share
UBI Banca
FTSE Italia banks
2007
2008
2009
2010
2011
a m g l a s o n d g f m a m g l a s o n d g f m a m g l a s o n d g f m a m g l a s o n d g f m a m g l a
(*) reference prices in euro
Affected by the trends just reported, the stock market capitalisation as at 30th June (calculated
on the official price) had fallen to 3,4 billion euro (4,2 billion euro in December 2010), which
positioned UBI Banca in fourth place among Italian banking groups and in first place among
“popular” banks. At European level, the UBI Group lies among the first fifty in the
classification drawn up by the Italian Banking Association in its European Banking Report,
which considers the countries of the European Monetary Union plus Switzerland.
The main information concerning the UBI Banca share is summarised below along with the
principal stock market indicators which have been calculated using consolidated figures.
116
The UBI Banca share and the main stock market indicators
First half 2011
Number of shares outstanding at the end of period/year
FY 2010
881.477.714
639.145.902
Average price of the UBI share (average of the official prices quoted daily by Borsa Italiana Spa) - in euro
6,171
8,224
Minimum price (recorded during trading) - in euro
3,628
6,275
Maximum price (recorded during trading) - in euro
7,970
10,530
Dividend per share - in euro
0,15
0,15
2,43%
1,82%
95.871.925,50
95.871.925,50
13,41
16,91
Book value calculated by deducting goodw ill attributable to the shareholders of the Parent from consolidated equity - in euro
8,65
10,14
Book value calculated by deducting intangible assets attributable to the shareholders of the Parent from consolidated equity - in euro
7,64
8,67
3.392
4.213
Dividend yield (dividend per share/average price)
Total dividends - in euro (*)
Book Value - in euro (Consolidated equity, excluding profit for the period/No. shares) - in euro
Stock market capitalisation at the end of period (official prices) - in millions of euro
Price/book value [Stock market capitalisation at the end of the year/(consolidated equity of the Group excluding profit for the year)]
0,29
0,39
Price/book value calculated by deducting goodw ill attributable to the shareholders of the Parent from consolidated equity
0,44
0,65
Price / book value calculated by deducting intangible assets attributable to the shareholders of the Parent from consolidated equity
0,50
0,76
0,6722
0,2633
EPS - Earning per share (consolidated profit per share in accordance with IAS 33) - in euro (annualised)
(*)
The total dividend payout for 2010 was calculated on the 639.146.170 shares with dividend entitlement from 1st January 2010 existing at the date of the
approval of the proposal to declare a dividend by the Management Board.
Dividends paid
A dividend was paid for the year 2010 on 23rd May 2011 – with value date 26th May against
coupon No. 11 – for a total amount of 95.871.925,50 euro, corresponding to 0,15 euro on each
of the 639.146.170 UBI Banca shares in issue on the date of the approval of the proposal by
the Management Board.
Earnings per share
JANUARY-JUNE 2011
Annualised attributable earnings
(thousands of euro)
Weighted average ordinary
shares
Earnings per share
(in euro)
Basic EPS
260.611
648.686.703
0,4018
“Annualised” Basic EPS
521.222
775.446.312
0,6722
Diluted EPS
260.611
678.432.782
0,3841
“Annualised” diluted EPS
521.222
790.962.091
0,6590
Annualised attributable earnings
(thousands of euro)
Weighted average ordinary
shares
Earnings per share
(in euro)
Basic EPS
168.291
639.145.902
0,2633
Diluted EPS
168.291
639.145.902
0,2633
Annualised attributable earnings
(thousands of euro)
Weighted average ordinary
shares
Earnings per share
(in euro)
FY 2010
JANUARY-JUNE 2010
Basic EPS
97.681
639.145.902
0,1528
“Annualised” Basic EPS
195.361
639.145.902
0,3057
Diluted EPS
97.681
639.145.902
0,1528
“Annualised” diluted EPS
195.361
639.145.902
0,3057
117
Information on risks and
on hedging policies
Banking Group risks
The measurement of risks in the strategic and competitive scenarios in which the Group has
set its annual and medium term planning takes the form of defining limits and rules for the
assumption of risk, which are able to guarantee capital strength and value creation oriented,
sustainable growth.
The key principles on which risk analysis and management are based are as follows:
- rigorous containment of financial and credit risks and strong management of all types of
risk;
- the use of a sustainable value creation approach to the definition of risk appetite and the
allocation of capital;
- definition of the Group’s risk appetite with reference to specific types of risk and/or specific
activities in a set of policy regulations for the Group and for the single entities within it.
The assessments performed by the Parent, UBI Banca, were carried out with account taken of
the operating specifics and the relative profiles of each company in the Group in order to
formulate integrated and consistent policies and guidelines. In order to achieve that objective,
the governing bodies of the Parent perform their functions with reference not only to their own
corporate reality but also by assessing the operations of the Group as a whole. The policies set
by the Supervisory Board are then translated into operational regulations by the Management
Board of the Parent.
1.1 Credit risk
Qualitative information
In the performance of its traditional banking business, the Group is exposed to the risk that
the loans it grants will not be repaid by borrowers when they are due and that partial or full
impairment losses must be recognised on them. More specifically the risk profile for lending is
sensitive to the performance of the economy as a whole, to the deterioration in the financial
position of counterparties (shortage of liquidity, insolvency, etc.), or to changes in their
competitiveness, to structural or technological changes in corporate debtors and to other
external factors (e.g. changes in legislation, deterioration in the value of financial guarantees
connected with market performance). A further risk factor to which the Group pays particular
attention is the degree of diversification in the lending portfolio among different borrowers and
among the different sectors in which they operate.
The organisational model1 on which the units which manage lending activity is based is as
follows:
- Parent units for centralised monitoring and co-ordination;
- the General Managements of banks and Group companies, to which the following report:
credit departments;
local loan approval centres;
branches;
corporate banking units (CBUs);
private banking units (PBUs).
The characteristics of that organisational model not only ensure strong standardisation
between the units of the Parent and the corresponding units in the network banks, with
consequent linearity in the processes and the optimisation of information flows, but they also
1
This model will be subject to changes when the new “hour glass” model, part of the Business Plan, comes into full operation.
118
provide a clear separation between commercial and credit functions. Loan granting activity is
also differentiated by customer segment (retail/private banking and corporate) and specialised
by the status of the loan: “performing” (managed by retail, private banking and corporate
lending units) and problem (managed by problem loan units). Furthermore, the introduction of
decentralised Local Approval Centres (LACs) in the banking area to support retail branches
and units for private banking customers guarantees effective co-ordination and liaison
between different units operating on the various markets. The Parent oversees credit policy
management, overall portfolio monitoring, the refinement of assessment systems, problem
loan management and compliance with regulations2.
Stage two of the Basel 2 project was concluded during the first half of 2011. Its objective is to
lead the Group to the adoption of the advanced internal rating based (AIRB) approach for the
calculation of minimum capital requirements for the corporate supervisory segment.
Stage 2 consists on the one hand of the improvement of the choices implemented and now
fully operational in the network banks and at Centrobanca and on the other hand of the
revision and refinement of rating systems and estimates of LGD.
The activities conducted during the first half of 2011 were fully in line with project plans and
led to the conclusion of the following activities:
•
estimate of LGD models (updating for Centrobanca and the estimate of a new model for the
network banks);
•
estimate of rating and PD models with substantial improvements in the components of the
corporate models, including the implementation of internally developed models for financial
analysis.
These models were rolled out immediately after the end of the first half of 2011, in July 20113,
when the following processes were reviewed at the same time: market segmentation and
rating; revision and monitoring; override.
Quantitative information
Classification of exposures on the basis of external and internal ratings
Details are given below of:
a) the degree to which exposures to ordinary customers are covered4 by the different internal
rating models in use in the network banks, by market and commercial portfolio;
b) the distribution by classes of the “Master Scale” of the corporate commercial portfolio of the
network banks.
Network banks: degree to which exposures are covered by internal
rating with the UBI internal rating system by market/commercial
portfolio
Network banks: Corporate Market – Distribution of lending by
master scale
97%
MS - Corporate Market
96,18%
96%
0,25
95%
94,65%
0,2
94%
0,15
93%
92%
92,05%
0,1
91%
0,05
90%
0
89%
Corporate
2
3
4
Retail Businesses
Retail private individuals
Part E, section 1, sub-section 1 – Credit Risk in the Notes to the Consolidated Financial Statements as at 31st December 2010 in the
2010 Annual Report may be consulted for a detailed description of organisational aspects, credit policies and systems for the
management, measurement and control of credit risk
Information on the credit rating models and the systems used for the estimation of LGD currently in use (June 2011) along with
details concerning the “Master Scale” for reconciling PDs is given in the relative section of part E, of the Notes to the Consolidated
Financial Statements in the 2010 Annual Report, which may be consulted.
The cover relates to exposure to which PD and LGD parameters are applied in order to calculate collective impairment losses.
119
1.2 – Market risk
1.2.1 Interest rate risk and price risk – supervisory trading book
Qualitative information
General aspects
Information on organisational and methodological aspects, which are unchanged, is given in
Part E, section 1, sub-section 2 – Market Risk of the Notes to the Consolidated Financial
Statements in the 2010 Annual Report, which may be consulted.
The main operational limits for the trading book set for 2011 are given below:
Maximum acceptable loss (MAL) for the UBI Group trading book
One day VaR limit for the UBI Group trading book
Early warning level on MCL
early warning levels on VaR
80,47 million euro
13,21 million euro
70% MCL
80% VaR
Quantitative information
Supervisory trading book: internal models and other methods of sensitivity analysis
The graph below shows the changes in daily VaR that occurred in the first half of 2011, for the
trading portfolios.
Change in market risk: daily market VaR for the Group
in the first half of 2011
5.000.000
4.000.000
3.000.000
2.000.000
1.000.000
27/06/2011
20/06/2011
13/06/2011
06/06/2011
30/05/2011
23/05/2011
16/05/2011
09/05/2011
02/05/2011
25/04/2011
18/04/2011
11/04/2011
04/04/2011
28/03/2011
21/03/2011
14/03/2011
07/03/2011
28/02/2011
21/02/2011
14/02/2011
07/02/2011
31/01/2011
24/01/2011
17/01/2011
10/01/2011
03/01/2011
-
VaR by risk factor calculated on the entire trading book of the UBI Group as at 30th June 2011
is given below.
Trading book of the UBI Banca Group
Currency risk
Interest rate risk
Equity risk
Credit risk
Volatility risk
Diversification effect(1)
Total (2)
30.6.2011
Average
Minimum
Maximum
116.507
1.005.567
377.174
429.067
178.055
(978.631)
166.693
1.911.722
476.128
107.048
252.911
99.862
597.226
133.633
70.325
158.950
243.393
3.942.137
1.528.090
429.067
342.273
1.127.739
2.038.816
796.569
4.156.416
(1) The diversification effect is due to the imperfect correlation betw een the different risk factors present in the Group’s portfolio.
(2) The maximum VaR w as recorded on 27/01 and the minimum VaR on 21/06
120
Backtesting analysis
Backtesting analysis is designed to test the predictive power of the VaR model adopted. It uses
an actual profit and loss calculated on the basis of returns on positions in the portfolio on the
previous day.
The backtesting analysis for the trading book of the UBI Group is given below for the first half
of 2011 in which no days occurred on which the P&L was worse than the VaR calculated.
UBI Group trading book: backtesting for the first half of 2011
2.000.000
1.000.000
-
-1.000.000
-2.000.000
-3.000.000
-4.000.000
-5.000.000
P&L
Theoretical stress tests
The Group has a stress testing
programme designed to analyse
the reaction of portfolios to risk
factor shocks with the objective
of verifying the ability of the
supervisory capital to absorb
very large potential losses and to
identify
possible
measures
needed to reduce risks and
conserve
the
capital
itself.
Details are given below of stress
tests
based
on
theoretical
shocks. They consist of specially
created extreme shifts in interest
rate (short, medium and long
term), credit spread, exchange
rate, equity price and volatility
curves.
Data as at 30th June 2011
VaR
UBI BANCA GROUP TRADING
BOOK
Change in NAV
%
UBI BANCA GROUP
BANKING BOOK
Change in NAV
%
TOTAL UBI BANCA GROUP
Change in NAV
%
Risk Factors IR
Shock
Shock +1bp
2.780
0,00%
-557.304
-0,01%
-554.608
-0,01%
Risk Factors IR
Shock
Shock -1bp
-2.392
0,00%
556.259
0,01%
553.951
0,01%
Risk Factors IR
Shock
Shock +100bp
643.447
0,17%
-60.765.771
-0,62%
-60.130.715
-0,59%
Risk Factors IR
Shock
Shock -100bp
299.283
0,08%
50.921.741
0,52%
51.229.330
0,50%
Risk Factors IR
Shock
Bear Steepening
2.926.772
0,76%
-40.377.777
-0,41%
-37.449.754
-0,37%
Risk Factors IR
Shock
Bull steepening
2.799.080
0,73%
35.501.275
0,36%
38.309.946
0,38%
Risk Factors Equity
Shock
+10%
1.756.050
0,46%
45.703.115
0,47%
47.842.681
0,47%
Risk Factors Equity
Shock
-10%
-1.300.995
-0,34%
-45.703.115
-0,47%
-47.387.625
-0,47%
Risk Factors Volatility
Shock
+20%
72.136
0,02%
342.456
0,00%
414.592
0,00%
Risk Factors Volatility
Shock
-20%
-55.623
-0,01%
-650.042
-0,01%
-705.665
-0,01%
1.383.759
0,36%
-1.041.045
-0,01%
304.891
0,00%
Risk Factors Forex
Shock
+15%
Risk Factors Forex
Shock
-15%
The results of the theoretical
-1.384.034 -0,36%
1.041.045
0,01%
-305.167
0,00%
stress tests performed on the Risk Factors Credit Spread
-1.472.034 -0,38%
-495.258.698 -5,06%
-496.744.522 -4,88%
portfolios of the Group show the Shock
Flight to quality scenario
following:
-2.780.356 -0,72%
-543.612.471 -5,56%
-546.809.790 -5,38%
a
heightened
sensitivity
of
portfolios to credit spread shocks (consistent with the presence of Italian government
securities and corporate securities, which are present in the UBI available-for-sale, the
Centrobanca Corporate and the UBI International Luxembourg portfolios) and, to a lesser
extent, to interest rate shocks (consistent with the presence of bonds and interest rate
derivatives in portfolios) and to equity shocks (consistent with the presence of equity
instruments and derivatives on equity indices in the asset management company mandate
and equity trading portfolios and funds in the UBI Banca available-for-sale portfolio).
121
1.2.2 Interest rate risk and price risk – Banking book
Qualitative information
Information on organisational and methodological aspects, which are unchanged, is given in
Part E, section 1, sub-section 2 – Market Risk of the notes to the Consolidated Financial
Statements in the 2010 Annual Report, which may be consulted.
Quantitative information
The exposure of the UBI Banca Group to interest rate risk in terms of core sensitivity
measured in a scenario of an increase in interest rates of +100 bp on items as at 30th June
2011 amounted to -329,63 million euro (-290,20 million euro as at 31st March 2011
and -346,38 million euro as at 31st December 2010), accounting for 2,64% of consolidated
supervisory capital as at 30th June 2011, compared to a limit of -420 million euro set on that
aggregate by the financial risks policy for 2011 and an early warning threshold on the same
indicator of -350 million euro.
The total level of exposure includes an estimate, consistent with the provisions of the Financial
Risks Policy, of the impact of the early repayment of loans (approximately +193 million euro in
terms of sensitivity) and also the effect of structural ALM action taken using derivatives – even
if subject to a capital requirement for market risk – with the objective of acting on the
individual sensitivity of Group companies (-24,1 million euro).
In detail, the core sensitivity originated by the network banks amounted to approximately -96
million euro, while approximately -65 million euro is attributable to the activities of the
product companies. The Parent contributes a total of approximately -169 million euro,
including -126,7 million euro from banking book assets and liabilities and -42,1 million euro
from structural ALM action taken on Group member companies.
The table below gives the risk measured, gross of the impact of early repayment of mortgages
and loans, for a scenario of a parallel standardised shift of the curve of 200 bp, in compliance
with Basel 2, measured on the tier one and supervisory capital.
Risk indicators - end of period values
30.6.2011
31.12.2010
30.6.2010
parallel shift of +200 bp
sensitivity/tier I
6,67%
9,13%
8,88%
sensitivity/supervisory capital
6,07%
6,06%
5,89%
The limits defined for the trading book are also used for the portfolios in the banking book,
which include assets classified as available-for-sale for IAS purposes (the UBI available-forsale, the Centrobanca Corporate and the IW Bank portfolios) and loans & receivables (the UBI
and Centrobanca portfolios), and for hedge funds. The main operational limits for the banking
book of the UBI Banca Group set for 2011 are given below:
maximum loss for UBI Banking Book portfolios
one day VaR limit for UBI Banking Book portfolios
maximum acceptable loss for investments in hedge funds
two month VaR limit for investments in hedge funds
838,6
126,4
16
10
million
million
million
million
euro
euro
euro
euro
For information purposes, the total VaR for UBI Banca’s banking book portfolios at the end of
June amounted to 58,5 million euro (72,33 million euro as at 31st December 2010) with an
NAV of 9.779,24 million euro (11.043,51 million euro as at 31st December 2010)5.
5
The figures for NAV and VaR are calculated net of intragroup securities and investments in hedge funds.
122
The graph below shows the changes in daily VaR that occurred in the first half of 2011 for the
banking book portfolios of the Group.
80.000.000
75.000.000
70.000.000
65.000.000
60.000.000
55.000.000
27/06/2011
20/06/2011
13/06/2011
06/06/2011
30/05/2011
23/05/2011
16/05/2011
09/05/2011
02/05/2011
25/04/2011
18/04/2011
11/04/2011
04/04/2011
28/03/2011
21/03/2011
14/03/2011
07/03/2011
28/02/2011
21/02/2011
14/02/2011
07/02/2011
31/01/2011
24/01/2011
17/01/2011
10/01/2011
03/01/2011
50.000.000
VaR by risk factor calculated on the entire banking book of the UBI Group as at 30th June
2011 is given below.
Banking Book Portfolio of the UBI Banca Group
30.6.2011
Currency risk
Interest rate risk
Equity risk(1)
Credit risk
Volatility risk
Diversification effect(2)
Total (1) (3)
Average
Minim um
Maxim um
92.498
80.906
63.422
104.605
7.241.337
65.034.182
6.792.093
72.378.637
4.543.576
4.045.950
3.432.609
4.626.047
59.133.994
12.710.941
8.678.983
59.133.994
114.889
176.626
69.816
348.700
68.661.707
58.529.814
76.623.688
(12.596.479)
58.529.814
(1) Does not include VaR on hedge funds.
(2) The diversification effect is due to the imperfect correlation betw een the different risk factors present in the Group’s portfolio.
(3) The maximum VaR w as recorded on 10/02 and the minimum VaR on 30/06
As concerns investments in hedge funds, the relative VaR is calculated using a “style analysis”
method with a confidence interval of 99% and a holding period of two months.
At the end of June, the method for calculating VaR was applied to funds amounting to
approximately 140 million euro. The VaR used was approximately 7,75 million euro (against a
limit of 10 million euro). The investments were denominated exclusively in euro (87% of NAV)
and in USD (13% of NAV).
1.2.3 Currency risk
Currency risk is calculated on the basis of mismatches existing between assets and liabilities
in foreign currency (spot and forward), relating to each currency other than euro. The main
sources of risk are as follows:
lending and funding in foreign currency with corporate and retail customers;
holding financial instruments denominated in foreign currency;
holding units in OICR (collective investment instruments) for which, even if they are
denominated in euro, it is not possible to determine the composition in foreign currency of
the underlying investments and/or for which the maximum limit on investment in foreign
currency is not known and binding;
dealing in foreign bank notes.
123
Foreign currency risk in the Group regards banking book exposures originated by the network
banks and/or by the product companies – resulting from their commercial activities – and
their positions relating to trading in foreign currency.
Trading on foreign exchange markets is performed by the Group treasury function which
operates by using instruments such as forward trades, forex swaps, domestic currency swaps
and currency options, thereby optimising risks resulting from Group positions in foreign
currency.
Exposure to currency risk is calculated starting from the net foreign currency position using a
method based on supervisory regulations. Equity investments and tangible assets are not
included in the calculation of the net foreign currency position.
Further information on currency risk is given in part E, section 1, sub-section 2 – market risk
– of the Notes to the Consolidated Financial Statements in the 2010 Annual Report, which
may be consulted.
1.3 Liquidity risk
Qualitative information
Liquidity risk is defined in the UBI Banca Group as the risk of the failure to meet payment
obligations which can be caused either by an inability to raise funds or by raising them at
higher than market costs (funding liquidity risk), or the presence of restrictions on the ability
to sell assets (market liquidity risk) with losses incurred on capital account.
Structural liquidity risk is the risk resulting from inadequate matching of maturities for assets
and liabilities.
The primary objective of the liquidity risk management system is to enable the Group to meet
its payment obligations and to raise additional funding at a minimum cost and without
prejudice to potential future income.
The reference framework for the measurement, monitoring and management of exposure to
liquidity risk is defined annually as part of the Financial Risks Policy and the relative
regulations approved by the corporate governance bodies.
Corporate risk policies are supplemented by a contingency funding plan (CFP), an emergency
plan for liquidity management, the main aim of which is to protect the Bank’s assets in
situations of liquidity drainage, by putting in place crisis management strategies and
procedures to find sources of funding in cases of emergency.
The policy for the management of the financial risks of the UBI Banca Group approved for
2011 and the relative regulations giving details of operational limits significantly revised both
the system for monitoring liquidity risk and that for structural balance between assets and
liabilities, in order to incorporate the developments and recommendations of the international
process in progress to revise the regulations governing liquidity risk.
More specifically, liquidity risk is managed by means of the measurement, monitoring and
management of the expected liquidity requirement, using a net liquidity balance model of
analysis at consolidated level over a time horizon of 30 days, supplemented with stress tests
designed to assess the Group’s ability to withstand crisis scenarios characterised by an
increasing level of severity.
Finally the management of structural balance is performed by using models which measure
the degree of stability of liabilities and the degree of liquidity of assets in order to mitigate risk
associated with the transformation of maturities within a tolerance threshold considered
acceptable by the Group.
The following are responsible for liquidity risk management:
- the Finance Macro Area (1st level management), which monitors liquidity daily and manages
risk on the basis of defined limits;
- the Risk Management Area (2nd level management), responsible for periodically verifying
that limits are observed.
The system for the measurement and monitoring of liquidity risk is structured in accordance
with policies and the principles concerning the diversification of the sources of funding, short
124
term liquidity management, structural liquidity management and the contingency funding
plan.
Further information on liquidity risk is given in Part E, section 1, sub-section 3 – Market Risk
– of the Notes to the Consolidated Financial Statements in the 2010 Annual Report, which
may be consulted.
1.4 Operational risks
Qualitative information
Operational risk is defined as the risk of loss resulting from inadequate or failed procedures,
human resources and internal systems or from exogenous events. This type of risk includes
loss resulting from fraud, human error, business disruption, system failure, non performance
of contracts and natural disasters.
This definition includes the legal risk of losses resulting from violations of laws and
regulations and from contractual or non contractual responsibilities or from other litigation,
but it does not include reputational and strategic risk.
Information on general aspects, the processes and operational risk management and
measurement systems has been reported in detail in the part E, section 1, sub-section 4 –
Operational Risks – of the Notes to the Consolidated Financial Statements in the 2010 Annual
Report, which may be consulted.
Legal risk
The companies in the UBI Banca Group are party to a number of court proceedings of varying
nature originating from the ordinary performance of their business. While it is not possible to
predict final outcomes with certainty, it is considered that an unfavourable conclusion of these
proceedings, both taken singly or as a whole, would not have a significant effect on the
financial and operating position of the Group.
In order to meet the claims received, the Group has made appropriate provisions on the basis
of a reconstruction of the amounts potentially at risk and taking account of established legal
opinion on the matters in question. Significant legal proceedings currently pending to which
some network banks of the Group are party include the following:
1. revocation bankruptcy actions against Banca Popolare di Bergamo, Banca Popolare
Commercio e Industria, Banco di Brescia and Banca Carime taken by various companies
related to Giacomelli Sport S.p.A. (claim made amounting to 84.755.557 euro);
2. a recovcatory bankruptcy action against Banco di Brescia taken by Formenti Seleco Spa,
currently under extraordinary administration, with a claim amounting to 1.447.453 euro.
Furthermore, in addition to the revocation action, the extraordinary administrators of
Formenti Seleco Spa, have also issued a writ against Banco di Brescia and another 18 legal
entities for abusive grant of loans for a total claim of 45.608.320 euro. In this respect, it
must be underlined that the Court of Cassation in combined session made three rulings in
March 2006, to the effect that there were no grounds by which a bankruptcy receiver could
legitimately take action against banks with a “liability action for abusive grant of loans”
(rulings No. 7030, No. 7029 and No. 7031 of 28th March 2006) confirmed in later rulings of
the court (cf Cassation Civ. Sect. I, 13th June 2008 No. 16031). It must also be underlined
that the Court of Monza – which is the court in which the case in question originates – in a
recent ruling (12th September 2007) peremptorily excluded that the grant of a long term
loan under market conditions could constitute damages which should be compensated by
the company granting the loan. In fact no grounds exist for substantial damages to an
estate, because damages only exist in the legal sense where a legally significant interest has
been impaired and the grant of a loan, while it may be abusive, does not cause damage
(after the statements of claim and counter claims were filed, the case was returned to the
court);
3. two actions against Banca Popolare di Bergamo, the first concerning the purchase of
covered warrants and Olivetti warrants (the latter via internet banking) for a total claim of
5.630.000 euro. The counterparty, not only alleges failure to receive proper information on
125
the risks attaching to covered trades, but also disowned the signatures on the contract
documents, required by regulations governing financial instruments and the capital in
question. Investigations performed by the internal audit function into the affair found no
evidence of liability of the Bank in the transactions in question. Later the counterparty
accepted that the signatures were his, but claimed that he had signed blank forms which
had subsequently been filled in abusively by the bank. The judge considered the fraud
accusation inadmissible, but appointed an expert to establish whether losses had been
recorded in the period 1999-2003 and whether the bank had fulfilled its disclosure
obligations pursuant to Art. 28 of Consob regulation No. 11522/98, ascertaining the
existence of possible negative consequences on the amount of the capital invested in
covered warrants and Olivetti warrants. The investigation by the court appointed expert is
still in progress. The second, on the other hand, concerns a number of combined claims for
a total amount of 12.500.000 euro, concerning an appeal against an injunction,
compounding of interest and compensation for damages following a wrong protest of
cheques (case halted following a judgement declaring the bankruptcy of the counterparty,
subsequently declared null and void with the consequent revocation of the bankruptcy. The
case was then resumed);
4. three actions concerning Centrobanca, one of which with a government counterparty
concerning the restitution of a payment of 22 million euro collected following the
enforcement of a guarantee granted (the case is pending in appeal after a successful
conclusion in the court of first instance), a second case in which claims have been made
against the bank in bankruptcy proceedings for claimed damages of roughly 64 million euro
(still before the judge of the court of first instance) and the last concerning litigation with a
customer attributable to inadequate information provided on derivative products
purchased. In the latter case contacts with the counterparty are in progress to come to an
out-of-court settlement whereby the customer is liable for 55% of the current and future
exposure resulting from the derivative;
5. a summons served by a former director of CIT Spa on Banco di Brescia, on five other banks,
on other directors, on the statutory auditors of CIT and on the independent auditors of CIT
Spa, with the intention of ascertaining the responsibilities of the other members of the
board of directors and statutory auditors of CIT Spa and also of the banks which, by
participating in a company turnaround plan, had enabled the company to continue to
operate, causing damages to the company and to its creditors, with the consequent
aggravation of the capital and operating situation and strengthening of the guarantees
given to back loans. This summons followed on from litigation directly between the court
appointed receiver of CIT and the former director for responsibility over the failure of the
company.
Additionally, contingent liabilities related to legal risk include a claim for damages resulting
from pre-contractual and contractual responsibility in relation to a loan transaction received
by Banca Popolare di Ancona. The claim is for 13,5 million euro, and it constitutes only a
potential risk.
The specific sections of this report may be consulted for information on corporate litigation not
directly related to ordinary business operations and on tax litigation.
126
Quantitative information
Descriptive data
The main sources of operational risk for the UBI Banca Group in the last five year period (30th
June 2006 – 30th June 2011) were “external context” (42% of impacts and 79% of frequencies)
and “processes” (50% of impacts and 19% of frequencies).
The “external context” risk driver includes human actions performed by third parties and not
directly under the control of the Bank, such as for example thefts and robberies, paper fraud,
damage caused by natural events (earthquakes, floods, etc.) and other external events. The
“process” risk driver included unintentional errors and incorrect application of regulations.
Percentage of operational losses by risk driver
(detected in the period 30th June 2006 – 30th June 2011)
Event frequency
Impact on profit or loss
1,01%
1,53%
19,22%
1,08%
42,11%
50,45%
78,69%
5,91%
External causes (external context)
Persons (human factor)
Processes
Systems
External causes (external context)
Persons (human factor)
Processes
Systems
The figures recorded in the first half of the year were still concentrated in the event classes
‘external causes’ (66% of frequencies and 10% of the total impacts recorded) and ‘processes’
(31% of frequencies and 84% of the total impacts recorded).
Percentage of operational losses by risk driver
(detected in the period 1st January 2011 – 30th June 2011)
Event frequency
Impact on profit or loss
0,30%
1,46%
10,17%
5,22%
30,58%
65,89%
84,31%
2,07%
External causes (external context)
Persons (human factor)
Processes
Systems
127
External causes (external context)
Persons (human factor)
Processes
Systems
The event types with the highest concentration of operational losses in the last five years were
‘external fraud’ (75% of frequencies and 40% of the total impacts detected) and ‘customers,
products and professional practices’ (7% of frequencies and 30% of the total impacts detected).
Percentage of operational losses by type of event
(detected in the period 30th June 2006 – 30th June 2011)
Event frequency
Impact on profit or loss
0,98% 3,52%
0,27%
3,50% 1,56%
3,69%
1,09%
6,99%
29,74%
12,20%
39,57%
1,21%
20,73%
74,95%
Customers, products and professional practices
Execution, delivery and process management
Internal fraud
Employment and safety at work
Damage from external events
External fraud
Business interruption and system malfunctions
Customers, products and professional practices
Execution, delivery and process management
Internal fraud
Employment and safety at work
Damage from external events
External fraud
Business interruption and system malfunctions
Risk detected in the first half of the year was concentrated mainly in the event types
“execution, delivery and process management” (17% of frequencies and 64% of the total
impacts detected) and “customers, products and professional practices’’ (13% of frequencies
and 20% of the total impacts detected). Card frauds accounted for 98% of the events classified
as external fraud and they resulted in 80% of the losses recorded in this event class. While,
55% of the events classified as “customers, products and professional practices’’ consisted of
customers’ complaints over sales and trading in financial instruments, which caused 46% of
the losses recorded in this event class. A further 38% of the events (46% of losses) included in
this class are attributable to litigation for compounding of interest.
Percentage of operational losses by type of event
(detected in the period 1st January 2011 – 30th June 2011)
Event frequency
0,77%
Impact on profit or loss
1,63%
8,80%
5,58%
0,35%
1,02%
5,18%
19,51%
13,49%
60,14%
0,75%
64,39%
16,67%
Customers, products and professional practices
Execution, delivery and process management
Internal fraud
Employment and safety at work
1,72%
Damage from external events
External fraud
Business interruption and system malfunctions
Customers, products and professional practices
Execution, delivery and process management
Internal fraud
Employment and safety at work
Damage from external events
External fraud
Business interruption and system malfunctions
Operational losses detected in the first half of 2011 were attributable above all to the “retail
banking” (78%) and “retail brokerage” (12%) lines of business.
128
Capital requirements
In the view of the regulatory context as set out by the Bank of Italy in the publication of
Circular No. 263 of 27th December 2006, since 2008 the UBI Banca Group has employed the
“traditional standardised approach” (TSA) in combined use with the “basic indicator approach”
(BIA) for the calculation of capital requirements for operational risks and it has started
activities to apply to the Bank of Italy for authorisation to use an internal “advanced
measurement approach” (AMA) in combined use with the TSA and BIA approaches (partial
AMA, where “partial” is intended as the adoption of the AMA approach on some lines of
business or Group entities only).
The consolidated capital requirement as at 30th June 2011, calculated as the average of the
ratios for the last three years, amounted to 489 million euro, consisting of 440 million euro
relating to the TSA component and 49 million euro to the BIA component. On average the
retail banking business sector absorbed 50% of the TSA component and the commercial
banking business sector 27%. The average coefficient of capital absorption with respect to the
significant indicator was 13%.
The principal risks and uncertainties for the second half of the year
Risks
The UBI Banca Group attributes primary importance to the measurement, management and
monitoring of risk, as activities necessary to the sustainable creation of value over time and to
the consolidation of its reputation on its markets.
In compliance with the regulations in force for the prudential supervision of banks (Bank of
Italy Circular No. 263/2006 and subsequent updates), the Group has put a process in place to
calculate its capital adequacy requirement – for the present and the future – to meet all
significant risks to which the Group is or might be exposed (ICAAP - Internal Capital Adequacy
Assessment Process).
In this respect very careful identification is performed on a continuous basis of the risks
subject to measurement6.
The greatest risk for the UBI Banca Group is credit risk: historically this risk accounts for
approximately 90% of the supervisory risk capital.
The economic recovery was basically weak in the first six months of 2011: the persistent
difficulties of the economy in general and the related crisis of consumption continued to have
a negative impact on the ability of businesses and individuals to meet their commitments and
this maintained credit risk at high levels. In the light of these considerations, and while
generally speaking the rate of defaults and loan impairment is expected to diminish, total
problem loan positions should remain at historically high levels.
The recent situation of considerable turmoil on Italian government securities markets could
have a negative impact on Group profits as a whole, if they to not return to levels more in line
with the “fundamentals” of the Italian economy.
Furthermore, risks of impairment losses exist associated with equity investments in the AFS
portfolio affected by negative conditions on equity markets.
As concerns structural liquidity risk, the relationship between sources of funding and those of
lending could be subject to difficulties resulting on the one hand from the maintenance of the
demand for loans and, on the other, from objective difficulties in the funding process.
The list of risks and related definitions are unchanged in comparison with the information published in 2010 Annual
Report, where any reference can be found.
6
129
Finally with regard to liquidity risk, the country risk effect and the related widening of spreads
on yields are penalising Italian banks significantly with their funding on wholesale markets
compared to banks in other European countries.
Risks other than those just reported, which are of marginal importance within the UBI Banca
Group, are not expected to change during the course of the year.
Uncertainties
An uncertainty is defined as a possible event for which the potential impact, attributable to one
of the risk categories just mentioned, cannot be determined and therefore quantified at present.
The scenario unfolding for the banking sector is one of a weak recovery in volumes of business
– mainly with regard to funding – low profit margins and continuing high credit risk.
Nevertheless, the agreement for the second Greek bail-out, the attention paid by international
speculators also to other countries in the euro area (including Italy) and the complexity of the
political process which regarded the raising of the United States debt ceiling and the
downgrade of its rating, all make sovereign debt the main factor of uncertainty with
repercussions on the economic situation and growth prospects, which are weakening the
economic recovery that is still fragile, especially in Italy.
The elements of uncertainty identified could manifest with impacts attributable primarily to
credit, interest rate and business risk, but without affecting the capital strength of the UBI
Banca Group.
In detail, the main uncertainties identified for the remaining six months of 2011 are linked to
the following aspects:
-
developments in the macroeconomic situation. The statistics published since the beginning of
2011 confirmed the continuation of world growth, although increasing signs of an economic
slowdown have emerged recently. The process of the consolidation of the recovery is in fact
being affected by the sovereign debt crisis in European countries with imbalance in their
public finances (including Italy) and by the difficulties of the banking systems of some
countries which were particularly exposed to the international crisis (e.g. Ireland and
Iceland). Fears of a recession in the United States, the considerable rise in raw materials
prices in recent quarterly periods – falling slightly in the last few weeks – and, as a
consequence, the recent increase in inflationary pressures constitute further risk factors for
the consolidation of the recovery;
-
the performance of financial markets and the yield curve. The high degree of turbulence and
volatility on financial markets – linked to the sovereign debt solvency of some countries –
and the process of the normalisation of monetary polices could determine substantial
reductions in expected revenues from commissions on assets under management.
Furthermore, the continuing conditions on markets, together with higher funding costs,
could determine the risk of considerable volatility in the yields from owned bond portfolios.
The dangers of recession which have appeared recently and the accommodative policies by
monetary authorities which could result from them constitute a further uncertainty for a
recovery in net interest income in the banking sector.
The periodic testing of the recoverability of goodwill is to be set against the background
described. It is based on parameters and information that is significantly affected by the
macroeconomic context and related to difficulties on financial markets. Consequently it is
susceptible to rapid changes;
-
changes in the legislative and regulatory context. The regulatory context is subject to various
processes of change following both the issue of a number of legislative provisions at EU and
national level, with the introduction of the relative regulations to implement them, relating
to the provision of banking services, and also to the related jurisprudence and decisions by
the courts (e.g. the form, content and modification of contracts, interest and other items of
remuneration for banking services). This scenario, which has introduced discontinuities in
operations, could directly affect the profits of banks, and/or costs for customers, requiring
130
particular effort both in terms of interpretation and implementation. Recent provisions of
importance include the possible negative impact – in terms of lower profits and a
contraction in securities transactions by customers – of the mini-budget approved by the
government in July (with particular reference to changes in IRAP [local production tax] and
an increase in stamp duty on deposits. The latter could increase competition for the loyalty
of multi-bank customers). Finally, further new legislation could concern salary backed
loans, which would generate additional compliance risks and also have possible impacts
on profits in this sector.
* * *
The risks and uncertainties described above were subject to a process of assessment designed,
amongst other things, to examine the impacts of changes in market parameters and conditions
on corporate performance. The Group does in fact possess instruments to measure the possible
impacts of risks and uncertainties on its operations (sensitivity analysis and stress tests in
particular), which allow it to rapidly and continuously adapt its strategies – in terms of its
distribution, organisation and cost management systems – to changes in the operating context.
Risks and uncertainties are also under constant observation through the implementation of the
policies and regulations to govern risk adopted by the Group: policies are updated in relation to
changes in strategy, context and market expectations. Periodic monitoring of policies is designed
to verify their state of implementation and their adequacy. The findings of the analyses
performed show that the Group is able to meet the risks and uncertainties to which it is exposed,
which therefore confirms the assumption that it is a going concern.
131
Consolidated
figures
companies:
the
principal
Profit (loss) for the period
Figures in thousands of euro
First half 2011 First half 2010
Unione di Banche Italiane Scpa
Change
% change
210.917
325.438
(114.521)
(35,2%)
Banca Popolare di Bergamo Spa
75.343
50.441
24.902
49,4%
Banco di Brescia Spa
47.665
40.606
7.059
17,4%
Banca Popolare Commercio e Industria Spa
28.813
13.780
15.033
109,1%
Banca Regionale Europea Spa
Banca Popolare di Ancona Spa
13.044
6.509
10.377
12.918
2.667
(6.409)
25,7%
(49,6%)
Banca Carime Spa
42,1%
17.734
12.484
5.250
Banca di Valle Camonica Spa
(604)
2.631
(3.235)
n.s.
Banco di San Giorgio Spa
2.809
(3.121)
5.930
n.s.
UBI Banca Private Investment Spa
Centrobanca Spa (1)
Centrobanca Sviluppo Impresa SGR Spa
612
(381)
(993)
3.337
18.704
(15.367)
n.s.
(82,2%)
119
69
50
72,5%
Banque de Dépôts et de Gestion Sa (*) (2)
(1.607)
(5.563)
(3.956)
(71,1%)
B@nca 24-7 Spa
10.242
(1.206)
(11.448)
BY YOU Spa
(117)
2.130
(2.247)
n.s.
IW Bank Spa (3)
(924)
1.259
(2.183)
n.s.
UBI Banca International Sa (*)
n.s.
6.222
4.069
2.153
52,9%
16.113
14.713
1.400
9,5%
(10.025)
1.413
(11.438)
8.368
9.139
(771)
(8,4%)
BPB Immobiliare Srl
320
744
(424)
(57,0%)
Società Bresciana Immobiliare Mobiliare - S.B.I.M. Spa
629
654
(25)
(3,8%)
3.112
2.580
532
20,6%
(3)
(1)
2
200,0%
UBI Assicurazioni Spa (49,99%)
Aviva Assicurazioni Vita Spa (49,99%)
732
2.000
(624)
1.400
1.356
600
Aviva Vita Spa (50%)
4.150
4.750
(600)
(12,6%)
Lombarda Vita Spa (49,90%)
3.061
4.688
(1.627)
(34,7%)
51,3%
UBI Pramerica SGR Spa (4)
UBI Leasing Spa
UBI Factor Spa
UBI Sistemi e Servizi SCpA
UBI Fiduciaria Spa
UBI Insurance Broker Srl
UBI Trustee Sa
Coralis Rent Srl
CONSOLIDATED
n.s.
n.s.
42,9%
121
80
41
10
(1)
11
(463)
(323)
140
43,3%
251.710
102.074
149.636
146,6%
n.s.
(*) The profit or loss for the period shown is from the financial statements prepared for the consolidation according to the accounting
policies followed by the Parent.
(1) The figure for the first half of 2010 has been restated for consistency by including the result for CB Invest Spa, merged on 27th
December 2010.
(2) The figure for the first half of 2010 has been restated for consistency by including the results for Gestioni Lombarda Suisse Sa,
merged on 31st October 2010.
(3) The figure for the first half of 2010 does not include the result for Twice Sim, merged on 1st November 2010.
(4) The figure for the first half of 2010 has been restated for consistency by including the results of Capitalgest Alternative Investments
SGR Spa and UBI Pramerica Alternative Investments SGR Spa, merged into the company on 1st July 2010.
132
Net loans to customers
30.6.2011
A
Figures in thousands of euro
31.12.2010
B
30.6.2010
C
Change
A-C
% change
A/C
Unione di Banche Italiane Scpa
Banca Popolare di Bergamo Spa
13.492.679
20.927.007
14.536.121
20.276.206
13.111.296
19.911.735
381.383
1.015.272
2,9%
5,1%
Banco di Brescia Spa
Banca Popolare Commercio e Industria Spa
15.035.328
8.989.561
15.078.204
8.885.600
15.336.289
8.813.030
-300.961
176.531
-2,0%
2,0%
Banca Regionale Europea Spa
Banca Popolare di Ancona Spa
7.203.310
7.942.360
6.851.620
7.702.345
6.755.026
7.385.677
448.284
556.683
6,6%
7,5%
Banca Carime Spa
Banca di Valle Camonica Spa
4.944.867
1.920.291
4.765.224
1.885.564
4.664.908
1.867.001
279.959
53.290
6,0%
2,9%
Banco di San Giorgio Spa
UBI Banca Private Investment Spa
2.830.399
453.384
2.787.617
439.511
2.671.985
432.508
158.414
20.876
5,9%
4,8%
Centrobanca Spa (1)
Banque de Dépôts et de Gestion Sa
7.178.071
215.256
6.972.678
207.425
7.175.157
294.629
2.914
-79.373
0,0%
-26,9%
B@nca 24-7 Spa
11.022.909
11.219.553
11.060.723
-37.814
-0,3%
UBI Banca International Sa
IW Bank Spa (2)
1.014.013
218.314
1.095.406
207.028
935.571
179.692
78.442
38.622
8,4%
21,5%
UBI Factor Spa
UBI Leasing Spa
2.570.423
9.601.672
2.744.758
9.698.555
2.344.613
9.688.990
225.810
-87.318
9,6%
-0,9%
CONSOLIDATED
102.774.467
101.814.829
100.157.746
2.616.721
2,6%
Net non-performing
loans / net loans
Percentages
30.6.2011
31.12.2010
Net non-performing loans + Net
impaired loans / net loans
Net impaired loans /
net loans
30.6.2010
30.6.2011
31.12.2010
30.6.2010
30.6.2011
31.12.2010
30.6.2010
Unione di Banche Italiane Scpa
Banca Popolare di Bergamo Spa
Banco di Brescia Spa
1,93%
1,38%
1,74%
1,23%
1,56%
1,04%
1,92%
2,52%
1,87%
2,11%
1,75%
2,19%
3,85%
3,90%
3,61%
3,34%
3,31%
3,23%
Banca Popolare Commercio e Industria Spa
Banca Regionale Europea Spa
Banca Popolare di Ancona Spa
3,12%
1,87%
4,06%
2,96%
1,88%
3,73%
2,18%
2,38%
3,56%
2,53%
1,91%
3,29%
5,49%
3,79%
7,02%
4,86%
3,19%
6,39%
1,49%
1,97%
2,00%
1,24%
1,60%
1,68%
2,97%
3,29%
4,86%
2,27%
2,52%
4,34%
2,14%
1,44%
3,04%
2,03%
5,30%
4,25%
7,62%
Banca Carime Spa
Banca di Valle Camonica Spa
Banco di San Giorgio Spa
2,72%
1,75%
3,35%
1,05%
4,46%
5,26%
6,86%
3,51%
4,12%
6,02%
3,08%
2,86%
5,07%
UBI Banca Private Investment Spa
Centrobanca Spa (1)
Banque de Dépôts et de Gestion Sa
B@nca 24-7 Spa
1,47%
1,24%
0,09%
1,95%
1,17%
1,16%
0,09%
1,55%
1,01%
3,65%
1,86%
0,71%
1,34%
2,07%
0,65%
0,65%
2,48%
4,89%
1,95%
2,66%
2,51%
3,23%
0,74%
2,20%
1,87%
2,68%
0,48%
2,07%
UBI Banca International Sa
IW Bank Spa (2)
UBI Factor Spa
0,07%
0,00%
0,46%
0,07%
0,00%
0,42%
2,35%
0,01%
0,21%
1,93%
0,01%
0,15%
2,00%
0,01%
0,57%
2,34%
0,11%
0,72%
3,66%
3,19%
2,40%
1,91%
2,28%
0,02%
0,18%
2,96%
2,42%
0,01%
0,67%
UBI Leasing Spa
0,06%
0,09%
0,54%
1,95%
6,06%
5,10%
4,91%
CONSOLIDATED
2,14%
1,91%
1,62%
2,34%
2,00%
1,93%
4,48%
3,91%
3,55%
1,40%
1,45%
1,10%
1,07%
0,06%
1,32%
1,46%
3,62%
0,77%
1,61%
0,42%
0,75%
(1)
The figures as at 30th June 2010 have been restated for consistency to include the business of CB Invest Spa, merged on 27th
December 2010.
(2)
The figures as at 30th June 2010 have been restated for consistency by including the amounts for Twice Sim, merged on 1st
November 2010.
133
Direct funding from customers
30.6.2011
A
Figures in thousands of euro
31.12.2010
B
Unione di Banche Italiane Scpa
33.074.644
31.369.474
Banca Popolare di Bergamo Spa
Banco di Brescia Spa (1)
19.881.638
11.639.429
20.546.068
11.736.765
Banca Popolare Commercio e Industria Spa
Banca Regionale Europea Spa
7.637.694
5.651.905
7.994.465
5.391.805
Banca Popolare di Ancona Spa
6.451.258
6.485.148
Banca Carime Spa
Banca di Valle Camonica Spa
7.551.969
1.406.727
7.562.665
1.421.234
Banco di San Giorgio Spa
UBI Banca Private Investment Spa
1.711.680
481.764
1.572.492
489.429
Centrobanca Spa (2)
4.365.970
5.345.526
409.409
19.022
419.437
23.861
1.291.332
1.684.452
1.266.869
1.513.127
106.163.877
106.760.045
Banque de Dépôts et de Gestion Sa (3)
B@nca 24-7 Spa
UBI Banca International Sa (4)
IW Bank Spa (5)
CONSOLIDATED
30.6.2010
C
28.634.665
20.739.711
12.217.438
8.143.632
5.569.956
6.571.074
7.647.008
1.437.077
1.474.435
507.739
3.932.410
Change
A-C
% change
A/C
4.439.979
15,5%
-858.073
-578.009
-4,1%
-4,7%
-505.938
81.949
-6,2%
1,5%
-119.816
-1,8%
-95.039
-30.350
-1,2%
-2,1%
237.245
-25.975
16,1%
-5,1%
433.560
11,0%
-153.419
-11.965
-27,3%
-38,6%
1.487.614
123.653
196.838
10,6%
13,2%
103.362.434
2.801.443
2,7%
562.828
30.987
1.167.679
Direct funding from customers includes amounts due to customers and securities issued, with the exclusion of bonds subscribed
directly by companies in the Group.
Direct funding for the following banks was therefore adjusted as follows:
BANKS
UBI Banca
Banca Popolare di Bergamo
30.6.2011
31.12.2010
30.6.2010
3.762,5 million euro
3.421 million euro
2.463,5 million euro
50 million euro
50 million euro
852,7 million euro
750,5 million euro
382,2 million euro
537,4 million euro
Banca Popolare Commercio e Industria
-
181 million euro
330,9 million euro
Banca Popolare di Ancona
-
352 million euro
683,1 million euro
2.326,2 million euro
201,6 million euro
1.105 million euro
Banca Regionale Europea
201,1 million euro
201 million euro
200,8 million euro
Banca di Valle Camonica
253,9 million euro
201,7 million euro
351,9 million euro
Banco di San Giorgio
792,3 million euro
332,4 million euro
788,9 million euro
-
-
75,2 million euro
5.743,1 million euro
4.321 million euro
4.347 million euro
Banco di Brescia
Centrobanca
UBI Banca Private Investment
B@nca 24-7
(1) The figure as at 30th June 2010 is net of issues of French certificates of deposit and euro commercial paper totalling 5.649,5
million euro.
(2) The figure as at 30th June 2010 has been restated for consistency by including the amounts for CB Invest Spa, merged on 27th
December 2010.
(3) The figure as at 30th June 2010 has been restated for consistency by including the funding of Gestioni Lombarda Suisse Sa,
merged on 31st October 2010.
(4) The figures as at 30th June 2011 and as at 31st December 2010 are net of issues of French certificates of deposit and euro
commercial paper for a total of 6.641 million euro and 7.042,5 million euro respectively.
(5) The figure as at 30th June 2010 has been restated for consistency by including the amounts for Twice SIM Spa, merged on 1st
November 2010.
