UBI Banca Group
UBI Banca Group
UBI Banca Group
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equity investments (including PerMicro), €2.5 million from the redemption of units in funds<br />
(of which €2.2 million managed by <strong>UBI</strong> Pramerica SGR resulting from the disposal of funds<br />
owned by the former Capitalgest SGR), approximately €1 million from debt instruments (of<br />
which €1.2 million relating to IW Bank) and €2.5 million from disposals of unsecured nonperforming<br />
loans (the main operation concerned B@nca 24-7 which disposed of two<br />
portfolios and realised a profit of €2.1 million).<br />
In 2010 the item amounted to €17.1 million and consisted of the following: €19.1 million from debt instruments,<br />
€10.1 million from equity instruments (of which €9.1 million relating to the disposal of the interest held in CartaSi<br />
Spa), €2 million from units in monetary and bond mutual funds, -€10.3 million from the repurchase of securities<br />
issued as part of ordinary business with customers, -€5.3 million from disposals of impaired loans by Centrobanca<br />
and +€1.5 million from the disposal by <strong>UBI</strong> <strong>Banca</strong> International of a loan to banks.<br />
The result for financial activities in the fourth quarter was a profit of €24 million (a profit of<br />
€20.6 million in the same quarter in 2010), compared to -€23.9 million in the previous three<br />
months.<br />
Trading activity contributed €14.1 million (-€5.3 million in the third quarter 2011),<br />
attributable primarily to trading in debt instruments and the relative derivatives and in<br />
interest rate derivatives (+€17.6 million, excluding -€2.6 million for hedge unwinding in the<br />
period) and foreign currency trading (+€4.3 million), while a loss was incurred on equity<br />
instruments and the relative derivatives (-€5.9 million), in connection mainly with a further<br />
impairment loss incurred on the equity investment in Medinvest (-€4.5 million).<br />
Financial assets designated at fair value recorded a loss of €4.4 million (the result of losses on<br />
remaining hedge funds). Hedging activity gave rise to a loss of €1.9 million, while profits from<br />
disposals and repurchases amounted to €16.2 million, including €12.8 million in relation to<br />
repurchases of securities issued already mentioned, €2 million to the gain on the disposal of<br />
unsecured non-performing loans by B@nca 24-7 and €1.4 million to the disposal of equity<br />
investments (<strong>Banca</strong> Valsabbina and PerMicro).<br />
Other net operating income amounted to €87.4 million (-€5 million) as a result of a reduction in<br />
revenues and in the item prior year income in particular (-€8.2 million), offset, but to a lesser<br />
extent, by a reduction in prior year expenses (-€3 million). The item included €3 million<br />
relating to requests for intervention by the Interbank Deposit Protection Fund and €3.3 million<br />
(non-recurring) allocated for the<br />
termination of <strong>UBI</strong> Leasing<br />
agent contracts (see also net<br />
provisions for risks and<br />
charges).<br />
While income included lower<br />
recoveries for insurance<br />
premiums (-€1.5 million, to be<br />
interpreted in relation to the<br />
corresponding expense item), an<br />
improvement was recorded in<br />
the item “recovery of expenses<br />
and other income on current<br />
accounts” (+€1.7 million),<br />
consistent with the volumes of<br />
business with customers during<br />
the year.<br />
Other net operating income and expense<br />
Figures in thousands of euro<br />
2011 2010<br />
Other operating income 157,219 165,869<br />
Recovery of expenses and other income on current accounts 15,458 13,745<br />
Recovery of insurance premiums 31,644 33,125<br />
Recoveries of taxes 163,065 153,846<br />
Rents and other income for property management 8,158 8,959<br />
Recovery of expenses on finance lease contracts 14,181 14,020<br />
Other income and prior year income 87,778 96,020<br />
Reclassification of "tax recoveries" (163,065) (153,846)<br />
Other operating expenses (69,776) (73,387)<br />
Depreciation of leasehold improvements (7,443) (6,898)<br />
Costs relating to finance lease contracts (7,145) (7,169)<br />
Expenses for public authority treasury contracts (6,977) (7,542)<br />
Ordinary maintenance of investment properties - -<br />
Other expenses and prior year expense (55,654) (58,676)<br />
Reclassification of depreciation of leasehold improvements 7,443 6,898<br />
Other net operating income and expense 87,443 92,482<br />
In 2010 the item included the following: a payment of €2.5 million to IW Bank for the final settlement of<br />
the litigation that had arisen with former officers of that bank; €1.7 million relating to a recovery from a<br />
network bank clawback revocation action and approximately € 1 million (non-recurring) for the disposal<br />
of BPCI’s correspondent banking operations (as part of the contribution of depository banking<br />
operations).<br />
Operating expenses decreased by €78.9 million (-3.2% compared to 2010), to €2,389.6<br />
million. If non-recurring items are excluded, expenses fell by €16.8 million (-0.7%).<br />
Personnel expense amounted to €1,423.2 million, down by €28.4 million, because they<br />
included non-recurring income of €27.9 million recognised in the third quarter within the line<br />
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