MANAGEMENT REPORT - UBI Banca
MANAGEMENT REPORT - UBI Banca
MANAGEMENT REPORT - UBI Banca
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>MANAGEMENT</strong> <strong>REPORT</strong>
<strong>UBI</strong> <strong>Banca</strong>: Principal figures and indicators 1<br />
31.12.2008<br />
31.12.2007<br />
pro-forma<br />
STRUCTURAL INDICATORS<br />
Net lending to customers/total assets 16,9% 19,8%<br />
Funding from customers/total liabilities 32,2% 33,7%<br />
Net lending to customers/funding from customers 52,4% 58,6%<br />
Equity (including profit for the year)/total liabilities 16,7% 21,1%<br />
PROFIT INDICATORS<br />
ROE (Profit for the year/equity excluding profit for the year) 0,2% 8,1%<br />
ROE net of non-recurring items 4,3% 7,3%<br />
ROA (Profit for the year/total assets) 0,04% 1,6%<br />
The cost/income ratio (operating expenses/operating income) 58,9% 42,0%<br />
The cost/income ratio net of non-recurring items 54,9% 42,9%<br />
Dividends/operating income 141,3% 83,4%<br />
Staff costs/operating income 24,8% 19,6%<br />
CAPITAL RATIOS (De ce m be r 2008 "B a s e l 2"; Dec em be r 2007 "Ba s e l 1")<br />
Tier 1 ratio (tier 1 capital/total risk w eighted assets) 45,89% 29,33%<br />
Total capital ratio (supervisory capital+tier 3/total risk w eighted assets) 64,25% 38,98%<br />
Supervisory capital (in tho us ands o f euro ) 13.655.979 13.547.802<br />
of which: T ier 1 capital after the application of prudential filters and specific deductions 9.753.795 10.196.177<br />
Risk w eighted assets (in tho us a nds o f e uro ) 21.253.805 34.759.268<br />
BALANCE SHEET FIGURES (in tho us a nds o f e uro ), OPERATING AND STRUCTURAL<br />
Net loans to customers 10.446.768 10.266.957<br />
of which: net non-performing loans 849 913<br />
net impaired loans - -<br />
Direct funding from customers 19.942.079 17.529.719<br />
Shareholders’ equity (excluding profit for the year) 10.334.796 10.141.731<br />
Total assets 61.983.318 51.981.893<br />
Branches in Italy (number) 2 3<br />
Human resources totals (employees + temps) (number) 2 1.566 1.493<br />
1 The indicators have been calculated using the reclassified figures contained in the section “The 2008 and 2007 Reclassified financial<br />
statements (proforma) and reconciliations”.<br />
Information on the share is given in the relative section of this management report.<br />
2 Totals for human resource numbers are stated net of transfers on secondment (to and from) other companies in the Group in relation<br />
to the significant number of staff working on transfer from <strong>UBI</strong> <strong>Banca</strong> at other Group companies and at <strong>UBI</strong>.S in particular ( (914 at<br />
the end of 2008 and 1.072 in 2007). The figure stated therefore represents the number of staff actually employed at <strong>UBI</strong> <strong>Banca</strong> to<br />
perform the activities of the Parent Bank.<br />
473 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A
The 2008 and 2007 (pro-forma) reclassified<br />
financial statements and reconciliations<br />
Notes on the financial statements<br />
The mandatory financial statements prepared on the basis of Bank of Italy Circular No. 262 of<br />
22 nd December 2005 and subsequent amendments and additions incorporate the balance<br />
sheet and income statement figures for the former <strong>Banca</strong> Lombarda e Piemontese from 1 st<br />
April 2007, the date on which the merger took effect.<br />
In order to allow a uniform comparison of the performance of <strong>UBI</strong> Banc Scpa, pro-forma<br />
reclassified financial statements have therefore been prepared as at 31 st December 2007,<br />
which include the figures relating to the former BLP Group for the full year 2007 and they<br />
consequently contain the results for a full 12 month period, rather than nine months from 1 st<br />
April -31 st December 2007.<br />
No pro-forma restatement was made for the figures to 31 st December 2007 with regard to the<br />
contribution by <strong>UBI</strong> <strong>Banca</strong> of service and support operations to <strong>UBI</strong>.S, which took effect from<br />
1 st October 2007. The items relating to those operations could not be stated proforma, because<br />
they cannot be identified with accuracy. Consequently the figures for the two years are not<br />
perfectly comparable.<br />
The reclassified balance sheets (and also the mandatory statements) as at 31 st December 2007<br />
were affected by a reclassification of repurchase and reverse repurchase agreements with an<br />
institutional counterparty from the item “net interbank position” to the item “amounts due<br />
to/from customers”, which affected the related items in the income statements. This<br />
reclassification was necessary in order to align the classification of this counterparty in the<br />
former BL and BPU IT systems.<br />
In compliance with the international accounting standard IFRS 3, in the financial statements<br />
for 2007, the cost of acquisition (at the date of acquisition itself, amounting to 4,1 billion euro)<br />
was recognised in both the reclassified and the mandatory balance sheets by allocating it to<br />
the fair value of the assets (3,5 billion euro to equity investments) and liabilities of the merged<br />
bank, while maintaining the residual components within goodwill (approximately 570 million<br />
euro) 1 .<br />
The reclassified income statements include, in turn, the impact of the purchase price<br />
allocation, which was positive for <strong>UBI</strong> <strong>Banca</strong> by 3,5 million euro (a little more than 1 million<br />
euro in 2007).<br />
The following rules have been applied to the reclassified statements to allow a vision that is<br />
more consistent with a management accounting style:<br />
- the tax recoveries recognised under item 190 of the mandatory income statement (other operating<br />
income/(expenses) were reclassified as a reduction in indirect taxes included within other administrative expenses;<br />
- the item net impairment losses on property, plant and equipment and intangible assets includes items 170 and<br />
180 in the mandatory financial statements and the instalments relating to the depreciation of costs incurred for<br />
improvements to third party assets classified under item 190;<br />
- integration costs include leaving incentive plan expenses, the write-off of hardware and software (2007),<br />
consultancy costs and promotional and training expenses (2007), recognised within staff costs, net impairment<br />
losses on property, plant and equipment and intangible assets and other administrative expenses respectively.<br />
The reconciliation of the items in the reclassified financial statements with the figures in the<br />
mandatory financial statements, prepared on the basis of Bank of Italy Circular No. 262 of<br />
1 An analysis of the method adopted and details of the purchase price allocation to the assets and liabilities of the<br />
merged bank is given in the 2007 Annual Report in the Notes to the Financial Statements, Part G – Business<br />
combinations concerning companies or lines of business, which may be consulted.<br />
474 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A
22 nd December 2005, has been facilitated, on the one hand, with the insertion in the margin<br />
against each item of the corresponding number of the item in the mandatory financial<br />
statements with which it is reconciled and, on the other hand, with the preparation of specific<br />
reconciliation schedules.<br />
The comments on the performance of the main balance sheet and income statement items<br />
have been made on the basis of the reclassified financial statements and the pro-forma<br />
reclassified financial statements for the comparison periods.<br />
In order to facilitate analysis of the <strong>UBI</strong> <strong>Banca</strong>’s performance and in compliance with CONSOB<br />
Communication No. DEM/6064293 of 28 th July 2006, a special schedule has been included in<br />
the reclassified financial statements to show the impact on earnings only of the principal nonrecurring<br />
events and items – the relative effects on capital and cash flow not being<br />
significant, because they are closely linked – which are summarised as follows:<br />
full year 2008<br />
- integration costs resulting from the merger between the former BLP and the former BPU;<br />
- gains on the disposals of a portion of the interest in <strong>UBI</strong> Pramerica and on the interest held in Key<br />
Client (formerly CIM Italia) and in Centrale Bilanci; losses on the disposal of interests held in <strong>UBI</strong><br />
Sistemi e Servizi and in other Group member companies; impairment of the interest held in <strong>UBI</strong><br />
CentroSystem;<br />
- impairment of some AFS equity investments (Intesa Sanpaolo, London Stock Exchange, A2A);<br />
- index-linked policies purchased by customers with underlying securities issued by Icelandic banks<br />
now in default;<br />
- effects of the Lehman Brothers and Bernard Madoff affairs;<br />
- benefits resulting from tax redemptions on non accounting deductions (Section EC of the income tax<br />
return) and from the tax recognition of goodwill;<br />
full year 2007<br />
- integration costs resulting from the merger transaction (leaving incentives and other expenses<br />
including an estimate of write-offs for software and hardware to be abandoned);<br />
- reform of supplementary pensions;<br />
- impairment of the indirect investment in HRS-Help Rental Service (put into liquidation in July 2007);<br />
an endowment to the Marches Foundation; the non recoverability within the tax consolidation of the<br />
prior year tax losses of the former <strong>Banca</strong> Lombarda e Piemontese Spa relating to the first quarter of<br />
2007;<br />
- gain on Borsa Italiana share exchange;<br />
- benefit resulting from adjustments to deferred taxes to bring them into line with the new tax rates<br />
introduced by the 2008 Finance Act.<br />
475 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A
Reclassified balance sheet<br />
Figures in thousands of euro<br />
31.12.2008<br />
31.12.2007<br />
pro-forma<br />
Changes<br />
% change<br />
ASSETS<br />
10. Cash and cash equivalents 246.460 66.812 179.648 268,9%<br />
20. Financial assets held for trading 2.424.111 2.753.772 -329.661 -12,0%<br />
30. Financial assets at fair value 460.157 981.148 -520.991 -53,1%<br />
40. Available-for-sale financial assets 2.767.513 2.060.909 706.604 34,3%<br />
50. Held-to-maturity financial assets 1.620.567 1.244.574 375.993 30,2%<br />
60. Loans to banks 29.298.338 19.708.390 9.589.948 48,7%<br />
70. Loans to customers 10.446.768 10.266.957 179.811 1,8%<br />
80. Hedging derivatives 72.787 48.975 23.812 48,6%<br />
100. Equity investments 11.909.207 11.606.918 302.289 2,6%<br />
110. Property, plant and equipment 677.218 678.205 -987 -0,1%<br />
120. Intangible assets 596.756 588.673 8.083 1,4%<br />
of which: goodwill 569.058 569.694 -636 -0,1%<br />
130. Tax assets 593.405 528.085 65.320 12,4%<br />
140. Non-current assets and disposal groups held for sale 13.931 43.866 -29.935 -68,2%<br />
150. Other assets 856.100 1.404.609 -548.509 -39,1%<br />
Total assets 61.983.318 51.981.893 10.001.425 19,2%<br />
LIABILITIES AND SHAREHOLDERS’ EQUITY<br />
10. Due to banks 28.732.515 20.505.577 8.226.938 40,1%<br />
20. Due to customers 5.813.895 2.872.466 2.941.429 102,4%<br />
30. Securities issued 14.128.184 14.657.253 -529.069 -3,6%<br />
40. Financial liabilities held for trading 1.222.187 842.341 379.846 45,1%<br />
60. Hedging derivatives 74.820 54.001 20.819 38,6%<br />
80. Tax liabilities 411.849 606.326 -194.477 -32,1%<br />
100. Other liabilities 1.186.374 1.421.759 -235.385 -16,6%<br />
110. Staff severance provision 44.483 51.037 -6.554 -12,8%<br />
120. Provisions for liabilities and charges: 10.329 8.993 1.336 14,9%<br />
a) pension and similar obligations - - - -<br />
b) other provisions 10.329 8.993 1.336 14,9%<br />
130.+160.<br />
+170.+180. Share capital, share premiums and reserves 10.334.796 10.141.731 193.065 1,9%<br />
200. Profit for the year 23.886 820.409 -796.523 -97,1%<br />
Total liabilities and shareholders’ equity 61.983.318 51.981.893 10.001.425 19,2%<br />
476 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A
Reclassified quarterly balance sheets<br />
Figures in thousands of euro<br />
31st December<br />
2008<br />
30th September<br />
2008<br />
30th June 2008 31st March 2008<br />
31st December<br />
2007<br />
pro-forma<br />
30th September<br />
2007<br />
pro-forma<br />
30th June<br />
2007<br />
pro-forma<br />
31st March<br />
2007<br />
pro-forma<br />
ASSETS<br />
10. Cash and cash equivalents 246.460 132.865 89.797 91.149 66.812 47.459 53.231 48.929<br />
20. Financial assets held for trading 2.424.111 1.434.756 2.017.122 1.877.525 2.753.772 3.600.766 5.341.853 4.474.151<br />
30. Financial assets at fair value 460.157 993.918 1.195.485 1.116.263 981.148 983.750 1.889.981 2.625.374<br />
40. Available-for-sale financial assets 2.767.513 2.456.359 2.132.791 2.295.688 2.060.909 1.487.837 1.247.385 1.274.585<br />
50. Held-to-maturity financial assets 1.620.567 1.385.990 1.391.788 1.251.495 1.244.574 1.247.263 1.240.169 1.319.212<br />
60. Loans to banks 29.298.338 29.119.495 27.526.361 24.042.535 19.708.390 19.165.814 21.201.983 17.659.910<br />
70. Loans to customers 10.446.768 9.028.611 9.222.305 8.913.116 10.266.957 8.961.847 8.478.901 7.439.380<br />
80. Hedging derivatives 72.787 51.520 25.396 23.270 48.975 57.233 28.508 34.726<br />
100. Equity investments 11.909.207 11.714.899 11.709.110 11.706.993 11.606.918 11.540.925 11.484.117 11.472.535<br />
110. Property, plant and equipment 677.218 650.909 659.019 668.078 678.205 685.483 695.735 712.451<br />
120. Intangible assets 596.756 572.576 576.559 582.304 588.673 596.850 611.495 614.695<br />
of which: goodwill 569.058 569.058 569.058 569.058 569.694 569.694 578.294 569.694<br />
130. Tax assets 593.405 327.706 277.708 558.671 528.085 315.471 290.307 376.403<br />
140. Non-current assets and disposal groups held for sale 13.931 13.687 13.687 13.697 43.866 15.278 8.065 14.793<br />
150. Other assets 856.100 1.292.782 1.297.100 1.578.986 1.404.609 893.649 839.603 926.368<br />
Total assets 61.983.318 59.176.073 58.134.228 54.719.770 51.981.893 49.599.625 53.411.333 48.993.512<br />
LIABILITIES AND SHAREHOLDERS’ EQUITY<br />
10. Due to banks 28.732.515 28.892.512 26.641.509 23.902.524 20.505.577 17.706.494 22.178.367 18.409.305<br />
20. Due to customers 5.813.895 3.292.222 3.788.211 2.763.751 2.872.466 3.481.325 2.271.058 2.092.796<br />
30. Securities issued 14.128.184 14.108.477 14.567.300 14.306.376 14.657.253 15.066.538 15.241.039 15.339.933<br />
40. Financial liabilities held for trading 1.222.187 633.666 831.400 708.317 842.341 811.056 1.168.412 907.044<br />
60. Hedging derivatives 74.820 58.604 70.276 45.845 54.001 41.089 68.800 38.277<br />
80. Tax liabilities 411.849 446.489 349.267 734.640 606.326 598.316 508.711 627.923<br />
100. Other liabilities 1.186.374 1.011.153 1.056.770 1.449.021 1.421.759 892.239 881.931 824.526<br />
110. Staff severance provision 44.483 45.115 44.197 47.873 51.037 52.938 54.136 59.705<br />
120. Provisions for liabilities and charges: 10.329 16.191 16.045 9.564 8.993 56.742 55.832 11.850<br />
a) pension and similar obligations - - - - - - - -<br />
b) other provisions 10.329 16.191 16.045 9.564 8.993 56.742 55.832 11.850<br />
130.+160.+170.+180. Share capital, share premiums and reserves 10.334.796 10.066.367 10.060.756 10.807.780 10.141.731 10.146.295 10.165.110 10.699.520<br />
200. Profit for the year / period 23.886 605.277 708.497 -55.921 820.409 746.593 817.937 -17.367<br />
Total liabilities and shareholders’ equity 61.983.318 59.176.073 58.134.228 54.719.770 51.981.893 49.599.625 53.411.333 48.993.512<br />
477 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A
Reclassified income statement<br />
Figures in thousands of euro<br />
31.12.2008<br />
31.12.2007<br />
pro-forma<br />
Changes<br />
% change<br />
10.-20. Net interest income (250.789) (195.803) 54.986 28,1%<br />
70. Dividends and similar income 904.355 972.298 (67.943) (7,0%)<br />
40.-50. Net commission income 13.174 19.181 (6.007) (31,3%)<br />
80.+90.<br />
+100.+110.<br />
Net income from trading, hedging and disposal/repurchase activities<br />
and from assets/liabilities at fair value (192.843) 64.015 (256.858) n.s.<br />
190. Other operating income / (expense) 166.203 305.474 (139.271) (45,6%)<br />
Operating income 640.100 1.165.165 (525.065) (45,1%)<br />
150.a Staff costs (158.803) (228.572) (69.769) (30,5%)<br />
150.b Other administrative expenses (156.396) (191.641) (35.245) (18,4%)<br />
Net impairment losses on property, plant and equipment and<br />
170.+180.<br />
intangible assets (61.617) (68.838) (7.221) (10,5%)<br />
Operating costs (376.816) (489.051) (112.235) (22,9%)<br />
Net operating income 263.284 676.114 (412.830) (61,1%)<br />
130.a Net impairment losses on loans (4.400) (1.192) 3.208 269,1%<br />
130.b+c+d<br />
Net impairment losses on other assets/liabilities<br />
(496.077) (5.927) 490.150 n.s.<br />
160. Net provisions for liabilities and charges (1.733) (3.742) (2.009) (53,7%)<br />
210.+240. Profits (loss) from disposal of equity investments 17.542 (44) 17.586 n.s.<br />
Profit (loss) on continuing operations before tax (221.384) 665.209 (886.593) n.s.<br />
290. Taxes on income for the period for continuing operations 271.431 222.014 49.417 22,3%<br />
Integration costs (26.161) (66.736) (40.575) (60,8%)<br />
of which: staff costs (15.349) (52.019) (36.670) (70,5%)<br />
other administrative expenses (20.626) (24.779) (4.153) (16,8%)<br />
net impairment losses on property, plant and equipment and<br />
intangible assets (109) (26.854) (26.745) (99,6%)<br />
taxes 9.923 36.916 (26.993) (73,1%)<br />
280.<br />
After tax profit (loss) from discontinued operations - (78) 78 (100,0%)<br />
Profit for the year 23.886 820.409 (796.523) (97,1%)<br />
478 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Quarterly reclassified income statements<br />
2008<br />
2007<br />
Figures in thousands of euro<br />
4th Quarte r 3rd Quarte r 2nd Quarte r 1s t Quarte r<br />
4th Quarte r<br />
pro-forma<br />
3rd Quarte r<br />
pro-forma<br />
2nd Quarte r<br />
pro-forma<br />
1s t Quarte r<br />
pro-forma<br />
10.-20. Net interest income (64.784) (73.183) (62.220) (50.602) (56.604) (48.863) (46.725) (43.611)<br />
70. Dividends and similar income 1.151 1.285 870.280 31.639 1.285 195 942.921 27.897<br />
40.-50. Net commission income 3.677 2.748 2.213 4.536 5.247 5.860 3.725 4.349<br />
80.+90.<br />
+100.+110.<br />
Net income from trading, hedging and disposal/repurchase activities and from<br />
assets/liabilities at fair value (135.852) (32.378) 14.157 (38.770) 26.247 (5.006) 24.505 18.269<br />
190. Other operating income / (expense) 22.867 46.997 45.771 50.568 48.298 85.941 85.010 86.225<br />
Operating income (172.941) (54.531) 870.201 (2.629) 24.473 38.127 1.009.436 93.129<br />
150.a Staff costs (40.990) (36.032) (42.162) (39.619) (37.246) (61.995) (61.443) (67.888)<br />
150.b Other administrative expenses (41.276) (35.321) (40.863) (38.936) (55.378) (43.823) (47.211) (45.229)<br />
170.+180. Net impairment losses on property, plant and equipment and intangible assets (14.965) (14.487) (16.087) (16.078) (13.908) (18.539) (19.100) (17.291)<br />
Operating costs (97.231) (85.840) (99.112) (94.633) (106.532) (124.357) (127.754) (130.408)<br />
Net operating income (270.172) (140.371) 771.089 (97.262) (82.059) (86.230) 881.682 (37.279)<br />
130.a Net impairment losses on loans (4.917) 357 46 114 (1.496) 262 3 39<br />
130.b+c+d Net impairment losses on other assets and liabilities (495.541) (351) (159) (26) 507 (6.412) (12) (10)<br />
160. Net provisions for liabilities and charges (1.129) 772 945 (2.321) (1.616) (751) (685) (690)<br />
210.+240. Profits (loss) from disposal of equity investments (1.331) 522 (5.157) 23.508 174 (77) (131) (10)<br />
Profit (loss) on continuing operations before tax (773.090) (139.071) 766.764 (75.987) (84.490) (93.208) 880.857 (37.950)<br />
290. Taxes on income for the period for continuing operations 199.701 41.649 3.370 26.711 173.481 24.273 3.677 20.583<br />
Integration costs (8.002) (5.798) (5.716) (6.645) (15.121) (2.385) (49.230) -<br />
280. After tax profit (loss) from discontinued operations - - - - (54) (24) - -<br />
Profit (loss) for the period (581.391) (103.220) 764.418 (55.921) 73.816 (71.344) 835.304 (17.367)<br />
479 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Reclassified income statement net of the most significant non-recurring items<br />
Figures in thousands of euro<br />
Net interest income (250.789) (250.789) (195.803) (195.803) 54.986 28,1%<br />
Dividends and similar income 904.355 904.355 972.298 972.298 (67.943) (7,0%)<br />
Net commission income 13.174 13.174 19.181 19.181 (6.007) (31,3%)<br />
Net income from trading, hedging and<br />
disposal/repurchase activities and from<br />
assets/liabilities at fair value (192.843) (15.220) 61.689 (146.374) 64.015 (20.239) 43.776 (190.150) n.s.<br />
Other net operating income / (expenses) 166.203 166.203 305.474 6.645 312.119 (145.916) (46,8%)<br />
Operating income 640.100 - (15.220) - - 61.689 - 686.569 1.165.165 - - - 6.645 (20.239) - 1.151.571 (465.002) (40,4%)<br />
Staff costs (158.803) (158.803) (228.572) (5.499) (234.071) (75.268) (32,2%)<br />
Other administrative expenses (156.396) (156.396) (191.641) (191.641) (35.245) (18,4%)<br />
Net impairment losses on property, plant and<br />
31.12.2008<br />
Integration<br />
costs<br />
Disposal /<br />
impairment of<br />
equity investments<br />
Non-recurring items<br />
Impairment of<br />
AFS equity<br />
investments<br />
(Intesa<br />
Sanpaolo, LSE,<br />
A2A)<br />
Default of<br />
Icelandic banks<br />
Madoff /<br />
Lehman<br />
Tax redemption EC<br />
section and tax<br />
realignment on<br />
goodwill<br />
31.12.2008<br />
net of nonrecurring<br />
items<br />
equipment and intangible assets (61.617) (61.617) (68.838) (68.838) (7.221) (10,5%)<br />
Operating costs (376.816) - - - - - - (376.816) (489.051) - - (5.499) - - - (494.550) (117.734) (23,8%)<br />
Net operating income 263.284 - (15.220) - - 61.689 - 309.753 676.114 - - (5.499) 6.645 (20.239) - 657.021 (347.268) (52,9%)<br />
A<br />
31.12.2007<br />
pro-forma<br />
Integration costs<br />
Leaving<br />
incentives<br />
Other costs<br />
and IT system<br />
write-offs<br />
Impact of<br />
reform of<br />
supplementary<br />
pensions<br />
Non-recurring items<br />
HRS adjustment,<br />
Marches<br />
Foundation<br />
endowment, former<br />
BL tax loss in 1st Qtr<br />
2007<br />
Tax adjustments<br />
Borsa Italiana gain for 2008 Finance<br />
Act<br />
31.12.2007<br />
pro-forma<br />
net of nonrecurring<br />
items<br />
B<br />
Changes<br />
A-B<br />
Changes %<br />
A/B<br />
Net impairment losses on loans (4.400) 4.827 427 (1.192) (1.192) 1.619 n.s.<br />
Net impairment losses on other assets/liabilities (496.077) 488.141 (7.936) (5.927) 5.575 (352) 7.584 n.s.<br />
Net provisions for liabilities and charges (1.733) 1.500 (233) (3.742) (3.742) (3.509) (93,8%)<br />
Profits (loss) from disposal of equity investments 17.542 (14.990) 2.552 (44) (44) 2.596 n.s.<br />
Profit (loss) on continuing operations before<br />
tax (221.384) - (30.210) 488.141 1.500 66.516 - 304.563 665.209 - - (5.499) 12.220 (20.239) - 651.691 (347.128) (53,3%)<br />
Taxes on income for the period for continuing<br />
operations 271.431 8.239 (28.707) (413) (18.292) (95.247) 137.011 222.014 1.815 5.222 1.069 (142.318) 87.802 49.209 56,0%<br />
Integration costs (26.161) 26.161 - (66.736) 33.705 33.031 - - -<br />
of which: staff costs (15.349) 15.349 - (52.019) 50.306 1.713 - - -<br />
other administrative expenses (20.626) 20.626 - (24.779) 24.779 - - -<br />
net impairment losses on property, plant and<br />
equipment and intangible assets (109) 109 - (26.854) 26.854 - - -<br />
taxes 9.923 (9.923) - 36.916 (16.601) (20.315) - - -<br />
After tax profit (loss) from discontinued<br />
operations - - (78) (78) 78 100,0%<br />
Profit for the year 23.886 26.161 (21.971) 459.434 1.087 48.224 (95.247) 441.574 820.409 33.705 33.031 (3.684) 17.442 (19.170) (142.318) 739.415 (297.841) (40,3%)<br />
480 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Reconciliation schedule to 31st December2008<br />
RECLASSIFIED INCOM E STATEM ENT<br />
31s t De c e mbe r<br />
2008<br />
Reclassifications<br />
31s t De c e mbe r<br />
2008<br />
Ite ms<br />
Figures in thous ands of euro<br />
S e parate<br />
mandato ry<br />
financ ial<br />
s tate me nt<br />
Integration<br />
costs<br />
Tax recoveries<br />
Deprec. for<br />
improvem-ents<br />
to leased<br />
ass ets<br />
Re c las s ifie d<br />
financ ial<br />
s tate me nt<br />
10.-20. Net interes t income (250.789) (250.789)<br />
70. Dividends and s imilar income 904.355 904.355<br />
40.-50. Net commis sion income 13.174 13.174<br />
80.+90.+<br />
100.+110.<br />
Net income from trading, hedging and dis pos al/repurchas e activities and from<br />
as sets/liabilities at fair value<br />
(192.843) (192.843)<br />
190. Other net operating income / (expens es ) 166.082 (109) 230 166.203<br />
Ope rating inc o me 639.979 - (109) 230 640.100<br />
150.a Staff costs (174.152) 15.349 (158.803)<br />
150.b Other administrative expenses (177.131) 20.626 109 (156.396)<br />
170.+180. Net impairment loss es on property, plant and equipment and intangible as sets (61.496) 109 (230) (61.617)<br />
Ope rating c o s ts (412.779) 36.084 109 (230) (376.816)<br />
Ne t o pe rating inc o me 227.200 36.084 - - 263.284<br />
130.a Net impairment loss es on loans (4.400) (4.400)<br />
130.b+c+d Net impairment loss es on other ass ets /liabilities (496.077) (496.077)<br />
160. Net provisions for liabilities and charges (1.733) (1.733)<br />
210.+240. P rofits (loss ) from disposal of equity investments 17.542 17.542<br />
P ro fit (lo s s ) o n c o ntinuing o pe ratio ns be fo re tax (257.468) 36.084 - - (221.384)<br />
290. Taxes on income for the period for continuing operations 281.354 (9.923) 271.431<br />
Integration costs (26.161) (26.161)<br />
P ro fit fo r the ye ar 23.886 - - - 23.886<br />
481 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Reconciliation schedule to 31st December 2007<br />
Ite ms<br />
RECLASSIFIED INCOM E STATEM ENT<br />
Figures in thousands of euro<br />
31s t<br />
De c e mbe r<br />
2007<br />
s e parate<br />
mandato ry<br />
financ ial<br />
s tate me nt<br />
pro -fo rma e ffe c t<br />
1st Quarter<br />
2007 <strong>Banca</strong><br />
Lombarda e<br />
P iemontese<br />
P P A effect<br />
1st Q. 2007<br />
integration<br />
costs<br />
reclassifications<br />
tax<br />
recoveries<br />
Deprec. for<br />
improvements<br />
to<br />
leased<br />
assets<br />
31s t<br />
De c e mbe r<br />
2007 pro -<br />
fo rma<br />
re c las s ifie d<br />
financ ial<br />
s tate me nt<br />
10.-20. Net interest income (184.186) (12.073) 456 (195.803)<br />
70. Dividends and similar income 972.115 183 - 972.298<br />
40.-50. Net commission income 17.840 1.341 - 19.181<br />
80.+90.+<br />
100.+110.<br />
Net income from trading, hedging and dispos al/repurchase activities and from<br />
as sets/liabilities at fair value 50.889 13.126 - 64.015<br />
190. Other net operating income / (expenses) 297.557 8.058 - (370) 229 305.474<br />
Ope rating inc o me 1.154.215 10.635 456 - (370) 229 1.165.165<br />
150.a Staff costs (268.923) (11.668) - 52.019 (228.572)<br />
150.b Other administrative expenses (207.410) (9.380) - 24.779 370 (191.641)<br />
170.+180. Net impairment losses on property, plant and equipment and intangible assets (94.983) (452) (28) 26.854 (229) (68.838)<br />
Ope rating c o s ts (571.316) (21.500) (28) 103.652 370 (229) (489.051)<br />
Ne t o pe rating inc o me 582.899 (10.865) 428 103.652 - - 676.114<br />
130.a Net impairment losses on loans (1.208) 16 - (1.192)<br />
130.b+c+d Net impairment losses on other assets/liabilities (5.927) 0 - (5.927)<br />
160. Net provisions for liabilities and charges (3.732) (10) - (3.742)<br />
210.+240. P rofits (loss) from disposal of equity investments (22) (22) - (44)<br />
P ro fit (lo s s ) o n c o ntinuing o pe ratio ns be fo re tax 572.010 (10.881) 428 103.652 - - 665.209<br />
290. Taxes on income for the period for continuing operations 255.849 3.244 (163) (36.916) 222.014<br />
Integration costs - - - (66.736) (66.736)<br />
280. After tax profit (loss) from discontinued operations (78) - - (78)<br />
P ro fit fo r the ye ar 827.781 (7.637) 265 - - - 820.409<br />
482 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
<strong>UBI</strong> <strong>Banca</strong> – organisation chart<br />
<strong>UBI</strong> <strong>Banca</strong> Scpa is a co-operative bank listed on the stock exchange, the parent of the banking<br />
group of the same name, with a federal, polyfunctional and integrated organisational model<br />
and market focused product range.<br />
Within this organisation, the federated Network Banks – each focused on their own<br />
geographical areas where they benefit from strong roots in local communities and are<br />
responsible for business with their customers – operate with the assistance and support of<br />
product companies and of a Parent Bank with duties of management, co-ordination and<br />
control.<br />
As the Parent Bank, <strong>UBI</strong> <strong>Banca</strong> performs the functions of strategic policy-making (formulating<br />
the business strategy common to the Group as a whole), of supervising business functions (by<br />
supporting and co-ordinating the commercial activities of the network banks and product<br />
companies), monitoring risks and providing centralised services (either directly or through<br />
subsidiaries).<br />
With regard to governance, <strong>UBI</strong> <strong>Banca</strong> chose to adopt a dualistic system, with full respect for<br />
the prerogatives and specific characteristics of the two corporate bodies which hold distinct<br />
responsibilities for supervision and management.<br />
The role of supervising the functioning of the Internal System of Control in accordance with<br />
article 43 bis of the Corporate By-Laws was assigned to the member of the Management Board<br />
Alfredo Gusmini and the role of “Senior executive officer responsible for preparing the<br />
company accounting documents under Art. 154 bis of Legislative Decree No. 58/1998<br />
(consolidated law on finance) was assigned to Elisabetta Stegher.<br />
- INTERNAL CONTROL COMMITTEE<br />
SUPERVISORY<br />
BOARD<br />
- REMUNERATION COMMITTEE<br />
- APPOINTMENTS COMMITTEE<br />
- ACCOUNTING COMMITEE<br />
SUPPORT TO THE<br />
SUPERVISORY<br />
BOARD (A. Arrigo)<br />
PARENT BANK AND<br />
GROUP AUDIT<br />
(F. Rota Conti)<br />
<strong>MANAGEMENT</strong><br />
BOARD<br />
CHIEF EXECUTIVE<br />
OFFICER<br />
(V. Massiah)<br />
STRATEGY AND<br />
CONTROL<br />
(R. Leidi)<br />
GENERAL MANAGER<br />
(R.Sora)<br />
Staff COMPLIANCE (M.<br />
Martinelli)<br />
JOINT GENERAL<br />
MANAGER<br />
(G. Caldiani)<br />
<strong>UBI</strong> SISTEMI E<br />
SERVIZI SCpA<br />
(Rigamonti/ Sonnino)<br />
LEGAL AND<br />
CORPORATE<br />
AFFAIRS (E. Medda)<br />
ADMINISTRATION AND<br />
DEPOSITORY BANKING<br />
(R. Sora - a.i.)<br />
FINANCE AND<br />
INTERNATIONAL<br />
(E. Medda)<br />
COMMERCIAL<br />
(F. Iorio)<br />
HUMAN RESOURCES<br />
AND ORGANISATION<br />
(G. Caldiani a.i.)<br />
LENDING (G.<br />
Lupinacci)<br />
CREDIT RECOVERY<br />
(E. Bottoli)<br />
- ICT<br />
- Back Office<br />
- Operational organisation Macro Areas<br />
- Operational logistics<br />
- Real estate Areas<br />
- Purchasing<br />
483 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Human resources<br />
As at 31 st December 2008 the employees of <strong>UBI</strong> <strong>Banca</strong> numbered 2.259, a reduction compared<br />
to 2.295 at the end of 2007. The reduction by 36 persons was the result of 158 appointments<br />
(52 relating to intragroup transfers) and 194 staff leaving consisting of 16 under early<br />
retirement schemes, 82 applying to the “Solidarity Fund” and 45 due to intragroup transfers.<br />
In terms of staff actually working for the Parent Bank – the “work force” calculated by<br />
adjusting the numbers of employees to take account of staff on secondment from and to other<br />
Group member companies as well as staff working under agency leasing contracts – there was<br />
an increase of 73 related primarily to the centralisation of operations in accordance with the<br />
Business Plan.<br />
Composition of personnel by "work force"<br />
31.12.2008<br />
31.12.2007<br />
(*)<br />
Change<br />
Employees of <strong>UBI</strong> <strong>Banca</strong> 2.259 2.295 -36<br />
Staff on secondment at other Group member companies -1.122 -1.175 53<br />
Staff on secondment from other Group member companies 383 338 45<br />
Total employees in service at <strong>UBI</strong> <strong>Banca</strong> 1.520 1.458 62<br />
Workers on agency staff leasing contracts (**) 46 35 11<br />
TOTAL W ORK FORCE 1.566 1.493 73<br />
(*) The figures as at 31 st December 2007 were adjusted to take account of Mercati Finanziari Sim staff, merged with effect from 1 st<br />
January 2008.<br />
(*) Staff leasing, regulated by Legislative Decree No, 276 of 10 th September 2003, replaced the temporary agency work contracts<br />
regulated by Law No. 196 of 24 th June 1997.<br />
As can be seen from the table which gives the composition of the workforce, at the end of year<br />
1.122 staff were on secondment to other Group member companies, more than 80% (for a<br />
total of 914) consisting of personnel working at <strong>UBI</strong> Sistemi e Servizi (<strong>UBI</strong>.S). In this respect<br />
trade union agreements relating to the business assets transferred from <strong>UBI</strong> <strong>Banca</strong> to <strong>UBI</strong><br />
Sistemi e Servizi were concluded and on the basis of these and given the complexity of the<br />
organisational redundancy processes and how quickly the capital contribution was<br />
implemented, non executive personnel will remain as employees of <strong>UBI</strong> <strong>Banca</strong> and at the same<br />
time they have been placed on temporary secondment at <strong>UBI</strong>.S until 31 st December 2010,<br />
while the employment contracts of the staff concerned will in any case be transferred to <strong>UBI</strong>.S<br />
from 1 st January 2011.<br />
As can be seen from the table which gives the composition of personnel by level, there were no<br />
significant changes in the percentage distribution of employees in service at <strong>UBI</strong> <strong>Banca</strong><br />
compared to the previous year.<br />
Composition of personnel by management level<br />
31.12.2008 % 31.12.2007 %<br />
Senior managers 140 9,2% 142 9,7%<br />
Middle managers 3rd and 4th level 388 25,5% 379 26,0%<br />
Middle managers 1st and 2nd level 309 20,3% 284 19,5%<br />
3rd Professional Area (office staff) 677 44,6% 637 43,7%<br />
1st and 2nd Professional Area (other personnel) 6 0,4% 16 1,1%<br />
TOTAL EM PLOYEES IN SERVICE AT <strong>UBI</strong> BANCA 1.520 100,0% 1.458 100,0%<br />
The average age of the employees of <strong>UBI</strong> <strong>Banca</strong> at the end of 2008 was 41 years and 10<br />
months, unchanged compared to 2007, while the average length of service was 13 years and<br />
11 months (14 years in 2007).<br />
The percentage of female personnel was 33,6%, the same as for the Group and approximately<br />
half a percentage point higher than at the end of 2007.<br />
484 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Training, the integration of human resources and trade union relations are activities coordinated<br />
at Group level and they are dealt with in the relative sub-sections of the section<br />
“human resources” in the consolidated management report which may be consulted.<br />
485 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The macroeconomic scenario<br />
Information on the context in which <strong>UBI</strong> <strong>Banca</strong> operated during the year is provided in the<br />
section “The macroeconomic scenario” of the report on consolidated operations.<br />
Traditional banking business<br />
Funding<br />
Direct funding from customers, consisting of liability item 20 “due to customers” and liability<br />
item 30 “securities issued”, had almost reached 20 billion euro at the end of the 2008, an<br />
increase of 2,4 billion euro (+13,8%) compared to the previous year.<br />
As can be seen from the table, despite the partial change in the composition of the item with<br />
an increase in funding from customers (which more than doubled over twelve months, from<br />
almost 2,9 billion euro to 5,8 billion euro), securities issued, accounting for 70,8% of the total,<br />
continue to represent the principal source of funding, consistent with the functions of <strong>UBI</strong><br />
<strong>Banca</strong> as the centralised manager of liquidity for the Group.<br />
Securities issued as at 31 st December 2008 – consisting entirely of bonds – amounted to 14,1<br />
billion euro, a slight decrease (-3,6%) compared to the end of 2007, attributable primarily to<br />
changes in institutional funding from EMTN (Euro Medium Term Notes) securities, which fell<br />
by 1,1 billion euro (-8,4%) 1 .<br />
Direct funding from customers<br />
Changes<br />
31.12.2008 % 31.12.2007 %<br />
Figures in thousands of euro amount %<br />
Due to customers 5.813.895 29,2% 2.872.466 16,4% 2.941.429 102,4%<br />
Securities issued 14.128.184 70,8% 14.657.253 83,6% -529.069 -3,6%<br />
of which: EMT N securities subscribed by institutional<br />
customers (*) 12.339.600 61,9% 13.470.457 76,8% -1.130.857 -8,4%<br />
TOTAL DIRECT FUNDING 19.942.079 100,0% 17.529.719 100,0% 2.412.360 13,8%<br />
of which:<br />
- intragroup (bonds subscribed by banks in the Group) 167.001 0,8% 169.945 1,0% -2.944 -1,7%<br />
- subordinated liabilities 3.481.505 17,5% 3.302.878 18,8% 178.627 5,4%<br />
- subordinated deposits (**) 448.212 2,2% 444.550 2,5% 3.662 0,8%<br />
- subordinated securities (***) 3.033.293 15,2% 2.858.328 16,3% 174.965 6,1%<br />
of which: EMT N (*) 2.036.630 10,2% 2.239.635 12,8% -203.005 -9,1%<br />
(*) The corresponding nominal values amounted to 12.222 million euro (2.000 million euro subordinated) as at 31 st December 2008 and<br />
to 13.378 million euro (2.200 million subordinated) as at 31 st December 2007.<br />
(**) The figure relates to deposits made by BPB Funding LLC for a nominal amount of 300 million and by BPCI Funding LLC for a<br />
nominal amount of 115,001 million.<br />
(***) Subordinated securities included a deposit purchased by <strong>Banca</strong> Lombarda Preferred Capital Co Llc for a nominal amount of 155<br />
million euro.<br />
1 That part of the total securities issued by <strong>UBI</strong> <strong>Banca</strong> not attributable to institutional funding (EMTN) and to<br />
intragroup transactions (securities purchased by Group banks) – amounting to 1,6 billion euro (1 billion at the end of<br />
2007) – includes the listed bond “<strong>UBI</strong> Subordinato Lower Tier II a tasso variabile con ammortamento 28.11.2008-2015”<br />
issued in November 2008 to customers of the network banks of the Group for a nominal amount of 599.4 million euro.<br />
486 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
At the end of the year funding on international markets performed within the EMTN<br />
programme amounted to a nominal 12,2 billion euro (2 billion euro in subordinated form),<br />
with a maximum ceiling authorised by the London listing authority on 17 th September 2008 of<br />
15 billion euro 2 .<br />
At total of only two new issues were performed in 2008 between May and June in private form<br />
for a total nominal amount of 260 million euro against redemptions of approximately 1.416<br />
million euro (200 million relating to a subordinated lower tier 3 security).<br />
EMTN securities amounting to 3,6 billion euro mature in 2009 (including 1,35 billion euro<br />
already redeemed at the date of this report) and a further 1,4 billion euro will mature in 2010.<br />
All the EMTN securities are admitted for trading: the new <strong>UBI</strong> <strong>Banca</strong> issues and those<br />
originally issued by the former BPU <strong>Banca</strong> on the London stock exchange; those issued by the<br />
former <strong>Banca</strong> Lombarda e Piemontese on the Luxembourg stock exchange.<br />
The low level of resort to international institutional funding reflects the liquidity crisis which<br />
has affected markets for more than a year now and which has caused a significant broadening<br />
of the spread requested by investors. In this context <strong>UBI</strong> <strong>Banca</strong> has suspended issues since<br />
the fourth quarter of 2007, despite the existence of securities that are maturing, as it seeks to<br />
diversify its sources of funding.<br />
In this respect authorisation formalities for the programme to issue covered bonds pursuant to<br />
article 7 bis of Law No. 130/1999 were completed by the Parent Bank, <strong>UBI</strong> <strong>Banca</strong>. This<br />
programme, which was presented at the beginning of July on a road show in major European<br />
financial centres, is for maximum issues of 10 billion euro. The bonds, which have already<br />
been given a “triple A” preliminary rating by the agencies Standard & Poor’s, Moody’s and<br />
Fitch Ratings will be listed on the London Stock Exchange.<br />
No issuances of these instruments have been performed yet as a result of the continuing<br />
difficult conditions on markets. <strong>UBI</strong> <strong>Banca</strong> intends to monitor the situation carefully in order<br />
to take advantage of any opportunities for funding that may arise in 2009.<br />
Net of the institutional component consisting of the EMTN issues, the direct funding of the<br />
Parent Bank at the end of year amounted to 7,6 billion euro compared to 4,1 billion in<br />
December 2007 (+87,3%).<br />
Finally with regard to amounts due to customers, the details of the different types of funding<br />
given in the notes to the accounts (Part B, Section 2 of the balance sheet liabilities part, Table<br />
2.1) show that the growth in the total (+3 billion euro over twelve months) is attributable<br />
principally to repurchase agreement transactions with the Cassa di Compensazione e Garanzia<br />
(central counterparty clearing), as part of the policy to diversify funding already mentioned.<br />
These transactions totalled 3,4 billion euro, of which 1,9 billion euro (468 million euro in<br />
December 2007) relating to “repurchase agreements against assets transferred not<br />
derecognised” and 1,5 billion euro to “financing in repurchase agreements” for which the<br />
underlying derives from IW Power products sold by IW Bank to its customers (not present at<br />
the end of 2007).<br />
Finally indirect funding from ordinary customers as at 31 st December 2008 amounted to 58<br />
thousand euro, compared to 62 thousand in the previous year, consisting mainly of securities<br />
under custody. Within the item, assets under management fell to 5 thousand euro from 6<br />
thousand euro in December 2007.<br />
2 The programme currently in existence is the result, not only of the new issuances performed by <strong>UBI</strong> <strong>Banca</strong>, but also<br />
of bonds originally issued under the programmes of the former BPU <strong>Banca</strong> and of the former <strong>Banca</strong> Lombarda e<br />
Piemontese, with maximum limits of 10 billion euro and 6 billion euro respectively. Following the merger of <strong>Banca</strong><br />
Lombarda e Piemontese into BPU <strong>Banca</strong>, the issuing programme of the merged bank was no longer renewed.<br />
General meetings of the bondholders have been convened with regard to five bonds, issued for a total of 3,750<br />
million euro as part of the programme of the former <strong>Banca</strong> Lombarda e Piemontese, and to a private placement for<br />
25 million euro performed in 2000 as part of a programme of the former <strong>Banca</strong> Popolare di Bergamo-CV, in order to<br />
bring the relative sets of regulations into line with those of the other bonds in issue.<br />
487 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Lending<br />
At the end of December Parent Bank lending exceeded 10,4 billion euro, almost unchanged<br />
compared to 10,3 billion euro twelve months previously.<br />
Composition of loans to customers<br />
Changes<br />
31.12.2008 % 31.12.2007 %<br />
Figures in thousands of euro<br />
amount %<br />
Current account overdrafts 500.963 4,8% 561.737 5,5% -60.774 -10,8%<br />
Reverse repurchase agreements 3.076 0,0% 553.663 5,4% -550.587 -99,4%<br />
Mortgage loans and other medium-to-long term financing 3.733.387 35,8% 668.904 6,5% 3.064.483 458,1%<br />
Credit cards, personal loans and salary backed loans - - - - - -<br />
Finance leases - - - - - -<br />
Factoring - - - - - -<br />
Other transactions 6.090.080 58,3% 8.402.639 81,8% -2.312.559 -27,5%<br />
Debt securities 118.413 1,1% 79.101 0,8% 39.312 49,7%<br />
Impaired assets 849 0,0% 913 0,0% -64 -7,0%<br />
Assets transferred not derecognised - - - - - -<br />
TOTAL 10.446.768 100,0% 10.266.957 100,0% 179.811 1,8%<br />
As shown in table, the composition of the total – attributable mainly to the requirements of the<br />
non banking companies in the Group – changed partially with a fall in the item “other<br />
transactions” (-2,3 billion euro to 6,1 billion euro) and an increase in “mortgage loans and<br />
other medium-to-long term financing” (+3,1 billion euro to 3,7 billion euro) which came to<br />
account for almost 36% of the total.<br />
This change reflects longer funding maturities in the leasing sector, designed to ensure a<br />
closer matching of maturities between assets and liabilities. At the end of 2008 almost all of<br />
the longer term lending (approximately 3,7 billion euro) was to <strong>UBI</strong> Leasing, a company formed<br />
during the year from the merger of BPU Esaleasing into SBS Leasing.<br />
The item “other transactions” – which also continues to represent the main type of lending –<br />
includes lending by <strong>UBI</strong> <strong>Banca</strong> to <strong>UBI</strong> Leasing (3,9 billion euro) and <strong>UBI</strong> Factor (2 billion euro).<br />
Reverse repurchase agreements with counterparties outside the Group were reduced as part of<br />
a policy to optimise liquidity management. Transactions existing at the end of the year<br />
amounted to just 3 million euro, down from 554 million euro at the end of 2007.<br />
The ratio of lending to funding in December had fallen to 52,4% from 58,6% in the previous<br />
year in relation to the different trends that had affected the two aggregates. This ratio also<br />
reflects the particular nature of the banking business performed by <strong>UBI</strong> <strong>Banca</strong> as the Parent<br />
Bank.<br />
Given the prevalent intragroup nature of its lending, net non performing loans, down by 7% to<br />
849 thousand euro, amounted again to a very negligible percentage of the total (0,008%).<br />
As concerns periodic reporting of large risks, at the end of 2008 BPU <strong>Banca</strong> had no positions<br />
exceeding 10% of the supervisory capital, positions with companies forming part of the<br />
banking group being excluded from this reporting.<br />
Finally guarantees granted amounted to more than 1,3 billion euro, a decrease of 8,3%<br />
compared to approximately 1,5 billion euro at the end of 2007. They were composed as<br />
follows:<br />
- financial guarantees of 859 million euro, consisting of 656 million euro on behalf of <strong>UBI</strong><br />
Factor, 123,4 million euro on behalf of BPCI Funding Llc and 41,5 million euro on behalf of<br />
UBS leasing;<br />
- commercial guarantees of 481 million euro. These consisted of 132,2 million euro on<br />
behalf of <strong>UBI</strong> Leasing, 120 million euro on behalf of Coralis Rent, 40 million euro on behalf<br />
of Aviva Assicurazioni Vita and 10 million euro on behalf of Aviva Vita, while the remaining<br />
portion was on behalf of ordinary customers.<br />
488 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Operations on the interbank market<br />
The net interbank position at the end 2008 was positive by 566 million euro, compared to a<br />
negative position of 797 million euro twelve months previously.<br />
As already mentioned, <strong>UBI</strong> <strong>Banca</strong> acts as the centralised manager of Group liquidity and it<br />
therefore performs a high level of intragroup interbank transactions.<br />
Interbank market<br />
Changes<br />
31.12.2008 31.12.2007<br />
Figures in thousands of euro amount %<br />
Loans to banks 29.298.338 19.708.390 9.589.948 48,7%<br />
of which:<br />
- intragroup 27.855.529 18.048.920 9.806.609 54,3%<br />
of which: intragroup securities 13.450.878 4.996.506 8.454.372 169,2%<br />
Due to banks 28.732.515 20.505.577 8.226.938 40,1%<br />
of which:<br />
- intragroup 25.343.420 14.219.010 11.124.410 78,2%<br />
of which: subordinated deposits 1.293.496 1.260.634 32.862 2,6%<br />
Net interbank position 565.823 -797.187 1.363.010 -171,0%<br />
of which: intragroup 2.512.109 3.829.910 -1.317.801 -34,4%<br />
If the activity performed as the centralised manager of liquidity is separated from that with<br />
counterparties on the market, the result, as shown in the table is a net intragroup creditor<br />
position of 2,5 billion euro (+3,8 billion euro at the end of 2007), against a net debtor position<br />
with respect to the banking sector of -1,9 billion euro (-4,6 billion euro at the end of 2007),<br />
which becomes -2,5 billion euro net of positions with the central bank (-4,3 at the end of<br />
2007).<br />
Intragroup transactions intensified during the course of the year in order to optimise the use<br />
of all internal financial resources. In detail, a rebalancing of the growth in lending and funding<br />
with customers performed in the fourth quarter at Group level enabled <strong>UBI</strong> <strong>Banca</strong> to reduce<br />
its resort to funding on the market and to thereby improve its net debt position.<br />
The consolidated management report may be consulted for full information on the action<br />
taken to address difficulties encountered on the interbank liquidity market.<br />
Loans to banks, as at 31 st December, net of the compulsory reserve requirements held with the<br />
central bank, amounted to 28,3 billion euro, an increase of 44,9% (+8,8 billion euro) compared<br />
to the end of 2007. Lower exposures on current account overdrafts (-5,8 billion euro) were<br />
offset by greater lending consisting of term deposits (+2,7 billion euro), “other financing” (+3,4<br />
billion euro) and debt securities issued by the banks in the Group (+8,5 billion euro).<br />
The latter (totalling 13,5 billion euro) were used in part (6,8 billion euro) to support repurchase<br />
agreement business with the customers of the Network Banks.<br />
The growth in “other financing” on the other hand, was primarily attributable to reverse<br />
repurchase agreements used by the banks in the Group to transfer securities eligible for<br />
refinancing to the Parent Bank. A position existed at the end of the year amounting to 2,5<br />
billion euro performed against the securitisation of B@nca 24-7 mortgage loans, together with<br />
another transaction amounting to 1,5 billion euro on securities held by IW Bank customers<br />
(IW Power acounts).<br />
Amounts due to banks, net of the exposure to the central bank (400 million of repurchase<br />
agreements performed using part of the securities resulting from the securitisation of B@nca<br />
24-7 Mortgage loans as the underlying), amounted to 28,3 billion euro, an increase of 42%<br />
(+8,4 billion euro) compared to twelve months previously. The change relates principally to the<br />
489 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
increase in term deposits (+5,8 billion euro) and repurchase agreements (+2,3 billion euro),<br />
consisting largely of positions with Group member companies.<br />
Lending to banks: composition<br />
Changes<br />
31.12.2008 % 31.12.2007 %<br />
Figures in thousands of euro amount %<br />
A. Loans to Central Banks 1.005.255 3,4% 185.562 0,9% 819.693 441,7%<br />
1. T erm deposits - - - - - -<br />
2. Compulsory reserve requirement 1.005.255 3,4% 185.562 0,9% 819.693 441,7%<br />
3. Reverse repurchase agreements - - - - - -<br />
4. Other - - - - - -<br />
B. Loans to banks 28.293.083 96,6% 19.522.828 99,1% 8.770.255 44,9%<br />
1. Current accounts and deposits 4.017.877 13,7% 9.807.901 49,8% -5.790.024 -59,0%<br />
2. T erm deposits 5.932.025 20,3% 3.276.100 16,6% 2.655.924 81,1%<br />
3. Other loans 4.892.303 16,7% 1.442.321 7,4% 3.449.983 239,2%<br />
3.1 reverse repurchase agreements 4.233.965 14,5% 1.154.838 5,9% 3.079.127 266,6%<br />
3.2 finance leases - - - - - -<br />
3.3 other 658.338 2,2% 287.483 1,5% 370.855 129,0%<br />
4. Debt securities 6.611.493 22,6% 1.290.855 6,5% 5.320.638 412,2%<br />
5. Impaired assets - - - - - -<br />
6. Assets transferred not derecognised 6.839.385 23,3% 3.705.651 18,8% 3.133.734 84,6%<br />
TOTAL 29.298.338 100,0% 19.708.390 100,0% 9.589.948 48,7%<br />
Amounts due to banks: composition<br />
31.12.2007<br />
Changes A/B<br />
31.12.2008 %<br />
%<br />
Figures in thousands of euro B<br />
amount in %<br />
1. Due to Central Banks 400.059 1,4% 561.675 2,7% -161.616 -28,8%<br />
1.1 Reverse repurchase agreements 400.059 1,4% 350.496 1,7% 49.563 14,1%<br />
1.2 Other 0,0% 211.179 1,0% -211.179 -100,0%<br />
2. Due to banks 28.332.456 98,6% 19.943.902 97,3% 8.388.554 42,1%<br />
2.1 1. Current accounts and deposits 4.096.110 14,2% 3.154.793 15,4% 941.317 29,8%<br />
2.2 T erm deposits 15.123.262 52,6% 9.318.035 45,4% 5.805.227 62,3%<br />
2.3 Financing 1.254.205 4,4% 1.721.929 8,4% -467.723 -27,2%<br />
2.3.1 finance leases - - - - - -<br />
2.3.2 other 1.254.205 4,4% 1.721.929 8,4% -467.723 -27,2%<br />
2.5 Liabilities relating to assets transferred<br />
not derecognised in the financial 7.842.335 27,3% 5.527.134 27,0% 2.315.200 41,9%<br />
2.5.1 Repurchase agreements 7.842.335 27,3% 5.527.134 27,0% 2.315.200 41,9%<br />
2.6 Other payables 16.544 0,1% 222.011 1,1% -205.467 -92,5%<br />
TOTAL 28.732.515 100,0% 20.505.577 100,0% 8.226.938 40,1%<br />
The table “Principal capital items with subsidiaries subject to control, joint control and<br />
significant influence”, contained in part H of the notes to the accounts, shows the net lender<br />
or the net borrower position of <strong>UBI</strong> <strong>Banca</strong> with regard to the banks in the Group; taking into<br />
account any subscriptions of intragroup securities.<br />
At the end of 2008 the net interbank position was a creditor position with regard to B@nca 24-<br />
7 (8,5 billion), Centrobanca (5,6 billion), Banco San Giorgio (0,8 billion), Banco di Brescia (0,3<br />
billion), <strong>Banca</strong> di Valle Camonica (5 million).<br />
On the contrary, however, the net interbank position with regard to <strong>Banca</strong> Carime (-4,8<br />
billion), <strong>Banca</strong> Popolare di Bergamo (-4,5 billion), <strong>Banca</strong> Popolare Commercio e Industria (-0,9<br />
billion), IW Bank and <strong>Banca</strong> Regionale Europea (-0,4 billion), <strong>Banca</strong> Popolare di Ancona (0,3<br />
billion), <strong>UBI</strong> <strong>Banca</strong> International (-0,2 billion) was negative.<br />
490 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Financial activities<br />
<strong>UBI</strong> <strong>Banca</strong> did not use the option granted by the recent amendments to IAS 39 and it has<br />
therefore not performed any reclassification of financial assets currently held in portfolio (see the<br />
notes to the financial statements, Part A – Accounting policies).<br />