134
Indirect funding from customers
(at market prices)
30.6.2011
A
Figures in thousands of euro
31.12.2010
B
30.6.2010
C
Change
A-C
% change
A/C
Unione di Banche Italiane Scpa
Banca Popolare di Bergamo Spa
Banco di Brescia Spa
5
26.786.257
14.251.398
14
24.944.977
14.849.800
13
24.712.302
15.027.785
-8
2.073.955
-776.387
-61,5%
8,4%
-5,2%
Banca Popolare Commercio e Industria Spa
Banca Regionale Europea Spa
11.018.493
7.285.845
11.186.686
7.267.934
11.873.621
7.340.592
-855.128
-54.747
-7,2%
-0,7%
Banca Popolare di Ancona Spa
Banca Carime Spa
Banca di Valle Camonica Spa
3.791.368
5.761.492
1.076.134
3.828.041
5.753.026
1.065.405
3.736.303
5.645.901
1.016.886
55.065
115.591
59.248
1,5%
2,0%
5,8%
Banco di San Giorgio Spa
UBI Banca Private Investment Spa
1.574.955
5.404.056
1.644.556
5.420.922
1.709.602
5.148.728
-134.647
255.328
-7,9%
5,0%
Banque de Dépôts et de Gestion Sa (1)
Lombarda Vita Spa
Aviva Assicurazioni Vita Spa
946.075
5.091.790
2.183.089
991.880
5.149.988
2.305.298
1.234.878
5.394.883
2.391.928
-288.803
-303.093
-208.839
-23,4%
-5,6%
-8,7%
23.782.939
3.060.822
25.047.354
2.971.932
24.990.745
2.739.932
-1.207.806
320.890
-4,8%
11,7%
3.100.366
4.371.566
3.037.925
4.374.554
2.695.874
4.283.850
404.492
87.716
15,0%
2,0%
78.565.784
78.078.869
78.476.237
89.547
0,1%
UBI Pramerica SGR Spa (2)
UBI Banca International Sa
IW Bank Spa
Aviva Vita Spa
CONSOLIDATED
Assets under management
Figures in thousands of euro
(at market prices)
30.6.2011
A
Unione di Banche Italiane Scpa
31.12.2010
B
30.6.2010
C
Change
A-C
% change
A/C
-
9
8
-8
-100,0%
12.230.981
7.241.797
4.605.061
12.460.373
7.569.511
4.743.435
12.244.958
7.820.803
4.813.101
-13.977
-579.006
-208.040
-0,1%
-7,4%
-4,3%
Banca Regionale Europea Spa
Banca Popolare di Ancona Spa
4.082.798
1.781.463
4.205.324
1.879.189
4.369.290
1.909.007
-286.492
-127.544
-6,6%
-6,7%
Banca Carime Spa
Banca di Valle Camonica Spa
Banco di San Giorgio Spa
3.457.827
489.465
582.694
3.688.062
513.063
637.651
3.761.493
520.181
656.866
-303.666
-30.716
-74.172
-8,1%
-5,9%
-11,3%
UBI Banca Private Investment Spa
Banque de Dépôts et de Gestion Sa (1)
3.977.242
946.075
4.073.214
991.880
3.860.830
1.234.878
116.412
-288.803
3,0%
-23,4%
Lombarda Vita Spa
Aviva Assicurazioni Vita Spa
UBI Pramerica SGR Spa (2)
5.091.790
2.183.089
23.782.939
5.149.988
2.305.298
25.047.354
5.394.883
2.391.928
24.990.745
-303.093
-208.839
-1.207.806
-5,6%
-8,7%
-4,8%
UBI Banca International Sa
IW Bank Spa
Aviva Vita Spa
152.883
491.831
4.371.566
289.940
496.899
4.374.554
139.781
436.250
4.283.850
13.102
55.581
87.716
9,4%
12,7%
2,0%
41.122.089
42.629.553
42.544.703
-1.422.614
-3,3%
Banca Popolare di Bergamo Spa
Banco di Brescia Spa
Banca Popolare Commercio e Industria Spa
CONSOLIDATED
(1) The figures as at 30th June 2010 have been restated for consistency by including the business of Gestioni Lombarda Suisse Sa,
merged on 31st October 2010.
(2) The totals as at 30th June 2010 have been restated for consistency by including the assets under management of Capitalgest
Alternative Investments SGR Spa and UBI Pramerica Alternative Investments SGR Spa, merged into the company on 1st July 2010.
135
Information on the principal banks in the Group
BANCA POPOLARE DI BERGAMO SPA
30.6.2011
30.6.2010
Change
% change
31.12.2010
Figures in thousands of euro
Statement of financial position
Loans to customers
Direct funding (*)
Net interbank position
Financial assets held for trading
Available-for-sale financial assets
Equity (excluding profit for the year/period)
Total assets
Indirect funding from customers (including insurance)
of which: assets under management
20.927.007
19.931.645
19.911.735
21.592.424
1.015.272
-1.660.779
5,1%
-7,7%
20.276.206
20.596.076
1.300.687
45.958
20.693
3.498.786
73.535
20.741
-2.198.099
-27.577
-48
-62,8%
-37,5%
-0,2%
2.537.387
51.761
20.795
2.220.495
24.142.482
26.786.257
1.950.783
25.147.305
24.712.302
269.712
-1.004.823
2.073.955
13,8%
-4,0%
8,4%
2.143.727
24.455.885
24.944.977
-13.977
-0,1%
12.460.373
12.230.981
12.244.958
1H 2011
241.190
184
1H 2010
216.636
254
24.554
(70)
11,3%
(27,6%)
FY 2010
443.493
254
157.377
(2.263)
10.547
153.657
5.303
6.745
3.720
(7.566)
3.802
2,4%
n.s.
56,4%
302.214
9.650
13.311
Operating income
Personnel expense
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets
407.035
(143.091)
(99.834)
382.595
(142.724)
(103.667)
24.440
367
(3.833)
6,4%
0,3%
(3,7%)
768.922
(277.279)
(204.095)
(3.583)
(3.591)
(8)
(0,2%)
(7.178)
Operating expenses
Net operating income
Net impairment losses on loans
(246.508)
160.527
(33.722)
(249.982)
132.613
(46.546)
(3.474)
27.914
(12.824)
(1,4%)
21,0%
(27,6%)
(488.552)
280.370
(96.212)
46,4%
(1.873)
Income statement
Net interest income
Dividends and similar income
Net commission incom e
Net income (loss) from trading, hedging and disposal/repurchase activities
Other net operating income
Net impairment losses on other assets/liabilities
(650)
(444)
206
Net provisions for risks and charges
Loss on the disposal of equity investments
(270)
-
1.361
(21)
(1.631)
(21)
n.s.
(100,0%)
187
(30)
125.885
(50.542)
86.963
(36.522)
38.922
14.020
44,8%
38,4%
182.442
(75.723)
75.343
50.441
24.902
49,4%
106.719
Pre-tax profit from continuing operations
Taxes on income for the year/period from continuing operations
Profit for the year/period
Other information
Number of branches
Total work force (actual employees+personnel on leasing contracts)
Financial ratios
ROE [profit for the period/equity (excluding profit for the period)]
Cost/income ratio (operating expenses/operating income)
Net non-performing loans/net loans to customers
Net impaired loans/net loans to customers
359
361
-2
365
3.737
3.881
-144
3.779
6,79%
60,56%
5,17%
65,34%
4,98%
63,54%
1,93%
1,92%
1,56%
1,75%
1,74%
1,87%
(*) Inclusive of bonds subscribed by the Parent amounting to 50 million euro as at 30th June 2011 (852,7 million euro as at 30th June
2010 and 50 million euro as at 31st December 2010).
136
BANCO DI BRESCIA SPA
30.6.2011
30.6.2010
Change
% change
31.12.2010
Figures in thousands of euro
Statement of financial position
Loans to customers
15.035.328
15.336.289
-300.961
Direct funding (*)
Net interbank debt/position
Financial assets held for trading
Available-for-sale financial assets
Equity (excluding profit for the year/period)
Total assets
12.389.956
-2.184.152
57.029
36.758
1.440.266
17.658.293
18.404.269
4.256.737
136.697
21.521
1.280.730
23.802.115
-6.014.313
-6.440.889
-79.668
15.237
159.536
-6.143.822
Indirect funding from customers (including insurance)
14.251.398
15.027.785
7.241.797
7.820.803
1H 2011
157.897
1H 2010
162.425
Dividends and similar income
Net commission income
Net loss from trading, hedging and disposal/repurchase activities
Other net operating income
1.280
102.543
(1.989)
9.038
1.249
102.328
(3.586)
7.208
Operating income
Personnel expense
268.769
(88.043)
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets
(64.904)
of which: assets under management
Income statement
Net interest income
Operating expenses
Net operating income
Net impairment losses on loans
Net impairment losses on other assets/liabilities
Net provisions for risks and charges
Profit on the disposal of equity investments
Pre-tax profit from continuing operations
Taxes on income for the year/period from continuing operations
Profit for the year/period
Other information
Number of branches
Total work force (actual employees+personnel on leasing contracts)
Financial ratios
ROE [profit for the period/equity (excluding profit for the period)]
Cost/income ratio (operating expenses/operating income)
Net non-performing loans/net loans to customers
Net impaired loans/net loans to customers
-2,0%
15.078.204
-32,7%
n.s.
-58,3%
70,8%
12,5%
-25,8%
12.118.974
-2.490.173
100.954
20.913
1.388.125
17.621.805
-776.387
-5,2%
14.849.800
-579.006
-7,4%
7.569.511
(4.528)
(2,8%)
FY 2010
325.858
31
215
(1.597)
1.830
2,5%
0,2%
(44,5%)
25,4%
1.249
196.007
(1.477)
14.845
269.624
(89.487)
(855)
(1.444)
(0,3%)
(1,6%)
536.482
(172.843)
(68.659)
(3.755)
(5,5%)
(133.321)
(5.233)
(5.581)
(348)
(6,2%)
(11.101)
(158.180)
110.589
(27.459)
(163.727)
105.897
(41.096)
(5.547)
4.692
(13.637)
(3,4%)
4,4%
(33,2%)
(317.265)
219.217
(97.859)
(270)
(2.374)
128
80.614
(32.949)
57
(825)
812
64.845
(24.239)
327
1.549
(684)
15.769
8.710
n.s.
187,8%
(84,2%)
24,3%
35,9%
(849)
(2.875)
1.296
118.930
(46.951)
47.665
40.606
7.059
17,4%
71.979
364
2.600
363
2.696
1
-96
6,62%
58,85%
1,38%
2,52%
6,34%
60,72%
1,04%
2,19%
362
2.634
5,19%
59,14%
1,23%
2,11%
(*) Inclusive of bonds subscribed by the Parent amounting to 750,5 million euro as at 30th June 2011 (537,4 million euro as at 30th
June 2010 and 382,2 million euro as at 31st December 2010). The figure as at 30th June 2010 also included issuances of French
certificates of deposit and euro commercial paper totalling 5.649,5 million euro.
137
BANCA POPOLARE COMMERCIO E INDUSTRIA SPA
30.6.2011
30.6.2010
Change
% change
31.12.2010
Figures in thousands of euro
Statement of financial position
Loans to customers
Direct funding (*)
Net interbank position/debt
Financial assets held for trading
Available-for-sale financial assets
Equity (excluding profit for the year/period)
Total assets
Indirect funding from customers (including insurance)
of which: assets under management
Income statement
Net interest income
Dividends and similar income
Net commission income
Net income (loss) from trading, hedging and disposal/repurchase activities
Other net operating income (**)
Operating income
Personnel expense
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets
Operating expenses
Net operating income
Net impairment losses on loans
8.989.561
8.813.030
176.531
2,0%
8.885.600
7.637.694
-304.187
27.852
19.217
1.161.665
9.998.429
11.018.493
4.605.061
8.474.564
405.515
43.110
12.092
902.344
10.413.536
11.873.621
4.813.101
-836.870
-709.702
-15.258
7.125
259.321
-415.107
-855.128
-208.040
-9,9%
n.s.
-35,4%
58,9%
28,7%
-4,0%
-7,2%
-4,3%
8.175.503
253.106
32.731
19.314
1.159.451
10.129.982
11.186.686
4.743.435
1H 2011
104.665
71.224
(357)
2.395
1H 2010
95.682
1
71.611
1.474
3.654
8.983
(1)
(387)
1.831
(1.259)
9,4%
(100,0%)
(0,5%)
n.s.
(34,5%)
FY 2010
197.832
2
134.274
(2.145)
7.791
177.927
(65.102)
(55.310)
172.422
(72.556)
(60.722)
5.505
(7.454)
(5.412)
3,2%
(10,3%)
(8,9%)
337.754
(137.261)
(116.059)
(3.291)
(3.001)
290
9,7%
(6.122)
(123.703)
54.224
(4.155)
(136.279)
36.143
(9.023)
(12.576)
18.081
(4.868)
(9,2%)
50,0%
(54,0%)
(259.442)
78.312
(30.827)
Net impairment losses on other assets/liabilities
(252)
436
(688)
n.s.
(13)
Net provisions for risks and charges
Loss on the disposal of equity investments
(983)
-
(1.392)
(16)
(409)
(16)
(29,4%)
(100,0%)
(2.718)
(20)
48.834
(20.021)
26.148
(12.368)
22.686
7.653
86,8%
61,9%
44.734
(22.820)
28.813
13.780
15.033
109,1%
21.914
234
1.738
234
1.935
-197
4,96%
69,52%
3,12%
2,18%
3,05%
79,04%
2,72%
2,14%
Pre-tax profit from continuing operations
Taxes on income for the year/period from continuing operations
Profit for the year/period
Other information
Number of branches
Total work force (actual employees+personnel on leasing contracts)
Financial ratios
ROE [profit for the period/equity (excluding profit for the period)]
Cost/income ratio (operating expenses/operating income)
Net non-performing loans/net loans to customers
Net impaired loans/net loans to customers
234
1.756
1,89%
76,81%
2,96%
2,53%
(*) The figures as at 30th June 2010 and as at 31st December 2010 included bonds subscribed by the Parent amounting to 330,9
million euro and 181 million euro respectively.
(**) The item for the first half of 2010 included approximately one million euro as the consideration for the sale to RBC Dexia of the
correspondent banking contract.
138
BANCA REGIONALE EUROPEA SPA
30.6.2011
30.6.2010
Change
% change
31.12.2010
Figures in thousands of euro
Statement of financial position
Loans to customers
Direct funding (*)
7.203.310
5.853.048
6.755.026
5.770.750
448.284
82.298
6,6%
1,4%
6.851.620
5.592.784
-231.132
13.226
-279.607
34.069
-48.475
-20.843
-17,3%
-61,2%
-195.497
25.269
Available-for-sale financial assets
Equity (excluding profit for the year/period)
Total assets
14.665
1.442.602
8.416.327
10.878
1.118.693
8.377.932
3.787
323.909
38.395
34,8%
29,0%
0,5%
9.610
1.216.497
8.132.305
Indirect funding from customers (including insurance)
7.285.845
7.340.592
-54.747
-0,7%
7.267.934
4.082.798
4.369.290
-286.492
-6,6%
4.205.324
1H 2011
80.120
402
1H 2010
71.427
1.194
8.693
(792)
12,2%
(66,3%)
FY 2010
147.363
1.318
49.545
(592)
52.125
117
(2.580)
(709)
(4,9%)
n.s.
99.330
(946)
(13,4%)
Net interbank debt
Financial assets held for trading
of which: assets under management
Income statement
Net interest income
Dividends and similar income
Net commission income
Net income (loss) from trading, hedging and disposal/repurchase activities
Other net operating income
3.334
3.848
(514)
Operating income
Personnel expense
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets
132.809
(55.380)
(38.308)
128.711
(56.511)
(41.565)
4.098
(1.131)
(3.257)
(3.804)
(3.349)
455
13,6%
(6.644)
Operating expenses
Net operating income
Net impairment losses on loans
Net impairment losses on other assets/liabilities
(97.492)
35.317
(9.782)
(876)
(101.425)
27.286
(12.382)
84
(3.933)
8.031
(2.600)
960
(3,9%)
29,4%
(21,0%)
n.s.
(197.640)
58.234
(27.430)
(169)
Net provisions for risks and charges (**)
Profit on the disposal of equity investments
Pre-tax profit from continuing operations
Taxes on income for the year/period from continuing operations
(532)
10
24.137
(11.093)
2.770
3
17.761
(7.384)
(3.302)
7
6.376
3.709
n.s.
233,3%
35,9%
50,2%
3.253
230.662
264.550
(18.175)
13.044
10.377
2.667
25,7%
246.375
Profit for the year/period
Other information
Number of branches
Total work force (actual employees+personnel on leasing contracts)
Financial ratios
ROE [profit for the period/equity (excluding profit for the period)]
Cost/income ratio (operating expenses/operating income)
Net non-performing loans/net loans to customers
Net impaired loans/net loans to customers
3,2%
(2,0%)
(7,8%)
8.809
255.874
(110.126)
(80.870)
229
226
3
229
1.514
1.580
-66
1.552
1,81%
1,86%
20,25%
73,41%
1,87%
78,80%
1,75%
77,24%
1,88%
2,38%
1,44%
1,91%
(*) Inclusive of bonds subscribed by the Parent amounting to 201,1 million euro as at 30th June 2011 (200,8 million euro as at 30th
June 2010 and 201 million euro as at 31st December 2010).
(**) The item to 30th June 2010 included the release of a provision made in prior years for litigation with the Ministry of the Economy
amounting to 3,9 million euro.
139
BANCA POPOLARE DI ANCONA SPA
30.6.2011
30.6.2010
Change
% change
31.12.2010
Figures in thousands of euro
Statement of financial position
Loans to customers
Direct funding (*)
Net interbank position/debt
Financial assets held for trading
Available-for-sale financial assets
Equity (excluding profit for the year/period)
Total assets
Indirect funding from customers (including insurance)
of which: assets under management
Income statement
Net interest income
Dividends and similar income
Net commission income
Net income (loss) from trading, hedging and disposal/repurchase activities
Other net operating income
Operating income
Personnel expense
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets
7.942.360
6.451.258
-751.617
24.490
7.385.677
7.254.133
539.242
31.047
556.683
-802.875
-1.290.859
-6.557
7,5%
-11,1%
n.s.
-21,1%
7.702.345
6.837.163
-209.751
25.159
22.114
876.210
8.890.138
3.791.368
22.427
877.174
9.074.734
3.736.303
-313
-964
-184.596
55.065
-1,4%
-0,1%
-2,0%
1,5%
22.140
875.143
9.100.755
3.828.041
-127.544
-6,7%
1.879.189
1.781.463
1.909.007
1H 2011
103.729
1.025
53.925
(4.175)
1.712
1H 2010
100.643
3.757
51.364
2.850
1.523
3.086
(2.732)
2.561
(7.025)
189
3,1%
(72,7%)
5,0%
n.s.
12,4%
FY 2010
204.263
3.757
105.328
2.970
2.732
156.216
(64.758)
(44.810)
160.137
(64.248)
(47.651)
(3.921)
510
(2.841)
(2,4%)
0,8%
(6,0%)
319.050
(125.953)
(90.704)
(5.825)
(6.266)
(441)
(7,0%)
(11.980)
Operating expenses
Net operating income
Net impairment losses on loans
Net impairment losses on other assets/liabilities
(115.393)
40.823
(24.676)
654
(118.165)
41.972
(20.886)
1.812
(2.772)
(1.149)
3.790
(1.158)
(2,3%)
(2,7%)
18,1%
(63,9%)
(228.637)
90.413
(51.481)
955
Net provisions for risks and charges
Profit (loss) on the disposal of equity investments
(269)
(4)
539
37
808
(41)
n.s.
n.s.
(1.057)
25
16.528
(10.019)
23.474
(10.556)
(6.946)
(537)
(29,6%)
(5,1%)
38.855
(20.515)
6.509
12.918
(6.409)
(49,6%)
18.340
240
1.709
247
1.808
-7
-99
1,49%
73,87%
4,06%
3,56%
2,95%
73,79%
3,35%
3,04%
Pre-tax profit from continuing operations
Taxes on income for the year/period from continuing operations
Profit for the year/period
Other information
Number of branches
Total work force (actual employees+personnel on leasing contracts)
Financial ratios
ROE [profit for the period/equity (excluding profit for the period)]
Cost/income ratio (operating expenses/operating income)
Net non-performing loans/net loans to customers
Net impaired loans/net loans to customers
248
1.749
2,10%
71,66%
3,73%
3,29%
(*) The figures as at 30th June 2010 and as at 31st December 2010 included bonds subscribed by the Parent amounting to 683,1
million euro and 352 million euro respectively.
140
BANCA CARIME SPA
30.6.2011
30.6.2010
Change
% change
31.12.2010
Figures in thousands of euro
Statement of financial position
Loans to customers
Direct funding
Net interbank position
Financial assets held for trading
4.944.867
7.551.969
3.252.073
2.063
4.664.908
7.647.008
3.682.397
4.497
279.959
-95.039
-430.324
-2.434
6,0%
-1,2%
-11,7%
-54,1%
4.765.224
7.562.665
3.670.923
2.698
Available-for-sale financial assets
Equity (excluding profit for the year/period)
Total assets
28.037
1.555.188
9.927.801
27.677
1.553.861
10.150.677
360
1.327
-222.876
1,3%
0,1%
-2,2%
27.793
1.551.681
9.784.297
Indirect funding from customers (including insurance)
5.761.492
5.645.901
115.591
2,0%
5.753.026
3.457.827
3.761.493
-303.666
-8,1%
1H 2011
121.108
1H 2010
115.634
5.474
4,7%
FY 2010
237.036
122
55.695
(2.397)
107
56.622
624
15
(927)
(3.021)
14,0%
(1,6%)
n.s.
107
109.737
2.018
of which: assets under management
Income statement
Net interest income
Dividends and similar income
Net commission income
Net income (loss) from trading, hedging and disposal/repurchase activities
Other net operating income(*)
Operating income
Personnel expense
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets
Operating expenses
Net operating income
Net impairment losses on loans
Net impairment losses on other assets/liabilities
Net provisions for risks and charges
Profit (loss) on the disposal of equity investments
Pre-tax profit from continuing operations
Taxes on income for the year/period from continuing operations
Profit for the year/period
Other information
Number of branches
Total work force (actual employees+personnel on leasing contracts)
Financial ratios
ROE [profit for the period/equity (excluding profit for the period)]
Cost/income ratio (operating expenses/operating income)
Net non-performing loans/net loans to customers
Net impaired loans/net loans to customers
3.067
2.112
955
45,2%
4.618
177.595
(77.053)
(48.013)
175.099
(79.819)
(48.831)
2.496
(2.766)
(818)
1,4%
(3,5%)
(1,7%)
353.516
(153.219)
(94.309)
(7.147)
(7.321)
(174)
(2,4%)
(14.582)
(132.213)
45.382
(12.982)
69
(135.971)
39.128
(12.643)
(133)
(3.758)
6.254
339
202
(2,8%)
16,0%
2,7%
n.s.
(262.110)
91.406
(22.875)
(434)
(1.273)
(691)
582
84,2%
862
480
31.676
(13.942)
25.661
(13.177)
480
6.015
765
23,4%
5,8%
(2)
68.957
(31.305)
17.734
12.484
5.250
42,1%
37.652
294
293
1
294
2.203
2.276
-73
2.224
2,28%
1,61%
2,43%
74,45%
1,49%
2,97%
77,65%
1,05%
2,03%
74,14%
1,24%
2,27%
(*) The item for the first half of 2011 includes prior year income of 3,7 million euro following an insurance reimbursement.
141
3.688.062
CENTROBANCA SPA
30.6.2011
30.6.2010
Change
% change
31.12.2010
Figures in thousands of euro
Statement of financial position
Loans to customers
Direct funding (*)
Net interbank debt
7.178.071
7.175.157
2.914
0,0%
6.972.678
6.692.184
5.037.405
1.654.779
32,8%
5.547.161
-1.514.777
-546.351
-2.125.314
-1.578.963
-74,3%
Financial assets held for trading
373.571
502.077
-128.506
-25,6%
447.633
Available-for-sale financial assets
Equity (excluding profit for the year/period)
518.549
581.684
512.607
569.780
5.942
11.904
1,2%
2,1%
566.135
577.124
10.583.540
10.174.511
409.029
4,0%
10.512.435
1H 2011
44.068
1H 2010
52.485
(8.417)
(16,0%)
FY 2010
100.212
Total assets
Income statement
Net interest income
Dividends and similar income
936
1.453
(517)
(35,6%)
1.532
15.859
23.856
(7.997)
(33,5%)
42.102
2.328
1.204
9.335
1.366
(7.007)
(162)
(75,1%)
(11,9%)
14.010
5.351
Operating income
Personnel expense
64.395
(15.638)
88.495
(16.713)
(24.100)
(1.075)
(27,2%)
(6,4%)
163.207
(32.957)
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets
(10.096)
(10.965)
(869)
(7,9%)
(21.049)
(499)
(498)
1
0,2%
(1.003)
Operating expenses
(26.233)
(28.176)
(1.943)
(6,9%)
(55.009)
Net operating income
Net impairment losses on loans
38.162
(27.893)
60.319
(26.874)
(22.157)
1.019
(36,7%)
3,8%
108.198
(65.430)
Net commission income
Net income from trading, hedging and disposal/repurchase activities
Other net operating income
Net impairment losses on other assets/liabilities
Net provisions for risks and charges
Loss on the disposal of equity investments
Pre-tax profit from continuing operations
Taxes on income for the year/period from continuing operations
Profit for the year/period
Other information
Number of branches
Total work force (actual employees+personnel on leasing contracts)
Financial ratios
ROE [profit for the period/equity (excluding profit for the period)]
Cost/income ratio (operating expenses/operating income)
106
(174)
(280)
n.s.
(3.564)
(276)
-
(1.780)
-
1.504
-
(84,5%)
0,0%
(7.669)
(15)
10.099
(6.762)
31.491
(12.787)
(21.392)
(6.025)
(67,9%)
(47,1%)
31.520
(15.367)
3.337
18.704
(15.367)
(82,2%)
16.153
6
319
7
342
-1
-23
6
325
1,15%
6,57%
2,80%
40,74%
31,84%
33,71%
Net non-performing loans/net loans to customers
1,24%
1,07%
1,16%
Net impaired loans/net loans to customers
3,65%
1,61%
2,07%
The figures as at 30th June 2010 have been restated to take account of the merger of CB Invest Spa which took place on 27th December
2010.
(*) Inclusive of bonds subscribed by the Parent amounting to 2.326,2 million euro as at 30th June 2011 (1.105 million euro as at 30th
June 2010 and 201,6 million euro as at 31st December 2010).
142
B@NCA 24-7 SPA
30.6.2011
30.6.2010
Change
% change
31.12.2010
Figures in thousands of euro
Statement of financial position
Loans to customers
Direct funding (*)
11.022.909
5.762.159
11.060.723
4.377.976
-37.814
1.384.183
-0,3%
31,6%
11.219.553
4.344.858
Net interbank debt
-6.778.515
-7.968.648
-1.190.133
-14,9%
-7.757.694
Equity (excluding profit for the year/period)
Total assets
342.531
13.326.058
348.160
13.323.149
-5.629
2.909
-1,6%
0,0%
348.179
12.957.569
1H 2011
87.108
1H 2010
100.762
(13.654)
(13,6%)
FY 2010
200.453
Net commission income
10.992
8.040
2.952
36,7%
17.634
Net income/(loss) from trading, hedging and disposal/repurchase activity
Other net operating income
(4.034)
13.148
842
13.037
4.876
111
n.s.
0,9%
(24.036)
29.817
Operating income
Personnel expense
107.214
(6.658)
122.681
(6.565)
(15.467)
93
(12,6%)
1,4%
223.868
(13.046)
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets
(21.504)
(23.243)
(1.739)
(7,5%)
(45.921)
Operating expenses
(195)
(28.357)
(140)
(29.948)
55
(1.591)
39,3%
(5,3%)
(180)
(59.147)
Net operating income
Net impairment losses on loans
78.857
(57.470)
92.733
(87.302)
(13.876)
(29.832)
(15,0%)
(34,2%)
164.721
(149.833)
Income statement
Net interest income
Net provisions for risks and charges (**)
Pre-tax profit from continuing operations
Taxes on income for the year/period from continuing operations
Profit (loss) for the year/period
(878)
182
1.060
n.s.
(8.912)
20.509
(10.267)
5.613
(6.819)
14.896
3.448
265,4%
50,6%
5.976
(11.699)
10.242
(1.206)
(11.448)
N.s.
(5.723)
Other information
Number of branches
Total work force (actual employees+personnel on leasing contracts)
1
1
-
1
220
242
-22
227
26,45%
1,95%
24,41%
1,32%
26,42%
1,55%
0,71%
0,75%
0,65%
Financial ratios
Cost/income ratio (operating expenses/operating income)
Net non-performing loans/net loans to customers
Net impaired loans/net loans to customers
(*) Inclusive of bonds subscribed by the Parent amounting to 5.743,1 million euro as at 30th June 2011 (4.347 million euro as at 30th
June 2010 and 4.321 million euro as at 31st December 2010).
(**) The item for the first half of 2011 includes a provision of 8,8 million euro to meet the risk of the non recovery of prior year items in
transit, for the operational risk connected with financial companies which disburse salary backed loans and for convention fraud.
The item also includes releases of provisions amounting to eight million euro following the reclassification into credit risk of the
operational risk attaching to Ktesios Spa.
143
IW BANK SPA
30.6.2011
30.6.2010
Change
% change
31.12.2010
Figures in thousands of euro
Statement of financial position
Loans to customers
218.314
179.692
38.622
21,5%
207.028
Direct funding
Net interbank position
Financial assets held for trading
1.684.452
631.415
27.767
1.487.614
409.452
48.231
196.838
221.963
-20.464
13,2%
54,2%
-42,4%
1.513.127
401.300
21.113
Available-for-sale financial assets
Equity (excluding profit for the year)
Total assets
744.947
38.389
2.955.053
870.898
47.833
2.859.538
-125.951
-9.444
95.515
-14,5%
-19,7%
3,3%
845.043
36.065
2.874.217
Indirect funding from customers (including insurance)
3.100.366
2.695.874
404.492
15,0%
3.037.925
491.831
436.250
55.581
12,7%
496.899
1H 2011
14.052
1H 2010
10.847
3.205
29,5%
FY 2010
24.047
Net commission incom e
Net income from trading, hedging and disposal/repurchase activities (*)
Other net operating income
15.682
2.310
1.284
18.026
4.694
878
(2.344)
(2.384)
406
(13,0%)
(50,8%)
46,2%
33.062
7.787
4.175
Operating income
Personnel expense
33.328
(9.783)
34.445
(10.771)
(1.117)
(988)
(3,2%)
(9,2%)
69.071
(20.577)
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets (**)
(16.589)
(15.209)
1.380
9,1%
(31.977)
(3.704)
(4.614)
(910)
(19,7%)
(8.470)
Operating expenses
(30.076)
(30.594)
(518)
(1,7%)
(61.024)
3.252
(557)
(153)
3.851
(560)
-
(599)
3
(153)
(15,6%)
0,5%
-
8.047
(969)
(613)
(2.136)
(4)
402
(1.326)
(362)
2.929
(1.670)
(1.774)
(4)
(2.527)
(344)
(490,1%)
(86,3%)
(20,6%)
(2.933)
(1.982)
1.550
(1.994)
(924)
1.259
(2.183)
n.s.
(444)
of which: assets under management
Income statement
Net interest income
Net operating income
Net impairment losses on loans
Net impairment losses on other assets/liabilities
Net provisions for risks and charges (***)
Loss on the disposal of equity investments
Pre-tax profit from continuing operations
Taxes on income for the year from continuing operations
Profit (loss) for the year
Other information
Number of branches
Total work force (actual employees+personnel on leasing contracts)
Financial ratios
ROE [profit for the period/equity (excluding profit for the period)]
Cost/income ratio (operating expenses/operating income)
Net non-performing loans/net loans to customers
Net impaired loans/net loans to customers
2
2
-
2
285
293
-8
292
-4,81%
5,26%
-1,23%
90,24%
0,01%
88,82%
0,09%
0,02%
88,35%
0,01%
The figures as at and for the period ended 30th June 2010 have been restated to take account of the merger of Twice Sim Spa which
took place on 1st November 2010.
(*) In the first half of 2010 the item included profits of 6,1 million euro from the disposal of AFS securities.
(**) In the first half of 2010 the item included impairment losses on intangible assets of approximately one million euro.
(***) The item for the first half of 2011 includes provisions of 2,1 million euro for accounts that failed to balance when the IT platform
was replaced.
144
Segment Reporting
Distribution by business segment: income statement for the period ended 30th June 2011
Figures in tho usands o f euro
Corporate Centre
item/business segment
Banking
(Aggregate)
Net interest income/expense
Net commission income/expense
Other expense/income
Non-banking financial
(Aggregate)
868.666
550.589
-2.664
Gross income (loss)
Net impairment losses on loans and financial assets
Net financial income (loss)
Administrative expenses
Net provisions for risks and charges
Net impairment losses on property, equipment and investment property and
intangible assets
-70.368
-19.599
-283.114
1.284.450
175.982
-89.967
1.370.465
-
-
-
-
1.284.450
175.982
-89.967
1.370.465
-952.105
-122.236
-19.893
-1.094.234
-8.066
-5.987
-502
-14.555
-68.170
-5.837
-67.013
-141.020
33.826
14.788
-5.698
42.916
-994.515
-119.272
-93.106
-1.206.893
-25
-
612
-126.306
9.328
-
9.915
-126.306
635
21
384
1.040
290.545
-68.963
-173.361
48.221
-139.502
-
-31.304
-
387.554
-
216.748
-
Profit for the period attributable to non-controlling interests
Profit (loss) for the period
1.653.579
307.356
Profits on disposal of investm ents
Taxes on income for the period from continuing operations
Post-tax profit (loss) from discontinued operations
1.042.183
585.510
25.886
-131.374
Profits (losses) of equity investments
Net impairment losses on goodwill
Pre-tax profit (loss) from continuing operations
-38.165
-57.924
25.721
-132.141
Other net operating income/(expense)
Operating expenses
TOTAL
1.416.591
Net income (loss) from insurance operations
Net income (loss) from banking and insurance operations
211.682
92.845
2.829
(UBI, UBIS, Property
companies + all
intercompany and
consolidation entries)
-8.159
-4.305
-795
-13.259
142.884
-104.572
213.398
251.710
Distribution by business segment: statement of financial position as at 30th June 2011
Figures in thousands of euro
Corporate Centre
item /business segment
Banking
(Aggregate)
Loans to banks
Due to banks
9.704.556
-
Non-banking financial
(Aggregate)
16.078.862
(UBI, UBIS, Property
companies + all
intercompany and
consolidation entries)
5.792.368
-
Net financial assets
985.059
649.897
9.020.831
Loans to customers
71.939.918
34.867.732
-4.033.183
Due to customers
Securities issued
Equity-accounted investees
Non-controlling interests
47.478.224
28.101.146
1.698
895.786
580.774
17.942.644
359
56.876
8.140.739
3.920.350
379.319
-10.111
142.884
-104.572
213.398
Profit (loss) for the period
The items "Loans to banks" and "Due to banks" have been stated in the three segments on the basis of the prevailing balance.
The item "non-controlling interests" in the "Banking" and "Non-banking financial" segments relates only to the portion of equity and of the profit for the period
of the companies not wholly owned. It does not include non-controlling interests and the part of consolidated items attributable to non controlling interests
which have been attributed to the "Corporate Centre".
The banking segment comprises the nine network banks of the Group, IW Bank Spa, Banque de Depots
et de Gestion Sa and UBI International Sa.
The “Non-banking financial sector” comprises Centrobanca Spa, B@nca 24-7 Spa, UBI Leasing Spa, UBI
Factor Spa, UBI Pramerica SGR Spa, Silf Spa, Prestitalia Spa, UBI Fiduciaria Spa, UBI Gestioni
Fiduciarie SIM Spa, BY YOU Spa (and its subsidiaries) only at economic level and up to the
deconsolidation date.
The “Corporate Centre” segment comprises UBI Banca Scpa, UBI Sistemi e Servizi Scpa and all the
remaining Group member companies. That segment also includes all the consolidation entries including
all the intercompany eliminations with the exception of those relating to the purchase price allocations
made to the relative individual segments.
145
Transactions with related parties
In compliance with IAS 24, information is provided below on statement of financial position
and income statement transactions between related parties of UBI Banca and Group member
companies, as well as those items as a percentage of the total for each item in the consolidated
financial statements.
According to IAS 24, a related party is a person or entity that is related to the entity that is preparing its financial
statements (the “reporting entity”).
(a) A person or close family member of that person is related to the reporting entity if that person:
(i) has control or joint control over the reporting entity:
(ii) has significant influence over the reporting entity; or
(iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
(b) An entity is related to a reporting entity if any of the following conditions apply:
(i) the entity and the reporting entity are members of the same group (which means that each parent, subsidiary
and fellow subsidiary is related to the others);
(ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a
group of which the other entity is a member);
(iii) both entities are joint ventures of the same third party;
(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity;
(v) the entity is a post-employment defined benefit plan for the benefit of employees of either the reporting entity or
an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers
are also related to the reporting entity;
(vi) the entity is controlled or jointly controlled by a person identified in (a);
(vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management
personnel of the entity (or of a parent of the entity).
Transactions with related parties – principal statement of financial position items
Financial assets
held for trading
Loans to
banks
Loans to
customers
Due to banks
Due to
customers
Securities
issued
Financial
liabilities held
for trading
Guarantees
granted
Figures in tho usands of euro
Associates
-
-
68.329
-
260.259
16.753
4
(1)
-
-
1.441
-
18.859
9.647
-
-
Other related parties
48.764
-
246.722
-
117.586
1.464
-
-
Total
48.764
-
316.492
-
396.704
27.864
4
24.962
Senior managers
24.962
(1) A “senior manager” is defined as “a member of the key management personnel of the entity or of its parent, where a member of the key
management personnel is defined as those who have power and responsibility for the planning, management and control of the activities of the
entity including its directors”.
Transaction with related parties - percentage
Financial
assets held for Loans to banks
trading
Loans to
customers
Due to banks
Due to
customers
Securities
issued
Financial
liabilities held
for trading
Guarantees
granted
Figures in tho usands o f euro
With related parties (a)
Total (b)
Percentage (a/b*100)
48.764
-
316.492
-
396.704
27.864
4
1.093.974
4.384.636
102.774.467
4.966.574
56.199.737
49.964.140
844.259
4,46%
-
0,31%
-
146
0,71%
0,06%
0,00%
24.962
n.a.
n.a.
Summary of principal income statement related-party transactions
Net interest
Dividends and
similar income
Net commission
income
Operating
Personnel
expense income/expenses
Figures in thousands of euro
Associates
Other
administrative
expenses
(522)
1.504
54.682
(20)
1.412
(1)
(189)
-
85
(7.665)
(3)
-
Other related parties
2.134
-
3.977
(202)
8
(190)
Total
1.423
1.504
58.744
(7.887)
1.417
(7.620)
Senior managers
(7.430)
(1) A “senior manager” is defined as “a member of the key management personnel of the entity or of its parent, where a member of the key
management personnel is defined as those who have power and responsibility for the planning, management and control of the activities of the
entity including its directors”.
Percentage of income statement transactions with related-parties in respect of the consolidated financial
statements
Net interest
Dividends and
similar income
Net commission
income
Other
administrative
expenses
Personnel
Operating
expense income/expenses
Figures in tho usands o f euro
With related parties (a)
Total (b)
Percentage (a/b*100)
1.423
1.504
58.744
(7.887)
1.417
(7.620)
1.042.183
18.665
585.510
(737.944)
115.765
(432.622)
0,14%
8,06%
10,03%
1,07%
1,22%
1,76%
Principal statement of financial position items with associate companies subject to significant influence
Financial assets
held for trading
Loans to
customers
Due to
customers
Securities
issued
Financial
liabilities held
for trading
Arca SGR Spa
Aviva Assicurazioni Vita Spa
Aviva Vita Spa
Capital Money Spa
Ge.Se.Ri. Spa in liquidazione
Lombarda China Fund Management Co.
Lombarda Vita Spa
Polis Fondi SGRpA
Prisma Srl
SF Consulting Srl
Siderfactor Spa
Sofipo Fiduciaire Sa
SPF Studio Progetti Finanziari Srl
UBI Assicurazioni Spa
UFI Servizi Srl
-
-
15.280
208
359
905
3.796
15
40.869
194
6.703
-
135.625
25.462
15
62.600
128
447
349
2
277
35.354
-
16.718
35
-
4
-
24.962
-
Total
-
68.329
260.259
16.753
4
24.962
Guarantees
granted
Figures in thousands of euro
-
Principal income statement items with associate companies subject to significant influence
Net interest
Dividends and Net commission
similar income
income
Personnel
expense
Operating
income/expenses
Figures in thousands of euro
Other
administrative
expenses
Arca SGR Spa
Aviva Assicurazioni Vita Spa
Aviva Vita Spa
Capital Money Spa
Ge.Se.Ri. Spa in liquidazione
Lombarda China Fund Management Co.
Lombarda Vita Spa
Polis Fondi SGRpA
Prisma Srl
SF Consulting Srl
Siderfactor Spa
Sofipo Fiduciaire Sa
SPF Studio Progetti Finanziari Srl
UBI Assicurazioni Spa
UFI Servizi Srl
(322)
(375)
6
(544)
72
(1)
(4)
697
2
(53)
-
1.336
168
-
1.590
3.425
19.600
(1.534)
18.659
137
18
402
2
12.383
-
(263)
(18)
261
-
1
15
7
61
3
1.325
-
(1.927)
(5.426)
(77)
Total
(522)
1.504
54.682
(20)
1.412
(7.430)
147
In compliance with the regulations in force, we report that all transactions carried out by the
Group member companies with related parties were conducted in observance of correct
principles both in substance and form, under conditions analogous to those applied for
transactions with independent parties.
More specifically, the Parent and its subsidiary UBI Sistemi e Servizi Scpa provide Group
member companies with a series of services, governed by intragroup contracts drawn up in
accordance with the principles of consistency, transparency and uniformity in line with the
organisational model of the Group. Under this model, strategic, and management activities
are centralised at UBI Banca and technical and operational activities in UBI Sistemi e Servizi
Scpa.
The prices agreed for the services provided under the contracts were determined on the basis
of market prices or, where appropriate reference parameters could not be found in the
marketplace, in accordance with the particular nature of the services provided and also in
relation to the service contracts signed by UBI.S with its consortium shareholders, on the
basis of the costs incurred for the services provided.
The main intragroup contracts existing at the end of the first half included those which
implement the centralisation of activities in the Governance and Business Areas of the Parent
Bank and they involved the Parent Bank and the main banks in the Group (Banca Popolare di
Bergamo Spa, Banca Popolare Commercio e Industria Spa, Banca Popolare di Ancona Spa,
Banca Carime Spa, Banco di Brescia Spa, Banca Regionale Europea Spa, Banca di Valle
Camonica Spa, Banco di San Giorgio Spa, UBI Banca Private Investment Spa) and also
contracts to implement the “national tax consolidation” (in accordance with articles 117 to
129 of Presidential Decree No. 917/1986, the consolidated income tax act) concluded by the
Parent Bank. There were also all the intragroup contracts which implement the centralisation
in UBI Sistemi e Servizi of support activities for the principal companies in the UBI Group.
We report with regard to transactions between companies in the Group and all of its related
parties that no atypical and/or unusual transactions were performed; furthermore, no
transactions of that type were even performed with counterparties that were not related
parties.
Atypical and/or unusual transactions, as indicated in Consob Communications No. 98015375
of 27th February 1998 and No. 1025564 of 6th April 2001, defined as all those transactions
which, because of their significance/importance, the nature of the counterparties, the content
of the transaction (even in relation to ordinary operations), the way in which the transfer price
is decided and the timing of the event (close to the end of the financial year) might give rise to
doubts concerning: the correctness/completeness of the information in the accounts, a
conflict of interests, the security of the companies assets and the rights of non controlling
shareholders.
With Resolution No. 17221 of 12th March 2010 – amended by the subsequent Resolution No.
17389 of 23rd June 2010 – the Consob (Italian securities market authority) approved a
Regulation concerning related-party transactions. The new regulations concern the procedures
to be followed for the approval of transactions performed by listed companies and the issuers
of shares with a broad shareholder base with parties with a potential conflict of interest,
including major or controlling shareholders, members of the management and supervisory
bodies and senior managers including their close family members.
The key points of the regulations issued are as follows:
- they strengthen the role of independent board members at all stages of the decision-making
process concerning related-party transactions;
- a regime of transparency;
- the introduction of detailed corporate governance regulations containing rules designed to
ensure substantial and procedural integrity in related-party transactions (a special regime
for companies which adopt a two tier system of governance).
The regulations currently apply within the UBI Banca Group to UBI Banca Scpa and to Banco
San Giorgio Spa, because these banks have a broad shareholder base.
In relation to the above, the members of the competent bodies of the banks mentioned have
approved regulations which govern related-party transactions, within the set time limits. These
are available on their respective corporate websites and appropriate internal processes have
been defined to ensure compliance with the new provisions.
148
As specifically concerns UBI Banca, the Supervisory Board has appointed a Related Parties
Committee from among its members to which transactions falling within the scope of the
regulations must be submitted in advance.
In this respect the UBI Banca regulations have excluded the following transactions from their
scope of application and these are consequently not subject to the disclosure obligations
required under the Consob regulation, but without prejudice to the provisions of Art. 5,
paragraph 8, where applicable, of the said Consob Regulation:
(a) shareholders’ resolutions concerning the remuneration of the Members of the Supervisory Board passed in
accordance with Art. 2364-bis of the Italian Civil Code, including those concerning the determination of a total
sum for the remuneration of the Members of the Supervisory Board assigned particular offices, powers and
functions;
(b) remuneration schemes based on financial instruments approved by shareholders in accordance with Art. 22,
letter. b), of the Corporate By-Laws and in compliance with Art. 114-bis of the Consolidated Finance Act and the
relative operations to implement them;
(c) resolutions, other than those referred to under the preceding letter a) of this article, concerning the fees of
Members of the Management Board appointed to special positions and other key management personnel and also
the resolutions with which the Supervisory Board determines the fees of the Members of the Management Board
on condition that:
(i)
UBI Banca has adopted a remuneration policy;
(ii)
the Remuneration Committee formed by the Supervisory Board in accordance with Art. 49 of the Corporate
By-Laws has been involved in the definition of that remuneration policy;
(iii)
a report setting out the remuneration policy has been submitted for approval or a consultative vote to a
Shareholders' Meeting;
(iv)
the remuneration awarded is consistent with that policy;
(d) “transactions of negligible amount” are those related-party transactions for which the amount is less than 250
thousand euro. If a related-party transaction is concluded with a member of the key management personnel, a
close family member of that person or with companies controlled by or subject to significant influence of those
persons, it will be considered a transaction of negligible amount if the amount of the transaction is not greater
than 100 thousand euro;
(e) transactions which fall within the ordinary performance of operating activities and the related financial activities
concluded under equivalent market or standard conditions;
(f) transactions to be performed on the basis of instructions for the purposes of stability issued by the supervisory
authority, or on the basis of instructions issued by the Parent of the Group to carry out instructions issued by the
supervisory authority in the interests of the stability of the Group;
(g) transactions with or between subsidiaries and also venturers in joint ventures, as well as transactions with
associates, if no significant interests of other related parties exist in the subsidiaries or associates that are
counterparties to the transaction.
Also, in compliance with Consob recommendations, transactions with related-parties of UBI
Banca performed by subsidiaries are subject to the regulations in question if, under the
provisions of the Corporate By-Laws or internal regulations adopted by the Bank, the
Management Board, the Supervisory Board, in response to a proposal of the Management
Board, or even an officer of the Bank on the basis of powers conferred on that officer, must
preliminarily examine or approve a transaction to be performed by subsidiaries.
In accordance with Art. 5, paragraph 8 of the aforementioned Consob Resolution No.
17221/2010, we report that in relation to the funding requirements of UBI Leasing, during
the course of the first half of 2011, UBI Banca provided short term funding to that company
totalling 6.587 million euro. This funding is subject to specific regulations which govern
intragroup transfer pricing.
Furthermore:
no transactions were performed in the reporting period with other related parties which
influenced the capital position or the results of the Parent Bank, UBI Banca to a significant
extent;
there have been no modifications and/or developments of transactions with related parties,
which may have been reported in previous financial reports, that could have a significant
effect on the financial position or the results of the Parent, UBI Banca.
Finally with regard to Banco di San Giorgio, the most important transactions concluded in the
first half of 2011 concerned relations with the Parent (term deposits and the issue of debt
using bonds to restore structural financial balance in accordance with the Group financial
risks policy) and with other banks in the Group (sale to Banco di Brescia of loans relating to
two corporate counterparties for a total of 26,6 million euro).
149
Other information
Litigation
No litigation involving significant amounts was concluded during the first half of 2011. Nor is
there any significant additional information to report with respect to that already given in the
2010 Annual Report.
The section “Information on risks and hedging policies” may be consulted for information on
legal risk.
Inspections
In the first half of 2011 the Guardia di Finanza (Finance Police) served three “Written
notifications of findings” for failure to report suspect transactions. The recipients of the
notifications, served jointly on the legally authorised representatives of the respective network
banks, are two branch managers of Banco di Brescia and one branch manager of Banca
Popolare Commercio e Industria.
The relative defence documents were filed with the Ministry of the Economy and Finance
within the set time limits.
As concerns, on the other hand, a notification served in 2006, the Ministry of the Economy
and Finance summoned the recipient of the provision, jointly with Banca Popolare di Bergamo,
to a hearing that was held on 8th February 2011. The legal advisor of the bank presented
defence documents and the case was dismissed with a provision of the following 23rd May.
As already reported in the 2010 Annual Report, on 28th January 2011, the Bank of Italy
announced the commencement of inspections of the UBI Banca Group – pursuant to Art. 68 of
Legislative Decree No. 385/1993 – into the management and measurement of risks assumed
by the product companies which use large distribution networks (UBI Banca Lombarda Private
Investment and B@nca 24-7) or operate online (IW Bank). The relative activities were
concluded at the end of June. The relative inspection report had not yet been received at the
date of this report.
On 12th May 2011 the Consob notified Banca Popolare di Bergamo of the results of an
inspection conducted in 20101. It had found a few matters requiring attention on which it
asked the managing body of the bank to take corrective action.
In a meeting of 11th July 2011, the Board of Directors examined and studied the matters
raised, taking note of the Consob’s observations. It decided to set up a specific working group,
which included personnel from the relevant functions at the Parent, designed to identify and
programme appropriate organisational and IT action to remedy the matters raised.
