UBI Banca Group
UBI Banca Group
UBI Banca Group
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item “expenses for retired personnel” relating to a release of excess provisions 10 . In 2010 on the<br />
other hand, leaving incentives of €33.2 million (non-recurring) were charged to the income statement within the item<br />
“other employee benefits” in relation to a<br />
trade union agreement of 20 th May.<br />
Net of those items the personnel<br />
expense increased over twelve<br />
months by €32.8 million. This<br />
increase relates above all to variable<br />
components of wages (company<br />
bonuses and incentive schemes), net<br />
of which, despite normal growth<br />
(length of service increases,<br />
promotions and national labour<br />
contract increases), personnel<br />
expense was unchanged compared<br />
to 2010.<br />
The total expense continued to<br />
benefit from savings (approximately<br />
€39 million) in relation to a<br />
reduction in average personnel<br />
numbers (556), which includes the<br />
decrease in expense for workers on<br />
personnel leasing contracts (-€10.5<br />
million) and lower payments made<br />
to directors and statutory auditors (-€3.1 million).<br />
Personnel expense: composition<br />
2011 2010<br />
Figures in thousands of euro<br />
1) Employees (1,425,623) (1,411,084)<br />
a) Wages and salaries (983,736) (948,075)<br />
b) Social security charges (267,758) (250,714)<br />
c) Post-employment benefits (60,928) (62,432)<br />
d) Pension expense (74) (105)<br />
e) Provision for post-employment benefits (9,078) (10,817)<br />
f) Pensions and similar obligations: (2,930) (4,144)<br />
- defined contribution - -<br />
- defined service (2,930) (4,144)<br />
g) Payments to external supplementary pension plans: (50,431) (50,411)<br />
- defined contribution (50,154) (50,363)<br />
- defined benefits (277) (48)<br />
h) Expenses resulting from share based payments - -<br />
i) Other employee benefits (50,688) (84,386)<br />
2) Other personnel in service (6,504) (18,130)<br />
- Expenses for agency personnel on staff leasing<br />
contracts (3,671) (14,216)<br />
- Other expenses (2,833) (3,914)<br />
3) Directors and statutory auditors (19,001) (22,118)<br />
4) Expenses for retired personnel 27,932 (252)<br />
Total (1,423,196) (1,451,584)<br />
Other administrative expenses – €718 million – fell by €51.7 million (of which €5.2 million due<br />
to lower indirect taxes).<br />
Savings on current spending over twelve months (€46.5 million), included action to contain<br />
spending as follows:<br />
• professional and advisory services, down by €12.4 million, including -€5.2 million of<br />
savings on strategic and organisational advisory services linked to projects, -€4.3 million on<br />
professional IT services and -€2.9 million on other advisory services;<br />
• telephone and data transmission expenses, down by €11.4 million, including €4 million of<br />
savings in relation to the provision to manage IT fraud on credit cards, following the<br />
completion of the changeover to microchip technology, -€4.5 million on telephone expenses,<br />
-€2.1 million on information providers and -€0.8 million on data transmission expenses;<br />
• rent payable (-€5.8 million, due mainly to the renegotiation of existing contracts), postal<br />
expenses (-€5.3 million, partly in relation to lower volumes of hardcopy communication),<br />
outsourced services (-€4.8 million), to be interpreted in conjunction with the trend for<br />
postal expense), SW license and maintenance fees and HW lease instalments (-€2.8 million),<br />
printed stationery and consumables (-€2.2 million), credit recovery expenses (-€2.1 million),<br />
insurance premiums in relation to commercial products (-€1.5 million) and membership<br />
fees (-€1.4 million).<br />
Increases in expenses, on the other hand, involved the tenancy of premises (+€3.0 million, of<br />
which +€5.9 million for higher utilities expenses partially offset by lower condominium<br />
expenses) and advertising (+€1.3 million).<br />
Net impairment losses on property, equipment and investment property and intangible assets<br />
totalled €248.4 million and included a non recurring item of €3.5 million for the write-off of<br />
the B@nca 24-7 IT system held for sale. If the figure is normalised (€245 million), no<br />
significant change was recorded in impairment losses with respect to the comparative year<br />
10 This was the release of amounts recognised in previous years due to actuarial recalculations of post-retirement benefits, now no<br />
longer considered due. In the third quarter of 2011, the defined benefit obligation and the existing mathematical reserve were<br />
eliminated as a consequence with a positive impact on the item “administrative expenses: personnel expense” of approximately<br />
€27.9 million and the relative portion of the “fair value reserve actuarial gains/losses on defined benefit plans” amounting to<br />
approximately €2 million was reclassified within “retained earnings”. In consideration of the non-recurring nature of the event, the<br />
effects were subject to normalisation in the income statement.<br />
96