UBI Banca Group

Financial liabilities held for trading
Financial liabilities held for trading: composition
31.12.2011 31.12.2010 Changes
Figures in thousands of euro Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total amount %
A. On-balance sheet liabilities
Due to banks 335,123 - - 335,123 110,657 - - 110,657 224,466 202.8%
Due to customers 102,778 - - 102,778 298,605 - - 298,605 -195,827 -65.6%
Debt instruments - - - - - - - - - -
Total (a) 437,901 - - 437,901 409,262 - - 409,262 28,639 7.0%
B. Derivative instruments
Financial derivatives 187 625,585 - 625,772 1,191 543,970 - 545,161 80,611 14.8%
Credit derivatives - - - - - - - - - -
Total (b) 187 625,585 - 625,772 1,191 543,970 - 545,161 80,611 14.8%
Total (a+b) 438,088 625,585 - 1,063,673 410,453 543,970 - 954,423 109,250 11.4%
Financial liabilities held for trading (liabilities item 40) had risen to €1.1 billion as at 31 st
December 2011 (up by €109.3 million on the previous year), due mainly to an increase in fair
value level two financial derivatives – consisting almost entirely of contracts on interest rates –
the changes in which are to be interpreted primarily in relation to volumes of business.
On-balance sheet liabilities, held entirely by the Parent, remained steady at €0.4 billion of
which €0.2 billion relating to uncovered short positions on Italian government securities (€0.4
billion at the end of 2010). A change in the composition occurred within the item, out of
amounts due to customers (-€0.2 billion) and into amounts due to banks (+€0.2 billion).
Financial assets at fair value
The item “financial assets at fair value” includes financial instruments classified as such in application of
the fair value option (FVO). They are composed exclusively of units in O.I.C.R. (collective investment
instruments) and include the remaining units in hedge funds subscribed after 1 st July 2007.
These financial assets are recognised at fair value through profit or loss.
Information on the fair value hierarchy (levels one, two and three) is given in Section A.3, of Part A –
Accounting Policies in the Notes to the Consolidated Financial Statements.
Financial assets at fair value: composition
31.12.2011 31.12.2010 Changes
Figures in thousands of euro Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total amount %
Debt instruments - - - - - - - - - -
Equity instruments - - - - - - - - - -
Units in O.I.C.R.
(collective investment
instruments) 104,846 - 21,328 126,174 116,208 - 31,078 147,286 -21,112 -14.3%
Financing - - - - - - - - - -
Total 104,846 - 21,328 126,174 116,208 - 31,078 147,286 -21,112 -14.3%
As at 31 st December 2011, financial assets designated at fair value consisting of units in
O.I.C.R.s classified within fair value levels one and three – held entirely by the Parent –
amounted to €126.2 million (down by €21.1 million on December 2010).
Investments of €104.9 million were recognised within fair value level one relating to three
Tages funds (formerly Capitalgest Alternative), which incurred losses of €11.4 million over
twelve months, which account for the change compared to December 2010.
With regard to the management mandate conferred on the Group’s asset management company, units in
UBI Pramerica mutual funds were subscribed in March 2011 for a total of €0.3 billion (fair value level one),
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