At the end of 2008 <strong>UBI</strong> <strong>Banca</strong> held total financial assets amounting to 7,3 billion euro,<br />
compared to 7 billion euro in December 2007 (+3,3%).<br />
As can be seen from the table, the basic stability in the total was nevertheless accompanied by<br />
large changes in the composition of the different types of investment that occurred during the<br />
year, primarily for requirements related to the liquidity management of the Group.<br />
Net of financial liabilities held for trading, consisting essentially of financial derivatives, the<br />
aggregate amounted to 6,1 billion euro compared to 6,2 billion euro at the end of 2007 (-2,4%).<br />
The worsening of the world financial crisis led to the default of major financial institutions in<br />
the second half of the year, which was then added to by situations of fraudulent trading. The<br />
information already reported in the same section of the consolidated management report may<br />
be consulted for details.<br />
Financial assets/liabilities<br />
31.12.2008 31.12.2007<br />
Changes<br />
Figures in thousands of euro amount %<br />
Financial assets held for trading 2.424.111 2.753.772 -329.661 -12,0%<br />
Financial assets at fair value 460.157 981.148 -520.991 -53,1%<br />
Available-for-sale financial assets 2.767.513 2.060.909 706.604 34,3%<br />
Held-to-maturity financial assets 1.620.567 1.244.574 375.993 30,2%<br />
TOTAL FINANCIAL ASSETS 7.272.348 7.040.403 231.945 3,3%<br />
Financial liabilities held for trading 1.222.187 842.341 379.846 45,1%<br />
Total net of financial l iabilities 6.050.161 6.198.062 -147.901 -2,4%<br />
Financial instruments held for trading<br />
Financial assets held for trading (asset item 20)<br />
The item “Financial assets held for trading” includes financial trading instruments “used to<br />
generate a profit from short-term fluctuations in price or from a dealer’s margin”. They are<br />
recognised at fair value through profit or loss – FVPL.<br />
At the end of year financial assets held for trading amounted to 2,4 billion euro, a decrease of<br />
12% compared to 2,8 billion euro in the previous year.<br />
It will be recalled that this accounting class also includes the portfolio entrusted to the<br />
Group’s asset management company under the mandate granted to it for an investment<br />
amounting to 1,6 billion euro for 2008.<br />
On the basis of that mandate, management is performed following a capital protection<br />
strategy, which guarantees a level of capital protection on maturity of 96,84% and involves<br />
investments of approximately 10%-15% of the assets granted for management in asset<br />
instruments (mainly equities), while the remainder is managed by the use of derivative and<br />
monetary instruments. Investments in European equities amounting to approximately 123<br />
million euro existed at the end of the year, in addition to various open positions in futures on<br />
equity indices.<br />
491 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Financial assets held for trading: composition<br />
31.12.2008 31.12.2007 Changes (a/b)<br />
Figures in thous ands o f euro Listed Unlisted Total (a) Listed Unlisted Total (b) amount %<br />
A. On-balance sheet assets<br />
Debt securities 876.791 134.850 1.011.641 1.243.310 320.927 1.564.237 -552.596 -35,3%<br />
of which: Assets transferred not<br />
derecognised 787.634 - 787.634 1.148.482 - 1.148.482 -360.848 -31,4%<br />
Equity instruments 123.026 18.821 141.847 23.642 21.918 45.560 96.287 211,3%<br />
Units of O.I.C.R.<br />
(c o lle ctive inve s tm ent ins trum ents ) 48.278 - 48.278 562.777 - 562.777 -514.499 -91,4%<br />
Financing - - - - - - - -<br />
Impaired assets - 345 345 - - - 345 -<br />
Total A 1.048.095 154.016 1.202.111 1.829.729 342.845 2.172.574 -970.463 -44,7%<br />
B. Derivative instruments<br />
Financial derivatives 2.637 1.214.876 1.217.513 171 576.172 576.343 641.170 111,2%<br />
Credit derivatives - 4.487 4.487 - 4.855 4.855 -368 -<br />
Total B 2.637 1.219.363 1.222.000 171 581.027 581.198 640.802 110,3%<br />
TOTAL (A+B) 1.050.732 1.373.379 2.424.111 1.829.900 923.872 2.753.772 -329.661 -12,0%<br />
In detail, debt securities – inclusive of “assets transferred not derecognised”, i.e. debt securities<br />
used as the underlying assets for repurchase agreements – amounted to 1.012 million euro,<br />
compared to 1.564 million at the end of 2007.<br />
The decrease is attributable to the sale and/or maturity of securities (only partially<br />
repurchased in the fourth quarter of the year and used mainly to support repurchase<br />
agreement business), which were replaced with new investments classified within availablefor-sale<br />
and held-to-maturity assets.<br />
Debt securities also included direct investments in “Asset Backed Securities” (ABS – financial<br />
instruments issued as part of securitisation transactions) amounting to 69 million euro 1<br />
(120,2 million euro in December 2007), consisting of:<br />
- a Collateral Debt Obligation (“CBO Investment Jersey Ltd 1999-2013”), amounting to 44,3<br />
million euro (partially redeemed compared to 67,4 million euro twelve months previously),<br />
with the underlying consisting of securities issued by supranational institutions (EIB and<br />
World Bank);<br />
- a securitisation of publicly owned assets by the Italian government amounting to 0,4<br />
million euro (from the Mercati Finanziari Sim portfolio, merged into <strong>UBI</strong> <strong>Banca</strong> on 4 th March<br />
2008);<br />
- own securitisations amounting to 24,3 million euro (also partially redeemed compared to<br />
the original 52,8 million euro at the end of 2007), relating to Orio Finance (RMBS<br />
securities).<br />
As concerns equity instruments, these rose from 45,6 million euro to 141,8 million euro<br />
primarily as a result of the investments already mentioned in European equities made by the<br />
Group’s asset management company (approximately 123 million euro) under the management<br />
mandate granted to it.<br />
Investments in equity instruments, other than those classified as companies subject to<br />
control, joint control and significant influence, made as part of merchant banking and private<br />
equity activities, amounted to 18,8 million euro, (22 million euro at the end of December<br />
2007).<br />
Investments in O.I.C.R. units (collective investment instruments) include investments in hedge<br />
funds made before 30 th June 2007 and still existing, amounting to 48,3 million euro, a<br />
reduction compared to 562,8 million euro in the previous year (-91,4%).<br />
1 If the 179,8 million euro included in the AFS portfolio (59,7 million euro in December 2007) is also considered, total<br />
investments in ABS Securities by <strong>UBI</strong> <strong>Banca</strong> amounted to 248,8 million euro (179,9 million euro at the end of<br />
2007).<br />
492 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The disinvestments made during the year were offset by purchases designated at fair value<br />
(asset item 30 on the balance sheet). The following section, “financial assets at fair value”, may<br />
therefore be consulted for a full picture of investments in these financial instruments.<br />
Financial assets held for trading include impaired assets amounting to 0,3 million euro,<br />
relating to the presumed realisable value of a bond issued by Lehman Brothers (further<br />
information is given in the subsequent section “exposures to some counterparties”).<br />
Assets held for trading also include assets in respect of derivative instruments, almost entirely<br />
of a financial nature, for which changes must be interpreted in strict relation to the<br />
corresponding item recognised within financial liabilities held for trading. These derivatives,<br />
consisting mainly of contracts on interest rates, increased over twelve months from 581<br />
million euro to 1.222 million euro as a result of both an increase in the fair value and<br />
increased trading in them, which included intragroup trading.<br />
Financial liabilities held for trading (liability item 40)<br />
Financial liabilities amounted to 1.222 million euro, compared to 842 million in December<br />
2007 (+45,1%). They consisted almost entirely of financial derivatives (1.215 million euro) and<br />
had more than doubled compared to twelve months previously. As already reported for<br />
financial assets held for trading, the increase in those derivatives, consisting almost entirely<br />
of contracts on interest rates, relates to both the changes in fair value and to the greater<br />
volumes of business, which included transactions with Group member companies.<br />
Amounts due to customers, amounting to just 5 million euro compared to 243 million euro<br />
twelve months previously, relate to uncovered short positions, for which commitments to<br />
purchase are recognised here. The large reduction is due to the limitations imposed by the<br />
Consob (Italian securities market authority) on uncovered sales.<br />
Financial liabilities held for trading: composition<br />
31.12.2008 31.12.2007<br />
Changes (a/b)<br />
Figures in thous ands of euro<br />
Listed Unlisted Total (a) Listed Unlisted Total (b) amount %<br />
A. On-bal ance sheet l iabil i ti es<br />
1. Due to banks - - - - - - - -<br />
2. Due to customers 5.108 - 5.108 242.728 - 242.728 -237.620 -97,9%<br />
3. Debt securities - - - - - - - -<br />
Total A 5.108 - 5.108 242.728 - 242.728 -237.620 -97,9%<br />
B. Deri vati ve i nstruments<br />
1. Financial derivatives 4.295 1.211.010 1.215.305 428 599.138 599.566 615.739 102,7%<br />
2. Credit Derivatives - 1.774 1.774 - 47 47 1.727 n.s.<br />
Total B 4.295 1.212.784 1.217.079 428 599.185 599.613 617.466 103,0%<br />
TOTAL (A+B) 9.403 1.212.784 1.222.187 243.156 599.185 842.341 379.846 45,1%<br />
Financial assets at fair value (asset item 30)<br />
The item “financial assets at fair value” includes financial instruments classified as such in<br />
application of the fair value option (FVO).<br />
As at 31 st December 2008 these items consisted exclusively of units in hedge funds purchased<br />
since 1 st July 2007. It also included investments in capitalisation policies as at 31 st December<br />
2007.<br />
These financial assets are recognised at fair value through profit or loss.<br />
493 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Financial assets at fair value: composition<br />
31.12.2008 31.12.2007 Changes (a/b)<br />
Figures in thous ands of euro Listed Unlisted Total (a) Listed Unlisted Total (b) amount %<br />
Debt securities - - - - 823.242 823.242 -823.242 -100,0%<br />
Units of O.I.C.R.<br />
(c o lle c tive inve s tm e nt ins trum e nts ) 460.157 - 460.157 157.906 - 157.906 302.251 191,4%<br />
TOTAL 460.157 - 460.157 157.906 823.242 981.148 -520.991 -53,1%<br />
Financial assets at fair value amounted to 460 million euro compared to 981 million euro at<br />
the end of 2007. The decrease that occurred during the year (-521 million euro) was the result<br />
of opposing trends related on the one hand to the reimbursement of capitalisation policies and<br />
on the other hand to the change in the composition of investments in hedge funds already<br />
mentioned.<br />
Units in O.I.C.R. (collective investment instruments), which now constitute the whole of this<br />
item, increased to 460,2 million euro from 158 million euro in the previous year.<br />
It should be considered that hedge funds are not only classified within assets designated at<br />
fair value, but also within assets held for trading in the amount of 48,3 million euro as<br />
reported in the preceding section.<br />
Total investments in hedge funds as at 31 st December 2008 therefore amounted to 508,5<br />
million euro, a decrease of 29,4% compared to 720,7 million euro in 2007, attributable<br />
primarily to the negative change in fair value recorded over twelve months.<br />
The investment in hedge funds was affected principally by the turbulence on financial markets<br />
in 2008, but also by the effects of the Madoff case which resulted in the complete write-down<br />
in the accounts of four funds held in portfolio (58,2 milioni di euro).<br />
The guidelines given by internal policy nevertheless helped to guarantee diversification on<br />
several levels: in terms of the strategy for investment in a single fund as well as in a single<br />
asset management company (see the notes to the financial statements, Part E, market risk in<br />
this respect).<br />
Furthermore, as a consequence of the intensification of difficulties on financial markets, action<br />
was commenced during the year to progressively reduce the hedge fund portfolio in order to<br />
contain risk (VaR).<br />
Redemption requests as at 31 st December 2008 involved 47 funds for approximately 320<br />
million euro. However, 7 funds, for an investment of 15,5 million euro, had temporarily<br />
suspended redemptions, while another 18 funds, amounting to 118 million euro, declared that<br />
they were implementing a deferred repayment plan (known as a “gate”) as permitted by their<br />
respective regulations.<br />
At the date of this report hedge funds amounting to 165 million euro (net of portfolio writedowns<br />
and redemption fees) had actually been redeemed.<br />
Requests for redemption for a total of 230 million euro currently exist (83 million euro made<br />
since 1 st January 2009) relating to 43 hedge funds including 10 funds amounting to 17 million<br />
euro, which have temporarily suspended redemptions and 18 funds, for an amount of 116<br />
million euro, which have applied a “gate” on the redemption programme.<br />
Debt securities held at the end of December 2007 amounting to 823 million euro related to<br />
residual investments in capitalisation certificates which were eliminated during 2008 (early<br />
reimbursement on 23 policies and while another two reached maturity). It will be recalled that<br />
gradual disinvestment from these policies had begun in the last quarter of 2006 because as a<br />
result of the changed market conditions they were no longer able to generate an adequate<br />
return on the portfolio in terms of extra yield. The reimbursements increased in the second<br />
half of 2007 in relation to the emergence of difficulties on the interbank liquidity market.<br />
The amounts freed up in 2008 were largely directed towards the purchase of securities eligible<br />
for refinancing with the European Central Bank.<br />
494 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Available-for-sale financial assets (asset item 40)<br />
These assets are measured at fair value with the recognition of changes in a separate valuation<br />
reserve in shareholders’ equity, except for losses due to reductions in value that are considered<br />
significant or prolonged. In this case the reduction in value that occurred during the year is<br />
increased or decreased by the negative or positive reserve that may have been recognised in<br />
equity previously.<br />
Available-for-sale financial assets: composition<br />
31.12.2008 31.12.2007 Changes (a/b)<br />
Figures in tho us ands of euro Listed Unlisted Total (a) Listed Unlisted Total (b) amount %<br />
Debt securities 1.727.075 492.038 2.219.113 253.478 789.868 1.043.346 1.175.767 112,7%<br />
of which: Assets transferred not<br />
derecognised 911.461 - 911.461 105.953 246.363 352.316 559.145 158,7%<br />
Equity instruments 382.856 79.319 462.175 842.665 80.010 922.675 -460.500 -49,9%<br />
Units of O.I.C.R.<br />
(c o lle c tive inve s tm e nt ins trum e nts ) 14.085 72.140 86.225 24.507 70.381 94.888 -8.663 -9,1%<br />
Financing - - - - - - - -<br />
Impaired assets - - - - - - - -<br />
TOTAL 2.124.016 643.497 2.767.513 1.120.650 940.259 2.060.909 706.604 34,3%<br />
Available-for-sale financial assets as at 31 st December 2008 totalled 2.768 million euro<br />
compared to 2.061 million euro at the end of 2007 (+34,3%).<br />
The growth in the item is attributable to greater investments in debt securities, which more<br />
than doubled over twelve months (from 1.043 million euro to 2.219 million euro).<br />
These investments form part of general liquidity management at Group level, which led at the<br />
same time to the disinvestment in debt securities classified within assets held for trading and<br />
assets designated at fair value (capitalisation policies).<br />
The increase in debt securities was also the result of greater direct investments in “Asset<br />
Backed Securities” (ABS – financial instruments issued against securitisations), which tripled<br />
to 179,8 million euro. These included 130,3 million euro relating to INPS (national insurance<br />
institute) securitisations (59,7 million euro in December 2007), 46,1 million euro relating to<br />
securitisations by a major Italian bank (new investment in 2008) and 3,4 million euro to an<br />
own securitisation in relation to Lombarda Lease Finance 4, class C, mezzanine securities<br />
(new investment).<br />
At the end of the year total ABS investments, inclusive of the 69 million euro recognised in the<br />
trading portfolio, amounted to 248,8 million euro compared to 179,9 million euro in December<br />
2007. The section “financial activities” in the consolidated management report may be<br />
consulted for further information on exposures in ABS instruments and special purpose<br />
entities (SPEs).<br />
Equity instruments amounted to 462,2 million euro, compared to 922,7 million euro in<br />
December 2007. The change recorded in this item is attributable primarily to the reduction in<br />
the fair value of the listed equity instruments recognised within it (shareholdings that are not<br />
classified as companies subject to control, joint control and significant influence and that are<br />
not held for merchant banking and private equity activities), caused by the unfavourable<br />
performance of financial markets and the exceptional circumstances affecting them globally.<br />
Some available-for-sale financial assets have been subject to impairment in relation to the<br />
continuing weakness of markets. These include the investments in Intesa Sanpaolo 2 , the fair<br />
value of which fell to 353,1 million euro from 756,5 million euro as at 31 st December 2007, in<br />
the London Stock Exchange (formerly Borsa Italiana), valued at 8,5 million euro, down from<br />
2 <strong>UBI</strong> <strong>Banca</strong> holds 1,18% of the share capital with voting rights.<br />
495 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
42,9 million at the end of 2007 and in A2A, down to 14,2 million euro from 34,7 million twelve<br />
months previously (see the notes to the financial statements, Part B, Assets, Section 4).<br />
Finally the disposal of the interest held in Centrale dei Bilanci, recognised within assets at the<br />
end of 2007, amounting to 1,9 million euro, resulted in a gain of 8,1 million euro.<br />
The investment in O.I.C.R. units (collective investment instruments) amounting to 86,2 million<br />
euro, decreased by 9 million euro compared to the previous year. The item also includes<br />
property funds totalling 22,8 million euro (approximately 34 million euro at the end of 2007),<br />
including 14,2 million euro in respect of the Fondo Polis (24,5 million euro in December 2007)<br />
recognised within listed funds.<br />
The change recognised at the end of the year in shareholders’ equity attributable to gains and<br />
losses on securities not subject to impairment was negative by 16,9 million euro.<br />
Held-to-maturity financial assets (asset item 50)<br />
This class of assets (held-to-maturity) includes securities which it is intended and it is possible to<br />
hold until maturity. They are recognised at amortised cost.<br />
Held-to-maturity financial assets: composition<br />
Changes<br />
31.12.2008 31.12.2007<br />
Figures in tho usands of euro amount %<br />
Debt securities 1.620.567 1.244.574 375.993 30,2%<br />
of which: Assets transferred not derecognised 1.319.492 1.058.000 261.492 24,7%<br />
Financing - - - -<br />
Impaired assets - - - -<br />
TOTAL 1.620.567 1.244.574 375.993 30,2%<br />
Held-to-maturity financial assets, which consist principally of Italian government securities,<br />
amounted to 1.621 million euro, an increase of 30% on an annual basis as a consequence of<br />
new investments used mainly to support repurchase agreement transactions.<br />
These also include issues by major banks for a nominal amount of 350 million euro (358<br />
million euro the book value), with “Constant Maturity Swap” (CMS) indexing with variable<br />
annual coupons indexed to the 10 year swap rate.<br />
The market value of the securities classified within this item as at 31 st December 2008<br />
recorded a loss – not recognised – amounting to 77,1 million euro (see the relative table in the<br />
notes to the financial statements, Part B, Assets, Section 5).<br />
Exposures to some counterparties<br />
A report is given below on exposures of <strong>UBI</strong> <strong>Banca</strong> to major international counterparties who<br />
have suffered financial collapse or are responsible for fraudulent operations, which have had<br />
significant impacts on the Italian financial market.<br />
496 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Lehman Brothers<br />
On 15 th September 2008 Lehman Brothers Holdings Inc. filed for chapter 11 bankruptcy with<br />
the US Bankruptcy Court in order to “reorganise” its operations 3 .<br />
The exposure of <strong>UBI</strong> <strong>Banca</strong> to this company in default and to other companies controlled by it<br />
regarded bonds for a nominal amount of 4 million euro and derivative instruments.<br />
The bonds were classified in the accounts as at 31 st December 2008 within impaired assets in<br />
the trading portfolio and recognised on the basis of the presumed realisable value, equal to<br />
8,625% 4 of the nominal value amounting to 0,345 million euro. The consequent write-down<br />
performed – 3,5 million euro – was recognised within item 80 of the income statement. Income<br />
relating to those financial instruments has no longer been recognised since 15 th September<br />
2008.<br />
As concerns operations in OTC derivatives, following the announcement of the default, <strong>UBI</strong><br />
<strong>Banca</strong> suspended payments from 15 th September, to all the companies in the Lehman Group<br />
with which ISDA contracts had been taken out. It was then decided to proceed to the early<br />
termination of all the contracts, as permitted by the terms of the existing ISDA contracts,<br />
freezing the relative mark-to-market values and restoring hedges which had lapsed with the<br />
same number of contracts entered into on the market.<br />
On 12 th November 2008, a statement was prepared with regard to Lehman Brothers<br />
International (Europe) reporting a credit position of 664.237,15 dollars (relating to currencies<br />
and currency derivatives). This cannot be offset against the debt position with Lehman<br />
Brothers Special Financing Inc. (described later in this sub-section) and therefore these<br />
receivables, considered net of the end of year currency translation effect, were valued as<br />
recoverable on the basis of the same rate of 8,625% applied to the securities held in portfolio.<br />
The consequent write-down, amounting to 438 thousand euro, was recognised within item<br />
130a of the income statement and the remaining receivables, amounting to 41.391 euro, were<br />
stated within loans to customers, under the item non performing loans.<br />
On 14 th November 2008 a <strong>UBI</strong> <strong>Banca</strong> statement was prepared in relation to Lehman Brothers<br />
Special Financing Inc. reporting a debt position amounting to 2.366.669,18 dollars (relating to<br />
interest rate derivatives) recognised within amounts due to customers-other.<br />
A cross currency swap contract entered into with Lehman Brothers Special Financing Inc., 5<br />
which expired on 17 th October 2008 and involved a payment by <strong>UBI</strong> <strong>Banca</strong> to LBSF of 52<br />
million dollars and a payment by LBSF to <strong>UBI</strong> <strong>Banca</strong> of 5.877.180.000 Japanese yen was not<br />
included in the statements just mentioned. An amount of 4,4 million euro was due from LBSF<br />
on the expiration date based on exchange rates at the end of 2008, equal to the balance on the<br />
amounts receivable and payable, fully written down and recognised within item 130a of the<br />
income statement.<br />
While the amount receivable was not included in the statements made, the Bank intends to<br />
file a claim at the United States bankruptcy proceedings as soon as the dates and procedures<br />
in that respect are announced.<br />
3 As concerns other companies in the Lehman Group, on 15 th September 2008 Lehman Brothers International (Europe) was placed<br />
into administration proceedings by order of the UK High Court of Justice, while Lehman Brothers Special Financing Inc. filed for<br />
chapter 11 bankruptcy on 3 rd October 2008.<br />
4 This is the recovery rate calculated on the basis of the auction price of CDSs on Lehman loans set on 10 th October 2008 in New York.<br />
5 The reasons are because the transaction was performed by means of swift messages. In accordance with section 9(e) of the ISDA<br />
master agreement entered into by <strong>UBI</strong> <strong>Banca</strong> and Lehman Brothers Special Financing on 28 th February 2000, an exchange of<br />
electronic messages may only constitute an official confirmation (and therefore take effect according to the rules of the master<br />
agreement) if this is specified in the messages themselves. This was not performed in the swift messages in question.<br />
Furthermore the schedule of the master agreement does not include the "1992 User's Guide language on electronic messaging"<br />
which could have had the effect of conferring the validity of a confirmation on the exchange of swift messages, even in the absence of<br />
an explicit specification.<br />
497 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Default of Icelandic Banks<br />
Following the affairs which threw world financial markets into turmoil in September 2008, the<br />
Icelandic government was obliged to nationalise all the banks in the country since they were<br />
unable to honour their obligations.<br />
As already anticipated in the interim financial report to 30 th September 2008, three index<br />
linked policies (ZOOM TEAM 25, ZOOM BRIC 40 “5+5” and BRIC 40 “5+5”) were sold to <strong>UBI</strong><br />
<strong>Banca</strong> Group customers through Aviva Assicurazioni Vita (formerly <strong>UBI</strong> Assicurazioni Vita and<br />
controlled by Aviva Italia Holding Spa since 18 th June 2008) and Aviva Vita, for which the<br />
performance (minimum return and repayment of capital on maturity) is linked to underlying<br />
securities issued and guaranteed by two of the three principal Icelandic banks. At the time<br />
when the contracts were entered into, these had ratings higher than those required by the<br />
ISVAP (insurance authority) regulations in force. The banks were Glitnir Bank (formerly<br />
Islandsbanki Hf) with a Fitch rating of A and a Moody’s rating of A1 and Kaupthing Bank Hf<br />
with a Fitch rating of A and a Moody’s rating of Aa3.<br />
Following the defaults, the total capital invested by our customers in those policies, amounting<br />
to 73 million euro, has fallen to close to zero.<br />
In consideration of the exceptional and non recurring nature of the event – which involved not<br />
only individual financial operators but the whole financial system of a developed country<br />
which enjoyed high ratings before the crisis – Aviva Vita and <strong>UBI</strong> <strong>Banca</strong> have studied the<br />
impact of the events just described, in order to assess the possible repercussions and to adopt<br />
a position to properly protect the 4.420 customers who held policies, with the objective of<br />
safeguarding the value of the investment as much as possible in the medium-to-long term<br />
once the current acute crisis is over.<br />
The negotiations conducted led the Bank to hypothesise the following action:<br />
- deferred recovery of the entire capital invested by customers;<br />
- bearing the cost in respect of the present value of the investment, estimated at present, at<br />
40 million euro net of possible recoveries, relating almost totally to the product companies<br />
of the Group.<br />
The provision made in the financial statements of <strong>UBI</strong> <strong>Banca</strong> amounted to 1,5 million euro (an<br />
addition to provisions for liabilities and charges).<br />
The Bernard Madoff affair<br />
The fraud committed by Bernard Madoff and the company that bears his name came to light<br />
in December when it was given broad coverage in all the international press.<br />
The exposure of <strong>UBI</strong> <strong>Banca</strong> to “Bernard L. Madoff Investment Securities LLC” concerned the<br />
hedge fund portfolio only and totalled 59,5 million euro, as follows:<br />
40,7 million euro consisting of three funds for which Madoff’s company performed the role<br />
of both “investment advisor” and “execution broker”:<br />
- an investment in Kingate Euro Fund of 22,8 million euro, held since November 2004;<br />
- an investment in Kingate Global Fund of 11,2 million euro, held in portfolio since August<br />
2002;<br />
- an investment in Fairfield Sigma Ltd of 6,7 million euro, held since September 2003;<br />
17,5 million euro in a European registered fund Thema International Euro Class, listed on<br />
the Irish stock market and held in portfolio since May 2004. The role of “custodian” of the<br />
fund, performed by HSBC Institutional Trust Services Ltd (Ireland), had been delegated to<br />
Madoff’s company, a possibility provided for in the custody contract.<br />
The four funds just mentioned formed part of budgeted hedge fund portfolio investments to be<br />
maintained in 2009, particularly in consideration of their positive track record certified by<br />
498 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
PricewaterhouseCoopers. In view of the events that occurred, requests to redeem the<br />
investments were sent in after 15 th December 2008.<br />
1,3 million euro of investments in hedge funds (indirect exposures).<br />
However, no on- or off-balance sheet exposures to Bernard Madoff and/or his company exist.<br />
Before the fraudulent management came to light, the hedge funds just mentioned held in<br />
portfolio by <strong>UBI</strong> <strong>Banca</strong> – mainly classified as held for trading – had recorded increases in fair<br />
value of 4 million euro, to give a total stated value of 58,2 million euro.<br />
That amount had been written down to zero as at 31 st December 2008 in consideration of the<br />
great uncertainty over the possibility of recovering it.<br />
As concerns the Thema International fund, there may be a possibility of recovery from HSBC<br />
as the “custodian” under the terms of the contract.<br />
<strong>UBI</strong> <strong>Banca</strong> is following the preparation of the cases against Madoff and the other parties<br />
involved in the affair (fund managers, depositary banks, auditors and supervisory authorities)<br />
directly, assisted by an international law firm in order to protect the best interests of the<br />
Bank.<br />
499 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The income statement<br />
The comments on the income statement relate to the pro-forma reclassified financial statements – the<br />
income statement, the quarterly income statements and the income statement net of the main non-recurring<br />
items – contained in the relative section of this report in which the figures for <strong>UBI</strong> <strong>Banca</strong> Scpa to 31 st<br />
December 2008 have been compared with the pro-forma figures to 31 st December 2007. In order to provide<br />
consistent and uniform information, the tables furnishing details have been reclassified and restated proforma<br />
in the same manner for 2007. The explanatory notes that precede the reclassified financial<br />
statements may be consulted as may the reconciliation schedules for a description of the reclassification<br />
and also for details of the restatement of the comparative pro-forma figures and of the PPA allocation.<br />
It will also be recalled that on 1 st October 2007, <strong>UBI</strong> <strong>Banca</strong> contributed its “ICT and organisation”<br />
operations to <strong>UBI</strong>.S, the subsidiary responsible for the centralised provision of services, functions and<br />
processing common to all Group banks and companies and this modified the composition of the income of<br />
the Parent Bank compared to the subsequent comparative periods.<br />
The first full year of operations of <strong>UBI</strong> <strong>Banca</strong> Scpa took place in an operating context which<br />
began to progressively deteriorate in the summer. The scenario that then unfolded was<br />
constantly exposed to violent tensions and was only initially limited to financial markets, the<br />
instruments traded on them and operators in the sector.<br />
This had its effect on the income structure of the Bank, affecting all items connected with<br />
financial activities which, as a result, amongst other things, of the accounting rule for<br />
recognising reductions in fair value, generated 488 million euro of write-downs on equities<br />
classified as available-for-sale. Despite this, 2008 ended with a net profit of 23,9 million euro,<br />
an appreciable reduction compared to 820,4 million euro in 2007.<br />
If non-recurring items are excluded – negative on aggregate by 417,7 million euro in 2008 and<br />
positive by approximately 81 million euro in 2007 – net profit rises to 441,6 million euro<br />
compared to 739,4 million euro in the previous year.<br />
Examination of the reclassified income statement shows that operating income amounted to<br />
640,1 million euro, compared to 1.165,2 million euro in the previous year, reflecting the<br />
negative result for financial activities, the lower dividends received and also the greater<br />
negative balance on net interest income.<br />
The income statement continues to be supported by the contribution from the item dividends<br />
and similar income, amounting to 904,4 million euro, because of the particular structure that<br />
distinguishes the Parent Bank. As shown in the<br />
table, the partial decrease that occurred with<br />
respect to the amount of 972,3 million euro<br />
recorded in 2007 occurred in relation to the<br />
equity investments in Group member<br />
companies, which distributed approximately 68<br />
million euro less in profits. This result relates<br />
on the one hand to the results in 2007 of some<br />
banks and Group member companies, affected<br />
either by non-recurring costs or by a decrease<br />
in recurring and non-recurring income and on<br />
the other hand to the distribution policies of<br />
BPB, Banco di Brescia and BPCI which<br />
preferred to allocate the gains made on the<br />
disposal of branches, required by the Antitrust<br />
Authority, to reserves of profits.<br />
Net interest income amounted to -250,8 million<br />
euro, compared to -195,8 million euro in 2007.<br />
The balance on interest income and expense,<br />
which is structurally negative in relation to role<br />
Dividends and similar income<br />
Figures in thousands of euro<br />
31.12.2008 31.12.2007<br />
pro-forma<br />
<strong>Banca</strong> Popolare di Bergamo Spa 305.658 268.220<br />
Banco di Brescia Spa 178.863 177.990<br />
<strong>Banca</strong> Popolare Commercio e Industria Spa 54.727 74.775<br />
<strong>Banca</strong> Carime Spa 50.369 56.268<br />
<strong>Banca</strong> Popolare di Ancona Spa 48.563 84.958<br />
Centrobanca Spa 47.786 68.266<br />
<strong>Banca</strong> Regionale Europea Spa 47.305 48.031<br />
<strong>UBI</strong> Factor Spa 15.974 13.752<br />
<strong>UBI</strong> Leasing Spa 12.509 10.068<br />
B@nca 24-7 Spa 11.520 12.500<br />
<strong>UBI</strong> Pramerica SGR Spa 10.228 22.607<br />
Other equity investments (item 100) 54.177 68.205<br />
Dividends received from item 100 equity investments 837.679 905.640<br />
Dividends received from item 40 AFS 59.048 60.555<br />
of which Intesa SanPaolo 53.264 53.264<br />
Dividends received from item 20 for trading 7.628 6.103<br />
Total 904.355 972.298<br />
500 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
played by <strong>UBI</strong> <strong>Banca</strong> as the holding company 1 , increased both as a result of both the rise<br />
(although temporary) in interbank rates 2 and the greater volumes of business which<br />
characterised interest income and expense business. In detail 3 :<br />
- the item business with customers (which recorded a negative balance of 441 million<br />
euro, up by 20 million euro) was affected by the increased costs of securities issued (+45<br />
million euro), and more specifically the cost of the securities issued in the EMTN<br />
programme where the indexing is linked to short term rates (the most exposed to the large<br />
fluctuations recorded in the last quarter of the year). Similarly the amounts due to<br />
customers component also recorded an increase in interest paid (+40,3 million euro),<br />
resulting from greater volumes of business during the year with the Cassa di<br />
Compensazione e Garanzia (central counterparty clearing) consisting primarily of<br />
repurchase agreements. It must nevertheless be considered that the interest generated by<br />
financing to customers (the leasing and factoring companies of the Group) increased by<br />
83,2 million euro compared to 2007;<br />
- business on the interbank market gradually turned to focus on transactions with the<br />
banks in the Group in order to support their lending business with customers and also to<br />
rationalise funding, in a context of developing a structural balance between the income and<br />
expenses of each bank. The intensive use of internal financial resources (also to partially<br />
offset difficulties encountered in market transactions), which involved less resort to<br />
interbank borrowing above all in the fourth quarter of the year, resulted in the generation of<br />
a positive net balance on interest from banks amounting to 3,6 million euro compared to<br />
the negative balance of 11,6 million euro in the previous year;<br />
Interest and similar income: composition<br />
Figures in thousands of euro<br />
Performing financial assets<br />
Debt<br />
Financing<br />
securities<br />
Impaired<br />
financial<br />
assets<br />
Other<br />
assets<br />
31.12.2008<br />
31.12.2007<br />
pro-forma<br />
Financial assets held for trading 19.640 - - - 19.640 52.719<br />
Financial assets at fair value 22.023 - - - 22.023 80.376<br />
Available-for-sale financial assets 60.706 - - - 60.706 9.713<br />
Held-to-maturity financial assets 17.189 - - - 17.189 18.407<br />
Loans to banks 184.879 688.390 - - 873.269 658.057<br />
Loans to customers 7.563 422.181 - - 429.744 346.567<br />
Hedging derivatives - X X - - -<br />
Financial assets transferred not derecognised 420.553 - - - 420.553 172.339<br />
Other assets X X X 1.201 1.201 1.743<br />
Total 732.553 1.110.571 - 1.201 1.844.325 1.339.921<br />
Interest and similar expense: composition<br />
Figures in thousands of euro<br />
Liabilities and<br />
payables<br />
Securities<br />
Other<br />
liabilities<br />
31.12.2008<br />
31.12.2007<br />
pro-forma<br />
Due to banks (836.717) X - (836.717) (582.100)<br />
Due to customers (128.226) X - (128.226) (87.893)<br />
Securities issued X (715.296) - (715.296) (670.342)<br />
Financial liabilities held for trading (2.669) (2.669) (17.483)<br />
Financial liabilities for assets transferred not derecognised (399.138) - - (399.138) (175.165)<br />
Other liabilities X X (462) (462) (317)<br />
Hedging derivatives X X (12.606) (12.606) (2.424)<br />
Total (1.366.750) (715.296) (13.068) (2.095.114) (1.535.724)<br />
Net interest income (250.789) (195.803)<br />
- the portfolio of securities owned generated interest inflows of 185,8 million euro, a<br />
reduction of 49,4 million euro compared to 2007, mainly as a result of the absence of the<br />
1 Net interest income includes the financial expense that <strong>UBI</strong> <strong>Banca</strong> incurs against investments in Group<br />
subsidiaries, while the related financial income is fuelled by the item dividends.<br />
2 The average annual one month Euribor rate rose from 4,135% in 2007 to 4,351% in 2008.<br />
3 The calculation of net balances was performed by allocating interest income and expense on repurchase agreements<br />
and hedging derivatives within the different areas of business (financial, with banks, with customers).<br />
501 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
component consisting of capitalisation policies recognised within financial assets<br />
designated at fair value, for which the interest decreased by 58,4 million euro.<br />
Net commissions amounted to 13,2 million euro, compared to 19,2 million euro previously.<br />
While commission expense remained stable, there was a fall in commission income, mainly in<br />
relation to collection and payment services (-3,5 million euro) and to management, trading and<br />
advisory services (-3,8 million euro) and to the items stock market orders and depository bank<br />
services in particular.<br />
It must also be stated that the Parent Bank – which performs specific operational support<br />
functions for the Network Banks, for which it incurs commission expense that is then invoiced<br />
on the basis of intragroup contracts recognised within other operating income – would<br />
structurally record negative income from services in any event, an effect which has been<br />
reduced since 2007 following the centralisation of depository bank activities at <strong>UBI</strong> <strong>Banca</strong>.<br />
Commission income: composition<br />
Commission expense: composition<br />
Figures in thousands o f euro<br />
31.12.2008 31.12.2007<br />
pro-forma<br />
Figures in thousands of euro<br />
31.12.2008 31.12.2007<br />
pro-forma<br />
a) guarantees granted 3.588 3.296 a) guarantees received (106) (198)<br />
b) credit derivatives - - b) credit derivatives - -<br />
c) management, trading and advisory services 30.595 34.399 c) management and trading services: (12.060) (12.308)<br />
1. trading in financial instruments 4.713 3.999 1. trading in financial instruments (4.019) (4.432)<br />
2. foreign exchange trading 97 608 2. foreign exchange trading (101) (207)<br />
3. portfolio management - - 3. portfolio management (1.556) (612)<br />
4. custody and administration of securities 1.179 388 3.1. ow n portfolio (1.556) (612)<br />
5. depository bank 21.255 23.512 3.2. portfolio of others - -<br />
6. placement of securities 967 799 4. custody and administration of securities (5.587) (6.239)<br />
7. stock market orders 894 3.559 5. placement of financial instruments (797) (818)<br />
8. advisory activities 745 1.297<br />
6. securities, products and services offered<br />
through indirect netw orks - -<br />
9. distribution of third party services 745 237 d) collection and payment services (2.682) (1.374)<br />
9.1. portfolio managements - - e) other services (9.290) (11.093)<br />
9.2. insurance products - -<br />
9.3. other products 745 237<br />
d) collection and payment services 1.603 5.142<br />
e) servicer activities for securitisatio n transactions 225 237 Total (24.138) (24.973)<br />
f) services for factoring transactions - -<br />
g) tax collection and payment services - -<br />
h) other services 1.301 1.080<br />
Total 37.312 44.154 Net commission income 13.174 19.181<br />
Net profit from trading, hedging, disposal/repurchase and assets/liabilities at fair value reflects<br />
the strong reductions in prices that occurred on financial markets and it was negative by<br />
192,8 million euro compared to +64 million euro generated over the previous twelve months.<br />
As already reported in periodic interim financial reporting, historically untypical volatility in<br />
securities prices first appeared in the summer which then transformed into falls in prices,<br />
especially following the Lehman Brothers affair, which hit share prices and OICR units<br />
(collective investment instruments) indiscriminately wherever they were listed and whichever<br />
sector they represented.<br />
The negative result for the year also included the following losses classified within nonrecurring<br />
items: 58,2 million euro relating to four “Madoff funds” held in portfolio, for which<br />
the amount was entirely written off in view of the extreme uncertainty over the possibility of<br />
recovering it and 3,5 million euro in respect of the write-down of Lehman securities (see also<br />
the section “Financial activities” in the consolidated management report).<br />
In detail, net profit from trading amounted to -83,3 million euro (+36,8 million in 2007),<br />
consisting of -33,7 million euro on equity instruments (-14,4 million euro) and -86,6 million<br />
euro on investments in hedge funds (+31,2 million euro), only partially offset by the positive<br />
performance amounting to 31,2 million euro (+20 million euro) by trading in debt securities<br />
and the relative derivative instruments.<br />
502 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The result for assets and liabilities designated at fair value – relating to investments in hedge<br />
funds made since 1 st July 2007 – also made a large negative contribution as a consequence of<br />
the penalisation of all items (-118 million euro compared to +1,6 million euro in 2007).<br />
Net profit (loss) from trading<br />
Figures in thousands of euro<br />
Gains<br />
(A)<br />
P rofit from trading<br />
(B)<br />
Losses<br />
(C)<br />
Losses from<br />
trading<br />
(D)<br />
Ne t re s ult<br />
31.12.2008<br />
[(A+B)-(C+D)]<br />
31.12.2007<br />
pro-forma<br />
1. Financial assets held for trading 5.107 25.662 (143.844) (74.383) (187.458) 36.635<br />
1.1 Debt securities 4.545 9.502 (14.835) (4.526) (5.314) 1.055<br />
1.2 Equity instruments 562 2.371 (59.479) (48.790) (105.336) 4.162<br />
1.3 Units in O.I.C.R. (co llective inves tment ins trum ents ) - 1.933 (69.530) (19.004) (86.601) 31.247<br />
1.4 Financing - - - - - -<br />
1.5 Other - 11.856 - (2.063) 9.793 171<br />
2. Financial liabilities held for trading - - (20) - (20) 1.001<br />
2.1 Debt securities - - (20) - (20) 1.001<br />
2.2 Debts - - - - - -<br />
2.3 Other - - - - - -<br />
differences X X X X (1.858) (3.050)<br />
4. Derivative instruments 777.751 2.580.468 (779.793) (2.472.637) 105.993 2.253<br />
4.1 Financial derivatives 777.751 2.580.237 (777.642) (2.472.184) 108.366 4.299<br />
- on debt securities and interest rates 756.784 2.475.323 (752.060) (2.443.499) 36.548 18.993<br />
- on equity instruments and share indices 20.967 104.914 (25.582) (28.685) 71.614 (18.579)<br />
- on currencies and gold X X X X 204 3.885<br />
- other - - - - - -<br />
4.2 Credit derivatives - 231 (2.151) (453) (2.373) (2.046)<br />
Total 782.858 2.606.130 (923.657) (2.547.020) (83.343) 36.839<br />
Net profit (loss) from hedging<br />
Figures in thousands of euro<br />
31.12.2008<br />
31.12.2007<br />
pro-forma<br />
Net profit (loss) from hedging (7.235) 1.486<br />
Profits (losses) from disposal/repurchase<br />
Figures in thousands of euro<br />
Gains<br />
Losses<br />
Ne t re s ult<br />
31.12.2008<br />
3.12.2007<br />
pro-forma<br />
Financial assets<br />
1. Loans to banks 1 - 1 -<br />
2. Loans to customers - - - -<br />
3. Available-for-sale financial assets 15.453 (58) 15.395 23.990<br />
3.1 Debt securities 49 (34) 15 (17)<br />
3.2 Equity instruments 15.219 - 15.219 21.561<br />
3.3 Units in O.I.C.R (collective investment instruments). 185 (24) 161 2.446<br />
3.4 Financing - - - -<br />
4. Held-to-maturity financial assets - - - -<br />
Financial liabilities<br />
Total assets 15.454 (58) 15.396 23.990<br />
1. Due to banks - - - -<br />
2. Due to customers - - - -<br />
3. Securities issued 374 - 374 151<br />
Total liabilities 374 0 374 151<br />
Total 15.828 (58) 15.770 24.141<br />
Net profit (loss) on financial assets and liabilities at fair value<br />
Figures in thousands of euro<br />
31.12.2008<br />
31.12.2007<br />
pro-forma<br />
Net profit (loss) on financial assets and liabilities at fair value (118.035) 1.549<br />
Net income from trading, hedging and disposal/repurchase activities and from<br />
assets/liabilities at fair value<br />
(192.843) 64.015<br />
503 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Other operating income and costs<br />
Figures in thousands of euro<br />
31.12.2008 31.12.2007<br />
pro-forma<br />
Other operating income 183.670 325.969<br />
Recovery of expenses and other income on current account 1 2<br />
Recovered other expenses 2.175 3.469<br />
Recoveries of taxes 109 370<br />
Rents and other income for property management 33.379 28.303<br />
Recovery of expenses on financial leasing contracts - -<br />
Income for services to Group member companies 145.167 289.426<br />
Other income and exceptional receivables 2.948 4.769<br />
Reclassification of "tax recoveries" (109) (370)<br />
Other operating expenses (17.467) (20.495)<br />
Fines and charges for late tax payments (2) (18)<br />
Depreciation of improvements to leased assets (230) (229)<br />
Costs relating to financial leasing contracts (4) (20)<br />
Other costs and exceptional payables (17.461) (20.457)<br />
Reclassification of depreciation of improvements to leas ed assets 230 229<br />
Other operating income and costs 166.203 305.474<br />
Net profit from hedging activity fell<br />
from +1,5 million euro to -7,3 million<br />
euro. As concerns the effectiveness of<br />
the hedges, that change relates to the<br />
total amount of the hedging<br />
derivatives used (mainly interest rate<br />
derivatives) and to the respective<br />
items hedged. The context of high<br />
volatility for short term interest rates<br />
(as occurred in the fourth quarter of<br />
2008) did in fact penalise the<br />
valuation of the floating rate<br />
component of the derivatives.<br />
On the other hand profit on the<br />
disposal/repurchase of financial<br />
assets amounted to 15,8 million euro,<br />
attributable primarily to the disposal<br />
of two equity investments: Key Client<br />
(formerly Cim Italia) amounting to 7,1<br />
million euro and Centrale Bilanci amounting to 8,1 million euro (both items have been<br />
classified as non-recurring).<br />
The item totalled 24,1 million euro in 2007; that amount included 20,2 million euro for a nonrecurring<br />
gain on the Borsa Italiana (now London Stock Exchange) share exchange.<br />
Other operating income and expenses amounted to 166,2 million euro, compared to 305,5<br />
million euro in the previous year. This mainly reflects the decrease in income from services to<br />
Group member companies (145,2 million euro compared to 289,4 million euro) following the<br />
operational centralisation of activities at the subsidiary <strong>UBI</strong>.S, which took effect from 1 st<br />
October 2007. The latter amount consists of income amounting to 89,3 million euro in respect<br />
of administration, lending, governance, commercial and financial services provided by the<br />
Parent Bank and income amounting to 55,9 million euro for organisation and IT services<br />
relating to the platform abandoned at the end of the year.<br />
The amount for 2007 includes a non-recurring expense of 6,6 million euro, which represented<br />
the present value of the total endowment to be paid to the Marches Foundation on the basis of<br />
agreements related to the settlement of the <strong>Banca</strong> Popolare di Ancona litigation.<br />
There was an appreciable reduction(-22,9%) in operating costs (376,8 million euro) across all<br />
expense items, which do not include integration costs classified within a separate item, partly<br />
the consequence of the centralisation of operations<br />
in <strong>UBI</strong>.S already mentioned. In detail:<br />
- staff costs fell by 30,5% to 158,8 million euro<br />
from 228,6 million euro in 2007 which<br />
benefited, amongst other things, from the<br />
positive impact of the pension reform affecting<br />
the staff severance provision (5,5 million euro).<br />
The reduction of 69,8 million euro consisted of<br />
the following: 63,6 million euro attributable to<br />
lower costs for employees (mainly the wages and<br />
salaries component); 4,7 million euro<br />
attributable to other personnel (personnel<br />
working under agency staff leasing contracts<br />
were employed during the year as part of<br />
integration activities and the relative cost was<br />
therefore classified within integration expenses);<br />
Staff costs: composition<br />
Figures in thousands of euro<br />
31.12.2008 31.12.2007<br />
pro-forma<br />
1) Employees (116.654) (180.214)<br />
a) Wages and salaries (79.013) (112.249)<br />
b) Social security charges (20.786) (40.569)<br />
c) Severance indemnity (151) (308)<br />
d) Pension expense - (71)<br />
e) Staff severance provision charge (2.195) (3.412)<br />
f) Allocation to provision of pension and similar obligations - -<br />
g) Payments to external supplementary retirement benefit<br />
plans: (7.965) (15.633)<br />
- defined contribution (7.965) (15.633)<br />
- defined service - -<br />
h) Expenses resulting from share based payment agreements - -<br />
i) Other benefits for permanent employees (6.544) (7.972)<br />
2) Other personnel (34.040) (38.689)<br />
- Expenses for agency personnel on staff leasing contracts - (4.137)<br />
- Other expenses (34.040) (34.552)<br />
3) Directors (8.109) (9.637)<br />
4) Expenses incurred for retired personnel - (32)<br />
Total (158.803) (228.572)<br />
504 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1,5 million euro attributable to directors and statutory auditors. The amount relating to<br />
statutory auditors was reclassified out of other administrative expenses into staff costs in<br />
compliance with Bank of Italy instructions. In the case of <strong>UBI</strong> <strong>Banca</strong>, the expense relates to<br />
the first quarter of 2007 only, before the adoption of “dualistic” governance;<br />
- other administrative expenses – presented with a different composition to give a better<br />
comprehension of the bank’s<br />
Other administrative expenses: composition<br />
operations – decreased by 18,4% to<br />
156,4 million euro. The services<br />
Figures in thousands of euro<br />
31.12.2008 31.12.2007<br />
pro-forma which recorded the main decreases,<br />
in addition to general expenses,<br />
A. Other administrative expenses (152.710) (187.805)<br />
properties and organisational,<br />
Rent payable (7.472) (9.948)<br />
corporate and legal advice (-9,1<br />
Professional and advisory services (29.656) (38.759)<br />
million euro), were rentals and<br />
Rentals on hardw are, software and other assets (2.787) (2.974)<br />
Maintenance of hardw are, software and other assets (5.000) (18.447) maintenance expenses for hardware<br />
Tenancy of premises (6.315) (9.976) and software, data transmission and<br />
Property and equipment maintenance (1.730) (5.620) outsourcing services (with total<br />
Counting, transport and management of valuables<br />
Membership fees<br />
Information services and land registry searches<br />
(47)<br />
(868)<br />
(1.123)<br />
(363)<br />
(1.989)<br />
(631)<br />
expenses down by 35,6 million euro;<br />
it must nevertheless be considered<br />
that the contribution of the “ICT and<br />
Books and periodicals (610) (594)<br />
Organisation” operations to <strong>UBI</strong>.S<br />
Postal (12.834) (15.820)<br />
