UBI Banca Group

This category also includes investments in equity instruments classified within fair value level
three, held as part of merchant banking and private equity business, in connection with
Centrobanca. These had fallen to €85.9 million in December 2011 from €104.1 million the
year before, due to the combined effect of impairment losses recognised on some investments
(-€12.2 million for Medinvest International 9 and -€0.5 million for Manisa Srl, both held by the
Parent) and the disposal of an investment held by Centrobanca (-€12.1 million), which were
partially offset by the increase in the fair value of an asset held by this subsidiary (+€4.4
million) and also by a new acquisition for €2.2 million towards the end of the year.
Investments in OICR units (collective investment instruments) amounted to approximately €2
million and related mostly to hedge funds classified within fair value level three, purchased by
UBI Banca prior to 30 th June 2007 and still held, amounting to €1.5 million 10 .
The item financing (€39 million compared to €64.2 million in December 2010) relates entirely
to positions held by the subsidiary, Prestitalia Spa.
Finally, financial assets classified as held for trading also included derivative instruments
amounting to €597 million (€514.1 million twelve months before) 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, at the end of 2010 fair value level two debt instruments still included impaired assets
amounting to €0.9 million – fully disposed of in the first few months of 2011 – attributable to the expected
realisable value of bonds issued by Lehman Brothers and subscribed by UBI International and by the
Parent for a total nominal amount of €10 million.
As concerns the position of the Group with regard to Lehman Brothers, as already reported in the
previous 2009 and 2010 annual reports:
- UBI Banca and Centrobanca have filed proof of claim applications with the Southern District Court of
New York in connection with derivatives contracts which had been entered into with companies in the
Lehman Brothers Group;
- Centrobanca has filed proof of claim applications in relation to derivatives contracts which it had
entered into with Lehman Brothers Special Financing Inc. subject to Chapter 11 bankruptcy
proceedings in the USA;
With regard to the above positions, following the approval on 5 th December 2011 of a distribution plan
proposed by Lehman Brothers Holding Inc. in the context of the Chapter 11 proceedings mentioned,
which were approved by the competent court on 6 th December 2011, distribution to creditors (including
UBI Banca and Centrobanca) should start in 2012 on the basis of the plan mentioned.
As concerns the position of Lehman Brothers International (Europe), a company belonging to the Lehman
Brothers Group and subject to an administration order in the United Kingdom, as already reported in the
2010 Annual Report, on 17 th September 2010 UBI Banca filed a creditor’s claim for GBP 485,930.71 in
relation to derivatives contracts that had been entered into with Lehman Brothers International (Europe).
Finally,in relation to that last position, as already reported, UBI Banca has already filed creditor claims
against Lehman Brothers Holdings Inc., as the guarantor of Lehman Brothers International (Europe), in
the context of the Chapter 11 proceedings in the USA mentioned above.
9 See the previous section “The consolidated income statement” for further details.
10 The following sub-section, “financial assets at fair value”, may be consulted for a full picture of the Group’s investments in hedge
funds.
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