UBI Banca Group

CENTROBANCA SPA
Figures in thousands of euro
31.12.2011 31.12.2010 Change
% change
Balance sheet
Loans to customers 7,160,450 6,972,678 187,772 2.7%
Direct funding (*) 6,700,750 5,547,161 1,153,589 20.8%
Net interbank debt -642,178 -1,514,777 -872,599 -57.6%
Financial assets held for trading 520,086 447,633 72,453 16.2%
Available-for-sale financial assets 487,522 566,135 -78,613 -13.9%
Equity (excluding profit for the year) 542,566 577,124 -34,558 -6.0%
Total assets 10,672,079 10,512,435 159,644 1.5%
Income statement
Net interest income 86,672 100,212 (13,540) (13.5%)
Dividends and similar income 939 1,532 (593) (38.7%)
Net commission income 33,638 42,102 (8,464) (20.1%)
Net income from trading, hedging and disposal/repurchase activities (**) 15,288 14,010 1,278 9.1%
Other net operating income/(expense) 2,002 5,351 (3,349) (62.6%)
Operating income 138,539 163,207 (24,668) (15.1%)
Personnel expense (31,347) (32,957) (1,610) (4.9%)
Other administrative expenses (19,512) (21,049) (1,537) (7.3%)
Net impairment losses on property, equipment and investment property and intangible assets (1,005) (1,003) 2 0.2%
Operating expenses (51,864) (55,009) (3,145) (5.7%)
Net operating income 86,675 108,198 (21,523) (19.9%)
Net impairment losses on loans (***) (60,439) (65,430) (4,991) (7.6%)
Net impairment losses on other assets/liabilities (3,602) (3,564) 38 1.1%
Net provisions per risks and charges (****) (1,040) (7,669) (6,629) (86.4%)
Loss on the disposal of equity investments and impairment of goodwill (*****) (7,188) (15) (7,173) n.s.
Pre-tax profit from continuing operations 14,406 31,520 (17,114) (54.3%)
Taxes on income for the year from continuing operations (13,181) (15,367) (2,186) (14.2%)
Profit for the year 1,225 16,153 (14,928) (92.4%)
Other information
Number of branches 6 6 -
Total work force (actual employees+personnel on leasing contracts) 316 325 -9
Financial ratios
ROE [profit for the year/equity (excluding profit for the year)] 0.23% 2.80%
Cost:income ratio (operating expenses/operating income) 37.44% 33.71%
Net non-performing loans/net loans to customers 1.48% 1.16%
Net impaired loans/net loans to customers 3.52% 2.07%
(*) Inclusive of bonds subscribed by the Parent and by Banco di San Giorgio amounting to €2,326.2 million as at 31 st December 2011 (€201.6
million euro as at 31 st December 2010).
(**) In 2010 the item included a loss on the disposal/repurchase of loans amounting to €5.3 million.
(***) The item for 2010 included an impairment loss of €6 million relating to the Mariella Burani Group.
(****) In 2010 the item included an extraordinary provision amounting to €1.3 million made for a derivative in probable default.
(*****) In 2011 the item related to an impairment loss on the entire goodwill of the Bank.
As at 31 st December 2011, UBI Banca held 94.2715% of the share capital of Centrobanca, while 5.4712%
was held by Banca Popolare di Ancona Spa, 0.1008% by Veneto Banca Holding Scpa and the remaining
portion totalling 0.1565% was held by 16 different banks, mainly “popular” banks.
Centrobanca is the bank in the Group which specialises in corporate and investment banking
to support corporate clients with innovation, expansion and financial restructuring.
The new 2012-2015 Business Plan of the Group initially envisaged a redefinition of the operating scope of
the Bank, with a progressive focus on corporate and investment banking, with the transfer to the network
banks of the less complex corporate lending transactions and a consequent reduction in new loans and
the related income. With a view to further simplification of the UBI Banca Group’s customer service
model, it was officially decided in November 2011 to strengthen activities typical of Centrobanca’s
business by merging it into the Parent to create a division dedicated to “large corporate” clients and
investment banking, to be completed by 2013 10 .
The year 2011 ended with a profit of €1.2 million (-€14.9 million compared to €16.2 million the
year before), affected, amongst other things, by the impairment loss on goodwill of €6.5 million
(net of tax). In normalised terms, net of extraordinary items, 2011 profit would have been €7.7
million compared to €16.6 million the year before.
10 See the preceding section “Significant events that occurred during the year” for further information.
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