1 The inspection, conducted by the Intermediaries Division – Supervisory Office of the Consob, commenced in December 2009 and was
concluded on 25th October 2010. Its purpose was to ascertain the actual degree of compliance by the bank with regulations which
implemented the MiFID regarding the provision of investment services, with particular regard to the advisory service and the
progressive update of the solutions adopted pursuant to Consob Communication No. 9019104 of 2nd March 2009 (Level 3 –
Intermediary Regulations) concerning the duty of an intermediary to act with integrity and transparency when distributing illiquid
financial products.
150
Tax aspects
Summary of changes occurring during the first half of 2011
Decrees were issued towards the end of the first half of 2011, which affect the Group: the
“Growth decree”, Decree Law No. 70 of 13th May 2011, and the “Financial stabilisation decree”,
Decree Law No. 98 of 6th July 2011. These have recently been converted into law but still lack
a definitive framework in terms of interpretation. The most important points of these measures
are as follows:
Growth Decree – Decree Law No. 70/2011
This decree, converted into Law No. 106 of 12th July 2011, introduced simplifications into the
tax obligations of taxpayers, with regard to the following:
- tax inspections;
- tax assessment enforcement;
- tax collection;
- income tax and/or substitute tax returns;
- the documentation for some transactions;
- recalculation of some asset values for tax purposes.
Measures to facilitate the issue by banks of special bonds for investment in Southern Italy are
of greater importance, with the application of a 5% withholding tax instead of the ordinary rate
of 12,50%.
Measures affecting property funds are equally important with the introduction of a 20% tax on
income paid to investors on condition that they do not hold more than 5% of the fund itself. In
this event taxation is on a “transparency basis” (tax on earnings declared by the fund is paid
directly by the individual investors).
Financial stabilisation decree – Decree Law No. 98/2011
This decree, converted into Law No. 111 of 15th July 2011, has significant effects for the
banking sector:
- an increase of 0,75 percentage points from 3,90% to 4,65% in the base rate on the Imposta
Regionale sulle Attività Produttive (IRAP - local production tax) tax for banks and financial
intermediaries. Extra regional percentages must then be added to this base rate. The
measure is effective from 1st January 2011;
- an appreciable increase in stamp duty on the communication relating to the custodial
deposit of customer securities. The new measure sets a duty ranging from a minimum of
34,20 euro to a maximum of 680 euro annually, depending on the value of the securities
deposited. These amounts will increase from 2013, with the base rate remaining at 34,20
euro and the maximum rate rising to 1.100 euro;
- the reduction to 4% from the previous 10% in the rate for the withholding tax applied by
banks on payments made by taxpayers who intend to benefit from deductible expenses i.e.
building work, refurbishment, etc.;
- the introduction of the right to realign for tax purposes increases in the value of equity
investments held by parties who perform extraordinary transactions or acquired in relation
to the sale/purchase of a company. The realignment only concerns increases in the value of
equity investments attributable to goodwill, brands or other intangible assets where the
investing company is required to prepare consolidated financial statements for those equity
investments. The relative tax relief involves a lump sum payment on 30th November 2011 of
a substitute tax of 16%. The amortisation for tax purposes of the increased value may be
performed from 2013 over ten tax years;
- further measures of a procedural nature concerning tax inspections and business relations
with investees resident in EU countries.
Second financial stabilisation decree – Decree Law No. 138/2011
Decree Law No. 138 was approved on 13th August as part of more complex financial
stabilisation measures designed to balance the government budget in 2013 which were
introduced as a result of the continuing pressures on financial markets. Amongst other things
it changes the withholding tax on income from capital and on capital gains to 20% from the
151
current rates of 12,5% and 27% for bank deposits, current accounts and certificates of
deposit. The new rate, which does not apply to Italian government securities, will enter into
force, if the decree is converted into law, on 1st January 2012; some transition mechanisms
have been provided. This will involve considerable changes in terms of procedures for the
banking sector, both in terms of IT systems and documents with regard to customers, and
may require changes to funding policies and instruments.
TAX FOR ENTITIES SUBJECT TO IFRS
A Ministerial Decree of 8th June 2011 was published on 13th June 2011, which adds to
previous regulations concerning the tax treatment for corporate income tax (IRES) and local
production tax (IRAP) purposes for those entities subject to IFRS and more specifically
concerning the implementation of the “reinforced derivation principle”.
The following is of particular interest in this decree:
- the definition of hedges for tax purposes which also comprise assets designated at fair value;
- the tax treatment for financial instruments reclassified into different portfolios pursuant to
IAS 39;
- the tax treatment, with regard to companies, for the grant of shares to employees;
- confirmation of the tax classifications for properties regardless of the different classification
under IFRS;
- the tax treatment of provisions or other liabilities as designated by IFRS;
- the application for tax purposes of classifications under the Consolidated Income Tax Act
concerning shares and bonds as opposed to the provisions of IAS 32.
Furthermore, the following concerns interpretation:
• tax authority circular No. 7/2011, which illustrates the treatment for corporate income tax
(IRES) purposes of items in financial statements prepared according to IFRS and that is on
the combined basis of Legislative Decree No. 38/2005, Law No. 244/2007 and Ministerial
Decree No. 48/2009. The income of those entities subject to IFRS, which include all the
companies in the UBI Group, is first determined according to the “simple derivation”
principle, while the “reinforced derivation” principle has been in force since 1st January
2008. The latter principle also applies retroactively under certain conditions. The circular
confirms the validity of practices followed by Group companies for those years and it is
therefore considered that the pending tax disputes in this regard can be concluded by
applications for internal review or the abandonment of each inspection;
• tax authority circular No. 23/2011, which follows on from the previous circular No.
51/2010, provides further clarification of legislation concerning CFCs, “Controlled Foreign
Companies”, introduced to prevent the attribution of income to foreign companies located
in blacklisted countries, or with tax levels 50% lower than the corresponding national
IRES, which would otherwise be attributable to the Italian parent.
For the Group, this provision involved the presentation of appeals for the non application
of the measure to six controlled companies located in Delaware (USA) formed for the sole
purpose of strengthening capital in accordance with supervisory authority regulations in
force in the early 2000s.
A similar appeal was also made for the subsidiary UBI Banca International Luxembourg on
the basis of the ratio of financial income to intercompany income in terms of the total on
its income statement.
It is considered that the grounds given in the appeal are consistent with the contents of the
circular and that therefore “taxation by transparency” for those companies is not
necessary;
• tax authority circular No. 33/2011 illustrates the new tax regime for Italian and foreign
registered mutual investment funds in force from 1st July 2011. The regime for the taxation
of income from funds on a mark-to-market basis was repealed on that date with tax now
levied when earnings are received by investors or when the investment is redeemed. This
followed the approval of Decree Law No. 225 of 29th December 2010, converted into Law
No. 10 of 26th February 2011, which removed the penalisation of domestic funds with
respect to the same funds registered abroad. From an operational viewpoint, the change in
the legislation required considerable action to be taken with regard to procedures and
above all the need to properly adjust the amounts and taxation for those instruments held
by customers as at 30th June 2011. The circular in question contains important
152
clarifications concerning “tax substitutes” (who apply withholding taxes) and
intermediaries and, in particular, on the documentation and procedures that apply to
them for the correct application of the new tax regulations.
BUSINESS WITH NON RESIDENTS
– TRANSFER PRICES
Operational clarifications were provided by the tax authorities with circular No. 58/E of 15th
December 2010 for the special procedures to prevent resident companies from being subject to
tax penalties in relation to violations concerning the determination of “transfer prices” for tax
purposes (Art. 110, paragraph 7 of the Consolidated Income Tax Act) in relation to
transactions and business with foreign subsidiaries. As a result the necessary documentation
is now being prepared for the presentation of a “master file” and national documentation, as
required by the relative provision of the director of the tax authorities issued on 29th
September 2010.
Generally speaking, firms which operate with foreign parent companies and subsidiaries are
hopeful that the financial authorities will simplify the obligations at least in relation to the
magnitude of transnational business.
Tax litigation
The majority of the companies in the UBI Group are classified as “large taxpayers” due to the
size of their income and they therefore fall under the regional departments of the tax
authorities for both tax inspections and the subsequent tax litigation. Furthermore, some
Group companies have participated in the tax consolidation pursuant to Art. 117 et seq of the
Consolidated Income Tax Act in various tax years. It is in this context that we report the
following for the first half of the year.
BANCA POPOLARE DI ANCONA: a tax inspection was commenced in March by the Regional
Department of the Tax Authorities of the Marches concerning the tax years 2007 and 2008
and questions were raised concerning the attribution of some expenses incurred. Considering
the differing interpretation in law of the concept of the attribution of expenses, inclusive of
documentation factors, it was decided to file an application for full compliance by consent with
the tax assessment report pursuant to Art. 5 bis of Legislative Decree No. 218/1997. The
resulting amounts due are approximately 478 thousand euro for increased corporate income
tax (IRES) and local production tax (IRAP) and approximately 80 thousand euro for
administrative fines;
UBI LEASING: on 20th June 2011, on conclusion of a tax inspection which initially concerned
the tax year 2007, but was subsequently extended to also include the following years, the
Brescia tax unit of the Guardia di Finanza (finance police) issued a tax assessment report to
UBI Leasing. The inspection, which was interrupted repeatedly, had started in February 2009.
The tax assessment report centres primarily on the legality in civil (violation of the prohibition
on agreements of forfeiture) and tax law of sale and lease back transactions on property (land),
from which greater VAT payable arises amounting to 7,2 million euro, in addition to fines for
an equal amount. The Guardia di Finanza will file the tax assessment report with the Milan tax
authorities (Regional Department for Lombardy), which, if it agrees fully or in part with the
findings, will issue the relative notice of assessment;
BANQUE DE DEPOTS ET DE GESTION:
in May the Swiss tax authorities rejected the appeal made by
UBI Banca and BDG against a demand concerning the failure by BDG to apply a withholding
tax of 15% on dividends paid in the years 2006/2008 to its parent UBI Banca. The latter held,
on the contrary, that grounds existed in the case in question for the application of the parentsubsidiary directives. A further appeal was made against the decision in the relative local courts.
UBI BANCA: on 23rd June a tax inspection commenced, still in progress, on the tax year 2008
by the Bergamo tax unit of the Guardia di Finanza. At present the examination of documents
is still in progress.
* * *
153
The Group has been subjected to a significant number of tax inspections in recent years followed by tax
assessment reports, from which notices of tax assessment have arisen which generally confirm what was
found during the inspection. Where tax consolidation for corporate income tax (IRES) purposes exist,
with the relative joint liability, these inspections are then duplicated for the Parent as the consolidating
company. A summary is given below of the companies affected by these phenomena for each year.
NOTICES OF TAX ASSESSMENT
BPB Immobiliare (2003) increased taxation of 16,5 million euro, fines of 17,6 million euro
Contribution of company property operations considered by the tax authorities as the disposal of assets.
A ruling was given fully in favour of the company by the Tax Commission of the Province of Bergamo
against which the tax authorities appealed to the Regional Tax Commission of Lombardy. The relative
hearing was set for 14th November.
Banca Carime (2003) increased taxation of 14,4 million euro, fines of 22,6 million euro
Contribution of company property operations considered by the tax authorities as the disposal of assets.
A ruling was given fully in favour of the company by the Tax Commission of the Province of Cosenza
against which the tax authorities appealed to the Regional Tax Commission of Calabria. The hearing was
held on 14th July and the relative ruling has not yet been issued.
UBI Banca (2003) increased taxation of 5,3 million euro, fines of 6,4 million euro
Contribution of company property operations considered by the tax authorities as the disposal of assets.
A ruling was given fully in favour of the company by the Tax Commission of the Province of Bergamo
against which the tax authorities appealed to the Regional Tax Commission of Lombardy, for which the
hearing was held on 9th June, while the ruling has not yet been issued.
UBI Banca (2004 and 2005) increased taxation of 8,83 million euro, fines of 10,86 million euro
Alleged failure to apply a withholding tax on interest paid to a foreign subsidiary on deposits made by the
subsidiary, which were reclassified by the tax inspectors as financing. These were complex transactions
designed to strengthen capital performed in 2001 with the authorisation of the Bank of Italy. On the
basis of expert opinion it is considered that the tax regime applied by the bank – which was then Banca
Popolare di Bergamo and Banca Popolare Commercio e Industria – complied with the requirements of
contracts and the law. Since the question involves more than one year, notices of tax assessment for
2004 and 2005 have been received so far. An appeal has been presented for the latter year, while for
2004 the Tax Commission of the Province of Milan ruled in a hearing held on 2nd December 2010 that
collection of the amount demanded should be suspended, with a hearing scheduled for 30th June 2011.
The relative ruling has not yet been issued.
Banco di Brescia (2004 and 2005) increased taxation of euro 3,16 million euro, fines of 3,92 million euro
Alleged failure to apply a withholding tax on interest paid to a foreign subsidiary on deposits made by the
subsidiary, which were reclassified by the tax inspectors as financing. These were complex transactions
designed to strengthen capital performed in 2000 with the authorisation of the Bank of Italy. On the
basis of expert opinion it is considered that the tax regime applied by the bank complied with the
requirements of contracts and the law. The relative tax demands were appealed against before the Tax
Commission of the Province of Milan. While the verdict is pending for 2004 a collection order for 953
thousand euro was issued which the Bank paid.
UBI Leasing (2003, 2004, 2005 and 2006) increased taxation of euro 2,6 million euro, fines of 4,0 million
euro
Alleged improper application of a subsidised VAT rate on marine lease transactions or undue deduction
of VAT on invoices for non existent transactions and improper quantification of the recognition of
impairment losses on loans for IRES purposes. At present the tax authorities have issued an interim
collection order limited to the IRES demands for a total of 22 thousand euro.
Banco di Brescia (2004) increased taxation of 1,5 million euro, fines of 1,5 million euro
Alleged error in the technical recognition of expenses and improper valuation of securities owned. The tax
authorities have issued the relative collection order. As part of a second level assessment, the tax
authorities issued a collection order on the bank for 901 thousand euro, which it paid. Settlement
proposals are currently ongoing.
UBI Banca Private Investment (2004) increased taxation of 0,3 million euro, fines of 0,3 million euro
Alleged error in the technical recognition of expenses, including supplementary personnel redundancy
indemnities. The hearing for plea bargaining before the court of first instance was held on 1st July 2010
with an unsuccessful outcome for the bank. The bank reserves the right to appeal. As part of a second
level assessment, the tax authorities issued a collection order for 169 thousand which the bank has
already paid. Settlement proposals are currently ongoing.
154
Grifogest (2004) increased taxation of 0,15 million euro, fines of 0,15 million euro
Alleged infringement of the rules governing the period in which income and expenses are recognised. The
Tax Commission of the Province of Florence ruled fully in favour of the company’s appeal. The tax
authorities have lodged an appeal with the relative Regional Tax Commission.
UBI Leasing (2008) increased taxation of 0,30 million euro, fines of 0,30 million euro
Alleged mistaken calculation of the tax base for the purposes of land registry and mortgage duties
following end of lease purchase transactions on two finance lease contracts.
UBI Banca – BDG increased taxation of 1,5 million euro, fines of 0 million euro
Recovery of withholding taxes not applied by the subsidiary BDG on dividends paid in various tax years
to the Parent and considered as falling within the parent-subsidiary directives. The Swiss tax authorities
hold that SCPAs (joint stock co-operative companies), and therefore also UBI Banca, are not joint stock
companies and consequently do not fall within the scope of the directive. An appeal has been lodged in
the local court.
TAX ASSESSMENT REPORTS
Centrobanca (2006) increased taxation of 3 million euro
The tax authorities do not approve the criteria employed for the recognition of the disposal of loans to
customers or the recognition of impairment losses on those same loans notwithstanding the tax
derivation principle introduced for IFRS entities in 2005. The conduct of the company is also supported
by the reputable opinions of external advisors. Observations were presented against the claims in the tax
assessment report as permitted by the taxpayers’ statute (Law No. 212/2000). In consideration of the
magnitude of the demands, the inspectors referred the case to the Public Prosecutor’s Office of Milan. On
8th June 2011, section nine of the Court of Milan issued a ruling dismissing the case because there was
“no case to answer”.
On 20th July 2011 a notice of tax assessment was received from the tax authorities which took no
account whatsoever of the outcome of the criminal proceedings and confirmed the results of the tax
assessment report. As a consequence recourse was made to compliance by consent procedures to review
the measure.
UBI Banca (2006) increased taxation of 4,4 million euro
The same types of infringement as those reported for the notices of tax assessment relating to 2004 and
2005. The relative notice of assessment was received on 18th July 2011.
Banco di Brescia (2006) increased taxation of 1,5 million euro
The same types of infringement as those reported for the notices of tax assessment relating to 2004 and
2005.
Banco di Brescia (2006) increased taxation of two million euro
Presumed irregularities in the quantification of the recognition of impairment losses on loans for the
year. Observations were presented against the demands in the tax assessment report as permitted by the
taxpayers’ statute (Law No. 212/2000) and an appeal was subsequently lodged.
UBI Leasing (2006-2009) increased taxation of 1,56 million euro
The same types of infringement as those reported for the notices of assessment relating to 2004.
Silf (2007) increased taxation of 0,4 million euro
Presumed irregularities in the deductibility of some expenses during the year (in particular, those related
to commission expenses paid to financial advisors) and of loan losses as well as the quantification of the
recognition of impairment losses on loans for the year. Observations were presented against the demands
in the tax assessment report as permitted by the taxpayers’ statute (Law No. 212/2000).
UBI Banca (2003) increased taxation of 18 million euro
Alleged undue corporate income tax deductions of expense items in relation to contributions of
operations performed in 2003 which gave rise to the formation of the former Banche Popolari Unite
Group. The Parent not only pleaded the lack of grounds, but also raised the objection during the
inspection that the assessment was null and void because it related to a year (2003) for which the time
limit for assessment had expired on 31st December 2008, while the inspection was performed in 2010.
UBI Leasing (2007-2010) increased taxation of 7,2 million euro
As already mentioned, this demand related to property leasing transactions involving the construction of
the property, considered by the inspectors as irregular sale and lease back transactions.
155
OTHER TAX LITIGATION
Further tax litigation exists, relating mainly to years prior to 31st December 2007, which regard the
matters listed below.
UBI Banca (years between 1976 and 1984) increased taxation of 10,2 million euro
Cases pending before the Central Tax Commission, for most of which favourable decisions have been
given in 2010 and in the absence of an appeal to the Supreme Court of Cassation these will become final
judgements by the end of the year. They are based on the deductibility criteria for IRPEG (former
corporate income tax) and ILOR (former local income tax) purposes of various expense items, because
they relate specifically to assets from which income and proceeds subject to taxation is derived. They are
also based on the non taxability for IRPEG and ILOR purposes of interest due to the tax authorities on
tax credits, in the light of legislation in force at the time (prior to the Consolidated Income Tax Act,
pursuant to Presidential Decree No. 917/1986). Established precedents exist in decisions by the Court of
Cassation in favour of the grounds of the taxpayer.
UBI Banca (1980-1984) increased taxation of 1,4 million euro
Cases pending before the Central Tax Commission, for which favourable decisions have already been
given in 2010 and in the absence of an appeal to the Supreme Court of Cassation, these will become final
judgements by the end of the year. They concern the non applicability of the withholding tax pursuant to
Art. 26, paragraph 3 of Presidential Decree No. 600/1973 on interest paid by foreign banks to Italian
banks relating to deposits and current accounts held by the latter on their own account with the former.
Established precedents exist of applications for internal review by the tax authorities.
Banca Regionale Europea (2003) fines of 1,2 million euro
Appeal to the Supreme Court of Cassation by the tax authorities against a ruling in the court of second
instance in favour of the bank concerning the criteria employed by the bank to rectify its original tax
returns.
Banca Carime (2003 and 2004) increased taxation of 0,6 million euro
These are two cases for which favourable decisions were given in the court of first instance, which were
subject to appeal by the tax authorities before the competent Regional Tax Commission. They concern
the alleged failure to document withholding taxes on interest paid on treasury postal bonds issued prior
to 1997.
Banca Valle Camonica (1977 and 1980) increased taxation of 0,16 million euro
Appeal to the Supreme Court of Cassation by the bank against a ruling of the Central Tax Commission
partially unfavourable to the bank regarding notices of tax assessment for increased taxable income for
IRPEG (former corporate income tax) and ILOR (former local income tax) purposes.
156
Events subsequent to the end of the first
half and the business outlook for
consolidated operations
No events of importance that might affect the operating and financial position presented
occurred after 30th June 2011, the reporting date of this interim financial report, and until
29th August 2011, the date of its approval by the Management Board of UBI Banca Scpa.
The following is reported for information:
12th-13th July 2011: the shareholders’ resolution passed on 30th April 2011, concerning the
repurchase of treasury shares to grant to the top management of the Group as part of
Group incentive schemes, was implemented (see the section “Significant events in the first
half of 2011”);
15th July 2011: the results of the 2011 European stress tests were published in which UBI
Banca participated together with four other Italian banks. As reported in the relevant
section of this interim report, which may be consulted, UBI Banca passed the test with a
level of capitalisation well above the benchmark set (5%) [and also above the observation
threshold set (5%-6%)], which confirmed the soundness of the Group;
18th July 2011: the increase in the share capital by 999.908.234,75 euro was concluded,
fully subscribed for a total of 262.580.944 new shares (see the section “Significant events in
the first half of 2011” for further information);
27th July 2011: the Bank of Italy notified Centrobanca of a provision concerning the
application, pursuant to Art. 145 of Legislative Decree No. 385/93 (the consolidated
banking act), of administrative fines for a total of 339 thousand euro on members and
former members of the management and supervisory bodies and on the former General
Manager in office at the time of the matters in question (2008)2.
The provision was issued following inspections conducted in the period February-July
2010, designed to assess the Group with regard to the management, governance and
control of credit risk in the corporate customer segment, during which the supervisory
authority found irregularities relating to Centrobanca subject to penalties (failures in the
organisation and management of credit by the General Manager, failures in organisation
and internal controls on the part of members and former members of the Board of Directors
and also failures with controls by the Board of Statutory Auditors);
in the period from 1st August 2011 to 16th September 2011 option rights and possible preemptive rights on unopted shares may be exercised, which will otherwise expire, in relation
to the increase in the share capital of Banco di San Giorgio, decided by the Board of
Directors in the first half of 2011, on the basis of a specific authorisation received from an
Extraordinary General Meeting of the Shareholders held on 8th January 2010. This is an
increase in the share capital by payment in cash, in more than one issuance of between
94.647.277,50 euro and 102.119.430,00 euro involving the issue of a maximum of
4.981.435 ordinary shares, with normal dividend entitlement and a par value of 1,50 euro
per share, to be offered as an option right to shareholders at a ratio of three new ordinary
shares for every 38 ordinary shares owned at a price of 4,00 euro per share (of which 2,50
euro as a share premium). Any remaining shares on which options have not been taken up
following the exercise of option rights and subsequent pre-emption rights shall be
subscribed by the major shareholders (UBI Banca and Banca Regionale Europea). In order
to ensure the successful outcome of the increase in the share capital, the major
shareholders have passed resolutions committing to subscribe the share capital increase
for the part on which they have options and also to subscribe any shares that may remain
2 In accordance with Art. 145, paragraph 10 of the Consolidated Banking Act, Centrobanca is civilly liable to make the payment, with
the obligation to recover the amounts from those responsible.
157
following the exercise of option rights and subsequent pre-emption rights by the other
shareholders.
* * *
The following remarks are made concerning the business outlook for operations in the
remainder of the year.
The trend for operating income will continue to be influenced by the sovereign debt crisis with
consequent pressures on financial markets and on interest rate levels. Consequently
commercial action has been taken which is designed to achieve a generally higher level of
operating income in the second half than that recorded in the first part of the year.
Operating expenses, which already include the possibility of provisions in relation to the
renewal of the national labour contract and to variable remuneration (not present last year),
are expected to fall as a whole compared to 2010, partly as a result of the trade union
agreement signed in May 2010.
As concerns credit quality, despite the unfavourable economic background, current trends
should allow an annual level of losses on net loans which is lower than that recorded in 2010.
If current stock market trading prices remain unchanged it will be necessary to recognise
further impairment losses on the stake held in Intesa Sanpaolo.
Net of non recurring items, an improvement compared to 2010 in profits on ordinary activities
is expected for the full year 2011, in the absence of a further deterioration in the economic and
financial environment.
Bergamo, 29th August 2011
THE MANAGEMENT BOARD
158
CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
AS AT AND FOR THE PERIOD ENDED
30TH JUNE 2011
Condensed interim mandatory consolidated
financial statements as at and for the
period ended 30th June 2011
Consolidated statement of financial position
30.6.2011
31.12.2010
30.6.2010
Figures in tho usands o f euro
ASSETS
10.
Cash and cash equivalents
20.
Financial assets held for trading
30.
Financial assets at fair value
40.
Available-for-sale financial assets
60.
Loans to banks
4.384.636
3.120.352
3.290.637
70.
Loans to custom ers
102.774.467
101.814.829
100.157.746
80.
Hedging derivatives
413.389
591.127
916.055
90.
Fair value change in hedged financial assets (+/-)
254.474
429.073
621.964
100.
Equity investm ents
381.376
368.894
406.789
120.
Property, equipm ent and investment property
2.077.758
2.112.664
2.097.820
130.
Intangible assets
of which:
- goodwill
5.287.195
5.475.385
5.475.662
4.286.210
4.416.660
4.397.766
140.
Tax assets
a) current
b) deferred
2.312.956
316.232
1.996.724
1.723.231
650.177
1.073.054
1.362.428
381.214
981.214
150.
Non-current assets and disposal groups held for sale
160.
Other assets
TOTAL ASSETS
595.685
609.040
632.183
1.093.974
2.732.751
2.640.330
468.038
147.286
155.143
10.223.610
10.252.619
12.501.312
7.041
8.429
40.285
2.476.298
1.172.889
1.801.061
132.750.897
130.558.569
132.099.415
30.6.2011
31.12.2010
30.6.2010
Figures in tho usands o f euro
LIABILITIES AND EQUITY
10.
Due to banks
4.966.574
5.383.977
9.252.062
20.
Due to customers
56.199.737
58.666.157
58.534.315
30.
Securities issued
49.964.140
48.093.888
44.828.119
40.
Financial liabilities held for trading
844.259
954.423
896.016
60.
Hedging derivatives
953.439
1.228.056
1.560.152
80.
Tax liabilities
1.309.724
993.389
814.057
a) current
b) deferred
769.019
540.705
441.433
551.956
248.106
565.951
90.
Liabilities associated with activities under disposal
987
-
-
4.778.011
2.600.165
3.697.804
Post-employment benefits
383.467
393.163
405.118
Provisions for risks and charges:
a) pension and similar obligations
b) other provisions
335.057
67.022
268.035
303.572
68.082
235.490
271.353
70.464
200.889
100.
Other liabilities
110.
120.
140.
Fair value reserves
-205.821
-253.727
-147.522
170.
Reserves
2.422.253
2.362.382
2.317.202
180.
Share premiums
7.401.115
7.100.378
7.100.378
190.
Share capital
2.203.694
1.597.865
1.597.865
210.
Non-controlling interests (+/-)
942.551
962.760
870.422
220.
Profit for the period/year (+/-)
251.710
172.121
102.074
132.750.897
130.558.569
132.099.415
TOTAL LIABILITIES AND EQUITY
160
Consolidated income statement
1H 2011
1H 2010
FY 2010
Figures in tho usands o f euro
10.
Interest and similar income
1.917.327
1.683.391
3.525.312
20.
Interest expense and sim ilar
(875.144)
(629.988)
(1.378.714)
30.
40.
Net interest income
Com mission income
1.042.183
671.232
1.053.403
705.735
2.146.598
1.378.117
50.
Com mission expense
(85.722)
(100.807)
(196.892)
60.
70.
Net commission income
Dividends and sim ilar income
585.510
18.665
604.928
18.237
1.181.225
24.099
80.
Net trading income (loss)
1.891
(56.924)
(56.891)
90.
Net hedging income (loss)
Incom e (loss) from disposal or repurchase of:
a) loans
b) available-for-sale financial assets
d) other financial transactions
(3.029)
12.447
442
10.543
1.462
49.649
2.330
(380)
9.267
(6.557)
67.209
17.057
(3.850)
31.245
(10.338)
100.
110.
Net profit (loss) on financial assets and liabilities at fair value
(4.088)
(941)
6.669
120.
Gross income
Net impairm ent losses on:
a) loans
b) available-for-sale financial assets
d) other financial transactions
1.653.579
(283.114)
(263.522)
(20.836)
1.244
1.670.682
(339.749)
(321.704)
(19.426)
1.381
3.385.966
(756.653)
(706.932)
(42.364)
(7.357)
140.
Net financial income
1.370.465
1.330.933
2.629.313
170.
Net income from banking and insurance operations
Adm inistrative expenses
a) personnel expense
b) other administrative expenses
1.370.465
(1.170.566)
(737.944)
(432.622)
1.330.933
(1.208.147)
(747.528)
(460.619)
2.629.313
(2.375.174)
(1.451.584)
(923.590)
130.
180.
190.
Net provisions for risks and charges
(14.555)
(6.622)
(27.209)
200.
210.
Net impairm ent losses on property, equipment and investment property
Net impairm ent losses on intangible assets
(55.975)
(81.562)
(55.245)
(64.001)
(109.838)
(130.500)
220.
Other net operating incom e
115.765
113.747
239.430
230.
240.
Operating expenses
Profits of equity investm ents
(1.206.893)
9.915
(1.220.268)
11.457
(2.403.291)
99.027
260.
Net impairm ent losses on goodwill
(126.306)
(4.145)
(5.172)
270.
Profits on disposal of investments
1.040
1.610
14.458
280.
Pre-tax profit from continuing operations
Taxes on income for the period from continuing operations
48.221
216.748
119.587
(94.143)
334.335
(231.980)
Post-tax profit from continuing operations
Post-tax profit from discontinued operations
264.969
-
25.444
83.357
102.355
83.368
330.
Profit for the period/year
Profit for the year/period attributable to non-controlling interests
264.969
(13.259)
108.801
(6.727)
185.723
(13.602)
340.
Profit for the period/year attributable to the shareholders of the Parent
251.710
102.074
172.121
"Annualised" Basic EPS (Earnings Per Share)
0,6722
0,3057
0,2633
"Annualised" Diluted EPS (Earnings Per Share)
0,6590
0,3057
0,2633
290.
300.
310.
320.
Consolidated statement of comprehensive income
1H 2011
Figures in thousands of euro
10.
PROFIT FOR THE PERIOD/YEAR
1H 2010
FY 2010
264.969
108.801
185.723
Other comprehensive income net of taxes
20.
Available-for-sale financial assets
50.825
(382.690)
(456.017)
30.
Property, equipment and investment property
-
-
-
40.
50.
Intangible assets
Foreign investment hedges
-
-
-
60.
Cash flow hedges
(1.739)
711
1.356
70.
Foreign currency differences
-
-
-
80.
Non current assets held for sale.
-
-
-
90.
100.
Actuarial gains (losses) on defined benefit plans
Share of fair value reserves of equity-accounted investees
1.851
(1.823)
2.910
(7.131)
(12.537)
(30.398)
110.
Total other comprehensive income (expense) net of taxes
120.
COMPREHENSIVE INCOME (EXPENSE) (item 10 + 110)
CONSOLIDATED COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING
INTERESTS
CONSOLIDATED COMPREHENSIVE INCOME (EXPENSE) ATTRIBUTABLE TO THE
SHAREHOLDERS OF THE PARENT
130.
140.
161
49.114
(386.200)
(497.596)
314.083
(277.399)
(311.873)
15.031
4.439
7.017
299.052
(281.838)
(318.890)
Statement of changes in consolidated equity to 30th June 2011
RestateBalances as ment of
at 31.12.2010 opening
balances
Changes January - June 2011
Allocation of prior year
profit
Balances as
at 1.1.2011
Reserves
Changes
in reserves New share
issues
Dividends
and other
uses
Figures in thousands of euro
Share capital:
Equity as at 30th June
2011
Equity transactions
RepurExtraordinary Change in Derivatives
chase of
distribution of
equity
on treasury
treasury
dividends
instruments
shares
shares
Consolidated attributable to attributable
the
to non
comprehensive income shareholders controlling
of the Parent interests
Stock
options
1.597.865
-
1.597.865
-
-
-
605.829
-
-
-
-
-
-
2.203.694
510.694
1.597.865
-
1.597.865
-
-
-
605.829
-
-
-
-
-
-
2.203.694
474.604
b) other shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36.090
Share premiums
7.100.378
-
7.100.378
-
-
-
300.737
-
-
-
-
-
-
7.401.115
74.483
Reserves
2.362.382
-
2.362.382
69.885
-
-10.014
-
-
-
-
-
-
-
2.422.253
314.473
1.674.719
-
1.674.719
69.885
-10.014
-
-
-
-
-
-
-
1.734.590
213.439
687.663
-
687.663
-
-
-
-
-
-
-
-
-
687.663
101.034
Fair value reserves
-253.727
-
-253.727
-
-
564
-
-
-
-
-
-
47.342
-205.821
29.642
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Treasury shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
172.121
-
172.121
-69.885
-102.236
-
-
-
-
-
-
-
251.710
251.710
13.259
10.979.019
-
10.979.019
-
-102.236
-9.450
906.566
-
-
-
-
-
299.052
12.072.951
962.760
-
962.760
-
-
-35.240
-
-
-
-
-
-
15.031
a) ordinary shares
a) profit-related
b) other
Profit for the period
Equity attributable to the
shareholders of the Parent
Equity attributable to noncontrolling interests
X
X
942.551
Equity attributable to non controlling interests, net of fair value reserves and profit for the period, decreased by 21,6 million euro compared to 31st December 2010 as follows:
share capital -3,9 million euro; share premiums –4,3 million euro; other reserves –13,4 million euro.
The public tender offer to purchase relating to IW Bank caused a reduction in the share capital attributable to non controlling interests of IW Bank and its subsidiary InvestNet of 3,5 million euro, while the
relative share premiums decreased by 3,4 million euro.
Other important transactions completed in the first half of 2011 regarded the increase in the share capital of UBI Leasing – an increase in the share capital attributable to non controlling interests of one
million euro and an increase in the relative share premiums of approximately 0,4 million euro – and a change in the percentage of ownership of Banco di San Giorgio which resulted in a decrease in the share
capital attributable to non controlling interests of approximately 1,4 million euro and in the relative share premiums of approximately one million euro.
As concerns changes in other reserves, the increase for profits brought forward net of controlling interests for the year ended 31st December 2010 of 13,6 million euro was offset by payments for dividends and other
uses of 27,7 million euro (-14,1 million euro).
Other changes on the balance totals reported above relate to normal changes in percentage ownership of some banks in the Group.
The effect of the transfer to the income statement of assets which formed part of the purchase price allocation had a negative impact on profit attributable to non controlling interests amounting to
approximately 4,4 million euro (5,1 million euro as at 30th June 2010).
As concerns equity attributable to the shareholders of the Parent, the interim consolidated management report may be consulted for information on the capital increase.
The reduction in reserves of profits of the Group by 10 million euro relates almost totally to the transactions reported above. These transactions, which did not result in any loss and/or acquisition of control
of banks or companies, are considered as transactions between shareholders and the relative results affected consolidated equity.
These included the public tender offer to purchase on IW Bank accounting for -9,2 million euro and the percentage change in ownership of Banco di San Giorgio accounting for -1,4 million euro.
Finally, exchange rate differences had a positive impact on the equity of Swiss banks and companies of approximately 2 million euro.
162
Statement of changes in consolidated equity to 30th June 2010
RestateBalances as ment of Balances as
at 31.12.2009 opening
at 1.1.2010
balances
Reserves
Equity as at 30th June
2010
Equity transactions
attributable
Consolidated
to non
comprehen- attributable to
sive income shareholders controlling
of the Parent interests
RepurChanges
Extraordinary Change in Derivatives
Stock
in reserves New share chase of distribution of
equity
on treasury
issues
treasury
options
dividends
instruments
shares
shares
Dividends
and other
uses
Figures in thousands of euro
Share capital:
Changes January - June 2010
Allocation of prior year
profit
1.597.865
-
1.597.865
-
-
-
-
-
-
-
-
-
-
1.597.865
520.744
1.597.865
-
1.597.865
-
-
-
-
-
-
-
-
-
-
1.597.865
520.744
b) other shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share premiums
7.100.378
-
7.100.378
-
-
-
-
-
-
-
-
-
-
7.100.378
Reserves
2.207.863
-
2.207.863
69.878
-
39.461
-
-
-
-
-
-
-
2.317.202
231.235
1.604.841
-
1.604.841
69.878
-
-
-
-
-
-
-
-
-
1.674.719
183.295
603.022
-
603.022
-
-
39.461
-
-
-
-
-
-
-
642.483
47.940
Fair value reserves
235.043
-
235.043
-
-
1.347
-
-
-
-
-
-
-383.912
-147.522
32.179
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Treasury shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
270.099
-
270.099
-69.878
-200.221
-
-
-
-
-
-
-
102.074
102.074
6.727
11.411.248
-
11.411.248
-
-200.221
40.808
-
-
-
-
-
-
-281.838
10.969.997
938.342
-
938.342
-
-72.359
-
-
-
-
-
-
4.439
a) ordinary shares
a) profit-related
b) other
Profit for the period
Equity attributable to the
shareholders of the Parent
Equity attributable to noncontrolling interests
X
79.537
X
870.422
With regard to non controlling interests, the decrease in the reserves, amounting to 72,4 million euro, is due primarily to the branch network optimisation operation, which resulted in changes in the
percentages of ownership for some banks, with a total impact of approximately 11,2 million euro, to the distribution of the previous year profit of some companies amounting to 43,5 million euro and also to
changes in fair value reserves amounting to 17,7 million euro. The effect of the transfer to the income statement of assets which formed part of the purchase price allocation had a negative impact on profit
attributable to non controlling interests amounting to approximately 5,1 million euro.
163
Consolidated statement of cash flows (indirect method)
1H 2011
1H 2010
Figures in thousands o f euro
A. OPERATING ACTIVITIES
1. Ordinary activities
492.103
401.000
251.710
102.074
-
profit for the period (+/-)
-
gains/losses on financial assets held for trading and on financial assets/liabilities at fair value (+/-)
2.197
57.864
-
gains/losses on hedging activities (-/+)
3.029
-49.649
-
net impairment losses on loans (+/-)
283.114
339.749
-
net impairment losses on property, equipment and investment property and intangible fixed assets (+/-)
137.537
119.246
-
net provisions for risks and charges and other expense/income (+/-)
140.861
10.767
-
net premiums not received (-)
-
-
-
other insurance income/expense not received(-/+)
-
-
-
outstanding taxes and duties
-273.390
-179.051
-
net impairment losses on disposal groups held for sale after tax (-/+)
-
-
-
other adjustments (+/-)
2. Cash flows generated/absorbed by financial assets
-52.955
-
-2.114.912
-10.969.473
1.640.668
-1.121.489
-
financial assets held for trading
-
financial assets at fair value
-
available-for-sale financial assets
-
loans to banks: repayable on demand
-
-
-
loans to banks: other loans
-1.264.284
-12.373
-
loans to customers
-1.223.160
-2.472.198
-
other assets
-950.287
-1.246.575
787.715
10.697.185
3. Cash flows generated/absorbed by financial liabilities
-
amounts due to banks repayable on demand
-
amounts due to banks: other payables
-
financial liabilities held for trading
-
financial liabilities at fair value
-
other liabilities
-326.022
17.643
8.173
-6.134.481
-
-
-417.403
3.927.628
due to customers
-2.466.420
5.669.354
securities issued
1.870.252
478.675
-110.164
40.629
Cash flows generated/absorbed by operating activities
-
-
1.911.450
580.899
-835.094
128.712
22.409
19.847
B. INVESTING ACTIVITIES
1. Cash flows generated by
-
disposals of equity investments
-
dividends received on equity investments
-
disposals of held-to-maturity investments
-
-
-
disposals of property, equipment and investment property
-
1.610
-
disposals of intangible assets
-
-
-
disposals of subsidiaries and lines of business
2. Cash flows absorbed by
2.704
-
18.665
18.237
1.040
-
-5.000
-
-
purchases of equity investments
-5.000
-
-
purchases of held-to-maturity investments
-
-
-
purchases of property, equipment and investment property
-
-
-
purchases of intangible assets
-
-
-
purchases of subsidiaries and lines of business
-
-
17.409
19.847
Cash flows generated/absorbed by investing activities
C. FUNDING ACTIVITIES
- issues/purchases of treas ury shares
-
issues/purchases of equity instruments
-
distribution of dividends and other uses
Cash flows generated/absorbed by funding activities
CASH FLOWS GENERATED/ABSORBED DURING THE PERIOD
906.566
-
-
-
-102.236
-200.221
804.330
-200.221
-13.355
-51.662
Reconciliation
1H 2011
1H2010
Figures in thousands o f euro
Cash and cash equivalents at beginning of period
Total net cash flows generated/absorbed during the period
Cash and cash equivalents: effect of changes in exchange rates
Cash and cash equivalents at the end of the period
164
609.040
683.845
-13.355
-51.662
-
-
595.685
632.183
NOTES
Accounting policies
Basis of preparation
The interim financial report of the Unione di Banche Italiane Group has been prepared in
compliance with Art. 154 ter of Legislative Decree No. 58/1998 to implement the
“Transparency Directive”1 and in application of IAS 34 “Interim financial reporting”.
This financial report, which relates to the companies included in the consolidation 2 , is
composed of the condensed interim consolidated financial statements (containing the
statement of financial position, income statement, statement of comprehensive income,
statement of changes in equity, statement of cash flows and the notes) and the consolidated
interim management report.
In view of the option allowed by the standard just mentioned, the condensed interim
consolidated financial statements as at 30th June 2011 have been presented in condensed
form and therefore they do not provide all the full information required for annual financial
statements.
The condensed interim consolidated financial statements contain a statement by the Senior
Officer Responsible pursuant to Art. 154 bis of Legislative Decree No. 58/1998 and they have
been reviewed by the independent auditors KPMG SpA.
The consolidated interim financial report was approved by the Management Board on 29th
August 2011, which authorised disclosure to the public of the essential details.
***
The interim financial report was prepared on the basis of IFRS3 and of measurement criteria,
adopted on the basis of a going concern assumption and in compliance with the principles of
accrual accounting, the relevance of the information and the predominance of substance over
form. These criteria are the same as those applied for the 2010 Annual Report which may be
consulted in full, except for matters which may detailed in the following sub-section “Other
aspects”.
Where it is impossible to measure items in the financial statements with precision, the
application of those policies involves the use of estimates and assumptions which may even
have a significant effect on the amounts recognised in the statement of financial position and
in the income statement.
The use of reasonable estimates forms an essential part of the preparation of financial
statements and we have listed here those items in the financial statements in which the use of
estimates and assumptions is most significant:
− measurement of loans;
− measurement of financial assets not listed in active markets;
− measurement of intangible assets and equity investments;
− quantification of provisions for risks and charges;
− quantification of deferred taxes;
− definition of the depreciation and amortisation charges for property, equipment and
investment property and intangible assets with finite useful lives.
1
2
3
Ref. EC Dir. No. 2004/109/EC, Art. 6. That directive, implemented in national law by Legislative Decree No. 195/2007, amended
Legislative Decree No. 58/1998, known as the Consolidated Finance Act.
Details are given in the section “Consolidation scope”, in which changes that occurred during the first half of 2011 are also given.
Those standards issued by the International Accounting Standards Board and the relative interpretations issued by the International
Financial Reporting Interpretation Committee, both endorsed by the European Commission, are applied on the basis of events
occurring that are disciplined by them from the date on which their application becomes compulsory, unless specified otherwise.
165
An adjustment may be made to an estimate following a change in the circumstances on which
it was based or if new information is acquired or yet again on the basis of greater experience. A
change in an estimate is applied prospectively and it therefore generates an impact on the
income statement in the year in which it is made and, if it is the case, also in future years.
No changes were made in the first half of 2011 to the criteria previously employed for
estimates in the financial statements as at 31st December 2010.
These condensed interim consolidated financial statements as at and for the period ended 30th
June 2011 have been clearly stated and give a true and fair view of the capital and financial
position, the result for the period, the changes in equity and the cash flows generated.
As with the preparation of the 2010 Annual Report, account was also taken in this interim
financial report of the Bank of Italy/Consob/Isvap document No. 4 of 3rd March 2010 which,
following on from the previous joint document No. 2 of 6th February 2009 issued by those
authorities, recommends that financial reports provide a clear, full and up-to-date view of the
risks and uncertainties to which the bank is exposed, the capital available to meet those risks
and its effective ability to generate income.
The following sub-section “Other aspects” may be consulted for information concerning
impairment losses on goodwill, available-for-sale equity instruments and financial instruments
designated at fair value.
***
The information contained in this report is expressed, unless otherwise indicated, in euro as
the accounting currency.
The mandatory financial statements and the notes to them are presented in thousands of
euro4.
The mandatory financial statements comply with those defined in Bank of Italy Circular No.
262/20055 and in addition to the financial statements as at 30th June 2011 they provide the
following comparative information:
- statement of financial position: 31st December 2010 and 30th June 2010;
- income statement: periods ended 30th June 2010 and 31st December 2010;
- statement of comprehensive income: periods ended 30th June 2010 and 31st December
2010;
- Statement of changes in equity: to 30th June 2010;
- Statement of cash flows: to 30th June 2010.
Specific sections in the consolidated management report may be consulted for the minimum
content required under paragraphs 15B and 16A of IAS 34 and that required by the Consob
(Italian securities market authority): litigation settlements, related party transactions,
significant events after the reporting date, changes in the scope of consolidation, significant
non-recurring transactions and atypical and/or unusual transactions.
Finally, this financial report also includes a section on the Parent, even if it is not required by
Art. 154 and by IAS 34, containing the separate condensed mandatory interim financial
statements as at and for the period ended 30th June 2011, the reclassified financial
statements and the relative notes and comments. Those financial statements were not
reviewed.
Other aspects
Realignment of values for tax purposes relating to goodwill and other intangible assets
Paragraphs 12 to 15 of article 23 of Decree Law No. 98 of 6th July 2011, converted into Law
No. 111 of 15th July 2011, containing measures for financial stabilisation, provides the
possibility to realign values for statutory accounting and for tax purposes relating to goodwill
4 The relative rounding of the figures has been performed on the basis of Bank of Italy instructions.
5 The statement of financial position lists assets and liabilities in order of decreasing liquidity and the income statement recognises
expenses according to their nature.
166
and other intangible assets. More specifically the legislation in question allows, in accordance
with the principles of Law No. 2 of 28th January 2009, the recognition for tax purposes of
higher values attributed to controlling interests acquired through extraordinary transactions,
consisting of the value of goodwill, business brands and other intangible assets recognised
autonomously in the consolidated financial statements.
That realignment is performed by the payment of a substitute tax of 16% and it allows the
amount in question to be deducted (but not in the statutory accounts) for corporate income
tax (IRES) and local production tax (IRAP) purposes at constant rates over ten years.
With specific regard to the tax relief on the amounts relating to prior year extraordinary
transactions, and that is those performed before the law in question entered into force, a oneoff substitute tax may be paid by 30th November 2011, while the deduction of the amortisation
(for tax purposes only) runs from 2013.
In view of the above, UBI Banca has decided to take advantage of the option in question with
regard to the following:
goodwill recognised in the consolidated financial statements as at 31st December 2010,
arising from:
- the purchase price allocation performed following the merger between the former BPU
Banca Group and the former Banca Lombarda e Piemontese Group, net of the 569
million euro already subject to tax relief in 2009 – consisting of goodwill recognised in
the separate statement of financial position of UBI Banca – for a total amount subject to
tax relief of 2.361,7 million euro;
- the acquisition of IW Bank, with an amount subject to tax relief of 54,6 million euro;
other intangible assets, recognised in the consolidated statement of financial position as at
31st December 2010, arising from the purchase price allocation following the merger
between the former BPU Group and the former Banca Lombarda e Piemontese Group. In
detail, these intangible assets consist of the following:
- core deposits, with an amount subject to tax relief of 312 million euro;
- assets under management, with an amount subject to tax relief of 165 million euro;
- assets under custody, with an amount subject to tax relief of 54 million euro;
- brands, with an amount subject to tax relief of 338 million euro.
With regard to the accounting treatment, reference was made to the IAS 12 provisions and to
the Italian Accountants Association (Organismo Italiano di Contabilità) document, “Application
No. 1 - Hypothesis for the accounting treatment for the substitute tax for tax relief on goodwill
pursuant to paragraph 10, Art. 15 of Decree Law No. 185 of 29th November 2008”, as occurred
in 2008. This document allows the simultaneous recognition of the substitute tax and the
relative deferred tax assets in the income statement.
Following the resolution, passed by the Management Board on 25th August 2011 and
confirmed by the Supervisory Board on 29th August 2011, to take advantage of the options
provided by the legislation in question, in this interim financial report the amount relating to
the substitute tax (16%) has been charged to the income statement and deferred tax assets
based on the nominal corporate income tax rate (27,5%) have been recognised6.
With regard to deferred local production tax (IRAP) assets, the decision to take advantage of
the tax relief resulted in a decrease in the tax base of UBI Banca of 328.526 thousand euro,
with a consequent absence of taxable income for IRAP purposes in the future. Consequently
deferred tax assets for IRAP purposes were not recognised and those that had been recognised
previously were released.
In the consolidated financial statements presented in this interim financial report: higher
current taxation was recognised in the income statement amounting to 525.642 thousand
euro, due to the substitute tax; the recognition of the IRAP deferred tax assets already
mentioned amounting to 24.964 thousand euro was reversed; and lower taxation was
recognised with a new deferred tax liability for IRES of 903.447 thousand euro. The net
positive impact amounted to 352.841 thousand euro.
6
In this regard, in compliance with IAS 12 tax assets are recognised on the assumption that it is probable that sufficient taxable profit
will be available against which the deductible temporary difference can be utilised.
167
Changes to rates for local production tax (IRAP)
Paragraph 5 of article 23 of the aforementioned Decree Law No. 98 of 6th July 2011 raises the
rate for IRAP by 0,75% for banks and financial companies.
The rate therefore rises from the current level of 3,9% (4,82% for banks which operate in
regions which levy an additional tax) to 4,65% (5,57% for banks which operate in regions
which levy an additional tax).
The change is already effective for the 2011 tax year and therefore has an immediate impact
on current taxes and deferred tax liabilities already recognised in the financial statements as
at and for the period ended 31st December 2010.
In compliance with IAS 12, this change has already been incorporated in this interim financial
report and required the recognition at consolidated level of increased current taxation of 8.150
thousand euro and an adjustment to the deferred tax liabilities recognised as at 31st December
2010 amounting to 6.267 thousand euro and 5.342 thousand euro net of non controlling
interests.
