UBI Banca Group

UBI FACTOR SPA
Figures in thousands of euro
31.12.2011 31.12.2010 Change % change
Balance sheet
Loans to customers 2,868,344 2,744,758 123,586 4.5%
Due to customers 5,161 9,539 -4,378 -45.9%
Net interbank debt -2,732,941 -2,609,221 123,720 4.7%
Equity (excluding profit for the year) 121,170 107,499 13,671 12.7%
Total assets 2,898,354 2,775,049 123,305 4.4%
Income statement
Net interest income 38,295 34,821 3,474 10.0%
Net commission income 12,637 16,251 (3,614) (22.2%)
Other net operating income/(expense) 3,644 2,159 1,485 68.8%
Operating income 54,576 53,231 1,345 2.5%
Personnel expense (11,750) (11,180) 570 5.1%
Other administrative expenses (12,314) (9,859) 2,455 24.9%
Net impairment losses on property, equipment and investment property and intangible assets (823) (649) 174 26.8%
Operating expenses (24,887) (21,688) 3,199 14.8%
Net operating income 29,689 31,543 (1,854) (5.9%)
Net impairment losses on loans (*) (14,813) (3,147) 11,666 370.7%
Net provisions for risks and charges (1) (1) - -
Profit on the disposal of equity investments 84 - 84 -
Pre-tax profit from continuing operations 14,959 28,395 (13,436) (47.3%)
Taxation for the year on profit from continuing operations (6,395) (9,794) (3,399) (34.7%)
Profit for the year 8,564 18,601 (10,037) (54.0%)
Other information
Total work force (actual employees+personnel on leasing contracts) 153 153 -
Financial ratios
R.O.E. [Profit for the year/equity (excluding profit for the year)] 7.07% 17.30%
Cost:income ratio (operating expenses/operating income) 45.60% 40.74%
Net non-performing loans/net loans to customers 1.27% 0.42%
Net impaired loans/net loans to customers 0.16% 0.15%
(*) In 2011 the item included a provision of €9.5 million for a credit position relating to the Fondazione Centro San Raffaele del Monte
Tabor.
The share capital of UBI Factor as at 31 st December 2011 was wholly owned by UBI Banca.
UBI Factor, the Group member company which specialises in factoring business, performs
“captive factoring” activity, mainly with network banks customers and to an increasingly
smaller extent with public administrations. According to Assifact (The Italian Factoring
Association) data, in 2011 the Company was positioned in fourth place nationally in the sector,
both in terms of outstanding amounts (receivables which have been purchased, but not yet
received), with a market share of 5.90%, and in terms of advances with and without recourse,
with a market share of 6.41%.
The pursuit of policies to gradually reduce business with public administrations, no longer
considered core business, continued in 2011, in consideration also of the increasing delays
with which payments are received from public sector authorities. On the other hand, the
Company focused progressively on the search for captive counterparties originated by the
network banks, with particular and constant attention paid to monitoring due dates and the
real quality of invoice sellers in terms of overall creditworthiness. Customers held in common
with the network banks now represent almost 80% of the counterparties of the company,
consistent with the role of Group “product company” assigned to UBI Factor.
The growth in the Company’s business is also being driven by an important increase in
international activity both directly and through co-operation with foreign correspondent factors
within Factors Chain International. The commercial initiative in operation since 2008 on the
Turkish market, originally designed to establish a local operating presence, received a strong
boost within the Factors Chain International network, partly as a result of increased
geographical coverage, no longer limited to the Italian market, but extended to include the EU,
with important market shares in areas where either the UBI Banca Group or UBI Factor itself
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