UBI Banca Group

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