The amount relating to the adjustment to the deferred tax liabilities recognised in the
statement of financial position as at 31st December 2010, which relates mainly to deferred tax
liabilities for intangible assets arising from the purchase price allocation, was considered non
recurring for the purposes of the normalised income statement, while the recognition of higher
current taxes was not subject to normalisation.
Impairment testing of goodwill7
The provisions of IAS 36 require goodwill, and therefore the cash generating units (CGUs) or
groups of CGUs to which it was allocated, to be tested for impairment at least annually and
also certain qualitative and quantitative indicators of impairment to be monitored
continuously to see whether the necessary conditions exist for testing goodwill for impairment
more frequently.
In assessing whether impairment has occurred, paragraph 12 of IAS 36 requires the reporting
entity that prepares the financial statements to consider both external and internal sources of
information.
In this respect, while careful analysis of internal sources of information found that these were
in line with forecasts, with regard to external sources of information (i.e. trigger events
originating in the market) a significant reduction in the stock market capitalisation with
respect to the book value was found in the first half of 2011 and impairment tests were
performed as a consequence (first level – to test single CGUs which generally coincide with the
legal entities of the UBI Banca Group – and second level – to test at the level of the
consolidated financial statements as a whole).
Furthermore, the importance of impairment tests was emphasised by the supervisory
authorities in the joint document already mentioned. This underlined the need to pay
maximum attention to full compliance with IAS 36 in the preparation of financial statements
with regard to the following:
- the impairment testing procedures employed;
- the information provided in the notes to the financial statements.
The impairment test, for which the procedure was approved by the Management Board on 26th
July 2011, was performed with support from an external appraiser of high standing.
Using the same procedures employed for the preparation of the annual financial statements,
the measurement used to calculate the recoverable amount of the business units to which
goodwill was allocated was that of their value in use or the fair value net of costs to sell if the
value in use was lower than the carrying amount. The value in use was estimated on the basis
of the financial criterion and the book value of the CGUs was determined on the basis of the
criterion used to estimate the recoverable value. The estimate of the value in use of the single
7
The information reported relates to the more significant CGUs.
168
CGUs was performed by means of cash flow projections for the period 2011-2015, based on
the 2011-2015 Group Business Plan approved by the Management Board on 13th May 2011
and by the Supervisory Board of UBI Banca on 16th May 2011 when it was disclosed to the
public.
In this respect, it must be considered that when the consolidated financial statements of the
UBI Banca Group as at and for the year ended 31st December 2010 were prepared, because
the new Business Plan just mentioned had not yet been drawn up, the impairment test was
performed on the basis of expected trends for 2011 and the relative budgets, and for the
subsequent years, 2012 – 2015, on the basis of the forecasts contained in the “Guidelines”.
Furthermore:
- for the purpose of quantifying possible impairment losses, the difference between the
carrying amount and the higher of the value in use and the fair value net of costs to sell is
calculated;
- the rates used to discount cash flows were higher than those used in impairment tests
performed as at 31st December 2010 due to an increase in the cost of equity: there was a
slight increase in the “beta” coefficient. The cost of equity used to estimate the terminal
value was 9,50% for the network banks (8,82% as at 31st December 2010), 9,65% for assets
under management (9,77% as at 31st December 2010) and within a range of 8,37%-9,50%
for the product companies (8,10%-9,25% as at 31st December 2010);
- the growth rate of cash flows in the terminal amount was held constant and was the same
as that used for the impairment test as at 31st December 2010 except for UBI Leasing, for
which a significant reduction was recorded;
- the estimate of fair value was performed according to the comparable transactions criterion,
which reconstructs the coefficient of goodwill on funding (direct and indirect) recognised in
transactions relating to branches on the basis of:
a. location of the branches (depending on whether they are located in regions with a high
per capita GDP);
b. the level of the Euribor rate at the time when the branches were acquired.
That procedure included a sensitivity analysis, which did not find any significant differences
compared to the information reported for the position as at 31st December 2010.
In consideration of all the above and also considering that the recoverable amount was always
the same as the value in use, the total amount recognised for goodwill in the consolidated
financial statements after the impairment test was performed was adjusted downwards by
126,3 million euro. The CGU UBI Leasing accounted for 74,1 million euro of this impairment
loss, the CGU Centrobanca for 34,7 million euro and the CGU B@nca 24-78 for 17,5 million
euro.
In detail:
- the impairment loss for UBI Leasing is the result of an estimated lower growth rate (g) in
the terminal value compared to that hypothesised as at 31st December 2010, due to the
restructuring of its agent distribution network;
- the impairment loss for Centrobanca is the result of an increase in the discount rate
described above, because the recoverable amount of the subsidiary was already close to its
carrying amount as at 31st December 2010;
- the impairment loss for B@nca 24-7 is the result of a valuation performed using the same
method as that of the impairment test performed as at 31st December 2010.
The impairment test resulted in recognition of a total impairment loss of approximately 165,5
million euro in the separate financial statements of UBI Banca.
More specifically, this impairment loss was attributable to the investment in UBI Leasing
accounting for 87,9 million euro and to Banca 24-7 for 69,2 million euro (55 million euro
relating to goodwill and 14,2 million euro to the value of the investment) and to goodwill of
Centrobanca accounting for 8,4 million euro.
8
As already reported, as at 30th June 2011 that CGU, which already included the company Silf Spa, also included Prestitalia Spa.
This is consistent with the information reported in the Business Plan.
169
Finally, with regard to the second level tests mentioned above, a comparison of the total
recoverable amount for UBI Banca and consolidated equity attributable to the shareholders of
the Parent did not result in further impairment losses.
Impairment losses on other intangible assets
As already reported in the section on significant events in the first half of 2011, distribution
agreements with BY YOU were renegotiated during the period. The renegotiation resulted in
changes in the cash flows that will be generated by that distribution channel and, on the basis
of that, an impairment loss on intangible assets relating to the BY YOU distribution channel of
19,5 million euro was recognised in the separate UBI Banca financial statements.
Impairment of available-for-sale equity instruments
As already reported in the commentary on the consolidated income statement and on
consolidated financial assets, in June 2011 the UBI Banca Group participated in the increase
in the share capital performed by Intesa Sanpaolo, which involved the assignment of two new
shares for every seven old shares already held at a subscription price of 1,369 euro for each
new share. The operation involved a total payout of 56,7 million euro and resulted in the
acquisition of 41.435.116 new shares, so that the Intesa Sanpaolo shares currently held,
which are recognised as “available-for-sale financial assets”, now number 186.458.028
(145.022.912 shares as at 31st December 2010). With specific reference to the value of the
share in question, as already reported, impairment losses have been recognised on it in the
past in compliance with Group policy on impairment and with IAS 39. As at 30th June 2011,
the price of the share resulted in further impairment losses amounting to 15,9 million euro
recognised in the income statement on the basis of that accounting standard.
Similarly impairment losses totalling 3,4 million euro were recognised in the income statement
relating to investments in O.I.C.R. (collective investment instruments) held by UBI Banca.
To complete the information, because the UBI Banca Group applies IAS 34 “Interim financial
reporting” to its interim reports, with the consequent identification of an “interim period”, the
impairment losses recognised as at 30th June 2010 were recognised on a historical basis and
therefore any subsequent reversals of those impairment losses on available-for-sale equity
instruments will be recognised in a separate fair value reserve in equity.
Increase in the share capital of UBI Banca – recognition of the expenses incurred
The operation to increase the share capital, reported in detail in the section on significant
events occurring in the first half of 2011, involved expenses directly attributable to it totalling
22,4 million euro. In compliance with IAS 32, these expenses were recognised as a direct
reduction in equity, net of tax, amounting to 16,2 million euro.
170
Information on the fair value of financial instruments
Transfers between portfolios
During the period in question the UBI Banca Group performed no reclassifications of financial
asset portfolios as a result of changes in the purpose or use of those assets.
Fair value hierarchy
No changes occurred during the first half of 2011 in the criteria employed for calculating fair
values used for the measurement of financial instruments with respect to those employed for
the preparation of the financial statements as at and for the year ended 31st December 2010,
which may be consulted for full details.
Accounting portfolios: distribution by fair value level
30.6.2011
Financial assets/liabilities measured at fair value
Level 1
31.12.2010
Level 2
Level 3
Level 1
Level 2
Level 3
1. Financial assets held for trading
521.667
483.904
88.403
2.038.701
584.841
2. Financial assets at fair value
440.748
-
27.290
116.208
-
31.078
8.826.354
1.314.085
83.171
8.874.363
1.296.198
82.058
3. Available-for-sale financial assets
4. Hedging derivatives
Total
1. Financial liabilities held for trading
109.209
-
413.389
-
-
591.127
-
9.788.769
2.211.378
198.864
11.029.272
2.472.166
222.345
-
423.441
420.818
-
410.453
543.970
2. Financial liabilities at fair value
-
-
-
-
-
-
3. Hedging derivatives
-
953.439
-
-
1.228.056
-
423.441
1.374.257
-
410.453
1.772.026
-
Total
Changes in financial assets at fair value (level 3)
FINANCIAL ASSETS
measured at fair
val ue
hel d for trading
1. Opening bal ances
2. Increases
2.1. P urchases
avail abl e-for-sal e
hedges
109.209
31.078
82.058
-
3.370
25
2.498
1.203
2.133
12
-
2.830
984
1.130
-
2.830
984
1.130
-
18
-
2.2. P rofits recognised in:
2.2.1. Income statement
- of w hich gains
2.2.2. Equity
X
X
2.3. T ransfers from other levels
2.4. Other increases
3. Decreases
3.1.Sales
3.2. Redemptions
-
-
-
-
515
311
973
-
(24.176)
(11.545)
(6.286)
-
(1.020)
(70)
-
(178)
(4.100)
-
-
(11.342)
(716)
(678)
-
(11.342)
(716)
(678)
-
(207)
-
3.3. Losses recognised in:
3.3.1. Income statement
- of w hich losses
3.3.2. Equity
X
X
3.4. T ransfers to other levels
3.5. Other decreases
4. Cl osing bal ances
-
-
-
-
(1.111)
(1.470)
(65)
-
88.403
27.290
83.171
-
With regard to the financial assets and liabilities shown in the table, no transfers were
performed between levels within the hierarchy with respect to the position as at 31st
December 2010.
Consolidation scope
Companies in which no equity investment is held, but for which shares have been received as
pledges are excluded from the consolidation scope, in consideration of the purpose of
possession, which is to secure the loan granted and not to exercise control and determine
financial and operating policies in order to obtain the economic benefits deriving from them.
171
The statement of financial position, income statement and statement of cash flows of
consolidated companies which operate with a reference currency other than the euro were
translated at the exchange rate ruling at the end of the quarter. All the exchange rate
differences resulting from the translation are recognised in a specific reserve in equity. If an
investment is disposed of, this reserve is eliminated with a simultaneous debit or credit to the
income statement at the time of disposal.
No situations existed at the reporting date of this condensed interim consolidated report, other
than those which may already been reported in the section “The consolidation scope”,
contained in the interim consolidated management report, in which:
- in the presence of the direct or indirect ownership of shares equal to or greater than half
the actual or potential voting rights, it is considered that control is not exercised;
- in the presence of the direct or indirect ownership of shares equal to or greater than
20%, it is considered that significant influence is not exercised (except for equity
investments held for merchant banking activities classified within item 20 “Financial
assets held for trading”);
- in the presence of the direct or indirect ownership of less than 20% of the shares, it is
considered that significant influence is exercised.
No significant restrictions existed on that same date on the ability of subsidiaries and
associates to transfer funds to the Parent in payment of dividends or repayment of loans or
any other type of debt.
The interim reporting dates of all the companies included in the consolidation were the same
as the reporting date of the interim condensed financial statements of the Parent.
New IFRS
In addition to what has already been reported in the 2010 Annual Report and in the interim
report for the first quarter of 2011, which may be consulted for full details 9 , no further
regulations10 were issued by the European Commission in the first half of 2011 and therefore
no new accounting standards have been endorsed on which to report. Nevertheless, for full
information a brief summary is given below of the main developments that have occurred
concerning international financial reporting standards.
On 12th May 2011 the IASB issued the following new standards11:
IFRS 10 "Consolidated Financial Statements": the standard defines control more precisely as
the determining factor for the consolidation of an entity by a parent and it provides a guide
to application to help entities to identify it;
IFRS 11 "Joint Arrangements": the standard relates to the recognition of agreements
between companies and is designed to replace the current IAS 3112 “Interests in companies
subject to joint control”. It makes a distinction between and a classification of different types
of agreement based on an analysis of the rights and obligations deriving from it, instead of
on the legal basis;
IFRS 12 "Disclosure of interests in other entities": the standard extends current disclosure
obligations with regard to all forms of interest in other entities and is designed to group
together disclosure requirements relating to the newly issued IFRS 10 and 11;
IFRS 13 "fair value Measurement": this new standard is designed to provide a single, precise
definition of fair value independently of the item which must be measured. The standard
9
10
11
12
Compulsory accounting standards for which application became compulsory from 1st January 2011 did not have any impact on the
financial statements except for some marginal effects on the accompanying explanatory notes relating to IAS 24 “Related party
disclosures” and IAS 34 “Interim financial reporting”.
The EU regulations, with which the applicable IFRS and the relative interpretations are introduced, are the same as those already
published in the 2010 Annual Report which may be consulted for full details.
Since the process of endorsement for these standards by European commission has not yet been completed with the issue of the
relative EU regulations, they are not yet applicable. Once the endorsement process is complete, the application of these standards
will be compulsory from 1/1/2013.
Some of the provisions of the current IAS 31 are incorporated in IAS 28 “Investments in associates and joint ventures”, with the
consequent elimination of the option to account for joint ventures using the proportionate method and the obligation to use the
equity method.
172
does not extend the use of fair value with respect to the provisions of other IFRS, but
provides a practical guide for its measurement.
We report for information that on 16th June the IASB issued the following:
an amendment to IAS 113 “Presentation of Financial Statements” which makes changes to
the statement of comprehensive income (known as other comprehensive income) in order to
separate items which will be transferred to the income statement in future from those that
will never be transferred; and
an amendment to IAS 1914 “Employee benefits”. The main changes concern the elimination
of the option to use the “corridor method” to account for actuarial gains and losses, a
change to the definition of short term benefits, the introduction of additional disclosures to
be provided in explanatory notes concerning defined benefit plans and lastly a new
approach to the presentation and recognition of changes in defined benefit plan assets and
liabilities in the income statement and in the statement of comprehensive income (i.e. other
comprehensive income).
Project to amend IAS 39
While the process of the full revision of IAS 39 is still in progress and should be concluded
presumably by the end of 2012, at present no document issued by the IASB has been subject
to endorsement by the European Commission and therefore the corresponding section of the
2010 Annual Report may be consulted for full information on the state of revision of that
standard.
As concerns the compulsory adoption of the new accounting rules, scheduled at present for 1st
January 2013, it must be considered that the exposure draft “Mandatory Effective date of IFRS
9” issued by the IASB on 4th August 2011 proposes putting back the date in question to 1st
January 2015 because the projects on impairment and hedge accounting (stages two and
three respectively of the full project to revise IAS 39) and also that on insurance contracts are
still in progress.
With regard to the project on impairment losses in particular (stage 2), the IASB and the FASB
have set up a special task force in order to find a common solution. In order to achieve this, it
was decided to develop a new model based on the comments received to date from
stakeholders. This will produce a variant of the model proposed in the Supplement Document
of 31st January 2011 and will presumably lead to the publication of a new exposure draft
during the third quarter.
13
14
Once endorsed by the European Commission with the issue of the relative regulation, application of the amended version will be
compulsory from 1/7/2012.
Once endorsed by the European Commission with the issue of the relative regulation, application of the amended version will be
compulsory from 1/1/2013.
173
Explanatory tables
This section contains explanatory tables relating to the consolidated statement of financial
position, statement of cash flow and income statement. The main changes in the statement of
financial position and cash flow position that occurred in the reporting period (first six months
of 2011) and the operating performance for the period January-June 2011 compared to the
same period of 2010 are commented in the interim management report for the first half of
2011.
NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Composition of direct funding from customers (liability items 20 and 30)
30.6.2011
31.12.2010
30.6.2010
Figures in thousands of euro
Current accounts and deposits
Term deposits
Financing
- repurchase agreements
- other
Amounts due for commitments to repurchase own equity instruments
Other payables
Total amounts due to customers
Bonds
Other certificates
44.697.229
45.209.037
44.276.056
1.104.611
9.266.869
1.341.501
11.152.853
1.201.679
12.239.177
8.891.267
11.011.766
12.131.020
375.602
141.087
108.157
1.131.028
962.766
817.403
56.199.737
45.167.471
4.796.669
58.666.157
42.880.256
5.213.632
58.534.315
40.000.582
4.827.537
Total securities issued
49.964.140
48.093.888
44.828.119
TOTAL DIRECT FUNDING
106.163.877
106.760.045
103.362.434
Composition of loans to customers (asse t item 70)
30.6.2011
Figures in thousands of euro
Perform ing
31.12.2010
Deteriorated
Perform ing
30.6.2010
Deteriorated
Perform ing
Deteriorated
1. Current account overdrafts
13.256.605
1.119.458
12.656.534
1.067.391
13.646.439
998.509
2. Reverse repurchase agreem ents
3. Long term loans
4. Credit cards, personal loans and salary backed loans
301.106
52.673.824
5.943.859
2.865.360
183.280
323.597
51.431.308
6.200.764
2.512.658
144.009
206.469
49.812.653
6.302.256
2.219.759
129.240
5. Finance leases
6. Factoring
7. Other transactions
8. Debt instruments:
8.622.972
2.816.491
13.319.017
38.889
840.756
31.236
760.614
1.000
8.821.521
2.971.751
14.097.107
51.118
769.279
16.946
749.846
1.000
8.913.821
2.454.661
13.912.489
102.029
695.177
22.662
740.582
1.000
25.456
13.433
1.000
3.409
47.709
1.000
30.055
71.974
1.000
Total (carrying am ount)
96.972.763
5.801.704
96.553.700
5.261.129
95.350.817
4.806.929
Total (fair value)
97.506.306
5.801.522
98.756.310
5.260.108
97.541.407
4.831.938
8.1 Structured instrum ents
8.2 Other debt instruments
174
Financial assets held for trading: composition (asset item 20)
30.6.2011
L1
Figures in thousands of euro
A. On-statement of financial
position assets
1. Debt instruments
L2
31.12.2010
L3
L1
Total
L2
30.6.2010
L3
Total
L1
L2
L3
Total
500.664
3.564
-
504.228
1.964.319
11.013
-
1.975.332
1.632.023
95.810
15
1.1 Structured instruments
10
264
-
274
8
2.792
-
2.800
10
8.956
-
8.966
1.2 Other debt instruments
500.654
3.300
-
503.954
1.964.311
8.221
-
1.972.532
1.632.013
86.854
15
1.718.882
19.948
8
86.905
106.861
72.856
2
104.082
176.940
55.887
85.225
19.077
160.189
520
-
153
72.948
1.498
-
2.171
72.948
512
-
54
64.171
1.601
-
2.167
64.171
563
-
5
16.060
1.783
-
2.351
16.060
16.060
2. Equity instruments
3. Units in O.I.C.R.
(co llective investment instruments)
4. Financing
1.727.848
4.1 Reverse repurchase agreements
-
-
-
-
-
-
-
-
-
16.060
-
4.2 Other
-
72.948
-
72.948
-
64.171
-
64.171
-
-
-
-
521.132
76.673
88.403
686.208
2.037.687
75.240
105.683
2.218.610
1.688.473
197.100
20.875
1.906.448
535
407.231
-
407.766
1.014
509.601
3.526
514.141
2.701
730.836
345
733.882
726.057
Total A
B. Derivative instruments
1. Financial derivatives
1.1 for trading
535
406.367
-
406.902
1.014
504.659
3.526
509.199
2.701
723.011
345
1.2 connected w ith fair value options
-
-
-
-
-
-
-
-
-
-
-
-
1.3 other
-
864
864
-
4.942
-
4.942
-
7.825
-
7.825
2. Credit derivatives
-
-
-
-
-
-
-
-
-
-
-
-
2.1 for trading
-
-
-
-
-
-
-
-
-
-
-
-
2.1 connected w ith fair value options
-
-
-
-
-
-
-
-
-
-
-
-
2.3 other
-
-
-
-
-
-
-
-
-
-
-
-
535
407.231
-
407.766
1.014
509.601
3.526
514.141
2.701
730.836
345
733.882
521.667
483.904
88.403
1.093.974
2.038.701
584.841
109.209
2.732.751
1.691.174
927.936
21.220
2.640.330
Total B
TOTAL (A+B)
Available-for-sale financial assets: composition (asset item 40)
30.6.2011
Figures in thousands of euro
1. Debt instruments
L1
L2
8.437.669
1.156.371
31.12.2010
L3
10.191
Total
L1
L2
9.604.231
8.509.464
1.115.988
30.6.2010
L3
10.255
Total
L1
L2
9.635.707
10.179.035
1.652.535
L3
Total
11.436 11.843.006
1.1 Structured instruments
175.627
-
-
175.627
177.191
-
-
177.191
128.675
36.087
-
164.762
1.2 Other debt instruments
8.262.042
1.156.371
10.191
9.428.604
8.332.273
1.115.988
10.255
9.458.516
10.050.360
1.616.448
11.436
11.678.244
373.105
70.657
72.980
516.742
346.586
73.614
70.357
490.557
363.498
77.222
85.877
526.597
373.105
70.179
47.277
490.561
346.586
73.588
46.008
466.182
363.498
77.196
54.217
494.911
-
478
25.703
26.181
-
26
24.349
24.375
-
26
31.660
31.686
15.580
-
87.057
-
-
102.637
-
18.313
-
106.596
-
1.446
124.909
1.446
18.167
-
111.836
-
260
1.446
130.263
1.446
8.826.354
1.314.085
83.171 10.223.610
8.874.363
1.296.198
82.058 10.252.619
10.560.700
1.841.593
L1
L2
2. Equity instruments
2.1 At fair value
2.2 At cost
3. Units in O.I.C.R.
(collective investment instruments).
4. Financing
TOTAL
99.019 12.501.312
Financial assets at fair value: composition (asset item 30)
30.6.2011
Figures in thousands of euro
1. Debt instruments
L1
L2
31.12.2010
L3
L1
Total
L2
30.6.2010
L3
Total
L3
Total
-
-
-
-
-
-
-
-
-
-
-
1.1 Structured instruments
-
-
-
-
-
-
-
-
-
-
-
-
1.2 Other debt instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
440.748
-
27.290
468.038
116.208
-
31.078
147.286
107.866
-
47.277
155.143
-
-
-
-
-
-
-
-
-
-
-
-
4.1 Structured
-
-
-
-
-
-
-
-
-
-
-
-
4.2 Other
-
-
-
-
-
-
-
-
-
-
-
-
2. Equity instruments
-
3. Units in O.I.C.R.
(co llective investment instruments).
4. Financing
TOTAL
440.748
-
27.290
468.038
116.208
-
31.078
147.286
107.866
-
47.277
155.143
Cost
440.748
-
27.290
468.038
116.208
-
31.078
147.286
107.866
-
47.277
155.143
175
NOTES TO THE CONSOLIDATED INCOME STATEMENT
Interest and similar income: composition (ite m 10)
Debt
instruments
Figures in thousands of euro
1. Financial assets held for trading
2. Financial assets at fair value
3. Available-for-sale financial assets
3. Held-to-maturity investments
5. Loans to banks
6. Loans to customers
7. Hedging derivatives
8. Other assets
14.060
185.416
1.793
X
X
201.269
Total
Other
transactions
Financing
772
22.079
1.691.301
X
X
1.714.152
30
1.256
620
1.906
1H 2011
1H 2010
14.832
185.416
22.109
1.694.350
620
1.917.327
12.607
128.345
12.805
1.529.412
222
1.683.391
Interest and similar expense: composition (item 20)
Borrowings
Other
transactions
Securities
Figures in thousands of euro
1. Due to central banks
2. Due to banks
3. Due to customers
4. Securities issued
5. Financial liabilities held for trading
6. Financial liabilities at fair value
7. Other liabilities and provisions
8. Hedging derivatives
(3.103)
(28.111)
(170.995)
X
(6.728)
X
X
(208.937)
Total
X
(635.192)
X
X
(635.192)
(24)
(3.106)
(294)
(27.591)
(31.015)
Net interest income
Commission income: composition (item 40)
a) guarantees granted
c) management, trading and advisory services
1. trading in financial instruments
2. foreign exchange trading
3. portfolio management
1H 2010
21.948
367.988
21.285
5.894
128.408
3.1. individual
37.133
38.510
3.1. ow n
3.2. collective
97.682
89.898
3.2. on behalf of third parties
6.768
50.899
20.176
1.940
7.937
7.699
75.809
24.176
3.380
1.940
3.278
8.1 on investments
8.2 on financial structure
9. distribution of third party services
9.1. portfolio management
9.1.1. individual
9.2. insurance products
9.3. other products
d) collection and payment services
f) services for factoring transactions
-
102
80.174
26
93.400
39
26
39
61.167
18.981
75.329
13.284
66.684
26.677
71.108
12.529
i) current account administration
102.623
102.519
j) other services
135.067
129.643
671.232
705.735
Total
(3.103)
(28.135)
(174.101)
(635.192)
(6.728)
(294)
(27.591)
(875.144)
(2.788)
(7.785)
(86.656)
(519.184)
(4.708)
(410)
(8.457)
(629.988)
1.042.183
1.053.403
Figures in thousands of euro
25.358
319.571
18.767
6.032
134.815
4. custody and administration of securities
5. depository banking
6. placement of securities
7. receipt and transmission of orders
8. advisory activities
1H 2010
Commission expense: composition (item 50)
1H 2011
Figures in thousands of euro
1H 2011
a) guarantees received
c) management and trading services:
1. trading in financial instruments
2. foreign exchange trading
3. portfolio management
1H 2011
1H 2010
(469)
(44.958)
(8.730)
(25)
(2.781)
(411)
(47.264)
(8.528)
(196)
(2.935)
(2.781)
(2.346)
-
(589)
(2.922)
(2.355)
(4.764)
(2.136)
6. financial instruments, products and services
distributed through indirect networks
d) collection and payment services
e) other services
Total
(28.145)
(21.033)
(19.262)
(85.722)
(28.705)
(30.441)
(22.691)
(100.807)
Net commission income
585.510
604.928
4. custody and administration of securities
5. placement of financial instruments
176
Net trading income (item 80)
Figures in thousands of euro
1. Financial assets held for trading
1.1 Debt instruments
1.2 Equity instruments
1.3 Units in O.I.C.R. (collective investment instruments)
1.4 Financing
1.5 Other
2. Financial liabilities held for trading
2.1 Debt instruments
2.2 Payables
2.3 Other
3. Financial assets and liabilities: exchange rate differences
4. Derivative instruments
4.1 Financial derivatives
- on deb t instruments and interest rates
- on equity instruments and share indices
- on currencies and gold
- other
4.2 Credit derivatives
Total
Gains
Profits from
trading
Losses
Losses from
trading
Net income
(loss)
1H 2011
(A)
(B)
(C)
(D)
[(A+B)-(C+D)]
29.455
7.074
2.847
45
19.489
1.667
808
859
X
431.719
431.719
408.363
596
X
22.760
462.841
96.224
17.380
3.432
4
75.408
3
3
X
1.010.937
1.010.937
1.001.033
3.963
X
5.941
1.107.164
(21.351)
(5.138)
(9.763)
(6)
(6.444)
(140)
(140)
X
(467.844)
(467.844)
(453.076)
(2.851)
X
(11.917)
(489.335)
(35.556)
(10.121)
(1.863)
(23.572)
X
(983.650)
(983.650)
(962.735)
(6.277)
X
(14.638)
(1.019.206)
1H 2010
68.772
9.195
(5.347)
43
64.881
1.530
668
862
(6.167)
(62.244)
(62.244)
(6.415)
(4.569)
(53.406)
2.146
1.891
(226.346)
(10.357)
(8.121)
440
(208.308)
1.507
1.896
(333)
(56)
13.899
154.016
154.805
(54.306)
6.743
201.862
506
(789)
(56.924)
Net hedging income (item 90)
1H 2011
Figures in thousands of euro
Net hedging income (loss)
1H 2010
(3.029)
49.649
Income (profit) from disposal/repurchase (item 100)
Profits
Net income
(loss)
1H 2011
Losses
Figures in thousands of euro
1H 2010
Financial assets
1. Loans to banks
-
-
-
1.463
1.234
10.913
(792)
(370)
442
10.543
(1.843)
3.1 Deb t instruments
1.469
(370)
1.099
9.196
3.2 Equity instruments
6.946
-
6.946
71
3.3 Units in O.I.C.R (collective investment instruments).
2.498
-
2.498
-
-
-
-
-
2. Loans to customers
3. Available-for-sale financial assets
3.4 Financing
4. Held-to-maturity investments
Total assets
9.267
-
-
-
-
12.147
(1.162)
10.985
8.887
Financial liabilities
1. Due to banks
-
-
-
-
2. Due to customers
-
-
-
-
3. Securities issued
3.221
(1.759)
1.462
(6.557)
3.221
15.368
(1.759)
(2.921)
1.462
12.447
(6.557)
2.330
Total liabilities
Total
Net profit (loss) on financial assets and liabilities at fair value (item 110)
1H 2011
Figures in thousands of euro
Net profit (loss) on financial assets and liabilities at fair value
Net income (loss) from trading, hedging and disposal/repurchase activities and from
assets/liabilities at fair value
177
1H 2010
(4.088)
(941)
7.221
(5.886)
Other administrative expenses: composition [item 180 b)]
1H 2011
Figures in thousands of euro
A. Other administrative expenses
Rent payable
Professional and advisory services
Rentals of hardware, software and other assets
Maintenance of hardware, software and other assets
Tenancy of premises
Property maintenance
Counting, transport and management of valuables
Membership fees
Information services and land registry searches
Books and periodicals
Postal
Insurance premiums
Advertising
Entertainment expenses
Telephone and data transmission expenses
Services in outsourcing
Travel expenses
Credit recovery expenses
Forms, stationery and consumables
Transport and removals
Security
Integration costs
Other expenses
B. Indirect taxes
Indirect taxes and duties
Stamp duty
Municipal property tax
Other taxes
Total
(328.743)
(36.531)
(35.849)
(19.433)
(21.596)
(27.128)
(11.087)
(7.874)
(4.896)
(6.636)
(998)
(14.347)
(23.500)
(13.844)
(916)
(28.573)
(26.208)
(11.743)
(20.029)
(6.233)
(3.463)
(4.808)
(3.051)
(103.879)
(18.799)
(64.555)
(4.423)
(16.102)
(432.622)
178
1H 2010
(356.548)
(39.630)
(44.106)
(18.737)
(20.705)
(28.127)
(11.901)
(8.059)
(5.832)
(7.047)
(1.058)
(17.338)
(24.886)
(12.252)
(798)
(39.025)
(27.066)
(11.538)
(21.075)
(5.970)
(3.312)
(5.083)
(3.003)
(104.071)
(20.310)
(64.231)
(4.583)
(14.947)
(460.619)
STATEMENT OF THE CHIEF
EXECUTIVE OFFICER AND OF THE
SENIOR OFFICER RESPONSIBLE
FOR PREPARING THE COMPANY
ACCOUNTING DOCUMENTS
180
Statement on the condensed interim financial report pursuant to article 81-ter of
Consob Regulation No. 11971 of 14th May 1999 and subsequent amendments and
additions
1. The
Officer
having
Decree
undersigned Victor Massiah, Chief Executive Officer, and Elisabetta Stegher, Senior
Responsible for preparing the company accounting documents of UBI Banca Scpa,
taken account of the provisions of paragraphs 3 and 4 of article 154 bis of Legislative
No. 58 of 24th February 1998, hereby certify to:
the adequacy in relation to the characteristics of the company and
the effective application of the administrative and accounting procedures for the
preparation of the half year condensed financial statements, during the first half of
2011
2. The model employed
The assessment of the adequacy of the administrative and accounting procedures for the
preparation of the condensed interim financial report as at and for the half year ended 30th
June 2011 was based on an internal model defined by UBI Banca SCpA, developed in
accordance with the framework drawn up by the Committee of Sponsoring Organisations of
the Treadway Commission (COSO) and with the framework Control Objectives for IT and
related technology (COBIT) which represent the generally accepted international standards for
internal control systems.
3. They also certify that:
3.1 the condensed interim financial report:
a) was prepared in compliance with the applicable international accounting standards
recognised by the European Community in accordance with the Regulation No.
1606/2002 (EC) issued by the European Parliament on 19th July 2002;
b) corresponds to the records contained in the accounting books of the company;
c) provides a true and fair view of the capital, operating and cash flow position of the
issuer and the companies included in the scope of the consolidation.
3.2 The half year management report comprises a reliable analysis of the important events
that occurred in the first six months of the year and of their impact on the half year
condensed financial statements, together with a description of the main risks and
uncertainties relating to the remaining six months of the year. The half year management
report also comprises a reliable analysis of information on significant related party
transactions.
Bergamo, 29th August 2011
Victor Massiah
Elisabetta Stegher
Chief Executive Officer
Senior Officer Responsible for preparing
the company accounting documents
(signed on the original)
(signed on the original)
181
182
INDEPENDENT AUDITORS’ REPORT
184
186
REPORT ON THE PERFORMANCE OF
THE PARENT,
UBI BANCA Scpa
IN THE FIRST HALF OF 2011
187
Reclassified financial statements,
reclassified income statement net of the
most significant non-recurring items and
reconciliation schedules
Reclassified statement of financial position
Figures in thousands of euro
30.6.2011
A
31.12.2010
B
Changes
A-B
% changes
A/B
30.6.2010
C
Changes
A/C
Changes
A-C
ASSETS
10.
Cash and cash equivalents
20.
Financial assets held for trading
160.950
195.060
-34.110
-17,5%
192.549
-31.599
1.280.423
3.143.191
-1.862.768
-59,3%
3.296.100
-2.015.677
-16,4%
30.
Financial assets at fair value
-61,2%
468.038
147.286
320.752
217,8%
155.143
312.895
201,7%
40.
Available-for-sale financial assets
8.811.089
8.698.209
112.880
60.
Loans to banks
30.222.165
28.424.384
1.797.781
1,3%
10.987.288
-2.176.199
-19,8%
6,3%
28.341.383
1.880.782
70.
Loans to customers
13.492.679
14.536.121
-1.043.442
6,6%
-7,2%
13.111.296
381.383
80.
Hedging derivatives
166.975
164.595
2,9%
2.380
1,4%
266.435
-99.460
-37,3%
100.
Equity investments
13.304.720
110.
Property, equipment and investment property
612.521
13.336.899
-32.179
-0,2%
12.190.108
1.114.612
9,1%
624.907
-12.386
-2,0%
638.765
-26.244
-4,1%
120.
Intangible assets
458.337
542.792
-84.455
-15,6%
544.335
-85.998
-15,8%
of which: goodwill
457.848
521.245
-63.397
-12,2%
521.245
-63.397
-12,2%
1.393.361
725.032
668.329
92,2%
504.929
888.432
176,0%
130.
Tax assets
140.
Non-current assets and disposal groups held for
sale
6.023
6.023
-
12.909
-6.886
-53,3%
150.
Other assets
414.092
353.102
60.990
17,3%
523.096
-109.004
-20,8%
Total assets
70.791.373
70.897.601
-106.228
-0,1%
70.764.336
27.037
-
0,0%
LIABILITIES AND EQUITY
10.
Due to banks
19.314.805
22.589.437
-3.274.632
-14,5%
25.687.388
-6.372.583
-24,8%
20.
Due to customers
10.372.290
11.422.728
-1.050.438
-9,2%
11.863.070
-1.490.780
-12,6%
30.
Securities issued
26.464.859
23.367.788
3.097.071
13,3%
19.235.050
7.229.809
37,6%
40.
Financial liabilities held for trading
1.203.666
1.542.534
-338.868
-22,0%
1.753.370
-549.704
-31,4%
60.
Hedging derivatives
456.852
599.874
-143.022
-23,8%
739.716
-282.864
-38,2%
80.
Tax liabilities
761.643
381.642
380.001
99,6%
241.148
520.495
215,8%
90.
Liabilities associated with activities under disposal
100.
Other liabilities
110.
120.
130.+160.
+170.+180.
200.
-
-
-
767.875
613.923
153.952
Post-employment benefits
37.264
38.130
Provisions for risks and charges:
b) other provisions
17.766
17.766
13.279
13.279
11.183.436
10.044.546
1.138.890
210.917
283.720
70.791.373
70.897.601
Share capital, share premiums and reserves and
fair value reserves
Profit (loss) for the period/year
Total liabilities and equity
188
-
-
-
25,1%
760.170
7.705
1,0%
-866
-2,3%
39.224
-1.960
-5,0%
4.487
4.487
33,8%
33,8%
8.609
8.609
9.157
9.157
106,4%
106,4%
11,3%
10.111.153
1.072.283
10,6%
n.s.
325.438
-114.521
-35,2%
-0,1%
70.764.336
27.037
0,0%
n.s.
-106.228
-
Reclassified quarterly statements of financial position
30.6.2011
31.3.2011
31.12.2010
30.9.2010
30.6.2010
31.3.2010
Figures in thousands of euro
ASSETS
10.
Cash and cash equivalents
20.
Financial assets held for trading
30.
Financial assets at fair value
40.
Available-for-sale financial assets
60.
70.
160.950
157.526
195.060
168.598
192.549
208.671
1.280.423
1.780.204
3.143.191
3.670.539
3.296.100
2.536.278
468.038
474.114
147.286
153.951
155.143
159.658
8.811.089
8.629.407
8.698.209
9.287.642
10.987.288
5.520.758
Loans to banks
30.222.165
29.250.552
28.424.384
28.996.844
28.341.383
26.485.858
Loans to customers
13.492.679
13.910.741
14.536.121
14.119.866
13.111.296
12.565.486
80.
Hedging derivatives
166.975
105.090
164.595
292.738
266.435
195.141
100.
Equity investments
13.304.720
13.343.834
13.336.899
13.341.941
12.190.108
12.183.761
110.
Property, equipment and investment property
612.521
619.096
624.907
623.876
638.765
646.132
120.
Intangible assets
458.337
542.021
542.792
543.563
544.335
545.107
457.848
521.245
521.245
521.245
521.245
521.245
1.393.361
702.470
725.032
512.037
504.929
634.185
of which: goodwill
130.
Tax assets
140.
Non-current assets and disposal groups held for
sale
6.023
6.023
6.023
21.212
12.909
816.037
150.
Other assets
414.092
798.544
353.102
645.780
523.096
1.035.380
Total assets
70.791.373
70.319.622
70.897.601
72.378.587
70.764.336
63.532.452
23.717.330
LIABILITIES AND EQUITY
10.
Due to banks
19.314.805
21.773.213
22.589.437
25.225.553
25.687.388
20.
Due to customers
10.372.290
10.256.804
11.422.728
11.333.615
11.863.070
5.924.704
30.
Securities issued
26.464.859
24.642.908
23.367.788
21.436.681
19.235.050
18.376.333
40.
Financial liabilities held for trading
1.203.666
1.405.215
1.542.534
1.949.848
1.753.370
1.692.114
60.
Hedging derivatives
456.852
507.931
599.874
851.469
739.716
489.261
80.
Tax liabilities
761.643
439.356
381.642
340.044
241.148
538.736
90.
Liabilities associated with activities under disposal
-
-
-
-
-
803.894
100.
Other liabilities
767.875
878.284
613.923
689.435
760.170
1.281.584
110.
Post-employment benefits
37.264
37.257
38.130
38.955
39.224
40.769
120.
Provisions for risks and charges:
17.766
14.857
13.279
12.306
8.609
8.051
17.766
14.857
13.279
12.306
8.609
8.051
11.183.436
10.423.919
10.044.546
10.110.361
10.111.153
10.572.078
210.917
-60.122
283.720
390.320
325.438
87.598
70.791.373
70.319.622
70.897.601
72.378.587
70.764.336
63.532.452
b) other provisions
130.+160.
+170.+180.
200.
Share capital, share premiums and reserves and
fair value reserves
Profit (loss) for the period/year
Total liabilities and equity
189
Reclassified income statement
1H 2011
1H 2010
Changes
A
B
A-B
Net interest expense
(88.349)
(46.540)
Dividends and similar income
193.122
297.972
7.769
9.215
(1.446)
(10.551)
93.157
(103.708)
48.640
54.871
(6.231)
Operating income
150.631
408.675
(258.044)
Personnel expense
(64.034)
(67.620)
(51.703)
(54.873)
Figures in thousands of euro
10.-20.
70.
40.-50.
Net commission income
80.+90. Net income (loss) from trading, hedging and disposal/repurchase activities and from
+100.+110. assets/liabilities at fair value
190.
150.a
Other net operating income
Other administrative expenses
Net impairment losses on property, equipment and investment property and intangible
170.+180. assets
150.b
2nd Quarter
2010
D
Changes
41.809
89,8%
(52.458)
(21.586)
30.872
143,0%
(87.435)
(104.850)
(35,2%)
191.034
203.899
(12.865)
(6,3%)
300.580
(15,7%)
3.607
4.141
(534)
(12,9%)
13.925
n.s.
117
33.968
(33.851)
(99,7%)
129.333
(11,4%)
24.855
26.257
(1.402)
(5,3%)
108.667
(63,1%)
167.155
246.679
(79.524)
(32,2%)
465.070
(3.586)
(5,3%)
(32.551)
(33.319)
(768)
(2,3%)
(130.591)
(3.170)
(5,8%)
(28.172)
(29.504)
(1.332)
(4,5%)
(116.442)
C-D
% changes
C/D
FY 2010
E
(33.644)
(15.238)
18.406
120,8%
(26.662)
(7.514)
19.148
254,8%
(29.617)
(137.731)
11.650
8,5%
(87.385)
(70.337)
17.048
24,2%
(276.650)
Net operating income
1.250
270.944
(269.694)
(99,5%)
79.770
176.342
(96.572)
(54,8%)
188.420
Net impairment losses on loans
(191)
(92)
99
107,6%
(122)
(61)
61
100,0%
(51)
(18.875)
(19.222)
(347)
(1,8%)
(17.675)
(19.148)
(1.473)
(7,7%)
(49.314)
(556)
(762)
(206)
(27,0%)
(940)
(758)
182
24,0%
(2.046)
(163.194)
59
(163.253)
n.s.
(163.022)
6
(163.028)
n.s.
67.660
(181.566)
250.927
(432.493)
n.s.
(101.989)
156.381
(258.370)
n.s.
204.669
392.483
(8.846)
401.329
n.s.
373.028
(1.898)
374.926
n.s.
(4.317)
-
83.357
(83.357)
(100,0%)
-
83.357
(83.357)
(100,0%)
83.368
(114.521)
(35,2%)
237.840
33.199
14,0%
283.720
130.b+c+d Net impairment losses on other assets and liabilities
160.
2nd Quarter
2011
C
(149.381)
Operating expenses
130.a
% changes
A/B
Net provisions for risks and charges
210.+230. Profits (losses) from disposal of equity investments and net impairment losses on
goodwill
+240.
250.
Pre-tax profit (loss) from continuing operations
260.
Taxes on income for the period/year from continuing operations
280.
Post-tax profit from discontinued operations
290.
Profit for the period/year
210.917
190
325.438
271.039
Quarterly reclassified income statements
2011
Figures in thousands of euro
10.-20.
70.
40.-50.
150.a
3rd Quarter
2nd Quarter
1st Quarter
(52.458)
(35.891)
(25.164)
(15.731)
(21.586)
(24.954)
191.034
2.088
355
2.253
203.899
94.073
3.607
4.162
2.491
2.219
4.141
5.074
Net comm iss ion income
117
(10.668)
(35.808)
71.984
33.968
59.189
24.855
23.785
26.822
26.974
26.257
28.614
Operating income
167.155
(16.524)
(31.304)
87.699
246.679
161.996
Pers onnel expens e
(32.551)
(31.483)
(28.830)
(34.141)
(33.319)
(34.301)
(28.172)
(23.531)
(33.359)
(28.210)
(29.504)
(25.369)
(26.662)
(6.982)
(7.039)
(7.340)
(7.514)
(7.724)
(87.385)
(61.996)
(69.228)
(69.691)
(70.337)
(67.394)
79.770
(78.520)
(100.532)
18.008
176.342
94.602
(122)
(69)
(11)
52
(61)
(31)
(17.675)
(1.200)
(30.695)
603
(19.148)
(74)
(940)
384
(748)
(536)
(758)
(4)
Other net operating income
Other adminis trative expens es
Net impairment los ses on property, equipment and inves tm ent property and intangible
170.+180. ass ets
Operating expenses
Net operating income (loss)
Net impairment los ses on loans
130.b+c+d Net impairment los ses on other assets and liabilities
160.
4th Quarter
Dividends and similar incom e
150.b
130.a
1st Quarter
Net interes t expense
80.+90. Net incom e (los s) from trading, hedging and disposal/repurchase activities and from
+100.+110. ass ets /liabilities at fair value
190.
2nd Quarter
2010
Net provisions for ris ks and charges
210.+230. Profits (losses) from dispos al of equity investments and net im pairment losses on
+240.
goodwill
250.
Pre-tax profit (loss) from continuing operations
260.
Taxes on incom e for the period from continuing operations
280.
Post-tax profit (loss ) from dis continued operations
290.
Profit (loss) for the period
(163.022)
(172)
(8.471)
76.072
6
53
(101.989)
(79.577)
(140.457)
94.199
156.381
94.546
373.028
19.455
33.858
(29.329)
(1.898)
(6.948)
-
-
(1)
12
83.357
-
271.039
(60.122)
(106.600)
64.882
237.840
87.598
191
Reclassified income statement net of the most significant non-recurring items
Non-recurring items
Impairment
Impairment
losses on
Impairment
losses on
equity
losses on
investments,
investment in
AFS
Intesa
goodwill and
securities
Sanpaolo
intangible
assets
1H 2011
Figures in thousands of euro
Non-recurring items
Tax realignment in
accordance with
Profit on the
Law No. 111/2011
partial
and reversal of
disposal of
deferred IRAP tax BY YOU Spa
assets/liabilities.
1H 2011
net of nonrecurring
items
A
1H 2010
Impairment
losses on
investment in
Intesa
Sanpaolo and
A2A
Contribution
of the
depository
banking
operations
Leaving
incentives
Changes
1H 2010
net of nonrecurring
items
B
A-B
%
changes
A/B
Net interest expense
(88.349)
(88.349)
(46.540)
(46.540)
41.809
89,8%
Dividends and similar income
193.122
193.122
297.972
297.972
(104.850)
(35,2%)
7.769
7.769
9.215
9.215
(1.446)
(15,7%)
(10.551)
(10.551)
93.157
93.157
(103.708)
n.s.
48.640
48.640
54.871
54.871
(6.231)
(11,4%)
Net commission income
Net income (loss) from trading, hedging and disposal/repurchase activities
and from assets/liabilities at fair value
Other net operating income
Operating income
150.631
150.631
408.675
Personnel expense
(64.034)
(64.034)
(67.620)
Other administrative expenses
Net impairment losses on property, equipment and investment property and
intangible assets
(51.703)
(51.703)
Operating expenses
-
-
(33.644)
-
-
-
19.517
-
-
-
408.675
(258.044)
(63,1%)
(65.473)
(1.439)
(2,2%)
(54.873)
(54.873)
(3.170)
(5,8%)
(14.127)
(15.238)
(15.238)
(1.111)
(7,3%)
2.147
(149.381)
-
-
19.517
-
-
(129.864)
(137.731)
-
2.147
-
(135.584)
(5.720)
(4,2%)
Net operating income
1.250
-
-
19.517
-
-
20.767
270.944
-
2.147
-
273.091
(252.324)
(92,4%)
Net impairment losses on loans
(191)
(191)
(92)
(92)
99
107,6%
(112)
(19.222)
(364)
(252)
(69,2%)
(556)
(762)
(762)
(206)
(27,0%)
Net impairment losses on other assets and liabilities
Net provisions for risks and charges
(18.875)
Profits (losses) from disposal of equity investments and net impairment
losses on goodwill
(163.194)
Pre-tax profit (loss) from continuing operations
(181.566)
Taxes on income for the period from continuing operations
Post-tax profit from discontinued operations
Profit for the period
15.350
3.413
(556)
165.456
15.350
392.483
3.413
184.973
-
(939)
(2.030)
(352.841)
(2.296)
(34)
59
(2.296)
19.874
250.927
18.858
2.147
36.673
(8.846)
(79)
(591)
-
83.357
56.547
325.438
210.917
15.350
2.474
182.943
(352.841)
192
18.858
(2.296)
18.779
1.556
-
59
(93)
n.s.
271.932
(252.058)
(92,7%)
n.s.
(9.516)
46.189
(83.357)
-
-
-
(83.357)
262.416
(205.869)
(78,5%)
Reconciliation schedule to 30th June 2011
RECLASSIFIED INCOME STATEMENT
Items
Figures in thousands of euro
10.-20.
70.
reclassifications
1H 2011
Separate
m andatory
financial
statem ent
1H 2011
depreciation for
leasehold
improvements
tax recoveries
Reclassified
financial
statem ent
Net interest expense
(88.349)
(88.349)
Dividends and similar income
193.122
193.122
7.769
7.769
Net commission income
Net loss from trading, hedging and disposal/repurchase activities and
80.+90.
+100.+110. from assets/liabilities at fair value
40.-50.
(10.551)
(7)
92
48.640
Operating income
150.546
(7)
92
150.631
150.a
Personnel expense
(64.034)
150.b
Other administrative expenses
(51.710)
170.+180.
Other net operating income
(10.551)
48.555
190.
Net impairment losses on property, equipment and investment
property and intangible assets
(33.552)
(92)
(33.644)
7
(92)
(149.381)
Net operating income
1.250
-
-
1.250
Net impairment losses on loans
(191)
(191)
(18.875)
(18.875)
(556)
(556)
130.b+c+d Net impairment losses on other assets and liabilities
160.
Net provisions for risks and charges
Losses from disposal of equity investments and net impairment
losses on goodwill
(163.194)
250.
Pre-tax loss from continuing operations
(181.566)
260.
Taxes on income for the period/year from continuing operations
280.
Post-tax profit (loss) from discontinued operations
290.
Profit for the period
210.+230.
+240.
(51.703)
(149.296)
Operating expenses
130.a
(64.034)
7
(163.194)
-
-
(181.566)
392.483
392.483
-
-
210.917
-
-
210.917
Reconciliation schedule to 30th June 2010
RECLASSIFIED INCOME STATEMENT
Items
Figures in thousands of euro
10.-20.