occurred in the last quarter of 2007<br />
Insurance premiums (1.203) (2.096)<br />
Advertising (7.173) (8.075)<br />
and the expenses were therefore<br />
Entertainment expenses (1.118) (1.294) only actually incurred for the first<br />
Telephone and data transmission expenses<br />
Outsourced services<br />
Travel expenses<br />
Instalments on services provided by Group companies<br />
(13.173)<br />
(4.812)<br />
(5.383)<br />
(48.122)<br />
(28.250)<br />
(11.683)<br />
(3.165)<br />
(22.404)<br />
nine months of the comparative<br />
year). In parallel with this, there was<br />
a very much more contained growth<br />
(+25,7 million euro) in expenses for<br />
Debt collection expenses (79) (110)<br />
services provided by <strong>UBI</strong>.S, which<br />
Forms, stationery and consumables (704) (3.051)<br />
totalled 48,1 million euro in the<br />
Transport and removals (504) (335)<br />
period.<br />
Security (1.433) (1.184)<br />
Other expenses (564) (1.037)<br />
B. Indirect taxes (3.686) (3.836)<br />
Indirect taxes and duties (476) (11)<br />
Stamp duty (847) (1.800)<br />
Municipal property tax (2.072) (2.071)<br />
Other taxes (400) (324)<br />
Reclassification of "tax recoveries" 109 370<br />
Total (156.396) (191.641)<br />
It must also be considered that two<br />
IT systems were still operating in<br />
the Group for the whole of 2008 and<br />
the former platform was not<br />
“switched off” until 31 st December<br />
2008.<br />
- net impairment losses on property,<br />
plant and equipment and intangible assets fell to 61,6 million euro (68,8 million euro), due<br />
to the transfer of some parts of the former IT system to <strong>UBI</strong>.S.<br />
As a result of the performance reported above net operating income – calculated as the<br />
difference between operating income and operating costs – amounted to 263,3 million euro<br />
(676,1 million euro in the comparative year).<br />
Net impairment losses on loans amounted to 4,4 million euro (1,2 million euro in 2007) and<br />
include 4,8 million euro in relation to the write-down of amounts due from Lehman Brothers.<br />
In detail, 0,4 million euro relate to an amount due from Lehman Brothers International<br />
(Europe) in respect of foreign currency transactions and currency derivatives and 4,4 million<br />
euro in respect of a cross currency swap entered into with Lehman Brothers Special<br />
Financing, not included in the financial statements (see the section “Financial activities” in the<br />
consolidated management report for further details).<br />
Net provisions for liabilities and charges were reduced from 3,7 million euro to 1,7 million euro<br />
and included a provision of 1,5 million euro, as the share pertaining to the Parent Bank,<br />
against the default of Icelandic bank issuers and guarantors of the securities underlying the<br />
three index linked policies sold to Group customers through Aviva Vita and Aviva<br />
Assicurazioni Vita (see the previous section “Financial activities” in this respect).<br />
505 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
In view of the sharp falls in share prices which occurred during the year and worsened in the<br />
fourth quarter, mainly affecting stocks in the banking sector, in compliance with IAS 39, <strong>UBI</strong><br />
<strong>Banca</strong> recognised the reductions considered significant and prolonged in the value of shares<br />
classified as available-for-sale in the income statement. This resulted in net impairment losses<br />
on other assets/liabilities totalling 496 million euro, including approximately 443,9 million<br />
euro in respect of an interest held in Intesa Sanpaolo, 24,6 million euro for the interest in the<br />
London Stock Exchange (formerly Borsa Italiana) and 19,7 million euro for the company A2A.<br />
All three amounts were classified within non-recurring items (see also the notes to the<br />
financial statements, Part B, Section 4).<br />
In 2007 these impairment charges amounted to 5,9 million euro and included an<br />
extraordinary write-down amounting to 5,6 million euro on the indirect interest held in Help<br />
Rental Service placed in liquidation in July 2007.<br />
The income statement benefited from net profits on the disposal of equity investments<br />
amounting to 17,5 million euro. They consisted of 22 million euro on the sale of shares in <strong>UBI</strong><br />
Pramerica SGR to our American partner; 2,4 million euro on the disposal of the interest in<br />
CFE (Corporation Financière Européenne 4 ); a loss of -3,5 million euro on the disposal of<br />
shares in <strong>UBI</strong>.S to Group member companies, performed on the basis of the book value of the<br />
company as at 31 st December 2007; -3,6 million euro for impairment of the subsidiary <strong>UBI</strong><br />
CentroSystem.<br />
As a result of the impairment losses reported above, profit on continuing operations before tax<br />
recorded a loss of 221,4 million euro, compared to a profit of 665,2 million euro in the<br />
preceding twelve months.<br />
If non-recurring items are excluded from both years, profit before tax amounted to 304,6<br />
million euro compared to 651,7 million euro in 2007.<br />
Taxes on income for the year – positive as a result of the application of the tax consolidation<br />
law, which allows structurally negative taxable income to be compensated due to the presence<br />
of dividends taxed at reduced rates at a percentage of 95% – amounted to 271,4 million euro<br />
(222 million euro in 2007).<br />
It must nevertheless be considered that the figure for 2008 includes the following:<br />
- a positive non-recurring component of 95,3 million euro, consisting of:<br />
• 2,4 million euro as the positive effect, in respect of provisions already made for<br />
deferred tax liabilities, of the tax redemption on non accounting deductions (Section EC<br />
of the income tax return) in relation to depreciation, impairment and provisions,<br />
pursuant to Art.1, paragraph 33, of Law No, 244/2007; 5<br />
• 92,9 million euro from the tax recognition (through the payment of a 16% substitute<br />
tax to be paid in 2009) of the value attributed to the goodwill recognised in the financial<br />
statements of <strong>UBI</strong> <strong>Banca</strong> when the purchase price allocation was performed following<br />
the merger of the former BLP into the former BPU. This goodwill, as exempted, is tax<br />
deductible over nine years from the year in which the substitute tax is paid, in<br />
accordance with Art.15, paragraph 10, of Decree Law No. 185/2008 (see the notes to the<br />
financial statements, Part A, for further information);<br />
- negative amount of 47,4 million euro related to the impairment of available-for-sale<br />
equity investments, to Madoff and Lehman Brothers positions and the default of Icelandic<br />
banks;<br />
- increased taxes amounting to 8,2 million euro resulting from gains on the disposal of<br />
equity investments.<br />
The 2007 figure includes positive non recurring items amounting to 142,3 million euro<br />
resulting from adjustments to deferred tax assets and liabilities to comply with the new tax<br />
rates introduced by the 2008 Finance Act (144,7 million euro relating to the PPA).<br />
4 The amount was not included within non-recurring items because it was below the minimum threshold set by<br />
internal procedures for identifying these items.<br />
5 The amount results from the difference between the substitute tax rate (16%) and the ordinary rate [IRES -<br />
corporation tax (27,5%) + IRAP - local production tax (4,82%) = 32,32%].<br />
506 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
If non-recurring items are excluded, positive taxation for 2008 amounted to 137 million euro,<br />
compared to 87,8 million euro twelve months previously, as a result of changes in taxable<br />
income.<br />
Finally, integration costs recognised in 2008 amounted to 26,1 million euro (net of tax<br />
amounting to 9,9 million euro), including 15,3 million euro (gross) relating to personnel and<br />
20,7 million euro (gross) relating to impairment losses on property, plant and equipment and<br />
intangible assets and other administrative expenses (10,6 million relating to instalments paid<br />
to <strong>UBI</strong>.S for IT migration operations and 7,6 million euro for advisory and other services); in<br />
the comparative year the item was 66,7 million euro net of tax amounting to 36,9 million euro.<br />
***<br />
The fourth quarter of 2008 incorporated all the negative events which affected the<br />
performance of financial items in the last part of the year. The period ended for <strong>UBI</strong> <strong>Banca</strong><br />
with a loss of 581,4 million euro compared with a negative result of 103,2 million euro in the<br />
third quarter (when the first signs of turbulence, which were clamorously evident after 15 th<br />
September with the Lehman Brothers event, had already appeared) and with a profit of 73,8<br />
million euro earned in the fourth quarter of 2007.<br />
It should be considered that since the transfer of operations to <strong>UBI</strong> Sistemi e Servizi took effect<br />
from 1 st October 2007, the fourth quarter of 2007 is fully comparable on a perfectly uniform basis<br />
with the fourth quarter of 2008.<br />
In detail, operating income amounted to -172,9 million euro in the period October-December<br />
2008 (+24,5 million euro in the same quarter of 2007), penalised by the negative result for<br />
financial activities (-135,9 million euro compared to +26,3 million euro in 2007), by the<br />
increased magnitude of net interest income (-64,8 million euro compared to -56,6 million euro)<br />
and by the decrease in other net operating income (22,9 million euro compared to 48,3 million<br />
euro), due to the completion of the IT migration of the Network banks to the target system.<br />
On the other hand operating costs, which totalled 97,2 million euro, improved by more than 9<br />
million euro compared to the fourth quarter of 2007, as a result of synergies created by the<br />
merger and of the constant monitoring activity which resulted from it.<br />
More specifically, other administrative expenses, amounting to 41,3 million euro, were reduced<br />
even more by over 14 million euro.<br />
As a result of the performance described above net operating income amounted to -270,2<br />
million euro (-82,1 million euro in 2007).<br />
The last three months of the year were also affected by net impairment losses on other<br />
assets/liabilities in respect of available-for-sale equity investments (Intesa Sanpaolo, London<br />
Stock Exchange and A2A) amounting to 488,1 million euro 6 , by impairment losses on amounts<br />
due in relation to the Lehman Brothers position amounting to 4,8 million euro and to a<br />
provision for liabilities and charges amounting to 1,5 million euro in relation to the default of<br />
Icelandic banks, the guarantors of index linked insurance policies purchased by Group<br />
customers (see the information already reported in the commentary on the full year).<br />
As a result of the above profit on continuing operations before tax recorded a loss for the period<br />
of 773,1 million euro (-84,5 million euro in the fourth quarter of 2007), which benefited from<br />
positive taxation of 199,7 million euro, partly the result of the recognition of goodwill for tax<br />
purposes, against payment of substitute tax.<br />
6 The loss of value recorded as at 30 th September 2008 since the beginning of the year on those same AFS equity<br />
investments was approximately 250 million euro and it was recognised in a separate valuation reserve in<br />
shareholders’ equity.<br />
507 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Shareholders’ equity and capital adequacy<br />
The shareholders’ equity of <strong>UBI</strong> <strong>Banca</strong> as at 31 st December 2008, inclusive of profit for the<br />
year, amounted to 10.358,7 million euro compared to 10.962,1 million euro at the end of<br />
2007.<br />
As can be seen from the statement of changes in shareholders’ equity, contained among the<br />
separate financial statements, the decrease of 603,4 million euro that occurred over twelve<br />
months is attributable to:<br />
• the allocation of 2007 profit to dividends and other uses amounting to 616,4 million euro;<br />
• the recognition of 2008 profit amounting to 23,9 million euro;<br />
• a negative change in reserves of 10,9 million euro, attributable primarily to those relating to<br />
available-for-sale financial assets.<br />
Valuation reserves for available-for-sale financial assets: changes in the period<br />
O.I.C.R.<br />
Figures in thous ands of euro<br />
Debt<br />
securities<br />
Equity<br />
instruments<br />
(c o lle c tive<br />
inves tment<br />
ins trum ents )<br />
Financing<br />
T otal<br />
1. Opening bal ances -7.173 6.195 -4.524 - -5.502<br />
2. Positive changes 3.557 57.711 628 - 61.896<br />
2.1 Increases in fair value 437 16.350 627 - 17.414<br />
2.2 T ransfer to income statement of negative reserves 3.120 40.508 - - 43.628<br />
- for impairment 3.086 40.508 - - 43.594<br />
- for disposal 34 - - - 34<br />
2.3 Other changes - 853 1 - 854<br />
3. Negative changes -36.955 -27.308 -9.023 - -73.286<br />
3.1 Decrease in fair value -35.947 -11.032 -9.018 - -55.997<br />
3.2 T ransfer to income statement of positive reserves from disposal - -5.697 -5 - -5.702<br />
3.3 Impairment losses - -8.070 - - -8.070<br />
3.4 Other changes -1.008 -2.509 - - - 3.517<br />
4. Closing bal ances -40.571 36.598 -12.919 - -16.892<br />
The transfer to the income statement of negative reserves amounting to 40,5 million euro relates to the cumulative<br />
negative change in value of the interest held in Intesa Sanpaolo as at 31 st December 2007, while the impairment<br />
losses present within negative changes, amounting to 8,1 million euro, relate to the elimination of the cumulative<br />
positive changes in value until the end of 2007 on the interest held in the London Stock Exchange, (formerly Borsa<br />
Italiana - 7,3 million euro) and A2A (0,8 million euro).<br />
As reported in the relative table in part F of the notes to the financial statements, the<br />
supervisory capital of <strong>UBI</strong> <strong>Banca</strong> amounted to 13,7 billion euro at the end of 2008 (with tier 1<br />
capital accounting for almost 10 billion euro) compared to 13,5 billion euro twelve months<br />
previously.<br />
The absorption of capital for credit risk, market risk operational risk and other capital<br />
requirements (detailed in the relative table in part F of the notes to the financial statements,<br />
which may be consulted) amounted to 1.275 million euro to give a tier 1 ratio of 45,89% and a<br />
total capital ratio of 64,25%.<br />
In consideration of the solidity of the ratios existing also at consolidated level, the Group has<br />
no immediate need to strengthen its capital. <strong>UBI</strong> <strong>Banca</strong> will not therefore take advantage at<br />
present of the opportunity to purchase special government bank bonds (the “Tremonti<br />
Bonds”), pursuant to Art. 12 of Decree Law No. 185/2008 (anti-crisis decree) converted into<br />
law on 28 th January 2009.<br />
Nevertheless with a view to maintaining, strengthening and improving the capital base of the<br />
Group in the medium term and to increasing shareholder loyalty, the Management Board and<br />
508 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
the Supervisory Board have decided to submit a proposal to a shareholders’ meeting for two<br />
capital management initiatives as follows:<br />
1) the issue free of charge to the shareholders of one warrant for every share held on the exdividend<br />
date, which will give the right, after two years from issue, to subscribe one <strong>UBI</strong><br />
<strong>Banca</strong> share for every 20 warrants at a price which will be decided by the shareholders’<br />
meeting.<br />
2) the issue of convertible bonds maturing in four years, for a maximum amount of 640<br />
million euro, reserved to shareholders at attractive conditions.<br />
They will be convertible:<br />
before maturity (in any event after 18 months):<br />
- at the option of the bondholder, at a predetermined price;<br />
- at the option of the issuer, at the lower of the predetermined and the market price,<br />
by paying a premium to bondholders.<br />
on maturity the convertible bonds may be redeemed at the option of the issuer either<br />
in cash or by conversion into shares on the basis of the stock exchange price of the<br />
underlying <strong>UBI</strong> <strong>Banca</strong> share and in any event for a value not less than the nominal value<br />
of the bond.<br />
With this structure, the issue will constitute a remunerated source of funding with a fixed<br />
coupon and it will strengthen capital in the medium term if converted<br />
Both the warrants and the convertible bonds will be listed on regulated markets managed by<br />
Borsa Italiana.<br />
509 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Relations with companies in the Group<br />
Details of relations with companies in the Group are given in part H of the notes to the<br />
financial statements as part of the information on related parties, distinguishing between<br />
subsidiaries (fully consolidated), companies subject to joint control (proportionately<br />
consolidated) and associates (consolidated using the equity method).<br />
Research and Development<br />
Information on the research and development performed by the Bank is contained in the<br />
relative section of the consolidated management report contained in the first part of this<br />
publication.<br />
As part of its role as the Parent Bank, <strong>UBI</strong> <strong>Banca</strong> performs research and development for the<br />
purpose of supporting and co-ordinating all the companies in the Group.<br />
The system of internal control<br />
As concerns the system of internal controls of <strong>UBI</strong> <strong>Banca</strong>, this is reported in the corresponding<br />
section of the consolidated management report and also, with regard to risks and the relative<br />
hedging policies, in Part E of the Notes to the accounts where full details are given.<br />
510 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Share performance and shareholder<br />
structure<br />
Share performance<br />
The <strong>UBI</strong> <strong>Banca</strong> share is traded on the Mercato Telematico Azionario (screen based stock<br />
market) of Borsa Italiana in the blue chip segment and forms part of the S&P/MIB Index.<br />
As is known, the crisis that hit financial markets in 2008 reduced capitalisation on all world<br />
stock exchanges and the relative indices recorded substantial losses (see the section “The<br />
macroeconomic scenario”).<br />
On the Milan stock exchange the S&P/Mib index lost 49,5% over twelve months, with all<br />
major sectors (industrial, services and financial) involved; that which lost most was the<br />
financial sector (-53,9%). More specifically the banking sector ended 2008 with a loss of<br />
57,3%. This was the context in which the <strong>UBI</strong> <strong>Banca</strong> share performed in 2008 with a loss of<br />
44,5%.<br />
The fall in share prices is greater if the comparison is made with the date on which the <strong>UBI</strong><br />
<strong>Banca</strong> Group was established (April 2007), since the origin of the current financial situation<br />
dates back to July 2007, when the United States subprime mortgage crisis began.<br />
Nevertheless, even over this period of time the <strong>UBI</strong> <strong>Banca</strong> share (-52,4%) recorded a more<br />
contained loss than that incurred by the banking sector (-63,7%) and by the S&P/Mib index (-<br />
53,7%) .<br />
2009 began with strong negative trends on markets, with the S&P/Mib index losing 23,19% in<br />
the first three months (20 th March) and the banking sector even more (-26,21%). The <strong>UBI</strong><br />
<strong>Banca</strong> share was particularly penalised, (-29,3% to 7,28 euro), recording record lows (6,15<br />
euro – the reference price on 9 th March 2009.<br />
Performance comparisons for the Unione di Banche Italiane share<br />
Amounts in euro<br />
Unione di Banche Italiane<br />
30.12.2008<br />
A<br />
28.12.2007<br />
B<br />
Variazione %<br />
A/B<br />
2.4.2007<br />
C<br />
% change<br />
A/C<br />
- official price 10,398 18,734 -44,5% 21,850 -52,4%<br />
- reference price 10,290 18,810 -45,3% 21,790 -52,8%<br />
S&P/Mib 19.460 38.554 -49,5% 41.990 -53,7%<br />
Mib Banks 1.469 3.443 -57,3% 4.048 -63,7%<br />
511 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
110<br />
105<br />
100<br />
95<br />
90<br />
85<br />
80<br />
75<br />
70<br />
65<br />
60<br />
55<br />
50<br />
45<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
Performance of the S&P/Mib, banking Mib and the <strong>UBI</strong> <strong>Banca</strong> share (*)<br />
since 2nd April 2007<br />
S&P Mib<br />
<strong>UBI</strong> <strong>Banca</strong><br />
Banking Mib<br />
Graph No. 1<br />
2007<br />
2008<br />
2009<br />
A M J J A S O N D J F M A M J J A S O N D J F M<br />
(*) Prices in euro<br />
23<br />
22<br />
21<br />
20<br />
19<br />
18<br />
17<br />
16<br />
15<br />
14<br />
13<br />
12<br />
11<br />
10<br />
9<br />
8<br />
7<br />
6<br />
5<br />
4<br />
3<br />
2<br />
Performance of the <strong>UBI</strong> <strong>Banca</strong> share<br />
since 1st July 2003 (*) and volumes traded<br />
Graph No. n.2<br />
2003 2004 2005 2006 2007 2008<br />
2009<br />
J A S O N D J F MA M J J A S O N D J F MA M J J A S O N D J F MA M J J A S O N D J F MA M J J A S O N D J F MA M J J A S O N D J F M<br />
(*) prices in euro<br />
42.000.000<br />
40.000.000<br />
38.000.000<br />
36.000.000<br />
34.000.000<br />
32.000.000<br />
30.000.000<br />
28.000.000<br />
26.000.000<br />
24.000.000<br />
22.000.000<br />
20.000.000<br />
18.000.000<br />
16.000.000<br />
14.000.000<br />
12.000.000<br />
10.000.000<br />
8.000.000<br />
6.000.000<br />
4.000.000<br />
2.000.000<br />
0<br />
Volumes<br />
The year 2009 began with strong negative trends on markets, with the S&P/Mib index losing<br />
23,19% in the first three months (20 th March) and the banking sector even more (-26,21%).<br />
The <strong>UBI</strong> <strong>Banca</strong> share was particularly penalised, (-29,3% to 7,28 euro), recording record lows<br />
(6,15 euro – the reference price on 9 th March 2009.<br />
In 2008, 649 million <strong>UBI</strong> <strong>Banca</strong> shares were traded on the screen based stock market for a<br />
value of 9,9 billion euro, compared to 725 million shares for 14,7 billion euro recorded in<br />
2007.<br />
As a result of the decrease in the share price, the stock market capitalisation (calculated on<br />
the official price) at the end of the year had fallen to 6,6 billion euro, corresponding to the<br />
consolidated tangible equity (calculated net of goodwill), from 12 billion euro in 2007. Despite<br />
this, <strong>UBI</strong> <strong>Banca</strong> remains one of the banking shares with the greatest capitalisation at 4 th place<br />
among Italian banking groups and in first place among “popular” banks.<br />
At European level, the <strong>UBI</strong> <strong>Banca</strong> Group was again among the first twenty five on the basis of<br />
the classification drawn up by the ABI (Italian Banking Association) in its European Banking<br />
Report which considers the 15 countries of the European Monetary Union plus Switzerland.<br />
The main information concerning the <strong>UBI</strong> <strong>Banca</strong> share is summarised below along with the<br />
principal stock market indicators which have been calculated using consolidated figures<br />
stated pro-forma for 2007, which are more meaningful.<br />
512 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The <strong>UBI</strong> <strong>Banca</strong> share and the main stock market indicators<br />
2008 2007<br />
Number of outstanding shares at the end of year 639.145.902 639.145.902<br />
Average price of the <strong>UBI</strong> share - in euro (average of the official prices quoted daily by Borsa<br />
Italiana Spa) 15,029 20,133<br />
Minimum price (recorded during trading) - in euro 10,290 17,780<br />
Maximum price (recorded during trading) - in euro 18,850 22,680<br />
Unit dividend - in euro 0,450 0,950<br />
Dividend yield (dividend per share/average price) 2,99% 4,72%<br />
Dividend totals - in euro 287.615.655,90 607.188.606,90<br />
Book Value - in euro (Consolidated equity, excluding goodw ill and profit for the period, per<br />
share) 17,32 17,10<br />
Book Value - in euro (Consolidated equity, excluding goodw ill and profit for the period, per<br />
share) 10,53 10,29<br />
Stock market capitalisation at the end of the year (official prices) - in millions of euro 6.646 11.974<br />
P rice/book value (Stock market capitalisation at the end of the year/consolidated equity,<br />
excluding profit for the year)<br />
0,60 1,10<br />
P rice/book value net of goodw ill 0,99 1,82<br />
EP S - Earning per share - in euro (consolidated net profit per share pursuant to IAS 33)(*) 0,108 1,644<br />
(*) The EPS for 2007 takes into account the earnings of the companies of the former BLP Group from 1 st January 2007.<br />
Information concerning share capital and share ownership<br />
The share capital of <strong>UBI</strong> <strong>Banca</strong> as at 31 st December 2008 was unchanged at 1.597.864.755<br />
euro, consisting of 639.145.902 ordinary shares with a nominal value of 2,5 euro; all the<br />
outstanding shares have normal dividend entitlement from 1 st January 2008.<br />
The legislation in force relating to ‘popular’ co-operative banks (Art. 30 of the Consolidated<br />
Banking Act), which is also cited in article 18 of the corporate by-laws, limits the percentage<br />
interest of the share capital that may be owned by registered and unregistered shareholders to<br />
0.50% of the share capital.<br />
The limit on the size of shareholdings does not apply to collective investment companies,<br />
which are subject to the limits laid down in the rules of each of them.<br />
Each registered shareholder may cast only one vote, irrespective of the number of shares held.<br />
Under Article 120 of the Consolidated Finance Act, persons holding more than 2% of the share<br />
capital in a share issuer which has Italy as its member state of origin must notify this to the<br />
company and to the CONSOB (Italian securities market authority).<br />
At the date of this financial report no reports of positions greater than 2% had been notified,<br />
other than those received in April 2007 at the time of the merger of <strong>Banca</strong> Lombarda e<br />
Piemontese. On the date of the payment the 2008 dividend, the principal shareholders of <strong>UBI</strong><br />
Bank held shares as follows: 2,280% by Fondazione Cassa di Risparmio di Cuneo; 2,255% by<br />
Fondazione <strong>Banca</strong> del Monte di Lombardia; 2,122% by Carlo Tassara Spa 1 . In accordance with<br />
Art. 30 of the Consolidated Banking Act, the Bank proceeded to inform those concerned of the<br />
prohibition on holding more than 0,50% of the share capital 2 .<br />
On the basis of an updating of the shareholders’ register, registered shareholders numbered<br />
85.280 as at 31 st December 2008. They held more than 65% of the share capital. If account is<br />
also taken of the shareholders who are not listed in the shareholders’ register, then the total of<br />
registered and unregistered shareholders numbered approximately 151 thousand. On the<br />
basis of data relating to the dividend distribution paid in 2008, 44% of the overall shareholder<br />
base of <strong>UBI</strong> <strong>Banca</strong> consists of private individuals and 56% consists of legal entities. The<br />
1 At the date of this report, the interest held was 2,004%.<br />
2 Art. 41, paragraph 14 of Decree Law No 207 of 30 th December 2008, converted into Law No. 14 of 27 th February<br />
2009, granted a further postponement of one year (with respect to what had already been granted by Art. 28-bis of<br />
Decree Law No. 248 of 31 st December 2007, converted into Law No. 31 of 28 th February 2008) for the sale of equity<br />
investments in excess of 0,50% of the share capital held in “popular” co-operative banks, where the reason for<br />
exceeding the limit relates to ownership concentration transactions between banks or between investors. That<br />
postponement was communicated by letter to the parties concerned.<br />
513 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
shares held by institutional investors represent more than 39% of the share capital 3 and more<br />
specifically 9,4% is owned by investment funds and more than 10% by asset management<br />
companies, brokerage and financial companies.<br />
The report on corporate governance attached to this publication may be consulted for other<br />
disclosures pursuant to article 123-bis of Legislative Decree No. 58 of 24 th February 1998<br />
(Consolidated Law on Finance)<br />
Corporate Governance<br />
Information on corporate governance is given in the corporate governance report prepared in<br />
compliance with the Self Disciplinary Code of Conduct for listed companies of Borsa Italiana<br />
Spa. The report is contained in an attachment to this publication and may also be consulted<br />
on the corporate website at “www.ubibanca.it in the section Corporate Governance, Corporate<br />
Documents”.<br />
Own shares<br />
As at 31 st December 2008 <strong>UBI</strong> <strong>Banca</strong> held none of its own shares and it neither purchased nor<br />
sold shares during the year (notes to the financial statements, Part B, Liabilities, Section 14<br />
Table 14.3).<br />
Report on the admission of new registered shareholders (pursuant<br />
to Art. 2528, paragraph five of the Italian Civil Code)<br />
We report that again in 2008, the admission of new registered shareholders was decided by<br />
first assessing the applications presented in compliance with the articles 6 and 9 of the<br />
corporate by-laws of <strong>UBI</strong> <strong>Banca</strong>.<br />
The applications submitted for the approval of the Management Board numbered a total of<br />
1.792, all fully accepted, after verifying the possession of a minimum of 250 shares by aspiring<br />
registered shareholders, as provided for by article 8, paragraph 2 of the corporate by-laws.<br />
In detail, 1.759 applications were collected by banks in the Group and the remaining 33<br />
through non Group intermediaries.<br />
Report on mutual objects (in accordance with Art. 2545 of the Italian Civil<br />
Code)<br />
In accordance with its model as a ‘popular’ bank, <strong>UBI</strong> <strong>Banca</strong> not only orients its operating<br />
policies towards the production of value in general, but also towards achieving the mutual<br />
objects intrinsic in its institutional model, both through initiatives directed to grant<br />
3 On the basis of the latest survey conducted on the composition of the shareholder base in co-operation with an<br />
international company specialising in “market intelligence”, which does not include trust companies and hedge<br />
funds, the share capital held by institutional investors is located mainly in Europe (including Italy), in the British<br />
Isles area (United Kingdom and Ireland) and in North America.<br />
514 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
concessions directly to its registered shareholders and through numerous actions to support<br />
the local economies of the areas in which the bank operates traditionally.<br />
The package termed “Value Project”, is important with regard to the first aspect. It is a set of<br />
banking and insurance concessions, free of charge, destined exclusively to the registered<br />
shareholders of the Bank. The banking concessions are reserved to those who hold a current<br />
account and have shares in the Bank deposited with banks in the Group, while the insurance<br />
policies are for registered shareholders in general.<br />
More specifically, the Value Project allows registered shareholders to save on the monthly<br />
charges on some of the Duetto bundled accounts, it exempts them from assessment charges<br />
for home mortgage and personal loans and grants them loans at special rates to meet the<br />
costs of their children’s education.<br />
Young registered shareholders are exempted from charges for activating prepaid and<br />
rechargeable cards.<br />
As concerns insurance, the Value Project grants, free of charge, a family civil liability policy,<br />
an accident life or permanent invalidity policy, a safe withdrawal policy which pays damages<br />
for thefts or robberies occurring during paying in or withdrawal operations and a daily<br />
indemnity in case of hospitalisation caused by an accident.<br />
Again with regard to initiatives on behalf of shareholders and more specifically also to increase<br />
the loyalty of registered shareholders and to provide an incentive to participate in shareholder<br />
events as a pivotal moment of meeting and discussion on the life of the bank, a three-year<br />
competition is currently in progress in which prizes are drawn for registered shareholders<br />
attending meetings.<br />
As concerns support for the local economies in the areas in which the Bank operates through<br />
its Group, decisions are made as part of the social responsibility orientation of the Bank which<br />
reflects its “historical” mission of being a ‘Popular Bank’ strongly rooted in the social and<br />
economic life of the community committed to the promotion of harmonious and lasting<br />
development, thereby interpreting and implementing the original co-operative objects of<br />
‘popular’ banks in a new and broader manner.<br />
The network banks, which are operationally and legally autonomous, are organised on a<br />
federal model according to a principal of complementarity, which integrates different corporate<br />
histories and cultures which each have a common vocation: strongly rooted in local areas,<br />
attention to the needs of local financial, industrial and economic communities and a strong<br />
orientation to serve families and small to medium size enterprises.<br />
The Group has grown in this way to cover a large part of the Italian regions with banks which<br />
originated in them and which have gradually opened new branches or merged with other local<br />
realities to achieve a particularly large share of branches in their provinces of origin. That is<br />
why the role of the branch networks is emphasised in the Group’s banks: their primary<br />
objective is to focus on longstanding links with local economies and communities, to conserve<br />
traditional relationships between bank and customer and to create value in society.<br />
The branches are not concentrated in a few large centres, but are spread throughout almost<br />
1.200 municipalities.<br />
In order to better direct the Bank’s operations to assist business communities in the very<br />
many local realities in which the Group is present, it works with trade associations and<br />
guarantee bodies that represent local communities, by means of conventions for the purpose<br />
of granting ordinary loans and also specific loans to develop the competitiveness of small to<br />
medium sized enterprises. The product companies play a key role here by providing excellent<br />
services in fields that include business advisory services, innovative finance, easy-term credit,<br />
leasing and electronic commerce (see the section on small businesses in the consolidated<br />
management report).<br />
Finally constant attention continues to be paid to the development of new products and<br />
services with particular reference to social and environmental issues. One issue that has been<br />
515 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
addressed in recent years, of great importance, is that of the social inclusion of disadvantaged<br />
groups and of immigrant citizens from outside the European Community in particular. Local<br />
institutions and trade associations are involved with the dual task of indicating cases worthy<br />
of attention and of guaranteeing that finance consisting of very small loans actually arrives at<br />
its destination for social welfare purposes and to support entrepreneurial initiatives and study<br />
and retraining courses for those groups in the population. Work has been in progress in this<br />
direction for some time now with a project named “InItaly”, which involves funding and lending<br />
products and banking and insurance services dedicated to immigrants from outside the<br />
European Community and more generally to disadvantaged groups in society and to voluntary<br />
associations. In order to make an even more incisive contribution to preventing the risk of<br />
social exclusion for the more disadvantaged groups who have difficulty in gaining access to<br />
bank credit, a strategic partnership was entered into at the end of 2008 with PerMicro Spa, a<br />
national operator which specialises in developing micro-credit for individuals and very small<br />
businesses.<br />
In recent years, in consideration of the increasing gravity of environmental problems, the<br />
Group has introduced specific products to support the environment and initiatives to reduce<br />
polluting emissions by private individuals and businesses with the continuation of the “My<br />
city” project and the development of the “Energy Space” project, which led to the launch of two<br />
new lines of finance, one dedicated to alternative energies (“New Energy”) and one directed<br />
specifically to the development of photovoltaic cells “Forza Sole” (Sun Strength). The marketing<br />
campaign “Quì <strong>UBI</strong> per l’ambiente” is also designed to increase awareness of environmental<br />
issues among customers. It was launched in November in co-operation with WWF Italia to<br />
promote internet banking in the Group by supporting initiatives to study and conserve the<br />
environment in nature reserves and parks located in the provinces in which the network<br />
banks have their roots.<br />
Attention to local needs in a context of subsidiarity and mutuality is also borne out by the<br />
numerous initiatives to provide social, cultural, scientific, welfare and environmental support<br />
performed directly by the Group’s network banks, which are flanked by initiatives by the<br />
Parent Bank and by the Foundations created by the Group, the <strong>Banca</strong> <strong>Banca</strong> Popolare di<br />
Bergamo Onlus, Banche Popolari Unite per Varese Onlus, Fondazione CAB and Fondazione<br />
<strong>Banca</strong> San Paolo di Brescia (see also the special section in the consolidated management<br />
report). More specifically, in accordance with their corporate by-laws, the principal Banks in<br />
the Group grant a part of their profits to charitable, humanitarian, social, cultural and artistic<br />
purposes<br />
The Bank also gives priority in its sponsorship activities designed to promote its image to<br />
initiatives which link its brand name with associations and personalities in the world of<br />
voluntary work, culture and sport that provide positive examples to the community.<br />
Action was taken in 2008 involving funds totalling more than 21,5 million euro with which<br />
the Group contributed to the life of hundreds of organisations and associations, both church<br />
associated and others, spread throughout the community to fuel intense activity that is<br />
important to individual local areas.<br />
Initiatives to reform legislation on ‘popular’ co-operative banks<br />
In recent years the Italian Parliament has attempted on several occasions to examine the<br />
legislation governing “popular” banks with a view to making changes with regard to the<br />
maximum limit on shares that may be held by individual and institutional investors.<br />
<strong>UBI</strong> <strong>Banca</strong> has expressed its opinion in favour of raising the limits on shareholdings, but at<br />
the same time conserving the regulations on “popular” banks, especially with regard to the<br />
principle of per capita voting.<br />
516 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Shareholdings of management and supervisory bodies, the<br />
General Manager and senior managers with strategic<br />
responsibilities<br />
The information required under Art. 79 of the Issuers Regulations is given in Part H of the<br />
notes to the financial statements, with regard to relations and business with related parties.<br />
De jure and delegated powers of the corporate bodies (CONSOB<br />
Recommendation No. 97001574 of 20 th February 1997)<br />
Information concerning the powers of the governing bodies of Unione di Banche Italiane Scpa,<br />
as required under CONSOB (Italian securities market authority) Recommendation No.<br />
97001574 of 20 th February 1997 is contained in the report on corporate governance attached<br />
to this publication.<br />
517 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Other information<br />
Amendments to corporate by-laws<br />
On 27 th January 2009 the Management Board passed a resolution to submit the following<br />
amendments of the Corporate By-Laws to a shareholders’ meeting: articles 5 and 13 (Title III -<br />
Share Capital, Registered Shareholders and Shares), articles 22 and 28 (Title V - Shareholders’<br />
Meetings), articles 30, 36, 37, 38 and 39 (Title VI - Management Board), articles 43 and 43 bis<br />
(Title VII- Chief Executive Officer), articles 44, 45, 46, 47, 48 and 49 (TITLE VIII - Supervisory<br />
Board), article 51 (Title X - Board of Arbitration), article 52 (Title XI- Financial Statements,<br />
profits and reserves) and the transition regulations from I to VI.<br />
Those amendments to the corporate by-laws – authorised by the Supervisory Board in a<br />
meeting of 30 th January 2009 – are attributable mainly to the need for the Corporate By-Laws<br />
to comply with the rules introduced by the “Supervisory provisions on the organisation and<br />
corporate governance of Banks”, adopted by the Governor of the Bank of Italy on 4 th March<br />
2008 (hereinafter “Bank of Italy Provisions”). Amendments made in this respect concerned the<br />
following:<br />
i) procedures for the appointment, removal and substitution of members of the Supervisory<br />
Board, with provisions for greater representation of candidates from minority lists;<br />
ii) powers granted to shareholders’ meetings to determine the total remuneration of members<br />
of the Supervisory Board, including therefore those with particular appointments, powers or<br />
functions;<br />
iii) powers granted to shareholders’ meetings to approve remuneration policies for members of<br />
the Management Board and remuneration and/or incentive schemes based on financial<br />
instruments;<br />
iv) the criterion for distributing remuneration among the members of the Supervisory Board;<br />
v) more precise identification and distinction of the duties and responsibilities of the<br />
Management Board and of the Supervisory Board, regarding in particular:<br />
- powers conferred on the Chairman of the Management Board and the Chairman of the<br />
Supervisory Board;<br />
- powers attributable to bodies delegated by the Management Board;<br />
- strategic operations reserved to the Supervisory Board;<br />
vi) participation in Management Board meetings by members of the internal control<br />
committee;<br />
vii) the elimination of transition regulations, because they are now obsolete.<br />
Finally amendments of a formal nature are proposed or in any case designed to introduce a<br />
more precise definition to the by-laws.<br />
If approved the proposals in question will not give rise to the right to withdraw from the<br />
company.<br />
518 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Litigation<br />
Information on corporate litigation currently pending concerning <strong>UBI</strong> <strong>Banca</strong> is given in the<br />
consolidated report on operations, which may be consulted.<br />
Tax consolidation<br />
<strong>UBI</strong> <strong>Banca</strong> participates in the national tax consolidation pursuant to articles 117 et seq. of the<br />
TUIR (consolidated law on income tax). As a result of the amendments introduced by Law No.<br />
244/2007 (the 2008 Finance Act) from 1 st January 2008 there is no longer total exemption for<br />
intragroup dividends and the regime of neutrality for transfers between members of the Group<br />
has also been removed. The tax consolidation expiring in 2010 1 was confirmed in June 2008,<br />
but without effect for the three year contracts that already existed and expired in 2008 2 .<br />
Decree Law No. 112/2008, enacted immediately following the expiry of the time limit for taking<br />
up the three year option, introduced concessionary measures in relation to the non<br />
deductibility of interest expense – see article 96, paragraph 5 bis, of the TUIR. These will lead<br />
as a consequence to a further extension of the tax consolidation from 2009 with the inclusion<br />
of companies already excluded for organisational and operational reasons.<br />
Legislation on the protection of personal data<br />
In compliance with Art. 34 of Legislative Decree No. 196 of 30 th June 2003 – Legislation on the<br />
protection of personal data – the periodical update of the security programme document was<br />
completed on time and in compliance with the recommendations contained in the Attachment<br />
B, Technical Regulations, of that decree (Rule 19).<br />
1 The tax consolidation expiring in 2010 includes <strong>UBI</strong> Sistemi e Servizi, Mercato Impresa, <strong>UBI</strong> Assicurazioni, <strong>UBI</strong> CentroSystem, BPB<br />
Immobiliare and <strong>UBI</strong> Gestioni Fiduciarie.<br />
2 The tax consolidation which expired in 2008 included <strong>Banca</strong> Popolare di Bergamo, Banco di Brescia, <strong>Banca</strong> Regionale Europea,<br />
Banco di San Giorgio, <strong>Banca</strong> di Valle Camonica, <strong>UBI</strong> <strong>Banca</strong> Private Investment, <strong>UBI</strong> Leasing, Silf, <strong>UBI</strong> Factor, Capitalgest Alternative<br />
Investments SGR, <strong>UBI</strong> Pramerica Alternative Investments SGR, S.B.I.M., SOLIMM and <strong>UBI</strong> Gestioni Fiduciarie Sim.<br />
519 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Principal risks and uncertainties to which<br />
<strong>UBI</strong> <strong>Banca</strong> is exposed<br />
<strong>UBI</strong> <strong>Banca</strong>, as the Parent Bank, plays a leading role in the process of assessing capital<br />
adequacy at consolidated level (ICAAP – Internal Capital Adequacy Assessment Process) and it<br />
also performs centralised functions of risk measurement, monitoring and management<br />
detailed in the consolidated report on operations, which may be consulted for a precise<br />
description and for details of the principal uncertainties.<br />
Significant events occurring after the end of<br />
the year and the business outlook<br />
The main significant events occurring after the end of the year are reported in the notes to the<br />
financial statements, Part A – Accounting policies, in compliance with Bank of Italy Circular<br />
No. 262 of December 2005.<br />
The corresponding section of the consolidated management report may be consulted for<br />
information on the business outlook.<br />
520 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Proposal for the allocation of profit for the<br />
year and a dividend distribution<br />
Dear Shareholders,<br />
In compliance with article 2364 bis of the Italian Civil Code and article 52 of the corporate bylaws,<br />
the following allocation of profit and dividend distribution is proposed:<br />
Profit for the year Euro 23.885.701,72<br />
10% to the legal reserve Euro -2.388.570,17<br />
Remaining profit Euro 21.497.131,55<br />
1,5% to the Board of Directors for charitable, humanitarian, social, cultural and<br />
artistic purposes Euro -322.456,97<br />
Euro 21.174.674,58<br />
quota to the unavailable reserve pursuant to Art. 6 Legislative Decree 38/2005 (*) Euro -7.399.557,00<br />
Profit distribu table Euro 13.775.117,58<br />
from retained profit Euro 261.344,49<br />
from the extraordinary reserve Euro 273.579.193,83<br />
TOTAL Euro 287.615.655,90<br />
Euro 0,45 for each of the 639.145.902 ordinary shares with dividend entitlement 1st<br />
January 2008 Euro -287.615.655,90<br />
(*) Net gains relate to non negotiable financial instruments.<br />
As a result of the Bank’s sound capital ratios and a policy of allocating to reserves pursued in<br />
previous years with the objective, amongst other things, of stabilising the remuneration of<br />
shares, the Management Board has decided to propose the declaration of a dividend of 0,45<br />
euro for each of the ordinary shares outstanding.<br />
Payment of the dividend, if approved, will commence on 18 th May 2009 (value date 21 st May<br />
2009), against coupon No. 7.<br />
As a result of the tax reform which came into force on 1 st January 2004, there is no tax credit<br />
on the dividend and, depending on who receives it, it is either subject to a withholding tax or<br />
part of it constitutes taxable income.<br />
The total dividend payment will amount to 287,6 million euro drawn on the profit of the Parent<br />
Bank and on the extraordinary reserve after legal and by-law allocations.<br />
Bergamo, 24 th March 2009<br />
The Management Board<br />
521 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
STATEMENT OF THE<br />
CHIEF EXECUTIVE<br />
OFFICER AND OF THE<br />
SENIOR OFFICER<br />
RESPONSIBLE FOR<br />
PREPARING THE<br />
COMPANY ACCOUNTING<br />
DOCUMENTS<br />
522 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Certification of the separate company financial statements pursuant to article 154<br />
bis of Legislative Decree No. 58/98<br />
1.<br />
The undersigned Victor Massiah, Chief Executive Officer, and Elisabetta Stegher, Senior<br />
Officer Responsible for preparing the company accounting documents of <strong>UBI</strong> <strong>Banca</strong> Scpa,<br />
having taken account of the provisions of paragraphs 3 and 4 of article 154 bis of Legislative<br />
Decree No. 58 of 24 th February 1998, hereby certify to:<br />
<br />
<br />
the adequacy in relation to the characteristics of the company and<br />
the effective application of the administrative and accounting procedures for the<br />
preparation of the separate financial statements during the course of 2008.<br />
2.<br />
The model employed<br />
The assessment of the adequacy of the administrative and accounting procedures for the<br />
preparation of the separate company financial statements as at and for the year ended 31 st<br />
December 2008 was based on an internal model defined by <strong>UBI</strong> <strong>Banca</strong> Scpa and developed in<br />
accordance with the framework drawn up by the Committee of Sponsoring Organisations of<br />
the Treadway Commission (COSO) and with the framework Control Objectives for IT and<br />
related technology (COBIT) which represent the generally accepted international standards for<br />
internal control systems.<br />
3.<br />
The undersigned Victor Massiah and Elisabetta Stegher also certify that:<br />
3.1 the financial statements as at and for the year ended 31/12/2008:<br />
a) were prepared in compliance with the applicable international accounting<br />
standards recognised by the European Community in accordance with the<br />
Regulation No. 1605/2002 (EC) issued by the European Parliament on 19 th July<br />
2002;<br />
b) correspond to the records contained in the accounting books of the company;<br />
c) were prepared in compliance with the International Financial Reporting Standards<br />
adopted by the European Union and also with the regulations issued to implement<br />
Art. 9 of Legislative Decree No. 38/2005 and, insofar as it is known, give a true and<br />
fair view of the capital, operating and financial position of the issuer.<br />
3.2 the management report comprises a reliable analysis of the performance, operating results<br />
and position of the issuer, together with a description, insofar as they are known, of the main<br />
risks and uncertainties to which it is exposed.<br />
24 th March 2009<br />
Victor Massiah<br />
Chief Executive Officer<br />
(Signed on the original)<br />
Elisabetta Stegher<br />
Senior Officer Responsible for preparing<br />
the company accounting documents<br />
Signed on the original)<br />
523 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
524 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
525 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Separate Financial Statements<br />
526 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Balance Sheet<br />
Amounts in euro<br />
A SSET S 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
10. CASH AND CASH EQUIVALENTS 246.459.531 66.811.780<br />
20. FINANCIAL ASSETS HELD FOR TRADING 2.424.110.857 2.753.771.831<br />
30. FINANCIAL ASSETS AT FAIR VALUE 460.156.962 981.147.602<br />
40. AVAILABLE-FOR-SALE FINANCIAL ASSETS 2.767.513.109 2.060.908.877<br />
50. HELD-TO-M ATURITY FINANCIAL ASSETS 1.620.566.668 1.244.574.348<br />
60. LOANS TO BANKS 29.298.337.507 19.708.389.611<br />
70. LOANS TO CUSTOM ERS 10.446.767.620 10.266.957.901<br />
80. HEDGING DERIVATIVES 72.786.755 48.974.964<br />
100. EQUITY INVESTM ENTS 11.909.207.092 11.606.918.299<br />
110. PROPERTY, PLANT AND EQUIPM ENT 677.217.765 678.204.768<br />
120. INTANGIBLE ASSETS 596.755.992 588.673.152<br />
of which:<br />
- goodwill 569.057.699 569.694.244<br />
130. TAX ASSETS 593.404.541 528.085.059<br />
a) current 343.011.461 470.931.733<br />
b) deferred 250.393.080 57.153.326<br />
140. NON CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE 13.931.432 43.866.288<br />
150. OTHER ASSETS 856.101.608 1.404.608.222<br />
T OT A L A SSET S 6 1.9 8 3 .3 17.4 3 9 51.9 8 1.8 9 2 .70 2<br />
The mandatory financial statements as at 31.12.2007 were affected by the reclassification of repurchase and<br />
reverse repurchase agreements with an institutional counterparty out of the items “due to/from banks” into<br />
the items “due to/from customers”.<br />
527 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Amounts in euro<br />
LIA B ILIT IES A N D SHA R EHOLD ER S’ EQU IT Y 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
10. DUE TO BANKS 28.732.514.628 20.505.577.307<br />
20. DUE TO CUSTOM ERS 5.813.894.791 2.872.466.176<br />
30. SECURITIES ISSUED 14.128.184.210 14.657.253.010<br />
40. FINANCIAL LIABILITIES HELD FOR TRADING 1.222.186.638 842.340.914<br />
60. HEDGING DERIVATIVES 74.820.300 54.000.672<br />
80. TAX LIABILITIES 411.848.641 606.325.952<br />
a) current 291.226.995 458.290.466<br />
b) deferred 120.621.646 148.035.486<br />
100. OTHER LIABILITIES 1.186.374.516 1.421.758.260<br />
110. STAFF SEVERANCE PROVISIONS 44.483.091 51.037.372<br />
120. PROVISIONS FOR LIABILITIES AND CHARGES 10.328.973 8.992.739<br />
a) pension and similar obligations - -<br />
b) other provisions 10.328.973 8.992.739<br />
130. VALUATION RESERVES 12.841.916 24.455.922<br />
160. RESERVES 1.623.711.218 1.411.660.076<br />
170. SHARE PREM IUM S 7.100.378.060 7.100.378.060<br />
180. SHARE CAPITAL 1.597.864.755 1.597.864.755<br />
200. PROFIT (LOSS) FOR THE YEAR (+/-) 23.885.702 827.781.487<br />
T OT A L LIA B ILIT IES A N D SHA R EHOLD ER S’ EQU IT Y 6 1.9 8 3 .3 17.4 3 9 51.9 8 1.8 9 2 .70 2<br />
The mandatory financial statements as at 31.12.2007 were affected by the reclassification of repurchase and<br />
reverse repurchase agreements with an institutional counterparty out of the items “due to/from banks” into<br />
