UBI Banca Group

exposures secured by real estate property fell from €23 million to €19.7 million. As a result of
these trends both the ratio of net impaired loans to net lending and the ratio of non-performing
loans to net loans increased from 1.74% to 2.29% and from 1.87% to 2.41% respectively.
Penalised by the current difficulty in accumulating household savings, direct funding totalled
€19.8 billion, a decrease of €0.8 billion compared to €20.6 billion at the end of 2010 (-4%) 3 ,
basically a reflection of changes in amounts due to customers (-0.8 billion to €12.9 billion) and
in particular to the fall in current accounts and deposits (-€0.8 billion to €12.3 billion), which
accounted for over 95% of the decrease. Repurchase agreements with ordinary customers also
decreased, by half (-€0.2 billion), although offset by an increase in term deposits (+€0.1 billion)
and other types of funding (+€0.1 billion).
Securities issued performed steadily, unchanged at €6.9 billion, although a partial change in
the composition occurred out of bonds (-€0.2 billion to €6.2 billion) and into other certificates
(+€0.2 billion to €0.7 billion), for which the increase was mainly attributable swaps on
certificates of deposit denominated in yen.
Indirect funding from private individual customers also fell during the year from €24.9 billion
to €24.5 billion (-€0.4 billion; -1.5%) 4 , the aggregate result of opposing trends within the item.
On the one hand, assets under custody rose to €13.3 billion (+€0.8 billion), the consequence,
amongst other things, of campaigns to sell financial instruments which resulted in new
subscriptions of €0.7 billion. On the other hand, all components of assets under management
(-€1.2 billion to below €11.2 billion) decreased – especially with regard to mutual investment
funds and Sicav’s (-€0.7 billion to €5.3 billion) – due both to the results for net new
subscriptions and to a generalised reduction in market prices.
At the end of year the net interbank position showed funds of €1.6 billion, down compared to
€2.5 billion twelve months before, a reflection of the increased impact of borrowings using
repurchase agreements entered into with the Parent since August, for which the underlying
was class A securities issued on 25 th July 2011 by UBI Finance 3 and subscribed by the bank
as part of the securitisation transaction commenced in December 2010.
Capital ratios consisted of a tier one ratio (tier one capital to risk weighted assets) of 16.33%
(16.23% at the end of 2010) and a total capital ratio (supervisory capital and reserves to riskweighted
assets) of 18.48% (18.38%).
The proposal for the allocation of profit is to distribute dividends of €51.6 million after legal
and by-law allocations and to allocate €108.3 million to the voluntary reserve.
3 Net of intragroup items and the “large corporate” segment, total direct funding amounted to €18.9 billion a decrease of
approximately 3% year-on-year.
4 Net of the “large corporate” component, indirect funding amounted to €24 billion, an increase of 0.3% year-on-year.
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