70.
40.-50.
80.+90.+
100.+110.
190.
reclassifications
1H 2010
Separate
m andatory
financial
statem ent
depreciation for
leasehold
improvements
tax recoveries
Reclassified
financial
statem ent
Net interest expense
(46.540)
(46.540)
Dividends and similar income
297.972
297.972
9.215
9.215
Net commission income
Net income from trading, hedging and disposal/repurchase activities
and from assets/liabilities at fair value
93.157
Other net operating income
54.797
(9)
83
(9)
83
Operating income
408.601
150.a
Personnel expense
(67.620)
150.b
Other administrative expenses
(54.882)
Net impairment losses on property, equipment and investment
170.+180. property and intangible assets
Net operating income
130.a
Net impairment losses on loans
130.b+
c+d
Net impairment losses on other assets and liabilities
93.157
Net provisions for risks and charges
408.675
9
(54.873)
(83)
(15.238)
(137.657)
9
(83)
(137.731)
270.944
-
-
270.944
(92)
(92)
(19.222)
(19.222)
(762)
(762)
210.+240.
Profits from disposal of equity investments
59
250.
Pre-tax profit from continuing operations
250.927
260,
Taxes on income for the period from continuing operations
280.
Post-tax profit from discontinued operations
290.
Profit for the period
59
-
-
(8.846)
250.927
(8.846)
83.357
325.438
193
54.871
(67.620)
(15.155)
Operating expenses
160.
1H 2010
83.357
-
-
325.438
Reconciliation schedule to 31st December 2010
RECLASSIFIED INCOME STATEMENT
FY 2010
Items
Figures in thousands of euro
10.-20.
70.
(87.435)
300.580
300.580
13.925
13.925
Other net operating income
Operating income
129.333
(221)
165
465.126
(221)
165
(130.591)
150.b
Other administrative expenses
(116.663)
Net impairment losses on property, equipment and investment
170.+180. property and intangible assets
129.333
108.723
Personnel expense
Net operating income
Net impairment losses on loans
130.b+c+d Net impairment losses on other assets and liabilities
108.667
465.070
(130.591)
221
(29.452)
Operating expenses
210.+240.
Reclassified
financial
statem ent
(87.435)
150.a
160.
depreciation for
leasehold
improvements
tax recoveries
Dividends and similar income
Net commission income
Net income from trading, hedging and disposal/repurchase activities
80.+90.
+100.+110. and from assets/liabilities at fair value
130.a
FY 2010
Net interest expense
40.-50.
190.
Separate
m andatory
financial
statem ent
reclassifications
(116.442)
(165)
(29.617)
(276.706)
221
(165)
(276.650)
188.420
-
-
188.420
(51)
(51)
(49.314)
(49.314)
Net provisions for risks and charges
(2.046)
(2.046)
Profits from the disposal of equity investments
67.660
204.669
67.660
250.
Pre-tax profit from continuing operations
260.
Taxes on income for the year from continuing operations
(4.317)
(4.317)
280.
Post-tax profit from discontinued operations
83.368
83.368
290.
Profit for the year
283.720
-
-
-
-
204.669
283.720
Notes to the financial statements
The mandatory financial statements have been prepared on the basis of Bank of Italy Circular No. 262 of 22nd
December 2005 and subsequent updates.
The following rules have been applied to the reclassified financial statements to allow a vision that is more consistent
with a management accounting style:
-
the tax recoveries recognised within item 190 of the mandatory income statement (other net operating income) were reclassified as
a reduction in indirect taxes included within other administrative expenses;
-
the item net impairment losses on property, equipment and investment property and intangible assets includes items 170 and 180
in the mandatory financial statements and the instalments relating to the depreciation of expenses incurred for leasehold
improvements classified within item 190.
The reconciliation of the items in the reclassified financial statements with the figures in the mandatory financial
statements, prepared on the basis of Bank of Italy Circular No. 262 of 22nd December 2005, has been facilitated, on
the one hand, with the insertion in the margin against each item of the corresponding number of the item in the
mandatory financial statements with which it is reconciled and, on the other hand, with the preparation of specific
reconciliation schedules.
In order to facilitate analysis of the UBI Banca’s performance and in compliance with Consob Communication No.
DEM/6064293 of 28th July 2006, a special schedule has been included in the reclassified financial statements to
show the impact on earnings only of the principal non-recurring events and items – since the relative effects on
capital and cash flow, being closely linked, are not significant – which are summarised as follows:
First half 2011:
-
impairment losses on AFS investment in Intesa Sanpaolo;
impairment losses on AFS securities;
impairment losses on equity investments, goodwill and intangible assets;
tax realignment in accordance with Decree Law No. 98/2011 converted with amendments into Law No. 111 of 15th
July 2011 and reversal of deferred IRAP tax assets/liabilities;
profit on the partial disposal of the interest held in BY YOU Spa;
First half 2010:
-
impairment losses on AFS investments in Intesa Sanpaolo and A2A;
leaving incentives (trade union agreement of 20th May 2010);
contribution of the depository banking operations.
194
Performance in the period
These comments relate to the reclassified financial statements – income statement, the quarterly income
statements and the income statement net of the principal non-recurring items – contained in the preceding
pages, on which the tables that follow are also based. The notes that follow those reclassified financial
statements may be consulted as may the reconciliation schedules for a description of the reclassification.
The income statement
UBI Banca ended the first half of 2011 with a profit of 210,9 million euro1, compared to 325,4
million euro earned in the first half of 2010.
Despite the tax relief afforded by Law No. 111 of 15th July 2011, the Parent was affected by
the weakness of the market context, shown also by the financial results, which gave rise to
further structural reductions in the value of some assets held in portfolio, which was
accompanied since the last few months of 2010 by the effect of rising interest rates.
As a result of the receipt of intragroup dividends and the realignment for tax purposes of the
value of goodwill and other intangible assets and although penalised by impairment losses for
the period, the second quarter recorded a profit of 271 million euro, an increase compared to
both the same period in 2010 (237,8 million euro), and the first quarter of 2011, which had
recorded a loss of 60,1 million euro.
Operating income earned between 1st April and 30th June 2011 amounted to 167,2 million
euro; 246,7 million euro in the same quarter of 2010 (driven by the good performance of
financial activities); -16,5 million euro in the first three months of 2011.
Difficulties in the economic and financial context did not diminish in the first six months of
the year and they continued to determine a reduction in ordinary revenues: operating income
– which summarises the ordinary activities of the Bank – amounted to 150,6 million, (-258
million euro compared to 2010).
In detail, the income structure of the Parent recorded a decrease in dividends and similar
income down to 193,1 million euro from 298 million euro in 2010.
The trend was affected by a fall in Dividends and similar income
dividends received from Group member
1H 2011
1H 2010
companies, the main component of Figures in thousands of euro
Banca Carime Spa
31.453
59.760
income, as a consequence of the annual
Banca Popolare di Bergamo Spa
27.010
44.724
results recorded in 2010. The fall
UBI Pramerica SGR Spa
24.982
26.202
amounted to -104,3 million euro,
Banco di Brescia Spa
18.107
32.282
Banca Popolare di Ancona Spa
15.323
2.818
attributable mainly to the lower profits
Banca Popolare Commercio e Industria Spa
14.808
1.638
distributed by the network banks (with
Banca Regionale Europea Spa
14.371
30.897
the exception of BPCI and BPA), but also
Centrobanca Spa
14.280
24.514
UBI Factor Spa
4.862
4.862
to lower returns from the product
UBI Leasing Spa
8.648
companies (-10 million euro).
UBI Assicurazioni Spa
120
B@nca 24-7 Spa
Dividends distributed by available-for-sale
Other equity investments (item 100)
11.579
44.640
equity investments (16,3 million euro) Dividends received from item 100 equity investments
176.775
281.105
16.275
14.776
included 11,2 million relating to the Dividends received from item 40 AFS
of which Intesa SanPaolo
11.213
11.213
ordinary shares of Intesa Sanpaolo (which
Dividends received from item 20 for trading
72
2.091
were remunerated by the same amount Dividends received from item 30 at fair value
Total
193.122
297.972
in the comparative period).
1
If non-recurring items are not included, the profit for the period was 56,5 million euro, compared to 262,4 million euro in the
comparative first half. These items consisted of net income of 154,4 million euro (mainly the result of the tax realignment and the
reversal of deferred tax assets and liabilities, although partly offset by impairment losses for the period) and also of net income of 63
million euro in 2010 (mainly in relation to the contribution of depository banking operations).
195
Net trading income (loss)
Income from
trading
(B)
Gains
(A)
Figures in thousands of euro
1. Financial assets held for trading
1.1 Debt instruments
Losses from
trading
(D)
Losses
(C)
Net income
(loss) 1H 2011
1H 2010
[(A+B)-(C+D)]
875
444
22.742
14.055
(9.829)
(2.022)
(5.656)
(4.782)
8.132
7.695
(27.037)
(9.539)
387
44
2.830
4
(7.805)
(2)
(754)
-
(5.342)
46
(6.402)
414
808
5.853
-
(140)
(120)
-
5.733
668
(11.510)
1.896
808
-
-
(140)
-
-
668
-
1.896
-
X
306.088
X
823.391
X
(352.758)
X
(803.783)
(5.861)
(27.105)
11.345
103.132
306.088
823.391
(352.576)
(802.077)
(25.217)
104.103
305.911
819.432
(349.725)
(795.818)
(20.200)
97.654
177
3.959
(2.851)
(6.259)
(4.974)
6.663
- on currencies and gold
X
X
X
X
(43)
(214)
- other
-
-
-
-
-
-
307.771
846.133
(182)
(362.727)
(1.706)
(809.439)
(1.888)
(24.166)
(971)
89.336
1.2 Equity instruments
1.3 Units in O.I.C.R. (collective investment instruments)
1.4 Financing
1.5 Other
2. Financial liabilities held for trading
2.1 Debt instruments
2.2 Payables
2.3 Other
3. Other financial liabilities: exchange rate differences
4. Derivative instruments
4.1 Financial derivatives
- on debt instruments and interest rates
- on equity instruments and share indices
4.2 Credit derivatives
Total
Net hedging income
1H 2011
Figures in thousands of euro
Net hedging income
1H 2010
10.494
3.540
Profit (loss) from disposal or repurchase
Profits
Figures in thousands of euro
Net income
(loss) 1H 2011
Losses
1H 2010
Financial assets
1. Loans to banks
2. Loans to customers
-
3. Available-for-sale financial assets
-
-
(6)
7.103
(2)
7.101
1.472
7
(2)
5
1.474
6.824
-
6.824
(2)
272
-
272
-
-
-
-
-
7.103
(2)
7.101
1.466
-
-
-
-
212
212
7.315
(104)
(104)
(106)
108
108
7.209
(244)
(244)
1.222
3.1 Debt instruments
3.2 Equity instruments
3.3 Units in O.I.C.R (collective investment instruments).
3.4 Financing
4. Held-to-maturity investments
Total assets
Financial liabilities
1. Due to banks
2. Due to customers
3. Securities issued
Total liabilities
Total
Net loss on financial assets and liabilities at fair value
1H 2011
Figures in thousands of euro
Net loss on financial assets and liabilities at fair value
Net income (loss) from trading, hedging and disposal/repurchase activities and
from assets/liabilities at fair value
1H 2010
(4.088)
(941)
(10.551)
93.157
Volatility on financial markets increased again in the second quarter, with impacts not only on
the sovereign debt of some euro area countries, but also on share prices and risk premiums on
banking and corporate bonds.
The quarterly result for financial activities therefore amounted to 117 thousand euro, the
aggregate result of the following: -2,7 million from trading (penalised by equity instruments
and in particular by an impairment loss of 7,7 million euro on the private equity investment in
196
Medinvest International2, in view of the poor performance of its main investee); +4,3 million
euro from hedging (mainly the result of changes in the value of derivatives on bonds); +2,2
million euro from the disposal of assets (including 1,9 million euro relating to the sale of the
last 434.559 shares of London Stock Exchange) and -3,7 million euro from financial assets at
fair value (principally UBI Pramerica funds and a marginal quota of hedge funds).
The total result (117 thousand euro) compares with -10,7 million euro in the first three
months of the year, caused by the effects of trading in derivatives to hedge items on the
statements of financial position of the banks in the Group.
It must nevertheless be considered that the impact of financial derivatives on debt instruments
and interest rates on trading activities diminished progressively from -55,7 million euro in the
fourth quarter of 2010 to -31 million euro in the first quarter of 2011 to become positive with a
profit of 10,8 million in second quarter of 2011.
Net loss from financial activities in the first half was not therefore sufficient to recover from the
loss that had accumulated in the first quarter and amounted to -10,6 million euro, compared
to +93,2 million euro in 2010. The opposing trends summarise the immediate effects in the
income statement of the reversal of the trend for interest rates on intragroup trading (profits,
gains and accruals) in financial derivatives. In detail:
-
-
-
-
trading activities recorded a loss of 24,2 million euro (+89,3 million euro in the comparative
first half) composed as follows: -10,3 million euro from equity instruments and the relative
derivatives, partly in relation to the impairment loss already mentioned of 7,7 million euro
on Medinvest International (+0,3 million euro); 46 thousand euro from investments in
hedge funds (0,4 million euro); and -11,8 million euro from derivative instruments on debt
instruments and interest rates, mainly in relation to hedges against interest rate risks (IRS)
on the assets and liabilities of Group member companies (+90 million euro in the first half
of 2010). In reality the latter amount includes the results of intragroup derivatives not
balanced on the market amounting to -24,8 million euro, eliminated in the consolidation
and therefore with no effect on the consolidated income statement;
net loss from financial assets and liabilities at fair value – relating to the change in the
value of investments in UBI Pramerica funds and the now modest position in hedge funds –
amounted to -4,1 million euro (-0,9 million euro in 2010);
net hedging income – consisting of the change in the fair value of hedging derivatives and
the relative items hedged – rose to 10,5 million euro, of which 8,8 million euro relating to
bonds and 1,7 million euro to AFS securities (in the first six months of 2010 this income
amounted to 3,5 million euro, and related to hedges on bond issuances). The result
summarises a diminishing quarterly trend, consistent with the progressive realignment of
the parameters of hedge contracts with the reversal of the trend for interest rates;
net income from the disposal/repurchase of financial assets held for sale totalled 7,2
million euro (1,2 million euro in 2010) and consisted of 6,8 million euro from the total
disposal – performed partly in February and then concluded on 20th May – of the
investment in London Stock Exchange (formerly Borsa Italiana) and 0,3 million from the
disposal of units in OICR units (collective investment instruments).
Other net operating income fell to 48,6 million euro, down by 6,2 million euro, mostly due to
the decrease (from 40,2 million euro to 32,8 million euro) in income for services provided to
Group member companies, in relation to the centralisation of further support activities at
UBI.S, which occurred at the start of the current year, and to greater efficiencies in service
delivery units.
As a result of the trend for interest rates 3 , the impact of which was felt in all areas of
operations, but on the cost of funding in particular, net interest expense, which is structurally
2
Medinvest International Sca (Luxembourg), in which a 19,57% interest is held, is a merchant bank which invests in
companies and also provides financial advisory services to SMEs.
3
The progressive average one month Euribor rate rose from 0,429% in the first six months of 2010 to 1,045% in the
first half of 2011.
197
negative4, amounted to -88,3 million euro, compared to -46,5 million euro in the first half of
2010. The analysis given below reports the contribution by areas of activity, although it must
be considered that the Parent’s operations involve movements across different business areas
(e.g. funding from customers used for the purchase of securities or funding from the network
banks used for loans to the product companies). In detail5:
-
-
-
the owned securities portfolio generated interest income of 105,1 million euro, almost
tripled compared to 53,3 million euro in 2010, while investments in debt instruments
decreased over twelve months by 3,3 billion euro (the result almost entirely of disposals of
Italian government securities performed since the last quarter of 2010). The contribution to
net interest income from debt instruments was again substantial with 164,7 million euro of
interest income received from available-for-sale securities (108,6 million euro in the
comparative period). In compliance with the policy to contain interest rate risk, this item is
affected by the expense of hedges on fixed rate bonds (differentials paid on derivatives), but
progressively diminishing and in proportion to the increase in market interest rates;
business on the interbank market, focused mainly on intragroup activities, generated a
positive balance of 75,2 million euro, a substantial improvement compared to 33,2 million
euro in 2010, as average volumes of funding reduced and volumes of lending grew;
business with customers recorded interest expense of 268,4 million euro, a more than
twofold increase compared to -132,8 million euro in 2010. This performance is due
primarily to the increase in interest expense on securities issued (+144,4 million euro),
consistent with the growth in this item of 7,2 billion euro over twelve months (3,9 billion
euro in relation to institutional funding) and also, although to a smaller extent, to the
increase in interest expense on amounts due to customers (+38,1 million euro), even if the
relative assets diminished by 1,5 billion euro (-3,4 billion euro relating to transactions with
Cassa di Compensazione e Garanzia – a central counterparty clearing house – used to fund
investments in government securities). The balance also includes the income from positive
differentials on hedges on bonds issued by the Bank amounting to approximately 61 million
euro.
Interest and similar income: composition
Debt
instruments
Figures in thousands of euro
1. Financial assets held for trading
2. Available-for-sale financial assets
1H 2011
1H 2010
13.154
-
-
13.154
11.270
164.707
-
-
164.707
108.631
3. Held-to-maturity investments
4. Loans to banks
5. Loans to customers
Other
transactions
Financing
-
-
-
-
-
81.043
7.795
145.738
98.446
-
226.781
106.241
-
-
159.819
65.968
-
7. Hedging derivatives
6. Financial assets at fair value
X
X
-
-
8. Other assets
X
X
16
16
14
266.699
244.184
16
510.899
349.850
Total
4.148
Interest and similar expense: composition
Borrowings
Securities
Other liabilities
1H 2011
1H 2010
Figures in thousands of euro
1. Due to central banks
(3.103)
2. Due to banks
3. Due to customers
(150.677)
(69.265)
4. Securities issued
X
5. Financial liabilities held for trading
6. Financial liabilities at fair value
(6.728)
-
7. Other liabilities and provisions
8. Hedging derivatives
X
X
Total
(229.773)
Net interest expense
-
-
(3.103)
(2.788)
-
(150.677)
(69.265)
(135.880)
(31.118)
(366.100)
-
(366.100)
(221.669)
-
-
(6.728)
(4.708)
-
-
-
-
X
X
(366.100)
(254)
(3.121)
(3.375)
(254)
(3.121)
(599.248)
(227)
(396.390)
(88.349)
(46.540)
X
X
4
Net interest expense is structurally negative in relation to the role of the Parent, UBI Banca, because it includes the
financial expense that it incurs for its investments in Group subsidiaries, while the relative financial revenues are
recognised within the item dividends.
5
The calculation of net balances was performed by allocating interest income and expense on hedging derivatives and
financial liabilities held for trading within the different areas of business (financial, with banks, with customers).
198
On a quarterly basis, the change in net interest income was more contained falling from -35,9
million euro in the first quarter of 2011 to -52,4 million euro in the second quarter.
This change was due to the performance of net interest expense for business with customers,
which rose from approximately -121,2 million euro to -147,2 million euro, and in particular to
the increase in interest paid on securities issued (+28,5 million euro).
This is to be set against positive growth in net income from both financial activities (52,7
million euro, unchanged compared to the previous quarter, but which incorporates a decrease
in interest income from debt instruments held for trading, in relation to disposals, and a lower
cost for the differentials paid on hedging derivatives) and also from the net balance on
interbank business (up to 42,2 million euro, compared to 33 million euro in the first quarter,
as a result of growth in interest income).
To complete the report on revenues in the first half of 2011 net commission income amounted
to 7,8 million euro down from 9,2 million euro before.
It is the aggregate result on the one hand of an increase in commissions on guarantees
granted (+3,7 million euro), and on the other of a decrease in fees for management, trading
and advisory services (-5,8 million euro net of the respective expense items and excluding
currency trading). The latter figure was nevertheless affected by the absence of income from
depository banking operations (7,6 million euro), disposed of in May 2010. Net of those
operations, the item relating to securities business recorded growth (1,8 million euro),
attributable primarily to lower costs for outsourced custody and administration services.
Operating expenses totalled
149,4 million euro in the first
six months of the year (137,7
million in 2010). Net of nonrecurring items (19,5 million
euro in the first half of 2011
classified within impairment
losses on property, equipment
and investment property and
intangible assets and 2,1
million euro in the same
period of 2010 classified
within personnel expense),
expenses amounted to 129,9
million euro, a reduction of
4,2%.
Personnel expense: composition
1H 2011
1H 2010
Figures in thousands of euro
1) Employees
a) Wages and salaries
b) Social security charges
c) Post-employment benefits
d) Pension expense
e) Provision for post-em ployment benefits
f) Pensions and sim ilar obligations
g) Payments to external supplem entary pension plans:
- defined contribution
i) Other em ployee benefits
2) Other personnel in service
(92.494)
(93.756)
(62.893)
(17.116)
(62.593)
(16.941)
(3.989)
(4.153)
-
-
(397)
-
(404)
-
(3.655)
(3.655)
(3.655)
(3.655)
(4.444)
(343)
(6.010)
(1.289)
- Expenses for agency personnel on staff leasing contracts
(107)
(916)
- Other expenses
(236)
(373)
(3.811)
31
(3.799)
(37)
44.732
42.987
(12.149)
(11.726)
3) Directors
4) Expenses for retired personnel
5) Recoveries of expenses for personnel on secondment to other
companies
6) Reimbursements of expenses for personnel on secondment at the
Bank
Personnel
expense –
64 Total
(64.034)
(67.620)
million euro – fell by 5,3% (2,2% net of leaving incentives recognised in connection with a trade union agreement signed
last May and classified within “other employee benefits”) and incorporate the changes in
employee expenses (-1,3 million euro), workers on personnel leasing contracts (-0,8 million
euro) and the two items recoveries for staff on secondment and recoveries of expenses for
personnel on secondment to other companies (-l,3 million euro).
The performance in the first half is mainly the result of savings (approximately 6,5 million
euro) related to changes in average personnel numbers, while increases consisting of ordinary
salary rises did occur and provisions were made for the variable component of salaries
(company bonus and incentive schemes) and for the renewal of the national labour contract.
Other administrative expenses also decreased compared to first half of 2010,
(-5,8%), falling to 51,7 million euro.
As shown in table, the reduction is attributable to decreases for professional and advisory
services (-2,2 million euro), maintenance of hardware and software (-0,2 million euro),
advertising expenses (-0,1 million euro) and outsourced services (-0,2 million euro). The
reduction in the fees for services provided by UBI.S (-0,9 million euro) should be underlined,
attributable mainly to the disposal of the depository banking operations which occurred in
May 2010.
199
Net
impairment
losses
on
property,
equipment and investment property and
intangible assets totalled 33,6 million euro
and included a non recurring item of 19,5
million euro, relating to the full impairment
loss recognised on intangible assets
connected with the investment in BY YOU
(partially disposed of in the second quarter),
following the renegotiation of distribution
agreements. If the figure is normalised
(14,1 million euro), net impairment losses
continued to fall compared to the
comparative figure (-7,3%), due mainly to
the full depreciation and amortisation of
investments made in prior years.
Other administrative expenses: composition
1H 2011
1H 2010
Figures in thousands of euro
A. Other administrative expenses
Rent payable
Professional and advis ory services
Rentals of hardware, s oftware and other as sets
Maintenance of hardware, software and other assets
(49.994)
(4.480)
(53.379)
(4.476)
(7.114)
(1.575)
(9.305)
(1.561)
(251)
(424)
(3.391)
(882)
(3.529)
(820)
Counting, trans port and management of valuables
Membership fees
(2)
(764)
(2)
(777)
Information services and land registry searches
(257)
(225)
Books and periodicals
Postal
(276)
(239)
(277)
(266)
Tenancy of prem ises
Property and equipment maintenance
Insurance prem iums
(505)
(442)
Advertising
Entertainment expens es
(1.330)
(323)
(1.474)
(244)
Telephone and data transmis sion expenses
Services in outs ourcing
(4.760)
(2.129)
(4.783)
(2.306)
Travel expenses
Fees for services provided by Group companies (UBI.S)
Credit recovery expenses
(1.820)
(1.887)
(17.941)
(25)
(18.838)
(26)
On a quarterly basis, operating expenses
Forms, s tationery and consum ables
(365)
(340)
net of non-recurring items, totalled 67,9
Transport and removals
(96)
(96)
million euro compared to 62 million euro in
Security
(931)
(907)
the first quarter and 68,2 million euro in
Other expenses
(538)
(374)
(1.709)
(1.494)
the second quarter of last year. Average B. Indirect taxes
Indirect taxes and duties
(386)
(157)
normalised quarterly spending, however,
Stamp duty
(60)
(80)
Municipal property tax
(1.055)
(1.058)
continued to fall from 69,7 million euro in
Other taxes
(215)
(208)
2009 to 68,6 million euro in 2010 and 64,9
Reclassification of "tax recoveries"
7
9
million euro in 2011.
Total
(51.703)
(54.873)
A comparison of the last two quarters
shows the following: personnel expense (32,6 million euro) increased by 1,1 million euro (of
which only 0,5 million euro attributable to employees), other expenses rose to 28,2 million
euro (+4,6 million euro, partly as a result of a change in the timing of invoices for services
received), while normalised impairment losses on property, equipment and investment
property and intangible assets (7,1 million euro) recorded no significant change.
As a result of the performance reported above, net operating income in the first half
amounted to 1,3 million euro compared to 270,9 million euro in 2010.
The result in the second quarter was 79,8 million euro, compared to 176,3 million euro in the
same quarter of 2010, while a loss of 78,5 million euro was recorded in the first three months
of this year.
Net impairment losses on other financial assets and liabilities were recognised in the first half of
2011 amounting to 18,9 million euro. These included 18,8 million euro of non-recurring items
consisting of impairment losses on equity investments and AFS securities: 3,4 million euro in
relation to OICRs (collective investment funds) (of which 1,1 million relating to the Polis
property fund) and 15,4 million euro to the investment in Intesa Sanpaolo, with the loss
recognised on the basis of the official price as at 30th June 2011 (1,8075 euro)6.
Impairment losses recognised in 2010 amounted to 19,2 million euro, including 18,9 million euro of nonrecurring items as follows: 1,7 million euro relating to the company A2A and 17,2 million euro to Intesa
Sanpaolo (official price as at 30th June 2010 of 2,1735 euro).
The item disposal of equity investments and net impairment losses on goodwill showed a loss of
163,2 million euro, consisting almost totally of non-recurring items arising following periodic
impairment tests performed in the second quarter of the year. These are composed of:
▪
▪
6
-102,1 million euro relating to reductions in the carrying amounts of the investments in
UBI Leasing (87,9 million euro) and B@nca 24-7 (14,2 million euro);
-63,4 million euro resulting from impairment losses recognised on the goodwill of
Centrobanca (8,4 million euro, for a partial adjustment of the amount recognised in item
The impairment loss was recognised on the basis of the new number of ordinary shares of Intesa Sanpaolo (180.215.498) held by the
UBI Banca Group following the increase in the share capital (when 40.047.888 new ordinary shares were subscribed at a price per
share of 1,369 euro) and on the basis of the difference that arose between the new carrying amount for the shares held in portfolio
and their value at the end of the first half (325.739.513 euro).
200
▪
120 in the statement of financial position) and B@nca 24-7 (55 million euro, as a full
adjustment of the amount recognised in the specific item in the statement of financial
position). The goodwill had originated when UBI Banca was formed in April 2007 and
relates to the cash generating units of the former BPU Banca Group which benefited from
synergies arising from the business combination;
2,3 million euro relating to the profit on the partial disposal of the interest held in BY YOU,
performed in April 2011.
Pre-tax loss on continuing operations in the first six months of the year was 181,6 million
euro (a profit of 250,9 million euro in 2010); similarly the second quarter ended with a pre-tax
loss of 102 million euro (compared to a profit of 156,4 million in same period of 2010 and a
loss of 79,6 million euro in the first three months of 2011).
Taxes on income for the period for continuing operations were positive in the first half
amounting to 392,5 million euro, compared to tax expense of 8,8 million euro in the
comparative period.
The item included a non-recurring component of 352,8 million euro, consisting of:
• +377,8 million euro from the realignment of taxation on goodwill and other intangible
assets in accordance with Decree Law No. 98 of 6th July 2011, converted with amendments
into Law No. 111 of 15th July 2011. This legislation allowed, in accordance with the
principles of Law No. 2 of 28th January 20097, the recognition for tax purposes of higher
values attributed to controlling interests acquired through extraordinary transactions. The
realignment is performed by the payment of a substitute tax of 16% (525,6 million euro to
be paid in November 2011), which allows tax to be deducted on the amortisation of the
amount subject to tax relief (3.285,3 million euro) at constant rates over ten years with
effect from 2012. Consequently, in the first half of 2011 deferred tax assets of 903,4 million
euro were recognised within item 260 of the income statement, corresponding to the future
benefit arising from the deduction of amortisation on the intangible assets subject to tax
relief;
• -25 million euro from the derecognition of deferred tax assets for IRAP (local production tax)
purposes already recognised in the financial statements as at and for the year ended 31st
December 2010. As a result of the tax deductibility of the amortisation of the amount
subject to tax relief mentioned above, the Bank does not have sufficient taxable income for
IRAP purposes to recover the deferred tax assets which had been recognised, since IRAP is
not included in the tax consolidation. Consequently the conditions for its recognition were
no longer met.
The normalised figure – positive due to the application of the tax consolidation law, which
allows structurally negative taxable income to be offset – amounted to 36,7 million euro,
compared to -9,5 million euro in 2010, to reflect the structure of income in the period.
Finally, in the comparison period, post tax profit from discontinued operations was recognised amounting
to 83,4 million euro (non-recurring) in relation to the contribution of depository banking operations
performed in May 2010 to RBC Dexia Investor Services.
7
UBI Banca took advantage of the law mentioned in its income tax returns for 2008 income to obtain tax relief on goodwill (569
million euro), not acknowledged for tax purposes, which had been recognised when the purchase price allocation was performed
arising from the merger of the former Banca Lombarda e Piemontese into the Bank. The operation involved the recognition of higher
current taxation (substitute tax of 16%) amounting to 91 million euro and lower taxation for deferred tax assets of 184 million euro,
with a net positive impact of 93 million euro (the difference between the rate of the substitute tax and the ordinary tax rate).
201
The statement of financial position
Direct funding from customers
Figures in tho usands o f euro
Current accounts and deposits
Term deposits
Financing
- repurchase agreements
of which: repurchase agreements
with the C.C.G.
- other
Other payables
30.6.2011
A
31.3.2011
B
%
31.12.2010
C
Changes A/B
amount
%
Changes A/D
amount
%
1.658.264
4,5%
1.150.807
507.457
44,1%
1.331.971
326.293 24,5%
357.801
572.961
1,6%
581.124
-8.163
-1,4%
719.256
-146.295 -20,3%
428.285
7.967.494
21,6%
8.489.089
-521.595
-6,1%
9.353.133
-1.385.639 -14,8%
7.575.488
20,6%
8.098.708
-523.220
-6,5%
9.190.455
-1.614.967
-17,6%
10.926.757
-3.351.269
-30,7%
7.575.488
20,6%
8.098.708
-523.220
-6,5%
9.190.455
-1.614.967
-17,6%
10.926.757
-3.351.269
-30,7%
392.006
1,0%
390.381
1.625
0,4%
162.678
229.328 141,0%
128.947
263.059 204,0%
21.280
152.291 715,7%
173.571
0,5%
35.784
TOTAL AMOUNTS DUE TO CUSTOMERS
10.372.290
28,2%
10.256.804
115.486
1,1%
11.422.728
Bonds
26.464.859
71,8%
24.642.908
1.821.951
7,4%
23.367.788
- bonds subscribed by institutional
customers
30.6.2010
D
Changes A/C
amount
%
137.787 385,1%
18.368
155.203 845,0%
-1.050.438
-9,2%
3.097.071 13,3%
1.300.463 363,5%
144.676
33,8%
11.055.704 -3.088.210 -27,9%
11.863.070 -1.490.780 -12,6%
19.235.050
7.229.809
37,6%
16.766.911
45,5%
16.141.777
625.134
3,9%
14.911.570
1.855.341
12,4%
12.863.791
3.903.120
30,3%
11.211.758
30,4%
10.719.282
492.476
4,6%
11.158.751
53.007
0,5%
10.485.346
726.412
6,9%
5.555.153
15,1%
5.422.495
132.658
2,4%
3.752.819
1.802.334
48,0%
2.378.445
3.176.708 133,6%
5.935.443
16,1%
4.997.526
937.917
18,8%
5.035.176
900.267
17,9%
3.908.028
2.027.415
51,9%
3.762.505
10,2%
3.503.605
258.900
7,4%
3.421.042
341.463
10,0%
2.463.231
1.299.274
52,7%
-
-
-
-
-
-
-
-
-
-
-
TOTAL SECURITIES ISSUED
26.464.859
71,8%
24.642.908
1.821.951
7,4%
23.367.788
3.097.071 13,3%
19.235.050
7.229.809
37,6%
TOTAL DIRECT FUNDING FROM
CUSTOMERS
36.837.149 100,0%
34.899.712
1.937.437
5,6%
34.790.516
2.046.633
5,9%
31.098.120
5.739.029
18,5%
of which: EMTN (*)
Covered bonds
- bonds subscribed by ordinary customers
- bonds subscribed by Group banks
(intragroup)
Other certificates
of which:
subordinated liabilities
of which: subordinated deposits (**)
subordinated securities
of which: EMTN (*)
4.471.796
12,1%
3.839.481
632.315
16,5%
3.883.908
587.888
15,1%
3.830.856
640.940
572.961
1,5%
581.124
-8.163
-1,4%
599.140
-26.179
-4,4%
428.285
144.676
16,7%
33,8%
3.898.835
10,6%
3.258.357
640.478
19,7%
3.284.768
614.067
18,7%
3.402.571
496.264
14,6%
347.979
0,9%
502.310
-154.331
-30,7%
502.312
-154.333
-30,7%
851.667
-503.688
-59,1%
The corresponding nominal amounts were 11.196 million euro (348 million euro subordinated) as at 30th June 2011, 10.700 million euro (502 million
euro subordinated) as at 31st March 2011, 11.128 million euro (502 million euro subordinated) as at 31st December 2010 and 10.478 million euro (852
million euro subordinated) as at 30th June 2010. The figures as at 30th June and as at 31st March 2011 shown in the table do not include two private
placements for a total of 88 million euro (the first for 80 million euro, performed in January and the second for eight million euro, performed in March),
classified as “intragroup”.
(**) The figure refers to deposits made by BPB Funding Llc for a nominal amount of 300 million euro, by BPCI Funding Llc for a nominal amount of 115,001
million euro and by Banca Lombarda Preferred Capital Co. Llc for a nominal amount of 155 million euro (the latter classified within intragroup
subordinated securities in June 2010).
(*)
At the end of June 2011, the direct funding from customers of UBI Banca had reached 36,8
billion euro, an increase compared to both twelve months before (+5,7 billion euro) and
December 2010 (+2 billion euro), but with differing trends for single items.
Amounts due to customers (10,4 billion euro) fell year-on-year (-1,5 billion euro) and in the
first half (-1 billion), as a result of a reduction in total repurchase agreements with the Cassa
di Compensazione e Garanzia (CCG - a central counterparty clearing house) (-3,4 billion euro
and -1,6 billion euro respectively in the two comparative periods), in relation to the partial
disposal of Italian government securities.
This reduction was only partially offset by a significant increase in current accounts (+1,3
billion euro over twelve months and +0,3 billion euro in the first half of 2011), connected in
particular with deposits for business with UBI Pramerica.
Securities issued on the other hand recorded substantial and progressive growth (+7,2 billion
euro since 30th June 2010 and +3,1 billion euro since 31st December 2010) which affected all
components and funding from institutional customers in particular, which reached almost 17
billion euro (+3,9 billion euro year-on-year).
Over twelve months UBI Banca issued covered bonds for a nominal amount of 3,25 billion
euro with maturities of between five and ten years (two issuances in 2010 for one billion euro
and 500 million euro and another two issuances in 2011, the first for one billion euro and the
second for 750 million euro), in addition to four placements of EMTNs for a total of 2,75 billion
euro nominal (the first for one billion euro in 2010 and others for one billion euro, 700 million
euro and 50 million euro respectively in 2011), against maturities and redemptions of five
issues for approximately two billion euro nominal.
Bonds subscribed by network bank customers, most of them listed, rose to a total of almost
six billion euro, an annual increase of two billion euro, as a result of the placement of nine
202
issuances for a total nominal amount of 2,3 billion euro (including three issuances for 1,2
billion euro, with a lower tier two subordination clause).
Intragroup funding increased (+1,3 billion euro to 3,8 billion euro) as a result of seven
issuances of debt for 1,4 billion euro nominal, subscribed by some banks in the Group to
invest their liquidity.
In the first half of 2010 in particular, bond funding by UBI Banca was driven mainly by
institutions (+1,9 billion euro) with placements for 3,5 billion euro nominal (1,75 billion euro
of covered bonds and 1,75 billion euro of EMTNs), which fully offset issuances maturing not
just during the period (1,7 billion euro of EMTNs), but actually for the whole year (2,7 billion
euro again of EMTNs). In addition to these placements four listed issuances were subscribed
by network bank customers for a total of 0,9 billion euro nominal and two intragroup
issuances were subscribed for 0,25 billion euro.
Lending by the Parent as at 30th June 2011 stood at 13,5 billion euro, an increase year-onyear (+0,4 billion euro), but down compared to December (-1 billion euro).
The lending activity of UBI Banca is performed mainly with companies operating in the leasing
and factoring sectors, to which loans amounted to 10,1 billion euro and 2,4 billion euro
respectively (10,1 billion euro and 2,2 billion euro a year before and 10,6 billion euro and 2,5
billion euro at the end of December). The changes in the item are therefore mainly the result of
changes in the funding requirements of those companies.
Changes in lending were also affected by the increase in exposures to Cassa di Compensazione
e Garanzia (CCG – a centralised clearing house) (+0,2 billion euro over twelve months) in
relation to both ordinary reverse repurchase agreement transactions (+0,1 billion euro), and
the new role it has performed since October 2010, as the guarantor of all operations on the
“New MIC” (collateralised interbank market) (approximately +0,1 billion euro). Total exposure
to the CCG as at 30th June 2011 had fallen by 0,3 billion euro compared to 31st December
2010, due to a decrease in the deposits required by participation in the market segment
mentioned above.
In terms of types of lending, a change in composition occurred in the first quarter of 2011 out
of the item “mortgages and other medium to long-term financing” and into short term types of
lending classified within “other transactions”, in relation to the specific funding requirements
of UBI Leasing.
Financial assets held by UBI Banca at the end of June 2011 amounted to 10,6 billion euro
(9,4 billion euro net of financial liabilities held for trading), having decreased progressively
during the first half of 2011 (-1,4 billion euro compared to December and -0,3 billion euro
compared to March).
While a detailed discussion is given in the interim management report on the consolidated
operations contained in this publication, the main changes that affected the principal types of
financial asset in the first six months of the year are given below.
•
Available-for-sale financial assets reached their highest level (11 billion euro) in June 2010,
in relation to action taken to support net interest income taken in that month, which was
followed by partial disposals between September and October. The total as at 30th June
2011 amounted to 8,8 billion euro, slightly up both in the first half (+0,1 billion euro) and
in the second quarter (+0,2 billion euro), due to an increase in debt instruments (Italian
government securities in particular).
The item included the interest held in Intesa Sanpaolo among equity instruments classified
within fair value level one, which rose to 325,7 million euro8 (286,3 million euro at the end
of 2010 and 294,4 million euro in March 2011). The interest held in London Stock Exchange (15,5
million euro in December) was completely disposed of in May 2011 after partial sales performed in the
first quarter.
•
Financial assets held for trading fell to 1,3 billion euro (-1,9 billion euro over six months
and -0,5 billion euro over three months), primarily as a result of net disposals of Italian
government securities (a total of 0,4 billion euro at 30th June 2011; 0,9 billion euro at 31st
8
In June 2011 UBI Banca participated in the increase in the share capital by subscribing 40.047.888 ordinary shares at a price of
1,369 euro per share. As a result of that subscription it now holds 180.215.498 shares (140.167.610 in March 2011), accounting for
1,16% of the share capital with voting rights. The value of the investment as at 30th June 2011 also incorporates an impairment loss
of 15,4 million euro on the basis of the market price at the end of the first half.
203
March; 1,8 billion euro at 31st December). Within the item, financial derivatives contracted
(from 1,2 billion euro to 0,8 billion euro), to be interpreted principally in relation to the
similar decrease in financial derivatives classified within financial liabilities held for trading;
Financial assets at fair value, consisting exclusively of units in O.I.C.R. (collective
investment instruments) amounted to 468 million euro, unchanged compared to March.
These assets are composed of the following types of investment:
- UBI Pramerica funds, part of the management mandate conferred on the Group’s asset
management company, classified within fair value level one, amounting to 329,3 million
euro (a new investment made in the first quarter of 2011);
- hedge funds amounting to 138,7 million euro, including 111,4 million euro relating to
Capitalgest alternative funds classified within fair value level one and 27,3 million euro
classified within fair value level three.
•
With regard to hedge funds – also including the remaining amount of 1,5 million euro
recognised within financial assets held for trading (purchases made before 30th June 2007)
– the total portfolio held by the Parent as at 30th June 2011 amounted to 140,2 million euro
(148,9 million euro in December and 144,8 million euro in March). Since the beginning of
the year hedge funds were redeemed, net of redemption fees, for approximately 3,5 million
euro.
Financial assets/liabilities
30.6.2011
L1
Figures in thousands of euro
Financial assets held for trading
L3
Changes a / b
31.12.2010
Total a
%
L1
L2
L3
Total b
%
amount
%
30.6.2010
Total c
438.410
825.588
16.425
1.280.423
12,1%
1.887.816 1.230.484
24.891
3.143.191
26,2%
-1.862.768
-59,3%
3.296.100
533
820.581
-
821.114
7,8%
886 1.222.369
-
1.223.255
10,2%
-402.141
-32,9%
1.679.572
440.748
of which: financial derivatives contracts
Financial assets at fair value
L2
-
27.290
468.038
4,4%
Available-for-sale financial assets
7.497.934 1.266.900
46.255
8.811.089
83,5%
TOTAL FINANCIAL ASSETS (A)
8.377.092 2.092.488
89.970 10.559.550 100,0%
-
31.078
147.286
1,2%
7.423.077 1.230.294
116.208
44.838
8.698.209
72,6%
320.752 217,8%
112.880
1,3%
10.987.288
155.143
9.427.101 2.460.778 100.807
11.988.686 100,0%
-1.429.136
-11,9%
14.438.531
of which:
- debt instruments
of which: Italian government securities
7.553.653 1.120.047
6.436
8.680.136
82,2%
8.918.169 1.082.902
6.474
10.007.545
83,5%
-1.327.409
-13,3%
11.970.013
6.969.335
404.639
-
7.373.974
69,8%
8.259.591
409.872
-
8.669.463
72,3%
-1.295.489
-14,9%
10.535.183
366.578
66.081
51.860
484.519
4,6%
373.525
68.461
57.899
499.885
4,2%
-15.366
-3,1%
535.465
456.328
85.779
28.788
570.895
5,4%
134.521
87.046
32.679
254.246
2,1%
316.649 124,5%
249.542
423.440
780.226
-
410.453 1.132.081
-
1.542.534 100,0%
-338.868
-22,0%
1.753.370
667
780.226
-
780.893
1.190 1.132.081
-
1.133.271
-352.378
-31,1%
1.572.676
7.953.652 1.312.262
89.970
9.355.884
9.016.648 1.328.697 100.807
10.446.152
-1.090.268
-10,4%
12.685.161
- equity instruments
- Units in O.I.C.R.
(collective investment instruments)
FINANCIAL LIABILITIES HELD FOR TRADING
(B)
of which: financial derivatives contracts
NET FINANCIAL ASSETS (A-B)
1.203.666 100,0%
64,9%
73,5%
Financial assets/liabilities
30.6.2011
Figures in tho usands o f euro
Financial assets held for trading
L1
L2
L3
31.3.2011
Total d
%
L1
L2
L3
Changes d / e
Total e
%
amount
%
438.410
825.588
16.425
1.280.423
12,1%
900.348
855.122
24.734
1.780.204
16,4%
-499.781
-28,1%
533
820.581
-
821.114
7,8%
1.212
849.735
-
850.947
7,8%
-29.833
-3,5%
440.748
-
27.290
468.038
4,4%
445.822
-
28.292
474.114
4,3%
-6.076
-1,3%
Available-for-sale financial assets
7.497.934 1.266.900
46.255
8.811.089
83,5%
7.330.388 1.254.587
44.432
8.629.407
79,3%
181.682
2,1%
TOTAL FINANCIAL ASSETS (A)
8.377.092 2.092.488
89.970 10.559.550 100,0%
8.676.558 2.109.709
97.458 10.883.725 100,0%
-324.175
-3,0%
of which: financial derivatives contracts
Financial assets at fair value
of which:
- debt instruments
of which: Italian government securities
- equity instruments
- Units in O.I.C.R.
(co llective investment instruments)
FINANCIAL LIABILITIES HELD FOR TRADING (B)
of which: financial derivatives contracts
NET FINANCIAL ASSETS (A-B)
7.553.653 1.120.047
6.436
8.680.136
82,2%
7.870.440 1.112.808
6.418
8.989.666
82,6%
-309.530
-3,4%
6.969.335
404.639
-
7.373.974
69,8%
7.281.902
419.047
-
7.700.949
70,8%
-326.975
-4,2%
366.578
66.081
51.860
484.519
4,6%
335.260
66.090
58.036
459.386
4,2%
25.133
5,5%
456.328
85.779
28.788
570.895
5,4%
469.646
81.076
29.844
580.566
5,3%
-9.671
-1,7%
-201.549
-14,3%
-33.676
-4,1%
423.440
780.226
-
667
780.226
-
1.203.666 100,0%
780.893
7.953.652 1.312.262
89.970
9.355.884
204
64,9%
591.420
813.795
-
774
813.795
-
1.405.215 100,0%
814.569
8.085.138 1.295.914
97.458
9.478.510
58,0%
-122.626
-1,3%
At the end of the first half of 2011 the net interbank position showed funding of 10,9 billion
euro that had grown progressively over the whole of the period reported in the table, as a
consequence of opposing trends for lending and funding.
The stronger position is due to an improvement in the balance on intragroup transactions
(rising from +9,7 billion euro to +12,2 billion euro over twelve months), but above all to a
significant reduction in net debt with banking counterparties outside the Group (down from -7
billion euro in June 2010 to -1,3 billion euro in June 2011).
In detail, loans to banks rose to 30,2 billion euro (+1,9 billion euro year-on-year) as a result of
a simultaneous increase, occurring in 2011 in particular, in business with the external market
(+1,2 billion euro) and Group banks (+0,7 billion euro).
As concerns intragroup lending, the pursuit of structural balance polices led in the second
quarter of 2011 to the use of bond issuances by banks which were fully subscribed by the
Parent. As shown in the table, total intragroup securities rose over three months by 4,1 billion
euro (+3,9 billion euro compared to the end of the year), accompanied by a fall in current
accounts and term deposits of 2,6 billion euro (-2,8 billion euro since December).
Benefiting from favourable trends for institutional funding on international markets, funding
from banks fell to 19,3 billion euro (-6,4 billion euro over twelve months). The decreased
requirement mainly regarded funding outside the Group (-4,6 billion euro) – with no debt to
central banks in June 2011 – and intragroup funding to a lesser extent (-1,8 billion euro).
30.6.2011
31.3.2011
30.222.165
29.250.552
31.12.2010
30.9.2010
30.6.2010
28.996.844
28.341.383
Figures in tho usands o f euro
Loans to banks
28.424.384
of which:
- loans to central banks
- intragroup
of which: intragroup securities
Due to banks
155.501
177.952
595.521
240.946
311.220
27.302.314
26.268.424
26.656.378
27.110.765
26.589.673
10.086.529
6.011.405
6.186.334
8.793.101
9.074.802
19.314.805
21.773.213
22.589.437
25.225.553
25.687.388
of which:
- due to central banks
- intragroup
of which: subordinated deposits
NET INTERBANK DEBT
of which: intragroup
-
1.255.064
2.219.152
2.000.056
2.977.481
15.085.974
15.181.546
17.746.392
17.326.252
16.916.380
367.887
372.211
370.571
375.218
1.287.018
10.907.360
7.477.339
5.834.947
3.771.291
2.653.995
12.216.340
11.086.878
8.909.986
9.784.513
9.673.293
205
Mandatory condensed separate interim
financial statements as at and for the
period ended 30th June 2011
Statement of financial position
30.6.2011
31.12.2010
30.6.2010
Figures in tho usands o f euro
ASSETS
10.
Cash and cash equivalents
20.
Financial assets held for trading
30.
Financial assets at fair value
40.
Available-for-sale financial assets
60.
70.
160.950
195.060
192.549
1.280.423
3.143.191
3.296.100
468.038
147.286
155.143
8.811.089
8.698.209
10.987.288
Loans to banks
30.222.165
28.424.384
28.341.383
Loans to customers
13.492.679
14.536.121
13.111.296
80.
Hedging derivatives
100.
Equity investments
166.975
164.595
266.435
13.304.720
13.336.899
12.190.108
110.
120.
Property, equipment and investment property
612.521
624.907
638.765
Intangible assets
of which:
- goodwill
458.337
542.792
544.335
130.
Tax assets
a) current
b) deferred
457.848
521.245
521.245
1.393.361
151.159
1.242.202
725.032
380.220
344.812
504.929
179.387
325.542
140.
Non-current assets and disposal groups held for sale
150.
Other assets
TOTAL ASSETS
6.023
6.023
12.909
414.092
353.102
523.096
70.791.373
70.897.601
70.764.336
30.6.2011
31.12.2010
30.6.2010
Figures in tho usands o f euro
LIABILITIES AND EQUITY
10.
Due to banks
19.314.805
22.589.437
25.687.388
20.
Due to customers
10.372.290
11.422.728
11.863.070
30.
Securities issued
26.464.859
23.367.788
19.235.050
40.
Financial liabilities held for trading
1.203.666
1.542.534
1.753.370
60.
Hedging derivatives
456.852
599.874
739.716
80.
Tax liabilities
761.643
381.642
241.148
a) current
661.982
277.626
139.148
99.661
104.016
102.000
767.875
613.923
760.170
b) deferred
100.
Other liabilities
110.
Post-employment benefits
37.264
38.130
39.224
120.
