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