the items “due to/from customers”.<br />
528 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
INCOME STATEMENT<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Amounts in euro<br />
10. INTEREST INCOM E AND SIM ILAR 1.844.325.408 1.242.693.344<br />
20. INTEREST EXPENSE AND SIM ILAR (2.095.114.313) (1.426.879.264)<br />
3 0 . N ET IN T ER EST IN C OM E ( 2 50 .78 8 .9 0 5) ( 18 4 .18 5.9 2 0 )<br />
40. COM M ISSION INCOM E 37.311.775 41.966.254<br />
50. COM M ISSION EXPENSE (24.138.264) (24.125.934)<br />
6 0 . N ET C OM M ISSION IN C OM E 13 .173 .511 17.8 4 0 .3 2 0<br />
70. DIVIDENDS AND SIM ILAR INCOM E 904.354.865 972.115.339<br />
80. NET PROFIT (LOSS) FROM TRADING (83.343.036) 23.706.164<br />
90. NET PROFIT (LOSS) FROM HEDGING ACTIVITY (7.235.399) 1.514.219<br />
100. PROFIT (LOSS) FROM DISPOSAL OR REPURCHASE OF: 15.770.366 24.119.830<br />
a) loans 900 -<br />
b) available-for-sale financial assets 15.395.400 23.989.473<br />
c) held-to-maturity financial assets - -<br />
d) financial liabilities 374.066 130.357<br />
110. NET PROFIT (LOSS) ON FINANCIAL ASSETS AND LIABILITIES at fair value<br />
(118.034.797) 1.549.218<br />
12 0 . G R O SS IN C OM E 4 73 .8 9 6 .6 0 5 8 56 .6 59 .170<br />
130. NET IM PAIRM ENT LOSSES ON: (500.476.932) (7.135.038)<br />
a) loans (4.399.830) (1.208.130)<br />
b) available-for-sale financial assets (494.461.502) (43.142)<br />
c) held-to-maturity financial assets - -<br />
d) other financial transactions (1.615.600) (5.883.766)<br />
14 0 . N ET F IN A N C IA L O PER A T IN G IN C OM E ( 2 6 .58 0 .3 2 7) 8 4 9 .52 4 .13 2<br />
150. ADM INISTRATIVE EXPENSES (351.283.161) (476.333.717)<br />
a) staff costs (174.151.972) (268.923.016)<br />
b) other administrative expenses (177.131.189) (207.410.701)<br />
160. NET PROVISIONS FOR LIABILITIES AND CHARGES (1.733.291) (3.731.682)<br />
170. NET IM PAIRM ENT LOSSES ON PROPERTY, PLANT AND EQUIPM ENT (39.439.932) (59.287.621)<br />
180. NET IM PAIRM ENT LOSSES ON INTANGIBLE ASSETS (22.055.573) (35.696.620)<br />
190. OTHER OPERATING INCOM E/(EXPENSE) 166.081.924 297.557.439<br />
2 0 0 . OPER A T IN G C OST S ( 2 4 8 .4 3 0 .0 3 3 ) ( 2 77.4 9 2 .2 0 1)<br />
210. PROFITS (LOSSES) OF EQUITY INVESTM ENTS 17.600.834 (278.660)<br />
240. PROFITS (LOSSES) ON DISPOSAL OF INVESTM ENTS (58.621) 256.334<br />
2 50 . PR O F IT ( LO SS) O N C O N T IN U IN G O PER A T IO N S B EF OR E T A X ( 2 57.4 6 8 .14 7) 572 .0 0 9 .6 0 5<br />
260. TAXES ON INCOM E FOR THE YEAR FOR CONTINUING OPERATIONS 281.353.849 255.849.530<br />
2 70 . A F T ER T A X PR O F IT ( LO SS) O N C ON T IN U IN G OPER A T IO N S<br />
2 3 .8 8 5.70 2 8 2 7.8 59 .13 5<br />
280. PROFIT (LOSS) AFTER TAX FROM DISCONTINUED OPERATIONS<br />
- (77.648)<br />
2 9 0 . PR O F IT ( LO SS) F O R T HE Y EA R 2 3 .8 8 5.70 2 8 2 7.78 1.4 8 7<br />
The figures to 31.12.2007 were affected by the reclassification of statutory auditors remuneration which was<br />
reclassified within administrative expenses out of item b) other administrative expenses into item a) staff<br />
costs, following instructions given by the Bank of Italy.<br />
529 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Statement of changes in shareholders’ equity 2008<br />
A l l o c a t i o n o f p r i o r y e a r<br />
C h a n g e s d u r i n g t h e y e a r<br />
Amount s in e uro<br />
B a l a n c e s a s a t<br />
3 1. 12 . 2 0 0 7<br />
Ch a n g e s i n<br />
o p e n i n g<br />
b a l a n c e s<br />
B a l a n c e s a s a t<br />
0 1. 0 1. 2 0 0 8<br />
p r o f i t<br />
D i v i d e n d s<br />
R e s e r v e s a n d o t h e r<br />
u s e s<br />
C h a n g e s i n<br />
r e s e r v e s<br />
N e w<br />
s h a r e<br />
i s s u e s<br />
P u r c h a s e<br />
o f o wn<br />
s h a r e s<br />
Tr a n s a c t i o n s a f f e c t i n g e q u i t y<br />
Ex t r a o r d i n a r y<br />
d i s t r i b u t i o n<br />
o f d i v i d e n d s<br />
C h a n g e i n<br />
c a p i t a l<br />
i n s t r u m e n t s<br />
D e r i v a t i v e<br />
s o n o w n<br />
s h a r e s<br />
S t o c k<br />
o p t i o n s<br />
P r o f i t<br />
( l o s s ) f o r<br />
t h e y e a r<br />
S h a r e h o l d e r s ’<br />
e q u i t y a s a t<br />
3 1. 12 . 2 0 0 8<br />
S h a r e c a p i t a l :<br />
a ) ordina ry sha re s<br />
1.597.864.755 - 1.597.864.755 - - - - - - - - - - 1. 5 9 7 . 8 6 4 . 7 5 5<br />
b) ot he r sha re s - - - - - - - - - - - - - -<br />
S h a r e p r e m i u m s<br />
7.100.378.060<br />
-<br />
7.100.378.060<br />
- - - - - - - - - -<br />
7 . 10 0 . 3 7 8 . 0 6 0<br />
Re s e r v e s :<br />
a ) of profit s<br />
b) ot he r<br />
1.179.771.813 - 1.179.771.813 211.307.831 - - - - - - - - - 1. 3 9 1. 0 7 9 . 6 4 4<br />
231.888.263 - 231.888.263 - - 743.311 - - - - - - - 2 3 2 . 6 3 1. 5 7 4<br />
Va l u a t i o n r e s e r v e s :<br />
a ) a va ila ble for sa le<br />
b) c a sh flow he dging<br />
c ) e xc ha nge ra t e diffe re nc e s<br />
d) spe c ia l re va lua t ion la ws<br />
e ) ot he r<br />
Ca p i t a l i n s t r u m e n t s<br />
Ow n s h a r e s<br />
P r o f i t ( l o s s ) f o r t h e y e a r<br />
S h a r e h o l d e r s ’ e q u i t y<br />
-5.502.203 - -5.502.203 - - -11.389.480 - - - - - - - - 16 . 8 9 1. 6 8 3<br />
- - - - - - - - - - - - - -<br />
-242.544 - -242.544 - - - - - - - - - - - 2 4 2 . 5 4 4<br />
29.297.305 - 29.297.305 - - - - - - - - - - 2 9 . 2 9 7 . 3 0 5<br />
903.365 - 903.365 - - -224.527 - - - - - - - 6 7 8 . 8 3 8<br />
- - - - - - - - - - - - - -<br />
- - - - - - - - - - - - - -<br />
827.781.487 - 827.781.487 -211.307.831 -616.473.656 - - - - - - - 23.885.702 2 3 . 8 8 5 . 7 0 2<br />
10 . 9 6 2 . 14 0 . 3 0 1 - 10 . 9 6 2 . 14 0 . 3 0 1 - - 6 16 . 4 7 3 . 6 5 6 - 10 . 8 7 0 . 6 9 6 - - - - - - 2 3 . 8 8 5 . 7 0 2 10 . 3 5 8 . 6 8 1. 6 5 1<br />
The amount of 743.311 euro stated in Changes in reserves– b) Other, is composed of the following:<br />
- the amount of 479.373 euro consists of the gain (net of tax) resulting from the sale of Financiera Veneta EFC in respect of the portion arising from the contribution of<br />
operations to <strong>UBI</strong> <strong>Banca</strong> International. It is recognised as an increase in reserves because it is considered an operation “under common control”;<br />
- the amount of 326.449 euro consisting of the gain (net of tax) realised following the contribution of the subsidiary Capitalgest Alternative to <strong>UBI</strong> Pramerica SGR. It is<br />
recognised within reserves because it is considered an operation “under common control”;<br />
- the negative amount of 62.511 euro consisting of the loss arising from the merger into <strong>UBI</strong> <strong>Banca</strong> of its subsidiary Mercati Finanziari Sim. It is recognised as a<br />
decrease in reserves because it is considered an operation “under common control”.<br />
The negative amount of 224.527 euro (net of tax) in changes in valuation reserves – e) other relates to the actuarial effect on the staff severance provision and a health<br />
policy for employees.<br />
530 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Statement of changes in shareholders’ equity 2007<br />
Amounts in euro<br />
S ha re c a pita l:<br />
B a la nc e s a s<br />
a t 3 1.12 .2 0 0 6<br />
C ha ng e s in<br />
o pe ning<br />
ba la nc e s<br />
B a la nc e s a s<br />
a t 0 1.0 1.2 0 0 7<br />
A llo c a tio n o f prio r ye a r<br />
pro fit<br />
R e s e rv e s<br />
D iv ide nds<br />
a nd o the r<br />
us e s<br />
C ha ng e s in<br />
re s e rv e s<br />
N e w s ha re<br />
is s ue s<br />
P urc ha s e<br />
o f o wn<br />
s ha re s<br />
C ha ng e s during t he ye a r<br />
Tra ns a c tio ns a f fe c t ing e quit y<br />
Extra o rdina<br />
ry<br />
dis tributio n<br />
o f<br />
div ide nds<br />
C ha ng e in<br />
c a pita l<br />
ins trum e nt<br />
s<br />
D e riv a tiv e s<br />
o n o wn<br />
s ha re s<br />
a) o rdinary s hares 861.206.710 - 861.206.710 - - - 736.658.045 - - - - - - 1.5 9 7 .8 6 4 .7 5 5<br />
b) o ther s hares - - - - - - - - - - - - - -<br />
S t o c k<br />
o ptio ns<br />
P ro fit<br />
(lo s s ) fo r<br />
t he ye a r<br />
S ha re ho lde rs<br />
’ e quity a s a t<br />
3 1.12 .2 0 0 7<br />
S ha re pre m ium s<br />
1.545.610.688 - 1.545.610.688 - -235.364.862 - 5.790.132.234 - - - - - - 7 .10 0 .3 7 8 .0 6 0<br />
R e s e rv e s :<br />
a) o f pro fits 965.993.983 - 965.993.983 206.698.690 -903.785 7.982.926 - - - - - - - 1.17 9 .7 7 1.8 13<br />
b) o ther 241.004.757 - 241.004.757 - - -9.116.494 - - - - - - - 2 3 1.8 8 8 .2 6 3<br />
Va lua t io n re s e rv e s :<br />
a) available fo r s ale 26.706.607 - 26.706.607 - - -32.208.811 - - - - - - - -5 .5 0 2 .2 0 3<br />
b) cas h flo w hedging - - - - - - - - - - - - - -<br />
c) exchange rate differences -242.544 - -242.544 - - - - - - - - - - -2 4 2 .5 4 4<br />
d) s pecial revaluatio n laws 29.297.305 - 29.297.305 - - - - - - - - - - 2 9 .2 9 7 .3 0 5<br />
e) o ther -3.163.350 - -3.163.350 - - 4.066.715 - - - - - - - 9 0 3 .3 6 5<br />
C a pita l ins t rum e nts - - - - - - - - - - - - - -<br />
Own s ha re s - - - - - - - - - - - - - -<br />
P ro fit (lo s s ) fo r the ye a r 496.986.895 - 496.986.895 -206.698.690 -290.288.205 - - - - - - - 827.781.487 8 2 7 .7 8 1.4 8 7<br />
S ha re ho lde rs ’ e quity 4 .16 3 .4 0 1.0 5 1 - 4 .16 3 .4 0 1.0 5 1 - -5 2 6 .5 5 6 .8 5 2 - 2 9 .2 7 5 .6 6 4 6 .5 2 6 .7 9 0 .2 7 9 - - - - - 8 2 7 .7 8 1.4 8 7 10 .9 6 2 .14 0 .3 0 1<br />
Following the change in the accounting policy for the staff severance provision and for the health policy, the negative amount of 3.163.350 euro was recognised net of tax in<br />
“Balances as at 31 st December 2006, valuation reserves e) other”.<br />
The amount of 7.982.926 euro was recognised within “Changes in reserves of profits”, in relation to the allocation of the share of profits for 2006 to staff social security and<br />
pensions, to implement the amendment to Art. 52 of the Corporate By-Laws.<br />
The negative amount of 9.116.494 euro in “Changes in reserves, other”, is composed of the following:<br />
- a negative amount of 3.618.367 euro consisting of the transfer to “Reserves of profits” for the effects of the supplementary pension reform;<br />
- a negative amount of 6.208.722 euro for the recognition of goodwill (net of tax) generated following the acquisition of the depository bank operations from <strong>Banca</strong> Regionale<br />
Europea S.p.A., treated in the accounts as a reduction in reserves because it was considered an operation “under common control”;<br />
- a positive amount of 710.595 euro for the recognition of the gain on the disposal (net of tax), following the contribution of the company BPU <strong>Banca</strong> International Sa to <strong>UBI</strong><br />
<strong>Banca</strong> International Sa, recognised as an increase in reserves because it was considered an operation “under common control”.<br />
531 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Statement of cash flows (indirect method)<br />
amo unts in euro<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . OPER A T IN G A C T IV IT IES<br />
1. Ord inary act ivit ies - 2 6 2 .3 3 0 .3 9 0 - 2 8 3 .8 73 .2 9 2<br />
- profit for the year (+/-) 23.885.702 827.781.487<br />
- gains/losses on financial assets held for trading and on financial assets/liabilities at fair value (-/+) 245.123.940 -43.566.349<br />
- gains/losses on hedging activities (-/+) 7.235.399 -1.514.219<br />
- net impairment losses on loans (+/-) 500.476.932 7.135.039<br />
- net impairment losses on property, plant and equipment and intangible assets (+/-) 61.495.505 94.984.242<br />
- net provisions for liabilities and charges and other expense/income (+/-) 1.290.734 -4.114.314<br />
- outstanding taxes and duties (+) -281.353.848 -255.849.530<br />
- other adjustments (+/-) -820.484.754 -908.729.648<br />
2 . Liq uid it y g enerat ed / ab so rb ed b y f inancial asset s - 10 .3 59 .577.73 2 - 2 .9 6 0 .2 4 1.4 57<br />
- financial assets held for trading 200.752.447 1.670.706.425<br />
- financial assets at fair value 416.616.167 2.325.959.742<br />
- available-for-sale financial assets -1.211.076.385 -822.915.620<br />
- lending to banks: other loans -9.377.593.972 -2.591.954.388<br />
- loans to customers -388.275.989 -3.542.037.616<br />
3 . Liq uid it y g enerat ed / ab so rb ed b y f inancial liab ilit ies 11.3 0 3 .159 .0 4 7 3 .13 6 .0 4 9 .2 53<br />
- amounts due to banks: other payables 7.758.584.301 260.243.315<br />
- due to customers 3.371.733.468 2.071.528.609<br />
- securities issued -564.392.718 803.609.445<br />
- financial liabilities for trading 379.825.300 -69.069.869<br />
- other liabilities 357.408.696 69.737.753<br />
Liq uid it y g enerat ed / ab so rb ed b y o p er at ing act ivit ies 6 8 1.2 50 .9 2 5 - 10 8 .0 6 5.4 9 6<br />
B . IN V EST IN G A C T IV IT IES<br />
1. Liq uid it y g enerat ed b y 8 9 8 .0 0 1.4 3 3 9 76 .3 3 4 .4 12<br />
- disposals of equity investments 44.879.741 -<br />
- dividends received on equity investments 837.678.771 905.540.883<br />
- disposals of held-to-maturity financial assets 15.000.000 70.000.000<br />
- disposals of property, plant and equipment 180.704 793.529<br />
- disposals of intangible assets 262.217 -<br />
2 . Liq uid it y ab so rb ed b y - 78 3 .13 0 .9 51 - 3 2 3 .8 55.4 4 8<br />
- purchases of equity investments -355.516.315 -209.167.342<br />
- purchases of held-to-maturity financial assets -385.867.952 -64.302.000<br />
- purchases of property, plant and equipment -39.821.995 -22.358.237<br />
- purchases of intangible assets -1.924.689 -19.427.869<br />
- purchases of lines of business - -8.600.000<br />
N et liq uid it y g enerat ed / ab so rb ed b y invest ing act ivit ies 114 .8 70 .4 8 2 6 52 .4 78 .9 6 4<br />
C . F U N D IN G A C T IV IT IES<br />
- distribution of dividends and other uses -616.473.656 -526.556.852<br />
N et liq uid it y g enerat ed / ab so rb ed b y f und ing act ivit ies - 6 16 .4 73 .6 56 - 52 6 .556 .8 52<br />
N ET LIQU ID IT Y GEN ER A T ED / A B SOR B ED D U R IN G T HE Y EA R 179 .6 4 7.751 17.8 56 .6 16<br />
Legend:<br />
(+) generated<br />
(-) absorbed<br />
532 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Reconciliation<br />
B alance sheet it ems 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Cash and cash equivalents at the beginning of the year 66.811.780 69.407<br />
Cash and cash equivalent inflow on 31.03.2007 following the merger - 48.885.757<br />
Total liquidity generated/absorbed during the year 179.647.751 17.856.616<br />
Cash and cash equivalents: effect of changes in exchange rates - -<br />
Cash and cash equivalents at end of year 246.459.531 66.811.780<br />
533 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part A – Accounting policies<br />
A.1 – General part<br />
A.2 – Main balance sheet item<br />
Part B – Information on the Balance Sheet<br />
Assets<br />
Liabilities<br />
Other information<br />
Part C – Information on the income statement<br />
Part D – Segment reporting<br />
Part E – Information on risks and the relative hedging policies<br />
Part F – Information on capital<br />
Notes to the<br />
Financial Statements<br />
Part G – Business combination transactions concerning companies or lines of business<br />
Part H – Transactions with related parties<br />
Part I – Share based payment agreements<br />
The figures contained in the tables in the Notes to the Accounts<br />
are stated in thousands of euro, unless specified otherwise.<br />
534 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part A – Accounting policies<br />
A.1 – GENERAL PART<br />
Section 1 - Declaration of compliance with IAS/IFRS<br />
This annual report of the <strong>UBI</strong> <strong>Banca</strong> Group has been prepared in compliance with the<br />
international accounting standards issued by the International Accounting Standards Board<br />
(IASB) and homologated at the date of publication and also in compliance with the related<br />
interpretations of the International Financial Reporting Interpretation Committee (IFRIC) 20 .<br />
The financial statements, consisting of the Balance Sheet, Income Statement, Statement of<br />
Cash Flows, Statement of changes in shareholders’ equity, the notes to the accounts and the<br />
management report, subjected to audit by the independent auditors, constitute the separate<br />
company report of the <strong>UBI</strong> <strong>Banca</strong> Scpa, the Parent Bank of the Unione di Banche Italiane<br />
Banking Group.<br />
The separate financial statements as at 31 st December 2008 have been clearly stated and give<br />
a true and fair view of the capital and financial position, the result for the period, the changes<br />
in equity and the cash flows.<br />
Section 2 - General principles of preparation<br />
These financial statements have been prepared according to the general accounting principles<br />
contained in IAS 1 “Presentation of financial statements” and they therefore report information<br />
on a going concern basis, recognising income and expenses on an accruals basis, without<br />
offsetting assets against liabilities and income against expenses. The current context of<br />
economic and financial crisis persuaded management to examine the going concern<br />
assumption with particular care and to confirm it on the basis of the arguments presented in<br />
the section “Principal risks and uncertainties to which the <strong>UBI</strong> <strong>Banca</strong> Group is exposed”<br />
contained in this publication.<br />
Account was taken in the preparation of this annual report of the Bank of Italy /Consob/Isvap<br />
document No. 2 of 6 th February 2009 which, in this context of the difficult economic and<br />
market conditions, calls attention to the need to ensure that financial reporting is adequate<br />
and while it does not introduce further obligations in addition to those already provided by<br />
international accounting standards, it recommends thorough and full compliance with them.<br />
More specifically the contents of that document have been adhered to in the following sections<br />
of this annual report:<br />
- preparation of the financial statements on a going concern basis: see the section<br />
“Principal risks and uncertainties to which the <strong>UBI</strong> <strong>Banca</strong> Group is exposed” in the<br />
consolidated management report;<br />
- information on financial risks: see Part E “Information on risks and the relative<br />
hedging policies” and the section “Hierarchy of the fair value of financial instruments”<br />
in the notes to the financial statements;<br />
- information to be provided on impairment testing: see the report in section 11<br />
“property, plant and equipment” and section 12 “intangible assets” of the notes to the<br />
financial statements;<br />
20<br />
See the “List of IAS/IFRS standards approved by the European Commission” presented in Part A.1 of the notes to the<br />
consolidated financial statements. The standards listed there and the relative interpretations are applied on the<br />
basis of events occurring that are disciplined by them and the year from which they must be applied.<br />
535 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
- uncertainties on the use of estimates: see the sub-section “Use of estimates and<br />
assumptions in the preparation of the annual financial statements” of the section 5<br />
“Other aspects” in the notes to the consolidated financial statements.<br />
The information contained in them is expressed, unless otherwise indicated, in euro as the<br />
accounting currency and the financial information, the balance sheet and income statement,<br />
the notes and comments and the explanatory tables are presented in thousands of euro. The<br />
relative rounding of the figures has been performed on the basis of Bank of Italy instructions.<br />
Items for which there are no values for the current and the previous period have been omitted.<br />
The mandatory financial statements used in this annual report comply with those defined in<br />
Bank of Italy Circular No. 262/2005 and in addition to the accounts as at 31 st December<br />
2008, they also provide the same comparative information as at 31 st December 2007.<br />
As a result of the merger which became effective on 1 st April 2007, the comparative income<br />
statement to 31 st December 2007 presents the results for the period 1 st January-31 st<br />
December 2007 for the former BPU <strong>Banca</strong> Group and for the last three quarters of 2007 for<br />
the former <strong>Banca</strong> Lombarda e Piemontese Group. Since the figures presented in the<br />
comparative financial statements as at 31 st December 2007 are not fully comparable with the<br />
financial statements as at 31 st December 2008, pro-forma balance sheet and income<br />
statement figures have been prepared as at 31 st December 2007 to support the “management<br />
report”.<br />
That section also contains comments on the principal changes that occurred in the capital and<br />
financial situation during the reporting period.<br />
It should also be considered that <strong>UBI</strong> <strong>Banca</strong> contributed its service and support operations to<br />
<strong>UBI</strong> Sistemi e Servizi with effect from 1 st October 2007.<br />
The following changes have been made to the 2007 figures with respect to those published in<br />
the financial statements as at and for the year ended 31 st December 2007:<br />
in order to provide a more precise classification, reverse repurchase and repurchase<br />
agreements with an institutional counterparty were reclassified out of the item “loans<br />
to banks” into the item “loans to customers” (212 million euro) and out of “due to<br />
banks” and into “due to customers” (468 million euro);<br />
following instructions given by the Bank of Italy, statutory auditors remuneration (211<br />
thousand euro) was reclassified within administrative expenses out of item b) “other<br />
administrative expenses” into item a) “staff costs”;<br />
Accounting policies<br />
The accounting policies contained in Part A.2 concerning the classification, valuation and<br />
derecognition phases are essentially the same as those adopted for the preparation of the 2007<br />
annual financial statements.<br />
The accounting policies employed tend to apply the cost criterion with the exception of the<br />
following financial assets and liabilities, which are valued using the fair value criterion:<br />
financial instruments held for trading (including derivative products), financial instruments<br />
designated at fair value (in application of the fair value option) and available-for-sale financial<br />
instruments.<br />
To complete the information, non current assets available for sale (and the liabilities<br />
associated with them) have been recognised at the lower of the carrying amount and the fair<br />
value (net of sales costs).<br />
536 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 3 - Events occurring after the balance sheet date<br />
With regard to the provisions of IAS 10, subsequent to the balance sheet date as at 31 st<br />
December 2008 and until 24 th March 2009, the date on which the Annual Report was<br />
approved by the Management Board for submission to the Supervisory Board, no events<br />
occurred to make adjustments to the figures presented in the report necessary.<br />
We report the following for information purposes:<br />
- <strong>UBI</strong> <strong>Banca</strong> accepted, with the shares it held, accounting for 1,89% of the share capital, the<br />
voluntary public tender offer to purchase the total of the ordinary shares of Meliorbanca<br />
S.p.A. made by <strong>Banca</strong> Popolare dell’Emilia Romagna Soc. Coop. at a price of 3,20 euro per<br />
share. Following the public tender offer, which was concluded on 24 th February 2009, on<br />
3 rd March 2008 <strong>UBI</strong> <strong>Banca</strong> received payment of approximately 7,6 million euro with a gain<br />
of one million euro;<br />
- on 4 th March 2009, as part of an agreement signed by <strong>UBI</strong> <strong>Banca</strong>, Centrobanca and<br />
Medinvest International, <strong>UBI</strong> <strong>Banca</strong> purchased a further 32,4% stake in the share capital of<br />
IW Bank, held by the current management, at a price of 2,97 euro per share with normal<br />
dividend entitlement for a total price of approximately 70,9 million euro. The agreement<br />
also involved the purchase by Medinvest International of a stake in the share capital of IW<br />
Bank, which will in turn acquire a majority interest that may rise to 100% in the share<br />
capital of Twice SIM (a company which specialises in brokerage services and activities in<br />
capital markets and corporate finance for small to medium size enterprises), 59,3%<br />
controlled by Medinvest International;<br />
- on 13 th March 2009, <strong>UBI</strong> <strong>Banca</strong> subscribed to its quota (34,82%) of the first increase in the<br />
share capital decided by an extraordinary shareholders’ meeting of Banco di San Giorgio<br />
amounting to 68.385.750,28 euro, in order to strengthen its capital in consideration of its<br />
acquisition of operations from Intesa Sanpaolo, consisting of 13 branches located in the<br />
province of La Spezia.<br />
Section 4 - Other aspects<br />
In order to avoid reporting duplications, the section 5 “Other aspects” in the consolidated<br />
financial report may be consulted for aspects not specifically reported in the remaining part of<br />
this section, with the exception of the sub-section “Amendments to IAS 39” which follows.<br />
Accounting treatment for combinations between entities under common control<br />
In 2008 <strong>UBI</strong> <strong>Banca</strong> Scpa was involved in various transactions which for the purposes of the<br />
application of the accounting policies constitute mergers of businesses or entities under<br />
common control and as such are explicitly excluded from the application of the accounting<br />
standard IFRS 3 “Business combinations”. The accounting treatment applied is therefore<br />
based on recommendations contained in “Orientamenti preliminari Assirevi in tema IFRS” (OPI)<br />
(preliminary orientations on IFRS of the Italian National Association of Auditors) as explained<br />
in greater detail in Part A.1 – Section 5 “Other aspects” of the notes to the consolidated<br />
financial statements.<br />
Considering that at present there is no well established standard interpretation of the contents<br />
of the OPIs, especially with regard to the recognition of significant economic substance, in<br />
continuity with the practice followed for the 2007 annual report, it was considered appropriate<br />
to adopt a prudent approach by which in cases of higher values being found for operations<br />
under common control subject to merger transaction, these were recognised within a separate<br />
reserve in shareholders’ equity.<br />
We report the following with regard to individual transactions:<br />
• the contribution of the interest held in Capitalgest Alternative Investments SGR to <strong>UBI</strong><br />
Pramerica resulted in a gain recognised as an increase in equity reserves;<br />
537 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
• the portion of the proceeds resulting from the liquidation of Financiera Veneta EFC<br />
attributable to the gain on the sale of the operations to <strong>UBI</strong> <strong>Banca</strong> International was<br />
recognised as an increase in equity reserves;<br />
• the loss arising from the merger of the subsidiary Mercati Finanziari Sim was<br />
recognised as a reduction in equity reserves;<br />
• the interest held in FinanzAttiva Servizi purchased by <strong>UBI</strong> Pramerica and by<br />
Centrobanca was recognised at the fair value at the date of the transaction,<br />
corresponding to the price paid;<br />
• the sale of shares of <strong>UBI</strong> Sistemi e Servizi to Group member companies was<br />
performed for amounts less than the carrying value. The lower value that emerged was<br />
more appropriately charged to the income statement.<br />
Tax realignment of goodwill<br />
Decree Law No. 185 of 29 th November 2008, converted into Law No. 2 of 28 th January 2009 –<br />
urgent measures to support families, work, employment and businesses to reformulate the<br />
general national strategy on an anti-crisis basis – allows the adoption, under paragraphs 1 to<br />
15 of article 15, of an optional regime specifically for entities that comply with IAS-IFRS<br />
accounting standards. It realigns tax accounting values with financial accounting values for<br />
some assets if determined assumptions are met and is adopted by payment of a tax to<br />
substitute IRES (corporation tax) and IRAP (local production tax).<br />
The items to which this realignment may be applied includes goodwill not recognised for tax<br />
purposes arising from business combination transactions that are tax neutral (i.e. mergers,<br />
spin-offs and contributions of company operations). <strong>UBI</strong> <strong>Banca</strong> therefore decided to take<br />
advantage of this option with regard to the goodwill recognised when the purchase price<br />
allocation was performed in respect of the merger between the former BPU Group and the<br />
former <strong>Banca</strong> Lombarda e Piemontese Group (569 million euro approx.)<br />
The provisions of Decree Law No. 185 allow, on the one hand, the realignment of the tax value<br />
of the goodwill with the accounting value by payment of a substitute tax of 16% to be paid in<br />
2009 and, on the other hand, the off-balance sheet amortisation for IRES and IRAP purposes<br />
of the amount released at constant rates over nine years starting from the year after that on<br />
which the substitute tax just mentioned is paid.<br />
With particular regard to the accounting treatment described below, it must be considered<br />
that reference was made, in the absence of specific provisions in international accounting<br />
standards and pursuant to sections 11 and 12 of IAS 8, to the document issued by the Italian<br />
Accountants Association (Organismo Italiano di Contabilità), “Hypothesis for the accounting<br />
treatment for the substitute tax on the release of goodwill pursuant to Decree Law No. 185 of<br />
29 th November 2008 Art. 15 paragraph 10” which allows recognition of the substitute tax and<br />
of the relative deferred tax assets at the same time.<br />
The estimated amount for the relative substitute tax (16%), which will be paid in 2009, was<br />
therefore fully recognised in the accounts for 2008 and the full amounts for the deferred tax<br />
assets were recognised corresponding to nominal rates for IRES (27,5%) + IRAP (4,82%) =<br />
32,32%, against recognition of lower taxes.<br />
The income statement for 2008 recorded greater current taxation due to the substitute tax,<br />
amounting 91 million euro and lower taxation due to the deferred taxation amounting to euro<br />
184 million, with a net positive effect of 93 million euro arising from the difference between the<br />
substitute tax rate and the ordinary tax rate.<br />
538 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Amendments to IAS 39<br />
Amendments to IAS 39, “Financial instruments: recognition and measurement”, came into<br />
force with the publication of European Commission Regulation (EC) No. 1004/2008 in the<br />
Official Journal of the European Union No. 275 of 16 th October 2008 .<br />
These amendments are designed basically to allow some limited possibilities to reclassify<br />
financial assets classified within “financial assets held for trading” (i.e. assets recognised at<br />
fair value through profit and loss) within other categories, under determined conditions such<br />
as for example those of the current crisis on financial markets, in order to avoid measurement<br />
at fair value.<br />
These amendments are also to be seen as moving closer to the positions of the United States<br />
FASB which already allowed these possibilities under determined circumstances.<br />
More specifically the amendment to IAS 39 allows the following:<br />
1. in rare circumstances to reclassify any financial asset – except for derivative<br />
instruments – out of “financial assets held for trading” (asset item 20 in the balance<br />
sheet) into another class;<br />
2. to reclassify financial assets which possess the objective characteristics of “loans and<br />
receivables” where there is the intention to keep them for a foreseeable future period or<br />
until they mature, out of “financial assets held for trading” (asset item 20 on the<br />
balance sheet) and out of “available-for-sale financial assets” (asset item 40 on the<br />
balance sheet) into “loans and receivables” (i.e. “loans to banks” or “loans to<br />
customers” – asset items 60 and 70 on the balance sheet respectively.<br />
If made before 1 st November, the adjustments made on the basis of those amendments could<br />
be backdated to a date not prior to 1 st July using the prices quoted on that date. However,<br />
reclassifications performed since 1 st November 2008 are effective from the date on which they<br />
are performed.<br />
The provisions of IAS 39 which already allowed reclassifications out of “held-to-maturity<br />
financial assets” into “available-for-sale financial assets” and vice versa remain in force.<br />
As concerns all of the above and with specific regard to both the amendments to IAS 39 and to<br />
the guidelines on the application of the fair value criterion, as already reported in the<br />
consolidated quarterly report as at 30 th September 2008, <strong>UBI</strong> <strong>Banca</strong> considered that it had no<br />
need to use the options granted and therefore it has not performed any reclassifications of<br />
financial assets currently held in portfolio on the basis of the new provisions contained in IAS<br />
39.<br />
The valuation of financial instruments on markets considered “inactive”<br />
On 31 st October 2008, the IASB (International Accounting Standards Board) issued a press<br />
release in this respect entitled “IASB publishes educational guidance on the application of fair<br />
value measurement when markets become inactive”, providing guidelines on the application of<br />
fair value criteria.<br />
These guidelines are consistent with those already issued by the United States FASB<br />
(Financial Accounting Standards Board) and are designed to allow greater use of valuation<br />
techniques which are also based on assumptions made by management in the presence of<br />
prices formulated on markets that are considered inactive.<br />
In this case the fair value is calculated using a “mark-to-model” method, which are valuation<br />
techniques based on internal company estimates of future cash flows, discounted, for<br />
example, for liquidity risk and credit risk.<br />
In consideration of the characteristics of the Bank’s portfolio no use has been made of markto-model<br />
valuation techniques.<br />
539 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Hierarchy of the fair value of financial instruments<br />
The fair value used for measuring the value of financial instruments is determined on the<br />
basis of the hierarchy reported below.<br />
Quotations taken from active markets (level 1):<br />
the valuation is the market price of the instrument, i.e. the price quoted. A market is defined<br />
as active when the prices quoted reflect normal market transactions, are regularly and readily<br />
available and if those prices represent actual and regular market trading.<br />
Valuation methods based on observable market inputs (level 2):<br />
these methods are used when the instrument to be valued is not quoted on an active market.<br />
The valuation of the financial instrument is based on prices inferred from market quotations<br />
for similar assets or by using valuation techniques for which all the significant factors – credit<br />
spreads and liquidity spreads – are inferred from observable market variables. Although this is<br />
the application of a valuation technique, there is no element of discretion in the resulting<br />
price, because all the parameters used are drawn from markets and the calculation methods<br />
used replicate quotations existing on active markets.<br />
Valuation methods based on non observable market parameters (level 3):<br />
these methods consist of determining the price of an unlisted financial instrument by making<br />
substantial use of significant parameters not inferred from markets and which therefore<br />
involve the use of estimates and assumptions made by management.<br />
In detail:<br />
Securities (other than minority equity investments recognised in the AFS portfolio)<br />
69% of the securities recognised on the assets side of the balance sheet at fair value are listed<br />
on an active market (level 1), 15% are valued using the last available NAV (units in hedge<br />
funds and private equity funds), while the remaining 16% is calculated using methods based<br />
on observable market inputs (level 2).<br />
Derivatives<br />
Almost all the derivative instruments recognised within financial assets and liabilities held for<br />
trading consist of over the counter derivatives.<br />
These instruments are valued using internal models which employ market inputs.<br />
The remaining derivative instruments recognised within the trading portfolios are listed on<br />
active markets.<br />
No use is made in the valuation of securities and derivatives of methods based on non<br />
observable market parameters (level 3). No change in these valuation methods has been made<br />
with respect to 31 st December 2007.<br />
Minority equity investments recognised within the AFS portfolio<br />
Approximately 80% of minority equity investments recognised in the balance sheet within<br />
“available-for-sale assets” are valued on the basis of market prices (level 1), 15% are valued<br />
using valuation methods which considers transactions which occurred in the security within a<br />
period of time considered reasonably close enough to the valuation date and, in some cases,<br />
by using market multiple methods for comparable companies (level 2), while approximately 5%<br />
are valued using methods based on fundamentals analysis of the company (level 3).<br />
Shareholdings carried at cost account for a very negligible proportion of the total.<br />
Information on the valuation models used for securities and derivatives<br />
The target instrument used for pricing securities and derivatives in the <strong>UBI</strong> Group is the<br />
software application Mxg2000 by Murex. This software takes account of all market factors in<br />
measuring the value of financial instruments.<br />
540 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The majority of the market data is acquired through the information provider Reuters, partly in<br />
real time (i.e. prices, yield curves and exchange rates) and partly at preset times (ATM volatility<br />
for swaptions and ATM volatility and smile curves for caps and floors). The application is also<br />
fed “on demand” with a series of market parameters supplied by the provider Bloomberg:<br />
correlations, dividend yields, index and forex volatility.<br />
Fair value is calculated daily as follows:<br />
the market parameters acquired in real time by Mxg2000 (prices, yield curves and<br />
exchange rates) are crystallised at 4.45 p.m. and used as reference data for calculating<br />
the mark-to-market. The last update of the day for the volatilities of swaptions and<br />
caps/floors (and the other market data acquired on demand if necessary) is performed<br />
at 4.45 p.m.;<br />
at the end of the day closure (which occurs at 9.00 p.m.), a series of software<br />
procedures are performed which extract various information from Mxg2000 including<br />
the reference mark-to-market for the day.<br />
Securities<br />
The pricing of unlisted securities is currently calculated using the software application Risk<br />
Watch by Algorithmics, before the full migration of Group portfolios onto the Mxg2000 Front<br />
Office target system takes place. These are bonds for which the future cash flows are<br />
discounted to present values using interest rates which take into account the specific nature<br />
of the issuer (rating, business sector and the currency in which the instrument is<br />
denominated).<br />
Derivatives<br />
Input data is fed into Mxg2000 on all OTC interest rate and exchange rate derivative<br />
instruments and on derivative instruments to hedge bonds and ALM (with interest rate, equity<br />
and exchange rate as the underlying).<br />
Values are measured for all contracts which can be priced using closed formula models. In<br />
detail, the main pricing models used in Mxg2000 for OTC derivatives are: Black Yield, Black<br />
Fwd, Black Swap Yield, Cox Fwd, Trinomial, Lnormal and CMS Convexity Analytical.<br />
Derivative instruments that are not managed in Murex, used to hedge structured bonds, are<br />
valued using internal models (stochastic models with MonteCarlo simulations).<br />
Part E - market risks may be consulted for the results of sensitivity analyses and stress tests.<br />
541 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.2 – MAIN BALANCE SHEET ITEMS<br />
1. Financial assets and liabilities held for trading and financial<br />
assets and liabilities at fair value<br />
This category includes:<br />
1.1. Definition of financial assets and liabilities held for trading<br />
A financial asset or liability is classified as held for trading (at fair value through profit or loss<br />
– FVPL) and is stated under either item 20 “Financial assets held for trading” or item 40<br />
“Financial liabilities held for trading”, if it is:<br />
<br />
<br />
<br />
acquired or incurred for sale or repurchase in the short term;<br />
part of a portfolio of identified financial instruments which are managed together and for<br />
which there is evidence of a recent and effective strategy of short term profit taking;<br />
a derivative (except for derivatives designated and effective as a hedging instrument – see<br />
the dedicated paragraph below).<br />
The Bank has recognised bonds held for trading and repurchase agreements, ABS<br />
instruments issued for securitisation operations and equity instruments held for trading<br />
within “Financial assets held for trading”. They also include units in hedge funds purchased<br />
prior to 1 st July 2007 as well as equity instruments owned, other than those classified as<br />
controlled or held for merchant banking and private equity activities.<br />
1.1.1. Derivative financial instruments<br />
A “derivative” is defined as a financial instrument or other contract with the following<br />
characteristics:<br />
<br />
<br />
<br />
its value changes in response to the change in an interest rate, in the price of a financial<br />
instrument, in a commodity price, in a foreign currency exchange rate, in a price, interest<br />
rate or credit rating index, or credit worthiness index or other specific variable;<br />
it requires no initial investment, or a net initial investment that is smaller than would be<br />
required for other types of contract from which a similar response to changes in market<br />
factors would be expected;<br />
it is settled at a future date.<br />
The Bank holds derivative financial instruments for both trading and for hedging purposes<br />
(see the relative section below for information on the latter). All derivatives held for trading are<br />
stated initially at fair value which generally is the same as cost. Subsequently derivative<br />
contracts are stated at fair value, which is the value that the Bank would pay or receive if it<br />
terminated the derivative contract at the date of valuation. Each change measured in the fair<br />
value is recognised in the income statement within the item 80 “Net profit (loss) on trading”.<br />
The fair value of derivatives is measured by applying the methods described in the section<br />
below “Valuation Criteria”.<br />
1.1.2. Embedded derivative financial instruments<br />
An "embedded derivative financial instrument" is defined as a component of a hybrid<br />
(combined) instrument which also includes a “host” non derivative contract such that some of<br />
the cash flows of the combined instrument behave in a way similarly to the derivative as a<br />
stand-alone instrument. The implicit derivative is separated from the host contract and treated<br />
in the accounts as a stand-alone derivative if and only if:<br />
the economic risks and characteristics of the embedded derivative are not closely related to<br />
the economic risks and characteristics of the host contract;<br />
a separate instrument with the same conditions as the embedded derivative would satisfy<br />
the definition of a derivative;<br />
542 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
the hybrid (combined) instrument is not recognised within financial assets or liabilities<br />
held for trading<br />
The fair value of separated derivatives is measured by applying the methodology described in<br />
the section below “Valuation criteria”.<br />
1.2. Definition of financial assets and liabilities at fair value<br />
Financial assets and liabilities may be designated on initial recognition under “financial assets<br />
and liabilities at fair value” and recorded under items 30 “Financial assets held at fair value”<br />
and 50 “Financial liabilities at fair value”.<br />
A financial asset/liability is designated at fair value through profit or loss on initial recognition<br />
only when:<br />
a) it is a hybrid contract containing one or more embedded derivatives and the embedded<br />
derivative significantly alters the cash flows that would otherwise be generated by the contract;<br />
b) the designation at fair value through profit or loss allows better information to be provided<br />
because:<br />
it eliminates or considerably reduces an asymmetry in the valuation or in the<br />
recognition, which would otherwise result from the valuation of assets or liabilities or<br />
from recognition of the relative profits and losses on a different basis;<br />
a group of financial assets, financial liabilities or of both is managed and its<br />
performance is valued on the basis of its fair value according to a documented risk<br />
management procedure or investment strategy and the information on the group is<br />
provided internally on that basis to senior managers with strategic responsibilities.<br />
The Bank has placed existing capitalisation policies in the category “financial assets at fair<br />
value” because they are hybrid contracts containing embedded derivatives which significantly<br />
alter the contractual cash flows otherwise generated by the host contract.<br />
Units in hedge funds purchased subsequent to 1 st July 2007 are also subjected to the fair<br />
value option because they represent a portfolio of assets managed in a unified manner for<br />
which the performance is valued on the basis of its fair value according to a documented<br />
investment or risk management strategy.<br />
1.3. Recognition criteria<br />
The financial instruments “Financial assets and liabilities held for trading and financial assets<br />
at fair value” are recognised at the time of settlement if they are debt securities or equity<br />
instruments or at the trade date if they are derivative contracts and they are valued at cost,<br />
intended as meaning the fair value of the instrument without considering any transaction<br />
costs or income directly attributable to the instruments themselves.<br />
1.4. Valuation criteria<br />
Subsequent to initial recognition, the financial instruments in question are measured at fair<br />
value with changes recognised in the income statement under item 80 “Net profit (loss) on<br />
trading”, for assets/liabilities held for trading and under item 110 “Net profit (loss) on financial<br />
assets and liabilities at fair value” for financial assets/liabilities at fair value. The<br />
measurement of the fair value of the assets and liabilities held in a trading portfolio is based<br />
on prices quoted on active markets or on internal valuation models which are generally used<br />
in financial practice and are described below.<br />
1.4.1. Methods of measuring fair value<br />
1.4.1.1. Securities: listed and not listed<br />
For securities listed on active markets, the measurement of fair value is based on prices<br />
quoted on the relative market (that on which the greatest volume of trading occurs) as<br />
543 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
obtained from international providers and registered on the last day of the financial year or<br />
reference period. A market is defined as an active market if the prices quoted reflect normal<br />
market transactions, are readily and regularly available and represent actual and regularly<br />
occurring market transactions.<br />
Hedge funds are valued on the basis of the official end of period NAV. In its absence, the last<br />
available NAV is used prudentially adjusted if external observations show evidence of lower<br />
values.<br />
For unlisted securities fair value is measured by using valuation techniques that measure the<br />
price that an instrument would have had at the valuation date in a free transaction motivated<br />
by normal market considerations. Measurement of the fair value is performed by applying<br />
methods commonly used on international markets and also internal valuation models. More<br />
specifically, for unlisted bonds, models which discount expected future cash flow to present<br />
value (using interest rates that take proper consideration of the sector that the issuer operates<br />
in and the rating class where available) and price option models are used. For equity<br />
instruments, prices based on comparable transactions, the market multiples of directly<br />
comparable companies and capital, income and mixed valuation models are used.<br />
1.4.1.2. Derivatives: listed and unlisted<br />
For listed derivatives the measurement of fair value is based on prices taken from active<br />
markets. For unlisted derivatives the fair value is measured by using models which discount<br />
future cash flows to present value and which are also weighted for the credit risk associated<br />
with the financial instrument. For derivatives traded with institutional counterparties, this<br />
risk is considered virtually nil because of compensation agreements (CSA) designed to<br />
minimise credit risk.<br />
1.4.1.3. Private Equity and Merchant Banking Interests<br />
For equity instruments not classified as held for control, but held for merchant banking and<br />
private equity activities, the measurement of fair value is performed by using methods<br />
commonly accepted in market practice. For equity instruments held in listed companies, the<br />
last available and significant price quoted in the period is used; for unlisted companies resort<br />
is made to prices inferred from recent transactions concerning assets similar to those that are<br />
being valued, market multiples of directly comparable companies or capital, income and mixed<br />
valuation models.<br />
1.5. Derecognition criteria<br />
“Financial assets and liabilities held for trading and financial assets at fair value” are<br />
derecognised in the accounts when the rights to the cash flows from the financial assets or<br />
liabilities expire or when the financial assets or liabilities are transferred with the substantial<br />
transfer of all the risks and rewards deriving from ownership of them. The result of the<br />
transfer of financial assets or liabilities held for trading is recognised in the income statement<br />
under item 80 “Net profit (loss) on trading”, while the result of the transfer of financial assets<br />
or liabilities at fair value is recognised under item 110 “Net profit (loss) on financial assets and<br />
liabilities at fair value”.<br />
544 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2. AVAILABLE-FOR-SALE FINANCIAL ASSETS<br />
2.1. Definition<br />
Available-for-sale financial assets (AFS) are defined as non-derivative financial assets<br />
designated on initial recognition as such or that are not classified as:<br />
(1) loans and receivables (see section below);<br />
(2) financial assets held until maturity (see section below);<br />
(3) financial assets held for trading and measured at fair value recognised in the income<br />
statement (see previous section).<br />
These financial assets are recognised within item 40 “Available-for-sale financial assets”.<br />
The Bank has classified asset-swapped bonds, securities in US dollars, bonds and funds<br />
belonging to the “strategic portfolio” and equity instruments not classified as subsidiaries,<br />
companies subject to joint control or associates not held for merchant banking and private<br />
equity activities in this category.<br />
2.2. Recognition criteria<br />
Available-for-sale financial assets are recognised initially when, and only when, the company<br />
becomes a party in the contract clauses of the instrument and that is on the date of<br />
settlement, at fair value which generally coincides with the cost of them. This value includes<br />
costs or income directly connected with the instruments themselves.<br />
The recognition of available-for-sale financial assets may result also from the reclassification<br />
out of “held-to-maturity financial assets” or, but only in rare circumstances and in any case<br />
only if the asset is no longer held for sale or repurchase in the short term, out of “financial<br />
assets held for trading”; in these cases the recognition value is the same as the fair value at<br />
the moment of reclassification.<br />
2.3. Valuation criteria<br />
Subsequent to initial recognition, available-for-sale financial assets continue to be recognised<br />
at fair value with interest (resulting from application of the amortised cost) recognised in the<br />
income statement and changes in fair value recognised in shareholders’ equity within item 130<br />
“valuation reserves”, except for losses due to a decrease in value, until the financial asset is<br />
derecognised, at which time the profit or loss previously recognised in shareholders’ equity<br />
must be recognised in the income statement. Equity instruments for which the fair value<br />
cannot be reliably measured according to the methods described are recognised at cost.<br />
At the end of each financial year or interim reporting period, objective evidence of impaired<br />
value is assessed, which in the case of equity instruments is also held to be significant or<br />
prolonged. If there is permanent impairment, the cumulative change, including that previously<br />
recognised in equity under the aforementioned item, is recognised directly in the income<br />
statement within item 130 “net impairment losses on b) available-for-sale financial assets”.<br />
Permanent impairment is recognised when the acquisition cost (net of any repayments of<br />
principal and amortisation) of an available-for-sale financial asset exceeds its recoverable<br />
amount. Any recoveries of value, which are only possible when the causes of the original<br />
permanent impairment no longer exist are treated as follows:<br />
<br />
<br />
if they relate to investments in equity instruments, with a balancing entry directly in the<br />
shareholders’ equity reserve;<br />
if they relate to investments in debt instruments, they are recognised in the income<br />
statement under item 130 “Net impairment losses on b) available-for-sale financial assets”.<br />
The amount of the recovery in value may not in any case exceed the amortised cost which, in<br />