Provisions for risks and charges:
b) other provisions
17.766
17.766
13.279
13.279
8.609
8.609
130.
Fair value reserves
-180.577
-226.575
-159.968
160.
Reserves
1.759.204
1.572.878
1.572.878
170.
Share premiums
7.401.115
7.100.378
7.100.378
180.
Share capital
2.203.694
1.597.865
1.597.865
200.
Profit for the period/year (+/-)
210.917
283.720
325.438
70.791.373
70.897.601
70.764.336
TOTAL LIABILITIES AND EQUITY
206
Income statement
1H 2011
1H 2010
FY 2010
Figures in tho usands o f euro
10.
Interest and sim ilar incom e
20.
Interest expense and s im ilar
510.899
349.850
805.571
(599.248)
(396.390)
(893.006)
30.
40.
Net interest expense
(88.349)
(46.540)
(87.435)
Com m is sion incom e
14.545
17.890
30.055
50.
Com m is sion expense
(6.776)
(8.675)
(16.130)
60.
Net commission income
7.769
9.215
13.925
70.
Dividends and sim ilar incom e
193.122
297.972
300.580
80.
Net trading incom e (los s)
(24.166)
89.336
87.268
90.
Net hedging incom e
10.494
3.540
17.666
100.
Incom e (los s) from dispos al or repurchas e of:
7.209
1.222
17.730
-
(6)
(6)
7.101
1.472
17.962
a) loans
b) available-for-sale financial ass ets
d) other financial trans actions
108
(244)
(226)
(4.088)
(941)
6.669
110.
Net incom e (loss ) on financial ass ets and liabilities at fair value
120.
Gross income
101.991
353.804
356.403
130.
Net im pairm ent los ses on:
(19.066)
(19.314)
(49.365)
a) loans
b) available-for-sale financial ass ets
d) other financial trans actions
140.
Net financial income
150.
Adm inis trative expens es
(191)
(92)
(51)
(18.763)
(18.942)
(39.971)
(112)
(280)
(9.343)
82.925
334.490
307.038
(115.744)
(122.502)
(247.254)
a) pers onnel expens e
(64.034)
(67.620)
(130.591)
b) other adm inistrative expens es
(51.710)
(54.882)
(116.663)
(556)
(762)
(2.046)
(26.352)
160.
Net provisions for ris ks and charges
170.
Net im pairm ent los ses on property, equipm ent and inves tm ent property
(12.493)
(13.597)
180.
Net im pairm ent los ses on intangible as sets
(21.059)
(1.558)
(3.100)
190.
Other net operating incom e
48.555
54.797
108.723
200.
Operating expenses
(101.297)
(83.622)
(170.029)
210.
Profits (los ses ) of equity investm ents
(99.864)
47
62.127
230.
Net im pairm ent los ses on goodwill
(63.397)
-
-
240.
Profits on dispos al of inves tm ents
67
12
5.533
250.
Pre-tax profit (loss) from continuing operations
(181.566)
250.927
204.669
260.
Taxes on incom e for the period from continuing operations
392.483
(8.846)
(4.317)
270.
Post-tax profit from continuing operations
210.917
242.081
200.352
280.
Pos t-tax profit from dis continued operations
290.
Profit for the period/year
207
-
83.357
83.368
210.917
325.438
283.720
Statement of comprehensive income
1H 2011
Figures in thousands of euro
10.
PROFIT FOR THE PERIOD/YEAR
1H 2010
FY 2010
210.917
325.438
283.720
Other comprehensive income net of taxes
20.
Available-for-sale financial assets
45.435
(358.173)
(424.201)
30.
Property, equipment and investment property
-
-
-
40.
Intangible assets
-
-
-
50.
Foreign investment hedges
-
-
-
60.
Cash flow hedges
-
-
-
70.
Foreign currency differences
-
-
-
80.
Non current assets held for sale.
-
-
-
90.
Actuarial gains (losses) on defined benefit plans
563
194
(385)
100.
Share of fair value reserves of equity-accounted investees
110.
Total other comprehensive income (expense) net of taxes
120.
COMPREHENSIVE INCOME (EXPENSE) (item 10 + 110)
208
-
-
-
45.998
(357.979)
(424.586)
256.915
(32.541)
(140.866)
Statement of changes in equity to 30th June 2011
Changes January - June 2011
Allocation of prior year profit
Equity transactions
Restatement of
opening
balances
Balances as
at 1.1.2011
1.597.865
-
1.597.865
-
-
-
1.597.865
-
1.597.865
-
-
-
b) other shares
-
-
-
-
-
Share premiums
7.100.378
-
7.100.378
-
Reserves
1.572.878
-
1.572.878
1.340.246
-
1.340.246
232.632
-
Fair value reserves
-226.575
Equity instruments
Treasury shares
Balances as
at 31.12.2010
Extraordinary
distribution of
dividends
Change in
equity
instruments
Derivatives
on treasury
shares
605.829
-
-
-
-
-
-
2.203.694
605.829
-
-
-
-
-
-
2.203.694
-
-
-
-
-
-
-
-
-
-
-
300.737
-
-
-
-
-
-
7.401.115
186.326
-
-
-
-
-
-
-
-
-
1.759.204
186.326
-
-
-
-
-
-
-
-
-
1.526.572
232.632
-
-
-
-
-
-
-
-
-
-
232.632
-
-226.575
-
-
-
-
-
-
-
-
-
45.998
-180.577
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
283.720
-
283.720
-186.326
-97.394
-
-
-
-
-
-
-
210.917
210.917
10.328.266
-
10.328.266
-
-97.394
-
906.566
-
-
-
-
-
256.915
11.394.353
Reserves
Changes in
New share
reserves
issues
Figures in thousands of euro
Share capital:
a) ordinary shares
a) profit-related
b) other
Profit for the period
Equity
Equity as at
30.6.2011
Repurchase of
treasury
shares
Dividends and
other uses
209
Comprehensive income
Stock
options
Statement of changes in equity to 30th June 2010
Changes January - June 2010
Allocation of prior year profit
Equity transactions
Restatement of
opening
balances
Balances as
at 1.1.2010
1.597.865
-
1.597.865
-
-
-
-
-
-
-
-
-
-
1.597.865
1.597.865
-
1.597.865
-
-
-
-
-
-
-
-
-
-
1.597.865
b) other shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share premiums
7.100.378
-
7.100.378
-
-
-
-
-
-
-
-
-
-
7.100.378
Reserves
1.359.659
-
1.359.659
213.219
-
-
-
-
-
-
-
-
-
1.572.878
1.127.027
-
1.127.027
213.219
-
-
-
-
-
-
-
-
-
1.340.246
232.632
-
232.632
-
-
-
-
-
-
-
-
-
-
232.632
Fair value reserves
198.011
-
198.011
-
-
-
-
-
-
-
-
-
-357.979
-159.968
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Treasury shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
406.317
-
406.317
-213.219
-193.098
-
-
-
-
-
-
-
325.438
325.438
10.662.230
-
10.662.230
-
-193.098
-
-
-
-
-
-
-
-32.541
10.436.591
Balances as
at 31.12.2009
Dividends and
other uses
Reserves
Changes in
New share
reserves
issues
Figures in thousands of euro
Share capital:
a) ordinary shares
a) profit-related
b) other
Profit for the period
Equity
210
Repurchase of
treasury
shares
Extraordinary
distribution of
dividends
Change in
equity
instruments
Derivatives
on treasury
shares
Comprehensive income
Stock
options
Equity as at
30.6.2010
Statement of cash flows
(indirect method)
1H 2011
1H 2010
Figures in tho usands of euro
A. OPERATING ACTIVITIES
1. Ordinary activities
profit for the period (+/-)
gains/losses on financial assets held for trading and on financial assets/liabilities at fair value (+/-)
gains/losses on hedging activities (-/+)
-135.523
210.917
85.396
325.438
66.338
-10.494
-59.602
-3.540
-
net impairment losses on loans (+/-)
19.067
19.314
-
net impairment losses on property, equipment and investment property and intangible fixed assets (+/-)
net provisions for risks and charges and other expense/income (+/-)
33.552
556
15.154
762
-
outstanding taxes and duties
other adjustments (+/-)
-392.483
-62.976
14.546
-226.676
2. Cash flows generated/absorbed by financial assets
financial assets held for trading
-
financial assets at fair value
available-for-sale financial assets
-
loans to banks
loans to customers
other assets
3. Cash flows generated/absorbed by financial liabilities
due to banks
-
due to customers
-
securities issued
financial liabilities held for trading
other liabilities
Cash flows absorbed by operating activities
745.307
-7.801.934
1.803.300
-1.371.150
-326.022
-141.727
17.292
-6.361.159
-1.754.491
1.012.501
490.532
-481.436
151.746
-96.013
-1.561.326
7.612.257
-3.274.327
-1.024.625
-2.030.323
6.711.540
3.064.362
-336.557
2.288.515
360.308
9.821
282.217
-951.542
-104.281
182.677
281.145
5.000
176.775
281.105
902
40
B. INVESTING ACTIVITIES
1. Cash flows generated by
-
disposals of equity investments
dividends received on equity investments
-
disposals of held-to-maturity investments
disposals of property, equipment and investment property
-
disposals of intangible assets
2. Cash flows absorbed by
purchases of equity investments
-
purchases of held-to-maturity investments
purchases of property, equipment and investment property
purchases of intangible assets
-
-
-74.417
-7.052
-73.485
-
-6.594
-
-932
-
-458
-
purchases of lines of business
-
-
108.260
274.093
906.566
-97.394
-193.098
Cash flows generated/absorbed by funding activities
809.172
-193.098
CASH FLOWS ABSORBED DURING THE PERIOD
-34.110
-23.286
Cash flows generated by investing activities
C. FUNDING ACTIVITIES
issues/purchases of treasury shares
distribution of dividends and other uses
Reconciliation
1H 2011
Figures in tho usands of euro
1H 2010
Cash and cash equivalents at beginning of period
Total liquidity generated/absorbed
195.060
-34.110
215.835
-23.286
Cash and cash equivalents at the end of the period
160.950
192.549
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DE JURE AND DELEGATED POWERS
OF THE CORPORATE BODIES
(CONSOB - Italian securities market authority - recommendation No. 97001574 of 20th
February 1997)
In compliance with recommendation No. 97001574 issued by the Italian securities market authority
(CONSOB) on 20th February 1997, the de jure and delegated powers of the corporate bodies and General
Management of Unione di Banche Italiane Scpa. are set out below.
Supervisory Board
The Supervisory Board is composed of 23 members appointed by a Shareholders' Meeting chosen from
among those registered shareholders possessing the necessary qualities of integrity, professionalism and
independence required by the legislation in force. At least 15 of the members of the Supervisory Board must
be in possession of the requirements of professionalism required by the legislation currently in force for
persons who perform the functions of directors of banks.
In particular, at least three members of the Supervisory Board must be chosen from amongst persons
enrolled in the register of independent auditors who have exercised legally-required audit activities for a
period of not less than three years.
They remain in office for three financial years.
The Supervisory Board meets, upon notice by the Chairman, at least every 60 days; the meetings take
place alternating between the city of Bergamo and the city of Brescia and once a year in the city of Milan.
The meetings are considered as being validly held (i.e. a quorum is present) if they are attended by the
majority of the Board Members in office. The Board passes resolutions where the absolute majority of the
members attending the meeting (resolution quorum) casts a favourable vote, except for those cases where
the by-laws prescribe higher quorums.
The functions of the Supervisory Board are set out in article 46 of the by-laws.
The Chairman of the Supervisory Board convenes – on his own initiative and, in any event, in the cases
prescribed by Law or the by-laws – and chairs the meetings of the Board itself, setting the agendas,
taking account of the proposals formulated by the Senior Deputy Chairman and the other Deputy
Chairmen and ensuring that adequate information about the topics contained on the agenda are
provided to all the members of the Supervisory Board.
The Chairman of the Supervisory Board also performs the functions pursuant to Art. 47 of the by-laws
compatible with the exercise of the responsibilities of the Board.
The following internal committees have been formed from among the members of the Supervisory Board.
Appointments Committee
The Appointments Committee (members of which pursuant to Art. 49 of the by-laws include the
Chairman of the Supervisory Board with the functions of chairman and the Senior Deputy Chairman) is
composed of the following members of the Supervisory Board:
Corrado Faissola – as the Chairman
Giuseppe Calvi
Carlo Garavaglia
Mario Mazzoleni
Giovanni Bazoli
Alberto Folonari
The committee is governed by special regulations which determine its responsibilities and functioning. In
compliance with the by-laws these include the following:
- it identifies candidates for membership of the Supervisory Board to be proposed to the Supervisory
Board itself for submission to a Shareholders’ Meeting;
- it identifies candidates for membership of the Management Board to be proposed to the Supervisory
Board.
Remuneration Committee
The remuneration committee is composed of the following members of the Supervisory Board:
Alessandro Pedersoli – as the Chairman
Giuseppe Calvi
Giuseppe Lucchini
Toti S. Musumeci
Alberto Folonari
The committee is governed by special regulations which determine its duties and how it functions.
In detail, it formulates:
- proposals for decisions which the Supervisory Board must submit to the shareholders for approval
concerning: setting the remuneration of Members of the Supervisory Board; the remuneration of
Members of the Management Board; remuneration and incentive policies concerning corporate bodies
and company officers, employees and associate workers not bound to companies by employee
contracts;
- opinions on decisions concerning remuneration and incentives for the purposes of verifying the
compliance of these with remuneration policies set by the Supervisory Board.
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Internal Control Committee
The internal control committee is composed of the following members of the Supervisory Board, all of
whom are enrolled in the register of independent auditors:
Sergio Pivato – as the Chairman
Luigi Bellini
Mario Cattaneo
Alfredo Gusmini
Italo Lucchini
The committee is governed by special regulations which determine its duties and how it functions.
The committee shall perform supervisory functions pursuant to Art. 19 of Legislative Decree No. 39 of
27th January 2010 and, making use of the relevant organisational units of the Bank, may proceed at any
time, to carry out inspections and controls and it may also exchange information with the supervisory
bodies of Group member companies concerning management and control systems and the performance
of corporate activities.
At least one member of the Internal Control Committee shall attend meetings of the Management Board
in compliance with regulations in force.
Accounts Committee
The accounts committee is composed of the following members of the Supervisory Board:
Carlo Garavaglia – as the Chairman
Mario Cattaneo
Federico Manzoni
Sergio Orlandi
Its function is to support the Supervisory Board by performing assessments, furnishing advice and
submitting proposals in areas relating to the approval of annual reports and the examination of interim
financial statements. It expresses opinions designed to allow the Board itself to make decisions in a
knowledgeable and informed manner. More specifically, in fulfilling this task the committee satisfies the
information and critical requirements of the Supervisory Board by performing ex ante fact finding
investigations into account matters concerning the preparation of annual separate and consolidated
financial statements and the preparation of half year and quarterly interim financial statements,
monitoring the preparation of accounting documents on the basis of a progressive examination of data
as it is acquired and of the relative information as it becomes available.
Management Board
The Management Board is composed of 11 Members appointed by the Supervisory Board.
The members of the Management Board shall remain in office for three financial years. Their term of
office shall expire on the date of the Supervisory Board meeting convened to approve the financial
statements relating to their last year in office. They remain in office in any event until a new Management
Board is appointed in accordance with article 46, letter a) of the by-laws and they may be re-appointed.
The members of the Supervisory Board cannot be appointed as members of the Management Board as
long as they continue to hold that office.
The following rules apply:
(i) at least one of the members of the Management Board must hold the requirements of independence
pursuant to Art. 148, paragraph three of Legislative Decree No. 58 of 24th February 1998;
(ii) at least the majority of the members must have at least three years experience in management and/or
professional activities in financial and/or banking and/or insurance companies in Italy or abroad.
The Management Board meets at least once a month and also at any time the Chairman considers it
appropriate or when a request is made by five members. Meetings are held alternating between the city of
Bergamo and the city of Brescia and once a year in the city of Milan.
The functions of the Management Board are specified in Article 37 of the by-laws.
The Chairman of the Management Board, who acts as the legally authorised representative and
authorised signatory of the Bank, performs the tasks that are typically carried out by the chairman of a
company’s management body, which he performs by liaising appropriately with the other by-law
regulated bodies.
The Chairman of the Management Board exercises powers pursuant to article 39 of the by-laws.
The powers of the Chief Executive Officer are assigned and revoked by the Management Board.
The Management Board, in compliance with the by-laws, has conferred the following powers on the Chief
Executive Officer:
- to supervise the management of the Bank and of the Group;
- to supervise the strategic co-ordination and the operational control of the Bank and the Group;
214
-
to supervise the implementation of the organisational, administrative and accounting structure
decided by the Management Board and approved by the Supervisory Board;
- to determine working directives for the General Management;
- to oversee the integration of the Group;
- to submit proposals to the Management Board for the formulation of the general programmes and
strategic policies of the Bank and the Group and to draw up the business and/or financial plans and
budgets of the Bank and the Group to be submitted for the approval of the Supervisory Board and to
supervise implementation through the general management;
- to propose budgetary policy and policies on the optimisation of the use and enhancement of human
resources and to submit financial statements and periodic financial reports to the Management Board
for approval;
- to propose appointments to the senior operational and executive management of the Group to the
Management Board, in agreement with the Chairman and Deputy Chairman of the Management
Board and after consultation with the General Manager;
- to promote integrated risk management;
- to make extraordinary requests for inspections and investigations to the internal control function
through the Internal Control Committee.
In accordance with the by-laws, the Chief Executive Officer reports quarterly to the Management Board
on foreseeable developments and on the most important transactions performed by the Bank and its
subsidiaries. The Chief Executive Officer reports monthly to the Management Board on the results of the
Bank, the main subsidiaries, and the Group as a whole.
Furthermore, the Management Board has assigned duties to the Chief Executive Officer pursuant to Art.
43 bis of the by-laws, supported of the General Manager, with responsibility for all that which concerns
the overall architecture of internal control systems.
UBI Banca has adopted its own model of organisation, management and control, which complies with
Legislative Decree No. 231/2001 and the relative legislation and regulations that apply and is based on
principals that are already rooted in its governance culture and on the recommendations contained in
the ABI (Italian Banking Association) Guidelines.
In compliance with Art. 6, paragraph 1, letter b) of Legislative Decree No. 231/2001 and in view of the
recommendations of the most representative business associations representing banks and of the Italian
Banking Association above all, UBI Banca has formed its Supervisory Body as a collegial body
composed of the following:
- two members of the Management Board;
- the Chief of the Legal Affairs and Litigation Area;
- the Chief of the Compliance Area;
- an external professional, with the necessary specific expertise.
The Supervisory Body reports to the corporate bodies on the adoption and effective implementation of the
model of organisation, management and control, on the functioning of that model and on supervision of
updates to the model. It employs two separate lines of reporting to achieve this. The first is on a
continuous basis directly to the Chief Executive Officer and the General Manager and the second
consists of periodic reporting to the Management Board and the Supervisory Board.
UBI Banca, as the Parent, informs subsidiaries of the policies it has set in relation to the prevention of
crimes pursuant to Legislative Decree No. 231/2001 and recommends general criteria which subsidiaries
may follow.
* * *
As concerns the General Management, the by-laws provide for the appointment, by the Management
Board, of a General Manager and, if nominated, a Joint General Manager as well as one or more Deputy
General Managers, in accordance with the organisation chart established by the Management Board
itself, which will determine their powers.
The Management Board, in compliance with the by-laws, has appointed Graziano Caldiani to the position
of General Manager with the following functions and responsibilities:
- chief operating officer;
- chief of personnel;
- ensuring, as a rule (unless otherwise specified by the competent management bodies), that the
resolutions of the Management Board and of the Chief Executive Officer are implemented;
- managing day-to-day business in compliance with the policies set by management bodies;
- attending, with an advisory vote, the meetings of the Management Board;
- supervising the strategic co-ordination of the Bank and the Group.
The Management Board has appointed, with the favourable opinion of the Supervisory Board, Elisabetta
Stegher – the current Chief of the Bank's Administration and Tax Macro Area – as the Officer
responsible for preparing company accounting documents pursuant to Article 154-bis of the
Consolidated Finance Act.
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Glossary
ABS (Asset Backed Securities)
Financial instruments issued against securitisations (cf. definition) on which the yield and redemption
are guaranteed by the assets of the originator (cf. definition), which are earmarked exclusively to satisfy
the rights incorporated in the financial instruments themselves. Technically debt securities are issued by
a special purpose entity (SPE - cf. definition). The portfolio underlying the securitisation may consist of
mortgage loans, other loans, bonds, commercial paper, loans resulting from credit cards or even other
assets. Depending on the type of underlying asset, ABSs may be classified as follows:
- credit loan obligation CLO (the portfolio consists of bank loans);
- collateralised bond obligation, CBO (the portfolio consists of bonds);
- collateralised debt obligation, CDO (the portfolio consists of bonds, debt instruments and securities in
general);
- residential mortgage backed security RMBS (the portfolio consists of mortgage loans on residential
properties).
- commercial mortgage backed security, CMBS (the portfolio consists of mortgage loans on commercial
properties).
Acquisition finance
Finance for company acquisition operations
ALM (Asset & Liability Management)
Integrated management of assets and liabilities designed to allocate resources in such a way as to
optimise the risk to yield ratio.
Alternative Dispute Resolution (ADR)
This term refers to a set of methods, tools and techniques for resolving disputes out-of-court, where one
or both parties rely on a third impartial party to resolve a dispute without resort to the courts.
Alternative Investment
A ranges of forms of investment which includes, amongst other things, private equity investments (cf.
definition) and investments in hedge funds (cf. definition).
Asset Management
Management of financial investments belonging to others.
ATM (Automated Teller Machine)
Automatic device used by customers to perform operations such as withdrawing cash, paying in cash or
cheques, requesting information on their accounts, paying utility bills, recharging telephones, etc..
Customers operate the machine by inserting a card and typing in a personal identification number.
Audit
A process for the control of corporate activities and accounts performed by both internal units (internal
audit – cf. definition) and external companies (external audit).
Backtesting
Retrospective analyses designed to test the reliability of measurements of risk attached to the positions of
asset portfolios.
Banc assurance
Term used to refer to the sale of traditional insurance products through a bank’s branch network.
Banking book
This usually identifies that part of a securities portfolio, or in any case financial instruments in general,
destined to “ownership” activities.
Banking-Financial Conciliator
The “Banking-Financial Conciliator – Association for resolving banking, financial and corporate disputes –
ADR” is an initiative promoted with the support of the Italian Banking Association by the ten largest banking
groups, including the UBI Banca Group, to provide customers with a service to resolve disputes rapidly
and efficiently as an alternative to going through the courts (ADR stands for Alternative Dispute
Resolution – cf. definition).
The following services are provided:
Conciliation: an attempt to resolve a dispute by appointing an independent expert (the conciliator) to
assist in reaching an agreement between the parties in order to avoid going through the courts. The
agreement reached is binding between the parties and may be approved by the courts, thereby
becoming enforceable. The conciliation service provided by the Banking-Financial Conciliator is
217
performed by the “banking conciliation board”, enrolled in the register of bodies appointed to manage
attempts at conciliation pursuant to Art. 38 of Legislative Decree No. 5 of 17th January 2003;
Arbitration: procedure whereby parties submit a dispute to an arbitrator or board of arbitration,
acknowledging them as empowered to decide on the question;
Ombudsman Giurì Bancario: a body formed in 1993 and located at the Italian Banking Association to
which customers, dissatisfied with the decisions of the complaints departments of their banks or who
have not received replies to their complaints within prescribed time limits, might appeal without
charge. Responsibility for running the ombudsman service was transferred to the Banking-Financial
Conciliator on 1st June 2007.
Disputes concerning investment services may be submitted to it to establish rights, obligations and
powers, independently of the amount on the account in question. If the request concerns the payment
of a sum of money the matter falls within the jurisdiction of the ombudsman if the amount requested
is not greater than 100.000 euro. The ombudsman decides within 90 days of the date of receiving the
request for intervention. Recourse to the ombudsman does not preclude a customer’s right to apply
to the courts, to a conciliation board or to a board of arbitration at any time, while the decision is
binding for the intermediary.
Basis point
One hundredth of a percentage point (0,01%).
Basis swap
Contract which involves an exchange between two counterparties of payments linked to variable interest
rates based on different indices.
Basel 2
New international agreement on capital which identifies the guidelines for calculating the minimum
capital requirements for banks1.
The new prudential regulations are based on “three pillars”:
first Pillar (Pillar 1): while it maintains the objective of a level of capitalisation equal to 8% of risk
weighted exposures, a new system of rules has been defined for measuring risks typical of banking
and financial activities (credit, counterparty, market and operational risks), which introduces
alternative methods of calculation characterised by different levels of complexity, with the possibility
of using internally developed rating systems, subject to prior authorisation from the Supervisory
Authority.
second pillar (Pillar 2): this requires banks to equip themselves with processes and instruments to
calculate their total internal capital adequacy requirement (Internal Capital Adequacy Assessment
Process - ICAAP) to meet each type of risk, which may even be different from those covered by the
total capital requirement (first pillar). The Supervisory Authority is responsible for reviewing the
ICAAP process, for formulating an overall opinion and, where necessary, for activating appropriate
corrective action;
third pillar (Pillar 3): this introduces the obligation to publish information on capital adequacy,
exposure to risks and the general characteristics of systems designed to identify, measure and
manage these risks.
Benchmark
A standard for the measurement of financial investments: it may consist of well known market indices or
of others that are more suited to the risk-yield profile.
Best practice
Conduct that is comparable with the most significant and/or best level achieved in a given field or
profession.
1 The first version of the agreement, known as Basel 1, dates back to 1988 and was signed in that Swiss city where
the Bank for International Settlements (BIS) has its headquarters, an organisation which has been promoting
monetary and financial co-operation on a worldwide scale since 1930 (it is known in Italy as Banca per i regolamenti
Internazionali - BRI). The Basel Committee operates within it, formed by the governors of the central banks of the
ten most industrialised countries (G10) at the end of 1974, and it is this that has formulated the agreements or
“accords”. The following are currently represented on it: Belgium, Canada, France, Germany, Holland, Italy, Japan,
Luxembourg, Spain, Sweden, Switzerland, United Kingdom, United States.
The Basel Committee has no supranational authority: the member countries may decide to comply with the accords
but they are not bound to accept the decisions of the committee. The compulsory nature of Basel 2 for EU countries
is in fact the result of a European Parliament directive which adopted it in September 2005.
The first Basel accord, signed by the central authorities of more than 100 countries established the obligation for
the banks participating in it to set aside a share of their capital amounting to 8% of the loans disbursed
independently of an assessment of the reliability of the companies that had requested them, using rating
procedures.
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Business risk
The risk of adverse and unexpected changes in profits and margins with respect to forecasts, connected
with volatility in volumes of business due to competitive pressures and market conditions.
CAGR – Compound Annual Growth Rate
The annual growth rate applied to an investment or other assets for a period of several years. The
formula for calculating CAGR is [(present value/base value)^(1/number of years)-1].
Capital allocation
Process by which decisions are made on how to distribute investments among different types of financial
asset (e.g. bonds, equities and liquidity). Capital allocation decisions are determined by the need to
optimise the risk/return ratio in relation to the time horizon and the expectations of the investor.
Capitalisation (insurance) certificates
Capitalisation contracts fall within the field of application of the legislation on direct life insurance
contained in Legislative Decree No. 174 of 17th March 1995. As defined in Art. 40 of that legislative
decree, these are contracts with which insurance companies agree to pay capital equal to the premium
paid, revalued periodically on the basis of the return on separate internal management of financial assets
or, if higher, a minimum guaranteed return, as the consideration for the payment of single or periodical
premiums. They cannot have a life of less than five years and the policyholder has the right to cash-in
the policy from the beginning of the second year onwards. In accordance with Art. 31 of the cited
Legislative Decree No. 174, financial assets used to hedge technical reserves are reserved exclusively to
comply with obligations connected with capitalisation contracts (separate management). Consequently, if
the insurance company is placed in liquidation (Art. 67), the beneficiaries of those policies have title as
creditors with special privileges.
Capitalisation policies
See the item “Capitalisation (insurance) certificates”.
Captive
Term generally used to refer to distribution networks or companies that operate exclusively with
customers belonging to the company or group in question.
Cassa di Compensazione e Garanzia (CCG)
A joint stock company which performs the functions of a central counterparty clearing house on spot
equity and derivative markets operated by Borsa Italiana and also on the electronic stock market for
Government securities.
Commercial paper
Short term securities issued to collect funds from third party purchasers as an alternative to other forms
of debt.
Compliance risk
The risk of incurring legal or administrative penalties, substantial financial losses or damage to
reputation as a consequence of violations of laws and external regulations or internal regulations (bylaws, codes of conduct and voluntary codes);
Concentration risk
Risk resulting from exposures in the banking book to counterparties, groups of counterparties in the
same economic sector or counterparties which carry on the same business or belong to the same
geographical area. Concentration risk can be divided into two types:
- single name concentration risk;
- sector concentration risk.
Conduit
See the item SPE
Consumer finance
Loans granted to private individuals for the consumption of goods and services.
Core tier 1 ratio
The ratio between the tier one capital (cf. definition) net of ineligible instruments (preference shares,
savings shares and privileged shares) and the total risk weighted assets (cf. definition).
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Corporate governance
Corporate governance defines the assignment of rights and responsibilities to the participants in the life
of a company in relation to the distribution of duties, responsibility and decision making powers by
means of the composition and functioning of internal and external corporate bodies. One fundamental
objective of corporate governance is to create maximum value for shareholders, which, in the medium to
long term, is also advantageous for other stakeholders, such as customers, suppliers, employees,
creditors, consumers and the community.
Cost income ratio
A performance indicator defined as the ratio of operating expenses to gross income.
Covered bonds
Special bank bonds which, in addition to the guarantee given by the issuing bank, also offer as security a
portfolio of mortgage or other high credit quality loans transferred for that purpose to a “special purpose
entity”2.
Banks which intend to issue covered bonds must have assets of not less than 500 million euro and a
total capital ratio at consolidated level of not less than 9%. The share of the assets potentially useable as
security that are transferred may not exceed the following limits, calculated on the basis of the level of
capitalisation:
- 25% in cases of a capital ratio ≥ 9% and > 10% with tier 1 ratio ≥ 6%;
- 60% in cases of a capital ratio ≥10% and > 11% with tier 1 ratio ≥ 6,5%;
- no limit in cases of a capital ratio ≥11% with tier 1 ratio ≥ 7%.
CPI (Credit Protection Insurance)
Credit protection insurance policies can be taken out by debtors of financial loans (personal loans,
mortgages and credit card debt) to enable them (as policyholders) to pay the residual debt or a number of
repayment instalments if temporary or permanent negative events occur (involuntary loss of employment,
illness, accidents, permanent invalidity or death). These policies can also be linked to loans to businesses
with insurance cover for events which might affect shareholders, directors or key figures in a business.
Credit crunch
Significant fall (or sudden tightening of conditions) in the supply of credit to businesses at the end of a
prolonged expansionary period, capable of worsening the successive recessionary period.
Credit Default Swap
Contract by which one party transfers, for a payment of a periodical premium to the other, a credit risk
attached to a loan or a security when a determined event occurs linked to the deterioration in the
solvency of the debtor.
Credit risk
The risk of incurring losses resulting from the default of a counterparty with whom a position of credit
exposure exists.
Default
A declared condition of being unable to honour debts and/or payment of the relative interest.
Duration
When applied to a bond or bond portfolio, it is an indicator usually calculated as the average weighted
maturities of the interest and capital payments associated with the instrument.
EAD (Exposure At Default)
Estimate of the future value of a position at the time of default (cf. definition) of the relative debtor.
European Banking Authority (EBA)
Composed of representatives of the banking supervisory authorities of European Union member states,
the EBA commenced operations on 1st January 2011, taking over the duties and responsibilities of the
Committee of European Banking Supervisors (CEBS), which ceased to exist on that date. The EBA
oversees the stability of the banking system, transparency on markets and for financial products and the
protection of depositors and investors.
2 Covered bonds issued by banks are regulated in Italy by Law No. 130 of 30th April 1999 (Art. 7-bis). The way in
which they work is for a bank to transfer high quality credit assets (mortgage loans and loans to public
administrations) to a special purpose entity and for a bank, even a different bank from the transferor, to issue
bonds guaranteed by the special purpose entity with the collateral of the assets acquired which constitute
segregated assets. The details for the application of the regulations are contained in Ministerial Regulation No.310 of
14th December 2006 and in the supervisory instructions of the Bank of Italy of 15th May 2007.
220
European Financial Stabilisation Mechanism (EFSM)
An instrument designed to provide temporary financial assistance to euro area countries in difficulty, the
result of a decision taken by the Council of the European Union taken on 10th May 2010. Administered
by the European Commission on behalf of the EU, the EFSM, which will be operational until June 2013,
may grant loans up to a maximum of 60 billion euro. The funding transactions are backed by the EU
budget.
European Financial Stability Facility (EFSF)
An instrument designed to provide temporary financial assistance to euro area countries in difficulty, the
result of a decision taken by the Council of the European Union taken on 10th May 2010. Formed with
the legal status of a joint stock company with registered address in Luxembourg, the EFSF may grant
financing from a facility of 440 billion euro. The funding is provided by the placement of bonds backed by
guarantees provided by countries in the euro area in proportion to their respective percentage stakes
held in the share capital of the ECB. From 1st July 2013 the EFSF will be replaced by the European
Stability Mechanism (ESM), a permanent body for crisis management, the creation of which was
decided by the European Council on 28th-29th October 2010.
European Insurance and Occupational Pensions Authority (EIOPA)
Composed of representatives of the insurance and pension supervisory authorities of European Union
member states, the EIOPA commenced operations on 1st January 2011, taking over the duties and
responsibilities of the Committee of European Insurance and Occupational Pensions Supervisors
(CEIOPS), which ceased to exist on that date. The EIOPA safeguards the stability of the financial system,
transparency on markets and for financial products and the protection of insurance policy-holders and
participants in and beneficiaries of pension schemes.
e-MID (interbank deposits market)
Market for trading in interbank deposits on an electronic platform managed by e-MID Sim Spa.
Eonia (Euro overnight index average)
Interest rate calculated as the weighted average of overnight interest rates applied for all unsecured
financing transactions in the interbank market by the reference banks.
European Securities and Markets Authority (ESMA)
Composed of representatives of the supervisory authorities of participants in the financial markets of
European Union member states, the ESMA commenced operations on 1st January 2011, taking over the
duties and responsibilities of the Committee of European Securities Regulators (CESR), which ceased to
exist on that date. The ESMA oversees the stability of the financial system, transparency on markets and
for financial products and the protection of investors.
Equity risk
The risk of losses incurred in the equity investments portfolio.
Euribor (Euro interbank offered rate)
Interbank interest rate at which major banks exchange deposits in euro with varying maturities. It is
calculated each day as the simple average of the rates quoted at 11.00 a.m. on a sample of banks with a
high credit rating selected periodically by the European Banking Federation. Various floating rate loan
contracts are linked to the Euribor rate (e.g. home mortgages).
Exchange Traded Fund (ETF)
A particular type of investment fund that is traded on stock markets like a share. Its sole investment
objective is to track the index to which it is benchmarked by completely passive management. An ETF
has the characteristics of both a fund and a share, allowing investors to exploit the strong points of both
instruments with the diversification and reduction of risk provided by funds, but guaranteeing the
flexibility and transparency of information provided by trading in real time as a share at the same time.
Exchange Traded Commodities (ETC)
Financial instruments which represent the investment made by the issuer either in commodities (termed
physically-backed ETCs in this case) or in commodities futures. The price of the ETC is therefore either
directly or indirectly linked to the performance of the underlying assets. Like ETFs (cf. definition), ETCs
are traded on stock markets like shares, passively tracking the performance of commodities or of the
benchmarks for them.
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Factoring
Contract for the sale, either without recourse (with the credit risk attaching to the purchaser) or with
recourse (the credit risk remains with the seller), of trade accounts receivable to banks or specialist
companies, for management and cash receipt purposes, to which a loan to the seller may be associated.
Fair value
The amount of consideration for which an asset can be exchanged, or a liability settled under free market
conditions, between knowledgeable and willing parties. This is often the same as the market price. On
the basis of IAS (cf. definition) banks apply fair value, when measuring the value of financial instruments
(assets and liabilities) held for trading, available for sale and derivatives and they may also use it to
measure the value of equity investments and property, plant and equipment and intangible assets (with
different impacts on the income statement for the different assets considered).
Financial Banking Arbitrator
The Financial Banking Arbitrator (FBA) is a body for the out-of-court settlement of disputes pursuant to
the Art. 128-bis of the Consolidated Banking Act, introduced by the Law on Savings (Law n° 262/2005).
The organisation and functioning of the FBA are regulated by the “Instructions concerning systems for
the out-of-court settlement of disputes regarding banking and financial transactions and services” issued
by the Bank of Italy on 18th June 2009.
Participation in the scheme is compulsory for all banks and other financial intermediaries.
The FBA has been operational since 15th October 2009. Disputes concerning the establishment of rights,
obligations and powers may be submitted to it, independently of the amount on the account in question.
If the request of the applicant concerns the payment of a sum for any reason whatsoever, the dispute
falls within the jurisdiction of the FBA on condition that the amount requested is not greater than
100.000 euro.
Disputes concerning services and activities relating to investments and the sale of financial products and
transactions and services that are components of financial products are excluded. Application may
currently be made for these disputes to the Ombudsman Giurì Bancario of the Banking-Financial
Conciliator (cf. definition) and in future to the Chamber of Conciliation and Arbitration soon to be created
at the CONSOB (Italian securities market authority)3.
Completion of the complaints procedures of the intermediary in question constitutes a preliminary and
necessary condition for applying to the FBA, which may be performed in those cases where the outcome
of the complaint made is unsatisfactory or when no reply has been made within thirty days of receipt by
the bank.
Applications are free of charge except for a payment of 20 euro as a contribution to expenses for the
procedure, which must be refunded by the bank to the applicant if the claim is either fully or partially
successful.
As opposed to the conciliation procedure, which is designed to reach an agreement between the parties,
the BFA makes a decision on claims received by means of a special board of arbitration, while the parties
retain the right to apply to the courts or to any other means provided for by law to protect their interests.
The BFA consists of an arbitration body divided into three boards (Milan, Rome and Naples) and of a
secretariat service provided by the Bank of Italy. Each arbitration board is composed of five members,
three of whom (inclusive of the president) designated by the Bank of Italy one by the associations of the
intermediaries and one by associations representing customers.
Floor
Derivative contract on interest rates, traded outside regulated markets, with which a lower limit is set on
the reduction of the lending rate.
FRA (Forward Rate Agreement)
Contract whereby the parties agree to receive (pay) at the end of the contract, the difference between the
amount calculated by applying a set interest rate and the amount obtained on the basis of the level of a
reference rate chosen beforehand by the parties.
Funding
Acquisition in various forms of the funds required for the activities of a company or for particular
financial operations.
Futures
Standardised forward contracts with which the parties agree to exchange securities or goods at a set
price on a future date. These contracts are usually traded on organised markets where the execution of
3 With Resolution No. 16763 of 29th December 2008 the CONSOB (Italian securities market authority) approved the regulations to
implement Legislative Decree No. 179 of 8th October 2007, concerning the Chamber of Conciliation and Arbitration and the relative
procedures. The chamber will become fully operational once the necessary requirements have been met. All disputes may be
submitted to it by investors without limit on the amount, on condition that a complaint has been made to the intermediary.
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the contract is guaranteed. As opposed to options (cf. definition), which grant the right but not the
obligation to buy, futures contracts oblige the two parties to sell or buy.
Geographical disaster recovery
A set of technical and organisational procedures set in motion when a catastrophe occurs which causes a
data processing platform to completely shut down. The objective is to reactivate EDP functions that are
vital to the company at a secondary (recovery) site. A disaster recovery system is defined as
“geographical” when it is located at least 50 km from the original system. The primary objective is to
mitigate risk arising from disaster events with a potential impact on an entire metropolitan area (i.e.
earthquakes, floods, military intervention, etc.) as prescribed by international safety standards.
Goodwill
This is the amount paid for the acquisition of an interest in a company which is the difference between
the cost and the corresponding proportion of the equity, for that part that is not attributed to the assets
of the company acquired.
Hedge fund
A mutual investment fund which has the possibility (denied to traditional fund managers) of using
sophisticated investment instruments or strategies, such as short selling, derivatives (options or futures,
even up to more than 100% of the assets), hedging (hedging the portfolio against market volatility by
short selling and the use of derivatives) and financial leverage (borrowing to then invest the money
borrowed).
IBAN (International Bank Account Number)
International standard used to identify bank accounts. The use of the IBAN code – composed of 27
characters – has been compulsory since 1st July 2008, not just for foreign payments but also for those
made in Italy.
IAS/IFRS
International accounting standards (IAS) set by the International Accounting Standards Board (IASB), a
private sector international body set up in April 2001, to which the accounting professions of major
countries belong, while the European Union, the IOSC (International Organisation of Securities
Commissions) and the Basel Committee participate as observers. This body has taken over from the
International Accounting Standards Committee (IASC), formed in 1973 to promote the harmonisation of
rules for preparing company accounts. When the IASC was transformed into the IASB, one decision
taken was to term the new accounting standards “International Financial Reporting Standards” (IFRS).
An effort is currently being made at international level to harmonise IAS/IFRS with US Gaap (cf.
definition).
Identity access management
A technical and organisational method used to manage and monitor the entire life cycle of granting,
managing and revoking access privileges to ICT resources and therefore to company information by each
user.
Impaired loans
Loans at their face value to persons in situations of objective difficulty where, however, it is felt the
difficulties can be overcome in an appropriate period of time.
Impairment
According to IAS (cf. definition), this is the loss of value in an asset, recognised when the carrying value
is greater than the recoverable value, which is to say the amount that could be obtained from selling it or
using it in business. Impairment tests must be performed on all assets except for those recognised at fair
value for which any losses (or gains) in value are implicit.
Index linked
A life policy, the performance of which is linked to that of a reference parameter which could be a share
index, a basket of securities or another indicator.
Interest rate risk
Current or future risk of a change in net interest income and in the economic value of the Bank following
unexpected changes in interest rates which have an impact on the banking book.
Internal audit
Function to which internal audit activity (cf. definition) is attributed institutionally.
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Investment banking
Investment banking is a highly specialisted financial sector which assists companies and governments to
issue securities and more generally to obtain funds on capital markets.
Investment grade
High quality bonds which have received a medium-to-high rating (cf. definition) (e.g. not less than BBB
on the Standard & Poor’s scale).
Investment property
Property held for the purpose of receiving an income from it or to benefit from an increase in its value.
Investor
Entity, other than the originator (cf. definition) and sponsor (cf. definition), which holds a position in a
securitisation (cf. definition).
IRB (Internal Rating Based)
An internal rating (cf. definition) approach under Basel 2 (cf. definition), divided into basic and advanced
methods. The advanced approach may be used only by banks which meet the strictest minimum
requirements and it allows all estimates of the inputs used for measuring credit risk (PD, LGD, EAD,
Maturity – cf. definitions) to be performed internally. With the basic approach, on the other hand, only
PD is estimated by banks.
Joint venture
Agreement between two or more companies to perform a determined economic activity usually by forming
a joint stock company.
Junior
In a securitisation (cf. definition), it is the most subordinated tranche of the securities issued, which is
the first to meet the losses that may be incurred in the recovery of the underlying assets.
Leasing
Contract by which one party (lessor) grants the use of an asset to the other party (lessee) for a
determined period of time. The asset is purchased by or constructed for the lessor on the instructions
and as selected by the lessee, where the lessee has the right to purchase the ownership of the asset
under preset conditions at the end of the leasing contract.
LGD (Loss Given Default)
Estimated rate of loss if a debtor defaults (cf. definition).
Libor (London interbank offered rate)
Interest rate calculated for each maturity, as the arithmetic average of the reported rates between the
middle two quartiles of the interest rates at which a group of banks belonging to the British Bankers
Association (BBA) are willing to make deposits in major currencies with primary customers.
Liquidity risk
Risk of the failure to meet payment obligations which can be caused either by an inability to raise funds
or by raising them at higher than market costs (funding liquidity risk), or the presence of restrictions on
the ability to sell assets (market liquidity risk) with losses incurred on capital account. Structural
liquidity risk is defined as the risk resulting from inadequate matching of maturities for assets and
liabilities.
Lower Tier 2
Subordinated liabilities which form part of the supplementary or tier 2 capital (cf definition) on condition
that the contract governing their issue expressly stipulates that:
a) in the case of liquidation of the issuer the debt will only be repaid after all the other higher ranking
creditors have been satisfied;
b) the duration of the contract is equal to or longer than 5 years and, if a maturity date is not set,
advance notice of at least 5 years must be given prior to redemption;
c) early repayment of the debt may only take place on the initiative of the issuer and must be
authorised by the Bank of Italy.
The amount of subordinated bonds admissible as supplementary capital is reduced by one fifth each year
over the five years prior to the maturity date of each bond in the absence of an amortisation plan which
has similar effects.
224
Mark down
Difference between the average borrowing rate for the direct forms of funding employed and the Euribor
rate.
Mark to market
Valuation of a securities portfolio and of other financial instruments on the basis of market prices.
Mark up
Difference between the average lending rate for the forms of lending employed and the Euribor rate.
Market risk
The risk of changes in the market value of positions in the trading portfolio for supervisory purposes due
to unexpected changes in market conditions and creditworthiness.
It also includes risks resulting from unexpected changes in foreign exchange rates and commodities
prices which relate to all financial statements.
Maturity
Residual life of an exposure, calculated according to rules of prudence.
Merchant banking
This activity includes: the acquisition of securities, equities or debt, of corporate customers for
subsequent sale on the market; the acquisition of equity interests of a more permanent nature, but again
with the objective of subsequent sale; advisory activities to companies for mergers and acquisitions or
restructuring.
Mezzanine
In a securitisation (cf. definition) it is the tranche with an intermediate level of subordination between
that of the junior (cf. definition) tranche and that of the senior (cf. definition) tranche.
New MIC (New collateralised interbank market)
A market segment of the e-MID platform (cf. definition) in which interbank deposits are traded on an
anonymous basis and guaranteed against credit risk, which started operating on 11th October 2010 as a
development of the MIC (collateralised interbank market), which ceased to operate on that same date.
The MIC (collateralised interbank market) was introduced on 2nd February 2009 by the Bank of Italy in
order to encourage a recovery in interbank business and greater variety in the maturities of the
contracts. As compared to the MIC, apart from the changeover in the management of collateral from the
Bank of Italy to the Cassa di Compensazione e Garanzia (cf. definition), longer maturities are traded on
the New MIC, trading hours are longer and limits are set on the securities accepted as collateral.
Monoline
Insurance companies with one single line of business, which is financial insurance. Their activities
include the insurance of bonds (ABS and MBS) for which the underlying assets consist of personal loans
and property mortgage loans. The insurance guarantees the redemption of the bond by assuming direct
responsibility for the risk of debtor insolvency in exchange for a commission.
Non performing
A term which refers generally to loans with irregularities in the repayments.
Non performing loans
Loans to persons or entities that are either insolvent (even if not declared as such in the courts) or in
equivalent circumstances.
NUTS (Nomenclature of Territorial Units for Statistics in Italy)
Nomenclature used for statistics purposes at European level (Eurostat), which involves the following
division.
Northern Italy:
Piedmont, Valle d’Aosta, Liguria, Lombardy, Trentino Alto Adige, Veneto, Friuli
Venezia Giulia, Emilia Romagna;
Central Italy:
Tuscany, Umbria, Marches, Latium;
Southern Italy:
Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sicily, Sardinia.
OICR (collective investment instrument)
This term includes OICVMs (cf. definition) and other mutual investment funds (property mutual
investment funds, closed mutual investment funds).
OICVM (collective equity security investment organisations)
The term includes open, Italian and foreign mutual investment funds and investment companies with
variable capital (Sicavs).
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Operational risk
The risk of loss resulting from inadequate or failed procedures, human resources and internal systems or
from exogenous events. This type of risk includes losses resulting from fraud, human error, business
disruption, system failure, non performance of contracts and natural disasters. It includes legal risk.
Options
These consist of the right, but not a commitment, acquired with the payment of a premium, to purchase
(call option) or to sell (put option) a financial instrument at a determined price (strike price) before
(American option) or on (European option) a future date.
Originator
Entity which transfers its portfolio of deferred liquidity assets to an SPE (cf. definition) for it to be
securitised.
OTC (Over The Counter)
Transactions concluded directly between parties without the use of a regulated market.
OTC derivatives traded with customers
Activity to support customers in managing financial risks and more specifically in managing risks
resulting from fluctuations in exchange rates, interest rates and commodity (raw materials) prices.
Past due
Exposures that are past due and/or continuously in arrears for more than 180 days according to the
definition contained in the supervisory instructions in force.
Payout ratio
The percentage of the net profit distributed by a company to its shareholders.
PD (Probability of Default)
The probability that a debtor will reach a default (cf. definition) position over an annual time horizon.
Plain vanilla swap
Interest rate swap (cf. definition) in which one counterparty receives a variable payment linked to the
LIBOR (generally the six month LIBOR) and pays a fixed rate to the other counterparty, obtained by
adding a spread to the yield on a specified type of government security.
POS terminal (point of sale terminals)
Automatic device for the payment of goods or services at suppliers premises using credit, debit or prepaid
cards.
Preference shares
Innovative equity instruments normally issued by foreign subsidiaries and included in the tier one
capital if they possess characteristics which will guarantee the capital stability of banks.
Price sensitive
A term which generally refers to information or data that is not in the public domain, which if disclosed
would have a marked effect on the price of a security.
Private equity
Activities involving the acquisition of equity interests and the subsequent placement with specific
counterparties without offering them for sale to the public.
Project finance
Financing of projects on the basis of forecasts of the cash flows that will be generated by them. As
opposed to the way in which risks are analysed with ordinary lending, with the project financing
technique, not only are the expected cash flows analysed, but specific factors are also examined such as
the technical aspects of the project, the suitability of the sponsors for carrying it out and the markets on
which the products will be sold.
Rating
A rating of the quality of a company or its issues of debt securities on the basis of the soundness of the
company’s finances and its prospects.
Reputation risk
The risk of incurring losses resulting from a negative perception of the image of the Bank by customers,
counterparties, shareholders of the Bank, investors, the supervisory authority or other stakeholders.
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Residual risk
The risk of incurring losses resulting from the unforeseen ineffectiveness of established methods of
mitigating risk used by the Bank (e.g. mortgage collateral).
Restructured loan
Position for which a Bank has agreed a longer period of repayment for a debtor, renegotiating the
exposure at lower than market rates.
