UBI Banca Group

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