UBI Banca Group

B@NCA 24-7 SPA
Figures in thousands of euro
31.12.2011 31.12.2010 Change % change
Balance sheet
Loans to customers 10,511,749 11,219,553 -707,804 -6.3%
Direct funding (*) 5,773,917 4,344,858 1,429,059 32.9%
Net interbank debt -6,220,848 -7,757,694 -1,536,846 -19.8%
Equity (excluding profit for the year) 342,624 348,179 -5,555 -1.6%
Total assets 13,294,909 12,957,569 337,340 2.6%
Income statement
Net interest income 159,181 200,453 (41,272) (20.6%)
Dividends and similar income 1 - 1 -
Net commission income 19,624 17,634 1,990 11.3%
Net loss from trading, hedging and disposal/repurchase activity (10,578) (24,036) (13,458) (56.0%)
Other net operating income/(expense) 36,223 29,817 6,406 21.5%
Operating income 204,451 223,868 (19,417) (8.7%)
Personnel expense (12,322) (13,046) (724) (5.5%)
Other administrative expenses (46,651) (45,921) 730 1.6%
Net impairment losses on property, equipment and investment property and intangible assets (187) (180) 7 3.9%
Operating expenses (59,160) (59,147) 13 0.0%
Net operating income 145,291 164,721 (19,430) (11.8%)
Net impairment losses on loans (105,303) (149,833) (44,530) (29.7%)
Net provisions for risks and charges (**) (7,855) (8,912) (1,057) (11.9%)
Pre-tax profit from continuing operations 32,133 5,976 26,157 437.7%
Taxes on income for the year from continuing operations (13,792) (11,699) 2,093 17.9%
Profit (loss) for the year 18,341 (5,723) 24,064 n.s.
Other information
Number of branches 1 1 -
Total work force (actual employees+personnel on leasing contracts) 206 227 -21
Financial ratios
Cost:income ratio (operating expenses/operating income) 28.94% 26.42%
Net non-performing loans/net loans to customers 2.18% 1.55%
Net impaired loans/net loans to customers 1.05% 0.65%
(*) Inclusive of bonds subscribed by the Parent amounting to €5,773 million as at 31 st December 2011 (€4,321 million as at 31 st December
2010).
(**) In 2010, the item included a provision of eight million euro in relation to estimated risks on the lending portfolio brokered by Ktesios Spa.
The share capital of B@nca 24-7 as at 31 st December 2011 was wholly owned by UBI Banca.
As part of an overall improvement in credit risk management at Group level, this Bank, which
specialises in consumer credit, underwent profound reorganisation in 2011, with the objective
of discontinuing some higher risk lines of business (special purpose loans and consumer credit
to non captive customers) as already reported in the previous section “Significant events that
occurred during the year”. The reorganisation of operations will be completed after 1 st May
2012, with the contribution of outstanding salary and pension backed loans to Prestitalia and
the subsequent merger of B@nca 24-7 into UBI Banca, effective for accounting and tax
purposes from 1 st January 2012.
The Bank ended the year with a profit of €18.3 million, compared to a loss of €5.7 million the
previous year, as a result of a substantial decrease in net impairment losses on loans (-€44.5
million to €105.3 million), notwithstanding a lower contribution from net operating income
(-19.4 million to €145.3 million), entirely attributable to lower operating income (-€19.4 million
to €204.5 million).
Income performed as follows:
- net interest income fell to €159.2 million (-€41.3 million), as a result of lower volumes of
business, following the change in the focus of operations in progress. The fall in interest
income was accompanied by an increase in interest expense on securities issued and on
amounts due to banks, which was only partly offset by a reduction in the negative
differentials on hedges on loans to customers;
- the contribution from net commissions increased to €19.6 million (+€2 million), due to a fall
in commission expense (in relation to the distribution of credit cards and insurance
products through indirect networks), which was greater than that for commission income;
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