UBI Banca Group

Equity and capital adequacy
Reconciliation between equity and result for the year of the Parent with consolidated equity as at 31st December 2011
and profit for the year then ended
Figures in thousands of euro
The consolidated equity of the UBI Banca Group as at 31 st December 2011, inclusive of profit
for the year, amounted to €8,939 million, down compared to €10,979 million at the end of
2010.
As can be seen from the statement of changes in equity, contained among the mandatory
consolidated financial statements, in addition to the loss for the year of €1,841.5 million the
following items contributed to the total decrease of €2,040 million that occurred over twelve
months:
• the allocation of 2010 consolidated profit to dividends and other uses amounting to €102.2
million 1 ;
• the positive impact, totalling €986 2 million, attributable almost entirely to the capital
increase performed in June and July, which led to the issue of 262,580,944 new shares
following the exercise of option rights, the sale on the stock exchange and the subsequent
exercise of rights not taken up and the final subscription by the underwriting syndicate,
was as follows:
• +€656.5 million the impact on share capital;
• +€329.5 million the increase in the share premium reserve, inclusive of the deduction from that
item of the expenses incurred to complete the operations net of tax (€16.2 million) and the proceeds
from the sales of rights not exercised (€2.1 million);
• a decrease of €4.4 million as a consequence of the purchase of treasury shares in July, to
be assigned to the Senior Management of the Group in relation to incentive schemes;
• the negative impact on consolidated income generated by the overall reduction in the fair
value reserves amounting Fair value reserves attributable to the Group: composition
to €1,062.1 million. This
Figures in thousands of euro 31.12.2011 31.12.2010
consisted of -€1,039.5
Available-for-sale financial assets -1,350,979 -311,493
million relating to
Cash flow hedges -3,217 -619
available-for-sale financial
Foreign currency differences -243 -243
assets, -€2.6 million to Actuarial gains/losses -34,155 -14,518
cash flow hedges, -€19.6 Special revaluation laws 72,729 73,146
million to “actuarial Total -1,315,865 -253,727
gains/losses on defined
benefit plans” and -€0.4 million to “special revaluation laws”;
• a decrease on aggregate in reserves of profits amounting to €15.8 million. This
included: -€9.2 million relating to the public tender offer to purchase IW Bank shares; -€4.4
million for the increase in the investment in Banco di San Giorgio, following an operation to
increase the share capital of this bank in Liguria; +€2.1 million for the positive impact of
exchange rate differences on the equity of Swiss subsidiaries;
Equity
of which: Result for
the year
Equity and result for the year in the financial statements of the Parent 7,609,829 -2,713,054
Effect of the consolidation of subsidiaries including joint ventures 1,651,195 403,078
Effect of measuring other significant equity investments using the equity method -21,038 10,760
Dividends received during the year - -338,369
Other consolidation adjustments (including the effects of the PPA) -300,963 796,097
Equity and result for the year in the consolidated financial statements 8,939,023 -1,841,488
1 The 2010 consolidated net profit was fully drawn on with an allocation to reserves of €69.9 million.
2 This amount also includes the residual effect of the conversion of the convertible bond “UBI 2009/2013 convertibile con facoltà di
rimborso in azioni” and the exercise of the warrants “Warrant azioni ordinarie UBI Banca 2009/2011”, which led to the issue of a
further 19,213 new shares with an increase in the share capital and the share premium reserve amounting to €49,782.5 and
€188,063 respectively.
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