UBI Banca Group

late payments for technical reasons by public administrations – increased from €22.5 million
to €64.6 million (+186%).
Lending business is financed mainly through intragroup interbank funding (current account
overdrafts, term deposits and repurchase agreements with the Parent, where the underlying for
the latter consists of senior securities resulting from securitisations 16 ), but also through the
issue of bonds subscribed by the Parent and classified within securities issued. In this respect,
B@nca 24-7 issued three new bonds during the year at a fixed rate with maturities of two,
three and four years, subscribed entirely by UBI Banca for a total of €1.4 billion nominal.
As a consequence, while consisting of debt of €6.2 billion, the net interbank position as at 31 st
December 2011, had improved compared to the previous year (-€7.8 billion).
Capital ratios consisted of a tier one ratio (tier one capital to risk weighted assets) of 7.49%
(6.85% at the end of 2010) and a total capital ratio (supervisory capital and reserves to riskweighted
assets) of 9.99% (9.36%).
The proposal for the allocation of the profit for the year of €18.3 million is to allocate €9.6
million to retained earnings, after allocating €0.9 million to the legal reserve, replenishment of
the loss for the previous year of €5.7 million and replenishment of the loss in relation to the
negative first time adoption reserve, resulting from the partial spin-off of former SILF
operations amounting to €2.1 million.
16 On 20 th November 2011, the Bank wound up in advance a securitisation of salary backed loans which had been formed on 26 th
September 2008 by the issuer 24-7 Finance Srl.
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