the absence of previous value adjustments, the instrument would have had at that time.<br />
545 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The recovery value of investments in listed equity instruments is measured on the basis of the<br />
market price should the decrease observed reach such a low level that a recovery is not<br />
reasonably expected in the foreseeable future. The recoverable amount for unlisted equity<br />
instruments is measured by applying internationally accepted valuation techniques. The<br />
standard method applied is based on observations of the earnings multiples of similar<br />
companies found on the market.<br />
2.3.1. Methods of measuring fair value<br />
See the sub section on “Financial assets and liabilities held for trading and financial assets at<br />
fair value”.<br />
2.4. Derecognition criteria<br />
Available for sale financial assets are derecognised in the accounts when the contractual<br />
rights to the cash flows from the financial assets expire or when the financial assets are sold<br />
with the substantial transfer of all the risks and benefits deriving from ownership of them. The<br />
result of the disposal of available-for-sale financial assets is recognised in the income<br />
statement under item 100 “Profit (loss) on the disposal or repurchase of b) available for sale<br />
financial assets”. Upon derecognition any corresponding amount of what was previously<br />
recognised in equity under “130 valuation reserves” is written off against the income<br />
statement.<br />
3. HELD-TO-MATURITY FINANCIAL ASSETS<br />
3.1. Definition<br />
Held-to-maturity financial assets (HTM) are defined as non derivative financial assets with<br />
fixed or determinable payments and fixed maturity that an entity intends and is able to hold to<br />
maturity. Exception is made for those:<br />
(a) held for trading and those designated upon initial recognition at fair value through profit<br />
or loss (see previous section);<br />
(b) designated as available for sale (see previous section);<br />
(c) which satisfy the definition of loans (see section below).<br />
When annual and interim reports are prepared the intention and ability to hold financial<br />
assets until maturity is assessed.<br />
The assets in question are recognised under item 50 “Held-to-maturity financial assets”.<br />
3.2. Recognition criteria<br />
Held-to-maturity financial assets are recognised initially when, and only when, the company<br />
becomes a party in the contract clauses of the instrument and that is on the date of<br />
settlement, valued at cost inclusive of any costs and income directly attributable to it. If the<br />
recognition of assets in this category is the result of the reclassification out of “available-forsale<br />
financial assets” or, but only and only in rare circumstances if the asset is no longer held<br />
for sale or repurchase in the short term, out of the “financial assets held for trading”, the fair<br />
value of the assets as measured at the time of the reclassification is taken as the new measure<br />
of the amortised cost of the assets.<br />
546 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
3.3. Valuation criteria<br />
Held-to-maturity financial assets are valued at amortised cost using the criteria of the effective<br />
interest rate (see the section below “loans and receivables” for a definition). The result of the<br />
application of this method is recognised in the income statement within the item 10 “Interest<br />
and similar income”.<br />
When annual financial statements or interim reports are prepared objective evidence of the<br />
existence of an impairment of the value of the assets is assessed. If there is permanent<br />
impairment, the difference between the recognised value and the present value of expected<br />
future cash flows discounted at the original effective interest rate is included in the income<br />
statement under the item 130 “Net impairment losses on c) held-to-maturity financial assets”.<br />
Any recoveries of value recorded, should the cause that gave rise to the previous value<br />
adjustments no longer exist, are recognised under the same item in the income statement.<br />
3.3.1. Methods of measuring fair value<br />
The fair value of held-to-maturity investments is given for the sole purpose of information. A<br />
description of the measurement is given in the section “Financial assets and liabilities held for<br />
trading and financial assets and liabilities at fair value”. For effective hedging of currency risk<br />
or of loans, the fair value is calculated in relation to the risk that is hedged for valuation<br />
purposes.<br />
3.4. Derecognition criteria<br />
Held-to-maturity financial assets are derecognised when the rights to the cash flows from the<br />
financial assets expire or when the financial assets are sold with the substantial transfer of all<br />
the risks and rewards deriving from ownership of them. The result of the disposal of held-tomaturity<br />
financial assets is recognised in the income statement under the item 100 “Profit<br />
(loss) on the disposal or repurchase of c) held-to-maturity financial assets”.<br />
4. LOANS AND RECEIVABLES<br />
4.1. Definition<br />
Loans and receivables (L&R) are defined as non-derivative financial assets with fixed or<br />
determinable payments that are not quoted in an active market. The following are exceptions:<br />
(a) those which it is intended to sell immediately or in the short term, that are classified as<br />
held for trading and those that may have been designated on initial recognition as at fair<br />
value through profit or loss;<br />
(b) those designated upon initial recognition as available for sale;<br />
(c) those for which the holder may not recover substantially all of its initial investment, other<br />
than because of credit deterioration; in this case they are classified as available-for-sale.<br />
Loans and receivables are recognised under the items 60 “Loans and receivables to banks” and<br />
70 “Loans to customers”.<br />
The Bank includes lending to customers and banks among loans whether granted directly or<br />
acquired from third parties. Commercial lending, repurchase agreements, interest bearing<br />
postal bonds and debt instruments issued by companies in the <strong>UBI</strong> Group fall within this<br />
category.<br />
547 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
4.2. Recognition criteria<br />
Loans are initially recognised in the accounts when the company becomes part of a loan<br />
contract, which is to say when the creditor acquires the right to the payment of the sums<br />
agreed in the contract. That moment corresponds to the date on which the loan is granted.<br />
Recognition in this category may result also from the reclassification out of “available-for-sale<br />
financial assets” or, but only and only in rare circumstances if the asset is no longer held for<br />
sale or repurchase in the short term, out of “financial assets held for trading”.<br />
The value initially recognised is that of the fair value of the financial instrument which is the<br />
same as the amount granted inclusive of costs or income directly attributable to it and<br />
determinable from the outset, independently of when they are paid. The value of the initial<br />
recognition does not include all those costs that are reimbursed by the debtor counterparty or<br />
that are attributable to internal costs of an administrative character.<br />
If the recognition is the result of reclassification, the fair value of the asset recognised at the<br />
time of the reclassification is taken as the new measure of the amortised cost of the assets.<br />
For loans not granted under market conditions, the initial fair value is calculated by using<br />
special valuation techniques described below; in these circumstances the difference between<br />
the fair value that is calculated and the amount granted is included directly in the income<br />
statement under the item interest.<br />
Contango and repo agreements with the obligation or right to repurchase or resell at term are<br />
recognised in the accounts as funding or lending transactions. For transactions with a spot<br />
sale and forward repurchase, the spot cash received is recognised in the accounts as<br />
borrowings while the spot purchase transactions with forward resale are recognised as lending<br />
for the spot amount paid.<br />
4.3. Valuation criteria<br />
Loans and receivables are valued at amortised cost using the criteria of effective interest.<br />
The amortised cost of a financial asset or financial liability is the amount at which the<br />
financial asset or financial liability was measured upon initial recognition net of principal<br />
repayments, plus or minus the cumulative amortisation using the effective interest criterion<br />
on any difference between that initial amount and the maturity amount, and minus any<br />
reduction (arising from an impairment or uncollectability).<br />
The effective interest criterion is a method of calculating amortised cost of an asset or liability<br />
(or group of assets and liabilities) and of distributing the interest income or expense over its<br />
relative life. The effective interest rate is the rate that exactly discounts the estimated flow of<br />
future cash payments or receipts until the expected maturity of the financial instrument. To<br />
determine the effective interest rate, the cash flows must be estimated taking into<br />
consideration all the contractual conditions of the financial instrument (e.g. payment in<br />
advance, a purchase option or similar), but future impairments of the loan are not considered.<br />
The computation includes all fees and basis points paid or received between parties to the<br />
contract which are integral parts of the effective interest, the transaction costs and all other<br />
premiums or discounts.<br />
At each balance sheet date or when interim reports are prepared any objective evidence that a<br />
financial asset or group of financial assets has suffered impairment in value is assessed. This<br />
circumstance is repeated when it is probable that a company may not be able to collect<br />
amounts due on the basis of the original contracted conditions or, for example, in the presence<br />
of:<br />
(a) significant financial difficulties of the issuer or debtor;<br />
(b) a violation of the contract such as default or failure to pay interest or repay principal;<br />
(c) the lender, because of the economic or legal factors relating to the financial difficulties of<br />
the debtor, granting a concession to the latter which the lender would not otherwise have<br />
considered;<br />
(d) the probability of the beneficiary declaring procedures for loan restructuring;<br />
(e) the disappearance of an active market for that financial asset due to financial difficulties;<br />
548 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
(f) available data which indicate a substantial decrease in expected future cash flows for a<br />
similar group of financial assets since the time of the initial recognition of those assets,<br />
although the decrease cannot yet be identified with the individual financial assets in the<br />
group.<br />
The valuation of non performing loans (loans which, according to Bank of Italy definitions, are<br />
non performing, impaired, restructured and past due) is performed on a case-by-case basis.<br />
The remaining loans are valued using, collective, statistical methods which group uniform<br />
classes of risk together.<br />
The methods for determining the write-downs to be made to non performing loans are based<br />
on discounting expected future cash flows for principal and interest, taking account of any<br />
guarantees attached to positions and of any advances received. The basic elements for<br />
determining the present value of cash flows are the identification of the estimated receipts, the<br />
relative maturity dates and the discount rate to apply. The entity of the loss is equal to the<br />
difference between the recognised value of the asset and the present value of expected future<br />
cash flows, discounted back at the original effective interest rate.<br />
The statistical, collective, method is also applied to exposures subject to country risk and that<br />
is loans without guarantees to residents in countries which have difficulty in servicing their<br />
debts. These loans do not include impaired exposures for which the case-by-case valuation<br />
mentioned above is applied.<br />
The valuation of performing loans (including exposures subject to country risk) relates to asset<br />
portfolios for which no objective evidence of impairment exists and which are therefore valued<br />
collectively. Percentage rates of loss calculated from historical statistics are applied to the<br />
estimated cash flows from the assets, grouped into uniform classes with similar characteristics<br />
in terms of credit risk.<br />
If a loan is subject to individual valuation and shows no objective loss of value, it is placed in a<br />
class of financial assets with similar credit risk characteristics and subjected to collective<br />
valuation.<br />
Permanent impairment that is found is immediately recognised in the income statement under<br />
the item 130 “Net impairment losses on a) loans” as are recoveries of part or all of the amounts<br />
previously written down. Recoveries in value are recognised where there is an improvement in<br />
credit quality sufficient to provide reasonable certainty of prompt collection of the principal<br />
and the interest according to the original conditions of the original loan contract, or in the<br />
presence of a progressive reversal of the present value calculated at the time of recognising the<br />
impairment. Where loans are valued on a collective basis, any upward value adjustments or<br />
recoveries in value are recalculated as differences in relation to each performing loan at the<br />
valuation date.<br />
4.3.1. Methods of measuring fair value<br />
The fair value of loans is measured by considering future cash flows discounted at the<br />
replacement rate or the market rated existing at the valuation date and relating to a position<br />
with the same characteristics as the loan valued.<br />
The fair value is measured for all loans for information purposes only. For loans subject to<br />
effective hedging, the fair value is calculated in relation to the risk that is hedged for valuation<br />
purposes.<br />
4.4. Derecognition criteria<br />
Loans are derecognised on the balance sheet when the rights to the cash flows from the<br />
financial assets expire or when the financial assets are sold with the substantial transfer of all<br />
the risks and rewards deriving from ownership of them. Otherwise loans continue to be<br />
recognised on the balance sheet for an amount equal to the remaining involvement, even if<br />
legal title has been transferred to a third party.<br />
549 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The assets in question are derecognised on the balance sheet even when the Bank maintains<br />
the contractual right to receive cash flows from them, but when at the same time it has a<br />
contractual obligation to pay those cash flows to a third party.<br />
The profit or loss on the disposal of loans is recognised in the income statement under the<br />
item 100 “Profit (loss) on the disposal or repurchase of a) Loans and receivables”.<br />
5. HEDGING DERIVATIVES<br />
5.1. Definition<br />
Hedging transactions are designed to neutralise potential losses on a specific item (or group of<br />
items) attributable to a determined risk, by means of the gains realised on another instrument<br />
or group of instruments if that particular risk should actually result in losses.<br />
The Bank uses the following type of hedging transactions, appropriately represented in the<br />
accounts and described below:<br />
<br />
<br />
a fair value hedge: the objective is to offset adverse changes in the fair value of the asset or<br />
liability hedged;<br />
a cash flow hedge: the objective is to hedge against the exposure to variability in expected<br />
cash flows with respect to the initial expectations.<br />
Only derivative contracts with an external counterparty are designated as hedging<br />
instruments.<br />
5.2. Recognition criteria<br />
As with all derivatives, derivative financial instruments used for hedging are initially<br />
recognised and subsequently measured at fair value and are classified in the balance sheet on<br />
the assets side under item 80 “Hedging derivatives” and on the liabilities side under item 60<br />
“Hedging derivatives”.<br />
A relationship qualifies as a hedge and is appropriately represented in the accounts if, and<br />
only if, all the following conditions are satisfied:<br />
<br />
<br />
<br />
<br />
<br />
at the beginning of the hedging operation the relationship is formally designated and<br />
documented, including the company’s risk management objective and strategy for<br />
undertaking the hedge. This documentation includes identification of the hedging<br />
instrument, the item or transaction hedged, the nature of the risk being hedged, and how<br />
the entity will assess the hedging instrument's effectiveness in offsetting the exposures to<br />
changes in the fair value of the item hedged or in the cash flows attributable to the risk<br />
hedged;<br />
the hedging is expected to be highly effective;<br />
the planned transaction hedged, for hedging cash flows, is highly probable and presents an<br />
exposure to changes in cash flows that could have effects on the income statement;<br />
the effectiveness of the hedging can be reliably measured;<br />
the hedging is measured on an ongoing basis and is considered highly effective for all the<br />
financial years in which it was designated.<br />
5.2.1. Methods for testing effectiveness<br />
A hedge relationship is judged effective, and as such is appropriately represented in the<br />
accounts, if at its inception and during its life the changes in the fair value or cash flows of the<br />
hedged item attributable to the hedged risk are almost always completely offset by the changes<br />
in the fair value or cash flows of the hedging instrument. This conclusion is reached when the<br />
actual result falls within a range of between 80% and 125%.<br />
550 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The effectiveness of hedging is tested at inception by means of a prospective test and when<br />
annual reports are prepared by means of a retrospective test; the outcome of the test justifies<br />
the application of hedge accounting because it demonstrates its expected effectiveness.<br />
Retrospective tests are conducted monthly on a cumulative basis where the objective is to<br />
measure the degree of effectiveness of the hedging in the reporting period and therefore to<br />
verify whether the hedging has actually been effective in the period.<br />
Derivative financial instruments that are considered hedges from a profit and loss point of<br />
view but which do not satisfy the requirements to be considered effective instruments for<br />
hedging are recognised under item 20 “Financial assets held for trading” or under item 40<br />
“Financial liabilities held for trading” and the profits and losses under the corresponding item<br />
80 “Profit (loss) on trading”.<br />
See the section “financial assets and liabilities held for trading” and “financial assets and<br />
liabilities at fair value” for a description of the methods used to calculate the fair value of<br />
derivatives.<br />
5.3. Valuation criteria<br />
5.3.1. Fair value hedging<br />
Fair value hedging is treated as follows:<br />
<br />
<br />
the profit or loss resulting from measuring a hedging instrument at fair value is included in<br />
the income statement under item 90 “Profit (loss) on hedging activity”;<br />
the profit or loss on the item hedged attributable to the hedged risk adjusts the value in<br />
the accounts of the hedged item and is recognised immediately, regardless of the type of<br />
asset or liability hedged, in the income statement under the aforementioned item.<br />
Hedge accounting is discontinued prospectively in the following cases:<br />
1. the hedging instrument expires or is sold, terminated, or exercised;<br />
2. the hedge no longer meets the hedge accounting criteria described above;<br />
3. the entity revokes the designation.<br />
In case 2, if the assets or liabilities hedged are valued at amortised cost, the higher or lower<br />
value resulting from valuing them at fair value as a result of the hedge becoming ineffective is<br />
recognised in the income statement, according to the effective interest rate method prevailing<br />
at the time of revocation of hedge.<br />
The methods used for measurement of the fair value of the risk hedged in the assets or<br />
liabilities hedged are described in the notes that comment on available-for-sale financial<br />
assets, loans and held-to-maturity financial assets<br />
5.3.2. Cash flow hedging<br />
When a derivative instrument is designated as a hedge of exposure to changes in expected<br />
cash flows from an asset or liability in the balance sheet or a future transaction considered<br />
highly probable, the accounting treatment of the hedge is as follows:<br />
<br />
<br />
<br />
the profits or losses (from the valuation of the hedging derivative) attributable to the<br />
effective portion of the hedge are recognised in a special reserve in equity named 130<br />
“Valuation reserves”;<br />
the profits or losses (from valuation of the hedging derivative) attributable to the ineffective<br />
portion of the hedge are recognised directly in the income statement under item 90 “Profits<br />
(losses) on hedging activity”;<br />
the asset or liability hedged is valued according to the class of asset or liability to which it<br />
belongs.<br />
If a future transaction occurs which involves recognising non financial assets and liabilities,<br />
the corresponding profits or losses initially recognised under item 130 “Valuation reserves” are<br />
then transferred from that reserve and included as an initial cost of the asset or liability that is<br />
recognised. If the future hedged transaction subsequently involves recognition of a financial<br />
asset or liability, the associated profits or losses that were originally recognised under the item<br />
551 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
130 “Valuation reserves” are reclassified to the income statement in the same reporting period<br />
or periods during which the assets acquired or liabilities incurred have an effect on the income<br />
statement. If a portion of the profits or losses recognised in the valuation reserve are not<br />
considered recoverable, it is reclassified to the income statement under item 80 “Profits<br />
(losses) on trading”.<br />
In all cases other than those already described, the profits or losses initially recognised under<br />
the item “130 Valuation reserves” are transferred to the income statement to reflect the time<br />
and manner in which the future transaction is recognised in the income statement.<br />
An entity must discontinue hedge accounting prospectively in each of the following<br />
circumstances:<br />
(a) the hedging instrument expires or is sold, terminated, or exercised (for this purpose the<br />
replacement or exchange of one hedging instrument with another hedging instrument is<br />
not a conclusion or termination if that replacement or exchange forms part of an entity’s<br />
documented hedging strategy). In this case the total profit (or loss) on the hedging<br />
instrument continues to be recognised directly in shareholders’ equity until the reporting<br />
period in which the hedge became effective and it continues to be recognised separately<br />
until the programmed hedging transaction occurs;<br />
(b) the hedge no longer satisfies the criteria for hedge accounting. In this case the total profit<br />
or loss on the hedging instrument continues to be recognised directly in shareholders’<br />
equity starting from the reporting period in which the hedge became effective and it<br />
continues to be recognised separately in equity until the programmed hedging transaction<br />
occurs;<br />
(c) it is no longer considered that the future transaction should occur, in which case any<br />
related total profit or loss on the hedging instrument recognised directly in shareholders’<br />
equity starting from the reporting period in which the hedge became effective must be<br />
recognised in profit or loss;<br />
(d) the entity revokes the designation. For hedges of a programmed transaction, total profits or<br />
losses on the hedging instrument recognised directly in shareholders’ equity starting from<br />
the reporting period in which the hedge became effective continues to be recognised<br />
separately in equity until the programmed transaction occurs or it is expected that it will<br />
no longer occur.<br />
If it is expected that the transaction will no longer occur, the total profit (or loss) that had been<br />
recognised directly in equity is transferred to the income statement.<br />
5.3.3. Hedging portfolios of assets and liabilities<br />
Hedging of portfolios of assets and liabilities (“macrohedging”) and appropriate accounting<br />
treatment is possible after first:<br />
- identifying the portfolio to be hedged and dividing it by maturity dates;<br />
- designating the risk to be hedged;<br />
- identifying the interest rate risk to be hedged;<br />
- designating the hedging instruments;<br />
- determining the effectiveness.<br />
The portfolio for which the interest rate risk is hedged may contain both assets and liabilities.<br />
This portfolio is divided on the basis of expected maturity or repricing dates of interest rates<br />
after first analysing the structure of the cash flows.<br />
Changes in the fair value of the hedged instrument are recognised in the income statement<br />
under item 90 “Profits (losses) on hedging” and in the balance sheet under item 90 “Fair value<br />
change in hedged financial assets” or under item 70 “Fair value change in hedged financial<br />
liabilities”.<br />
552 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Changes occurring in the fair value of the hedging instrument are recognised in the income<br />
statement under item 90 “Profits (losses) on hedging” and on the assets side of the balance<br />
sheet under item 80 “Hedging derivatives” or on the liabilities side under 60 “Hedging<br />
derivatives”.<br />
6. EQUITY INVESTMENTS<br />
6.1. Definition<br />
6.1.1. Subsidiaries<br />
A “subsidiary” is defined as a company over which the Parent Bank exercises control. Such a<br />
condition occurs when the latter has the power to govern, directly or indirectly the<br />
management and operational decisions of an enterprise so as to obtain benefits from its<br />
activities. The existence of potential immediately exercisable voting rights is assessed to<br />
determine the presence of control. Equity investments in controlled companies are valued<br />
using the cost method.<br />
6.1.2. Associates<br />
An “associate” is defined as a company in which at least 20% of the voting rights are held or<br />
over which the investing company exercises significant influence and which is neither a<br />
subsidiary nor a company subject to joint control by the investing company. Significant<br />
influence is the power to participate in the financial and operating policy decisions of the<br />
company invested in but not to control or have joint control of it. Investments in associates are<br />
valued using the cost method.<br />
6.1.3. Companies subject to joint control<br />
A “company subject to joint control” is defined as a company governed by a contractual<br />
arrangement whereby two or more parties undertake an economic activity that is subject to<br />
joint control.<br />
Investments in companies subject to joint control are recognised in the accounts using the<br />
cost method.<br />
6.2. Recognition criteria<br />
Equity investments are recognised in the financial statements by applying the methods<br />
described in the preceding sections.<br />
6.3. Valuation criteria<br />
Any objective evidence that an equity investment has been subject to impairment is assessed<br />
as at each annual or interim reporting date. The recoverable amount is then calculated,<br />
considering the present value of the future cash flows which may be generated by the<br />
investment, including the final disposal value. If the recoverable amount calculated in this way<br />
is less than carrying value, the difference is recognised in the income statement under item<br />
210 “profit (loss) of equity investments”. Any future recoveries of value are also included in the<br />
item where the reasons for the original write down no longer apply.<br />
553 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
6.4. Derecognition criteria<br />
Equity investments are derecognised in the balance sheet when the contractual rights to the<br />
cash flows from the financial assets expire or when the financial assets are sold with the<br />
substantial transfer of all the risks and rewards deriving from ownership of them. The result of<br />
the disposal of investments valued using the equity method are recognised in the income<br />
statement under item 210 “Profits (losses) of equity investments”.<br />
7. PROPERTY, PLANT AND EQUIPMENT<br />
7.1. Definition of assets for functional use<br />
“Assets for functional use” are defined as tangible assets possessed to be used for the purpose<br />
of carrying on a company’s business and where the use is planned to last longer than one<br />
year.<br />
Assets for functional use include properties rented to employees, ex employees and their heirs.<br />
7.2. Definition of investment property<br />
“Investment property” is defined as properties held in order to earn rentals or for capital<br />
appreciation. As a consequence, investment property is to be distinguished from assets held<br />
for the use of the owner because they generate cash flows that are very different from the other<br />
assets held by the Bank.<br />
Finance lease contracts are also included within tangible assets (for functional use and held<br />
for investment) even if the legal title to the assets remains with the leasing company.<br />
7.3. Recognition criteria<br />
Tangible assets for functional use and other tangible assets are initially recognised at cost<br />
(item “110 Tangible assets”), inclusive of all costs directly connected with bringing it to<br />
working condition for the use of the assets and purchase taxes and duties that are not<br />
recoverable. This value is subsequently increased to include expenses incurred from which it<br />
is expected future benefits will be obtained. The costs of ordinary maintenance are recognised<br />
in the income statement at the time at which they are incurred while extraordinary<br />
maintenance costs (improvements) from which future benefits are expected are capitalised by<br />
increasing the value of the relative asset.<br />
Improvements and expenses incurred to increase the value of leased assets from which future<br />
benefits are expected are recognised:<br />
– within the most appropriate category of item 110 “Property, plant and equipment” if<br />
they are independent and can be separately identified, whether they are third party<br />
assets held on the basis of an ordinary leasing contract or whether they are held under<br />
a financial leasing contract;<br />
– within item 110 “Property, plant and equipment”, if they are not independent and<br />
cannot be separately identified, as an increase to the type of assets concerned if held<br />
by means of a financial leasing contract or within item 150 “Other assets” if they are<br />
held under an ordinary leasing contract.<br />
The cost of property, plant and equipment is recognised as an asset if, and only if:<br />
<br />
<br />
it is probable that the future economic benefits associated with the asset will flow to the<br />
enterprise;<br />
the cost of the asset can be reliably determined.<br />
554 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
7.4. Valuation criteria<br />
Subsequent to initial recognition, tangible assets for use in operations are recognised at cost,<br />
as defined above, net of accumulated depreciation and any permanent cumulative impairment.<br />
The depreciable amount, equal to cost less the residual value (i.e. the amount that would be<br />
normally obtained from disposal, less disposal costs, if the asset was normally in the<br />
conditions, including age, expected at the end of its useful life), should be allocated on a<br />
systematic basis over the asset's useful life by adopting the straight line method of<br />
depreciation. The useful life of an asset, which is reviewed periodically to detect any significant<br />
change in estimates compared to previous figures, is defined as:<br />
<br />
<br />
the period of time over which it is expected that the asset can be used by a company or,<br />
the quantity of products or similar units that an entity expects to obtain from the use of<br />
the asset.<br />
Since property, plant and equipment may consist of items with different useful lives, land,<br />
whether by itself or as part of the value of a building is not depreciated since it constitutes a<br />
fixed asset with an indefinite life. The value attributable to the land is deducted from the total<br />
value of a property for all buildings in proportion to the percentage of ownership. Buildings, on<br />
the other hand, are depreciated according to the criteria described above.<br />
Works of art are not depreciated because they generally increase in value over time.<br />
Depreciation of an asset starts when it is available for use and ceases when the asset is<br />
written off the accounts the accounts, which is the most recent of when it is classified as for<br />
sale and the date of elimination from the accounts. As a consequence depreciation does not<br />
stop when an asset is left idle or is no longer in use, unless the asset has already been fully<br />
depreciated.<br />
Improvements and expenses which increase the value are depreciated as follows:<br />
– if they are independent and can be separately identified, according to the presumed<br />
useful life as described above;<br />
– if they are not independent and cannot be separately identified, then if they are held<br />
under an ordinary leasing contract, over the shorter of the period in which the<br />
improvements and expenses can be used and that of the remaining life of the contract<br />
taking account of any individual renewals, or if the assets are held under a financial<br />
leasing contract, over the expected useful life of the assets concerned.<br />
The depreciation of improvements and expenses to increase the value of leased assets<br />
recognised under item 150 “Other assets” is recognised under item 190 “Other operating<br />
income (expense)”.<br />
At the end of each annual or interim reporting period the existence of indications that<br />
demonstrate the impairment of the value of an asset are assessed. The loss is determined by<br />
comparing the carrying value of the tangible asset with the lower recoverable amount. The<br />
latter is the greater of the fair value, net of any sales costs, and the relative use value intended<br />
as the present value of future cash flows generated by the asset. The loss is immediately<br />
recognised in the income statement under item 170 “Net impairment losses on property, plant<br />
and equipment”; the item also includes any future recovery in value if the causes of the<br />
original write down no longer exist.<br />
7.4.1. Definition and determination of fair value<br />
7.4.1.1. Properties<br />
The fair value is determined on the basis of the market value intended as meaning the best<br />
price at which the sale of a property might reasonably be expected to have been completed<br />
unconditionally for cash consideration on the date of valuation, assuming:<br />
– that the seller and the purchaser are independent counterparties;<br />
– the intention of the seller to sell the assets is real;<br />
555 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
– that there is a reasonable period (having regard to the nature of the property and the<br />
state of the market) for the proper marketing of the property and for the agreement of<br />
price and terms necessary to complete the sale;<br />
– that the market trend, level of values and other circumstances were, at the date of<br />
signing the preliminary contract of purchase and sale, identical to those existing at the<br />
date of valuation;<br />
– that no account is taken of bids by purchasers for whom the property has<br />
characteristics which make it “outside the market range”.<br />
The procedures adopted for determining the market value are based on the following methods:<br />
<br />
<br />
the direct comparative or market method, based on a comparison between the asset in<br />
question and other similar asset subject to sale or currently on sale on the same market or<br />
competing markets;<br />
the income method based on the present value of potential market incomes for a similar<br />
property, obtained by capitalising the income at a market rate.<br />
The above methods have been performed individually and the values obtained appropriately<br />
averaged.<br />
7.4.1.2. Determination of the value of land<br />
The method used for identifying the percentage of the market value attributable to land is<br />
based on an analysis of the location of the property, taking account of the type of construction,<br />
the state of conservation and the cost of rebuilding the entire building.<br />
7.5. Property, plant and equipment acquired through finance leases<br />
A financial lease is a contract that substantially transfers all the risks and rewards incident to<br />
ownership of an asset. Legal title may or may not be transferred at the end of the lease term.<br />
The beginning of the lease term is the date on which the lessee is authorised to exercise his<br />
right to use the asset leased and therefore corresponds to the date on which the lease is<br />
initially recognised.<br />
When the contract commences, the lessee recognises the financial leasing transactions as<br />
assets and liabilities in his balance sheets at the fair value of the asset leased or, if lower, at<br />
the present value of the minimum payments due. To determine the present value of the<br />
minimum payments due, the discount rate used is the contractual interest rate implicit in the<br />
lease, if practicable, or else the lessee’s incremental borrowing rate is used. Any initial direct<br />
costs incurred by the lessee are added to the amount recognised for the asset.<br />
The minimum payments due are apportioned between the finance charges and the reduction<br />
of the residual liability. The former are allocated over the lease term so as to produce a<br />
constant rate of interest on the residual liability.<br />
The financial leasing contract involves recognition of the depreciation charge for the asset<br />
leased and of the finance charges for each financial year. The depreciation policy used for<br />
assets acquired under finance leases is consistent with that adopted for owned assets. See the<br />
relative paragraph for a more detailed description.<br />
7.6. Derecognition criteria<br />
Property, plant and equipment are derecognised in the balance sheet when they are disposed<br />
of or when they are permanently retired from use and no future economic benefits are<br />
expected from their disposal. Any gains or losses resulting from the retirement or disposal of<br />
the tangible asset, calculated as the difference between the net consideration on the sale and<br />
the carrying value of the asset are recognised in the income statement under item 240 “Profit<br />
(loss) on the disposal of investments”.<br />
556 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
8. INTANGIBLE ASSETS<br />
8.1. Definition<br />
An intangible asset is defined as an identifiable non monetary asset without physical<br />
substance that is used in carrying on a company’s business.<br />
The asset is identifiable when:<br />
<br />
<br />
it is separable, which is to say capable of being separated and sold, transferred, licensed,<br />
rented, or exchanged;<br />
it arises from contractual or other legal rights, regardless of whether those rights are<br />
transferable or separable from other rights and obligations.<br />
An asset possesses the characteristic of being controlled by the enterprise as a result of past<br />
events and the assumption that its use will cause economic benefits to flow to the enterprise.<br />
An entity has control over an asset if it has the power to obtain future economic benefits<br />
arising from the resource in question and may also limit access by others to those benefits.<br />
Future economic benefits arising from an intangible asset might include receipts from the sale<br />
of products or services, savings on costs or other benefits resulting from the use of the asset<br />
by an enterprise.<br />
An intangible asset is recognised if, and only if:<br />
(a) it is probable that the expected future economic benefits attributable to the asset will<br />
flow to the entity;<br />
(b) the cost of the asset can be measured reliably.<br />
The probability of future economic benefits occurring is assessed on the basis of reasonable<br />
and supportable assumptions that represent the best estimate of the economic conditions that<br />
will exist over the useful life of the asset.<br />
The degree of probability attaching to the flow of economic benefits attributable to the use of<br />
the asset is valued on the basis of the sources of information available at the time of initial<br />
recognition, giving greater weight to external sources of information.<br />
The main items that the Bank classifies as intangible assets are goodwill and third party, or<br />
internally generated software, used over several years as well as customer relationships<br />
resulting from granting property loans to private individuals.<br />
8.1.1. Intangible assets with a finite useful life<br />
A finite useful life is defined for an asset where it is possible to estimate a limit to the period<br />
over which the related economic benefits are expected to be produced.<br />
Intangible assets considered as having a finite useful life include software and customer<br />
relationships resulting from granting property loans to private individuals.<br />
8.1.2. Intangible assets with an indefinite useful life<br />
An indefinite useful life is defined for an asset where it is not possible to estimate a predictable<br />
limit to the period over which the asset is expected to generate economic benefits for a<br />
company. The attribution of an indefinite useful life to an asset does not arise from having<br />
already programmed future expenses which restore the standard level of performance of the<br />
asset over time and prolong its useful life.<br />
8.2. Recognition criteria<br />
Assets recognised under the balance sheet item 120 “Intangible assets” are stated at cost and<br />
any expenses subsequent to the initial recognition are only capitalised if they are able to<br />
557 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
generate future economic benefits and only if those expenses can be reliably determined and<br />
attributed to the assets.<br />
The cost of an intangible asset includes:<br />
<br />
<br />
the purchase price including any non recoverable taxes and duties on purchases after<br />
commercial discounts and bonuses have been deducted;<br />
any direct costs incurred in bringing the asset into use.<br />
8.3. Valuation criteria<br />
Subsequent to initial recognition intangible assets with a finite useful life are recognised at<br />
cost net of total amortisation and any losses in value that may have occurred. Amortisation is<br />
calculated on a systematic basis over the estimated useful life of the asset (see definition<br />
included in the sub-section “Property, plant and equipment”) using the straight line method<br />
for all intangible assets with the exception of customer relationships resulting from granting<br />
property loans to private individuals which are amortised on the basis of the average life of the<br />
relationships or in other words of the portfolio of loans granted.<br />
Amortisation begins when the asset is available for use and ceases on the date on which the<br />
asset is written off the accounts.<br />
Intangible assets with an indefinite useful life (see, goodwill, as defined in the section below if<br />
positive) are recognised at cost net of any value impairment resulting from periodical reviews<br />
when tests are performed to verify the appropriateness of the carrying value of the assets (see<br />
section below). As a consequence amortisation of these assets is not calculated.<br />
No intangible assets arising from research (or from the research phase of an internal project)<br />
are recognised. Research expenses (or the research phase of an internal project) are recognised<br />
as costs at the time at which they are incurred.<br />
An intangible asset arising from development (or from the development phase of a internal<br />
project) is recognised if, and only if the following can be demonstrated:<br />
(a)<br />
(b)<br />
(c)<br />
the technical feasibility of completing the intangible asset so that it becomes available for<br />
sale or use;<br />
the intention of the company to complete the intangible asset to use it or sell it;<br />
the capacity of the company to use or sell the intangible asset.<br />
At the end of each annual or interim reporting period the existence of potential impairment of<br />
the value of intangible assets is assessed. The impairment is given by the difference between<br />
the carrying value of the assets and the recoverable amount and is recognised, as are any<br />
recoveries of value, under the item 180 “Net impairment losses on intangible assets”, with the<br />
exception of impairment losses on goodwill which are recognised under item 230 “Net<br />
impairment losses on goodwill”.<br />
8.4. Goodwill<br />
Goodwill is defined as the difference between the purchase cost and the fair value of assets<br />
and liabilities acquired as part of a business combination which consists of the union of<br />
separate enterprises or businesses in a single entity required to prepare financial statements.<br />
The result of almost all business combinations consists in the fact that a sole entity, an<br />
acquirer, obtains control over one or more separate businesses of the acquiree. When an entity<br />
acquires a group of activities or net assets that do not constitute a business it allocates the<br />
cost of the group to individual assets and liabilities identified on the basis of their relative fair<br />
value at the date of acquisition.<br />
A business combination may give rise to a holding relationship between a parent company and<br />
a subsidiary in which the acquirer is the parent company and the acquiree is the subsidiary.<br />
558 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
All business combinations are accounted for using the purchase method of accounting.<br />
The purchase method involves the following steps:<br />
(a) identification of the acquirer (the acquirer is the combining enterprise that obtains control<br />
of the other combining enterprises or businesses);<br />
(b) determination of the cost of the business combination;<br />
(c) on the acquisition date the cost of the business combination is allocated to the assets and<br />
liabilities and assumed contingent liabilities acquired.<br />
With the purchase method the acquirer must calculate the cost of a business combination as<br />
the sum total of:<br />
(a) the fair values, at the date of exchange, of assets sold, liabilities incurred or assumed,<br />
and equity instruments issued by the acquirer, in exchange for control of the acquiree;<br />
(b) any costs directly attributable to the business combination.<br />
Business combination transactions performed with subsidiaries undertakings or with<br />
companies belonging to the same group are recognised in the accounts on the basis of the<br />
significant economic substance of the transactions.<br />
In application of that principle, the goodwill arising from those transactions is recognised:<br />
(a) within item 120 on the assets side of the balance sheet if significant economic substance<br />
is found;<br />
(b) as a deduction from shareholders’ equity if it is not found.<br />
8.4.1. Allocation of the cost of a business combination to the assets and liabilities and<br />
assumed contingent assets and liabilities.<br />
The acquirer:<br />
(a)<br />
(b)<br />
recognises the goodwill acquired in a business combination as assets;<br />
measures that goodwill at its cost to the extent that it is the excess of the cost of the<br />
business combination over the acquirer's share of interest in the net fair values of the<br />
acquiree's identifiable assets, liabilities and contingent liabilities.<br />
Goodwill acquired in a business combination represents a payment made by the acquirer in<br />
the expectation of receiving economic future benefits from the asset which cannot be identified<br />
individually and recognised separately.<br />
After initial recognition, the acquirer values the goodwill acquired in a business combination<br />
at the relative cost net of cumulative impairment.<br />
The goodwill acquired in a business combination must not be amortised. The acquirer tests<br />
the asset for impairment annually or more frequently if specific events or changed<br />
circumstances indicate that it may have suffered a reduction in value, according to the relative<br />
accounting standard.<br />
The standard states that an asset (including goodwill) has suffered value impairment when the<br />
value recognised in the accounts exceeds the recoverable amount understood as the greater of<br />
the fair value, net of any sales expenses and its value in use, defined by section 6 of IAS 36.<br />
In order to test for impairment, goodwill must be allocated to cash generating units or to<br />
groups of cash generating units, in observance of the maximum aggregation limit which<br />
cannot exceed the operating segment identified in accordance with IFRS 8.<br />
8.4.2. Negative goodwill<br />
If the acquirer’s share of the net fair value of the identifiable assets, liabilities and contingent<br />
liabilities exceeds the cost of the business combination the acquirer:<br />
(a)<br />
reviews the identification and measurement of the identifiable assets, liabilities and<br />
contingent liabilities of the acquiree and the determination of the cost of the business<br />
combination;<br />
559 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
(b)<br />
immediately recognises any excess existing after the new measurement in the income<br />
statement.<br />
8.5. Derecognition criteria<br />
Intangible assets are derecognised in the balance sheet following disposal or when no future<br />
economic benefit is expected from their use or disposal.<br />
9. AMOUNTS PAYABLE, SECURITIES ISSUED (AND SUBORDINATED<br />
LIABILITIES)<br />
The various forms of interbank and customer funding are recognised within the balance sheet<br />
items 10 “Due to banks”, 20 “Due to customers” and 30 “Debt securities in issue”. These items<br />
also include liabilities recognised by a lessee in financial leasing operations.<br />
9.1. Recognition criteria<br />
The liabilities in question are recognised in the balance sheet at the time when the funding is<br />
received or when the debt securities are issued. The amount recognised is the fair value<br />
inclusive of any additional costs/income that are directly attributable to the transaction and<br />
determinable from the outset regardless of when they are paid. The value of the initial<br />
recognition does not include all those costs that are reimbursed by the creditor counterparty<br />
or that are attributable to internal costs of an administrative character.<br />
9.2. Valuation criteria<br />
After initial recognition financial liabilities are valued at amortised cost using the effective<br />
interest method as defined in previous paragraphs.<br />
9.3. Derecognition criteria<br />
Financial liabilities are derecognised in the balance sheet when they expire or are<br />
extinguished.<br />
The repurchase of own securities issued results in derecognition of the securities with the<br />
consequent redefinition of the liability for debt securities issued. Any difference between the<br />
repurchase value of the own securities and the corresponding carrying value of the liabilities is<br />
recognised in the income statement under the item 100 “Profit (loss) on the disposal or<br />
repurchase of d) financial liabilities”. Any subsequent re-issue of the securities previously<br />
subject to derecognition in the accounts constitutes a new issue for accounting purposes with<br />
the consequent recognition at the new issue price without any effect in the income statement.<br />
10. TAX ASSETS AND LIABILITIES<br />
Tax assets and liabilities are stated in the balance sheet under the items 130 “Tax assets” and<br />
80 “Tax liabilities”.<br />
10.1. Current tax assets and liabilities<br />
560 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Current tax for the current and prior periods is recognised as a liability to the extent that it<br />
has not yet been settled; any excess compared to the amount due is recognised as an asset.<br />
Current tax liabilities (assets) for the current and prior years, are measured at the amount<br />
expected to be paid to/recovered from taxation authorities, using the tax rates and tax laws in<br />
force.<br />
Current tax assets and liabilities are derecognised in the accounts in the year in which the<br />
assets are realised or the liabilities are extinguished.<br />
10.2. Deferred tax assets and liabilities<br />
Deferred tax liabilities are recognised for all taxable temporary differences unless the deferred<br />
tax liability arises from:<br />
<br />
<br />
goodwill for which amortisation is not deductible for tax purposes or<br />
the initial recognition of an asset or a liability in a transaction which:<br />
− is not a business combination and<br />
− at the time of the transaction, affects neither the accounting nor the taxable profit.<br />
Deferred tax assets are not calculated for higher values of assets for which the tax regime has<br />
been suspended relating to equity investments and to reserves for which the tax regime has<br />
been suspended because it is considered there are no reasonable grounds to assume they will<br />
be taxed in future.<br />
Deferred tax liabilities are recognised within the balance sheet item 80 “Tax liabilities b)<br />
deferred”.<br />
A deferred tax asset is recognised for all deductible temporary differences if it is probable that<br />
a taxable income will be used against which it will be possible to use the deductible temporary<br />
difference, unless the deferred tax asset arises from:<br />
<br />
<br />
negative goodwill which is treated as deferred income;<br />
the initial recognition of an asset or liability in a transaction which:<br />
− is not a business combination and<br />
− affects neither the accounting profit nor the taxable profit.<br />
Deferred tax assets are recognised within the balance sheet item 130 “Tax assets b) deferred”.<br />
Deferred tax assets and deferred tax liabilities are subject to constant monitoring and are<br />
