UBI Banca Group

As concerns the balance sheet, loans exceeded €6.9 billion (+0.9%), including €127.5 million
relating to the foreign branches. A change in the composition of the item occurred with an
increase in medium to long-term loans, consisting mainly of mortgages (+€0.2 billion to €4.1
billion), accounting for 58.8% of total loans (56.3% in December 2010).
As concerns the quality of lending, net deteriorated loans increased over twelve months from
€306.2 million to €360.7 million (+€54.5 million), although this trend reversed in the last
quarter. In detail: +€22.3 million to €150.8 million for non-performing loans 8 , due mainly to
transfers from impaired loans; +€37.9 million to €168.8 million for impaired loans, fuelled
above all by new classifications from performing loans; +€10.5 million to €30.8 million for
restructured loans, following the transfer of three positions previously classified within
impaired loans; -€16.2 million to €10.3 million for exposures past due and in arrears. Within
the latter, exposures in arrears for between 90 and 180 days relating to exposures secured by
real estate property fell from €22.6 million to €7.9 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 to 2.44% and to 2.18% respectively.
Direct funding totalled €5.8 billion, an increase of €0.2 billion compared to €5.6 billion at the
end of 2010 (+3.9%), driven by the growth in amounts due to customers (+€0.1 billion to €4
billion 9 ), in the context of which the fall in repurchase agreements was more than offset by
increases in current accounts and deposits.
Securities issued reached €1.8 billion (+€0.1 billion), a reflection of good performance by
certificates of deposit (+€0.1 billion), used mainly for swaps in yen.
Indirect funding from private customers fell overall during the year from €7.3 billion to €6.8
billion (-€0.4 billion; -5.9%), fully reflecting the decreases in assets under management (-€0.5
billion to €3.7 billion) and in mutual investment funds and Sicav’s in particular (-€0.4 billion
to €1.7 billion), which were offset by growth in assets under custody (+€0.1 billion to over €3.1
billion).
At the end of year the net interbank position, which related primarily to the Parent, consisted
of debt of €0.1 billion (an increase compared to -€0.2 billion in 2010).
Capital ratios consisted of a tier one ratio (tier one capital to risk weighted assets) of 26.19%
(25.38% at the end of 2010) and a total capital ratio (supervisory capital and reserves to riskweighted
assets) of 28.52% (27.69%).
The proposal for the allocation of profit is to distribute dividends of €28.6 million after legal
allocations and an allocation to the voluntary reserve.
As reported in the preceding section, “Significant events that occurred during the year ”, on 21 st December
2011, the Board of Directors of Banca Regionale Europea passed a resolution to merge its subsidiary,
Banco di San Giorgio Spa, into itself, scheduled for July 2012 with a view to Group simplification and the
creation of a North West banking centre.
Finally with effect from 1 st February 2012, Riccardo Barbarini was appointed General Manager of Banca
Regionale Europea to replace Roberto Tonizzo, who will occupy the same position in another bank in the
Group.
8 In the second quarter, Banca Regionale Europea disposed of unsecured non-performing loans for €10.1 million, written down by
97%, which gave rise to a net loss on the sale of €43 thousand.
9 Inclusive of €45.2 million relating to foreign branches.
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