UBI Banca Group

Notes to the reclassified consolidated financial statements
The mandatory financial statements have been prepared on the basis of Bank of Italy Circular No. 262 of 22 nd December 2005
and subsequent updates.
The contribution of the depository banking operations was completed on 31 st May 2010.
With regard to the balance sheet, this involved the disposal on that date of all the assets and liabilities associated with these
operations, and of direct funding in particular – the most significant component consisting of the accounts for the
management of the UBI Pramerica investment funds – which had been reclassified from 30 th September 2009 and until 31 st
March 2010 within “liabilities associated with assets held for sale”.
With regard to the income statement, in addition to the gain resulting from that contribution, the interim figures for 2010
included the income and expense relating to assets held for sale, for the first five months only.
The following rules have been applied to the reclassified financial statements to allow a vision that is more consistent with a
management accounting style:
- the tax recoveries recognised within item 220 of the mandatory financial statements (other net operating income/expenses) were
reclassified as a reduction in indirect taxes included within other administrative expenses;
- the item profits (losses) of equity-accounted investees includes the profits (losses) of equity-accounted investees included within
item 240 of the mandatory financial statements;
- the item other net operating income/expense includes item 220, net of the reclassifications mentioned above.
- the item net impairment losses on property, equipment and investment property and intangible assets includes items 200 and 210
(the latter only partially) in the mandatory financial statements and also the instalments relating to the depreciation of leasehold
improvements classified within item 220;
- the item profits (losses) from the disposal of equity investments includes the item 240, net of profits (losses) of equity-accounted
investees and also item 270 in the mandatory financial statements;
- impairment losses on goodwill and finite useful life intangible assets (net of taxation and non-controlling interests) include items
210 (partially) and 260 in the mandatory financial statements.
The reconciliation of the items in the reclassified financial statements with the figures in the mandatory financial statements
has been facilitated, on the one hand, with the insertion in the margin against each item of the corresponding number of the
item in the mandatory financial statements with which it is reconciled and, on the other hand, with the preparation of specific
reconciliation schedules.
The comments on the performance of the main balance sheet and income statement items are made on the basis of the
reclassified financial statements and of the reclassified financial statements for the comparative periods, and the tables
providing details included in the subsequent sections of this financial report have also been prepared on that same basis.
In order to facilitate analysis of the Group’s performance and in compliance with Consob Communication No. DEM/6064293
of 28 th July 2006, a special schedule has been included in the reclassified financial statements to show the impact on
earnings only of the principal non-recurring events and items – since the relative effects on capital and cash flow, being
closely linked, are not significant – which are summarised as follows:
full year 2011:
- impairment losses on goodwill and finite useful life intangible assets (net of taxation and non-controlling interests);
- impairment losses on AFS equity investments in Intesa Sanpaolo, A2A and Siteba;
- Impairment losses on AFS units in OICRs (collective investment instruments);
- write-off of the B@nca 24-7 IT system held for disposal;
- tax realignment in accordance with Decree Law No. 98/2011 converted with amendments into Law No. 111 of 15 th July 2011 and
write-off of deferred income tax assets/deferred IRAP tax assets;
- impact of IRAP adjustment for deferred tax provisions recognised as at 31 st December 2010;
- expenses incurred for restructuring of UBI Leasing agent network;
- release of excess provisions;
full year 2010:
- impairment losses on AFS equity investments in Intesa Sanpaolo and A2A and also in the AFS fund TLcom;
- the contribution of depository banking operations;
- impairment losses on goodwill of Gestioni Lombarda (Switzerland);
- leaving incentives (trade union agreement of 20 th May 2010);
- tax impact of the branch switching operation;
- partial disposal (9.9%) of the investment held in the Lombarda Vita Spa joint venture;
- disposal of two branches by BDG;
- write-off of some components of IT systems by UBI.S and IW Bank;
- disposal by the Parent of a property located in via Solferino, Milan
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