UBI Banca Group

Operational losses detected in 2011 were concentrated above all in the following lines of business:
“retail banking” (63%), “retail brokerage” (15%) and “trading and sales” (13%).
Capital requirements
The Bank has employed the traditional standardised approach (TSA) since 2008 for the calculation of
capital requirements on operational risk (see Bank of Italy Circular No. 263 of 27/12/2006 relating to
the new prudential supervisory regulations for banks).
The capital requirement calculated according to the standardised approach (TSA) is the product of
the multiplication of gross income (the “significant indicator” consisting of item 120 in the mandatory
income statement in the consolidated financial statements pursuant to Bank of Italy circular No. 262
of 22 nd December 2005), divided into supervisory lines of business, by the “beta” coefficients defined
in the supervisory regulations (see Bank of Italy circulars No. 263 of 27 th December 2006 and No. 155
of 18 th December 1991). The significant indicator for the supervisory lines of business was
extrapolated from management accounting data, by applying classification criteria defined by internal
regulations in compliance with supervisory instructions.
The capital requirement as at 31 st December 2011, calculated as the average of the requirements for
the last three years, amounted to €461 million. It was absorbed mainly by the following lines of
business: retail banking (47%), commercial banking (29%), retail brokerage (12%) and trading and
sales (9%). The average coefficient of absorption with respect to the significant indicator was 13%.
The capital requirement fell by €28.5 million (-6%) compared to the previous year, caused mainly by a
drop in gross income.
Section 2 - Risks for insurance companies
The Group controls the brokerage company UBI Insurance Broker and holds interests in the share
capital of insurance companies as part of banc assurance agreements with major insurance groups 1 .
In terms of risks, these equity investments are deducted from supervisory capital and account for
less than 0.3% of consolidated assets.
Section 3 - Risks for other companies
No significant risks are reported for the remaining companies included in the consolidation which are
not part of the banking Group and are not insurance companies.
1 The section “the scope of consolidation” in the consolidated management report may be consulted for details.
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