UBI Banca Group

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14 th March 2012: the UBI Banca Group disclosed that it had informed Arca SGR of its
desire to withdraw from the share capital of that company, with respect to all the shares
held. The right of withdrawal arose, in accordance with Art. 2347 of the Italian Civil Code,
because the Group did not vote in favour of the resolution passed by an Extraordinary
Shareholders’ Meeting which, on 20 th February 2012 (filed with the Company Registrar of
Milan on 5 th March 2012), had made amendments to the Corporate By-Laws of Arca SGR.
The withdrawal involves 13,354,000 shares held by the UBI Banca Group (11,562,000 by
UBI Banca and 1,792,000 by Banca Popolare di Ancona), accounting for 26.708% of the
share capital of Arca SGR, valued at consolidated level at an average of € 2.09 per share.
Following the exercise of that right to withdrawal, the UBI Banca Group will have the right
to cash payment for the shares held, in the amount of € 2.70 per share, as determined
according to the law by the Board of Directors of Arca SGR. The payment will take place
within the time limits set by the Italian Civil Code;
27 th March 2012: with regard to the plan to merge Banco di San Giorgio into Banca
Regionale Europea - approved by the boards of directors of the two banks on 21 st December
2011 – the Management Board of UBI Banca approved modifications to the parameters for
the merger to take account of the results of impairment tests conducted at the end of the
year. The new share price for the purchase by BRE of the ordinary shares held by the
Parent was € 4.344. Shareholders of Banco di San Giorgio other than BRE have the right to
sell their shares at a price that will be set by the Board of Directors of BRE, having received
the opinion of the Board of Statutory Auditors and of the external statutory auditors (see in
this respect the information given in the section “Significant events that occurred during
the year” contained in the Consolidated Management Report);
in the first quarter of 2012, UBI Banca made further investments of €5 billion in Italian
government securities, including €3 billion classified with held-to-maturity investments and
€2 billion within available-for-sale financial assets. This action, designed to support net
interest income, mainly regarded securities with a maturity of three years, and therefore
with the same duration as the funding acquired through the Eurosystem.
Section 5 Other aspects
Collective impairment losses on performing loans
Activity to revise the process for the management and monitoring of credit was completed in
2010 and it included the measurement of collective impairment losses on the performing loans
of the network banks, with a refinement and update of the approach based on the Basel 2 risk
parameters.
Improved methods for the classification of customer risk and internal models for the
measurement of credit risk were employed in 2011, which also included an increase in the
length of the period considered for the use of historical data series in the calculation of PD.
Revisions of internal models mainly involved the business regulatory segment for which
validation of the advanced approach is being performed, currently in progress with the Bank of
Italy.
Impairment losses on available-for-sale equity instruments
In June 2011, the UBI Banca Group participated in the increase in the share capital
performed by Intesa Sanpaolo, which involved the assignment of two new shares for every
seven old shares already held at a subscription price of 1.369 euro for each new share. The
operation involved a total payout of €56.7 million and resulted in the acquisition of
41,435,116 new shares, so that the Intesa Sanpaolo shares currently held, which are
recognised as “available-for-sale financial assets”, now number 186,458,028 (145,022,912
shares as at 31 st December 2010).
With specific reference to the valuation of the share in question and in compliance with the
impairment policy pursued by the Group and with IAS 39, further impairment losses of €112.5
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