UBI Banca Group

Direct funding reached €12.7 billion, up by 5.1% compared to 2010. Amounts due to
customers rose to €9.2 billion (+3.1%), benefiting from an increase in current accounts and
term deposits (a total increase of €0.5 million), which offset the fall in repurchase agreements
(-€0.2 million).
Securities issued also increased, rising from €3.2 billion to €3.5 billion, due principally to the
issue of a bond for €0.6 billion subscribed by the Parent and designed to improve structural
balance, while a similar debt instrument was redeemed early for €0.3 billion.
Indirect funding from ordinary customers amounted to €12.9 billion, down by 13.2%,
attributable to negative trends for all components.
Although benefiting from the placement of bonds issued by third parties and by the Parent (a
total of €0.5 billion), assets under custody fell to €6.4 billion (-€0.9 billion) affected by the
performance of equity and bond markets. Assets under management, amounting to €6.5
billion, also fell significantly (-€1.1 billion), penalised by both the performance effect and by
negative net inflows for mutual investment funds and Sicav’s (-€0.8 billion) and customer
portfolio managements (-€0.3 billion).
At the end of year the bank had a net interbank position consisting of funding of €0.2 billion
(debt of €2.5 billion the year before). The change occurred in relation to diminished debt to the
Parent in the form of both the correspondence account, as a result of a decrease in the
volumes of business with customers, and repurchase agreements (-€0.8 billion), following the
first amortisation of the class A notes (senior tranches) issued by UBI Finance 2 as part of a
securitisation transaction.
Capital ratios consisted of a tier one ratio (tier one capital to risk weighted assets) of 15.43%
(12.82% at the end of 2010) and a total capital ratio (supervisory capital and reserves to riskweighted
assets) of 15.75% (13.28%).
The proposal for the allocation of profit is to distribute dividends of €28.5 million after legal
and by-law allocations.
169