UBI Banca Group

Generally, however, these investments were impacted by the cost of hedging fixed interest
rate securities (differentials paid on derivatives), although these decreased;
• the net balance on interbank business showed net expense of €27.5 million (-€14.3 million
in 2010), reflecting a relative increase in average debt and the related expense, in a context
of rising interest rates, although growth in average loans to banks was recorded at the same
time.
The changes in interest rates in the fourth quarter – after the vertical rises over the summer –
partly favoured the growth and also the composition of interest income, which rose to €544.6
million, up by 2% compared to the third quarter (+€10.4 million). This performance was driven
by a greater contribution from financial activities (up by €10.7 million, even though total
bonds held in portfolio remained unchanged during the quarter) and by basic stability for
business with customers (up by €2.4 million, the aggregate result of greater interest income,
but a higher cost of amounts due to customers, as a result of the different forms of funding
employed), while the interbank balance worsened (held down by growth in interest expense,
+€5 million).
Dividends of €20 million (€24.1 million in 2010), relate mainly to securities held in the AFS
portfolio of UBI Banca and included €11.6 million relating to the ordinary shares of Intesa
Sanpaolo, which were remunerated by the same amount in the comparative year (0.08 euro
per share).
The profits of equity-accounted investees 4 €9.9 million compared to €17.6 million in 2010 were
generated by: Aviva Vita (€6 million compared to €2 million before), Lombarda Vita (€4.5
million compared to €14.3 million), UBI Assicurazioni (a profit of €3.2 million compared to a
loss of €2.2 million), Aviva Assicurazioni Vita (a loss of €2.4 million compared to profit of €1.5
million before) and Arca SGR (a loss of €1.1 million compared to a profit of €2 million before).
Commission income: composition
Commission expense: composition
Figures in thousands of euro
2011 2010
Figures in thousands of euro
2011 2010
a) guarantees granted 49,793 42,648 a) guarantees received (807) (809)
c) management, trading and advisory services 622,140 683,743 c) management and trading services: (82,257) (90,276)
1. trading in financial instruments 38,410 39,462 1. trading in financial instruments (18,268) (16,368)
2. foreign exchange trading 11,868 12,259 2. foreign exchange trading (38) (281)
3. portfolio management 277,518 273,077 3. portfolio management (6,236) (5,772)
3.1. individual 72,042 72,968 3.1. own - (5,083)
3.2. collective 205,476 200,109 3.2. on behalf of third parties (6,236) (689)
4. custody and administration of securities 13,702 15,788 4. custody and administration of securities (6,979) (8,569)
5. depository banking - 7,751 5. placement of financial instruments (4,416) (4,942)
6. placement of securities 74,538 105,533 6. financial instruments, products and services
7. receipt and transmission of orders 40,852 43,565 distributed through indirect networks
(46,320) (54,344)
8. advisory activities 4,855 6,062 d) collection and payment services (44,141) (60,899)
8.1 on investments 4,855 5,958 e) other services (32,688) (44,908)
8.2 on financial structure - 104
9. distribution of third party services 160,397 180,246 Total (159,893) (196,892)
9.1. portfolio management 42 68
9.1.1. individual 42 68
9.2. insurance products 119,723 127,927
9.3. other products 40,632 52,251
d) collection and payment services 150,128 146,820
f) services for factoring transactions 26,486 26,995
i) current account administration 216,501 213,902
j) other services 288,553 268,081
Total 1,353,601 1,382,189 Net commission income 1,193,708 1,185,297
Net commission income totalled €1,193.7 million (+€8.4 million compared to 2010). In detail:
• commission income on ordinary banking business performed positively as follows: +€7.1
million from guarantees granted, +€20.1 million from collection and payment services (in
4 The item consists of the net profits of the companies recognised on the basis of the percentage interest held by the Group.
92