UBI Banca Group

launch of high remuneration deposit products (IW Power “Special”) which, assisted by an
effective advertising campaign, has resulted in a substantial increase in direct funding.
In 2011, IW Bank further increased the number of active accounts held, up to 112.1 thousand
from 105.8 thousand at the end of 2010. Also the average daily number of orders received from
customers and executed rose to 36.6 thousand from 35.5 thousand in 2010.
It is underlined that the comparative figures in reclassified balance sheet and income
statement for 2010 presented here have not been restated on a consistent basis to include the
figures for Investnet Italia Srl merged with a deed of 1 st August 2011, with effect for accounting
and fiscal purposes from 1 st January 2011.
From an operational viewpoint, the year ended with a profit of €2.8 million compared to a loss
of €0.4 million the year before. Moreover, the result for the year was significantly affected by
expenses relating to non-recurring items consisting of provisions of €2.1 million, net of tax, to
meet possible future risks and charges connected with further accounting differences in
relation to the former IT system (€3.9 million in 2010, connected mainly with operational
decisions concerning the reorganisation of the Group and the replacement with the Bank’s IT
platform). Net of those extraordinary items, profit for the year amounted to €4.9 million (€3.5
million in 2010).
The year ended with net operating income of close to €14 million, up over twelve months by
€5.9 million, of which more than 60% attributable to lower costs (-€3.6 million to €57.4
million) and the remainder to higher income (+€2.3 million to €71.4 million).
Income included an increase in net interest income (+€11.7 million to €35.7 million) – relating
mainly to the new structure of the available-for-sale securities portfolio and an increase in
loans and receivables – which was partially offset by decreases in all the other items: -€2
million to €31.1 million for net commission income, due to less business activity with
customers for order routing and greater commission expense on trading in financial
instruments; -€4.5 million to €3.3 million for net income from trading, hedging and disposal
and repurchase activity, which mainly reflected lower gains on the fixed rate component of the
available-for-sale securities portfolio; -€2.9 million to €1.3 million for other net operating
income and expense which, however, had benefited from €2.5 million of extraordinary items
connected with the conclusion of a settlement agreement with former Bank personnel.
The improvement in operating expenses was general and included the following: -€1.3 million
to below €19.2 million for personnel expense due to lower personnel numbers; -€0.4 million to
€31.6 million for other administrative expenses due on the one hand to greater expense for
outsourced services provided by third parties and for the advertising campaign to promote the
IW Power “Special” products and other minor expenses relating to supply contracts for the
merged company Twice Sim and lower strategic and organisational consulting costs; -€1.9
million to €6.6 million for net impairment losses on property, equipment and investment
property and intangible assets which included the write-off of intangible assets amounting to
€1.4 million the year before.
Greater net impairment losses on loans were also recognised (+€0.5 million to €1.5 million),
along with increased provisions (+€0.4 million to €3.3 million), including the €2.1 million
already mentioned to meet possible future risks and charges related to further accounting
differences connected with the former legacy IT system, with particular reference to settlement
accounts.
As concerns balance sheet items, direct funding increased appreciably to €1.9 billion (+€0.4
billion; +26.1%), attributable principally to the launch of the new IW Power “Special” products.
Indirect funding also rose overall to €3.2 billion (+€0.1 billion; +4.1%), although within the
item, assets under management fell to €462.1 million (-€34.8 million; -7%).
Loans to customers increased at the end of 2011 to €246 million (+€39 million; +18.8%),
consisting of €177.4 million attributable to mortgages, €7.4 million to personal loans, €15.1
million to the use of credit cards, the grant of credit lines for margin trading and for temporary
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