UBI Banca Group

principally to new classifications from performing loans; however, restructured loans and
exposures past due and in arrears fell to €159.8 million (-€8.6 million) and to €5.4 million (-
€38.7 million) respectively. As a result of these trends, both the ratio of net impaired loans to
net loans and the ratio of net non-performing loans to net loans increased from 2.07% to
3.52% and from 1.16% to 1.48% respectively, while the ratio of net deteriorated loans to net
loans rose to 7.31% (6.28% at the end of 2010).
During the year, net interbank debt more than halved to €0.6 billion (-€0.9 billion; -57.6%),
due mainly to the requirement to restore balance to the ratio of short-term funding to medium
to long-term funding, which led to a reduction in debt owed to the Parent, which was replaced
by bond issues always subscribed by it.
On the other hand, direct funding increased to €6.7 billion (+€1.2 billion; +20.8%) as a result
of bonds placed amounting to €2.15 billion, subscribed entirely by the Parent, while maturities
for the year totalled €1.08 billion.
Financial assets held for trading rose from €447.6 million to €520.1 million (+€72.5 million;
+16.2%), mainly the result of increases in derivatives due to hedging performed on behalf of
Group customers.
The portfolio of available-for-sale financial assets, consisting almost entirely of investments in
corporate bonds made as part of Centrobanca’s overall lending business, decreased to €487.5
million from €566.1 million the year before (-€78.6 million; -13.9%). Again in 2011, investment
policies were designed to refocus on captive Group customers with investments in Italian
corporate issuers and the major European players operating in Italy.
Capital ratios as at 31 st December 2011 consisted of a tier one ratio (tier one capital to risk
weighted assets) of 8.25% (8.72% at the end of 2010) and a total capital ratio (supervisory
capital and reserves to risk-weighted assets) of 10.10% (11.19%).
The proposal for the allocation of profits is to first allocate €0.06 million to the legal reserve
and then to distribute dividends of €1.34 million, by drawing €0.18 million from retained
profits.
With effect from 8 th April 2011, Massimo Capuano, the General Manager of the Bank since 1 st February
2011, was appointed to the position of Managing Director.
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