UBI Banca Group

BANCA REGIONALE EUROPEA SPA
Figures in thousands of euro
31.12.2011 31.12.2010 Change
% change
Balance sheet
Loans to customers 6,916,708 6,851,620 65,088 0.9%
Direct funding (*) 5,809,713 5,592,784 216,929 3.9%
Net interbank debt -101,899 -195,497 -93,598 -47.9%
Financial assets held for trading 19,406 25,269 -5,863 -23.2%
Available-for-sale financial assets 12,912 9,610 3,302 34.4%
Equity (excluding profit for the year) 1,439,972 1,216,497 223,475 18.4%
Total assets 8,033,252 8,132,305 -99,053 -1.2%
Indirect funding from customers (including insurance) 6,842,123 7,267,934 -425,811 -5.9%
of which: assets under management 3,719,506 4,205,324 -485,818 -11.6%
Income statement
Net interest income 168,367 147,363 21,004 14.3%
Dividends and similar income 403 1,318 (915) (69.4%)
Net commission income 97,927 99,330 (1,403) (1.4%)
Net loss from trading, hedging and disposal/repurchase activities (500) (946) (446) (47.1%)
Other net operating income/(expense) 6,817 8,809 (1,992) (22.6%)
Operating income 273,014 255,874 17,140 6.7%
Personnel expense (109,376) (110,126) (750) (0.7%)
Other administrative expenses (75,927) (80,870) (4,943) (6.1%)
Net impairment losses on property, equipment and investment property and intangible assets (7,653) (6,644) 1,009 15.2%
Operating expenses (192,956) (197,640) (4,684) (2.4%)
Net operating income 80,058 58,234 21,824 37.5%
Net impairment losses on loans (26,965) (27,430) (465) (1.7%)
Net impairment losses on other assets/liabilities (1,162) (169) 993 587.6%
Net provisions for risks and charges (**) (975) 3,253 (4,228) n.s.
Profit (loss) on the disposal of equity investments and impairment of goodwill (***) (226) 230,662 (230,888) n.s.
Pre-tax profit from continuing operations 50,730 264,550 (213,820) (80.8%)
Taxes on income for the year from continuing operations (20,544) (18,175) 2,369 13.0%
Profit for the year 30,186 246,375 (216,189) (87.7%)
Other information
Number of branches 229 229 -
Total work force (actual employees+personnel on leasing contracts) 1,513 1,552 -39
Financial ratios
ROE [profit for the year/equity (excluding profit for the year)] 2.10% 20.25%
Cost:income ratio (operating expenses/operating income) 70.68% 77.24%
Net non-performing loans/net loans to customers 2.18% 1.88%
Net impaired loans/net loans to customers 2.44% 1.91%
(*) Inclusive of bonds subscribed by the Parent amounting to €201.3 million as at 31 st December 2011 (€201 million as at 31 st December
2010).
(**) In 2010 the item included the release of a provision made in prior years for litigation with the Ministry of the Economy amounting to €3.9
million.
(***) In 2011 the item included an impairment loss on the goodwill of the Nice branch amounting to €0.2 million. In 2010, on the other hand, the
item related primarily to a gain on the sale of an interest held in BPCI to the Banca del Monte di Lombardia Foundation.
As at 31 st December 2011, UBI Banca held 74.9437% of the share capital of Banca Regionale Europea, the
Cassa di Risparmio di Cuneo Foundation held 24.98% and the remaining 0.0763% was held by non
controlling shareholders.
The year 2011 ended with a profit of €30.2 million, a decrease compared to €246.4 million the
year before, which, however, benefited from a significant gain (€225.4 million net of taxes),
realised following the sale of an interest held in the share capital of Banca Popolare Commercio
e Industria to the Banca del Monte di Lombardia Foundation as part of the reorganisation of
the ownership structure following the “branch switches” performed in January 2010. In
normalised terms, net of non-recurring items, 2011 profit amounted to €30 million, an
increase compared to €22.7 million in 2010 (+€7.3 million; +32.5%).
Net operating income performed well (+€21.8 million to €80 million), with over three quarters of
the growth attributable to increased income (+€17.1 million to €273 million) and the remaining
part to savings on costs (down by €4.7 million to approximately €193 million).
Revenues performed as follows:
173