valued using the tax rates that it is expected will apply in the period in which the tax asset will<br />
be realised or the tax liability will be extinguished on the basis of the tax regulations<br />
established by laws currently in force<br />
Deferred tax assets and deferred tax liabilities are derecognised in the accounts in the year in<br />
which<br />
the temporary difference which gave rise to them becomes payable with regard to deferred<br />
tax liabilities or deductible with regard to deferred tax assets;<br />
the temporary difference which gave rise to them is no longer valid for tax purposes.<br />
Deferred tax assets and deferred liabilities must not normally be discounted to present values<br />
nor offset one against the other<br />
561 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
11. NON CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE –<br />
LIABILITIES ASSOCIATED WITH DISPOSAL GROUPS HELD FOR SALE<br />
Non current assets and liabilities and groups of non current assets and liabilities for which it<br />
is presumed that the carrying value will recovered by selling them rather than by continued<br />
use are classified respectively under items 150 “Non current assets and disposal groups held<br />
for sale” and 90 “Liabilities associated with assets held for sale”.<br />
In order to be classified within these items the assets or liabilities (or disposal groups) must be<br />
immediately available for sale and there must be active, concrete programmes to sell the<br />
assets or liabilities in the short term.<br />
These assets or liabilities are valued at the lower of the carrying value and their fair value net<br />
of disposal costs.<br />
Profits and losses attributable to groups of assets or liabilities held for sale are recognised in<br />
the income statement under item 280 “Profit (loss) after tax of non current assets and groups<br />
of assets held for disposal”.<br />
Profits and losses attributable to individual assets held for disposal are recognised in the<br />
income statement under the most appropriate item.<br />
12. PROVISIONS FOR LIABILITIES AND CHARGES<br />
12.1. Definition<br />
A provision is defined as a liability of uncertain timing or amount.<br />
A contingent liability, however, is defined as:<br />
a possible obligation, the result of past events, the existence of which will only be<br />
confirmed by the occurrence or (non occurrence) of future events that are not totally under<br />
the control of the enterprise;<br />
a present obligation that is the result of past events, but which is not recognised in the<br />
accounts because:<br />
− it is improbable that financial resources will be needed to settle the obligation;<br />
− the amount of the obligation cannot be measured with sufficient reliability.<br />
Contingent liabilities are not recognised in the accounts, but are only reported, unless they are<br />
considered a remote possibility.<br />
12.2. Recognition criteria and valuation<br />
A provision is recognised if and only if:<br />
<br />
<br />
<br />
there is a present obligation (legal or implicit) that is the result of a past event and<br />
it is probable that the use of resources suitable for producing economic benefits will be<br />
required to fulfil the obligation and<br />
a reliable estimate can be made of the amount arising from fulfilment of the obligation.<br />
The amount recognised as a provision represents the best estimate of the expenditure required<br />
to settle the present obligation at the balance sheet date and reflects the risks and<br />
uncertainties that inevitably characterise a number of facts and circumstances. The amount of<br />
a provision is measured by the present value of the expenditure that it is assumed will be<br />
necessary to settle the obligation where the effect of the present value is a substantial aspect.<br />
Future events that might affect the amount required to settle the obligation are only taken into<br />
consideration if there is sufficient objective evidence that they will occur.<br />
Provisions made for liabilities and charges include those for the risk attaching to any existing<br />
tax litigation.<br />
562 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
12.3. Derecognition criteria<br />
The provision is reversed when it becomes improbable that the use of resources suitable for<br />
producing economic benefits will be required to settle the obligation.<br />
13. FOREIGN CURRENCY TRANSACTIONS<br />
13.1. Definition<br />
A foreign currency is a currency other than the functional currency of the entity, which is the<br />
currency of the primary economic environment in which an entity operates.<br />
13.2. Recognition criteria<br />
A foreign currency transaction is recorded at the time of initial recognition in the functional<br />
currency applying the spot exchange rate between the functional currency and the foreign<br />
currency ruling on the date of the transaction.<br />
13.3. Valuation criteria<br />
At each balance sheet date:<br />
(a)<br />
(b)<br />
(c)<br />
foreign currency monetary amounts 21 are translated using the closing rate;<br />
non-monetary items 22 carried at historical cost in foreign currency are translated using<br />
the exchange rate at the date of the transaction;<br />
non-monetary items carried at fair value in a foreign currency are translated using the<br />
exchange rates that existed on the dates when the fair values were determined.<br />
Exchange differences arising from the settlement of monetary items or from the translation of<br />
monetary items at rates different from those at which they were translated when initially<br />
recognised during the year or in previous financial statements are recognised in the income<br />
statement for the year in which they originated.<br />
Exchange rate differences arising from a monetary item that forms part of a net investment in<br />
a foreign operation of an entity that prepares financial statements are recognised in the<br />
income statement of the individual company financial statements of the entity that prepares<br />
the financial statements or the individual company financial statements of the foreign<br />
operation.<br />
When a profit or loss on a non monetary item is recognised directly in equity, each change in<br />
that profit or loss is also recognised directly in equity. However, when a profit or loss on a non<br />
monetary item is recognised in the income statement each change in that profit or loss is<br />
recognised in the income statement.<br />
21 “Monetary” items are defined as relating to determined sums in foreign currency, which is to say to assets and<br />
liabilities which must be received or paid for a determined amount in foreign currency. The defining characteristic of a<br />
monetary item is the right to receive or an obligation to pay a set or calculable number of foreign currency units.<br />
22 See the note on “monetary” items for the contrary.<br />
563 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
14. OTHER INFORMATION<br />
OWN SHARES<br />
Own shares if present in portfolio are deducted from shareholders’ equity. No profit or loss<br />
arising from the purchase, sale, issue or cancellation of own shares is recognised in the<br />
income statement. The differences between the purchase and sale price arising from these<br />
transactions are recorded in equity reserves.<br />
Provisions for guarantees granted and commitments<br />
Provisions made on a cases by case and collective basis to estimate possible payments to be<br />
made connected with the assumption of credit risks attaching to guarantees granted and<br />
commitments assumed are calculated by applying the same criteria as that reported for loans.<br />
These provisions are recognised within the item 100 “Other liabilities” with the balancing entry<br />
within the item in the income statement 130d “Net impairment losses on: other financial<br />
transactions”.<br />
EMPLOYEE BENEFITS<br />
Definition<br />
Employee benefits are defined as all forms of consideration given by an enterprise in exchange<br />
for services rendered by employees. Employee benefits can be classified as follows:<br />
<br />
<br />
<br />
<br />
short-term employee benefits (not including benefits due to employees for severance<br />
payments and benefits paid in the form of equity instruments) due entirely within 12<br />
months after the service is rendered by employees;<br />
post-employment benefits due after the contract of employment has terminated;<br />
post-employment benefit plans subsequent to the termination of the employment contract<br />
and that is agreements whereby the enterprise provides benefits subsequent to the<br />
termination of the employment contract;<br />
long term benefits, other than the previous, due entirely within the twelve months<br />
subsequent to the end of the financial year in which employee rendered the relative service.<br />
Severance payments<br />
Recognition criteria<br />
Severance payments recognised in the accounts are considered a defined benefit plan and as<br />
such require the amount of the obligation to be determined on an actuarial basis and to be<br />
discounted to present values because the debt may be extinguished a long time after the<br />
employees have rendered the relative service.<br />
The amount is accounted for as a liability amounting to:<br />
(a)<br />
(b)<br />
(c)<br />
(d)<br />
the present value of the defined benefit obligation at the balance sheet date;<br />
plus any actuarial gains (less any actuarial losses) recognised in a separate reserve in<br />
shareholders’ equity;<br />
less any pension costs relating to past service rendered not yet recognised;<br />
less the fair value at the balance sheet date of any assets at the service of the plan.<br />
Valuation criteria<br />
As concerns the accounting treatment for actuarial gains/losses, the Bank has opted for direct<br />
recognition of these items within valuation reserves in shareholders’ equity.<br />
564 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
“Actuarial gains/losses” comprise adjustments arising from the reformulation of previous<br />
actuarial assumptions as a result of actual experience or from changes in the actuarial<br />
assumptions themselves.<br />
The “Projected Unit Credit Method” is used to calculate the present value. This considers each<br />
single period of service as giving rise to an additional unit of severance payment and therefore<br />
measures each unit separately to arrive at the final obligation. This additional unit is obtained<br />
by dividing the total expected service by the number of years that have passed from the time<br />
service commenced until the expected payment date. Application of the method involves<br />
making projections of future payments based on historical analysis of statistics and of the<br />
demographic curve and discounting these flows on the basis of market interest rates. The rate<br />
used for discounting to present value is calculated as the average of the swap, bid and ask<br />
rates at the valuation date appropriately interpolated for intermediate maturity dates.<br />
SEGMENT <strong>REPORT</strong>ING<br />
Segment reporting is defined as the manner in which financial information on an enterprise is<br />
reported by segment.<br />
No segment reporting is given in this document because the separate company Annual Report<br />
for <strong>UBI</strong> <strong>Banca</strong> is published together with the consolidated annual report of the <strong>UBI</strong> <strong>Banca</strong><br />
Group which gives that information for the Group as a whole.<br />
REVENUES<br />
Definition<br />
Revenues are the gross inflow of economic benefits resulting from business arising from the<br />
ordinary operating activities of an enterprise when these inflows create an increase in equity<br />
other than an increase resulting from payments made by shareholders.<br />
Recognition criteria<br />
Revenues are measured at the fair value of the consideration received or due and are<br />
recognised in the accounts when they can be reliably estimated.<br />
The result of the rendering of services can be reliably estimated when the following conditions<br />
are met:<br />
<br />
<br />
<br />
<br />
the amount of revenue can be measured reliably;<br />
it is probable that the economic benefits arising from the transaction will flow to the<br />
company;<br />
the stage of completion of the operation at the balance sheet date can be measured<br />
reliably;<br />
the costs incurred, or to be incurred, to complete the transaction can be measured reliably.<br />
Revenue recognised in return for services rendered is recognised by reference to the stage of<br />
completion of the transaction.<br />
Revenue is only recognised when it is probable that the economic benefits arising from the<br />
transaction will be enjoyed by the company. Nevertheless when the recoverability of an<br />
amount already included within revenues is uncertain, the amount not recoverable or the<br />
amount for which recovery is no longer probable is recognised as a cost instead of adjusting<br />
the revenue originally recognised.<br />
Revenues arising from the use by third parties of the company’s assets which generate interest<br />
or dividends are recognised when:<br />
<br />
<br />
it is probable that the economic benefits arising from the transaction will be received by the<br />
enterprise;<br />
the amount of the revenue can be reliably measured.<br />
565 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Interest is recognised on an accruals basis that takes into account the effective yield of the<br />
asset. In detail:<br />
interest income includes the amortisation of any discounts, premiums or other differences<br />
between the initial carrying value for a security and its value at maturity.<br />
arrears of interest that are considered recoverable are recognised within the item 10<br />
“Interest income and similar”, but only the part considered recoverable.<br />
Dividends are recognised when shareholders acquire the right to receive payment.<br />
Expenses or revenues resulting from the sale or purchase of financial instruments, determined<br />
by the difference between the amount paid or received for the transaction and the fair value of<br />
the instrument are recognised in the income statement on initial recognition of the financial<br />
instrument when the fair value is determined:<br />
by making reference to current and observable market transactions in the same<br />
instrument;<br />
by using valuation techniques which use, as variables, only data from observable<br />
markets.<br />
EXPENSES<br />
Expenses are recognised in the accounts at the time at which they are incurred while following<br />
the criteria of matching costs to revenues that result directly and jointly from the same<br />
transactions or events. Expenses that cannot be associated with revenues are recognised<br />
immediately in the income statement.<br />
Expenses directly attributable to financial instruments valued at amortised cost and<br />
determinable from the outset, regardless of the time at which they are settled, flow to the<br />
income statement by applying the effective interest rate, a definition of which is given in the<br />
section “loans”.<br />
Permanent impairment of value is recognised in the income statement in the period in which it<br />
is detected.<br />
566 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part B – Information on the Balance Sheet<br />
Assets<br />
SECTION 1 – Cash and cash equivalents – Item 10<br />
1.1 Cash and cash equivalents: composition<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
a) C ash in hand 246.460 66.812<br />
b) D epo sits with central banks - -<br />
T o t a l 2 4 6 .4 6 0 6 6 .8 12<br />
The increase in cash in hand is a consequence of the centralisation at the Parent Bank of the<br />
central cash service for all the banks of the Group.<br />
567 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
SECTION 2 – Financial assets held for trading – Item 20<br />
2.1 Financial assets held for trading: composition by type<br />
Items/A mo unts<br />
3 1.12 .2 0 08 31.12.20 0 7<br />
Listed Unlisted Listed Unlisted<br />
A . A s se t s<br />
1. Debt securities 89.157 134.850 94.828 320.927<br />
1.1 Structured securities 8.240 37.687 6.087 18.341<br />
1.2 Other debt securities 80.917 97.163 88.741 302.586<br />
2. Equity instruments 123.026 18.821 23.642 21.918<br />
3. Units in O.I.C.R. (collective investment instruments) 48.278 - 562.777 -<br />
4. Financing - - - -<br />
4.1 Repurchase agreements - - - -<br />
4.2 Other - - - -<br />
5. Impaired assets - 345 - -<br />
6. A ssets transferred no t dereco gnised 787.634 - 1.148.482 -<br />
T o ta l A 1.0 4 8.09 5 15 4 .0 16 1.82 9 .7 29 34 2 .8 4 5<br />
B . D e riv a tive ins t rum e nt s<br />
1. Financial derivatives 2.637 1.214.876 171 576.172<br />
1.1 fo r trading 2.637 1.210.294 171 553.928<br />
1.2 connected with fair value o ptio ns - - - -<br />
1.3 o ther - 4.582 - 22.244<br />
2. Credit derivatives - 4.487 - 4.855<br />
2.1 for trading - 4.487 - 4.855<br />
2.1 connected with the fair value o ption - - - -<br />
2.3 o ther - - - -<br />
T o ta l B 2.63 7 1.219 .3 63 17 1 5 81.0 27<br />
T o ta l (A +B ) 1.0 5 0.73 2 1.3 7 3 .3 79 1.82 9 .9 00 92 3 .8 7 2<br />
Impaired assets consisted of a bond issued by Lehman Brothers for a nominal amount of 4<br />
million euro for which the fair value amounted to 8,625% of the nominal value. The relative<br />
loss is stated within item 80 – Net profit (loss) from trading – amounting to 3,5 million euro<br />
recognised in 2008. The further write-down with respect to the nominal amount (0,3 million<br />
euro) was performed in prior years.<br />
The securities classified as assets transferred and not derecognised relate to the value of<br />
securities pledged in repurchase agreement funding transactions. These securities consisted<br />
exclusively of securities issued by the Italian government.<br />
568 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2.2 Financial assets held for trading: composition by debtors/issuers<br />
Items/A mo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . A S S E T S<br />
1. D e bt s ec urit ie s 2 2 4 .0 0 7 4 15 .7 5 5<br />
a) Go vernments and Central B anks 22.759 87.316<br />
b) Other public autho rities 3.853 1<br />
c) B anks 111.283 178.442<br />
d) Other issuers 86.112 149.996<br />
2 . E quit y ins t rum ent s 14 1.8 4 7 4 5 .5 6 0<br />
a) B anks 9.819 8.281<br />
b) Other issuers: 132.028 37.279<br />
- insurance co mpanies 13.727 -<br />
- financial co mpanies 40.135 25.980<br />
- no n financial co mpanies 78.166 11.299<br />
- o ther - -<br />
3 . Unit s in O .I.C .R . 4 8 .2 7 8 5 6 2 .7 7 7<br />
4 . F ina nc ing - -<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other - -<br />
5 . Im pa ired a s s e t s 3 4 5 -<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other 345 -<br />
6 . A s s e t s t ra ns f e rre d no t de re c o gnis e d 7 8 7 .6 3 4 1.14 8 .4 8 2<br />
a) Go vernments and Central B anks 787.634 1.148.482<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other issuers - -<br />
T o t a l ( A ) 1.2 0 2 .111 2 .17 2 .5 7 4<br />
B . D E R IV A T IV E IN S T R UM E N T S<br />
a) B anks 1.144.328 514.287<br />
b) Custo mers 77.672 66.911<br />
T o t a l ( B ) 1.2 2 2 .0 0 0 5 8 1.19 8<br />
T o t a l ( A +B ) 2 .4 2 4 .111 2.7 5 3 .7 7 2<br />
569 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2.3 Financial assets held for trading: derivative instruments<br />
Type o f derivative/Underlying assets<br />
Interest rates<br />
Currencies and<br />
go ld<br />
Equity<br />
instrum ents<br />
Lo ans Other 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A ) Lis t e d de riv a t iv e s<br />
1. F ina nc ia l D e riv a t iv e s :<br />
• With exchange o f principal<br />
- Optio ns purchased - - - - - - -<br />
- Other derivatives 251 - 140 - - 3 9 1 6<br />
• Witho ut exchange o f principal<br />
- o ptio ns purchased 122 - - - - 12 2 -<br />
- Other derivatives 2.124 - - - - 2 .12 4 16 5<br />
2 . C re dit de riv a t iv e s :<br />
• With exchange o f principal - - - - - - -<br />
• Witho ut exchange o f principal - - - - - - -<br />
T o t a l A 2 .4 9 7 - 14 0 - - 2 .6 3 7 17 1<br />
B ) U nlis t e d de riv a t iv e s<br />
1. F ina nc ia l D e riv a t iv e s :<br />
• With exchange o f principal<br />
- Optio ns purchased - 3.462 - - 17 3 .4 7 9 16 .0 6 5<br />
- Other derivatives - 86.799 - - - 8 6 .7 9 9 4 5 .12 5<br />
• Witho ut exchange o f principal<br />
- Optio ns purchased 36.617 - 26 - 7.310 4 3 .9 5 3 9 4 .7 6 3<br />
- Other derivatives 1.079.721 - - - 924 1.0 8 0 .6 4 5 4 2 0 .2 19<br />
2 . C re dit de riv a t iv e s :<br />
• With exchange o f principal - - - - - - -<br />
• Witho ut exchange o f principal 4.487 - - - - 4 .4 8 7 4 .8 5 5<br />
T o t a l B 1.12 0 .8 2 5 9 0 .2 6 1 2 6 - 8 .2 5 1 1.2 19 .3 6 3 5 8 1.0 2 7<br />
T o t a l A +B 1.12 3 .3 2 2 9 0 .2 6 1 16 6 - 8 .2 5 1 1.2 2 2 .0 0 0 5 8 1.19 8<br />
570 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2.4 Financial assets held for trading other than those transferred and not derecognised<br />
and impaired assets: annual changes<br />
Debt securities<br />
Equity<br />
instrum ents<br />
Units in O.I.C .R .<br />
(collect ive invest ment<br />
inst rument s)<br />
Financing<br />
T o t a l<br />
A . O p e ning ba la n c e s 4 15 .7 5 5 4 5 .5 6 0 5 6 2 .7 7 7 - 1.0 2 4 .0 9 2<br />
B . In c re a s e s 11.5 9 9 .7 0 9 4 7 3 .6 4 9 14 .7 9 5 - 12 .0 8 8 .15 3<br />
B .1 P urchases 10.417.036 470.714 10.399 - 10.898.149<br />
B .2 P o sitive changes in fair value 4.542 562 - - 5.104<br />
B .3 Other changes 1.178.131 2.373 4.396 - 1.184.900<br />
C . D e c re a s e s ( 11.7 9 1.4 5 7 ) ( 3 7 7 .3 6 2 ) ( 5 2 9 .2 9 4 ) - ( 12 .6 9 8 .113 )<br />
C .1 Sales (10.378.721) (269.128) (436.974) - (11.084.823)<br />
C .2 R eim bursem ents (110.925) - - - (110.925)<br />
C .3 N egative changes in fair value (14.853) (59.479) (69.530) - (143.862)<br />
C .4 Other changes (1.286.958) (48.755) (22.790) - (1.358.503)<br />
D . F ina l b a la nc e s 2 2 4 .0 0 7 14 1.8 4 7 4 8 .2 7 8 - 4 14 .13 2<br />
571 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
SECTION 3 – Financial assets at fair value – Item 30<br />
3.1 Financial assets at fair value: composition by type<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Item s/Values<br />
Listed Unlisted Listed Unlisted<br />
1. D ebt securities - - - 823.242<br />
1.1 Structured securities - - - -<br />
1.2 Other debt securities - - - 823.242<br />
2. Equity instrum ents - - - -<br />
3. Units in O.I.C .R . 460.157 - 157.906 -<br />
4. Financing - - - -<br />
4.1 Structured - - - -<br />
4.2 Other - - - -<br />
5. Im paired assets - - - -<br />
6. A ssets transferred no t dereco gnised - - - -<br />
T o t a l 4 6 0 .15 7 - 15 7 .9 0 6 8 2 3 .2 4 2<br />
C o s t 4 6 0 .15 7 - 15 5 .2 7 4 8 2 3 .2 4 2<br />
Debt securities as at 31 st December 2007 related entirely to capitalisation policies reimbursed<br />
during 2008.<br />
Financial assets invested in OICR units (collective investment instruments) relate exclusively to<br />
units in hedge funds.<br />
572 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
3.2 Financial assets at fair value: composition by debtors/issuers<br />
Items/Values 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. D e bt s e c urit ie s - 8 2 3 .2 4 2<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other issuers - 823.242<br />
2 . E quit y ins t rum e nt s - -<br />
a) B anks - -<br />
b) Other issuers: - -<br />
- insurance co mpanies - -<br />
- financial co mpanies - -<br />
- no n financial co mpanies - -<br />
- o ther - -<br />
3 . Unit s in O .I.C .R . 4 6 0 .15 7 15 7 .9 0 6<br />
4 . F ina nc ing - -<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other - -<br />
5 . Im pa ire d a s s e t s - -<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other - -<br />
6 . A s s e t s t ra ns f e rre d no t de re c o gnis e d - -<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other - -<br />
T o ta l 4 6 0 .15 7 9 8 1.14 8<br />
573 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
3.3 Financial assets at fair value other than those transferred and not derecognised and<br />
impaired assets: annual changes<br />
Debt securities<br />
Equity<br />
instrum ents<br />
Units in O.I.C .R .<br />
(collect ive invest ment<br />
inst rument s)<br />
Financing<br />
T o t a l<br />
A . O pe ning ba la nc e s 8 2 3 .2 4 2 - 15 7 .9 0 6 - 9 8 1.14 8<br />
B . Inc re a s e s 3 7 .12 0 - 6 5 2 .7 6 2 - 6 8 9 .8 8 2<br />
B .1 P urchases - - 617.186 - 617.186<br />
B .2 P o sitive changes in fair value - - 12.971 - 12.971<br />
B .3 Other changes 37.120 - 22.605 - 59.725<br />
C . D e c re a s e s ( 8 6 0 .3 6 2 ) - ( 3 5 0 .5 11) - ( 1.2 10 .8 7 3 )<br />
C .1 Sales (829.885) - (215.821) - (1.045.706)<br />
C .2 Reimbursem ents - - - - -<br />
C .3 Negative changes in fair value - - (117.345) - (117.345)<br />
C .4 Other changes (30.477) - (17.345) - (47.822)<br />
D . F in a l ba la nc e s - - 4 6 0 .15 7 - 4 6 0 .15 7<br />
574 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 4 – Available-for-sale financial assets – Item 40<br />
4.1 Available-for-sale financial assets: composition by type<br />
Items/Values 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Listed Unlisted Listed Unlisted<br />
1. Debt securities 815.614 492.038 147.525 543.505<br />
1.1 Structured securities 130.309 46.079 - -<br />
1.2 Other debt securities 685.305 445.959 147.525 543.505<br />
2. Equity instruments 382.856 79.319 842.665 80.010<br />
2.1 at fair value 382.856 60.511 842.665 59.280<br />
2.2 at co st - 18.808 - 20.730<br />
3. Units in O.I.C.R. 14.085 72.140 24.507 70.381<br />
4. Financing - - - -<br />
5. Impaired assets - - - -<br />
6. A ssets transferred no t dereco gnised 911.461 - 105.953 246.363<br />
T o t a l 2 .12 4 .0 16 6 4 3 .4 9 7 1.12 0 .6 5 0 9 4 0 .2 5 9<br />
The significant decrease in listed equity instruments relates principally to the impairment of the<br />
investment in “Intesa-Sanpaolo” as shown in the schedule which follows the table that reports the<br />
annual changes.<br />
The securities classified as assets transferred and not derecognised relate to the value of<br />
securities pledged in repurchase agreement funding transactions. As at 31st December 2008<br />
these securities consisted exclusively of securities issued by the Italian government.<br />
575 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
4.2 Available-for-sale financial assets: composition by debtors/issuers<br />
Items/A mo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. D e bt s e c urit ie s 1.3 0 7 .6 5 2 6 9 1.0 3 0<br />
a) Go vernments and Central B anks 267.922 262.571<br />
b) Other public autho rities - -<br />
c) B anks 739.863 372.378<br />
d) Other issuers 299.867 56.081<br />
2 . E quit y ins t rum e nt s 4 6 2 .17 5 9 2 2 .6 7 5<br />
a) B anks 389.591 780.453<br />
b) Other issuers: 72.584 142.222<br />
- insurance co mpanies - -<br />
- financial co mpanies 31.769 65.147<br />
- no n financial co mpanies 40.815 75.525<br />
- o ther - 1.550<br />
3 . Unit s in O .I.C .R . 8 6 .2 2 5 9 4 .8 8 8<br />
4 . F ina nc ing - -<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other - -<br />
5 . Im pa ire d a s s e t s - -<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other - -<br />
6 . A s s e t s t ra ns f e rre d no t de re c o gnis e d 9 11.4 6 1 3 5 2 .3 16<br />
a) Go vernments and Central B anks 911.461 138.483<br />
b) Other public autho rities - -<br />
c) B anks - 195.229<br />
d) Other - 18.604<br />
T o t a l 2 .7 6 7 .5 13 2 .0 6 0 .9 0 9<br />
576 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
4.3 Available-for-sale financial assets: hedged assets<br />
Hedged assets<br />
A ssets/Type o f hedge 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Fair value Cash flo w Fair value Cash flo w<br />
1. Debt securities 1.467.531 - 449.750 -<br />
2. Equity instrum ents - - - -<br />
3. Units in O.I.C.R. - - - -<br />
4. Financing - - - -<br />
5. P o rtfo lio - - - -<br />
T o t a l 1.4 6 7 .5 3 1 - 4 4 9 .7 5 0 -<br />
Hedged financial assets consist of investments in debt securities for which specific fair value<br />
hedging contracts were entered into on the interest rates.<br />
As summarised in section 5.1 of the part on the income statement, the net result of the valuation<br />
of hedging contracts and the underlying assets was a positive amount of 2,2 million euro,<br />
recognised within item 90 in the income statement – Net profit (loss) from hedging.<br />
4.4 Available-for-sale financial assets: assets subject to specific hedging<br />
Item s/Values 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. Financial assets subject to fair value specific hedge<br />
a) interest rate risk 1.467.531 449.750<br />
b) price risk - -<br />
c) currency risk - -<br />
d) credit risk - -<br />
e) m ultiple risks - -<br />
2.Financial assets subject to cash flo w specific hedge<br />
a) interest rate risk - -<br />
b) currency risk - -<br />
c) o ther - -<br />
T o t a l 1.4 6 7 .5 3 1 4 4 9 .7 5 0<br />
577 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
4.5 Available-for-sale financial assets other than those transferred and not derecognised<br />
and impaired assets: annual changes<br />
D ebt s ecurities<br />
Equity<br />
instrum ents<br />
Units in O.I.C .R .<br />
(co llect ive invest ment<br />
inst rument s)<br />
F inancing<br />
T o t a l<br />
A . O pe ning ba la n c e s 6 9 1.0 3 0 9 2 2 .6 7 5 9 4 .8 8 8 - 1.7 0 8 .5 9 3<br />
B . Inc re a s e s 2 .0 8 9 .3 2 8 6 7 .16 7 5 .5 7 3 - 2 .16 2 .0 6 8<br />
B .1 P urc hases 1.700.508 299 3.901 - 1.704.708<br />
B .2 P o s itiv e c hanges in fair value 16.478 16.711 1.225 - 34.414<br />
B .3 Write-back s - - - - -<br />
- rec o gnised in the inc o m e s tatem ent - X - - -<br />
- rec o gnised in shareho lders’ equity - - - - -<br />
B .4 T ransfers fro m o ther po rtfo lio s - - - - -<br />
B .5 Other c hanges 372.342 50.157 447 - 422.946<br />
C . D e c re a s e s ( 1.4 7 2 .7 0 5 ) ( 5 2 7 .6 6 7 ) ( 14 .2 3 6 ) - ( 2 .0 14 .6 0 9 )<br />
C .1 Sales (535.710) (16.270) (587) - (552.567)<br />
C .2 R eim bursem ents (2.900) (1) - - (2.901)<br />
C .3 N egative c hanges in fair value (19.452) (11.038) (13.625) - (44.115)<br />
C .4 Write-do wns fo r im pairm ent (3.182) (455.755) - - (458.937)<br />
- rec o gnised in the inc o m e s tatem ent (3.182) (447.685) - - (450.867)<br />
- rec o gnised in shareho lders’ equity - (8.070) - - (8.070)<br />
C .5 T ransfers to o ther po rtfo lio s - - - - -<br />
C .6 Other c hanges (911.461) (44.603) (24) - (956.089)<br />
D . F in a l b a la nc e s 1.3 0 7 .6 5 3 4 6 2 .17 5 8 6 .2 2 5 - 1.8 5 6 .0 5 3<br />
The write-down of debt securities relates to the security UBS Fast Jersey 08/15 ZC. Following<br />
acknowledgment of objective evidence of impairment of the security due to the fall in its fair value,<br />
the entire cumulative reduction in value with respect to its cost of purchase was charged to the<br />
income statement. The total write-down amounted to 6,3 million euro, consisting of 3,2 million<br />
euro relating to 2008 and 3,1 million euro as a result of the transfer to the income statement of<br />
the write-downs recognised in equity in previous years.<br />
The details are given below of write-downs of equity instruments for which a significant and/or<br />
prolonged reduction in the fair value occurred with respect to the purchase value.<br />
eq uit y inst rument N o . shares unit price<br />
( *)<br />
cost<br />
unit<br />
p rice<br />
f air value<br />
f air value<br />
chang es<br />
wit hin<br />
eq uit y<br />
unit<br />
price<br />
f air value<br />
writ e- d own<br />
o f t he<br />
equit y<br />
inst rument<br />
t ransf er o f<br />
negat ive<br />
reserves;<br />
eliminat io n<br />
of p o sit ive<br />
reserves<br />
t ot al writ e-<br />
do wn in t he<br />
inco me<br />
st at ement<br />
Intesa Sanpaolo Sp a 140.167.610 5,686 796.993 5,397 756.485 (40.508) 2,519 353.124 (403.360) (40.508) (443.868)<br />
A2 A Sp a 11.200.000 3,030 33.936 3,100 34.720 784 1,271 14.233 (20.487) 784 (19.703)<br />
Lo nd on Sto ck Exchange (**) 1.590.271 16,430 37.497 19,790 42.915 7.286 5,1 8.515 (31.856) 7.286 (24.570)<br />
of which currency effect of L.S .E.<br />
exchang e rate thro ug h P&L (1.868) (2.545)<br />
Brescia o n line Srl 9.000 9,889 89 9,889 89 - 4,1 37 (52) (52)<br />
T ot al 8 6 8 .515 8 3 4 .2 0 9 ( 3 2 .4 3 8 ) 3 75.9 0 9 ( 4 55.755) ( 3 2 .4 3 8 ) ( 4 8 8 .19 3 )<br />
(*) The purchase value of Intesa Sanpaolo is that of the fair value of the share at the time of the merger between the former BPU and the former BLP.<br />
(**) The LSE share is quoted in UK Sterling. The change in fair value resulting from the change in the GBP/EUR exchange rate was charged to the<br />
income statement because the relative risk is managed together with total currency risk for the Bank.<br />
578 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 5 – Held-to-maturity financial assets – Item 50<br />
5.1 Held-to-maturity financial assets: composition by type<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Type o f transactio n/A mo unts Carrying amo unt Fair value Carrying amo unt Fair Value<br />
1. Debt securities 301.075 287.667 186.574 179.672<br />
1.1 Structured - - - -<br />
1.2 Other debt securities 301.075 287.667 186.574 179.672<br />
2. Financing - - - -<br />
3. Impaired assets - - - -<br />
4. A ssets transferred no t dereco gnised 1.319.492 1.255.833 1.058.000 1.010.041<br />
T o ta l 1.6 2 0 .5 6 7 1.5 4 3 .5 0 0 1.2 4 4 .5 7 4 1.18 9 .7 13<br />
The securities classified as assets transferred and not derecognised relate to the value of<br />
securities pledged in repurchase agreement funding transactions. These securities are all listed on<br />
regulated markets and are mainly issued by the Italian government. The difference between the<br />
carrying amount and the relative fair value, amounting to 77 million euro, is attributable<br />
principally to three positions including the security Goldman Sachs 05/20 TV EUR (nominal<br />
amount 200 million euro) which was affected more significantly by negative trends in respect of<br />
counterparty risk and recorded a fair value that was 54,6 million euro less than the carrying<br />
value.<br />
579 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
5.2 Held-to-maturity financial assets: debtors/issuers<br />
Type o f transactio n/Values 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. D e bt s e c urit ie s 3 0 1.0 7 5 18 6 .5 7 4<br />
a) Go vernments and Central B anks 154.672 132.709<br />
b) Other public autho rities - -<br />
c) B anks 146.403 53.865<br />
d) Other issuers - -<br />
2 . F ina nc ing - -<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other - -<br />
3 . Im pa ire d a s s e t s - -<br />
a) Go vernments and Central B anks - -<br />
b) Other public autho rities - -<br />
c) B anks - -<br />
d) Other - -<br />
4 . A s s e t s t ra ns f e rre d no t de re c o gnis e d 1.3 19 .4 9 2 1.0 5 8 .0 0 0<br />
a) Go vernments and Central B anks 1.107.624 753.854<br />
b) Other public autho rities - -<br />
c) B anks 7.006 99.434<br />
d) Other 204.862 204.712<br />
T o t a l 1.6 2 0 .5 6 7 1.2 4 4 .5 7 4<br />
5.3 Held-to-maturity financial assets: hedged assets<br />
The Bank has no specific hedging contracts for held-to-maturity assets.<br />
580 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
5.4 Held-to-maturity financial assets other than those transferred and not derecognised<br />
and impaired assets: annual changes<br />
Debt securities Financing T o t a l<br />
A . O pe ning ba la nc e s 18 6 .5 7 4 - 18 6 .5 7 4<br />
B . Inc re a s e s 1.4 4 8 .9 9 2 - 1.4 4 8 .9 9 2<br />
B .1 P urchases 385.912 - 385.912<br />
B .2 Write-backs - - -<br />
B .3 Transfers fro m o ther po rtfo lio s - - -<br />
B .4 Other changes 1.063.080 - 1.063.080<br />
C . D e c re a s e s ( 1.3 3 4 .4 9 1) - ( 1.3 3 4 .4 9 1)<br />
C.1 Sales - - -<br />
C.2 Reimbursements (15.000) - (15.000)<br />
C.3 Net impairm ent lo sses - - -<br />
C.4 Transfers to o ther po rtfo lio s - - -<br />
C.5 Other changes (1.319.491) - (1.319.491)<br />
D . F ina l ba la nc e s 3 0 1.0 7 5 - 3 0 1.0 7 5<br />
Other changes include securities which were pledged against repurchase agreements in 2008.<br />
Section 6 – Loans to banks – Item 60<br />
6.1 Lending to banks: composition by type<br />
Type o f transactio n/A mo unts<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . Lo a ns to C e ntra l B a nk s<br />
1. Term depo sits - -<br />
2. Co mpulso ry reserve requirement 1.005.255 185.562<br />
3. Reverse repurchase agreements - -<br />
4. Other - -<br />
B . Lo a ns to ba nk s<br />
1. Current acco unts and depo sits 4.017.877 9.807.901<br />
2. Term depo sits 5.932.025 3.276.100<br />
3. Other lo ans 4.892.303 1.442.321<br />
3.1 Reverse repurchase agreements 4.233.965 1.154.838<br />
3.2 finance leases - -<br />
3.3 o ther 658.338 287.483<br />
4. Debt securities 6.611.493 1.290.855<br />
4.1 structured 5.951.852 110.365<br />
4.2 o ther 659.641 1.180.490<br />
5. Impaired assets - -<br />
6. A ssets transferred no t dereco gnised 6.839.385 3.705.651<br />
T o t a l ( c a rrying a m o unt ) 2 9 .2 9 8 .3 3 8 19 .7 0 8 .3 9 0<br />
T o ta l ( f a ir v a lue ) 2 9 .3 0 1.7 3 7 19 .6 8 0 .7 7 0<br />
581 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
6.2 Lending to banks: assets subject to specific hedging<br />
The Bank has no specific hedging contracts for loans to banks.<br />
6.3 Finance leases<br />
The Bank has no existing loans for finance leases.<br />
Section 7 – Loans to customers – Item 70<br />
7.1 Lending to customers: composition by type<br />
Type o f transactio n/A m o unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. C urrent acco unt o verdrafts 500.963 561.737<br />
2. Reverse repurchase agreem ents 3.076 553.664<br />
3. M o rtgages 3.733.387 668.904<br />
4. Credit cards, perso nal lo ans and salary backed lo ans - -<br />
5. Finance leases - -<br />
6. Facto ring - -<br />
7. Other transactio ns 6.090.080 8.402.639<br />
8. Debt securities 118.413 79.101<br />
8.1 structured 118.413 26.582<br />
8.2 o ther - 52.519<br />
9. Im paired assets 849 913<br />
10. A ssets transferred no t dereco gnised - -<br />
T o t a l ( c a rrying a m o unt ) 10 .4 4 6 .7 6 8 10 .2 6 6 .9 5 8<br />
T o t a l ( f a ir v a lue ) 10 .4 19 .7 0 5 10 .2 7 1.6 8 2<br />
Loans to customers reported within items 3 mortgages and 7 other transactions relate to amounts<br />
granted to non banking Group member companies, which operate in the credit sector.<br />
582 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
7.2 Lending to customers: composition by debtors/issuers<br />
Type o f transactio n/Values<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. D e bt s e c urit ie s 118 .4 13 7 9 .10 1<br />
a) Go vernments - 5.147<br />
b) Other public autho rities - -<br />
c) Other issuers 118.413 73.954<br />
- no n financial co mpanies - -<br />
- financial co mpanies 108.377 63.911<br />
- insurance co mpanies 10.036 10.043<br />
- o ther - -<br />
2 . F ina nc ing t o : 10 .3 2 7 .5 0 6 10 .18 6 .9 4 4<br />
a) Go vernments - 35<br />
b) Other public autho rities 10 11<br />
c) Other 10.327.496 10.186.898<br />
- no n financial co mpanies 41.790 55.985<br />
- financial co mpanies 10.185.475 10.106.064<br />
- insurance co mpanies 18.281 18.316<br />
- o ther 81.950 6.533<br />
3 . Im pa ire d a s s e ts : 8 4 9 9 13<br />
a) Go vernments - -<br />
b) Other public autho rities - -<br />
c) Other 849 913<br />
- no n financial co mpanies 849 913<br />
- financial co mpanies - -<br />
- insurance co mpanies - -<br />
- o ther - -<br />
4 . A s s e t s t ra ns fe rre d no t de re c o gnis e d: - -<br />
a) Go vernments - -<br />
b) Other public autho rities - -<br />
c) Other - -<br />
- no n financial co mpanies - -<br />
- financial co mpanies - -<br />
- insurance co mpanies - -<br />
- o ther - -<br />
T o t a l 10 .4 4 6 .7 6 8 10 .2 6 6 .9 5 8<br />
Impaired positions included a residual amount receivable (net of write-downs) of 41 thousand<br />
euro relating to Lehman Brothers International Europe.<br />
583 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
7.3 Loans to customers: assets subject to specific hedge<br />
Type o f transactio n/Amo unts 31.12.20 08 31.12 .2007<br />
1. 1. Loans subject to fair value specific hedge:<br />
a) interest rate risk 223.588 223.398<br />
c) currency risk - -<br />
d) credit risk - -<br />
e) multiple risks - -<br />
2. 2. Loans subject to cash flow specific hedge:<br />
a) interest rate risk - -<br />
b) currency risk - -<br />
c) other - -<br />
T o ta l 223.5 88 22 3.39 8<br />
Loans to customers subject to specific fair value hedges on interest rate risk all consisted of<br />
amounts granted to Group member companies. As summarised in section 5.1 of the part on the<br />
income statement, the net result of the valuation of hedging contracts and the underlying loans<br />
was a positive amount of 13 thousand euro, recognised within item 90 in the income statement –<br />
Net profit (loss) from hedging.<br />
7.4 Finance leases<br />
The Bank has no existing loans for finance leases<br />
584 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 8 – Hedging Derivatives – Item 80<br />
8.1 Hedging derivatives: composition by type of contract and underlying assets<br />
Type of derivative/Underlying asset s<br />
Int erest rates<br />
Currencies and<br />
gold<br />
Equity inst ruments Loans Other 3 1.12 .2 0 0 8<br />
A ) List ed d er i vat ives<br />
1) F i nanci al D er ivat ives: - - - - - -<br />
• W it h exchange of principal - - - - - -<br />
- Opt ions purchased - - - - - -<br />
- Ot her derivatives - - - - - -<br />
• W it hout exchange of principal - - - - - -<br />
- Opt ions purchased - - - - - -<br />
- Ot her derivatives - - - - - -<br />
2 ) C r ed i t D er ivat ives: - - - - - -<br />
• W it h exchange of principal - - - - - -<br />
• W it hout exchange of principal - - - - - -<br />
T o t al A - - - - - -<br />
B ) U nli st ed d er i vat ives<br />
1) F i nanci al D er ivat ives: 72.787 - - - - 72 .78 7<br />
• W it h exchange of principal - - - - - -<br />
- Opt ions purchased - - - - - -<br />
- Ot her derivatives - - - - - -<br />
• W it hout exchange of principal 72.787 - - - - 72 .78 7<br />
- Opt ions purchased - - - - - -<br />
- Ot her derivatives 72.787 - - - - 72 .78 7<br />
2 ) C r ed i t D er ivat ives: - - - - - -<br />
• W it h exchange of principal - - - - - -<br />
• W it hout exchange of principal - - - - - -<br />
T o t al B 72 .78 7 - - - - 72 .78 7<br />
T o t al ( A +B ) ( 3 1.12 .2 0 0 8 ) 72 .78 7 - - - - 72 .78 7<br />
T o t al ( A +B ) ( 3 1.12 .2 0 0 7) 4 8 .9 75 - - - - 4 8 .9 75<br />
585 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
8.2 Hedging Derivatives: composition by portfolios hedged and type of hedging<br />
Fair Value<br />
Cash flow<br />
Transactions /Type of hedging<br />
Specific<br />
Interest rate risk Currency risk Credit risk Price risk Multiple risks Macro-hedge Specific Macro-hedge<br />
1. Available-for-sale financial assets - - - - - X - X<br />
2. Loans 84 - - X - X - X<br />
3. Held-to-maturity financial assets X - - X - X - X<br />
4. Portfolio X X X X X - X -<br />
5. Foreign investments X X X X X X X<br />
Total assets 84 - - - - - - -<br />
1. Financial liabilities 72.703 - - X - X - X<br />
2. Portfolio X X X X X - X -<br />
Total liabilities 72.703 - - X - - - -<br />
1. Expected transactions X X X X X X _ _<br />
Section 9 – Fair value change in financial assets subject to macro-hedge – Item 90<br />
The Bank has no contracts for macro-hedging of financial assets.<br />
586 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 10 – Equity investments – Item 100<br />
10.1 Equity investments in subsidiaries, companies subject to joint control and in<br />
companies subject to significant influence: information on investments<br />
N am e H eadquarters P ercentage o wned<br />
A . C o m p a n ie s s u b je c t t o e xc lu s iv e c o n t ro l<br />
B @nca 24-7 Spa B ergam o 100,00%<br />
B anc a C arim e Spa C o senza 85,83%<br />
B anc a di Valle C am o nic a Spa B reno (B s ) 74,24%<br />
B anc a Lo m barda P referred C apital c o m pany Llc D elaware (USA ) 100,00%<br />
B anc a Lo m barda P referred Securities trus t D elaware (USA ) 100,00%<br />
B anc a P o po lare C o m m erc io Industria Spa M ilan 83,36%<br />
B anc a P o po lare di A nc o na Spa Jes i (A n) 99,29%<br />
B anc a P o po lare di B ergam o Spa B ergam o 100,00%<br />
B anc a R egio nale Euro pea Spa C uneo 63,13%<br />
B anc o di B res cia San P ao lo C A B Spa B rescia 100,00%<br />
B anc o di San Gio rgio Spa Geno a 34,82%<br />
B anque de D epo t et de Ges tio n Sa Lausanne (Switzerland) 100,00%<br />
B P B F unding Llc D elaware (USA ) 100,00%<br />
B P B Im m o biliare Srl B ergam o 100,00%<br />
B P C I F unding Llc D elaware (USA ) 100,00%<br />
C apitalges t Spa B rescia 100,00%<br />
C entro banca Spa M ilan 92,35%<br />
F inanzattiv a Servizi Srl B ergam o 100,00%<br />
IW B ank Spa M ilano 18,90%<br />
24-7 F inance Srl B rescia 10,00%<br />
Lo m barda Lease F inance 2 Srl B rescia 10,00%<br />
Lo m barda Lease F inance 3 Srl B rescia 10,00%<br />
Lo m barda Lease F inance 4 Srl B rescia 10,00%<br />
M erc ato Im presa Spa M ilan 98,56%<br />
Sbim so cietà bres ciana im m o biliare Spa B rescia 100,00%<br />
Silf so c ietà italiana Leasing e F inanziam enti Spa C uneo 100,00%<br />
So lim m So cietà Lo m barda Im m o biliare Srl B rescia 100,00%<br />
UB I A s sicurazio ni Spa M ilan 85,00%<br />
UB I B anca Internatio nal Sa Luxem bo urg 92,03%<br />
UB I B anca P rivate inv estm ent Spa B rescia 100,00%<br />
UB I C entro sys tem Spa M ilan 100,00%<br />
UB I F iduciaria Spa B rescia 100,00%<br />
UB I F inanc e 2 srl B rescia 10,00%<br />
UB I F acto r Spa M ilan 100,00%<br />
UB I F inanc e Srl M ilan 60,00%<br />
UB I Ins uranc e B ro ker Srl B ergam o 100,00%<br />
UB I Leas ing Spa B rescia 80,00%<br />
UB I Leas e F inance 5 Srl M ilan 10,00%<br />
UB I P ram erica SGR Spa B ergam o 34,08%<br />
UB I Sis tem i e Servizi Sc pa B rescia 68,00%<br />
587 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
B . C o m pa nie s s ub je c t t o jo in t c o n t ro l<br />
B arberini Sa B russels 33,33%<br />
B y yo u Spa M ilan 40,00%<br />
C . C o m pa nie s s ub je c t t o c o n s ide ra b le inf lu e nc e<br />
A rca Sgr Spa M ilan 23,12%<br />
A viva Vita Spa M ilan 50,00%<br />
C apital M o ney Spa M ilan 20,46%<br />
Lo m barda C hina F und M angem ent C o m pany Shenzen (C hina) 49,00%<br />
P rism a Srl M ilan 20,00%<br />
Lo m barda Vita Spa B rescia 49,90%<br />
Secur B ro ker srl B ergam o 10,00%<br />
Sf co nsulting Srl B ergam o 35,00%<br />
A viva A ssicurazio ni Vita Spa M ilan 49,99%<br />
The percentages of the voting rights held by the individual company <strong>UBI</strong> <strong>Banca</strong> Scpa are the<br />
same as the percentage interests held in each company.<br />
As concerns <strong>Banca</strong> Regionale Europea Spa, the percentage of the voting rights given of 63,13%<br />
relates to the ordinary shares held.<br />
588 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
10.2 Equity investments in subsidiaries, companies subject to joint control and in<br />
companies subject to significant influence: accounting information<br />
N am e<br />
T o tal<br />
assets<br />
T o tal<br />
revenues<br />
P ro fit<br />
(Lo ss)<br />
Equity<br />
C arrying<br />
amo unt<br />
A . C o mpanies subject to exclusive co ntro l<br />
B@nca 24-7 Spa 9.690.569 549.297 (18.748) 292.423 363.683<br />
<strong>Banca</strong> Carime Spa 10.347.438 696.655 118.292 1.660.809 1.402.975<br />
<strong>Banca</strong> di Valle Camonica Spa 2.457.334 170.163 24.660 128.061 227.274<br />
<strong>Banca</strong> Lombarda Preferred Capital Company Llc 166.530 12.700 (186) (564) 1<br />
<strong>Banca</strong> Lombarda Preferred Securities Trust 166.065 12.819 (133) (386) 1<br />
<strong>Banca</strong> Popolare Commercio e Industria Spa 12.151.910 908.798 58.129 885.606 589.327<br />
<strong>Banca</strong> Popolare di Ancona Spa 10.128.521 829.147 137.395 899.921 1.093.989<br />
<strong>Banca</strong> Popolare di Bergamo Spa 28.067.499 1.940.352 372.848 1.811.997 1.256.300<br />
<strong>Banca</strong> Regionale Europea Spa 10.501.328 763.161 111.490 1.038.400 1.226.757<br />
Banco di Brescia San Paolo CAB Spa 20.992.583 1.425.786 216.653 1.212.673 3.223.142<br />
Banco di San Giorgio Spa 2.339.337 150.127 19.319 123.132 83.438<br />
Banque de Depot et de Gestion Sa 503.417 34.585 6.279 92.319 59.045<br />
BPB Funding Llc 324.148 25.433 295 (863) 1.000<br />
BPB Immobiliare Srl 234.963 9.774 1.371 232.671 163.898<br />
BPCI Funding Llc 121.382 10.365 (34) (388) 1.000<br />
Capitalgest Spa 35.598 17.837 9.838 24.476 299.833<br />
Centrobanca Spa 9.197.188 518.503 61.681 561.086 558.902<br />
Finanzattiva Servizi Srl 7.045 2.484 121 6.543 6.413<br />
Iw Bank Spa 2.878.582 156.591 11.076 62.621 14.258<br />
24-7 Finance Srl 462.213 4.916 18 28 1<br />
Lombarda Lease Finance 2 Srl 83.042 8.776 (787) 187 1<br />
Lombarda Lease Finance 3 Srl 122.538 12.533 91 431 1<br />
Lombarda Lease Finance 4 Srl 627.865 38.218 (724) (474) 1<br />
M ercato Impresa Spa 10.095 16.209 (1.267) 4.013 5.088<br />
Sbim Società bresciana immobiliare Spa 81.054 8.140 1.189 44.471 60.993<br />
Silf Società Italiana Leasing e Finanziamenti Spa 21.324 42.920 1.578 3.762 5.835<br />
Solimm Società Lombarda Immobiliare Srl 3.137 118 27 2.744 3.015<br />
<strong>UBI</strong> <strong>Banca</strong> International Sa 1.485.888 74.637 (5.684) 93.125 117.666<br />
<strong>UBI</strong> <strong>Banca</strong> Private Investment Spa 839.157 94.080 1.857 80.457 83.983<br />
<strong>UBI</strong> Centrosystem Spa 34.550 33.642 (643) 13.434 13.434<br />
<strong>UBI</strong> Factor Spa 2.202.903 128.891 21.167 98.420 159.563<br />
<strong>UBI</strong> Fiduciaria Spa 4.982 2.935 143 3.289 8.513<br />
<strong>UBI</strong> Finance Srl 37 27 - 10 6<br />
<strong>UBI</strong> Finance 2 Srl 190 9.386 68 78 1<br />
<strong>UBI</strong> Insurance Broker Srl 24.734 8.491 3.304 10.890 4.123<br />
Ubi Leasing Spa 9.499.702 559.719 43.834 329.052 422.107<br />
<strong>UBI</strong> Assicurazioni Spa 604.965 296.328 34.329 146.940 110.181<br />
<strong>UBI</strong> Lease Finance 5 Srl 4.076.806 51.339 - 10 1<br />
<strong>UBI</strong> Pramerica SGR Spa 244.717 270.881 13.658 92.441 40.513<br />
<strong>UBI</strong> Sistemi e Servizi Scpa 203.923 363.099 - 38.491 33.982<br />
B . C o mpanies subject to jo int co ntro l<br />
Barberini Sa 37.744 2.149 (648) 13.258 5.702<br />
By You Spa 7.392 43.606 313 2.606 3.606<br />
C . C o mpanies subject to significant influence<br />
Arca Sgr Spa 157.948 212.330 10.353 106.083 9.422<br />
Aviva Vita Spa 3.400.300 229.800 (4.700) 78.800 37.772<br />
Capital M oney Spa 11.254 20.647 (1.511) 2.834 1.313<br />
Lombarda China Fund M anagement Company 15.841 459 (206) 13.286 4.772<br />
Lombarda Vita Spa 5.172.633 1.063.676 (12.712) 168.818 147.267<br />
Prisma Srl 832 1.006 28 213 23<br />
Secur Broker Srl 997 296 62 291 23<br />
SF Consulting Srl 9.548 10.321 44 410 63<br />
Aviva Assicurazioni Vita Spa 2.964.817 283.282 9.201 91.960 59.000<br />
T o tal 11.909.207<br />
There is no column for fair value in the table because the companies subject to significant<br />
influence consist entirely of companies that are not listed on active markets.<br />
589 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
10.3 Annual changes in equity investments<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . O pe ning ba la nc e s 11.6 0 6 .9 18 5 .5 11.7 8 8<br />
B . Inc re a s e s 7 2 9 .8 7 0 6 .2 4 5 .3 9 9<br />
B .1 P urchases 355.516 6.109.454<br />
B .1.1 P urchases 355.516 209.167<br />
B .1.2 B usiness co mbinatio n transactio ns - 5.900.287<br />
B .2 Write-backs - -<br />
B .3 Revaluatio ns - -<br />
B .4 Other changes 374.354 135.945<br />
C . D e c re a s e s ( 4 2 7 .5 8 1) ( 15 0 .2 6 9 )<br />
C.1 Sales (44.880) -<br />
C.1.1 sales (44.880) -<br />
C.1.2 B usiness co mbinatio n transactio ns - -<br />
C.2 Net impairment lo sses (3.558) -<br />
C.3 Other changes (379.143) (150.269)<br />
D . F ina l ba la nc e s 11.9 0 9 .2 0 7 11.6 0 6 .9 18<br />
E . T o t a l writ e ups - -<br />
F . T o t a l v a lue a djus t m e nt s ( 10 4 .2 5 6 ) ( 10 0 .6 9 9 )<br />
The main increases in value recorded in 2008 include that for <strong>Banca</strong> Regionale Europea<br />
amounting to 136,9 million euro, which occurred following the exercise of an option, together<br />
with the following increases in capital:<br />
- SBS Leasing amounting to 58,8 million euro;<br />
- Aviva Assicurazioni Vita amounting to 59 million euro;<br />
- Lombarda Vita amounting to 24,9 million euro;<br />
- <strong>UBI</strong> Leasing Spa amounting to 24,7 million euro;<br />
- Aviva Vita amounting to 10 million euro.<br />
the main sales transactions related to:<br />
- <strong>UBI</strong> Pramerica SGR amounting to 27,9 million euro.<br />
- <strong>UBI</strong> Sistemi e Servizi amounting to 12,5 million euro.<br />
Other increases and decreases include<br />
which occurred in 2008.<br />
amounts recognised against merger transactions<br />
The carrying amounts of equity investments were subjected to impairment testing for possible<br />
reductions in value. These tests involved verifying that the carrying amount recognised for<br />
each single investment was not greater than the higher of the amount resulting from<br />
discounting future cash flows to present values, inclusive of the final disposal value of the<br />
investment, attributable to each individual interest held and the relative fair value, after sales<br />
costs, as determined in relation to the value of similar companies or, alternatively, on the<br />
basis of parameters observed for comparable transactions. Details of the methods employed<br />
for estimating future cash flows are given in the notes to the consolidated financial<br />
statements, in asset section 13.3.<br />
The impairment tests, performed with the methodological assistance of an external appraiser<br />
of high standing, confirmed that the recoverable values of the investments were higher than<br />
the respective carrying amounts, except for the interest held in <strong>UBI</strong> Centrosystem Spa for<br />
which the carrying amount was written down by 3,6 million euro, due to losses in value<br />
considered permanent.<br />
590 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
10.4 Commitments relating to equity investments in subsidiaries<br />
Commitments relating to the possible exercise of options<br />
<strong>Banca</strong> Regionale Europea: following the exercise on 3 rd October 2008 by Cattolica<br />
Assicurazioni of a put option on approximately 7,66% of the ordinary share capital<br />
corresponding to approximately 7,0% of the voting share capital at a price of 173,1 million<br />
euro, no further commitments exist with regard to that company.<br />
<strong>Banca</strong> Popolare Commercio e Industria/<strong>Banca</strong> Carime – bank assurance agreement with<br />
the Aviva Group: this agreement between <strong>UBI</strong> <strong>Banca</strong> and Aviva involves two call options<br />
granted to <strong>UBI</strong> on equity investments in banks (BPCI and Carime) for which the trigger events<br />
are connected with the performance of the joint-venture or the termination of the distribution<br />
agreement or the exclusive distribution condition. If <strong>UBI</strong> fails to exercise the call options, Aviva<br />
will have the right from 30 th September 2016 to exercise a put option on the same equity<br />
investments at a price equal to the fair value.<br />
<strong>UBI</strong> Pramerica: on 18 th January 2008 the renegotiation of the agreements with the Prudential<br />
