UBI Banca Group

IW BANK SPA
Figures in thousands of euro
31.12.2011
31.12.2010 Change
% change
Balance sheet
Loans to customers 246,010 207,028 38,982 18.8%
Direct funding 1,907,380 1,513,127 394,253 26.1%
Net interbank debt 852,085 401,300 450,785 112.3%
Financial assets held for trading 41,830 21,113 20,717 98.1%
Available-for-sale financial assets 721,772 845,043 -123,271 -14.6%
Equity (excluding profit for the year) 43,216 36,065 7,151 19.8%
Total assets 3,195,580 2,874,217 321,363 11.2%
Indirect funding from customers (including insurance) 3,161,568 3,037,925 123,643 4.1%
of which: assets under management 462,063 496,899 -34,836 -7.0%
Income statement
Net interest income 35,700 24,047 11,653 48.5%
Net commission income 31,057 33,062 (2,005) (6.1%)
Net income from trading, hedging and disposal/repurchase activities 3,312 7,787 (4,475) (57.5%)
Other net operating income/(expense) (*) 1,293 4,175 (2,882) (69.0%)
Operating income 71,362 69,071 2,291 3.3%
Personnel expense (19,258) (20,577) (1,319) (6.4%)
Other administrative expenses (31,560) (31,977) (417) (1.3%)
intangible assets (**) (6,601) (8,470) (1,869) (22.1%)
Operating expenses (57,419) (61,024) (3,605) (5.9%)
Net operating income 13,943 8,047 5,896 73.3%
Net impairment losses on loans (1,472) (969) 503 51.9%
Net impairment losses on other assets/liabilities (373) (613) (240) (39.2%)
Net provisions for risks and charges (***) (3,317) (2,933) 384 13.1%
Profit on the disposal of equity investments (****) (454) (1,982) (1,528) (77.1%)
Pre-tax profit from continuing operations 8,327 1,550 6,777 437.2%
Taxes on income for the year from continuing operations (5,513) (1,994) 3,519 176.5%
Profit (loss) for the year 2,814 (444) 3,258 n.s.
Other information
Number of branches 2 2 -
Total work force (actual employees+personnel on leasing contracts) 276 292 -16
Financial ratios
ROE [profit for the year/equity (excluding profit for the year)] 6.51% -1.23%
Cost:income ratio (operating expenses/operating income) 80.46% 88.35%
Net non-performing loans/net loans to customers - -
Net impaired loans/net loans to customers 0.14% 0.01%
The figures as at and for the year ended 31 st December 2010 have not been restated on a pro-forma basis to take account of InvestNet Italia,
merged into the Bank on 15 th July 2011, but relate to IW Bank only.
(*) In 2010 the item included prior year income of €2.5 million, following the conclusion of a settlement agreement with former Directors.
(**) In 2010 the item included impairment losses on intangible assets of €1.4 million.
(***) In 2011 the item included provisions of €2.1 million for unreconciled accounts, while in 2010 the item included a provision of €2.3 million,
in relation to differences found when inspections were performed on suspense accounts when the migration to the new IT platform was
performed.
(****) In 2010 the item included an impairment loss on interests held in InvestNet International and Investnet Italia amounting to two million
euro.
As at 31 st December 2011, UBI Banca held 65.039% of the share capital of IW Bank, Centrobanca held
23.496% and Webstar Sa held 10.336%, while the remaining 1.129% consisted of treasury shares held in
portfolio by the Bank.
IW Bank specialises in the provision of banking and financial services to retail and
institutional customers almost exclusively through the internet. Its range of services includes
trading in financial instruments, the distribution of OICRs (collective investment instruments),
current accounts, the issue of credit and debit cards, electronic money, insurance, personal
loans and mortgages. On 6 th May 2011, the Board of Directors approved a strategic business
plan for the period 2011-2015, which involves, amongst other things, the creation of new
synergies with the Parent, a new commercial service model, the expansion of the range of high
quality products and services for customers and the rationalisation of the internal processes of
the bank and its cost structure, designed to employ IW Bank as a channel for the direct
funding of the Group in Italy. These initiatives were made possible, amongst other things, by
the migration to a new IT system supplied by the company Cedacri and they included the
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