UBI Banca Group

Total funding
Total group funding, consisting of total amounts administered on behalf of customers, stood at
€174.9 billion a decrease of almost €10 billion over twelve months. This was attributable, on
the one hand, to the negative trend for indirect funding (-7.7%), penalised in the second half by
the impact on prices of the progressive deterioration on financial markets, and on the other to
the fall in direct funding (-3.7%), affected by the contractions in repurchase agreements with
the Cassa di Compensazione e Garanzia (CCG – a central counterparty clearing house) taken
out to fund the owned securities portfolio (-€4.6 billion).
Net of repos with the CCG, total Group funding fell by €5.4 billion (-3.1%) which basically reflects
the effect of market prices on indirect funding.
Total funding from customers
31.12.2011 % 31.12.2010 %
Changes
Figures in thousands of euro amount %
Direct funding 102,808,654 58.8% 106,760,045 57.8% -3,951,391 -3.7%
Indirect funding 72,067,569 41.2% 78,078,869 42.2% -6,011,300 -7.7%
of which: assets under management 36,892,042 21.1% 42,629,553 23.1% -5,737,511 -13.5%
Total funding from customers 174,876,223 100.0% 184,838,914 100.0% -9,962,691 -5.4%
As concerns market segmentation by customer 2 , management accounting figures for end of
year volumes of total funding for the network banks and for UBI Banca Private Investment
show that at the end of the year 66.1%
of the total came from the retail market
(65.9% in December 2010), 26.4% from
the private banking market (26.8%),
5.8% from the corporate market (6%)
and 1.7% from institutional customers
(1.4%).
120,000
100,000
Direct funding and indirect funding
(end of quarter totals in millions of euro)
In terms of annual changes, those same
management accounting figures show
generalised negative trends.
In detail, the retail market fell as a
whole by 4.2%, attributable primarily to
private individual customers (-3.9%)
and to a lesser extent to small
businesses (-2.6%) and to the BPI
network of financial advisors (-8.2%);
the private banking market contracted
by 5.7%, while the reduction for the
corporate market was 6.4%, due
primarily to the large corporate segment
(-11.1%).
Only the institutional market moved in
the opposite direction (+16.9%).
80,000
60,000
40,000
20,000
0
1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q
2008
2009
2010
2011
Direct funding Indirect funding
2 Retail: comprises mass market customers (private individuals with financial wealth – direct and indirect funding – of less than €50
thousand), affluent customers (private individuals with financial wealth – direct and indirect funding - of between €50 thousand and
€500 thousand) and small businesses (firms with a turnover of up to €15 million);
Corporate: comprises corporate clients (firms with a turnover of between €15 million and €250 million) and large corporate clients
(groups of firms and firms with turnover of over €250 million).
Private banking: comprises customers consisting of private individuals with financial wealth (direct and indirect funding) of greater
than €500 thousand.
105