Risk free rate
Rate of interest on a risk free asset. In practice it is used to refer to the interest rate on short term
government securities even if they cannot be considered risk free.
Risks resulting from securitisations
The risk that the underlying economic substance of a securitisation is not fully reflected in decisions
made to measure and manage risk.
Risk weighted assets (RWA)
On- and off-statement of financial position assets classified and weighted on the basis of risk coefficients,
in accordance with banking regulations issued by the supervisory authority for the calculation of capital
ratios.
Securitisation
Operation to sell debts or other financial assets that are not negotiable instruments to a special purpose
entity (SPE – cf. definition) whose sole business is to perform those operations and to convert those loans
or assets into securities traded on secondary markets. The principal legislation governing the subject in
Italy is Law No. 130 of 30th April 1999.
Senior
In a securitisation transaction (cf. definition) it is the tranche with the highest level of privilege in terms of
priority for remuneration and repayment.
Sensitivity analysis
System of analysis designed to detect the sensitivity of determined assets or liabilities to changes in
interest rates and other reference parameters.
SEPA (Single European Payments Area)
The Single Euro Payments Area came into force on 1st January 2008, within which payments will
gradually be able to be made and received in euro under the same standard basic conditions, rights and
obligations. A total of 31 European countries have joined (in addition to the 27 countries of the European
Union, also Switzerland, Norway, Iceland and Liechtenstein). The introduction of the new IBAN (cf.
definition) bank code is one of the instruments used to standardise banking transactions.
Servicer
In securitisation (cf. definition) transactions, it is a company which continues to manage the debts or
assets subject to securitisation on the basis of a special servicing contract after they have been sold to
the special purpose entity responsible for issuing the securities.
Side pocket
This is a measure to protect all the participants in a hedge fund (cf. definition), which is only employed in
“exceptional circumstance” when a sudden reduction in the liquidity of the assets held in the portfolios of
the funds, associated with high demand for the redemption of units held, can have negative
consequences for the management of the funds themselves. In order to avoid compromising the interests
of the participants in a hedge fund in cases where it is necessary to sell illiquid assets in the absence of a
market which would ensure reliable prices, the creation of a “side pocket” allows illiquid assets to be
transferred to a specially created closed mutual investment fund (i.e. a closed side pocket fund).
The operation is performed by partially splitting the hedge fund, after which the liquid assets continue to
be held by the fund itself, while the illiquid assets are transferred to the closed side pocket fund. The
smaller, but liquid, hedge fund continues to perform its activities according to the investment policies set
in the management regulations, while the closed side pocket fund (which cannot issue new units) is
managed with a view to selling the illiquid assets held, proceeding to redemptions of the units as the
assets are gradually liquidated.
SMEs (small and medium-sized enterprises)
According to the definition in EU regulations, small and medium-sized enterprises are considered entities
which carry on a business and regardless of their legal status employ fewer than 250 persons, with an
annual turnover of not more than 50 million euro or with total assets of less than 43 million euro.
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SPE/SPV
Special purpose entities (SPE) or special purpose vehicles (SPV) – also known as conduits - are entities
(companies, trusts or other entities), specially formed to achieve a determined objective that is welldefined and circumscribed, or to perform a specific operation.
SPEs/SPVs have a legal status that is independent from the others involved in the operation and
generally have no operating or management units of their own.
Sponsor
Entity, other than the originator (cf. definition), which establishes and manages a conduit entity (cf.
definition), as part of a securitisation transaction (cf. definition).
Spread
This term normally refers to:
- the difference between two interest rates;
- the difference between the buying (bid) price and the selling (asking) price in securities trading;
- the premium that the issuer of securities recognises in addition to a reference rate.
Staff leasing contract (Contratto di somministrazione di lavoro)
A fixed term labour contract regulated by Legislative Decree No. 276 of 10th September 2003 (the “Biagi
Law” based on Law No. 30 of 14th February 2003), whereby a legal entity uses the services of a worker
employed by a staff leasing agency authorised by the Ministry of Labour. The relations between the user
company and the leasing agency are governed by a staff leasing contract which also regulates wages and
social security contributions.
This form of contract replaced those which governed temporary agency work regulated by Law No. 196 of
24th June 1997 (the “Treu reform”).
Stakeholders
Individuals or groups who have specific interests in an enterprise either because they depend upon it to
achieve their goals or because they are considerably affected by the positive or negative effects of its
activities.
Stand-Still agreements
Agreements designed to allow borrowers in situations of temporary financial difficulty to freeze existing
credit lines, while resolving the original cause of the difficulty or until a formula for full debt
restructuring and a new business plan is drawn up.
Stock Options
Term used to refer to options offered to the managers of a company which allow them to purchase shares
in the company at a set price.
Strategic risk
Current or future risk of a fall in profits or in capital resulting from:
- changes in the operating context;
- inadequate implementation of decisions;
- failure to react to change in a competitive environment.
Stress test
A simulation procedure used to assess the impact of “extreme”, but plausible, market scenarios on the
Bank’s exposure to risk.
Structured notes
Bonds for which the interest and/or the redemption value depend on a real parameter (linked to the
price of a commodity) or the performance of indices. In these cases the implicit option is unbundled from
the host contract in the accounts.
When it is linked to interest rates or inflation (e.g. CCTs – Treasury Certificates of Credit), the implicit
option is not unbundled from the host contract in the accounts.
Subordinated bonds
Financial instruments for which the conditions of sale state that the bearers of the debt certificates are
satisfied after other creditors if the issuing entity goes into liquidation.
Subprime mortgages
The concept of subprime does not refer to the loan in itself, but rather to the borrower. Technically it
refers to a borrower who does not have a fully positive credit history, because characterised by negative
lending events such as for example the presence of repayments on previous loans not made, of cheques
228
without funds and/or protested and so on. These past events are symptomatic of a greater intrinsic
riskiness of counterparties from whom a corresponding higher remuneration is requested by the lender
who grants them a mortgage.
Business with subprime customers developed in the American financial market where the grant of these
loans was usually accompanied by securitisation activity and the issue of securities.
Alt-A mortgage loans are defined as loans granted on the basis of incomplete or inadequate information.
Subrogation
A procedure by which a mortgage borrower negotiates a new mortgage with another bank to pay-off the
original mortgage by transferring the pledge of the same security (the mortgage on the property) which
applied to the “original” bank to the new bank.
Supervisory capital
It is calculated as the algebraic sum of a series of positive and negative items, which are considered
eligible for inclusion – with or without limitations - in relation to the ‘quality’ of the capital. The amount
of those items is considered net of any tax expenses. Positive components of the capital must be fully
available to the Bank, so that they can be used without restrictions to cover risks to which the bank is
exposed.
Supervisory capital is composed of tier one capital (cf definition) and the supplementary capital (tier two,
cf. definition), net of “prudential filters” 4 and some deductions.
Swaps (interest rate swaps and currency swaps)
A transaction consisting of the exchange of cash flows between counterparties according to contracted
conditions. With an interest rate swap the counterparties exchange the interest payments calculated on
notional reference capital on the basis of different criteria (e.g. one counterparty pays a fixed rate and
the other a variable rate). In the case of currency swaps, the counterparties exchange specific amounts
of two different currencies, returning them over time according to set conditions which concern both the
principal and the interest.
Tankan index
An indicator of the performance of the Japanese economy constructed on the basis of the results of a
survey conducted by the Bank of Japan in the last month of each quarter. The survey is on both
manufacturing and services sectors, segmented according to the size of the businesses (large, medium or
small).
Tier 1 capital
This includes paid up share capital, share premiums, reserves (considered prime quality items), non
innovative instruments (not present in the UBI Group) and innovative equity instruments, profit for the
period, net of the part available for distribution as dividends and other forms of distribution, positive
prudent filters of tier one capital and instruments subject to transition provisions (grandfathering).
Treasury shares held in portfolio, goodwill, other intangible fixed assets, prior and current year losses,
other negative items and negative prudent filters for tier one capital (termed negative elements of tier one
capital) are deducted from those elements (termed positive elements of tier one capital). The algebraic
sum of the positive and negative components of the tier one capital constitutes the “tier one capital
before items to be deducted”. The tier one capital is constituted by the difference between the “tier one
capital before items to be deducted” and “items to be deducted from tier one capital”.
Tier 2 (supplementary capital)
This comprises – with some limits on eligibility for inclusion – the fair value reserves, non innovative and
innovative equity instruments not included in the tier one capital, hybrid capital instruments, tier two
subordinated liabilities, (the amount is reduced by one fifth during the five years prior to maturity, in the
absence of an amortisation schedule which produces similar effects) other positive elements and positive
prudent filters of supplementary capital (termed positive elements of tier two capital). Other negative
items and negative tier two prudent filters (termed negative elements of tier two capital) are deducted
from the total of those items.
Tier 3 (third level subordinated debt)
Subordinated bonds that satisfy the following conditions:
- they have been fully paid;
- they do not form part of the supplementary capital (cf. definition);
4 Prudent filters are corrections made to equity items in the statement of financial position made to safeguard the quality of the
supervisory capital and to reduce potential volatility induced by the application of IFRS. With regard to those prudent filters that are
most important to the UBI Group, the regulations state that unrealised gains and losses on available-for-sale financial assets are
divided between equity instruments (inclusive of collective investment instruments) and debt instruments. For each of these
aggregates, if the reserve in question is negative it reduces the tier one capital and if it is positive the tier two capital is increased by
50% of the reserve.
229
-
they have an original life equal to or longer than two years; if the maturity is not set, the advance
notice of the maturity must be at least two years;
they meet the conditions specified for similar liabilities included in the supplementary capital except
of course those concerning the life of the debt;
they are subject to a “lock in” clause according to which the capital and the interest cannot be repaid
if the repayment reduces the total amount of the bank’s capital to a level lower than 100% of the total
capital requirements.
Total capital ratio
A capital ratio calculated on all items of which supervisory capital is composed (tier one and
tier two capital).
Trading book
This usually identifies that part of a securities portfolio, or in any case financial instruments in general,
destined to trading activities.
Trading on line
System for buying and selling financial instruments on the stock exchange via Internet.
Trigger event
A contractually predefined event, which determines the creation of rights in favour of the parties to the
contract when it occurs.
TROR (total rate of return swap)
This is a contract with which a “protection buyer” (also known as a “total return payer”) agrees to pay all
the cash flows generated by a “reference obligation” to a “protection seller” (also know as the total return
receiver), who in return transfers the cash flows linked to the performance of a “reference rate” to the
“protection buyer”. On the dates on which the coupons for the cash flows are paid (or at the end of the
contract), the “total return payer” pays the “total return receiver” any increase there may be in the
“reference obligation”; if, on the other hand the “reference obligation” has decreased then it is the “total
return receiver” who pays the relative amount to the “total return payer”. A TROR is in actual fact a
structured financial product consisting of a combination of a credit derivative and an interest rate swap
(cf. definition).
Unit-linked
Life insurance policies with performance linked to the value of investment funds.
Upper Tier 2
Hybrid capitalisation instruments which form part of the supplementary or tier two capital (cf. definition)
when the contract specifies that:
a) if there are losses in the accounts which cause a decrease in the capital paid in and in the reserves
below the minimum level required for the authorisation to operate as a bank, the sums from those
liabilities and the interest accruing on them can be used to replenish the losses, in order to allow the
issuing entity to continue its business;
b) if operating performance is negative, the right to remuneration can be suspended by that amount
needed to prevent or limit the occurrence of losses as much as possible;
c) in the case of liquidation of the issuer, the debt will only be repaid after all the other higher ranking
creditors have been satisfied;
Non irredeemable hybrid capitalisation instruments must have a life equal to or longer than ten years.
There must be a specific clause in the contract stating that repayment is dependent on Bank of Italy
authorisation.
US GAAP (Generally Accepted Accounting Principles)
Accounting standards issued by the FASB (Financial Accounting Statement Board), which are generally
accepted in the United States of America
VaR (Value at Risk)
A measure of the maximum potential loss that may be incurred on a financial instrument or portfolio
with a set probability (level of confidence) in a determined time period (the reference or holding period).
Warrant
Negotiable instrument which grants the holder the right to purchase fixed rate securities or shares from
the issuer or sell them to the issuer under precise conditions.
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Zero-coupon
Bonds which do not pay an interest coupon, where the yield is given by the difference between the issue
(or purchase) price and the redemption price.
231
Branch network of the Ubi Banca Group
Articolazione territoriale del Gruppo UBI Banca
www.ubibanca.it
Bergamo Via Crispi, 4
Brescia Via Cefalonia, 74
www.bpb.it
Lombardia
Provincia di Bergamo
Bergamo
Piazza Vittorio Veneto, 8
Via dei Caniana, 2 (c/o Università)
Via Borgo Palazzo, 51
Via Borgo Santa Caterina, 6
Via Gombito, 6
Via Borgo Palazzo, 135
Via Gleno, 49
Via Mattioli, 69
Piazza Risorgimento, 15
Piazza Pontida, 39
Via Leone XIII, 2
Via San Bernardino, 96
Via Brigata Lupi, 2
Via Stezzano, 87 (c/o Kilometrorosso)
Adrara San Martino Via Madaschi, 103
Adrara San Rocco P.zza Papa Giovanni XXIII, 6
Albano Sant’Alessandro Via Cavour, 2
Albino
Via Mazzini, 181
Via Lunga, 1 (Fraz. Fiobbio)
Almè Via Torre d’Oro, 2
Almenno San Bartolomeo Via Falcone, 2
Almenno San Salvatore Via Marconi, 3
Alzano Lombardo Piazza Garibaldi, 3
Arcene Corso Europa, 7
Ardesio Via Locatelli, 8
Azzano San Paolo Piazza IV Novembre, 4
Bagnatica Via Marconi, 6 E
Bariano Via A. Locatelli, 12
Barzana Via San Rocco
Berbenno
Via Stoppani, 102 (Fraz. Ponte Giurino)
Piazza Roma, 2
Boltiere Piazza IV Novembre, 14
Bonate Sopra Piazza Vittorio Emanuele II, 20
Bossico Via Capitan Rodari, 2
Brembilla Via Libertà, 25
Brignano Gera d’Adda Via Mons. Donini, 2
Calcinate Via Coclino, 8/c
Calcio Via Papa Giovanni XXIII, 153
Calusco d’Adda Via Vittorio Emanuele II, 7
Capriate San Gervasio Via Parigi, 4
Caprino Bergamasco Via Roma, 10
Caravaggio Piazza G. Garibaldi, 1
Carvico Via Europa Unita, 3
Casazza Via Nazionale del Tonale, 92
Casirate d’Adda Piazza Papa Giovanni XXIII, 1
Castione della Presolana
Via Donizetti, 2 (Fraz. Bratto - Dorga)
Via A. Manzoni, 20
Cazzano Sant’Andrea Via A. Tacchini, 18
Cenate Sopra Via Giovanni XXIII, 16
Cenate Sotto Via Verdi, 5
Cene Via Vittorio Veneto, 9
Cerete Via Moscheni, 44 (Fraz. Cerete Basso)
Chiuduno Via Cesare Battisti, 1
Cisano Bergamasco Via Pascoli, 1
Ciserano
Via Borgo San Marco ang. Via Garibaldi, 7 (Fraz. Zingonia)
Cividate al Piano Via Papa Giovanni XXIII, 3
Clusone Via Verdi, 3
Colere
Via Tortola, 58
Via Papa Giovanni XXIII, 33
(Fraz. Dezzo di Scalve)
Comun Nuovo Via Cesare Battisti, 5
Costa Volpino Via Nazionale, 150
Curno Largo Vittoria, 31
Dalmine
Via Buttaro, 2
P.zza Caduti 6 luglio 1944 (c/o Tenaris Spa)
Dossena Via Carale, 9
Entratico Piazza Aldo Moro, 18
Fontanella Via Cavour, 156
Foresto Sparso Via Tremellini, 1
Gandino Via C. Battisti, 5
Gazzaniga Via Marconi, 14
Gorlago Piazza Gregis, 12
Gorle Piazzetta del Donatore, 5
Grassobbio Viale Europa, 8/b
Grumello del Monte
Via Martiri della Libertà, 10
Leffe Via Mosconi, 1
Lovere Via Tadini, 30
Lovere-Lovere Sidermeccanica Spa
Via Paglia, 45
Madone Via Papa Giovanni XXIII, 44
Mapello Piazza del Dordo, 5
Martinengo Via Pinetti, 20
Monasterolo del Castello Via Monte Grappa, 27
Nembro Piazza della Libertà
Onore Via Sant’Antonio, 98
Orio al Serio Via Aeroporto, 13
Osio Sopra Via XXV Aprile, 29
Osio Sotto Via Cavour, 2
Paladina Via IV Novembre, 13
Palosco Piazza A. Manzoni, 16
Parre Via Duca d’Aosta, 20/a
Piario Via Mazzini, 1/a
Piazza Brembana Via B. Belotti, 10
Ponte Nossa Via Frua, 24
Ponteranica Via Pontesecco, 32
Ponte San Pietro Piazza SS Pietro e Paolo, 19
Pontida Via Lega Lombarda, 161
Presezzo Via Capersegno, 28
Ranica Piazza Europa, 2
Romano di Lombardia Via Tadini, 2
Rota Imagna Via Calchera, 1
Rovetta Via Tosi, 13
San Giovanni Bianco
Via Martiri di Cantiglio, 19
San Pellegrino Terme Via S. Carlo, 3
Sant’Omobono Terme Viale alle Fonti, 8
Sarnico Piazza Umberto I
Scanzorosciate
Via Roma, 27
Via Collina Alta, 3 (Fraz. Tribulina)
Schilpario Via Torri, 8
Sedrina Via Roma, 14
Selvino Via Monte Rosa - angolo Via Betulle
Seriate Viale Italia, 24
Songavazzo Via Vittorio Veneto
Sovere Via Roma, 36
Spirano Via Dante, 9/b
Stezzano Via Bergamo, 1
Suisio Via Carabello Poma, 31
Taleggio Via Roma, 837 (Fraz. Olda)
Tavernola Bergamasca Via Roma, 12
Telgate Via Morenghi, 17
Torre Boldone Via Carducci, 12
Torre de Roveri Piazza Conte Sforza, 3
Trescore Balneario Via Locatelli, 45
Treviglio Viale Filagno, 11
Ubiale Clanezzo Via Papa Giovanni XXIII, 1
Urgnano Via Matteotti, 157
Valbrembo Via Roma, 52
Verdello Via Castello, 31
Vertova Via S. Rocco, 45
Viadanica Via Pietra, 4
Vigolo Via Roma, 8
Villa d’Adda Via Fossa, 8
Villa d’Almè Via Roma - ang. Via Locatelli, 1
Villongo Via Bellini, 20
Vilminore di Scalve Piazza Giovanni XXIII, 2
Zandobbio Via G. Verdi, 2
Zogno Viale Martiri della Libertà, 1
Provincia di Brescia
Brescia Via Gramsci, 39
Chiari Via Bettolini, 6
Concesio Viale Europa, 183
Darfo Boario Terme Piazza Col. Lorenzini, 6
Desenzano del Garda Viale Andreis, 74
Esine Via Manzoni, 97
Manerbio Via Dante, 5
Orzinuovi Piazza Vittorio Emanuele II, 31/33
Ospitaletto Via Martiri della Libertà, 27
Palazzolo sull’Oglio Piazza Roma, 1
Paratico Via Don G. Moioli, 17
Rezzato Via Europa, 5
San Paolo Via Mazzini, 62
San Zeno Naviglio Via Tito Speri, 1
Provincia di Como
Como
Via Giovio, 4
Via dei Mille, 2/b
Via Badone, 48 (Fraz. Camerlata)
Via Gallio - ang. Via Bossi
Via Cattaneo, 3
Viale Giulio Cesare, 26/28
Cantù
Piazza Marconi, 9
Via Enrico Toti, 1/a (Fraz. Vighizzolo)
Casnate con Bernate S.S. dei Giovi, 5
Cermenate Via Matteotti, 28
Erba
Via Leopardi, 7/e
Via Mazzini, 12
Guanzate Via Roma, 24
Lomazzo Via Monte Generoso, 11
Lurate Caccivio Via Varesina, 88
Olgiate Comasco Via Roma, 75
Oltrona San Mamette Piazza Europa, 6
Mariano Comense
Corso Brianza, 20
Viale Lombardia, 54-54/a
Rovellasca Via Volta, 1
Provincia di Lecco
Lecco Corso Matteotti, 3
Piazza Alessandro Manzoni, 16
Via Amendola, 6
Bulciago Via Don Canali, 33/35
Calco Via Italia, 8
Calolziocorte Piazza Vittorio Veneto, 18/a
Carenno Via Roma, 36
Casatenovo Via G. Mameli, 16
Cernusco Lombardone Via S. Caterina, 4
Costa Masnaga Via Cadorna, 18
Merate Via Alessandro Manzoni, 56
Monte Marenzo Piazza Municipale, 5
Olginate Via S. Agnese, 38
Valmadrera Via Fatebenefratelli, 23
Provincia di Milano
Milano
Via Manzoni, 7
Corso Europa, 16 (c/o Centrobanca Spa)
Piazza Cinque Giornate, 1
Via Foppa, 26
Corso Italia, 22
Via Richard, 5 (c/o Nestlè Spa)
Via Rizzoli, 8 (c/o RCS)
Cassano d’Adda Via Milano, 14
Cornaredo
Via Tolomeo, 1 (c/o St Microelectronics Spa)
Grezzago Piazza Aldo Moro
Trezzo sull’Adda Via A. Sala, 11
Piazza Libertà, 1
Vaprio d’Adda Piazza Caduti, 2
Provincia di Monza-Brianza
Monza
Via Borgazzi, 83
Piazza Giuseppe Cambiaghi, 1
Via San Rocco, 44
Via Pesa del Lino, 2
Via Boito, 70
Via F. Cavallotti, 136
Via Manzoni, 22/30
Via Carlo Rota, 50
Piazza Duomo, 5
Agrate Brianza
Via C. Olivetti, 2 (c/o St Microelectronics Spa)
Via Marco d’Agrate, 61
Arcore Via Casati, 45
Bernareggio Via Prinetti, 43
Biassono Via Libertà, 1
Brugherio Via de Gasperi, 58/62/64
Carate Brianza Via Cusani, 49/51
Carnate Via Don Minzoni
Cesano Maderno Via Conciliazione, 29 (Fraz. Binzago)
Concorezzo Via Monza, 33 (Alcatel Italia Spa)
Cornate d’Adda
Via Circonvallazione, 10/12/14
Via Silvio Pellico, 10 (Fraz. Colnago)
Desio Via Matteotti, 10
Giussano Via IV Novembre, 80 (Fraz. Brugazzo)
Limbiate Via dei Mille, 32
Lissone Via San Carlo, 4
Meda Via Indipendenza, 111
Mezzago Via Concordia, 22
Muggiò Via Cavour, 11/15
Nova Milanese Via Brodolini, 1
Seregno Via S. Vitale, 17
Via Medici da Seregno, 29/31
Sulbiate Via Mattavelli, 2
Vedano al Lambro Largo della Repubblica, 7
Villasanta Via Confalonieri, 5
Vimercate
Via B. Cremagnani, 20/a
Via Torri Bianche, 3
Via Giuseppe Mazzini, 72
Via Trento, 30 (c/o Alcatel - Lucent Spa)
Provincia di Varese
Varese
Via Vittorio Veneto, 2
Via Dalmazia, 63
Piazza IV Novembre,1
(Fraz. Biumo Inferiore)
Via Valle Venosta, 4
(Fraz. Biumo Inferiore - c/o Ascom Varese)
Viale Luigi Borri, 155
Viale Borri, 237 (c/o Bassani Ticino Spa)
Via Pasubio, 2
Via Caracciolo, 24
Via Virgilio, 27
Piazza Battistero, 2
Viale Borri, 106
Via S. Sanvito, 55
Angera Via M. Greppi, 33
Azzate Via Vittorio Veneto, 23
Besozzo Via XXV Aprile, 77
Via XXV Aprile, 24
Biandronno Piazza Cavour, snc
Bisuschio Via Mazzini, 28
Bodio Lomnago Via Risorgimento, 23
Busto Arsizio
Piazza S. Giovanni, 3/a
Corso Italia, 54
Via Magenta, 64
Viale Alfieri, 26
Viale Cadorna, 4 - Via Cattaneo, 9
Via Foscolo, 10
Cairate
Via Mazzini, 13
Via Genova, 1 (Fraz. Bolladello)
Cantello Via Turconi, 1
Caravate Via XX Settembre, 22
Cardano al Campo
Via Gerolamo da Cardano, 19
Caronno Pertusella Via Roma, 190
Casale Litta Via Roma, 4
Casorate Sempione Via Milano, 17
Cassano Magnago Via Aldo Moro, 6
Castellanza
Piazza Soldini (c/o Libero Istituto
Universitario Carlo Cattaneo)
Castiglione Olona Via Papa Celestino, 22
Via Cesare Battisti, 13
Castronno Via Roma, 51
Cavaria con Premezzo
Via Scipione Ronchetti, 1318
Cislago Via IV Novembre, 250
Cittiglio Via Valcuvia, 19
Clivio Via Ermizada, 10
Comerio Via al Lago, 2
Cunardo Via Luinese, 1/a
Cuveglio Via Battaglia di S. Martino, 50
Cuvio Via Giuseppe Maggi, 20
Daverio Via Giovanni XXIII, 1
Fagnano Olona Piazza Cavour, 11
Ferno Piazza Dante Alighieri, 7
Gallarate
Via A. Manzoni, 12
Via Buonarroti, 20
Via Marsala, 34
Via Varese, 7/a (Fraz. Cascinetta)
Via Raffaello Sanzio, 2
Via Torino, 28
Piazzale Europa, 2
Gavirate Piazza della Libertà, 2
Gazzada Schianno Via Roma, 47/b
Gemonio Via Giuseppe Verdi, 24
Gerenzano Via G.P. Clerici, 124
Germignaga Piazza XX Settembre, 51
Gorla Maggiore Via Verdi, 2
Gornate Olona Piazza Parrocchetti, 1
Induno Olona Via Porro, 46
Ispra Via Mazzini, 59
Jerago con Orago Via Matteotti, 6
Laveno Mombello Via Labiena, 53
Laveno Ponte Tresa Piazza A. Gramsci, 8 (Fraz. Ponte Tresa)
Leggiuno Via Bernardoni, 9
Lonate Ceppino Via Don Albertario, 3
Lonate Pozzolo Piazza Mazzini, 2
Luino Via Vittorio Veneto, 6/a
Via Piero Chiara, 7
Malnate P.zza Repubblica - ang. Via Garibaldi
Maccagno Viale Garibaldi, 13
Marchirolo Strada Statale 233, 27
Marnate Via Diaz, 12 - angolo Via Genova
Mercallo Via Prandoni, 1
Mesenzana Via Provinciale, 11
Monvalle Piazza Marconi, 1
Mornago Via Cellini, 3 - angolo Via Carugo
Olgiate Olona Via G. Mazzini, 56
Origgio
Via Repubblica, 10
S.S. Varesina, 233 (c/o Novartis Italia Spa)
Porto Ceresio Via Roma, 2
Porto Valtravaglia Piazza Imbarcadero, 17
Saltrio Via Cavour, 27
Samarate Via N. Locarno, 19
(Fraz. Verghera)
Saronno
Via P. Micca, 10
Via Roma, 85
Via Giuseppe Garibaldi, 5
Piazza Borella, 4
Sesto Calende Via XX Settembre, 35
Solbiate Arno Via A. Agnelli, 7
Somma Lombardo Corso della Repubblica - ang. Via Rebaglia
Sumirago Via Brioschi, 2
Ternate Piazza Libertà, 14
Tradate Via XXV Aprile, 1
angolo Corso Ing. Bernacchi
Via Vittorio Veneto, 77
(Fraz. Abbiate Guazzone)
Corso Bernacchi, 95
Travedona Monate Via Roma, 1
Uboldo Via R. Sanzio, 46
Varano Borghi Via Vittorio Veneto, 6
Vedano Olona Piazza S. Rocco, 8
Venegono Inferiore Via Mauceri, 16
Venegono Superiore Piazza Monte Grappa, 8
Viggiù Via A. Castagna, 1
Lazio
Provincia di Roma
Roma
Via dei Crociferi, 44
Via del Monte della Farina, 23
Via S. Silverio, 57
Largo Salinari, 24 - ang. Via B. Croce 82/84
Viale Gorizia, 34
Via di Porta Castello, 32
Via Val Maira, 125/131
Via Tiburtina, 604
Via dell’Aeroporto, 14/16
Via Pietro Boccanelli, 30
(c/o Sviluppo Italia Spa - Campo Elba)
Via Calabria, 46 (c/o Sviluppo Italia Spa)
Via Gattamelata, 109
Via Donna Olimpia, 128
Largo di Vigna Stelluti, 25
Monterotondo Via Salaria, 204
Pomezia Via dei Castelli Romani, 22
Velletri Via U. Mattoccia, 6
Sardegna
Provincia di Cagliari
Cagliari Via Mameli, 120
www.bancodibrescia.it
LOMBARDIA
Provincia di Brescia
Brescia
Piazza della Loggia, 5
Corso Magenta, 73 - ang. Via Tosio
Via Lecco, 1
Via Trento, 7
Via San Martino, 2 - ang. Corso Zanardelli
Contrada del Carmine, 67
Via Valle Camonica, 6/b
Via Santa Maria Crocifissa di Rosa, 67
Piazzale Spedali Civili, 1
Corso Martiri della Libertà, 13
Via Trieste, 8
Via Vittorio Veneto, 73 - ang. Tofane
Via San Giovanni Bosco, 15/c
Via Bettole, 1 (Fraz. San Polo)
Via Cremona, 145
Via della Chiesa, 72
Via Prima, 50 - Villaggio Badia
Piazzale Nava, 7 (Fraz. Mompiano)
Via Masaccio, 29 (Fraz. San Polo)
Via Bissolati, 57
Corso Martiri della Libertà, 45
Via Milano, 21/b
Via Indipendenza, 43
Via Solferino, 30/a
Via Trento, 25/27
Viale Duca d’Aosta, 19
Via Ambaraga,126
Via Chiusure, 333/a
Via Cefalonia, 76
Via Orzinuovi, 9/11
Via San Rocchino, 106
Via Lamarmora, 230 (c/o A2A)
Via Cipro, 76
Via Triumplina, 179/b
Via Vittorio Emanuele II, 60
Via Volturno, 62
Via Orzinuovi, 86
Acquafredda Via della Repubblica, 52
Adro Via Roma, 1
Bagnolo Mella Via XXVI Aprile, 69/71
Bagolino Via San Giorgio, 66
Barghe Via Boschi, 11/13
Bedizzole
Via Trento, 3/5
Via Sonvigo, 13
Borgosatollo Via IV Novembre, 140
Botticino
Via Valverde, 1 (Fraz. Botticino Sera)
Via Don Milani, 3
Bovegno Via Circonvallazione, 5
Bovezzo Via Dante Alighieri, 8/d
Breno Via Giuseppe Mazzini, 72
Calcinato Via Guglielmo Marconi, 51
Calvisano Via Dante Alighieri, 1
Capriano del Colle
Via Morari, 26
Via Trento, 39 (Fraz. Fenili Belasi)
Carpenedolo Piazza Martiri della Libertà, 1
Castegnato Piazza Dante Alighieri, 1
Castelcovati Via Alcide De Gasperi, 48
Castel Mella Via Caduti del lavoro, 56/a
Castenedolo Piazza Martiri della Libertà, 4
Castrezzato Piazza Mons. Zammarchi, 1
Cedegolo Via Nazionale, 105
Cellatica Via Padre Cesare Bertulli, 8
Chiari
Piazza Giuseppe Zanardelli, 7
Via Maffoni complesso S. Giacomo
Collio Piazza Giuseppe Zanardelli, 32
Comezzano - Cizzago
Via Giuseppe Zanardelli, 31
Concesio
Via Europa, 203
Via Europa, 8 (c/o centro comm. Valtrumpino)
Darfo Boario Terme Via Roma, 2
Dello Piazza Roma, 36
Desenzano del Garda
Via G. Marconi, 18
Via G. Marconi, 97
Via G. Di Vittorio, 17 (Fraz. Rivoltella)
Edolo Via G. Marconi, 36/a
Fiesse Via Antonio Gramsci, 25
Flero Via XXV aprile, 110
Gardone Riviera Via Roma, 8
Gardone Val Trompia Via G. Matteotti, 212
Gargnano Piazza Feltrinelli, 26
Gavardo Via Suor Rivetta, 1
Ghedi Piazza Roma, 1
Gottolengo Piazza XX Settembre, 16
Gussago
Via IV Novembre, 112/a
Via Richiedei, 61
Idro Via Trento, 60
Iseo
Via Dante Alighieri, 10
Via Risorgimento, 51/c (Fraz. Clusane)
Isorella Via A. Zanaboni, 2
Leno
Via Dossi, 2
Via Giuseppe Garibaldi, 2
Limone del Garda Via Don Comboni, 24
Lograto Piazza Roma, 11
Lonato Via Guglielmo Marconi
Lumezzane
Via Alcide De Gasperi, 91 (Fraz. Pieve)
Via Virgilio Montini, 251/ c
(Fraz. S. Sebastiano)
Via M. D’Azeglio, 4 (Fraz. S. Sebastiano)
Via N. Bixio, 2 (Fraz. Pieve)
Mairano Piazza Europa, 1
Manerba del Garda Via Vittorio Gassman, 17/19
Manerbio
Via XX Settembre, 21
Via Cremona (c/o c. comm. Le Arcate)
Marone Via Roma, 59
Milzano Piazza Roma, 13
Moniga del Garda Piazza San Martino
Monte Isola Via Peschiera Maraglio, 156
Monticelli Brusati Via IV Novembre, 5/a
Montichiari
Via Trieste, 71
Via Felice Cavallotti, 25
Nave Piazza Santa Maria Ausiliatrice, 19
Nuvolento Via Trento, 17
Nuvolera Via Italia, 3/a
Odolo Via Praes, 13/bis
Offlaga Via Giuseppe Mazzini, 2
Orzinuovi Piazza Vittorio Emanuele II, 18
Ospitaletto
Via Padana Superiore, 56
Via Rizzi, 8
Paderno Franciacorta Via Roma, 32
Palazzolo sull’Oglio
Via XX Settembre, 22
Via Brescia, 1
Passirano Via Libertà, 36
Pavone del Mella Piazza Umberto I, 1
Pisogne Piazza Umberto I, 11
Poncarale Via Fiume, 8/a
Ponte di Legno Corso Milano, 34
Pontevico Piazza Giuseppe Mazzini, 15
Pralboino Via Martiri Libertà, 52
Prevalle Piazza del Comune, 7
Quinzano d’Oglio Via C. Cavour, 29/31
Remedello Via Roma, 60
Rezzato
Via IV Novembre, 98
Via Zanardelli, 5a/b (Fraz. Virle Treponti)
Rodengo Saiano Via Ponte Cigoli, 12
Roè Volciano Via San Pietro, 119
Roncadelle Via Martiri della Libertà, 119/a
Via Guglielmo Marconi (c/o c.c. Auchan)
Rovato Corso Bonomelli, 52/54
Sabbio Chiese Via XX Settembre, 83
Sale Marasino Via Roma, 23/ Bis
Salò Via Pietro da Salò - Loc. Rive
Piazza Vittoria, 13
Piazza Vittorio Emanuele II, 20
San Felice del Benaco Viale Italia, 9
San Gervasio Bresciano Piazza Antica Piazzola, 5
San Paolo Piazza Aldo Moro, 9
Sarezzo Via Roma, 8
Via G. Carducci, 2 (Fraz. Ponte Zanano)
Seniga Via San Rocco, 15
Sirmione
Via Colombare - ang. Via G. Garibaldi
Piazza Castello, 58
Sulzano Via Cesare Battisti, 85
Tavernole sul Mella Via IV Novembre, 40/42
Tignale Piazzale Francesco d’Assisi
Torbole Casaglia Piazza Caduti, 8
Toscolano Maderno Via Montana, 1 (Fraz. Maderno)
Via Statale Toscolano, 114/a (Fraz. Toscolano)
Travagliato Piazza Libertà
Verolanuova Piazza Libertà, 1
Vestone Via Perlasca, 5
Lodi Via Fissiraga, 18/20
Via Incoronata, 12
Codogno Via Roma, 11
Via Vittorio Emanuele II, 35
Lodi Vecchio Piazza Vittorio Emanuele, 48
S. Angelo Lodigiano Piazza Libertà, 10
Piazza XXV Aprile, 9
Via Antonio Rosmini, 17
Via Ponchielli, 1
Via Giorgio Washington, 96
Via Vincenzo Monti, 42
Via Monte Rosa, 16
Via Mac Mahon, 19
Via Staro, 1 - ang. Via Ronchi
Via Caradosso, 16
Via Silvio Pellico, 10/12
Via G.B. Morgagni, 10
Piazza Sant’Agostino, 7
Via Feltre, 30/32
Via Giovanni da Procida, 8
Piazza Borromeo, 1
Viale Monza, 139
Via Lomellina, 14
Via Lecco, 22
Corso Indipendenza, 5
Viale Marche, 40
Via Porpora, 65
Largo Scalabrini, 1
Via Bertolazzi, 20 (Zona Lambrate)
Via A. Muratori, 26
Bresso Via Vittorio Veneto, 57
Cernusco sul Naviglio Via Monza, 15
Cologno Monzese
Via Felice Cavallotti, 28
Viale Lombardia, 52
Corsico Via G. Di Vittorio, 10
Legnano C.so Magenta,127 - ang. Via Beccaria
Melegnano Viale Predabissi, 12
Melzo Via Antonio Gramsci, 23
Novate Milanese Via G. Di Vittorio, 22
Paderno Dugnano
Via Erba, 36/38
Via Tripoli, 3
Paullo Piazza E. Berlinguer, 14
Pioltello Via Mantegna, 35
Rho Viale Europa, 190
Trezzano Rosa Piazza San Gottardo, 14
Trezzo sull’Adda Via Bazzoni
Provincia di Mantova
FRIULI VENEZIA GIULIA
Villa Carcina Via G. Marconi, 39/c
Visano Via Gugliemo Marconi, 11
Vobarno Via Migliorini - ang. Via San Rocco
Zone Via Monte Guglielmo, 44
Provincia di Bergamo
Bergamo Via Palma il Vecchio, 113
Via Tremana, 13
Via Camozzi, 101
Via Don Luigi Palazzolo, 89
Via Borgo Palazzo, 93
Albano Sant’Alessandro Via Tonale, 29
Alzano Lombardo Via Roma, 31
Brembate Sopra Via B. Locatelli ang. Via Sorte
Cologno al Serio Via San Martino, 2
Grumello del Monte Via Roma, 63
Medolago Via Europa, 19/b
Seriate Via Paderno, 25
Trescore Balneario Via Lorenzo Lotto, 6/a
Treviolo Piazza Mons. Benedetti, 10
Provincia di Cremona
Cremona
Viale Po, 33/35
Piazza Risorgimento, 9
Via Dante, 241
Piazza Stradivari, 19
Via Mantova, 137
Casalmaggiore Via Porzio - ang. Via Nino Bixio
Castelleone Via Roma, 69
Crema Viale Repubblica, 79
Soncino Via IV Novembre, 25
Largo Manzella
Provincia di Lodi
Mantova
V.le Risorgimento, 33 - ang. Valsesia
Via Madonna dell’orto, 6
Viale Divisione Acqui, 14
Via Bertani, 22/24
Piazza Guglielmo Marconi, 7
Asola Viale della Vittoria, 17
Bagnolo San Vito
Via Di Vittorio, 35 (Fraz. San Biagio)
Borgofranco sul Po
Via Martiri della Libertà, 64
Castel Goffredo Via Europa, 27
Castiglione delle Stiviere
Via C. Cavour, 36
Magnacavallo Via Roma, 23
Marmirolo Via Ferrari, 66/d
Moglia Piazza Libertà, 19
Ostiglia Via Vittorio Veneto, 14
Poggio Rusco Via Trento e Trieste, 9
Quistello
Via G. Marconi, 12
Via Europa, 49 (Fraz. Nuvolato)
Sermide Via Cesare Battisti, 4
Villa Poma Piazza Mazzali, 7
Provincia di Milano
Milano
Piazza XXIV Maggio, 7
Provincia di Pordenone
Pordenone Via Santa Caterina, 4
Fiume Veneto Via Piave, 1 (Fraz . Bannia)
Prata di Pordenone Via Cesare Battisti, 1
Provincia di Udine
Udine Via F. di Toppo, 87
Ampezzo Piazzale ai Caduti, 3
Arta Terme Via Roma, 2/c
Magnano in Riviera Piazza F. Urli, 40
Majano Piazza Italia, 26
Paularo Piazza Nascimbeni, 5
Prato Carnico Via Pieria, 91/d
Sutrio Piazza XXII Luglio 1944, 13
Tolmezzo Piazza XX Settembre, 2
Lazio
Provincia di Latina
Latina
Via Isonzo, 3
Via della Stazione, 187
Provincia di Roma
Roma
Via Ferdinando di Savoia, 8
Via Simone Martini, 5
Piazza Eschilo, 67
Via Bevagna, 58/60
Largo Colli Albani, 28
Via Vittorio Veneto, 108/b - Via Emilia
Via Fabio Massimo, 15/17
Via Crescenzio Conte di Sabina, 23
Via Portuense, 718
Via Fucini, 56
Via Boccea, 211/221
Via Camillo Sabatini, 165
Via Val Pellice, 22
Via Ugo Ojetti, 398
Via Aurelia, 701/709
Via A. Pollio, 50 (c/o c.c. Casalbertone)
Viale Guglielmo Marconi, 3/5
Piazza San Silvestro, 6
Piazza dei Tribuni, 58
Via Appio Claudio, 336
Provincia di Viterbo
Viterbo Corso Italia, 36
Via Saragat - ang. Via Polidori
Via Monte San Valentino
Via Carlo Cattaneo, 46/f
Via San Lorenzo, 56/58
Via Venezia Giulia, 20/22
Acquapendente Via del Rivo, 34
Bassano in Teverina Via Cesare Battisti, 116
Bolsena Via Antonio Gramsci, 28
Bomarzo Piazza B. Buozzi, 5
Canepina Via Giuseppe Mazzini, 61
Capodimonte Via Guglielmo Marconi, 84
Civita Castellana Via della Repubblica
Corchiano Via Roma, 45
Fabrica di Roma Viale degli Eroi
Gradoli Piazza Vittorio Emanuele II, 10
Marta Via Laertina, 35/39
Montalto di Castro
Via Aurelia Tarquinia, 5/7
P.za delle mimose, 13 (Fraz. Pescia Romana)
Montefiascone Piazzale Roma
Monterosi Via Roma, 36
Orte Via Le Piane
Ronciglione Corso Umberto I, 78
Soriano nel Cimino Piazza XX Settembre, 1/2
Tarquinia Piazzale Europa, 4
Tuscania Via Tarquinia
Vasanello Piazza della Repubblica, 55/56
Vetralla
Via Roma, 21/23
Via Cassia, 261 (Fraz. Cura)
Vignanello Via Vittorio Olivieri, 1/a
Vitorchiano Via Borgo Cavour, 10
VENETO
Provincia di Padova
Padova Via N. Tommaseo ang. via Codalunga
Camposampiero Piazza Castello, 43
Noventa Padovana
Via Giovanni XXIII, 2 - ang. Via Risorgimento
Ponte San Nicolò Via Padre M. Kolbe, 1/a
Rubano Via C. Varotari, 1 (Fraz. Sarmeola)
Provincia di Venezia
Venezia San Polo, 2033
Mestre Piazza XXVII Ottobre, 29
Mira Via Nazionale, 193
Provincia di Verona
Verona
Largo Caldera, 13
Via XXIV Maggio, 16
Via Albere, 18
Via Murari Brà, 12/b
Via Emilio Salgari, 9
Via Campagnol di Tombetta, 30
Corte Farina, 4
Via Galvani, 7
Piazza Simoni, 14
Bussolengo Via Verona, 43
Caldiero Via Strà, 114-114/a
Castel d’Azzano Via Mascagni, 51
Grezzana Viale Europa, 13
Isola della Scala Via Spaziani, 19
Monteforte d’Alpone Viale Europa, 30
Negrar Via Strada Nuova, 17 (Fraz. S. Maria)
Peschiera del Garda Via Venezia, 4
San Bonifacio Via Camporosolo,16
San Giovanni Lupatoto Via Garofoli, 1 ang. Via Cà dei Sordi
San Martino Buon Albergo Via Nazionale, 21
Sant’Ambrogio Valpolicella
Via Giacomo Matteotti, 2
Sona Via XXVI Aprile, 19 (Fraz. Lugagnano)
Villafranca di Verona Via della Pace, 58
Provincia di Vicenza
Vicenza
Viale San Lazzaro, 179
Via IV Novembre, 60
Altavilla Vicentina Via Roma, 3
Bassano del Grappa Viale San Pio X 85
Montecchio Maggiore Via Madonnetta
Schio Via Battaglion Val Leogra, 6
Provincia di Treviso
Treviso Piazza Vittoria, 14
Castelfranco Veneto Via Forche, 2
Conegliano Via XI Febbraio, 1
Montebelluna Via Dante Alighieri
Oderzo Via degli Alpini, 30/32
Pieve di Soligo Via Capovilla, 31
Quinto Di Treviso Via Contea, 33
Resana Via Martiri della Libertà, 40/1
Trentino Alto Adige
Provincia di Trento
Pieve di Bono Via Roma, 28
Storo Via Campini, 3/a (Fraz. Lodrone)
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LOMBARDIA
Provincia di Milano
Milano
Via della Moscova, 33
Via Astesani, 16
Via Salasco, 31
Via Bocchetto, 13
Via Borgogna, 2/4
Via Buonarroti, 22
Via Boccaccio, 2
Via Canonica, 54
Viale Coni Zugna, 71
Corso Lodi, 111
Piazzale de Agostini, 8
Via Carlo Dolci, 1
Piazza Firenze, 14
Largo Gelsomini, 12
Via G.B. Grassi, 89
Via Gian Galeazzo - ang. Via Aurispa
Corso Indipendenza, 14
Via La Spezia, 1
Viale Lombardia, 14/16
Corso Magenta, 87 - Porta Vercellina
Viale Marche, 56
Piazzale Nigra, 1
Via Olona, 11
Via Padova, 21
Via Pergolesi, 25
Viale Piave, 15
Corso di Porta Romana, 63
Via del Torchio, 4
Via Eugenio Pellini, 1 - ang. Via Cagliero
Via Vitruvio, 38 - Via Settembrini
Via Solari, 19
Via Spartaco, 12
Largo Zandonai, 3
Viale Monte Santo, 2
Viale Pirelli - ang. Piazza della Trivulziana, 5
Piazzale Zavattari, 12
Via Pellegrino Rossi, 26
Via Melchiorre Gioia, 28
Piazza Siena, 18
Piazzale Susa, 2
Via Biondi, 1
Via Friuli, 16/18
Via C. Menotti, 21 - ang. Via G. Modena
Viale delle Rimembranze di Lambrate, 4
Viale L. Sturzo, 33/34
Via Saffi, 6/5
Via A. Trivulzio, 6/8
Via Palestrina, 12 - ang. Viale A. Doria
Via Bignami, 1 (c/o C.T.O.)
Via Macedonio Melloni, 52 (c/o I.O.P.M.)
