UBI Banca Group

Compliance with that requirement at the end of the year required capital of €7,281 million (total
requirements), against which the Group recorded actual supervisory capital amounting to
€12,282 million.
Finally, the table that follows summarises compliance with requirements in terms of ratios. The
capital ratios as at 31 st December 2011, calculated on the basis of the Basel 2 standardised
approach, had increased compared to 31 st December 2010. The core tier one ratio (core tier one
capital net of preference shares and instruments subject to transition provisions/risk weighted
assets) stood at 8.56% (6.95% in December 2010). The tier one ratio rose from 7.47% (in
December 2010) to 9.09%, while the total capital ratio stands at 13.50% (11.17% in December
2010). The impairment losses on goodwill had no impact on the capital ratios.
The rise in all the capital ratios was generated – together with the effects of the share capital
increase – by the reduction in risk weighted assets (RWA).
More specifically, the capital requirement for credit risk fell compared to December 2010 by
approximately €206 million. This effect was the result of a fall in volumes of business that
occurred during the reporting period, which more than offset the other impacts (downgrades in
the last quarter of 2011, estimated at a greater requirement of almost €70 million).
With regard to market risk, on the other hand, the fall was of approximately €33 million of the
relative capital requirement, attributable to a decrease in the collective risk on debt and equity
instruments, which more than compensated for the negative impact of the application of the
“Basel 2.5” rules (greater requirements of approximately €4 million). Finally, the decrease in
consolidated gross income determined a fall in the capital requirement for operational risk.
Categories/Amounts
Amounts not w eighted
Weighted amounts/requirements
31/12/2011 31/12/2010 31/12/2011 31/12/2010
A. RISK ASSETS
A.1 Credit and counterparty risk 138,669,242 153,224,093 84,331,533 86,911,561
1. Standardised approach 138,665,393 153,129,218 84,328,842 86,890,359
2. Method based on internal ratings - - - -
2.1 Basic - - - -
2.2 Advanced - - - -
3. Securitisations 3,849 94,875 2,691 21,202
B. SUPERVISORY CAPITAL REQUIREM ENTS
B.1 Credit and counterp arty ri sk 6,746,523 6,952,925
B.2 M arket risk 73,545 106,636
1. Standard methodology 73,545 106,636
2.Internal models - -
3. Concentration risk - -
B.3 Op erati onal risk 460,749 489,312
1. Basic indicator approach 48,965 49,137
2. Standardised approach 411,784 440,175
3. Advanced measurement approach - -
B.4 Other prudent requirements - -
B.5 Other cal cul ati ons - -
B.6 Total p rudent requirements 7,280,817 7,548,873
C. RISK ASSETS AND SUPERVISORY RATIOS
C.1 Risk w eighted assets 91,010,213 94,360,908
C.2 Tier 1 capital/Risk w eighted assets (tier 1 capital ratio) 9.09% 7.47%
C.3 Supervisory capital including tier 3/risk w eighted assets
(Total capital ratio)
13.50% 11.17%
Section 3 – Insurance capital and supervisory ratios
No items of this type exist.
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