UBI Banca Group

in the former Banca Lombarda Group subject to amortisation since 2010 (residual life
of 18 years). The amortisation for the year amounted to €18,770 thousand. The result
of the impairment test was an impairment loss of €193,053 thousand. Net of ordinary
amortisation and of impairment losses, the value of the brands of the single banks was
as follows:
Banco di Brescia Spa
Banca Regionale Europea Spa
Banca di Valle Camonica Spa
Banco di San Giorgio Spa
TOTAL
€90,475 thousand
€29,167 thousand
€2,771 thousand
€3,625 thousand
€126,038 thousand
“core deposits”, intangible assets associated with customer relationships totalling
€41,221 thousand. These assets arose from the purchase price allocation already
mentioned and from that relating to Banco di S. Giorgio Spa following its acquisition,
at the beginning of 2009, of operations consisting of 13 branches from Banca Intesa
San Paolo Spa. In view of their close dependence on customer relationships, they are
by definition finite useful life assets and are subject to systematic amortisation
according to a schedule that takes account of the probability of current accounts being
closed. Amortisation for the year totalled €29,107 thousand. On the basis of the results
of the impairment test performed at the end of year, an impairment loss of €241,679
thousand was recognised on core deposits;
“asset management business” consisting both of the actual management and the
relative distribution activities totalled €62,323 thousand. These assets are amortised
over the useful remaining life of the customer relationships. The amortisation for the
year was €14,437 thousand while the impairment loss recognised as a result of the
impairment test was €88,248 thousand;
“assets under custody” business totalled €48,949 thousand with total amortisation in
2011 of €5,148 thousand;
the remaining balance consists almost exclusively of software, allocated mainly to
UBISS scpa, the UBI Group service company.
Finally, the renegotiation of distribution agreements with By You resulted in changes in
the cash flows that will be generated from that distribution channel. As a result of these,
impairment losses of €19.5 million were recognised as at 30 th June 2011 on the intangible
assets previously recognised in the separate financial statements of the Parent. These
intangible assets amounted to €21 million as at 31 st December 2010.
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