Financial Inc. (PFI) was positively concluded concerning the partnership in the assets under<br />
management sector involving the <strong>UBI</strong> Pramerica SGR joint venture. The agreements reached<br />
involved, amongst other things, the replacement of all the put options granted to PFI with a<br />
system of intersecting call options that are triggered by determined events.<br />
Recapitalisation commitments<br />
Banco di San Giorgio: on 11 th February 2009 the Board of directors of Banco di San Giorgio<br />
decided two increases in the share capital by payment with the issue price of the new shares<br />
set at 5,38 euro per share, including a share issue premium of 3,88 euro, in order to<br />
strengthen the capital of that bank to support the acquisition of 13 branches sold by Intesa<br />
Sanpaolo. Following the approval by the shareholders on 13 th March 2009, the first increase in<br />
the share capital totalling 68,4 million euro was fully paid up, consisting of 28,1 million euro<br />
paid by <strong>UBI</strong> <strong>Banca</strong> and 42,3 million euro by BRE <strong>Banca</strong>.<br />
The second increase in the share capital, totalling a maximum of 6,6 million euro, was offered<br />
as a rights issue reserved to all the other registered shareholders of Banco di San Giorgio and<br />
will be subscribed by 30 th September 2009. Any shares not taken up will be subscribed by <strong>UBI</strong><br />
<strong>Banca</strong> and BRE <strong>Banca</strong>.<br />
10.5 Commitments relating to equity investments in companies subject to joint control<br />
Commitments connected with the possible payment of further tranches of the price<br />
By You Spa: the agreements signed in 2006 involve some increases to the price, linked to the<br />
achievement of predetermined volumes of mortgage loans to be granted by 30 th September<br />
2009. The total theoretical purchase price amounts to 33,5 million euro on the achievement of<br />
determined objectives. As at 31 st December 2008, 26,1 million euro had been paid, to which<br />
an amount of 6,6 million euro was added, estimated on the basis of forecasts of volumes of<br />
mortgages that it is expected will be granted by 30 th September 2009.<br />
As at 31 st December 2008 the investment was recognised with a carrying amount of 3,6<br />
million euro, after the identification of a finite life intangible asset amounting to 29,1 million<br />
euro, in respect of the higher income generated by the subsidiary <strong>Banca</strong> 24-7 as a result of the<br />
commercial agreement currently existing with By You (see the comments at the foot of Table<br />
12.2 Intangible assets: annual changes).<br />
591 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Recapitalisation commitments<br />
Aviva Vita: following a decision made by the Board of Directors of Aviva Vita on 19 th January<br />
2009, on 5 th February 2009 an extraordinary shareholders’ meeting of Aviva Vita S.p.A. (50%<br />
held by <strong>UBI</strong> <strong>Banca</strong> and by a partner of the Group in the banc assurance life insurance sector)<br />
was held which approved an increase in the share capital of the company for a total of 40<br />
million euro in order to strengthen the margin of solvency of the company.<br />
The increase in the share capital will be performed in two tranches of 20 million euro each (the<br />
first was paid at the time of the shareholders meeting and the second may be called by the end<br />
of July 2010 by the Board of Directors of Aviva Vita). The pro-rata amount to be paid by <strong>UBI</strong><br />
<strong>Banca</strong> totals 20 million euro (10 million euro for each tranche).<br />
10.6 Commitments relating to equity investments in companies subject to significant<br />
influence<br />
Commitments relating to the possible exercise of options<br />
Lombarda Vita S.p.A.: put/call options on the investment in Lombarda Vita form part of the<br />
banc assurance agreement with Cattolica Assicurazioni. The call option is exercisable by <strong>UBI</strong><br />
<strong>Banca</strong> at its discretion, following the approval of the 2010 Annual Report of Lombarda Vita.<br />
The put options can be exercised if determined events occur (withdrawal from the<br />
shareholders agreement and sale to third parties) by <strong>UBI</strong> <strong>Banca</strong> and/or Cattolica<br />
Assicurazioni.<br />
Lombarda China Fund Management Company: the partnership agreement signed between<br />
<strong>UBI</strong> <strong>Banca</strong> and Goudu Securities <strong>Banca</strong> Ltd in the asset management sector, focused on the<br />
Chinese market, involves a series of intersecting put/call options which can be exercised if<br />
determined trigger events occur concerning the respective investment held in Lombarda China<br />
Fund Management.<br />
Recapitalisation commitments<br />
Lombarda Vita Spa: on 19 th March 2009, the date on which the draft annual report of<br />
Lombarda Vita Spa was approved, <strong>UBI</strong> <strong>Banca</strong> made a payment of 34,93 million euro to<br />
increase the share capital. That recapitalisation for a total of 70 million euro has the dual<br />
purpose of restoring the margin of solvency and replenishing losses which exceed one third of<br />
the share capital. The statutory financial statements of Lombarda Vita report a loss of 104,5<br />
million euro due primarily to write-downs relating to equity instruments and bonds used to<br />
cover technical requirements. The financial statements of Lombarda Vita prepared according<br />
to international accounting standards reported a loss of approximately 13 million euro.<br />
Non current assets and disposal groups held for sale<br />
Polis Fondi SGR Spa: on 8 th October 2008 an agreement was signed between Sopaf Spa and<br />
<strong>UBI</strong> <strong>Banca</strong> for the sale of 9,8% at a price of approximately 1,83 million euro (amounting to 36<br />
euro per share). At the same time, in order to acquire full control over Polis Fondi SGR Spa,<br />
Sopaf acquired the equal interests of 9,8% each held by Banco Popolare, EM.RO., <strong>Banca</strong><br />
Popolare di Sondrio and <strong>Banca</strong> Popolare di Vicenza and the 2% interest held by Unione<br />
Fiduciaria. The effectiveness of the operation is subject to obtaining the necessary<br />
authorisations from the competent authorities for the purchase of control of the company and<br />
for amendments to the regulations of the Polis fund by the deadline of 30 th June 2009.<br />
592 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 11 – Property, plant and equipment - Item 110<br />
11.1 Property, plant and equipment: composition of assets valued at cost<br />
A ssets/amo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . A s s e t s us e d in o pe ra t io ns<br />
1.1 o wne d 2 19 .7 13 2 4 0 .4 8 7<br />
a) land 89.199 89.251<br />
b) buildings 94.593 97.556<br />
c) furnishings 10.236 12.155<br />
d) electro nic equipment 7.218 23.490<br />
e) o ther 18.467 18.035<br />
1.2 a c quire d t hro ugh f ina nc e le a s e s 2 8 .6 5 0 6 0 5<br />
a) land 14.134 -<br />
b) buildings 14.060 -<br />
c) furnishings - -<br />
d) electro nic equipment - -<br />
e) o ther 456 605<br />
T o t a l A 2 4 8 .3 6 3 2 4 1.0 9 2<br />
B . A s s e t s he ld f o r inv e s t m e nt<br />
2 .1 o wne d 4 2 2 .17 1 4 3 1.3 0 5<br />
a) land 181.832 181.755<br />
b) buildings 240.339 249.550<br />
2 .2 a c quire d t hro ugh f ina nc ia l le a s ing 6 .6 8 4 5 .8 0 8<br />
a) land 2.708 2.062<br />
b) buildings 3.976 3.746<br />
T o t a l B 4 2 8 .8 5 5 4 3 7 .113<br />
T o t a l ( A +B ) 6 7 7 .2 18 6 7 8 .2 0 5<br />
11.2 Property, plant and equipment: composition of assets at fair value or revalued<br />
The Bank has not exercised the option to designate property, plant and equipment at fair<br />
value.<br />
593 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
11.3 Property, plant and equipment used in operations: annual changes<br />
Land B uild ing s Furnishings<br />
Elect ro nic<br />
eq uip ment<br />
Ot her<br />
T o t a l<br />
A . G r o s s o p e ning b a l anc e s 10 0 . 0 3 0 16 6 . 110 7 8 .19 1 2 5 5 . 8 8 3 8 0 . 8 7 6 6 8 1. 0 9 0<br />
A .1 To t al net red uctio ns in value (10 .779 ) (6 8 .554 ) (6 6 .0 3 6 ) (2 3 2 .3 9 3) (6 2 .2 3 6 ) ( 4 3 9 . 9 9 8 )<br />
A . 2 N e t o p e ning b a l a nc e s 8 9 . 2 5 1 9 7 . 5 5 6 12 .15 5 2 3 . 4 9 0 18 . 6 4 0 2 4 1. 0 9 2<br />
B . I nc r e a s e s 14 .13 9 15 . 3 9 3 8 14 1. 8 14 6 . 9 9 3 3 9 .153<br />
B .1 Purchases 14 .13 4 15.3 8 5 8 14 1.8 14 2 .554 3 4 .70 1<br />
B .2 Cap it alised imp ro vement exp enses - - - - - -<br />
B .3 W rit e-b acks - - - - - -<br />
B .4 Po sit ive chang es in f air value reco g nised in: - - - - - -<br />
a) shareho ld ers’ eq uit y - - - - - -<br />
b ) inco me statement - - - - - -<br />
B .5 Po sit ive exchang e rat e diff erences - - - - - -<br />
B .6 Transf ers f ro m p ro p ert ies held for<br />
invest ment<br />
- - - - - -<br />
B .7 Ot her chang es 5 8 - - 4 .4 3 9 4 . 4 52<br />
C . D e c r ea s e s ( 5 7 ) ( 4 .2 9 6 ) ( 2 .73 3 ) ( 18 . 0 8 6 ) ( 6 .710 ) ( 3 1. 8 8 2 )<br />
C.1 Sales (57) (70 ) - (54) - ( 18 1)<br />
C.2 Dep reciat io n - (4 .2 2 6 ) (2 .53 8 ) (12 .6 16) (6 .6 8 1) ( 2 6 .0 6 1)<br />
C.3 Net imp airment lo sses reco g nised in: - - - - - -<br />
a) shareho ld ers’ eq uit y - - - - - -<br />
b ) inco me statement - - - - - -<br />
C.4 Neg ative changes in f air value reco g nised in: - - - - - -<br />
a) shareho ld ers’ eq uit y - - - - - -<br />
b ) inco me statement - - - - - -<br />
C.5 Neg at ive exchang e rat e d if f erences - - - - - -<br />
C.6 Transf ers t o : - - - - - -<br />
a) t ang ib le asset s held f o r invest ment - - - - - -<br />
b ) asset s held f o r sale - - - - - -<br />
C.7 Ot her chang es - - (19 5) (5.4 16) (2 9 ) ( 5. 6 4 0 )<br />
D . F i na l ne t b a l a nc e s 10 3 . 3 3 3 10 8 . 6 5 3 10 . 2 3 6 7 . 2 18 18 . 9 2 3 2 4 8 .3 6 3<br />
D.1 To t al net red uctio ns in value (10 .757) (6 4 .3 59 ) (53 .9 3 3 ) (2 0 3 .52 4) (12 4 .3 0 6 ) ( 4 5 6 . 8 7 9 )<br />
D . 2 F i na l g r o s s b a lanc e s 114 . 0 9 0 17 3 . 0 12 6 4 .16 9 2 10 . 7 4 2 14 3 . 2 2 9 7 0 5 . 2 4 2<br />
E. V aluation at co st - - - - - -<br />
594 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
11.4 Property, plant and equipment held for investment: annual changes<br />
31.12.2008<br />
Land<br />
Buildings<br />
A . Opening balances 183.817 253.296<br />
B . Increases 723 4.398<br />
B.1 Purchases 723 4.398<br />
B.2 Capitalised improvement expenses - -<br />
B.3 Positive changes in fair value - -<br />
B.4 Write backs - -<br />
B.5 Positive exchange rate differences - -<br />
B.6 Transfers from properties used in operations - -<br />
B.7 Other changes - -<br />
C . D ecreases - (13.379)<br />
C.1 Sales - -<br />
C.2 Depreciation - (13.379)<br />
C.3 Net negative changes in fair value - -<br />
C.4 Net impairment losses - -<br />
C.5 Negative exchange rate differences - -<br />
C.6 Transfers to other asset portfolios - -<br />
a) properties for operational use - -<br />
b) non current assets held for disposal - -<br />
C.7 Other changes - -<br />
D . F inal balances 184.540 244.315<br />
E. Fair valuation 192.332 328.021<br />
The fair value of properties was determined using an estimate based on generally accepted<br />
valuation principles, by applying the following valuation criteria:<br />
- the direct comparative or market method, based on a comparison between the asset in<br />
question and other similar assets subject to sale or currently on sale on the same market or<br />
competing markets;<br />
- the income method, based on the present value of potential market incomes for a<br />
property, obtained by capitalising the income at a market rate.<br />
595 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The table below gives the relative useful life for each category of asset used as the basis for<br />
calculating depreciation.<br />
Description Depreciation Useful life<br />
Land relating to properties NO Not depreciated<br />
Properties - Properties in leasing YES On basis of appraisal<br />
Lifting and weighing equipment YES 160 months<br />
Light constructions and scaffolding YES 120 months<br />
Furnishings sundry fixtures YES 120 months<br />
Ordinary office furnishings and equipment YES 100 months<br />
ATM installations YES 96 months<br />
Safes and strong rooms YES 80 months<br />
Machinery and sundry equipment YES 80 months<br />
Fire fighting equipment YES 40 months<br />
Sundry machinery, furnishings and fixtures YES 80 months<br />
Bullet proof counters or with bullet proof glass YES 60 months<br />
Personal computers YES 60 months<br />
Canteen equipment YES 48 months<br />
Special internal communication equipment YES 48 months<br />
Alarm systems YES 40 months<br />
Electrical and electronic office machinery YES 30 months<br />
Motor vehicles for transport YES 30 months<br />
Motor vehicles YES 24 months<br />
Leased motor vehicles YES Based on duration of contract<br />
596 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
11.5 Commitments for the purchase of property, plant and equipment<br />
A ssets / Values<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . A s s e t s us e d in o pe ra t io ns<br />
1.1 o wned 2.082 232<br />
- land - -<br />
- buildings 2.072 198<br />
- furnishings 10 34<br />
- electro nic equipment - -<br />
- o ther - -<br />
1.2 Finance lease - -<br />
- land - -<br />
- buildings - -<br />
- furnishings - -<br />
- electro nic equipment - -<br />
- o ther - -<br />
T o t a l A 2 .0 8 2 2 3 2<br />
B . A s s e t s he ld f o r inv e s t m e nt<br />
2.1 o wned - 501<br />
- land - -<br />
- buildings - 501<br />
2.2 In finance leases - -<br />
- land - -<br />
- buildings - -<br />
T o t a l B - 5 0 1<br />
T o t a l A +B 2 .0 8 2 7 3 3<br />
The amounts for buildings relate in part to commitments for programmed refurbishment work<br />
to be carried out and in part to the programmed purchase of a property for business use.<br />
597 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 12 – Intangible assets - Item 120<br />
12.1 Intangible assets: composition by type of asset<br />
A ssets/A mo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Finite life Indefinite life Finite life Indefinite life<br />
A .1 Go o dwill X 5 6 9 .0 5 8 X 5 6 9 .6 9 4<br />
A .2 Other intangible assets 2 7 .6 6 1 3 7 18 .9 4 2 3 7<br />
A .2.1 A ssets valued at co st: 27.661 37 18.942 37<br />
a) Internally generated intangible assets - - - -<br />
b) o ther assets 27.661 37 18.942 37<br />
A .2.2 A ssets at fair value - - - -<br />
a) Internally generated intangible assets - - - -<br />
b) o ther assets - - - -<br />
T o t a l 2 7 .6 6 1 5 6 9 .0 9 5 18 .9 4 2 5 6 9 .7 3 1<br />
12.2 Intangible assets: annual changes<br />
Other intangible assets:<br />
internally generated<br />
Other intangible assets: other<br />
Goodwill Finite life Indefinite life Finite life Indefinite life 31.12.2008<br />
A Opening balances 569.694 - - 51.879 37 621.610<br />
A.1 Total net reductions in value - - - (32.937) - (32.937)<br />
A .2 N et o pening balances 569.694 - - 18.942 37 588.673<br />
B . Increases - - - 31.037 - 31.037<br />
B.1 Purchases - - - 1.925 - 1.925<br />
B.2 Increases in intangible internal assets X - - - - -<br />
B.3 Write-backs X - - - - -<br />
B.4 Positive changes in fair value - - - - -<br />
- in shareholders’ equity X - - - - -<br />
- in income statement X - - - - -<br />
B.5 Positive exchange rate differences - - - - - -<br />
B.6 Other changes - - - 29.112 - 29.112<br />
C . D ecreases (636) - - (22.318) - (22.954)<br />
C.1 Sales - - - (262) - (262)<br />
C.2 Net impairment losses - - - (22.056) - (22.056)<br />
- Amortisation X - - (21.809) - (21.809)<br />
- Write downs - - - (247) - (247)<br />
- in shareholders’ equity X - - - - -<br />
- in income statement - - - (247) - (247)<br />
C.3 Negative changes in fair value - - - - -<br />
- in shareholders’ equity X - - - - -<br />
- in income statement X - - - - -<br />
C.4 Transfers to non current assets held for sale. - - - - - -<br />
C.5 Negative exchange rate differences - - - - - -<br />
C.6 Other changes (636) - - - - (636)<br />
D . F inal net balances 569.058 - - 27.661 37 596.756<br />
D.1 Total net impairment losses - - - - - -<br />
E. F inal gro ss balances 569.058 - - 27.661 37 596.756<br />
F. Valuation at cost 569.058 - - 27.662 37 596.757<br />
598 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Intangible assets include an amount of 29,1 million euro (stated within other increases), which<br />
relates to the identification within the amount of the interest acquired in the company By You<br />
of the intangible assets consisting of the value of the benefits accruing from relationships<br />
established with customers. The useful life was defined as lasting ten years starting from 31 st<br />
December 2008 with a relative annual amortisation charge of 2,9 million euro.<br />
The decrease in goodwill is the result of the elimination of goodwill in relation to the disposal<br />
of part of the interest held in <strong>UBI</strong> Pramerica SGR, while the write-down of 247 thousand euro<br />
is due to the loss in value of software no longer used following the centralisation of Group IT<br />
activities in the consortium company <strong>UBI</strong> Sistemi e Servizi.<br />
12.3 Other information<br />
Goodwill amounting to 569,7 million euro was recognised following the merger of the former<br />
Banche Popolari Unite Group and the former <strong>Banca</strong> Lombarda e Piemontese Group which<br />
occurred in 2007 (effective 1 st April 2007). That transaction was recognised in accordance with<br />
accounting standard IFRS 3, in application of the purchase method, according to which the<br />
acquirer (BPU) allocated the cost of the transaction at the fair value of the assets and liabilities<br />
of the acquired company (BLP), recognising what remained after the allocation within the item<br />
“goodwill”. More specifically that goodwill relates to the cash generating units of the former<br />
BPU Group which benefited from the synergies created by the business combination as<br />
follows:<br />
Company<br />
thousands of euro<br />
Centrobanca Spa 18.602<br />
<strong>Banca</strong> 24-7 Spa 55.032<br />
<strong>UBI</strong> Pramerica 8.759<br />
<strong>UBI</strong> Esaleasing 18.501<br />
BPU Assicurazione Danni 59.929<br />
<strong>Banca</strong> Popolare di Bergamo Spa 191.104<br />
<strong>Banca</strong> Popolare Commercio Industria Spa 128.635<br />
<strong>Banca</strong> Popolare di Ancona Spa 88.496<br />
Total 569.058<br />
In application of section 90 of IAS 36, the goodwill was tested for impairment by comparing its<br />
carrying value with the relative recoverable value. The impairment test was performed with the<br />
methodological assistance of an external appraiser of high standing. The value measurement<br />
used to calculate the recoverable amount of the business units (or groups of units) to which<br />
goodwill was allocated was that of their value in use or the fair value if the value in use was<br />
lower than the carrying amount. The value in use was estimated on the basis of pure income<br />
criteria using the same parameters and methods reported in the notes to the consolidated<br />
financial statements in section 13 Intangible assets – Item 130, which may be consulted ( 23 ).<br />
( 23 ) More specifically the notes to the consolidated financial statements may be consulted for:<br />
i. the methods used to estimate the future cash flows of the CGUs mentioned to which<br />
goodwill was allocated;<br />
ii. the discount rate used for the valuation calculated on the basis of a capital asset<br />
pricing model;<br />
iii.<br />
iv.<br />
the growth rate used in the terminal value,<br />
a sensitivity analysis of the result of the impairment test with respect to the basic<br />
assumptions affecting the value.<br />
599 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The results of the impairment tests were positive because the recoverable amounts were<br />
greater than the relative carrying amounts, which was also a consequence of the achievement<br />
of the synergies forecast in the Business Plan in 2008.<br />
The useful life used for calculating the amortisation of the other finite life intangible assets is<br />
reported below for each type of asset.<br />
31.12.2008<br />
Useful life<br />
N et value<br />
List of intangible assets<br />
- Software 36 months 1.273<br />
- Long term costs 80 months 188<br />
- Other intangible assets 120 months 26.201<br />
There were no contractual commitments to purchase intangible assets.<br />
600 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 13 – Tax assets and tax liabilities – Asset item 130 and liability<br />
item 80<br />
13.1 Assets for deferred tax: composition<br />
31.12.2008<br />
Tax realignment of goodwill from merger 183.919<br />
Write-down of AFS securities 22.469<br />
Property, plant and equipment - greater IAS depreciation and amortisation 8.607<br />
Net valuation of hedging derivative liabilities 8.029<br />
Other liabilities – debt for employee health policy 5.366<br />
Write down of loans to banks and customers and guarantees not deducted 4.499<br />
Hedging derivatives - Net revaluation hedged subordinated liabilities 3.861<br />
Provisions for liabilities and charges not deducted 4.577<br />
Goodwill on depository bank operations from group member companies 2.102<br />
Purchase price allocation - Bonds 1.822<br />
Long term expenses not deducted 1.190<br />
Property, plant and equipment - impairment losses on properties 962<br />
Mathematical reserve Separate Pension Fund Management former Acc. 21/3/89 893<br />
Net valuation of hedging derivative assets 729<br />
Loan write downs to be deducted on a straight line basis 548<br />
Extraordinary expenses not deducted 388<br />
Entertainment expenses 272<br />
Valuation of derivative liabilities to hedge AFS bonds 87<br />
Net valuation of hedged securities issued 73<br />
Total 250.393<br />
601 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
13.2 Liabilities for deferred taxes: composition<br />
31.12.2008<br />
Purchase price allocation - equity investments 59.842<br />
Provisions for non performing loans - write downs deducted off-balance sheet 19.849<br />
Property, plant and equipment - excess depreciation deducted off-balance sheet 15.463<br />
Revaluation of AFS securities 5.012<br />
Net revaluation for hedged subordinated liabilities 5.182<br />
Purchase price allocation - Properties 4.093<br />
Purchase price allocation - merger expenses 2.479<br />
Net revaluation due to banks hedged 2.218<br />
Net revaluation loans to banks hedged 1.882<br />
Intangibles. - leased properties recognised at fair value 1.813<br />
Property, plant and equipment - property and land revaluation on FTA 790<br />
Purchase price allocation - Bonds 722<br />
Other liabilities – debt for employee health policy 368<br />
Staff severance provision valuation 307<br />
Net revaluation AFS bonds hedged 272<br />
Other liabilities - discounting of income support fund debt to present values 147<br />
Capital gains subject to straight line treatment 118<br />
Valuation of equity investments under PEX regime 52<br />
Financial assets held for trading - Revaluation of equity investments under PEX regime 10<br />
Other miscellaneous 3<br />
Total 120.622<br />
602 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
13.3 Changes in deferred tax assets (balancing entry in income statement)<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Init ia l a m o unt 3 8 .7 6 7 2 7 .0 2 3<br />
Inc re a s e s 3 6 1.6 19 15 5 .2 2 6<br />
2.1 Deferred tax assets arising during the year 194.050 18.228<br />
a) relating to previo us years 1.513 1.265<br />
b) due to changes in acco unting po licies - -<br />
c) write backs - -<br />
d) o ther 192.537 16.963<br />
2.2 New taxes o r increases in tax rates 1 -<br />
2.3 Other increases 167.547 121.090<br />
2.4 B usiness co mbinatio n transactio ns 21 15.908<br />
D e c re a s e s ( 18 1.7 5 9 ) ( 14 3 .4 8 2 )<br />
3.1 Deferred taxes dereco gnised during the year (14.212) (18.117)<br />
a) reversals o f tem po rary differences (14.212) (18.117)<br />
b) write-do wns o f no n-reco verable item s - -<br />
c) due to changes in acco unting po licies - -<br />
3.2 Reductio n in tax rates - (4.275)<br />
3.3 Other decreases (167.547) (121.090)<br />
F ina l a m o unt 2 18 .6 2 7 3 8 .7 6 7<br />
Deferred tax assets are recorded in the accounts on the basis of the probability of there being<br />
sufficient future taxable income and also taking into account the consolidated tax regime<br />
adopted in accordance with articles 117 et seq of Presidential Decree No. 917/86. The<br />
recognition was made on the basis of the tax legislation in force.<br />
No deferred tax assets were recognised for write downs of equity investments which satisfied<br />
the requirements for participation exemption.<br />
The rates used for calculating deferred tax assets for IRES (corporation tax) and IRAP (local<br />
production tax) purposes are 27,50% and 4,82%, pursuant to Law No. 244/2007 (the 2008<br />
Finance Act).<br />
The initial balance is the amount for deferred tax assets created up until 2007 with the<br />
balancing entry in the income statement.<br />
Deferred tax assets recognised during the year amounted to 194.049 thousand euro and<br />
consisted of: 183.919 thousand euro from amortisation of goodwill deductible over the next<br />
nine years; 1.936 thousand euro from non deductible allocations to provisions; 1.512<br />
thousand euro from expenses deductible in the subsequent year; 1.207 thousand euro from<br />
the write-down of loans to banks and customers and of guarantees issued; 3.663 thousand<br />
euro from non deductible depreciation and amortisation; 42 thousand euro from the increase<br />
in the debt relating to health insurance; 117 thousand euro from costs relating to the increase<br />
in the mathematical reserve of the pension fund and 140 thousand euro from other costs.<br />
There were also adjustments to deferred tax assets not recognised in prior years amounting to<br />
1.513 thousand euro consisting of 1.422 thousand euro for end-of-period recognition of higher<br />
provisions on tangible assets for 2007 and of 91 thousand euro for adjustments to other<br />
smaller items.<br />
The other increases amounted to 167.547 thousand euro and consisted of prepaid IRES<br />
(corporation tax), relating to tax losses transferred under the tax consolidation (see article 117<br />
et seq of Presidential Decree No. 917/86), which the Bank opted for as the consolidating<br />
company together with other Group member companies.<br />
The sum from merger transactions, amounting to 21 thousand euro, consists of the balance<br />
brought forward for the deferred tax assets existing as at 31 st December 2007 in the accounts<br />
of the merged company Mercati Finanziari Sim Spa.<br />
Deferred tax assets derecognised during the year amounted to 14.212 thousand euro and<br />
603 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
consisted of: 2.470 thousand euro from the amount for the year relating to long term<br />
expenses; 458 thousand euro from revaluations of loans to banks and guarantees issued; 552<br />
thousand euro from adjustments to residual securities; 8.650 thousand euro from the use of<br />
provisions taxed in prior years; 130 thousand euro from recoveries resulting from pension<br />
fund payments; 45 thousand euro from the revaluation on a straight line basis of write-downs<br />
on loans; 148 thousand euro from entertainment expenses; 78 thousand euro from the<br />
correction of the prior misalignment existing on the staff severance provision; 115 thousand<br />
euro from the currency effect on interests in the participation exemption regime; 1.327<br />
thousand euro from the valuation of hedging derivatives and the relative items hedged; 239<br />
thousand euro from other assets maturing during 2008.<br />
The other decreases amounting to 167.547 thousand euro recognised against current tax<br />
liabilities are for the derecognition of deferred tax assets of the same amount entered under<br />
other increases as a result of the transfer of the tax loss to the fiscal consolidation as already<br />
reported.<br />
13.4 Changes in deferred taxes (balancing entry in income statement)<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. O pe ning ba la nc e 6 9 .4 7 6 2 2 .5 0 0<br />
2 . Inc re a s e s 15 .4 12 6 9 .8 4 1<br />
2.1 Deferred tax liabilities arising during the year 15.411 33.890<br />
a) relating to previo us years - 789<br />
b) due to changes in acco unting principles - -<br />
c) o ther 15.411 33.101<br />
2.2 New taxes o r increases in tax rates 1 -<br />
2.3 Other increases - -<br />
2.4 B usiness co mbinatio n transactio ns - 35.951<br />
3 . D e c re a s e s ( 3 5 .6 7 2 ) ( 2 2 .8 6 5 )<br />
3.1 Deferred taxes dereco gnised during the year (35.672) (14.873)<br />
a) reversals o f tempo rary differences (30.073) (14.873)<br />
b) due to changes in acco unting principles - -<br />
c) o ther (5.599) -<br />
3.2 Reductio n in tax rates - (7.745)<br />
3.3 Other decreases - (247)<br />
4 . F ina l ba la nc e 4 9 .2 16 6 9 .4 7 6<br />
Deferred taxes were recognised on the basis of temporary differences between the financial<br />
accounting value of an asset or liability and its value for tax purposes. The recognition was<br />
made on the basis of the tax legislation in force.<br />
As concerns revaluations of equity investments which satisfied the requirements for equity<br />
exemption, deferred taxes were recognised on the 5% taxable portion.<br />
No deferred taxes were recorded on reserves on which taxation is suspended, because no<br />
events occurred to remove the tax exemption regime.<br />
The rates used for calculating deferred taxes for IRES (corporation tax) and IRAP (local<br />
production tax) purposes are 27,50% and 4,82% pursuant to Law No. 244/2007 (the 2008<br />
Finance Act).<br />
The initial balance is the amount for “liabilities for deferred taxes” recognised in the<br />
cumulative provision until 2007 with the balancing entry in the income statement.<br />
Deferred taxes recognised during the year amounted to 15.411 thousand euro. They included<br />
13.845 thousand euro attributable to depreciation on tangible assets, 1.240 thousand euro<br />
attributable to charging merger expenses as part of the purchase price allocation in the<br />
previous year, 272 thousand euro attributable to the valuation of hedging derivatives and the<br />
relative items hedged and 54 thousand euro attributable to other smaller items.<br />
604 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Deferred taxes derecognised during the year amounted to 35.671 thousand euro and consisted<br />
of: 20.382 thousand euro from impairment of AFS equity investments revalued in prior years;<br />
130 thousand euro from instalments on capital gains realised in prior years; 2.556 thousand<br />
euro from adjustments to amounts remaining on securities; 1.253 thousand euro from the<br />
currency effect on interests in the participation exemption regime; 23 thousand euro from the<br />
use of the bad debt provision deducted off-balance sheet in prior years; 5.383 thousand euro<br />
from the valuation of hedging derivatives and the relative items hedged; 92 thousand euro<br />
from the return to taxation on a straight line basis for IRAP (local production tax) purposes of<br />
off-balance sheet deductions on tangible assets; 42 thousand euro from the taxable portion of<br />
the revaluation of interests in participation exemption regime; 211 thousand euro from the<br />
decrease in the debt for the “income support fund”.<br />
Deferred taxes relating to prior years were also derecognised amouning to 5.599 thousand<br />
euro attributable almost entirely to off-balance sheet deductions on property, plant and<br />
equipment and the staff severance provision.<br />
13.5 Changes in deferred tax assets (balancing entry in shareholders’ equity)<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. O pe ning ba la nc e 18 .3 8 6 2 5 .3 16<br />
2 . Inc re a s e s 2 2 .4 5 1 10 .6 8 1<br />
2.1 Deferred tax assets arising during the year 22.422 3.981<br />
a) relating to previo us years 2 47<br />
b) due to changes in acco unting principles - -<br />
c) o ther 22.420 3.934<br />
2.2 New taxes o r increases in tax rates 2 -<br />
2.3 Other increases - -<br />
2.4 B usiness co mbinatio n transactio ns 27 6.700<br />
3 . D e c re a s e s (9.0 7 1) (17 .6 11)<br />
3.1 Deferred taxes dereco gnised during the year (9.071) (14.855)<br />
a) reversals o f tempo rary differences (7.725) (14.855)<br />
b) due to changes in acco unting principles - -<br />
c) o ther (1.346) -<br />
3.2 Reductio n in tax rates - (2.756)<br />
3.3 Other decreases - -<br />
4 . F ina l ba la nc e 3 1.7 6 6 18 .3 8 6<br />
The initial balance is the amount for deferred tax assets created up until 2007 with the<br />
balancing entry in shareholders’ equity. The recognition was made on the basis of the tax<br />
legislation in force.<br />
Deferred tax assets recognised during the year amounting to 22.423 thousand euro were<br />
attributable entirely to the write down of AFS securities. Two thousand euro were also<br />
recognised as a result of the rate for IRAP on taxes recognised against the AFS reserve.<br />
The amount from business combination transactions amounting to 27 thousand euro<br />
represents the carry forward of the balance on deferred tax assets existing as at 31 st December<br />
2007 in the accounts of the merged company Mercati Finanziari Sim Spa.<br />
Deferred tax assets derecognised during the year amounted to 9.071 thousand euro and<br />
included 1.478 thousand euro against shareholders’ equity (1.347 thousand from the<br />
valuation of AFS securities and 131 thousand euro from the amortisation charge for goodwill)<br />
and 7.593 thousand euro against the income statement. This latter amount consisted of 4.418<br />
thousand euro from depreciation for the year on capitalised costs no longer capitalisable<br />
under IAS, 1.574 thousand euro for the valuation of bonds to which the purchase price was<br />
allocated in the previous year, 1.400 thousand euro from the correction of the prior<br />
605 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
misalignment existing on the staff severance provision and 201 thousand euro of other<br />
residual changes.<br />
13.6 Changes in deferred taxes (with balancing entry in shareholders’ equity)<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. O pe ning ba la nc e 7 8 .5 5 9 5 .7 2 2<br />
2 . Inc re a s e s 3 .5 7 4 2 4 2 .8 2 4<br />
2.1 Deferred tax liabilities arising during the year 3.572 3.910<br />
a) relating to previo us years - 415<br />
b) due to changes in acco unting po licies - -<br />
c) o ther 3.572 3.495<br />
2.2 New taxes o r increases in tax rates 2 -<br />
2.3 Other increases - -<br />
2.4 B usiness co mbinatio n transactio ns - 238.914<br />
3 . D e c re a s e s ( 10 .7 2 7 ) ( 16 9 .9 8 7 )<br />
3.1 Deferred taxes dereco gnised during the year (10.727) (4.157)<br />
a) reversals o f tempo rary differences (9.469) (4.157)<br />
b) due to changes in acco unting po licies - -<br />
c) o ther (1.258) -<br />
3.2 Reductio n in tax rates - (165.830)<br />
3.3 Other decreases - -<br />
4 . F ina l ba la nc e 7 1.4 0 6 7 8 .5 5 9<br />
The initial balance is the amount for deferred tax liabilities in the cumulative provision until<br />
2007 with the balancing entry in shareholders’ equity. The recognition was made on the basis<br />
of the tax legislation in force.<br />
Deferred taxes recognised during the year amounting to 3.572 thousand euro consisted of<br />
3.409 thousand euro from write-ups of AFS securities and 163 thousand euro for the<br />
valuation of the debt for the health policy. Two thousand euro were also recognised as a result<br />
of the rate for IRAP on taxes recognised against the AFS reserve.<br />
Deferred tax derecognised during the year amounted to 10.727 thousand euro and included<br />
1.249 thousand euro with the balancing entry in shareholders’ equity following the revaluation<br />
of AFS securities and 9.478 thousand euro with the balancing entry in the income statement.<br />
This latter amount consisted of 4.418 thousand euro from the valuation of bonds (407<br />
thousand euro), from amounts for the depreciation of property, plant and equipment (37<br />
thousand euro) and from equity investments (562 thousand euro) to which the purchase price<br />
had been allocated in the previous year, 8.325 thousand euro from the impairment of AFS<br />
equity investments revalued in prior years and 147 thousand euro for the correction of the<br />
prior misalignment existing on the staff severance provision.<br />
606 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 14 – Non current assets and liabilities and groups of assets and the associated<br />
liabilities held for disposal – Asset item 140 and liability item 90<br />
14.1 Non current assets and disposal groups held for sale: composition by type of asset<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . S ingle a s s e t s<br />
A .1 Equity investments 506 30.675<br />
A .2 P ro perty, plant and equipment 13.425 13.191<br />
A .3 Intangible assets - -<br />
A .4 Other no n current assets - -<br />
B . G ro ups o f a s s e t s ( dis c o nt inue d o pe ra t ing unit s )<br />
T o t a l A 13 .9 3 1 4 3 .8 6 6<br />
B .1 Financial assets held fo r trading - -<br />
B .2 Financial assets at fair value - -<br />
B .3 A vailable-fo r-sale financial assets - -<br />
B .4 Held-to -maturity financial assets - -<br />
B .5 Lo ans to banks - -<br />
B .6 Lo ans to custo mers - -<br />
B .7 Equity investments - -<br />
B .8 P ro perty, plant and equipment - -<br />
B .9 Intangible assets - -<br />
B .10 Other assets - -<br />
C . Lia bilit ie s a s s o c ia t e d wit h no n c urre nt a s s e t s he ld<br />
f o r dis po s a l.<br />
T o t a l B - -<br />
C.1 B o rro wings - -<br />
C.2 Securities - -<br />
C.3 Other liabilities - -<br />
D . Lia bilit ie s a s s o c ia t e d wit h dis po s a l gro ups he ld f o r<br />
dis po s a l<br />
T o t a l C - -<br />
D.1 Due to banks - -<br />
D.2 Due to custo mers - -<br />
D.3 Securities issued - -<br />
D.4 Financial liabilities held fo r trading - -<br />
D.5 Financial liabilities at fair value - -<br />
D.6 P ro visio ns - -<br />
D.7 Other liabilities - -<br />
T o t a l D - -<br />
Non current assets held for disposal consisting of equity investments (amounting to 506<br />
thousand euro) relate to the company Polis Fondi Sgr.<br />
607 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 15 – Other assets – Item 150<br />
15.1 Other assets: composition<br />
Descriptio n/Values 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Subsidiary undertakings Gro up VA T - 12.604<br />
B alance o f illiquid po rtfo lio item s 3.363 -<br />
Other assets - tax co nso lidatio n 376.297 597.787<br />
Items in transit 179.524 167.461<br />
Debto r item s in transit no t yet po sted to destinatio n acco unts 228.012 474.070<br />
B ills, securities, co upo ns and fees to be debited to custo mers and co rrespo ndents 27.851 88.774<br />
Cheques drawn o n the bank 1.223 643<br />
Tax credits o n withho lding tax 717 9.004<br />
Im pro vem ents to leased assets 432 661<br />
A ccrued inco m e and prepaid expenses no t attributed to specific items 8.505 12.513<br />
Sundry debto r items 30.178 41.091<br />
T o t a l 8 5 6 .10 2 1.4 0 4 .6 0 8<br />
608 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Liabilities<br />
Section 1 – Due to banks – Item 10<br />
1.1 Amounts due to banks: composition by type<br />
31.12.2008 31.12.2007<br />
Type of transaction/Amounts<br />
1. D ue to central banks 400.059 561.675<br />
2. D ue to banks 28.332.456 19.943.902<br />
2.11. Current accounts and deposits 4.096.110 3.154.793<br />
2.2 Term deposits 15.123.262 9.318.035<br />
2.3 Financing 1.254.205 1.721.929<br />
2.3.1 finance leases - -<br />
2.3.2 other 1.254.205 1.721.929<br />
2.4 Amounts due for commitments to repurchase own equity instruments - -<br />
2.5 Liabilities associated with assets transferred not derecognised 7.842.335 5.527.134<br />
2.5.1 repurchase agreements 7.842.335 5.527.134<br />
2.5.2 Other - -<br />
2.6 Other payables 16.544 222.011<br />
T o tal 28.732.515 20.505.577<br />
F air value 28.732.515 20.497.690<br />
1.2 Details of the item 10 “Due to banks”: subordinated liabilities<br />
Descrizio ne/Valo re<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . D ue t o ba nk s<br />
A 1 Subo rdinated 1.293.496 1.260.634<br />
Subordinated borrowings from banks relate entirely to term deposits made by Group member<br />
companies. A list of the individual positions is given in section 2 - Part F of this report which<br />
provides information on the composition of the supervisory capital.<br />
1.3 Details of the item 10 “Due to banks”: structured debts<br />
The Bank has issued no structured debt to other banks<br />
609 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1.4 Due to banks: liabilities subject to specific hedge<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. Liabilities subject to fair value specific hedge: 889.187 856.491<br />
a) interest rate risk 889.187 856.491<br />
b) currency risk - -<br />
c) multiple risks - -<br />
2. Liabilities subject to cash flo w specific hedge: - -<br />
a) interest rate risk - -<br />
b) currency risk - -<br />
c) o ther - -<br />
Amounts due to banks subject to specific fair value hedges on interest rate risk relate to<br />
positions with Group member companies. As summarised in section 5.1 of the part on the<br />
income statement, the net result of the valuation of hedging contracts and the underlying<br />
liability positions was a negative amount of 4,2 million euro, recognised within item 90 in the<br />
income statement – Net profit (loss) from hedging.<br />
610 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 2 – Due to customers – Item 20<br />
2.1 Amounts due to customers: composition by type<br />
T ype o f trans ac tio n/A m o unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. C urrent ac c o unts and depo s its 1.864.624 1.514.744<br />
2. T erm depo s its 448.212 444.550<br />
3. F unds adm inis tered o n behalf o f public bo dies - -<br />
4. F inanc ing 1.518.970 240.612<br />
4.1 F inanc e leas es 31.870 3.489<br />
4.2 Other 1.487.100 237.123<br />
5. A m o unts due fo r c o m m itm ents to repurc has e o wn equity<br />
ins trum ents<br />
- -<br />
6. Liabilities relating to as s ets trans ferred no t derec o gnis ed 1.939.182 330.749<br />
6.1 repurc has e agreem ents 1.939.182 330.749<br />
6.2 o ther - -<br />
7. Other am o unts due 42.907 341.811<br />
T o t a l 5 .8 13 .8 9 5 2 .8 7 2 .4 6 6<br />
F a ir V a lu e 5 .8 13 .8 9 5 2 .8 7 2 .4 6 6<br />
2.2 Details of item 20 “Due to customers”: subordinated liabilities<br />
Descriptio n/Value 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . D ue t o c us t o m e rs<br />
Subo rdinated liabilities 448.212 444.550<br />
A list of the individual positions is given in section 2 - Part F of this report which provides<br />
information on the composition of the supervisory capital.<br />
2.3 Details of item 20 “Due to customers”: structured debts<br />
The Bank has issued no structured debt to customers<br />
611 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2.4 Due to customers: liabilities subject to specific hedge<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. Liabilities subject to fair value specific hedge: 123.436 118.444<br />
a) interest rate risk 123.436 118.444<br />
b) currency risk - -<br />
c) multiple risks - -<br />
2. Liabilities subject to cash flo w specific hedge: - -<br />
a) interest rate risk - -<br />
b) currency risk - -<br />
c) o ther - -<br />
Amounts due to customers subject to specific fair value hedges on interest rate risk relate to<br />
positions with Group member companies. As summarised in section 5.1 of the part on the<br />
income statement, the net result of the valuation of hedging contracts and the underlying<br />
liability positions was a positive amount of 72 thousand euro, recognised within item 90 in the<br />
income statement – Net profit (loss) from hedging.<br />
2.5 Liabilities for finance leases<br />
A m o unt<br />
R e s idua l de bt t o le a s ing c o m pa nie s<br />
- within 1 year 1.580<br />
- between 1 and 5 years 5.306<br />
- m o re than 5 years 24.984<br />
612 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 3 – Securities issued – Item 30<br />
3.1 Securities issued: composition by type<br />
31.12.2008 31.12.2007<br />
Type of security/Amounts Carrying amount Fair value Carrying amount Fair value<br />
A . Listed securit ies 3.726.157 3.682.906 5.303.653 5.228.540<br />
1. Bonds 3.726.157 3.682.906 5.303.653 5.228.540<br />
- structured 616.179 639.354 549.980 546.038<br />
- other 3.109.978 3.043.552 4.753.673 4.682.502<br />
2. Other securities - - - -<br />
- structured - - - -<br />
- other - - - -<br />
B . Unlisted securities 10.402.027 10.209.230 9.353.600 9.264.195<br />
1. Bonds 10.402.027 10.209.230 9.353.600 9.264.195<br />
- structured 1.934.612 1.923.706 388.625 381.243<br />
- other 8.467.415 8.285.524 8.964.975 8.882.952<br />
2. Other securities - - - -<br />
- structured - - - -<br />
- other - - - -<br />
T o tale 14.128.184 13.892.136 14.657.253 14.492.735<br />
3.2 Details of the item 30 “securities issued”: subordinated securities<br />
Descriptio n/Value 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . S e c urit ie s is s ue d<br />
A 1 Securities issued - subo rdinated 3.033.293 2.858.328<br />
A 2. Securities issued - Co nvertible - -<br />
A list of the individual positions is given in section 2 - Part F of this report which provides<br />
information on the composition of the supervisory capital.<br />
3.3 Securities issued: securities subject to specific hedge<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. Securities subject to fair value specific hedge: 1.508.804 1.537.431<br />
a) interest rate risk 1.508.804 1.537.431<br />
b) currency risk - -<br />
c) multiple risks - -<br />
2. Securities subject to cash flo w specific hedge: - -<br />
a) interest rate risk - -<br />
b) currency risk - -<br />
c) o ther - -<br />
Specific fair value hedges of securities issued on interest rate risk generated a net negative<br />
result for the valuation of the hedging contracts and the underlying securities, as summarised<br />
613 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
in section 5.1 of the part on the income statement. It amounted to 5,3 million euro and was<br />
recognised within item 90 in the income statement – Net profit (loss) from hedging.<br />
614 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 4 – Financial liabilities held for trading – Item 40<br />
4.1 Financial liabilities held for trading: composition by type<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Type of transaction/Amounts NV FV FV* NV FV<br />
L UL L UL<br />
A . Liab ilit ies<br />
1. Due to banks - - - - - - -<br />
2. Due to customers 5.000 5.108 - 5.108 240.150 242.728 -<br />
3. Debt securities - - - - - -<br />
3.1 bonds - - - - - -<br />
3.1.1 Structured - - - X - - -<br />
3.1.2 Other bonds - - - X - - -<br />
3.2 Other securities - - - - - -<br />
3.2.1 Structured - - - X - - -<br />
3.2.2 Other - - - X - - -<br />
T o t al A 5.0 0 0 5.10 8 - 5.10 8 2 4 0 .150 2 4 2 .72 8 -<br />
B . D erivat ive inst r ument s<br />
1. Financial derivatives X 4.295 1.211.010 X 428 599.138<br />
1.1 For trading X 4.295 1.206.074 X X 428 577.168<br />
1.2 Connections with the fair value option X - - X X - -<br />
1.3 Other X - 4.936 X X - 21.970<br />
2. Credit Derivatives X - 1.774 X - 47<br />
2.1 For trading X - 1.774 X X - -<br />
2.2 Connections with the fair value option X - - X X - 47<br />
2.3 other X - - X X - -<br />
T o t al B X 4 .2 9 5 1.2 12 .78 4 X X 4 2 8 59 9 .18 5<br />
T o t al ( A +B ) 5.0 0 0 9 .4 0 3 1.2 12 .78 4 5.10 8 2 4 0 .150 2 4 3 .156 59 9 .18 5<br />
4.2 Details of item 40 “Financial liabilities held for trading”: subordinated liabilities<br />
The Bank has issued no subordinated financial liabilities held for trading.<br />
4.3 Details of item 40 “Financial liabilities held for trading”: structured debt<br />
The Bank has issued no structured financial liabilities held for trading.<br />
615 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
4.4 Financial liabilities held for trading: derivative instruments<br />
Typ e o f d erivative/Und erlying<br />
assets<br />
Interest rat es<br />
Currencies and<br />
g o ld<br />
Eq uit y<br />
instrument s<br />
Loans Ot her 3 1.12 .2 0 0 8 3 1.12 . 2 0 0 7<br />
A ) List e d d e r ivat ives<br />
1) F i nanc ial d e r ivat ives 9 7 - 4 .198 - - 4 .2 9 5 4 28<br />
• W ith exchang e o f p rincip al 5 - 4 .198 - - 4 .2 0 3 8<br />
- o p tio ns issued - - - - - - -<br />
- o t her d erivatives 5 - 4 .198 - - 4 .2 0 3 8<br />
• W itho ut exchang e of p rincip al 92 - - - - 9 2 4 20<br />
- o p tio ns issued 92 - - - - 9 2 -<br />
- o t her d erivatives - - - - - - 4 20<br />
2 ) C r e d it d e r i va t ives - - - - - - -<br />
• W ith exchang e o f p rincip al - - - - - - -<br />
• W itho ut exchang e of p rincip al - - - - - - -<br />
T o t al A ) 9 7 - 4 .19 8 - - 4 .2 9 5 4 2 8<br />
B ) U nli s t ed d e r ivat ives<br />
1) F i nanc ial d e r ivat ives 1.110 .2 09 9 1.72 4 76 - 9 .0 0 1 1.2 11.0 10 59 9 .138<br />
• W ith exchang e o f p rincip al - 9 1.72 4 76 - 17 9 1.817 8 8 .134<br />
- o p tio ns issued - 3 .19 2 76 - 17 3 .2 8 5 4 8 .52 1<br />
- o t her d erivatives - 8 8.53 2 - - - 8 8 .53 2 3 9 .6 13<br />
• W itho ut exchang e of p rincip al 1.110 .2 09 - - - 8 .9 84 1.119 .19 3 511.0 04<br />
- o p tio ns issued 4 4 .6 9 1 - - - 7.2 93 51.9 8 4 12 6 .173<br />
- o t her d erivatives 1.0 65.518 - - - 1.6 9 1 1.0 6 7.2 0 9 3 8 4 .8 3 1<br />
2 ) C r e d it d e r i va t ives 1.774 - - - - 1.774 4 7<br />
• W ith exchang e o f p rincip al 1.774 - - - - 1.774 4 7<br />
• W itho ut exchang e of p rincip al - - - - - - -<br />
T o t al B ) 1.111.9 8 3 9 1.72 4 7 6 - 9 .0 0 1 1. 2 12 .78 4 5 9 9 .18 5<br />
T o t a l ( A +B ) 1.112 .0 8 0 9 1.72 4 4 . 2 7 4 - 9 .0 0 1 1.2 17 .0 7 9 5 9 9 .6 13<br />
4.5 Financial liabilities held for trading (excluding “uncovered short positions”):<br />
annual changes<br />
The financial liabilities held for trading by the Bank consist solely of uncovered short positions<br />
and consequently no movements in these liabilities have been presented.<br />
616 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 6 – Hedging derivatives – Item 60<br />
6.1 Hedging derivatives: composition by type of contract and underlying assets<br />
Type of derivative/Underlying assets<br />
Interest rates<br />
Currencies and<br />
gold<br />
Equity<br />
instruments<br />
Loans Other 3 1.12 .2 0 0 8<br />
A ) List ed d er ivat ives<br />
1) F inancial d er ivat ives - - - - - -<br />
• With exchange of principal - - - - - -<br />
- options issued - - - - - -<br />
- other derivatives - - - - - -<br />
• Without exchange of principal - - - - - -<br />
- options issued - - - - - -<br />
- other derivatives - - - - - -<br />
2 ) C r ed it d er ivat ives - - - - - -<br />
• With exchange of principal - - - - - -<br />
• Without exchange of principal - - - - - -<br />
T o t al A ) - - - - - -<br />
B ) U nlist ed d er ivat ives<br />
1) F inancial d er ivat ives 74.820 - - - - 74.820<br />
• With exchange of principal - - - - - -<br />
- options issued - - - - - -<br />
- other derivatives - - - - - -<br />
• Without exchange of principal 74.820 - - - - 74.820<br />
- options issued - - - - - -<br />
- other derivatives 74.820 - - - - 74.820<br />
2 ) C r ed it d er ivat ives - - - - - -<br />
• With exchange of principal - - - - - -<br />
• Without exchange of principal - - - - - -<br />
T o t al B ) 74 .8 2 0 - - - - 74 .8 2 0<br />
T o t al ( A +B ) ( 3 1.12 .2 0 0 8 ) 74 .8 2 0 - - - - 74 .8 2 0<br />
T o t al ( A +B ) ( 3 1.12 .2 0 0 7) 54 .0 0 1 - - - - 54 .0 0 1<br />
617 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
6.2 Hedging Derivatives: composition by portfolios hedged and type of hedging<br />
Fair Value<br />
Cash flow<br />
Specific<br />
Transactions /Type of hedging Interest rate risk Currency risk Credit risk Price risk M ultiple risks M acro-hedge Specific M acro-hedge<br />
1. Available-for-sale financial assets 51.194 - - - - - - -<br />
2. Loans 6.631 - - - - - - -<br />
3. Held-to-maturity financial assets - - - - - - - -<br />
4. Portfolio - - - - - - - -<br />
5. Foreign investments X X X X X X X<br />
T o t al asset s 57.8 2 5 - - - - - - -<br />
1. Financial liabilities 16.995 - - - - - - -<br />
2. Portfolio - - - - - - - -<br />
T o t al liab ilit ies 16 .9 9 5 - - - - - - -<br />
1. Expected transactions X X X X X X - -<br />
Section 7 – Fair value change in macro-hedged financial liabilities – Item 70<br />
7.1 Fair value change in hedged liabilities: composition by portfolios hedged<br />
The Bank has no contracts for macro-hedging of financial liabilities.<br />
Section 8 – Tax liabilities – Item 80<br />
Details of tax liabilities are reported in the assets section 13.<br />
Section 9 – Liabilities associated with groups of assets held for disposal – Item 90<br />
There are no liabilities associated with groups of assets held for disposal.<br />
618 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 10 – Other liabilities – Item 100<br />
10.1 Other liabilities: composition<br />
Descriptio n/ Values 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Subsidiary undertakings Gro up VA T 240 12.939<br />
B alance o f illiquid po rtfo lio items - 158.527<br />
Other liabilities - tax co nso lidatio n 308.297 422.730<br />
Credit items in transit in departments o r branches pending po sting to acco unts 426.049 341.361<br />
Sums available to custo mers and banks fo r transactio ns in the co urse o f payment 139.279 164.707<br />
Items payable to tax autho rities o n behalf o f third parties 9.356 13.523<br />
Items in transit 11.878 28.893<br />
Tax withheld o n inco me paid to third parties 7.078 7.364<br />
Indirect taxes payable 605 1.229<br />
Dividends and sums due to shareho lders 1.672 976<br />
A ccrued expenses and deferred inco me no t attributed to specific items 13.574 16.208<br />
Debt fo r educatio nal, cultural, charitable and so cial purpo ses 11.262 4.415<br />
Debt fo r guarantees and co mmitments 11.972 11.313<br />
Due to staff 93.729 137.120<br />
Residual credito r items 151.384 100.453<br />
T o t a l 1.18 6 .3 7 5 1.4 2 1.7 5 8<br />
619 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 11 – Staff severance provision – Item 110<br />
11.1 Annual changes in staff severance payments<br />
31.12.2008 31.12.2007<br />
A . Opening balances 51.037 52.193<br />
B . Increases 3.881 19.947<br />
B.1 Allocation for the year 10 1.633<br />
B.2 Other changes 3.871 7.478<br />
B.3 Business combinations - 10.836<br />
C . D ecreases (10.435) (21.103)<br />
C.1 Payments made (10.268) (11.354)<br />
C.2 Other decreases (167) (9.749)<br />
D . F inal balances 44.483 51.037<br />
Item B.2, “Other changes”, shows the interest expense resulting from discounting staff<br />
severance provisions to present value (time reversal).<br />
11.2 Other information<br />
The demographic and actuarial hypotheses adopted to value the staff severance<br />
provision and leaving entitlements<br />
31.12.2008<br />
Mortality rate<br />
Turnover rate<br />
Staff severance payment<br />
advances<br />
The “RGS48” tables (prepared by the State General Accounting Office) were<br />
used appropriately modified on the basis of historical data for the Group<br />
Table obtained from appropriate smoothing of historical data for the Group in<br />
