UBI Banca Group

een verified that the overall rate of loss on assets that occurred between the date of
the PPA and 31.12.2011 was lower than or equal to the rate of amortisation;
the total amount of the deposits as at 31.12.2011 consisting of the customers deposits
of the network banks existing as at 31.12.2011 on the basis of the PPA perimeter;
the forecasts for markdowns and commissions on current accounts are those implied
in the 2012 budget assumptions and in the 2013 – 2016 forecasts for each network
bank to which the intangible assets attaching to the core deposits were allocated.
These forecasts are the same as those used to estimate the recoverable amount of the
goodwill;
operating expenses are consistent with forecasts of the cost:income ratio for the
network bank to which the core deposits relate for the period 2012 – 2016;
the opportunity cost of equity is the same as that used to test the goodwill of the
network banks recognised in the consolidated financial statements for impairment.
The value of the core deposit goodwill assets was less than the respective carrying amounts,
which resulted in the need to recognise a total impairment loss of €241,679 thousand.
For Banca Popolare di Bergamo and Banca Popolare Commercio & Industria, the core deposit
goodwill allocated resulted from an operation to streamline the branch network geographically
because contributions of operations had been made consisting of the branches of the former
Banca Lombarda e Piemontese (Banco di Brescia and Banca Regionale Europea).
Assets under management
Intangible assets attaching to asset management business were tested for impairment because
of reduced profits on this business triggered by general falls in prices on both equity and bond
markets.
The same procedure used for testing core deposit goodwill for impairment was employed for
these intangible assets. The following was therefore performed:
- the remaining useful life of the assets as at 31.12.2011 was verified;
- the value of the intangible assets attaching to asset management business was estimated
using:
the remaining useful life estimated as at 31.12.2011 (equal to the weighted average
life estimated for the PPA adjusted for the time elapsed);
the total assets under management as at 31.12.2011 acquired at the time of the PPA
(including insurance funding);
income from those assets under managment consistent with 2012 budget
assumptions and 2013 – 2016 forecasts;
an opportunity cost of equity the same as that used to test the goodwill of the network
banks recognised in the consolidated financial statements for impairment.
The estimate of the total intangible assets in question was less than the respective carrying
amount, which therefore resulted in the need to recognise a total impairment loss of €88,248
thousand.
To complete the information a sensitivity analysis was performed to identify, for those CGUs
not subject to impairment, the variation in key variables that would render the recoverable
amount equal to the carrying amounts in the consolidated financial statements.
The table below gives the maximum tolerable increase in the cost of equity and the cost of risk
for each of the above CGUs in order for the recoverable amount to equal the carrying amount
and therefore for an impairment loss to be recognised.
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