UBI Banca Group

Further simplification of the customer service model
Although not comprised within the original Business Plan, subsequent decisions taken by the
Management Board on 14 th November 2011 concerning the simplification of the customer
service model, constitute a completion of the achievement of the objectives of the UBI Banca
Group. They facilitate shorter decision-making processes, strengthen risk management and
internal synergies and improve clarity and organisational simplicity.
The process in progress is leading to the redefinition of the service models for the large
corporate and consumer credit segments and of some network banks with regard to
geographical market coverage, activities which will also involve corporate ownership operations
to be performed in 2012 and the first half of 2013.
Large corporate customers and investment banking
The new service model involves the creation of a new “Large Corporate and Investment
Banking” division at UBI Banca, which will operate in:
- the management and development of business with a limited number of large corporate
clients not directly related to local areas covered by the network banks;
- the structuring and grant of complex finance both with Group and non-captive clients;
- the provision of value added services (e.g. advisory) to both Group and non-captive clients.
In order to optimise operations, it was decided to merge Centrobanca into UBI Banca and
incorporate its current business and finance activity within the Parent. More specifically, with
regard to the latter, this centralisation will take place in the context of a new finance model
which involves the following: clear separation between finance for customers and finance for
the Bank; the unification of trading rooms (access to markets, product structuring); the
creation of a market hub on which all customer requests will be concentrated.
Completion of the merger is planned for the first half of 2013.
Streamlining of “consumer credit” business:
In relation to the higher risk of some lines of business and the need to focus lending
operations, the Group has decided to reposition the activities performed by B@nca 24-7 in the
consumer credit sector. The action undertaken – some currently being implemented – is as
follows:
- new grants of special purpose and personal loans to non-captive customers cease and
activities are limited to the management of outstanding loans;
- the disbursement of mortgages to non-captive customers through external networks was
transferred to the network banks of the UBI Group in May 2011, with a view to the
acquisition of new customers and a more balanced management of funding and risk
control. No use of additional credit brokerage companies is planned;
- distribution of personal loans to captive customers by the network banks;
- the specialisation of the company Prestitalia (100% UBI Banca Group), appropriately
expanded, in salary backed loan business. Approximately €3.3 billion of outstanding salary
backed loans held at present by B@nca 24-7 will be transferred to that company.
The reorganisation of activities gave rise to the start of procedures for the contribution to
Prestitalia of salary backed loan operations and the subsequent merger of B@nca 24-7 into
UBI Banca.
In this respect UBI Sistemi e Servizi was tasked with implementing a special project for the
migration of the IT system to the UBI Banca target platform and with providing operational coordination
and technical implementation services required to carry out the merger. In addition
to the specific costs for the migration, derecognitions of impairment losses on intangible assets
were performed in relation to the retirement of the B@nca 24-7 IT system, amounting to €3.5
million (charged to income statement in 2011).
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