UBI Banca Group

Agreement between BPCI and Altachiara Italia Spa
Consistent with the policies contained in the new Business Plan to limit the use of external distribution
networks in the residential mortgage sector, a co-operation agreement signed in 2007 with Altachiara came
to an end in August. That company operated as a financial intermediary pursuant to Art. 106 of the
Consolidated Banking Act and the agreement was for the distribution of Banca Popolare Commercio e
Industria mortgages to non Group private individual customers. It is underlined that in order to guarantee
the quality of the loans granted, the agreement required the loans to be processed, approved and concluded
directly by BPCI – which entered into the contract directly with the customer – after verifying the existence
of the necessary documentation produced by the agents and brokers, inclusive of declarations relating to
anti-money laundering, criminal activities and privacy laws.
The total amount in euro of the mortgages brokered by Altachiara currently held on the books of BPCI is
approximately €700 million, accounting for less than 10% of total lending by the bank (approximately €8.6
billion).
Risk
Loans to customers as at 31st December 2011
Figures in thousands of euro
Gross exposure
Impairment
losses
Carrying amount
Coverage (*)
Deteriorated loans (8.38%) 8,589,416 2,309,532 (6.30%) 6,279,884 26.89%
- Non-performing loans (4.27%) 4,377,325 1,895,908 (2.49%) 2,481,417 43.31%
- Impaired loans (2.77%) 2,844,167 310,387 (2.54%) 2,533,780 10.91%
- Restructured loans (0.91%) 933,786 93,096 (0.84%) 840,690 9.97%
- Past due loans (0.43%) 434,138 10,141 (0.43%) 423,997 2.34%
Performing loans (91.62%) 93,951,550 541,664 (93.70%) 93,409,886 0.58%
Total loans to customers 102,540,966 2,851,196 99,689,770 2.78%
The item as a percentage of the total is given in brackets.
Loans to customers as at 31st December 2010
Figures in thousands of euro
Gross exposure
Impairment
losses
Carrying amount
Coverage (*)
Deteriorated loans (7.14%) 7,465,062 2,203,933 (5.17%) 5,261,129 29.52%
- Non-performing loans (3.62%) 3,780,973 1,841,057 (1.91%) 1,939,916 48.69%
- Impaired loans (2.22%) 2,320,471 287,557 (2.00%) 2,032,914 12.39%
- Restructured loans (0.85%) 889,070 60,577 (0.81%) 828,493 6.81%
- Past due loans (0.45%) 474,548 14,742 (0.45%) 459,806 3.11%
Performing loans (92.86%) 97,073,520 519,820 (94.83%) 96,553,700 0.54%
Total loans to customers 104,538,582 2,723,753 101,814,829 2.61%
The item as a percentage of the total is given in brackets.
(*) Coverage is calculated as the ratio of impairment losses to gross exposure.
Total outstanding gross deteriorated loans were unchanged at €8.59 billion in the fourth
quarter 2011. Despite this performance, the overall result of action taken by the Group to
manage credit quality, the cumulative change over twelve months was an increase of €1.12
billion (+15.1%), including €0.44 billion relating to the first quarter, €0.10 billion to the second
quarter, €0.52 billion to the third and just €0.06 billion to the fourth.
The annual increase was the result of performance by non-performing loans (+€0.60 billion)
and impaired loans (+€0.52 billion), while growth in restructured loans was modest (+€45
million), almost fully offset by the reduction in exposures past due and/or in arrears (-€40
million).
At the end of December net deteriorated loans totalled €6.28 billion, an increase year-on-year
of €1.02 billion (+19.4%), consisting of: €0.38 billion for the first quarter, €0.16 billion for the
second, €0.46 billion for the third and €0.02 billion for the fourth.
The trends reported were accompanied by a reduction of 2.63 percentage points in the total
coverage (down from 29.52% to 26.89%), of which 1.78 percentage points reflect disposals of
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