UBI Banca Group

UBI LEASING SPA
Figures in thousands of euro
31.12.2011 31.12.2010 Change % change
Balance sheet
Loans to customers 9,045,465 9,698,555 -653,090 -6.7%
Due to customers 387,638 682,963 -295,325 -43.2%
Net interbank debt -9,532,793 -10,501,685 -968,892 -9.2%
Financial assets available-for trading 60 1,598 -1,538 -96.2%
Available-for-sale financial assets 26 26 - -
Equity (excluding profit for the year) 329,046 289,749 39,297 13.6%
Total assets 10,382,757 11,601,054 -1,218,297 -10.5%
Income statement
Net interest income 96,439 114,422 (17,983) (15.7%)
Net commission income (1,879) (2,283) (404) (17.7%)
Net income (loss) from trading, hedging and disposal/repurchase activities 1,632 (14,615) 16,247 n.s.
Other net operating income/(expense) (*) 31,514 44,037 (12,523) (28.4%)
Operating income 127,706 141,561 (13,855) (9.8%)
Personnel expense (17,376) (15,820) 1,556 9.8%
Other administrative expenses (27,423) (28,979) (1,556) (5.4%)
Net impairment losses on property, equipment and investment property and intangible (995) (603) 392 65.0%
Operating expenses (45,794) (45,402) 392 0.9%
Net operating income 81,912 96,159 (14,247) (14.8%)
Net impairment losses on loans (111,556) (114,612) (3,056) (2.7%)
Net provisions for risks and charges (**) (2,497) (2,646) (149) (5.6%)
Profit (loss) on the disposal of equity investments (***) (1,962) 20 (1,982) n.s.
Pre-tax loss from continuing operations (34,103) (21,079) 13,024 61.8%
Taxes on income for the year from continuing operations 3,952 447 3,505 n.s.
Loss for the year (30,151) (20,632) 9,519 46.1%
Other information
Total work force (actual employees+personnel on leasing contracts) 255 242 13
Financial ratios
Cost:income ratio (operating expenses/operating income) 35.86% 32.07%
Net non-performing loans/net loans to customers 4.52% 3.19%
Net impaired loans/net loans to customers 2.85% 1.91%
(*) The item for 2011 includes €3.3 million of expenses incurred in relation to the termination of mandates conferred on UBI leasing
agents.
(**) The item for 2011 includes €2.4 million for provisions relating to the termination of mandates conferred on UBI leasing agents.
(***) In 2011 the item included an impairment loss of €2 million on goodwill.
As at 31st December 2011, UBI Banca held 79.9962% of the share capital of UBI Leasing, 18.9965% was
held by Banca Popolare di Ancona Spa and the remaining 1.0073% was held by Banca Valsabbina Scpa.
The year 2011 was a difficult one for the leasing sector as the economic crisis continued and
businesses failed to invest as a consequence. On the basis of Assilea (national association of
leasing companies) data, the value of contracts signed nationally fell to €24.6 billion from
€27.3 billion the year before (-9.8%; -€2.7 billion). In terms of business sector, the crisis hit the
property sector particularly hard (-21%; -€1.9 billion) and also the machinery and equipment (-
10.6%; -€842 million) and aeronautical sectors (-27.3%; -€294 million), while the automobile
sector (-1%; -€59 million) performed with more stability. Only the energy sector recorded
positive performance (+10.5%; +€384 million).
In the already difficult economic environment just mentioned, UBI Leasing’s operations were
also affected by internal structural problems, exacerbated by an uncertain and weak market.
Consequently, the company saw its market share fall from 6.81% to 3.16% to reach tenth
place in the Assilea classification (from fourth place at the end of 2010).
The Company has more that halved its business in terms of both the number of contracts
signed (down from 10,216 to 4,999) and in terms of value (-€1.1 billion to €0.8 billion; -58.1%).
As shown in the table, significant decreases were recorded in all sectors, as a consequence, at
least in part, of substantial organisational and procedural changes introduced during the year
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