Via della Commenda, 12 (c/o Istituti Clinici)
Corso Porta Nuova, 23
(c/o Ospedale Fatebenefratelli)
Via Francesco Sforza, 35 (c/o Osp. Maggiore)
Piazza Ospedale Maggiore, 3 (c/o Niguarda)
Via Pio II, 3 (c/o Ospedale San Carlo)
Via Castelvetro, 32 (c/o Ospedale Buzzi)
Via Trivulzio, 15 (c/o Pio Albergo)
Corso Italia, 17
Via Lomellina, 50
Via Pisanello, 2
Corso Lodi, 78
Piazza Gasparri, 4
Via Panizzi, 15
Via dei Missaglia - angolo Via Boifava
Viale Monza, 325
Piazza Santa Francesca Romana, 3
Via Meda, angolo Via Brunacci, 13
Corso XXII Marzo, 22
Via Ampère, 15
Piazzale Lagosta, 6
Via Padova, 175
Viale Certosa, 138
Via Monte di Pietà, 7
Via G.B. Grassi, 74 (c/o Ospedale Luigi Sacco)
Via A. di Rudini, 8 (c/o Ospedale San Paolo)
Abbiategrasso Piazza Cavour, 11
Arluno Via Piave, 7
Assago Milanofiori
Palazzo Wtc Viale Milanofiori
Bellinzago Lombardo Via delle 4 Marie, 8
Binasco Largo Bellini, 16
Bollate Via Giacomo Matteotti, 16
Bresso Via Roma, 16
Canegrate Via Manzoni, 48/a
Carugate Via Toscana, 10
Cassina de’ Pecchi Via Matteotti, 2/4
Cinisello Balsamo Via Casati, 19
Viale Umbria, 4
Via Massimo Gorki, 50 (c/o Ospedale Bassini)
Cologno Monzese
Via Indipendenza, 32 - ang. P.zza Castello
Corbetta Corso Garibaldi, 14
Cornaredo Piazza Libertà, 62
Via Magenta, 34
Corsico
Via Cavour, 45
Viale Liberazione, 26/28
Garbagnate Milanese
Via Milano, 110/112
Via Kennedy, 2 (Fraz. S. M. Rossa)
Gorgonzola P.zza Cagnola Vicolo Corridoni
Inveruno Via Magenta, 1
Lainate Via Garzoli, 17
Legnano
Corso Sempione, 221
Corso Sempione - angolo Via Toselli
Via Novara, 8
Piazza Don Sturzo, 13
Magenta Piazza Vittorio Veneto, 11
Melegnano Via Cesare Battisti, 37/a
Melzo Piazza Risorgimento, 2
Novate Milanese Via Amendola, 9
Opera Via Diaz, 2
Paderno Dugnano Via Rotondi, 13/a
Parabiago Via S. Maria, 22
Peschiera Borromeo Viale Liberazione, 41
Pregnana Milanese Via Roma, 46
Rho
Corso Europa, 209
Via Meda, 47
Via Pace, 165 (Fraz. Mazzo Milanese)
Rozzano
Viale Lombardia, 17
Piazza Berlinguer, 6 (Fraz. Ponte Sesto)
S. Giuliano Milanese
Via Risorgimento, 3
Via S. Pellico, 9 (Fraz. Sesto Ulteriano)
Segrate Piazza della Chiesa, 4
Senago Piazza Matteotti, 10/a
Sesto San Giovanni Via Casiraghi, 167
Settimo Milanese Piazza della Resistenza, 8
Solaro Via Mazzini, 66
Trezzano Rosa Via Raffaello Sanzio, 13/s
Trezzano sul Naviglio Viale C. Colombo, 1
Vimodrone Strada Padana Superiore, 287
Vittuone Via Villoresi, 67
Provincia di Monza-Brianza
Monza
Viale G.B. Stucchi, 110 (c/o Roche Boehringer Spa)
Provincia di Pavia
Pavia
Via Montebello della Battaglia, 2
Piazza Duomo, 13/14
Corso Strada Nuova, 61/c
Viale Matteotti, 63 (c/o Istituzioni Assistenziali Riunite)
Via dei Mille, 7
Viale Ludovico il Moro, 51/b
Via Taramelli, 20
Via Pavesi, 2
Corso Alessandro Manzoni, 17
Piazzale Gaffurio, 9
Via San Pietro in Verzolo, 4
Via Ferrata, 1 (c/o Università)
Albuzzano Via Giuseppe Mazzini, 92/94
Belgioioso Via Ugo Dozzio, 15
Borgarello Via Principale, 3
Brallo di Pregola Piazza del Municipio, 12
Broni Piazza Vittorio Veneto, 52
Casei Gerola Piazza Meardi, 9
Casorate Primo
Via S. Agostino, 1 - ang. P.zza Contardi
Cassolnovo Via Lavatelli, 16/20
Casteggio Viale Giuseppe Maria Giulietti, 10 Garlasco Corso C. Cavour, 55
Giussago Via Roma, 38
Godiasco
Piazza Mercato, 19
Viale delle Terme, 44 (Fraz. Salice Terme)
Landriano Via Milano, 40
Linarolo Via Felice Cavallotti, 5
Magherno Via G. Leopardi, 2
Marcignago Via Umberto I, 46
Montebello della Battaglia
Piazza Carlo Barbieri “Ciro”, 1
Mortara Piazza Silvabella, 33
Pinarolo Po Via Agostino Depretis, 84
Portalbera Via Mazzini, 1 (c/o Comune)
Robbio Piazza Libertà, 8
Rosasco Via Roma, 4
San Martino Siccomario Via Roma, 23
Sannazzaro de’ Burgondi Viale Libertà 3/5
Siziano Via Roma, 22
Stradella Via Trento, 85
Torrevecchia Pia Via Molino, 9
Travacò Siccomario
P.zza Caduti e Combattenti d’Italia, 1
Valle Lomellina Piazza Corte Granda, 4
Varzi Via Pietro Mazza, 52
Vigevano
Via Dante, 39
Via Madonna degli Angeli, 1
Corso Genova, 95
Via de Amicis, 5
Via Sacchetti
Via Decembrio, 27
Vistarino Via Vivente, 27/a
Voghera Via Giacomo Matteotti, 33
Via Sant’Ambrogio, 17
EMilia ROMAGNA
Provincia di Bologna
Bologna
Viale della Repubblica, 25/31
Via Murri, 77
Piazza Malpighi, 16
Via Ercolani, 4/e
Via Lombardia, 7/a
Imola Piazza Caduti, 5/6
San Giovanni in Persiceto C.so Italia, 137/139
San Lazzaro di Savena Via Emilia, 208/210
Zola Predosa Via Risorgimento, 109
Provincia di Ferrara
Cento Via Ferrarese, 3
Provincia di Modena
Modena
Viale Trento e Trieste - ang. Via Emilia Est
Carpi Via Baldassarre Peruzzi, 8/b
Formigine Via Grazia Deledda, 26
Sassuolo Viale Crispi, 24
Provincia di Parma
Parma
Via San Leonardo, 4
Via Emilia est, 17
Via Repubblica, 32
Colorno Via San Rocco, 34
Fidenza Piazza G. Garibaldi, 41
Langhirano Via Roma, 25 - Via Ferrari, 17
Provincia di Piacenza
Piacenza
Via Verdi, 48
Via Manfredi, 7
Via Cristoforo Colombo, 19
Caorso Via Roma, 6/a
Carpaneto Piacentino Via G. Rossi, 42
Gragnano Trebbiense Via Roma, 52
Ponte dell’Olio Via Vittorio Veneto, 75
San Nicolò a Trebbia
Via Emilia Est, 48 (Fraz. Rottofreno)
Provincia di Reggio Emilia
Reggio Emilia
V.le Monte Grappa, 4/1 - ang. V.le dei Mille
Via Emilia all’Angelo, 35
Correggio Via Asioli, 7/a
Rubiera Viale della Resistenza, 7/a
LAZIO
Provincia di Roma
Roma
Corso Vittorio Emanuele II, 25/27
Via Baldovinetti, 106/110
Via Boccea 51, a/b/c
Viale dei Colli Portuensi, 298/302
Via F.S. Nitti, 73/75/77
Via Norcia, 1/3
Via Guidubaldo del Monte, 13/15
Viale delle Provincie, 34/46
Via Nizza, 71
Viale Trastevere, 22
Via Sestio Calvino, 57
Via Tiburtina, 544/546 - ang. Via Galla Placidia
Largo Trionfale, 11/12/13/14
Via Cerveteri, 30
Piazza Vescovio, 3 - 3/a - 3/b
- ang. Via Poggio Moiano, 1
Via dei Castani,133
Via delle Azzorre, 288 (Fraz. Ostia)
Via Nomentana, 669/675
Via XX Settembre, 45 - ang. Servio Tullio
Viale dei quattro venti, 83
TOSCANA
Provincia di Firenze
Firenze Corso dei Tintori, 10/12/14/16R
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piemonte
Provincia di Cuneo
Cuneo Piazza Europa, 1
Piazza Europa, 9
Via Luigi Gallo, 1
Via Roma, 13/b
Via della Battaglia, 15
(Fraz. Madonna dell’Olmo)
Corso Nizza, 57/a
Corso Antonio Gramsci, 1
Via Savona, 8 - ang. Via Bisalta
Via A. Carle, 2 (Fraz. Confreria)
P.zale Repubblica (Fraz. Castagnaretta)
Via Michele Coppino, 16 (c/o Ospedale)
Via Margarita, 8
(c/o c. comm. Auchan Tetto Garetto)
Alba Via Teobaldo Calissano, 9
Viale Giovanni Vico, 5
Corso Piave, 74
Corso Langhe, 66/b - Borgo Moretta
Corso Cavour, 14
Via G. Garibaldi, 180 (Fraz. Gallo d’Alba)
Corso Canale, 98/1 (Fraz. Mussotto)
Piazza Savona, 3/a
Bagnasco Via Roma, 3
Bagnolo Piemonte
Via Cavalieri di Vittorio Veneto, 12
Barbaresco Via Torino, 16
Barge Viale Giuseppe Mazzini, 1
Barolo Via Roma, 53
Bastia Mondovì Piazza IV Novembre, 3
Beinette Via Vittorio Veneto, 4
Bernezzo Via A. Moro, 2 (Fraz. S.Rocco)
Borgo San Dalmazzo Piazza Liberazione, 8/10
Via Po, 41/43
Bossolasco Corso Della Valle, 29
Boves Piazza dell’Olmo, 2
Bra
Via Giuseppe Verdi, 10
Via Don Orione, 85 (Fraz. Bandito)
Brossasco Via Roma, 11/a
Busca Piazza Savoia, 9
Canale Via Roma, 72
Caraglio Piazza Madre Teresa, 8
Carrù P.za V. Veneto, 2 - ang. Via Benevagienna
Casteldelfino Via Circonvallazione, 5
Castelletto Stura Via Guglielmo Marconi, 6
Castellinaldo Via Roma, 56
Castiglione Tinella Via Circonvallazione, 12
Castino Via XX Settembre, 1
Centallo Piazza Vittorio Emanuele II, 17
Ceva Via Roma, 40
Cherasco Via Vittorio Emanuele II, 34
Chiusa di Pesio Via Roma, 5
Corneliano d’Alba Piazza Cottolengo, 42
Cortemilia Piazza Castello, 1
Costigliole Saluzzo Via Vittorio Veneto, 94
Cravanzana Via XX Settembre, 1
Crissolo Via Umberto I, 39
Demonte Via Martiri e Caduti della Libertà, 1
Dogliani Via Divisione Cuneense, 1
Dronero
Piazza San Sebastiano, 7
Viale della Stazione, 10
Entracque Via della Resistenza, 5
Farigliano Piazza San Giovanni, 7
Fossano Via Roma, 3
Frabosa Soprana Piazza Guglielmo Marconi, 1
Frabosa Sottana
Via Galassia, 61 (Fraz. Prato Nevoso)
Via IV Novembre, 30
Gaiola Via Barale, 16
Garessio Corso Statuto, 15
Genola Via Roma, 32
Govone Piazza Vittorio Emanuele II, 9
Lagnasco Via Roma, 30
La Morra Via Umberto I, 28
Lesegno Via Roma, 23
Limone Piemonte Via Roma, 62
Magliano Alfieri
Via IV Novembre, 54/a (Fraz. S. Antonio)
Magliano Alpi Via Langhe, 158
Mango Piazza XX Settembre, 6
Monastero Vasco Via Variante, 3
Monchiero Via Borgonuovo, B/15-1
Mondovì
Piazza G. Mellano, 6
Corso Europa, 23
Piazza Maggiore, 8
Piazzale Ellero, 20
Monesiglio Via Roma, 4
Monforte d’Alba Via Giuseppe Garibaldi, 4
Montà Piazza Vittorio Veneto, 31
Montanera Via G. Marconi, 4
Monticello d’Alba
Piazza Martiri della Libertà, 2 (Fraz. Borgo)
Moretta Via Torino, 73/bis
Morozzo Via Guglielmo Marconi, 78
Murazzano Via L. Bruno, 6
Murello Via Caduti Murellesi, 39
Narzole Via Pace, 2
Neive Piazza della Libertà, 2
Neviglie Via Umberto I, 14
Niella Belbo Piazza Mercato, 12/b
Paesana Via Po, 41
Pagno Via Roma, 1
Peveragno Piazza P. Toselli, 1
Piasco Piazza Martiri della Liberazione, 7
Piobesi d’Alba Piazza San Pietro, 12
Pradleves Via IV Novembre, 108
Priocca Via Umberto I, 65
Racconigi Piazza Roma, 8
Revello Via Saluzzo, 80
Rifreddo Piazza della Vittoria, 4
Robilante Via Umberto I, 22
Roccavione Piazza Biagioni, 27
Rodello Piazza Vittorio Emanuele II, 2
Rossana Via Mazzini, 1
Saliceto Piazza C. Giusta, 1
Saluzzo Corso Italia, 57
Sampeyre Via Vittorio Emanuele II, 22
San Damiano Macra Via Roma, 15
San Michele Mondovì Via Nielli, 15/a
Sanfront Corso Guglielmo Marconi, 14
Santo Stefano Belbo Corso Piave, 82
Savigliano Piazza Schiapparelli, 10
Scarnafigi Piazza Vittorio Emanuele II, 14
Sommariva del Bosco Via Donatori del Sangue, 11/b
Tarantasca Via Carletto Michelis, 3
Torre San Giorgio Via Maestra, 17
Valdieri Corso Caduti in Guerra, 13
Valgrana Via Caraglio, 9
Verduno Piazza Castello, 3
Vernante Piazza de l’Ala, 4
Verzuolo Piazza Martiri della Libertà, 13
Vicoforte Via di Gariboggio, 43
Villafalletto Via Vittorio Veneto, 24
Villanova Mondovì Via Roma, 33/a
Vinadio Via Roma, 11
Provincia di Alessandria
Alessandria
Via Dante - ang. Via C. Lamarmora
P.zza G. Marconi - angolo Via Merula
Acqui Terme Corso Bagni, 54
Arquata Scrivia Via Libarna, 56
Borghetto Borbera Via San Michele, 2
Brignano - Frascata Via Roma, 44
Cabella Ligure Piazza della Vittoria, 7
Casale Monferrato
Via Aurelio Saffi, 73
Viale G. Giolitti, 2 (c/o ASL)
Piazza San Francesco, 10
Casalnoceto Piazza Martiri della Libertà, 10
Castelnuovo Scrivia Via Solferino, 11
Garbagna Via Roma, 21
Isola Sant’Antonio
Piazza del Peso - ang. Via C. Cavour
Monleale Corso Roma, 41/43
Novi Ligure Corso Marenco, 141
Ovada Via Torino, 155
Pontecurone Piazza Giacomo Matteotti, 5
Pozzolo Formigaro Via Roma, 31
Rocchetta Ligure Piazza Regina Margherita
Sale Piazza Giuseppe Garibaldi, 8
Sarezzano Piazza L. Sarzano, 4
Silvano d’Orba Via Cesare Battisti, 32
Stazzano Via Fossati, 2/a
Tortona Piazza Duomo, 13
Corso Don Orione, 46
Via Emilia, 422
S.P. per Pozzolo, 22 (Fraz. Rivalta Scrivia)
Corso della Repubblica, 2/d
Via Sacro Cuore (centro comm. Oasi)
P.zza Felice Cavallotti, 1 (c/o ASL)
Valenza
Via Lega Lombarda - ang. Via Cavallotti
Via Dante, 68
Vignole Borbera Via Alessandro Manzoni, 8
Villalvernia Via Carbone, 69
Villaromagnano Via della Chiesa
Provincia di Asti
Asti C.so Vittorio Alfieri, 137
Piazza 1° Maggio, 8 - ang. Via Rossi
Corso Savona, 104
Canelli Corso Libertà, 68
Nizza Monferrato Piazza G. Garibaldi, 70
Provincia di Biella
Biella Via Nazario Sauro, 2
Via XX Settembre, 10
Cossato Via Pajetta, 11/b
Via Lamarmora, 9
Provincia di Novara
Novara
Largo Don Luigi Minzoni, 1
Via Canobio, 10
Corso della Vittoria, 1
Arona Corso Liberazione, 39
Borgomanero Via Garibaldi, 92/94
P.za Martiri della Libertà, 21/23/25
Gozzano Via XXV Aprile, 127/129
Oleggio Via Mazzini, 15
Romentino Via dei Conti Caccia, 1
Trecate Piazza Dolce, 10
Provincia di Verbania
Verbania Piazza Matteotti, 18 (Fraz. Intra)
Cannobio Via Umberto I, 2
Ghiffa Corso Belvedere, 153
Provincia di Vercelli
Vercelli Piazza Cavour, 23
Borgosesia Via Sesone, 36
Provincia di Torino
Torino
Corso Dante, 57/b
Corso Vittorio Emanuele II, 107
Corso Vercelli, 81/b
Corso Unione Sovietica, 503
Via Madama Cristina, 30 - ang. Lombroso
Corso Orbassano, 236
Corso Matteotti, 15
Via Alfieri, 17
Piazza Adriano, 5
Corso L. Einaudi, 15/17
Piazza Gran Madre di Dio, 12/a
Corso Sebastopoli, 166
Corso Trapani, 98
C.so Inghilterra, 59/g ang. C.so Francia
Via Buozzi, 10
Corso Francia, 262
Corso Regina Margherita, 191
Airasca Via Roma, 101
Alpignano Via Cavour, 125
Bibiana Via C. Cavour, 25
Bricherasio Piazza Castelvecchio, 17
Chianocco Frazione Vernetto, 10
Chieri Piazza Dante, 10
Chivasso Via Po, 5
Collegno Via XXIV Maggio, 1
Ivrea Via Circonvallazione, 7
Moncalieri
Corso Savona, 6 ter
Strada Villastellone, 2
Nichelino Via Torino, 172
None Via Roma, 23
Pinerolo Via Savoia - ang. Via Trieste
Rivoli Via Rombò, 25/e
Rondissone Piazza Roma, 1
Santena Via Cavour, 43
Settimo Torinese Via Petrarca, 9
Villar Perosa Via Nazionale, 39/a
LOMBARDIA
Provincia di Milano
Milano Via Fabio Filzi, 23
valle d’aosta
Aosta Via Xavier de Maistre, 8
FRANCIA
Nizza Avenue de Suède, 5
Mentone Avenue de Verdun, 21
Antibes Avenue Robert Soleau, 15
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MARCHE
Provincia di Ancona
Ancona
Corso Stamira, 14
Viale C. Colombo, 56
Via Brecce Bianche, 68/i
Via Umani
Agugliano Contrada Gavone, 2/b (c/o Socopad)
Belvedere Ostrense Via Brutti, 7
Castelfidardo Via C. Battisti, 5
Chiaravalle Via della Repubblica, 83
Cupramontana Piazza Cavour, 11
Fabriano
Piazza Miliani, 16
Via Corsi, 3
Falconara
Via IV Novembre, 8
Via Flaminia, 396
(Fraz. Palombina Vecchia)
Filottrano Via Oberdan, 5
Jesi
Corso Matteotti, 1
Via San Giuseppe, 38
Piazza Ricci, 4
Piazza Vesalio, 5
Via Leone XIII (c/o New Holland Fiat Spa)
Jesi Zipa Via Don Battistoni, 4
Loreto Via Bramante
Maiolati Spontini
Via Risorgimento, 52 (Fraz. Moie)
Montemarciano
Piazza Magellano, 15 (Fraz. Marina)
Monterado Via 8 Marzo, 7 (Fraz. Ponte Rio)
Morro d’Alba Via Morganti, 56
Numana Via Pascoli, 1A
Offagna Via dell’Arengo, 38
Osimo
Piazza del Comune, 4
Via Ticino, 1 (Fraz. Padiglione)
Ostra Pianello Via Arceviese, 55
Rosora Via Roma, 132 (Fraz. Angeli)
Santa Maria Nuova
Via Risorgimento, 68 (Fraz. Collina)
Sassoferrato Piazza Bartolo, 17
Senigallia
Corso 2 Giugno, 76
Via R. Sanzio, 288 (Fraz. Cesano)
Serra de’ Conti Piazza Leopardi, 2
Provincia di Ascoli Piceno
Ascoli Piceno Viale Indipendenza, 42
Acquasanta Terme Piazza Terme, 6
Castel di Lama Via Salaria, 356
Grottammare Via Montegrappa, 12
San Benedetto del Tronto Piazza Matteotti, 6
Piazza Setti Carraro (Fraz. Porto d’Ascoli)
Provincia di Fermo
Fermo
Contrada Campiglione, 20
Via Dante Zeppilli, 56
Falerone
Piazza della Concordia, 4
Viale della Resistenza, 168 Y (Fraz. Piane)
Massa Fermana Via Ada Natali, 5
Montegranaro Via Fermana Nord
Monte Urano Via Papa Giovanni XXIII, 37
Petritoli Contrada S. Antonio, 217 (Fraz. Valmir)
Porto S. Giorgio Via Tasso
Porto Sant’Elpidio Via Mazzini, 115
Sant’Elpidio a Mare Viale Roma, 1
Torre San Patrizio Via Mazzini, 19A
Provincia di Macerata
Macerata
Viale Don Bosco
Corso Cavour, 34
Via Bramante, 103 (Fraz. Piediripa)
Appignano Via Borgo S. Croce, 7
Camerino Piazza Caio Mario, 5
Castelraimondo Piazza della Repubblica, s.n.c.
Civitanova Marche Corso Umberto I, 16
Corridonia Piazzale della Vittoria, 1
Loro Piceno Piazzale G. Leopardi, 8
Matelica Viale Martiri della Libertà, 31
Monte San Giusto Via Verdi, 11
Monte San Martino Via Roma, 32
Pollenza Via V. Cento, 6 (Casette Verdini)
Potenza Picena
Piazza Douhet, 23 (Fraz. Porto)
Via Marefoschi, 1
Recanati Via Cesare Battisti, 20
San Ginesio Piazza Gentili, 31
San Severino Marche Viale Europa
Sarnano Piazza della Libertà, 76
Tolentino Piazza dell’Unità
Treia Corso Garibaldi, 110 (Fraz. Passo Treia)
Provincia di Pesaro - Urbino
Pesaro
Piazzale Garibaldi, 22
Via Antonio Fratti, 23
Urbino Viale Comandino
Acqualagna Via Flaminia, 79
Carpegna Via R. Sanzio, 12
Colbordolo Via Nazionale, 143 (Fraz. Morciola)
Fano Via dell’Abbazia, s.n.c.
Fossombrone
Piazza Dante, 24
Via delle Mura, 11 (Fraz. Isola di Fano)
Lunano Corso Roma, 79
Macerata Feltria Via Antini, 22
Montecopiolo
Via Montefeltresca, 37 (Fraz. Villagrande)
Montelabbate
Via Provinciale, 169 (Fraz. Osteria Nuova)
Novafeltria Piazza Vittorio Emanuele, 1
Pennabilli
Via Marecchiese, 76/b (Fraz. Ponte Messa)
Piobbico Via Roma, 10/12
San Leo Via Montefeltro, 24
Sant’Agata Feltria Via Vittorio Emanuele II, 1
Sant’Angelo in Vado Piazza Mar del Plata, 6
Sassofeltrio Via Risorgimento, 9 (Frazione Fratte)
Urbania Via Roma, 24
ABRUZZO
Provincia di Chieti
Atessa Via Piazzano, 70 (Fraz. Piazzano)
Francavilla al Mare Via della Rinascita, 2
Guardiagrele Via Orientale, 17
Lanciano Viale Rimembranze, 16
Sant’Eusanio del Sangro Corso Margherita
San Giovanni Teatino
Via Aldo Moro, 8 (Fraz. Sambuceto)
Vasto Via Giulio Cesare, 5
Provincia di Pescara
Pescara
Via Michelangelo, 2
Via Latina, 14
Via Nazionale Adriatica Nord, 126
Viale Marconi, 21
Provincia di Teramo
Teramo Piazza Garibaldi, 143
Alba Adriatica Via Mazzini, 124
Giulianova Via Orsini, 28 (Fraz. Spiaggia)
Roseto degli Abruzzi Via Nazionale, 286
CAMPANIA
Provincia di Avellino
Avellino Via Dante Alighieri, 20/24
Montoro Inferiore Via Nazionale, 161/167
Provincia di Benevento
Benevento
Via Delcogliano, 29
Piazza Risorgimento, 11/12
Buonalbergo Viale Resistenza, 3
Limatola Via Garibaldi, 2
San Giorgio la Molara Via S. Ignazio, 7/9
Telese Viale Minieri, 143
Alvignano Corso Umberto I, 287
Aversa Via Salvo D’Acquisto
Caiazzo Via Attilio Apulo Caiatino, 23
Grazzanise
Via del Medico, 1 (c/o Aeronautica Militare)
Marcianise
Strada Provinciale 22 (Oromare)
Piedimonte Matese Via Cesare Battisti
Pietramelara Piazza S. Rocco, 18
Pietravairano
Via Padre Cipriani Caruso, s.n.c.
Pignataro Maggiore Via Trento
Riardo Via San Leonardo, 30/32
Santa Maria Capua Vetere
Via Pezzella Parco Valentino
Succivo Via De Nicola - angolo Via Tinto
Teano Viale Italia
Vairano Patenora
Via della Libertà, 10 (Fraz. Vairano Scalo)
Via delle Rimembranze, 56
Vitulazio Via Rimembranze, 37
Provincia di Napoli
Napoli
Corso Amedeo di Savoia, 243
Via Mergellina, 33/34
Via dell’Epomeo, 427/431
Via Cesario Console, 3C
Via Crispi, 2 - ang. Piazza Amedeo
Piazza Vittoria, 7
Galleria Vanvitelli, 42
Piazza del Gesù Nuovo, 31
Via Santa Brigida, 36
Via Santo Strato, 20/d
Piazza Garibaldi, 127
Via Salvator Rosa, 254/b - 255
Via Caravaggio, 52
Via Giovanni Manna, 11
Via Acton, 1 (c/o Marina Militare)
Piazza Giovanni Bovio, 6
Afragola Corso Garibaldi, 38
Boscoreale Via Papa Giovanni XXIII, 16
Cardito Piazza S. Croce, 71
Casalnuovo di Napoli
Via Arcora Provinciale, 60
Casamicciola Terme Piazza Marina, 29
Cercola Via Domenico Ricciardi, 284/286
Forio d’Ischia Corso F. Regine, 24/25
Grumo Nevano Via Cirillo, 78
Ischia Porto Via A. de Luca, 113/115
Melito Via Roma, 33/43
Monte di Procida Corso Garibaldi, 20/22
Nola
Via Mario de Sena, 201
Piazza Giordano Bruno, 26/27
Pozzuoli
Corso Vittorio Emanuele, 60
Via Domiziana (c/o Accademia Aeronautica)
Qualiano Via S. Maria a Cubito, 146
Quarto Via Campana, 286
San Giuseppe Vesuviano Via Astalonga, 1
Sant’Antimo Via Cardinale Verde, 31
Terzigno Via Diaz, 69
Torre del Greco Corso Vittorio Emanuele, 77/79
Volla Via Rossi, 94/100
Provincia di Caserta
EMILIA ROMAGNA
Caserta
Via C. Battisti, 42
Via Douhet, 2/a (c/o Scuola Aeron. Milit.)
Forlì Viale Vittorio Veneto, 7D/7E
Cesena Via Piave, 27
Provincia di Forlì - Cesena
Cesenatico Viale Roma, 15
Forlimpopoli Viale Giacomo Matteotti, 37
Provincia di Ravenna
Ravenna Piazza Baracca, 22
Cervia Via G. Di Vittorio, 39
Faenza Via Giuliano da Maiano, 34
Provincia di Rimini
Rimini
Via Caduti di Marzabotto, 6
Via Flaminia, 175
Via Luigi Poletti, 28
Bellaria - Igea Marina Via Uso, 25/c
Cattolica Via Fiume, 37
Riccione Viale Ceccarini, 207
Santarcangelo di Romagna Via Braschi, 36
LAZIO
Provincia di Frosinone
Frosinone
Via Maria, 63
Via Armando Fabi, 192 (c/o Aeronautica Mil.)
Collazzone Piazza Umberto I, 10
Deruta Via Tiberina, 184/186
Foligno Viale Arcamone
Fossato di Vico
Largo St. Ambroix (Fraz. Osteria del Gatto)
Giano dell’Umbria
Via Roma, 63 (Fraz. Bastardo)
Gualdo Cattaneo Via E. Cattaneo, 1
Magione Via della Palazzetta (loc. Bacanella)
Marsciano Via dei Partigiani, 12
Massa Martana Via Roma, 42
Montecastello di Vibio
Piazza Michelotta di Biordo, 10
Todi
Piazza del Popolo, 27
Via Tiberina, 64
Via Tiberina, 194 (Fraz. Pantalla)
Provincia di Terni
Terni Corso del Popolo, 13
Acquasparta Via Cesare Battisti, 5/d
Avigliano Umbro Corso Roma - ang. Via S. Maria
Provincia di Roma
Roma
Via Nazionale, 256
Viale Buozzi, 78
Via Croce, 10
Via Cipro, 4/a
Via Gasperina, 248
Piazza Mignanelli, 4
Via L. di Breme, 80
Via Prenestina Polense, 145 (Fraz. Castelverde)
Albano Laziale Via Marconi, 7
Fonte Nuova Via Nomentana, 68
Guidonia Montecelio
Piazza Colleverde (Fraz. Colleverde)
Via Nazionale Tiburtina, 122 (Fraz. Villalba)
Via Roma, 26
Piazza B. Buozzi, 10
Lanuvio Piazza Carlo Fontana, 2
Marcellina Via Regina Elena, 35/c
Marino Piazzale degli Eroi, 4
Palombara Sabina Via Ungheria, 7
San Polo dei Cavalieri Via Roma, 12
Tivoli
Piazza S. Croce, 15
Via di Villa Adriana
MOLISE
Provincia di Campobasso
Campobasso Via Umberto I
Bojano Corso Amatuzio, 86
Larino Via Jovine, 12
Termoli Via Abruzzi
Provincia di Isernia
Isernia Via Dante Alighieri, 25
Venafro Via Campania, 69
UMBRIA
Provincia di Perugia
Perugia
Via dei Filosofi, 36
Via Settevalli, 133
Via Deruta
(Fraz. San Martino in Campo)
Via P. Soriano, 3
(Fraz. Sant’Andrea delle Fratte)
Bastia Umbra
Via Roma, 25 - angolo Via de Gasperi
Città di Castello Via Buozzi, 22
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CALABRIA
Provincia di Cosenza
Cosenza
Via Caloprese
Via XXIV Maggio, 45
Corso Mazzini, 117
Via F. Migliori (c/o Ospedale)
Via degli Stadi, 57/d2
Via dei Mille
Corso Telesio, 1
Acri Via Padula, 95
Aiello Calabro Via Luigi de Seta, 66/68
Altomonte Via Aldo Moro, 34
Amantea Via Elisabetta Noto, 1/3
Aprigliano Via Calvelli, 5
Belvedere Marittimo - Marina Via G. Grossi, 71
Bisignano Via Simone da Bisignano
Cariati Via S. Giovanni, 6
Carolei Via Rendano, 13
Cassano allo Jonio Corso Garibaldi, 30
Castrovillari Corso Garibaldi, 79/83
Cetraro - Marina Via Lucibello, 10/14
Corigliano Calabro - Scalo
Via Nazionale, 101/103
Corigliano Calabro Via Barnaba Abenante, 7
Crosia Via Nazionale, 74/80 (Fraz. Mirto)
Diamante Via Vittorio Emanuele, 77
Francavilla Marittima Via Provinciale, 1/3
Fuscaldo Via Maggiore Vaccari, 14
Grimaldi Via IV Novembre, 29
Lago Via P. Mazzotti, 10/12/14
Lungro Via Skanderberg, 86
Montalto Uffugo
Corso Garibaldi, 25
Via Manzoni, 57 (Fraz. Taverna)
Morano Calabro Via Porto Alegre, 10
Mormanno Via San Biase, 1
Paola Via del Cannone, 34
Praia a Mare Via Telesio, 2
Rende
Piazza degli Eroi, 7
Via A. Volta, 15 (Fraz. Quattromiglia)
Viale Kennedy, 59/e (Fraz. Roges)
Rocca Imperiale Marina Via Taranto, 15
Roggiano Gravina Via Vittorio Emanuele II, 136
Rogliano Via Guarasci, 31
Rossano Via G. Rizzo, 14
Rossano - Scalo Via Nazionale, 9/15
San Demetrio Corone Via D. Alighieri, 10
San Giovanni in Fiore Via Gramsci
San Lucido Via Regina Elena, 64/72
Saracena Via G. La Pira, 128/130
Scalea Via M. Bianchi, 2
Spezzano Albanese P.zza della Repubblica, 5/1
Spezzano della Sila
Via Roma
Via del Turismo, 77 (Fraz. Camigliatello Silano)
Torano Castello Strada Provinciale Variante, 4
Trebisacce Via Lutri, 146
Provincia di Catanzaro
Catanzaro
Piazza Indipendenza, 44
Corso Mazzini, 177/179
Via Nazario Sauro, 17 (Fraz. Lido)
Via A. Lombardi - Area Metroquadro Chiaravalle Centrale Piazza Dante, 8
Girifalco Via Milano
Guardavalle Via Giordano, 4
Lamezia Terme
Corso Nicotera, 135
Via del Mare
Nocera Terinese Via Santa Caterina, 126/130
Sersale Via A. Greco
Soverato Corso Umberto I, 167/169
Soveria Mannelli Piazza dei Mille, 2
Squillace Vico Generale Pepe
Tiriolo Via Fratelli Bandiera
Provincia di Crotone
Crotone
Via Mario Nicoletta, 32
Via Cutro
Cirò Marina Via Mazzini, 17/19
Cotronei Via Laghi Silani, 40
Cutro Via Nazionale
Petilia Policastro Via Arringa, 178
Strongoli Corso Biagio Miraglia, 115
Provincia di Reggio Calabria
Reggio Calabria
Corso Garibaldi, 144
Viale Calabria, 197/199
Via Argine Destro Annunziata, 81
Bagnara Calabra
Corso Vittorio Emanuele II, 167
Bianco Via Vittoria, 52
Bovalino Via XXIV Maggio - ang. V. Sicilia
Bova Marina Via Maggiore Pugliatti, 2
Brancaleone Via Zelante
Cinquefrondi Via Roma, 24
Cittanova Via Roma, 44
Delianuova Via Umberto I, 277
Gioia Tauro Via Roma, 52 - ang. Via Duomo
Gioiosa Ionica Piazza Vittorio Veneto, 8/9
Laureana di Borrello Via IV Novembre, 9
Locri Via Garibaldi, 71
Marina di Gioiosa Ionica Via Carlo Maria, 12/14
Melito di Porto Salvo Via Papa Giovanni XXIII
Molochio Piazza Umberto I, 1
Monasterace Marina
Via Nazionale Jonica, 113/114
Palmi Via Roma, 44
Polistena Piazza Bellavista, 1
Rizziconi Via Capitolo, 13
Roccella Jonica Via XXV Aprile, 16
Rosarno Corso Garibaldi, 28
San Ferdinando Via Rosarno - ang. Via Bruno
Sant’Eufemia d’Aspromonte
Via Maggiore Cutrì, 10/a
Siderno C.so Garibaldi (Fraz. Marina)
Stilo Viale Roma
Taurianova Piazza Garibaldi, 17
Villa S. Giovanni Viale italia, 30
Provincia di Vibo Valentia
Vibo Valentia
Viale Matteotti 23/25
Via Emilia, 8 (Fraz. Vibo Marina)
Arena Piazza Generale Pagano, 1
Briatico Via Guido Rossa, 14/b
Mileto Via Cattolica, 50/b-c
Nicotera Via Luigi Razza, 1
Pizzo Calabro Via Nazionale
Serra San Bruno Via de Gasperi, 52
Soriano Calabro Via Giardinieri
Tropea Viale Stazione
BASILICATA
Provincia di Matera
Matera
Via del Corso, 66
Via Annunziatella, 64/68
Via Dante - ang. Via dei Bizantini
Bernalda
Corso Umberto, 260
Via Eroi della Bonifica (Fraz. Metaponto)
Ferrandina Via Mazzini, 20
Montalbano Jonico Piazza Vittoria, 3
Montescaglioso Via Indipendenza, 83
Pisticci Via M. Pagano, 25
Via Portella delle Ginestre
(Fraz. Marconia)
Policoro Via G. Fortunato, 2
San Mauro Forte Corso Umberto, 12
Tursi Via Eraclea, 2
Provincia di Potenza
Potenza
Via Alianelli, 2
Via Angilla Vecchia, 5
Via Dante, 16/20
Via del Gallitello
Avigliano Viale della Vittoria, 4
Brienza Viale della Stazione, 102
Genzano di Lucania
Corso Vittorio Emanuele, 180/184
Lagonegro Via Colombo, 25
Latronico Corso Vittorio Emanuele II, 105
Lauria Piazza Plebiscito, 72
Maratea Via Pietra del Sole, 3A/5
Marsicovetere Via Nazionale, 53 (Fraz. Villa d’Agri)
Melfi Piazza Mancini Abele
Muro Lucano Via Roma, 60/62
Palazzo San Gervasio Via Isonzo, 14
Rionero in Vulture Via Galliano
Rivello Via Monastero, 73
Rotonda Via dei Rotondesi in Argentina, s.n.c.
San Fele Via Costa, 12
Sant’Arcangelo Viale Isabella Morra, 48
Senise Via Amendola, 33/39
Tito Scalo
Contrada Serra Villaggio Mancusi, 72
Venosa Via Fortunato, 66 - angolo Via Melfi
Campania
Provincia di Salerno
Salerno
Via S. Margherita, 36
Viale Kennedy, 11/13
Via G. Cuomo 29
Via Settimio Mobilio, 26
Agropoli Via Risorgimento - ang. Via Bruno
Amalfi Via Fra’ Gerardo Sasso, 10/12
Angri Via Papa Giovanni XXIII, 48
Atena Lucana Via Stazione
Baronissi Corso Garibaldi, 197
Battipaglia Via Salvator Rosa, 98
Buccino Piazza San Vito
Buonabitacolo Via Nazionale, 178
Campagna Via Quadrivio Basso (Fraz. Quadrivio)
Castel San Giorgio Via Guerrasio, 42
Cava dei Tirreni Piazza Duomo, 2
Corbara Via Ten. Ligula Santolo
Eboli Via Amendola, 86
Marina di Camerota Via Bolivar, 54
Mercato San Severino
Corso Armando Diaz, 130
Minori Via Vittorio Emanuele, 9
Nocera Inferiore Via Barbarulo, 41
Pontecagnano Piazza Risorgimento, 14
Roccapiemonte Piazza Zanardelli, 1
San Cipriano Picentino
Via S. Giovanni, 10 (Fraz. Filetta)
Sant’Egidio del Monte Albino
Via SS. Martiri, 13 (Fraz. San Lorenzo)
Sapri Via Marsala, 44
Sarno Via Matteotti, 72/74
Teggiano Via Prov. del Corticato (Fraz. Pantano)
Vallo della Lucania Via G. Murat
PUGLIA
Provincia di Bari
Bari
Piazza Umberto I, 85 (Fraz. Carbonara)
Via Napoli, 53/55 (Fraz. Santo Spirito)
Via Bari, 27/c (Fraz. Torre a Mare)
Via Toma, 12
Viale Pio XII, 46-46/a
Viale de Blasio, 18
Corso Italia, 123
Via Pescara, 16
Via Lembo, 13/15
Via Melo, 151
Corso Mazzini, 138/b
Via Dalmazia, 223
Via Tridente, 40/42
Via M. Cristina di Savoia, 6/12
Via Calefati, 112
Acquaviva delle Fonti Piazza Garibaldi, 49/52
Adelfia Via G. Marconi, 11/a
Altamura Via Maggio 1648, 22/b-22/c
Bitetto Piazza Armando Diaz, 38
Bitonto Piazza della Noce, 14
Bitritto Piazza Aldo Moro, 35
Capurso Via Torricelli, 23/25
Casamassima Corso Umberto I, 48
Castellana Grotte Piazza della Repubblica, 2
Conversano
Via Padre Michele Accolti Gil 29/a
Corato V.le V. Veneto 160/166
- ang. Via Lega Lombarda
Gioia del Colle Corso Garibaldi, 55
Giovinazzo Via G. Gentile, 1
Gravina in Puglia
Corso Vittorio Emanuele, 30/c
Grumo Appula Via G. d’Erasmo, 12
Modugno Piazza Garibaldi, 109
Mola di Bari Piazza degli Eroi, 31
Molfetta
Via Tenente Fiorini, 9
Corso Fornari, 163 A
Monopoli
Via Marsala, 2
Via Fra’ G. Ippolito, 29
Noci Largo Garibaldi, 51
Noicattaro Corso Roma, 8/10/12
Polignano a Mare Piazza Aldo Moro, 1
Putignano Via Tripoli, 98
Rutigliano Piazza XX Settembre, 8
Ruvo di Puglia Via Monsignor Bruni, 14
Sannicandro di Bari Piazza IV Novembre, 15
Santeramo in Colle Via S. Lucia, 78
Terlizzi Via Gorizia, 86/d
Toritto Piazza Aldo Moro, 48
Triggiano Via Carroccio, 5
Turi Via A. Orlandi, 15
Valenzano Via Aldo Moro
Provincia di Barletta-Andria-Trani
Andria
Piazza Marconi, 6/10
Via Barletta, 137/139
Barletta
Piazza Caduti, 21
Largo delle Palme, 8
Trani Corso Italia, 17/b
Bisceglie Via Aldo Moro, 5
Canosa di Puglia Via Imbriani, 30/34
San Ferdinando di Puglia
Via Papa Giovanni XXIII, 44
Provincia di Brindisi
Brindisi
Corso Roma, 39
Via Commenda, 2
Cisternino Via Roma, 57
Erchie Via Grassi, 19
Fasano
Via Forcella, 66
Via Nazionale, 45 (Fraz. Pezze di Greco)
Via Teano, 37 (Fraz. Montalbano)
Francavilla Fontana Via Roma, 24
Latiano Via Ercole d’Ippolito, 25
Mesagne Via Torre S. Susanna, 1
Oria Via Mario Pagano, 151
Ostuni Via L. Tamborrino, 2
San Pietro Vernotico Via Stazione, 31
San Vito dei Normanni Piazza Vittoria, 13
Torre Santa Susanna Via Roma, 38
Provincia di Foggia
Foggia
Viale Ofanto, 198/c
Via S. Pellico, 33/37
Cerignola Via Di Vittorio, 83
Ischitella Corso Umberto I, 111/113
Lucera Via IV Novembre, 77
Manfredonia Corso Roma, 22/24
Margherita di Savoia Corso V. Emanuele, 23
San Giovanni Rotondo Piazza Europa
San Severo
Via Carso, 10
Corso Garibaldi, 87
Sant’Agata di Puglia Piazza XX Settembre, 11
Stornarella Corso Garibaldi, 22
Troia Via Vittorio Emanuele, 1
Vico del Gargano Via S. Filippo Neri, 10
Provincia di Lecce
Lecce
Viale Lo Re, 48
Via Gabriele D’Annunzio, 47/b
Campi Salentina Via Garibaldi, 6/8
Casarano Via F. Bottazzi - ang. Via Alto Adige
Copertino Via Re Galantuomo, 24
Galatina Via Roma, 26
Gallipoli Corso Roma, 42/44
Maglie Piazza O. de Donno
Nardò Via Duca degli Abruzzi, 58
Ruffano Piazza IV Novembre, 11
Squinzano Via Nuova, 25
Trepuzzi Corso Umberto I, 114
Tricase Via G. Toma, 30
Veglie Via Parco Rimembranze, 30
Provincia di Taranto
Taranto
Corso Umberto I, 71
Corso Italia, 202
Via C. Battisti, 172
Castellaneta Piazza Municipio, 7
Fragagnano Via Garibaldi, 14
Ginosa Corso Vittorio Emanuele, 92
Grottaglie Via Matteotti, 72/78
Laterza Piazzale Saragat, 11
Lizzano Via Dante, 78
Manduria Via per Maruggio, 9
Martina Franca Via D’Annunzio, 34
Massafra Corso Italia, 27/29
Palagianello Via Carducci, 11
San Giorgio Jonico Via Cadorna, 11
Sava Corso Umberto, 110
Niardo Piazza Cappellini, 3
Ome Piazza Aldo Moro, 7
Palazzolo sull’Oglio Via Firenze, 88/90 (Fraz. San Pancrazio)
Piancogno
Via Vittorio Veneto, 7 (Fraz. Cogno)
Via XI Febbraio, 1 (Fraz. Pianborno)
Pian Camuno Piazza Giuseppe Verdi, 8
Pisogne Via Provinciale, 6 (Fraz. Gratacasolo)
Ponte di Legno Via Cima Cadi, 5/7/9
Provaglio d’Iseo
Via Roma, 12
Via S. Filastro, 18 (Fraz. Provezze)
Rodengo Saiano Via Guglielmo Marconi, 11/b
Rovato Corso Bonomelli, 13/17
Sonico Via Nazionale (c/o c.c. Italmark)
Temù Via Roma, 71/73
Torbole Casaglia Piazza Repubblica, 25/26
Travagliato Via Andrea Mai, 5
Vezza d’Oglio Via Nazionale, 65
Provincia di Bergamo
Ardesio Piazza Alessandro Volta, 8/9
Casazza Piazza della Pieve, 1
Castione della Presolana
P.zza Martiri di Cafalonia, 1
Clusone Viale Gusmini, 47
Costa Volpino Via Cesare Battisti, 34
Lovere Via Gregorini, 43
Rogno Piazza Druso, 1
Sarnico Via Roma, 68
Sovere Via Roma, 20
Villongo Via J. F. Kennedy, 5
Provincia di Como
Dongo Via Statale, 77
Menaggio Via Lusardi, 74/76
Provincia di Sondrio
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LOMBARDIA
Provincia di Brescia
Brescia
Via Duca degli Abruzzi, 175
Viale Bornata, 2
Angolo Terme Piazza degli Alpini, 4
Artogne Via Geroni, 12
Berzo Demo Via San Zenone, 9
Berzo inferiore Piazza Umberto I, 35/a
Bienno Piazza Liberazione, 2
Borno Piazza Umberto I, 13
Breno Piazza della Repubblica, 1/2
Capo di Ponte Viale Stazione, 16
Cazzago S.M. Via del Gallo, 2 (Fraz. Bornato)
Cedegolo Via Roma, 26/28
Ceto Loc. Badetto, 23
Cevo Via Roma, 44
Cividate Camuno Via Cortiglione
Coccaglio Largo Torre Romana, 4
Corte Franca Via Roma, 78
Corteno Golgi Via Roma, 1
Darfo Boario Terme
Via Roma, 12
Viale della Repubblica, 2
Corso Lepetit, 77 (Fraz. Fraz. Corna)
Edolo Via Porro, 51
Esine Piazza Giuseppe Garibaldi, 4/6
Gianico Via XXV Aprile, 7/9
Malegno Via Lanico, 36
Malonno Via G. Ferraglio, 4
Marone Via Cristini, 49
Sondrio Via Trento, 50 - ang. Via Alessi
Aprica Corso Roma, 238
Bormio Via Don Peccedi, 11
Chiavenna Via Maloggia, 1
Grosio Via Roma, 1
Livigno Via Dala Gesa, 141/a
Morbegno Piazza Caduti per la Libertà, 9
Piantedo Via Nazionale, 875
Tirano P.zza Marinoni, 4
Villa di Tirano Via Roma, 20
www.bancodisangiorgio.it
LIGURIA
Provincia di Genova
Genova
Via C.R. Ceccardi, 13/r
Corso Torino, 61/r
Via Pastorino, 118 (Loc. Bolzaneto)
Via Sestri, 188/190r (Sestri Ponente)
Piazza G. Lerda, 10/r (Loc. Voltri)
Via Cinque Maggio, 101/r (Priaruggia)
Via C. Rolando, 123 (Sampierdarena)
Via Antonio Gramsci, 8/r
Via Marina di Robilant, 5
Via Molassana, 82/r
Via Fieschi, 11
Piazza Leopardi, 6
Via Merano, 1/a Nero
Borzonasca Via Angelo Grilli, 15
Chiavari Corso Dante Alighieri, 36
Cicagna Via Statale, 8 - angolo Via Dante, 1
Lavagna C.so Buenos Aires, 84 (Fraz. Monleone)
Mezzanego Via Capitan Gandolfo, 138
Rapallo
Via Alessandro Lamarmora, 4
Via A. Diaz, 6
Recco Via Roma, 56r
Santo Stefano d’Aveto Via Razzetti, 11
Sestri Levante Via Fascie, 70
Provincia di Imperia
Imperia
Viale Giacomo Matteotti, 13
Via Giacomo Puccini, 7
Bordighera Via Treviso,1 - ang. Via V. Emanuele II
Sanremo Via Roma, 54/60
Taggia Via Boselli, 62 (Fraz. Arma)
Ventimiglia
Via Ruffini, 8/a
Via Roma, 64/b
Provincia di La Spezia
La Spezia
Via Nazionale, 171
Via G. Pascoli, 22
Via Chiodo, 115
Via San Bartolomeo (c/o ASW Research)
Via di Monale, 23/29
Corso Cavour, 190
Piazza d’Armi (c/o comprensorio Maridipart)
Via Fiume, 152
Via del Canaletto, 307
Castelnuovo Magra
Via Aurelia, 129 (Fraz. Molicciara)
Lerici Calata G. Mazzini, 1
Sarzana
Via Pietro Gori, 15/a
Via Muccini, 48
Portovenere Via Lungomare, 47
Provincia di Savona
Savona
Piazza Aurelio Saffi, 7/r
Corso Vittorio Veneto, 93
Alassio Via Mazzini, 55
Albenga
Via Cesare Battisti, 4
Via Dalmazia, 43
Albisola Superiore Corso Giuseppe Mazzini, 189
Andora Piazza Santa Maria, 7
Cairo Montenotte
Corso Marconi, 240 (Fraz. S. Giuseppe)
Celle Ligure Via Boagno, 12
Finale Ligure Via Concezione, 10r
Loano Via Stella, 34
Vado Ligure Via Aurelia, 148
TOSCANA
Provincia di Massa - Carrara
Carrara Via Galileo Galilei, 32
www.ubibancapi.it
www.bdg.ch
ABRUZZO
L’Aquila Via F. Savini
Pescara Piazza Rinascita, 6/9
CAMPANIA
Napoli Via Santa Brigida, 63
Pomigliano d’Arco Via Roma, 31
Caserta Corso Trieste, 170
Salerno Via SS. Martiri Salernitani, 25
SVIZZERA
www.centrobanca.it
Napoli Via S. Brigida, 51
Bologna Piazza Calderini, 2/2
Roma Via dei Crociferi, 44
Milano Corso Europa, 16
Jesi Via Don Battistoni, 4
Torino Via Alfieri, 17
Losanna Avenue du Théâtre, 14
Lugano Via Pretorio, 9
Ginevra Rue de Candolle, 26
LIGURIA
Genova
Via Roma, 5
Via XX Settembre, 33
LAZIO
www.banca247.it
Bergamo Via Stoppani, 15 (sede operativa)
Roma
P.zza Giuliano della Rovere, 9-11/a
(Fraz. Lido di Ostia)
Via Vincenzo Bellini, 27
Latina Viale Le Corbusier, snc
LOMBARDIA
Milano
Piazza Giovine Italia, 3
Corso Giacomo Matteotti, 1
Brescia Via Cefalonia, 74
Cremona Via Rialto, 20
Monza Via Girolamo Borgazzi, 7
www.iwbank.it
Milano
Corso Europa, 20
Via Cavriana, 20
PIEMONTE
Torino Corso Re Umberto I, 47
PUGLIA
Bari Via Nicolò dell’Arca, 9-9a
www.ubibanca.lu
TOSCANA
LUSSEMBURGO
Firenze
Via Bettino Ricasoli, 21
Viale G. Matteotti, 42
Arezzo Via XXV Aprile, 28-28/a
San Giovanni Valdarno Corso Italia, 117
Grosseto Via Giacomo Matteotti, 32
Livorno Via Scali d’Azeglio, 46/50
- ang. Via Cadorna
Pisa Via G.B. Niccolini, 8/10
UMBRIA
Terni Via della Bardesca, 7/11
37/a, Avenue J.F. Kennedy, L.
Germania
Monaco Prannerstrasse, 11
spagna
Madrid
Torre Espacio - Planta 45
Paseo de la Castellana, 259
Calendar of corporate events of UBI Banca
for 2011
Date
Event
14th November 2011
Approval of the interim financial report as at
and for the period ended 30th September 2011.
The date for the presentation of the quarterly results to the financial community will
be announced in due course.
Contacts
All information on periodic financial reporting is available on the website
www.ubibanca.it
Investor relations: Tel. 035 3922217
Email: [email protected]
Institutional communications and relations with the press
Tel. 030 2433591
Email: [email protected]
Registered shareholders’ office: Tel. 035 3922312
email: [email protected]