UBI Banca Group

SECTION 12 Provisions for risks and charges – Item 120
12.1 Provisions for risks and charges: composition
Items/Components 31/12/2011 31/12/2010
1. Company pension funds 76,460 68,082
2. Other provisions for risks and charges 269,325 235,490
2.1 litigation 108,612 113,868
2.2 personnel expense 70,932 41,423
2.3 other 89,781 80,199
Total 345,785 303,572
The provision for personnel expense consisted of 2011 provisions (and the remainder of those for
2010) for the company bonus and ordinary incentive schemes and the provision for product
campaigns, the renewal of the senior management national labour contract renewal and national
and company labour contract renewals.
12.2 Provisions for risks and charges: annual changes
It ems/Components
Pension funds
Total
Other provisions
A. Opening balances 68,082 235,490
B. Increases 16,210 109,295
B.1 Allocation for the year 80 103,418
B.2 Changes due to passage of time 2,850 1,958
B.3 Changes due to changes in discount rate - 1,117
B.4 Other changes 13,280 2,802
C. Decreases (7,832) (75,460)
C.1 Use for the year (7,832) (51,924)
C.2 Changes due to changes in discount rate - (205)
C.3 Other changes - (23,331)
D. Final balances 76,460 269,325
12.3 Defined benefit company pension funds
The balance in the financial statements for defined benefit company pension funds was composed
of Banca Carime Spa funds amounting to €50,853 thousand, Banca Regionale Europea Spa funds
amounting to €24,854 thousand and Centrobanca Spa funds amounting to €1,024 thousand.
12.3.1 Description of the funds
BANCA CARIME SPA
Banca Carime SpA recognised liabilities relating to internal pension funds set aside to cover
supplementary INPS (national insurance institute) pension obligations within liability item 120a
“provisions for risks and charges: pension and similar obligations”.
The liabilities in question constitute a defined benefit plan and are subject to periodic actuarial
measurement in compliance with IAS 19 “Employee benefits”.
The following was performed in 2011 with regard to the measurement of these liabilities:
• the measurement methods employed were brought into line with those already in use in the
rest of the UBI Banca Group with regard to the variables for the following:
the discount rate curve;
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