recent years, also taking account of redundancies forecast under the<br />
Business Plan<br />
The probability of advance payments, calculated on the basis of historical data<br />
for the Group, is 1%, while the average amount requested is 40% of the<br />
available provision.<br />
Inflation rate Long term forecasts of the scenario for inflation led to the use of a rate of 2%.<br />
Present value discount rate The euro swap yield curve as at 31 st December 2008 was used. This is<br />
because the rates used not only possess the characteristics of prudence<br />
always required for actuarial valuations, but they are also those which comply<br />
most closely with the last part of section 78 of IAS 19.<br />
On the other hand the turbulence on financial markets in the months<br />
immediately preceding the valuation date which still persists, led to both a<br />
significant compression in euro swap rates and to an equally significant<br />
increase in the risk of default for government and corporate securities.<br />
In consideration of the above it was considered that the sum of the euro swap<br />
curve, appropriately “bootstrapped”, and the credit spread curve,<br />
“Cash_Govt_of_Italy_31122008” (which represents a curve of implicit credit<br />
spreads obtained from quotations of benchmark Italian government<br />
securities), would constitute the best interpretation of present value<br />
discounting according to IAS 39 for the valuation as at 31 st December 2008.<br />
620 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
31.12.2007<br />
Mortality rate<br />
Turnover rate<br />
Staff severance payment<br />
advances<br />
Inflation rate<br />
Present value discount rate<br />
The 1999 ISTAT (Italian Statistics Office) tables and “RGS48” tables<br />
(prepared by the State General Accounting Office) were used appropriately<br />
modified on the basis of historical data for the Group<br />
Table obtained from appropriate smoothing of historical data for the Group in<br />
recent years, also taking account of redundancies forecast under the<br />
Business Plan.<br />
The probability of advance payments, calculated on the basis of historical<br />
data for the Group, lies between 1% and 4,2% while the average amount<br />
requested is between 40% and 70%.<br />
Long term forecasts of the scenario for inflation led to the use of rates of<br />
between1,7% and 2%.<br />
The yield curve used was calculated as the average of the swap, bid and ask<br />
rates as at 31/12/2007, appropriately interpolated at intermediate maturity<br />
dates and the risk free yield curve relating to prime quality (up to A+)<br />
corporate bonds on the euro market – source Bloomberg.<br />
621 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 12 – Provisions for liabilities and charges – Item 120<br />
12.1 Provisions for liabilities and charges: composition<br />
Item s/A m o unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. Co mpany pensio n fund - -<br />
2. Other pro visio ns fo r liabilities and charges 10 .3 2 9 8 .9 9 3<br />
2.1 litigatio n 4.926 3.205<br />
2.2 staff co sts - -<br />
2.3 o ther 5.403 5.788<br />
T o t a l 10 .3 2 9 8 .9 9 3<br />
12.2 Provisions for liabilities and charges: annual changes<br />
P ensio n funds Other pro visio ns T o t a l<br />
A . O pe ning ba la nc e s - 8 .9 9 3 8 .9 9 3<br />
B . Inc re a s e s - 5 .14 7 5 .14 7<br />
B .1 A llo catio n fo r the year - 5.038 5.038<br />
B .2 Changes due to passage o f time - 53 53<br />
B .3 Changes due to changes in disco unt rate - 10 10<br />
B .4 Other changes - 46 46<br />
B .5 B usiness co m binatio ns - - -<br />
C . D e c re a s e s - ( 3 .8 11) ( 3 .8 11)<br />
C.1 Use fo r the year - (3.443) (3.443)<br />
C.2 Changes due to changes in disco unt rate - - -<br />
C.3 Other changes - (368) (368)<br />
C.5 B usiness co m binatio ns - - -<br />
D . F ina l ba la nc e s - 10 .3 2 9 10 .3 2 9<br />
12.3 Defined benefit company pension funds<br />
There are no defined benefit company pension funds.<br />
622 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
12.4 Provisions for liabilities and charges – other provisions<br />
Items/Co mpo nents<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
O t he r pro v is io ns f o r lia bilit ie s a nd c ha rge s<br />
1. P ro visio n fo r interest, co mmissio n and expense adjustments - 3.000<br />
2. Other pro visio ns fo r liabilities and charges 5.403 2.788<br />
T o t a l 5 .4 0 3 5 .7 8 8<br />
One of the most significant items within other provisions for liabilities and charges is an<br />
amount of 1,5 million euro for possible payments in relation to securities issued by Icelandic<br />
banks.<br />
Provisions for liabilities and charges: additional information – Contingent liabilities<br />
C o ntingent liabilities<br />
Staff litigatio n 731<br />
Other litigatio n 3.975<br />
Tax litigatio n 12.400<br />
T o t a l 17 .10 6<br />
The liabilities governed by IAS 37, characterised by the absence of certainty over the timing or<br />
the amount of future expense required to settle presumed liabilities, can be classified as being<br />
of two types:<br />
<br />
<br />
probable liabilities;<br />
contingent liabilities (possible or remote).<br />
The correct identification of the nature of liabilities is of fundamental importance because it<br />
determines whether or not the risk deriving from an obligation must be recognised in the<br />
financial statements<br />
The recognition of a provision for liabilities and charges in the financial statements represents<br />
a probable liability of uncertain 24 timing or amount and the amount recognised in the<br />
accounts represents the best estimate of the expenditure required to settle the obligation<br />
existing at the balance sheet date and reflects the risks and uncertainties that inevitably<br />
characterise a number of different facts and circumstances<br />
The amount of a provision is measured by the present value of the expenditure that it is<br />
assumed will be necessary to settle the obligation where the effect of the present value is<br />
significant.<br />
Future events that might affect the amount required to settle the obligation are only taken into<br />
consideration if there is sufficient objective evidence that they will occur.<br />
The measurement of provisions is periodically reviewed to verify that they are reasonable.<br />
The general and theoretical legal parameters which the govern the process of determining the<br />
present value of provisions, which is performed for each single case of litigation and for the<br />
relative residual life, are given below:<br />
24<br />
Details of the criteria for recognising provisions are given in Part A.2 of the notes to the financial statements “The<br />
main balance sheet items”, section 12 “Provisions for liabilities and charges”, which may be consulted.<br />
623 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
• type/nature of the litigation, to be assessed in the light of the legal claims formulated by<br />
the counterparty. Various “macro-families” are identifiable in this respect such as corporate<br />
litigation, labour law cases, financial intermediation litigation, litigation generically definable<br />
as compensation for damages (resulting from non performance of contract obligations, illegal<br />
actions, violation of regulations) etc.;<br />
• degree of “innovation” in the litigation, to be assessed by considering whether the issues<br />
turn on matters already known and “weighed” by the Bank or on completely new matters<br />
which therefore require study (e.g. resulting from a change in the legislation or in legal<br />
orientations);<br />
• degree of “strategic importance” of the litigation to the bank: for commercial reasons<br />
the Bank might for example decide to end a case very rapidly even if it had grounds of defence<br />
that would allow it to resist in court for a long time.<br />
• average length of litigation, to be weighted taking account of geographical factors, which is<br />
to say the location of the jurisdiction in which the case is tried and the state of progress of the<br />
trial. In this respect a decision must be taken on the source of the statistics from which data is<br />
obtained and assistance can be obtained from the lawyers who represent the Bank in litigation<br />
and who have direct knowledge of the jurisdictions concerned for each case;<br />
• the “nature” of the counterparty (e.g. a private individual or a legal entity, a professional<br />
operator or not, a consumer or not. etc.).<br />
A contingent liability is defined as:<br />
a possible obligation, the result of past events, the existence of which will only be confirmed<br />
by the occurrence or (non occurrence) of future events that are not totally under the control<br />
of the enterprise;<br />
a present obligation that is the result of past events, but which is not recognised in the<br />
accounts because:<br />
− it is improbable that financial resources will be needed to settle the obligation;<br />
− the amount of the obligation cannot be measured with sufficient reliability.<br />
Contingent liabilities are not recognised in the financial statements but are only reported,<br />
unless they are considered a remote possibility. In the latter case, in compliance with IAS 37,<br />
no information is given on them in the notes to the financial statements<br />
Amounts for contingent liabilities are also subject to periodical verification because it is<br />
possible that events may occur which make them remote or probable with the possible need,<br />
in the latter case, to make a provision for them in the financial statements<br />
During the course of 2008, following the tax audit of a Group member company (BPB Property)<br />
by the tax authorities, <strong>UBI</strong> <strong>Banca</strong> received a notice of tax assessment (not preceded by an<br />
audit report) concerning the contribution of company operations to Immobiliare Serico<br />
performed by BPU <strong>Banca</strong> (now <strong>UBI</strong>) in 2003. Similar notices of tax assessment were also<br />
received by two other Group member companies which had made contributions of the same<br />
type. That tax assessment contested the contribution of the company operations and<br />
reclassified it as the contribution of a number of properties with consequent effects for IRES,<br />
IRAP and VAT purposes, because ordinary instead of concessionary rates therefore applied.<br />
The tax assessment in question quantified the increased taxes, fines and interest for <strong>UBI</strong><br />
<strong>Banca</strong> at 12,4 million euro.<br />
<strong>UBI</strong> <strong>Banca</strong>, assisted by expert professional external opinion, considered that there were<br />
grounds in fact and in law to believe that the interpretation of the tax authorities that the<br />
assets did not constitute a unit of company operations is without foundation and therefore no<br />
provision was made for this item. With regard to the presumed date of pay-out it is probable<br />
that the various cases will be concluded within a time period of between one and five years.<br />
624 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 13 – Reimbursable shares – Item 140<br />
13.1 Reimbursable shares: composition<br />
No shares have been issued with reimbursement clauses.<br />
Section 14 – Shareholders’ equity – Items 130, 150, 160, 170, 180, 190 and 200<br />
14.1 Shareholders’ equity: composition<br />
Item s/A m o unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. Share capital 1.597.865 1.597.865<br />
2. Share premium s 7.100.378 7.100.378<br />
3. Reserves 1.623.711 1.411.660<br />
4. (Own shares) - -<br />
5. Valuatio n reserves 12.842 24.456<br />
6. Capital instrum ents - -<br />
7. P ro fit (lo ss) fo r the year 23.886 827.781<br />
T o t a l 10 .3 5 8 .6 8 2 10 .9 6 2 .14 0<br />
14.2 Share capital and own shares: composition<br />
31/ 12/ 2008 31/ 12/ 2007<br />
No. ordinary shares 639.145.902 639.145.902<br />
with nominal value in euro per share 2,50 2,50<br />
No. own shares - -<br />
with nominal value in euro per share - -<br />
625 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
14.3 Share capital – Number of shares: annual changes<br />
Items/Types Ordinary Other<br />
A . S ha re s e xis t ing a t t he be ginning o f t he ye a r 6 3 9 .14 5 .9 0 2 -<br />
- fully paid up 639.145.902 -<br />
- no t fully paid up - -<br />
A .1 Own shares (-) - -<br />
B .2 O ut s t a nding s ha re s : init ia l num be r 6 3 9 .14 5 .9 0 2 -<br />
B . Inc re a s e s - -<br />
B .1 New issues - -<br />
- by paym ent: - -<br />
- business co m binatio n transactio ns - -<br />
- co nversio n o f bo nds - -<br />
- exercise o f warrants - -<br />
- o ther - -<br />
- free o f charge: - -<br />
- in favo ur o f em plo yees - -<br />
- in favo ur o f directo rs - -<br />
- o ther - -<br />
B .2 Sale o f o wn shares - -<br />
B .3 Other changes - -<br />
C . D e c re a s e s - -<br />
C.1 Cancellatio n - -<br />
C.2 P urchase o f o wn shares - -<br />
C.3 Co m pany dispo sal o peratio ns - -<br />
C. 4 Other changes - -<br />
D . O ut s t a nding s ha re s : f ina l ho ldings 6 3 9 .14 5 .9 0 2 -<br />
D.1 Own shares (+) - -<br />
D. 2 shares existing at the end o f the year 639.145.902 -<br />
- fully paid up 639.145.902 -<br />
- no t fully paid up - -<br />
14.4 Share capital: other information<br />
The share capital consists of 639.145.902 ordinary shares with a nominal value of 2,50 euro<br />
each. There are no rights, privileges and restrictions for each category of shares, including<br />
restrictions on the distribution of dividends and the reimbursement of the share capital.<br />
The issues that were made in 2007 relate exclusively to the increase in the share capital as a<br />
consequence of the merger which took effect on 1 st April 2007.<br />
14.5 Reserves of profits: other information<br />
Details of profit reserves included in shareholders’ equity are given below; details of the nature<br />
and purpose of each reserve are given in the table contained in Part F, “Information on<br />
capital”.<br />
626 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
31.12.2008 31.12.2007<br />
Legal reserve 473.036 390.258<br />
Reserve under Art. 22 Legislative Decree No. 153/1999 36.494 36.494<br />
Extraordinary reserve 814.051 680.068<br />
Reserve for the purchase of own shares available 64.203 64.203<br />
Taxed profit reserve 4 4<br />
Reserve under Art. 13 c.6 Legislative Decree No. 124/1993 762 762<br />
Reserve under art. 6 Legislative Decree No. 38/2005 2.268 -<br />
Reserve for amendment of Art. 52 of Corporate By-Laws - 7.983<br />
Retained profit 262 -<br />
Reserves of profits 1.391.080 1.179.772<br />
Other reserves: other information<br />
31.12.2008 31.12.2007<br />
Reserve for valuation of equity investments valued by the equity method 12.153 12.153<br />
Reserve for reversal of prior year depreciation and amortisation 61.649 61.649<br />
Reserve under art. 7 paragraph 2 Law no. 218/1990 75.213 75.213<br />
Reserve under Art. 7 paragraph 3 Law no. 218/1990 71.885 71.885<br />
Reserves for transactions under common control -4.754 -5.498<br />
Reserves for supplementary pension reforms -3.618 -3.618<br />
Other reserves 20.104 20.104<br />
Other reserves 232.632 231.888<br />
With regard to the composition of other reserves, the deed for the merger of the company<br />
Mercati Finanziari Società di Intermediazione Mobiliare Spa into <strong>UBI</strong> <strong>Banca</strong> was signed on 29 th<br />
February 2008. The effectiveness of the merger was backdated for tax and accounting<br />
purposes to 1 st January 2008. Ownership of 100% of the merged company by <strong>UBI</strong> <strong>Banca</strong> led to<br />
an accounting treatment of the transaction in a framework of mergers of entities under<br />
common control based on the “preliminary orientations on IFRS” of the Italian National<br />
Association of Auditors. As already described in the footnote to the statement of changes in<br />
shareholders’ equity, the loss on the merger that arose, amounting to euro 62.511, was<br />
recognised as a decrease in other equity reserves (Reserve for transactions under common<br />
control).<br />
14.6 Capital instruments: composition and annual changes<br />
There are no capital instruments.<br />
627 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
14.7 Valuation reserves: composition<br />
Items / Co mpo nents 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. A vailable-fo r-sale financial assets (16.892) (5.502)<br />
2. P lant, pro perty and equipment - -<br />
3. Intangible assets - -<br />
4. Hedging o f fo reign investments - -<br />
5. Cash flo w hedges - -<br />
6. Exchange rate differences (243) (243)<br />
7. A ctuarial gains/lo sses o n staff severance pro visio n 680 904<br />
8. Special revaluatio n laws 29.297 29.297<br />
T o t a l 12 .8 4 2 2 4 .4 5 6<br />
14.8 Valuation reserves: annual changes<br />
A vailable-fo r-<br />
sale financial<br />
assets<br />
P ro perty, plant<br />
and equipment<br />
Intangible<br />
assets<br />
Fo reign<br />
investment<br />
hedges<br />
Cash flo w<br />
hedges<br />
Exchange rate<br />
differences<br />
P ro fits (+)<br />
Lo sses (-)<br />
actuarial<br />
Special<br />
revaluatio n<br />
laws<br />
A . O pe ning ba la nc e s ( 5 .5 0 2 ) - - - - ( 2 4 3 ) 9 0 4 2 9 .2 9 7<br />
B . Increases 6 1.8 9 6 - - - - - 4 2 9 -<br />
B .1 Increases in fair value 17.414 - - - - - 429 X<br />
B .2 Other changes 44.482 - - - - - - -<br />
C. Decreases ( 7 3 .2 8 6 ) - - - - - ( 6 5 3 ) -<br />
C. 1 Decreases in fair value (55.997) - - - - - (653) X<br />
C.2 Other changes (17.289) - - - - - - -<br />
D . F ina l ba la nc e s ( 16 .8 9 2 ) - - - - ( 2 4 3 ) 6 8 0 2 9 .2 9 7<br />
628 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
14.9 Valuation reserves for available-for-sale financial assets: composition<br />
A ssets/A mo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
P o sitive reserve Negative reserve P o sitive reserve Negative reserve<br />
1. Debt securities 295 (40.866) 582 (7.755)<br />
2. Equity instruments 36.917 (319) 44.389 (38.194)<br />
3. Units in O.I.C.R. 2.037 (14.956) 1.632 (6.156)<br />
4. Financing - - - -<br />
T o t a l 3 9 .2 4 9 ( 5 6 .14 1) 4 6 .6 0 3 ( 5 2 .10 5 )<br />
14.10 Valuation reserves for available-for-sale financial assets: annual changes<br />
Debt securities<br />
Equity<br />
instruments<br />
Units in O.I.C.R<br />
(co llect ive<br />
invest ment<br />
instrument s)<br />
F inancing<br />
A . O pe ning b a la n c e s ( 7 .17 3 ) 6 .19 5 ( 4 .5 2 4 ) -<br />
2 . P o s it iv e c ha nge s 3 .5 5 7 5 7 .7 11 6 2 8 -<br />
2.1 Increases in fair value 437 16.350 627 -<br />
2.2 Transfer to inco me statem ent o f negative reserves 3.120 40.508 - -<br />
- fo r im pairm ent 3.086 40.508 - -<br />
- fro m dispo sal 34 - - -<br />
2.3 Other changes - 853 1 -<br />
3 . N e g a t iv e c ha nge s ( 3 6 .9 5 5 ) ( 2 7 .3 0 8 ) ( 9 .0 2 3 ) -<br />
3.1 Decrease in fair value (35.947) (11.032) (9.018) -<br />
3.2 Transfer to inco me statem ent o f po sitive reserves: fro m dispo sal - (5.697) (5) -<br />
3.3 Impairment lo sses - (8.070) - -<br />
3.4 Other changes (1.008) (2.509) - -<br />
4 . C lo s ing b a la nc e s ( 4 0 .5 7 1) 3 6 .5 9 8 ( 12 .9 19 ) -<br />
Movements which result in a transfer of reserves to the income statement due to disposal or<br />
impairment relate to amounts before tax. The movements for the tax effects in question are<br />
reported in the line items for other changes.<br />
Following on from the footnote to table 4.5 in section 4 of the part on assets where positions<br />
written-down for impairment are reported, details of the corresponding effects on equity<br />
reserves are as it follows:<br />
Transfer of negative reserves<br />
for w rite-dow n due to impairment<br />
Elimination of positive reserves<br />
for w rite-dow n due to impairment<br />
Equity instruments:<br />
<strong>Banca</strong> Intesa Sanpaolo Spa (40.508)<br />
London Stock Exchange 7.286<br />
A2A Spa 784<br />
(40.508) 8.070<br />
Debt securities:<br />
UBS AG Jersey 08/15 ZC (3.086)<br />
629 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
OTHER INFORMATION<br />
1. Guarantees granted and commitments<br />
T ransactio ns 31/ 12/ 2008 31/ 12/ 2007<br />
1) Guarantees granted of a financial nature 2.067.781 4.301.137<br />
a) Banks 1.208.772 3.534.992<br />
b) Customers 859.009 766.145<br />
2) Guarantees of a commercial nature 1.671.013 1.578.783<br />
a) Banks 1.190.260 883.437<br />
b) Customers 480.753 695.346<br />
3) Irrevocable commitments to pay funds 341.017 458.778<br />
a) Banks 308.960 406.763<br />
i) of certain use 308.960 406.763<br />
ii) of uncertain use - -<br />
b) Customers 32.057 52.015<br />
i) of certain use 32.057 47.973<br />
ii) of uncertain use - 4.042<br />
4) Commitments underlying credit derivatives: protection sales 65.000 -<br />
5) Assets pledged to guarantee obligations to third parties - 19.893<br />
6) Other commitments 284.217 524.425<br />
T o tal 4.429.028 6.883.016<br />
Guarantees granted to banks are attributable mainly to banks and other companies in the<br />
Group.<br />
630 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2. Assets pledged to secure own liabilities and commitments<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
P o rtfo lio s<br />
1. Financial assets held fo r trading 882.704 1.199.012<br />
2. Financial assets at fair value - -<br />
3. A vailable-fo r-sale financial assets 2.017.492 703.600<br />
4. Held-to -m aturity financial assets 1.619.076 1.127.190<br />
5. Lo ans to banks 6.839.384 3.705.651<br />
6. Lo ans to custo m ers - -<br />
7. P ro perty, plant and equipm ent - -<br />
The financial assets contained in the table relate to own securities pledged to guarantee<br />
liabilities and commitments of the Bank as follows:<br />
Portfolios To guarantee Ow n securities<br />
Liabilities or commitments issued by third parties issued by banks in the group<br />
Financial assets for trading: Bank of Italy advances 91.217<br />
Repurchase agreements 787.634<br />
Other transactions 3.853<br />
882.704<br />
Financial assets for-sale: Bank of Italy advances 1.020.356<br />
Repurchase agreements 911.461<br />
Issue of bankers' drafts 35.685<br />
Other transactions 49.990<br />
2.017.492<br />
Financial assets held to maturity: Bank of Italy advances 256.957<br />
Repurchase agreements 1.319.492<br />
Issue of bankers' drafts 12.676<br />
Other transactions 29.951<br />
1.619.076<br />
Loans to banks: Repurchase agreements 6.839.384<br />
Securities acquired through reverse repurchase agreements, written principally by Group<br />
member companies, were used in part, for a nominal amount of 533 million euro, as the<br />
underlying collateral in repurchase agreements entered into with the ECB and in part for a<br />
nominal amount of 2.674 million euro, as collateral for intraday advances with the Bank of<br />
Italy.<br />
631 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
3. Information on operational leasing<br />
The Bank is not a party to any operational leasing contracts.<br />
4. Administration and intermediation on behalf of third parties<br />
Type o f services<br />
A m o unt<br />
1. T ra ding in f ina nc ia l ins t rum e nt s o n be ha lf o f t hird pa rt ie s<br />
a) P urchases<br />
1. settled 5.785.682<br />
2. no t settled 18.932<br />
b) Sales<br />
1. settled 2.794.770<br />
2. no t settled 12.483<br />
2 . P o rt f o lio m a na ge m e nt s<br />
a) Individual 902<br />
b) co llective -<br />
3 . C us t o dy a nd a dm inis t ra t io n o f s e c urit ie s<br />
a) securities o f third parties held o n depo sit: co nnected with depo sito ry bank activity (no t<br />
including po rtfo lio managem ent)<br />
1. securities issued by the repo rting bank -<br />
2. o ther securities 15.407.954<br />
b) Other third party securities held o n depo sit (no t including po rtfo lio managements): o ther<br />
1. securities issued by the repo rting bank 93.860<br />
2. o ther securities 22.758.564<br />
c) securities belo nging to third parties, depo sited with third parties 36.287.527<br />
d) o wn securities depo sited with third parties 20.443.231<br />
4 ) O t he r t ra ns a c t io ns 12 .5 3 1.3 18<br />
632 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part C – Information on the income<br />
statement<br />
Section 1 – Interest – Items 10 and 20<br />
1.1 Interest income and similar: composition<br />
Items / Type<br />
P erfo rming financial assets<br />
Impaired<br />
financial<br />
assets<br />
Other assets<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Debt<br />
securities<br />
Financing<br />
1. Financial assets held fo r trading 19.640 - - - 19 .6 4 0 3 3 .8 0 4<br />
2. A vailable-fo r-sale financial assets 60.706 - - - 6 0 .7 0 6 4 .19 9<br />
3. Held-to -maturity financial assets 17.189 - - - 17 .18 9 ( 10 .4 3 1)<br />
4. Lo ans to banks 184.879 688.390 - - 8 7 3 .2 6 9 5 3 3 .5 7 7<br />
5. Lo ans to custo mers 7.563 422.181 - - 4 2 9 .7 4 4 3 14 .0 4 4<br />
6. Financial assets at fair value 22.023 - - - 2 2 .0 2 3 8 0 .3 7 6<br />
7. Hedging derivatives X X X - - -<br />
8. Financial assets transferred no t dereco gnised 420.553 - - - 4 2 0 .5 5 3 2 8 5 .5 2 5<br />
9. Other assets X X X 1.201 1.2 0 1 1.5 9 9<br />
T o t a l 7 3 2 .5 5 3 1.110 .5 7 1 - 1.2 0 1 1.8 4 4 .3 2 5 1.2 4 2 .6 9 3<br />
633 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1.2 Interest income and similar: hedging differentials<br />
There are no hedging differentials.<br />
1.3 Interest and similar income: other information<br />
1.3.1 Interest income on financial assets held in foreign currency<br />
Item s/Values<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Interest inco m e o n financial assets held in fo reign currency 31.011 44.202<br />
1.3.2 Interest income on finance lease transactions<br />
There was no interest income on finance lease transactions<br />
1.3.3 Interest income on lending with funds administered on behalf of public bodies<br />
There was no interest income on lending with funds administered on behalf of public bodies.<br />
634 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1.4 Interest expense and similar: composition<br />
Items/Type Borrowings Securities Other liabilities 31.12.2008 31.12.2007<br />
1. Due to banks (836.717) X - (836.717) (423.987)<br />
2. Due to customers (128.226) X - (128.226) (91.170)<br />
3. Securities issued X (715.296) - (715.296) (608.098)<br />
4. Financial liabilities held for trading (2.669) - - (2.669) (13.394)<br />
5. Financial liabilities at fair value - - - - -<br />
6. Financial liabilities for assets transferred not<br />
derecognised (399.138) - - (399.138) (284.656)<br />
7. Other liabilities X X (462) (462) (621)<br />
8. Hedging derivatives X X (12.606) (12.606) (4.953)<br />
T o tal (1.366.750) (715.296) (13.068) (2.095.114) (1.426.879)<br />
1.5 Interest expense and similar: hedging differentials<br />
Item s/Values 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . P o s it iv e dif f e re nt ia ls o n t ra ns a c t io ns f o r:<br />
A .1 Fair value specific hedge o f assets 73.040 151.788<br />
A .2 Fair value specific hedges o f liabilities 112.979 86.692<br />
A .3 M acro hedges o f interest rate risk - -<br />
A .4 Cash flo w specific hedges o f assets - -<br />
A .5 Cash flo w specific hedges o f liabilities - -<br />
A .6 M acro cash flo w hedges - -<br />
T o t a l po s it iv e dif f e re nt ia ls ( A ) 18 6 .0 19 2 3 8 .4 8 0<br />
B . N e ga t iv e dif f e re nt ia ls o n t ra ns a c t io ns f o r:<br />
B .1 Fair value specific hedges o f assets (65.233) (152.147)<br />
B .2 Fair value specific hedges o f liabilities (133.392) (91.286)<br />
B .3 M acro interest rate risk hedges - -<br />
B .4 Cash flo w specific hedges o f assets - -<br />
B .5 Cash flo w specific hedges o f liabilities - -<br />
B .6 M acro cash flo w hedges - -<br />
T o t a l ne ga t iv e dif f e re nt ia ls ( B ) ( 19 8 .6 2 5 ) ( 2 4 3 .4 3 3 )<br />
C . B a la nc e ( A - B ) ( 12 .6 0 6 ) ( 4 .9 5 3 )<br />
1.6 Interest expense and similar: other information<br />
1.6.1 Interest expense on liabilities held in foreign currency<br />
635 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
It e m s / V a lue s 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Interest expense o n liabilities held in fo reign currency (34.026) (50.007)<br />
1.6.2 Interest expense on liabilities for finance lease transactions<br />
It e m s / V a lue s 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Interest expense o n liabilities fo r financial leasing transactio ns (344) (226)<br />
1.6.3 Interest expense on funds administered on behalf of public bodies<br />
There was no interest expense on funds administered on behalf of public bodies<br />
636 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 2 – Commissions – Items 40 and 50<br />
2.1 Commission income: composition<br />
Type o f service/A mo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
a) guarantees granted 3.588 2.707<br />
b) credit derivatives - -<br />
c) management, trading and adviso ry services: 30.595 33.015<br />
1. trading in financial instruments 4.713 2.678<br />
2. fo reign exchange trading 97 608<br />
3. po rtfo lio management - -<br />
3.1. individual - -<br />
3.2. co llective - -<br />
4. custo dy and administratio n o f securities 1.179 388<br />
5. depo sito ry bank 21.255 23.510<br />
6. placement o f securities 967 779<br />
7. sto ck market o rders 894 3.558<br />
8. adviso ry activities 745 1.258<br />
9. distributio n o f third party services 745 236<br />
9.1. po rtfo lio managements - -<br />
9.1.1. individual - -<br />
9.1.2. co llective - -<br />
9.2. insurance pro ducts - -<br />
9.3. o ther pro ducts 745 236<br />
d) co llectio n and payment services 1.603 5.012<br />
e) servicer activities fo r securitisatio n transactio ns 225 237<br />
f) services fo r facto ring transactio ns - -<br />
g) tax co llectio n and payment services - -<br />
h) o ther services 1.301 995<br />
T o t a l 3 7 .3 12 4 1.9 6 6<br />
The contribution to the result from commission income on depositary bank activities relates to<br />
commissions received from management companies for the service performed on investment<br />
funds distributed by Group banks.<br />
637 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2.2 Commission income: distribution channels for products and services<br />
Channels/Values 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
a ) T hro ug h o wn bra nc he s : 1.7 12 1.0 14<br />
1. P o rtfo lio m anagements - -<br />
2. P lacem ent o f securities 967 779<br />
3. Third party services and pro ducts 745 235<br />
b) T hro ug h indire c t ne t wo rk s : - -<br />
1. P o rtfo lio m anagements - -<br />
2. P lacem ent o f securities - -<br />
3. Third party services and pro ducts - -<br />
c ) O t he r dis t ribut io n c ha nne ls : - -<br />
1. P o rtfo lio m anagements - -<br />
2. P lacem ent o f securities - -<br />
3. Third party services and pro ducts - -<br />
2.3 Commission expense: composition<br />
Services/A m o unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
a) guarantees received (106) (179)<br />
b) credit derivatives - -<br />
c) m anagem ent and trading services: (12.060) (11.577)<br />
1. trading in financial instrum ents (4.019) (3.842)<br />
2. fo reign exchange trading (101) (207)<br />
3. po rtfo lio m anagem ent (1.556) (612)<br />
3.1. o wn po rtfo lio (1.556) (612)<br />
3.2. po rtfo lio o f o thers - -<br />
4. custo dy and adm inistratio n o f securities (5.587) (6.202)<br />
5. placem ent o f financial instrum ents (797) (714)<br />
6. securities, pro ducts and services o ffered thro ugh indirect netwo rks - -<br />
d) co llectio n and paym ent services (2.682) (1.282)<br />
e) o ther services (9.290) (11.088)<br />
T o t a l ( 2 4 .13 8 ) ( 2 4 .12 6 )<br />
Section 3 – Dividend and similar income – Item 70<br />
3.1 Dividend and similar income: composition<br />
Item s/Inco m e<br />
Dividends<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Inco me fro m<br />
units in<br />
O.I.C.R<br />
(collect ive<br />
invest ment<br />
inst rument s)<br />
Dividends<br />
Inco m e fro m<br />
units in<br />
O.I.C.R<br />
(collect ive<br />
investment<br />
inst rument s)<br />
A . Financial assets held fo r trading 7.608 - 6.086 -<br />
B . A vailable-fo r-sale financial assets 58.186 862 59.951 438<br />
C. Financial assets at fair value - 20 - -<br />
D. Equity investm ents 837.679 X 905.640 X<br />
T o t a l 9 0 3 .4 7 3 8 8 2 9 7 1.6 7 7 4 3 8<br />
Dividends received from available-for-sale financial assets include those from the shareholding<br />
in Intesa Sanpaolo Spa amounting to 53,2 million euro.<br />
Details are given below of dividends received from equity investments in subsidiaries and<br />
638 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
companies subject to significant influence.<br />
31.12.2008 31.12.2007<br />
On e quity inv e s tm e nts in s ubs idia rie s 8 3 3 .2 10 8 9 5 .7 14<br />
B@nca 24-7 Spa 11.520 12.500<br />
<strong>Banca</strong> di Valle Camo nica Spa 13.013 8.947<br />
<strong>Banca</strong> P o po lare Co mmercio Indus tria Spa 54.727 74.775<br />
<strong>Banca</strong> P o po lare di Anco na Spa 48.563 84.958<br />
<strong>Banca</strong> P o po lare di Bergamo Spa 305.658 268.220<br />
<strong>Banca</strong> Regio nale Euro pea Spa 47.305 48.031<br />
Banco di Bres cia Spa 178.863 177.990<br />
Banco di San Gio rgio Spa 3.878 3.399<br />
Banque de Depo ts et de Ges tio n Sa 7.858 5.777<br />
<strong>UBI</strong> Leas ing Spa 12.509 10.068<br />
By Yo u Spa 694 -<br />
Capitalges t Alternative SGR Spa - 1.500<br />
Capitalges t SGR Spa 2.541 4.334<br />
Carime Spa 50.369 56.268<br />
<strong>UBI</strong> Facto r Spa 15.974 13.752<br />
Centro banca Spa 47.786 68.266<br />
IW Bank Spa 1.793 1.187<br />
Mercato Impres a Spa 2.957 1.873<br />
<strong>UBI</strong> Fiduciaria Spa 348 1074<br />
P o lis Fo ndi SGR Spa 69 61<br />
Sbim Spa 769 5.775<br />
Sbs Leas ing Spa 8.663 8.751<br />
Silf Spa 878 2.051<br />
<strong>UBI</strong> <strong>Banca</strong> Internatio nal Sa 4.247 3.983<br />
<strong>UBI</strong> Ins urance Bro ker Srl 2.000 1.531<br />
<strong>UBI</strong> P artecipazio ni As s icurative Spa - 6.120<br />
<strong>UBI</strong> P ramerica Sgr Spa 10.228 22.607<br />
<strong>UBI</strong> SIM Spa - 1.916<br />
On e quity inv e s tm e nts in c o m pa nie s s ubje c t to s ig nific a nt<br />
influe nc e 4 .4 6 9 9 .9 2 6<br />
Arca Sgr Spa 1.619 1.619<br />
Aviva Vita Spa 1.925 1.575<br />
Capital Mo ney Spa - 82<br />
CFE Co rpo ratio n Financiere Euro peenne Sa 191 143<br />
Lo mbarda Vita Spa 729 6.502<br />
Secur Bro ker Srl 5 5<br />
To ta l 8 3 7 .6 7 9 9 0 5 .6 4 0<br />
639 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 4 – Il net profit (loss) on trading – Item 80<br />
4.1 Net profit (loss) on trading: composition<br />
Transactio ns/Co mpo nents o f inco me<br />
Gains<br />
P ro fit fro m<br />
trading<br />
Lo sses<br />
Lo sses fro m<br />
trading<br />
Net result<br />
( A ) ( B ) ( C ) ( D ) [(A +B )-(C+D)]<br />
1. F ina nc ia l a s s e t s he ld f o r t ra ding 5 .10 7 2 5 .6 6 2 ( 14 3 .8 4 4 ) ( 7 4 .3 8 3 ) ( 18 7 .4 5 8 )<br />
1.1 Debt securities 4.545 9.502 (14.835) (4.526) (5.314)<br />
1.2 Equity instruments 562 2.371 (59.479) (48.790) (105.336)<br />
1.3 Units in O.I.C.R. - 1.933 (69.530) (19.004) (86.601)<br />
1.4 Financing - - - - -<br />
1.5 Other - 11.856 - (2.063) 9.793<br />
2 . F ina nc ia l lia bilit ie s he ld f o r t ra ding - - ( 2 0 ) - ( 2 0 )<br />
2.1 Debt securities - - (20) - (20)<br />
2.2 Other - - - - -<br />
3 . O t he r f ina nc ia l a s s e t s a nd lia bilit ie s :<br />
X X X X ( 1.8 5 8 )<br />
e xc ha nge ra t e dif f e re nc e s<br />
4 . D e riv a t iv e ins t rum e nt s 7 7 7 .7 5 1 2 .5 8 0 .4 6 8 ( 7 7 9 .7 9 3 ) ( 2 .4 7 2 .6 3 7 ) 10 5 .9 9 3<br />
4.1 Financial derivatives 777.751 2.580.237 (777.642) (2.472.184) 108.366<br />
- o n debt securities and interest rates 756.784 2.475.323 (752.060) (2.443.499) 36.548<br />
- o n equity instruments and share indices 20.967 104.914 (25.582) (28.685) 71.614<br />
- o n currencies and go ld X X X X 204<br />
- o ther - - - - -<br />
4.2 Credit derivatives - 231 (2.151) (453) (2.373)<br />
T o t a l 7 8 2 .8 5 8 2 .6 0 6 .13 0 ( 9 2 3 .6 5 7 ) ( 2 .5 4 7 .0 2 0 ) ( 8 3 .3 4 3 )<br />
The losses on units in O.I.C.R. (collective investment instruments) included the effects of the<br />
total write-down of positions in four hedge funds related to the Madoff default.<br />
The total loss calculated taking into consideration the value of the funds at the time of the<br />
default amounted to 52,9 million euro. On the other hand, the funds in question had a<br />
positive value during 2008 of 3,6 million euro.<br />
The losses on debt securities also included the effects of the write-down of a bond issued by<br />
Lehman Brothers totalling 4 million euro. As already reported at the foot of Table 2.1 in the<br />
assets part of section 2, the fair valuation of the security resulted in recognition of a loss in<br />
2008 amounting to 3,4 million euro.<br />
The negative amount in line 1.2, “Equity instruments”, should be read in conjunction with the<br />
positive impact of line 4.1 “Financial derivatives on equity instruments and share indices”<br />
because they are linked on a management basis.<br />
640 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 5 – Net profit (loss) on hedging activity – Item 90<br />
5.1 Net profit loss on hedging activity: composition<br />
Inco me co mpo nents/A m o unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . Inc o m e re la t ing t o : 125.064 31.391<br />
A .1 Fair value hedge derivatives 63.899 7.048<br />
A .2 Hedged financial assets (fair value) 57.782 1.667<br />
A .3 Hedged financial liabilities (fair value) 3.383 22.676<br />
A .4 Cash flo w hedge financial derivatives - -<br />
A .5 A ssets and liabilities in fo reign currency - -<br />
T o t a l inc o m e f ro m he dging a c t iv it y ( A ) 12 5 .0 6 4 3 1.3 9 1<br />
B . E xpe ns e re la t ing t o : (132.299) (29.877)<br />
B .1 Hedging derivatives at fair value (55.544) (23.739)<br />
B .2 Hedged financial assets (fair value) - (3.767)<br />
B .3 Hedged financial liabilities (fair value) (76.755) (2.371)<br />
B .4 Cash flo w hedge financial derivatives - -<br />
B .5 A ssets and liabilities in fo reign currency - -<br />
T o t a l e xpe ns e f ro m he dging a c t iv it y ( B ) ( 13 2 .2 9 9 ) ( 2 9 .8 7 7 )<br />
C . N e t pro f it ( lo s s ) o n he dging ( A - B ) ( 7 .2 3 5 ) 1.5 14<br />
The items which generated the net negative result of 7,2 million euro are reported at the foot of<br />
the tables in the assets and liabilities section where details of the results for hedged items are<br />
given.<br />
641 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 6 – Net Profit (loss) on disposals/repurchases – Item 100<br />
6.1 Net Profit (loss) on disposals/repurchases: composition<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Items/Inco me co mpo nents P ro fits Lo sses Net result P ro fits Lo sses Net result<br />
F ina nc ia l a s s e t s<br />
1. Lo ans to banks - - - - - -<br />
2. Lo ans to custo mers 1 - 1 - - -<br />
3. A vailable-fo r-sale financial assets 15.453 (58) 15.395 24.044 (54) 23.990<br />
3.1 Debt securities 49 (34) 15 1 (18) (17)<br />
3.2 Equity instruments 15.219 - 15.219 21.588 (27) 21.561<br />
3.3 Units in O.I.C.R 185 (24) 161 2.455 (9) 2.446<br />
3.4 Financing - - - - - -<br />
4. Held-to -maturity financial assets - - - - - -<br />
T o t a l a s s e t s 15 .4 5 4 ( 5 8 ) 15 .3 9 6 2 4 .0 4 4 ( 5 4 ) 2 3 .9 9 0<br />
F ina nc ia l lia bilit ie s<br />
1. Due to banks - - - - - -<br />
2. Due to custo mers - - - - - -<br />
3. Securities issued 374 - 374 268 (138) 130<br />
T o t a l lia bilit ie s 3 7 4 - 3 7 4 2 6 8 ( 13 8 ) 13 0<br />
The most significant transactions performed in 2008 related primarily to sales of securities<br />
classified within available-for-sale financial assets which included the following:<br />
- the disposal of the interest held in the company Key Client SpA (formerly Cim Italia) on<br />
which a gain of 7,1 million euro was recognised (including 4,6 million euro relating to the<br />
transfer to the income statement at the same time of the positive reserve existing as at 31 st<br />
December of the previous year);<br />
- the disposal of the interest held in Centrale Bilanci Srl which generated a gain of 8,1 million<br />
euro (including 1,1 million euro relating to the transfer to the income statement at the same<br />
time of the positive reserve existing as at 31 st December of the previous year).<br />
642 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 7 – Net profit (loss) on assets and liabilities at fair value – Item 110<br />
7.1 Net value change in financial assets/liabilities at fair value: composition<br />
Transactio ns/Co mpo nents o f inco m e<br />
Gains<br />
(A )<br />
P ro fits o n sale<br />
(B )<br />
Lo sses<br />
(C)<br />
Lo sses o n sale<br />
(D)<br />
Net result<br />
[(A +B )-(C+D)]<br />
1. F ina nc ia l a s s e t s 12 .9 7 1 1.5 4 1 ( 117 .3 4 6 ) ( 15 .2 0 1) ( 118 .0 3 5 )<br />
1.1 Debt securities - - - - -<br />
1.2 Equity instrum ents - - - - -<br />
1.3 Units in O.I.C.R. 12.971 1.541 (117.346) (15.201) (118.035)<br />
1.4 Financing - - - - -<br />
2 . F ina nc ia l lia bilit ie s - - - - -<br />
2.1 Securities issued - - - - -<br />
2.2 Due to banks - - - - -<br />
2.3 Due to custo m ers - - - - -<br />
3 . F ina nc ia l a s s e t s a nd lia bilit ie s in<br />
f o re ign c urre nc y: e xc ha nge ra t e<br />
dif f e re nc e s<br />
X X X X -<br />
4 . D e riv a t iv e ins t rum e nt s - - - - -<br />
4.1 Financial derivatives - - - - -<br />
- o n debt securities and interest rates - - - - -<br />
- o n equity instruments and share indices - - - - -<br />
- o n currencies and go ld X X X X -<br />
- o ther - - - - -<br />
4.2 Credit derivatives - - - - -<br />
T o t a l de riv a t iv e s - - - - -<br />
T o t a l 12 .9 7 1 1.5 4 1 ( 117 .3 4 6 ) ( 15 .2 0 1) ( 118 .0 3 5 )<br />
The losses on units in O.I.C.R. (collective investment instruments) included the effects of the<br />
total write-down of a hedge fund related to the Madoff default.<br />
The total loss calculated taking into consideration the value of the fund at the time of the<br />
default amounted to 5,3 million euro. Conversely, the fund had a positive value with respect to<br />
the carrying amount as at 31 st December 2008 of 353 thousand euro.<br />
More generally, if the amounts just mentioned are excluded, the negative result recorded for<br />
O.I.C.R.s (collective investment instruments) is attributable to the unfavourable performance<br />
of the hedge fund market in 2008.<br />
643 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 8 - Net impairment losses on loans – Item 130<br />
8.1 Net impairment losses on loans: composition<br />
Impairment<br />
Write-backs<br />
Transactions/components<br />
of income<br />
Specific Specific Portfolio 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Write-offs Other Portfolio of interests<br />
other writebacks<br />
of interest<br />
other writebacks<br />
A. Loans to banks - - - - - - 75 75 53<br />
B. Loans to customers (82) (4.856) - 5 - - 458 ( 4 .4 75) ( 1.2 6 1)<br />
Tot al ( 8 2 ) ( 4 .8 56 ) - 5 - - 53 3 ( 4 .4 0 0 ) ( 1.2 0 8 )<br />
Other specific impairment of loans to customers includes an amount of 438 thousand euro<br />
accounting for 91,375% of the amount due from the company Lehman Brothers International<br />
and 4,4 million euro for the total write-down of the amount due from the company Lehman<br />
Brothers Special Financing.<br />
644 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
8.2 Net impairment losses on available-for-sale financial assets: composition<br />
Im pairm ent<br />
Write-backs<br />
Specific<br />
Specific<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Transactio ns/Co mpo nents<br />
o f inco m e<br />
Write-o ffs Other o f interest<br />
o ther writebacks<br />
A . Debt securities - (6.269) - - ( 6 .2 6 9 ) -<br />
B . Equity instruments - (488.193) X X ( 4 8 8 .19 3 ) ( 4 3 )<br />
C. Units in O.I.C.R. - - X - - -<br />
D. Lo ans to banks - - - - - -<br />
E. Lo ans to custo m ers - - - - - -<br />
T o t a l - ( 4 9 4 .4 6 2 ) - - ( 4 9 4 .4 6 2 ) ( 4 3 )<br />
Details of impairment of available-for-sale financial assets recognised in the income statement<br />
are given in the table below.<br />
Write-dow ns Transfer of negative reserves Elimination of positive reserves Total<br />
to the income statement<br />
for write-dow n due to impairment<br />
Equity instruments:<br />
<strong>Banca</strong> Intesa Sanpaolo Spa (403.361) (40.508) (443.869)<br />
London Stock Exchange (31.855) 7.286 (24.569)<br />
A2A Spa (20.487) 784 (19.703)<br />
Brescia on line (52) (52)<br />
(455.755) (40.508) 8.070 (488.193)<br />
Debt securities:<br />
UBS Jersey 08/15 ZC (3.182) (3.087) (6.269)<br />
645 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
8.3 Net impairment losses on held-to-maturity financial assets: composition<br />
There were no net impairment losses on held-to-maturity financial assets.<br />
8.4 Net impairment losses on other financial transactions: composition<br />
Impairment<br />
Writ e-backs<br />
Specific Specific Portfolio 3 1.12 .2 0 0 8 3 1.12 . 2 0 0 7<br />
Transactions/Components of<br />
income<br />
Write-off s other Portfolio of interest<br />
Other writ e-<br />
backs<br />
Of interest<br />
other writebacks<br />
A. Guarantees granted - (1.863) - - - - 247 ( 1.6 16 ) ( 5. 8 9 9 )<br />
B. Credit derivatives - - - - - - - - -<br />
C. Commitments to pay funds - - - - - - - - 15<br />
D. Other transactions - - - - - - - - -<br />
E. T o t al - ( 1.8 6 3 ) - - - - 2 4 7 ( 1.6 16 ) ( 5. 8 8 4 )<br />
The item other impairment relates to provisions made for specific guarantees granted. A<br />
collective valuation of guarantees granted resulted in a write-back of 247 thousand euro.<br />
646 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 9 – Administrative expenses – Item 150<br />
9.1 Staff costs: composition<br />
Type o f expense/A m o unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1) E m plo ye e s (129.566) (222.124)<br />
a) Wages and salaries (85.130) (107.252)<br />
b) So cial security charges (23.408) (38.355)<br />
c) Severance indemnity (151) (261)<br />
d) P ensio n expense - (71)<br />
e) P ro visio n charge fo r severance paym ents (2.195) (3.169)<br />
f) P ro visio n charge fo r pensio n and sim ilar: - -<br />
- defined co ntributio n - -<br />
- defined service - -<br />
g) P ayments to external supplem entary retirem ent benefit plans: (7.965) (14.999)<br />
- defined co ntributio n (7.965) (14.999)<br />
- defined service - -<br />
h) Expenses resulting fro m share based payment agreem ents - -<br />
i) Other benefits fo r permanent emplo yees (10.717) (58.017)<br />
2 ) O t he r pe rs o nne l (36.477) (38.143)<br />
3 ) D ire c t o rs (8.109) (8.624)<br />
4 ) E xpe ns e s f o r re t ire d pe rs o nne l - (32)<br />
T o t a l ( 17 4 .15 2 ) ( 2 6 8 .9 2 3 )<br />
The various items of staff costs include 15,3 million euro attributable to corporate integration<br />
costs composed as follows:<br />
- grants in respect of the plan to centralise operations: 7,96 million euro<br />
- staff on agency leasing contracts: 2,44 million euro<br />
- internal communication initiatives: 1,4 million euro<br />
- increased leaving incentives: 2,7 million euro<br />
- staff mobility: 0,8 million euro<br />
. 9.2 Average number of employees by category<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
E M P LO Y E E S 14 8 8 19 12<br />
a) senio r managers 140 133<br />
b) to tal managers 680 801<br />
- o f which: 3rd and 4th level 384 417<br />
c) o ther staff 668 978<br />
O T H E R P E R S O N N E L 7 3 9 3<br />
The average number of employees for each category was calculated on the basis of the actual<br />
work force, inclusive of staff on secondment from other Group member companies at <strong>UBI</strong><br />
<strong>Banca</strong> and excluding <strong>UBI</strong> <strong>Banca</strong> staff on secondment working in other Group member<br />
companies.<br />
647 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
9.3 Defined benefit company pension funds: total expenses<br />
There are no defined benefit company pension funds.<br />
9.4 Other employee benefits<br />
31.12.2008 31.12.2007<br />
Leaving incentives (4.598) (52.283)<br />
Expenses for luncheon vouchers (2.061) (1.718)<br />
Insurance expenses (1.836) (545)<br />
Expenses for attendance on personnel training courses (1.632) (1.861)<br />
Expenses for study scholarships for children of personnel (121) (436)<br />
Other expenses (469) (1.174)<br />
Total (10.717) (58.017)<br />
648 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
9.5 Other administrative expenses: composition<br />
Type o f service/A mo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . O t he r a dm inis t ra t iv e e xpe ns e s ( 17 3 .3 3 5 ) ( 2 0 3 .3 2 7 )<br />
Rent payable (7.472) (8.790)<br />
Technical and pro fessio nal services (5.502) (5.537)<br />
Co rpo rate and legal adviso ry services (9.898) (6.414)<br />
Strategic adm inistrative adviso ry services (9.635) (15.807)<br />
P ro fessio nal ICT services (4.621) (9.672)<br />
Vehicle and furnishing lease instalments (2.435) (2.267)<br />
HW lease instalments (351) (390)<br />
SW lease instalments (1) -<br />
Vehicle and furnishings maintenance (382) (660)<br />
HW m aintenance and assistance (1.895) (9.151)<br />
SW m aintenance and assistance (2.722) (8.608)<br />
Tenancy o f premises (5.245) (8.366)<br />
Cleaning (1.069) (1.216)<br />
P ro perty and equipment maintenance (1.730) (5.435)<br />
Co unting, transpo rt and management o f valuables (47) (363)<br />
M em bership fees (868) (1.873)<br />
Info rm atio n services and land registry searches (1.123) (603)<br />
B o o ks and perio dicals (610) (566)<br />
P o stal (12.834) (15.691)<br />
Insurance prem ium s (1.203) (2.019)<br />
A dvertising (7.173) (7.428)<br />
Entertainm ent expenses (1.118) (1.199)<br />
Telepho ne and date transm issio n netwo rks (4.805) (17.728)<br />
Info pro viders (8.368) (9.429)<br />
Outso urced services (4.812) (11.508)<br />
Travel expenses (5.383) (2.959)<br />
Instalm ents o n services pro vided by gro up co mpanies (48.123) (19.515)<br />
Debt co llectio n expenses (79) (105)<br />
P rinting, statio nery and co nsum ables (704) (2.995)<br />
Transpo rt and rem o vals (504) (290)<br />
Security (1.433) (951)<br />
UB I m erger transactio n expenses (20.626) (24.779)<br />
Other expenses (564) (1.013)<br />
B . Indire c t t a xe s ( 3 .7 9 6 ) ( 4 .0 8 4 )<br />
- Indirect taxes and duties (476) (11)<br />
- Stam p duty (847) (1.775)<br />
- M unicipal pro perty tax (2.073) (2.012)<br />
- Other tax (400) (286)<br />
T o t a l ( 17 7 .13 1) ( 2 0 7 .4 11)<br />
As part of activity to revise processes for monitoring administrative expenses, the figures to<br />
31 st December 2007, were reclassified in order to allow a uniform comparison.<br />
The item <strong>UBI</strong> merger expenses, amounting to 20,6 million euro, includes the following<br />
integration costs:<br />
- payments made to <strong>UBI</strong> Sistemi e Servizi for IT migration services amounting to 10,6 million<br />
euro;<br />
- advisory and other services amounting to 7,6 million euro;<br />
- sundry other expenses amounting to 2,4 million euro.<br />
649 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 10 – Net provisions for liabilities and charges – Item 160<br />
10.1 Net provisions for liabilities and charges: composition<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Net pro visio ns fo r liabilities and charges fo r revo catio ns - -<br />
Net pro visio ns fo r value adjustments to interest, co mmissio ns and expenses - (3.000)<br />
Net pro visio n charges fo r bo nds in default - -<br />
Net pro visio n charges fo r litigatio n (194) (757)<br />
Other net pro visio ns fo r liabilities and charges (1.539) 25<br />
T o t a l ( 1.7 3 3 ) ( 3 .7 3 2 )<br />
Provisions for liabilities and charges included an amount of 1,5 million euro for possible<br />
payments in relation to securities issued by Icelandic banks.<br />
650 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 11 – Net impairment losses on property, plant and equipment – Item 170<br />
11.1 Net impairment losses on tangible assets: composition<br />
A ssets/Inco m e co m po nents<br />
Depreciatio n<br />
(a)<br />
Im pairment<br />
lo sses<br />
(b)<br />
Write-backs<br />
(c )<br />
N e t re s ult<br />
( a +b- c )<br />
A . P ro perty, plant and equipm ent<br />
A .1 Owned (39.262) - - ( 3 9 .2 6 2 )<br />
- Fo r o peratio nal use (25.986) - - ( 2 5 .9 8 6 )<br />
- Fo r investm ent (13.276) - - ( 13 .2 7 6 )<br />
A .2 A cquired thro ugh finance leases (178) - - ( 17 8 )<br />
- Fo r o peratio nal use (75) - - ( 7 5 )<br />
- Fo r investm ent (103) - - ( 10 3 )<br />
T o t a l ( 3 9 .4 4 0 ) - - ( 3 9 .4 4 0 )<br />
Section 12 – Net impairment losses on intangible assets – Item 180<br />
12.1 Net impairment losses on intangible assets: composition<br />
A ssets/Co m po nent o f inco m e<br />
A mo rtisatio n<br />
(a)<br />
Impairment lo sses<br />
(b)<br />
Write-backs<br />
(c)<br />
N e t re s ult<br />
( a +b- c )<br />
A . Intangible assets<br />
A .1 Owned (21.809) (247) - ( 2 2 .0 5 6 )<br />
- Internally generated by the B ank - - - -<br />
- o ther (21.809) (247) - ( 2 2 .0 5 6 )<br />
A .2 A cquired thro ugh finance leases - - - -<br />
T o t a l ( 2 1.8 0 9 ) ( 2 4 7 ) - ( 2 2 .0 5 6 )<br />
Amortisation of intangible assets consisted of a charge of 18,8 million euro relating to software<br />
and a charge of 2,9 million euro relating to the intangible assets already mentioned in respect<br />
of the acquisition of an interest in By You, amortised over a useful life of 10 years. The<br />
amount of 247 thousand euro relates to the write-down performed on software products no<br />
longer usable following the centralisation of IT activities in the company <strong>UBI</strong> Sistemi e Servizi.<br />
651 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 13 – Other costs and operating income – Item 190<br />
13.1 Other operating expense: composition<br />
3 1. 12 . 2 0 0 8 3 1.12 .2 0 0 7<br />
O T H E R O P E R A T IN G E X P E N S E S ( 17 .6 9 7 ) ( 2 0 .4 0 9 )<br />
D eprec iatio n o f im pro v em ents to third part y leas ed as s ets (230) (220)<br />
F ines and c harges fo r late tax paym ents (2) (18)<br />
O ther c o s ts and exc ept io nal payables (17.465) (20.171)<br />
The item other costs and exceptional payables amounting to 17,5 million euro consists of the<br />
following positions:<br />
- the value of expired banker’s drafts to be paid to the Ministry of the Economy and<br />
Finance amounting to 3,8 million euro;<br />
- amounts payable to Group member companies: 7,9 million euro;<br />
- amounts payable to Prudential: 1,2 million euro;<br />
- other positions amounting to 4,6 million euro.<br />
13.2 Other operating income: composition<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
O T H E R O P E R A T IN G IN C O M E 18 3 .7 8 0 3 17 .9 6 6<br />
Reco veries o f taxes 109 368<br />
Inco m e fo r services to Gro up m em ber co mpanies 145.167 282.446<br />
Charges to third parties fo r expenses o n depo sit and current acco unts - 2<br />
Other inco m e fo r pro perty m anagem ent 2.209 -<br />
Rents receivable 31.172 27.829<br />
Other inco m e, expense reco veries and exceptio nal receivables 5.123 7.321<br />
652 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 14 – Profits (losses) on equity investments – Item 210<br />
14.1 Profits (losses) on equity investments: composition<br />
Co mpo nent o f inco me/A mo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . Inco me 24.949 -<br />
1. Revaluatio ns - -<br />
2. P ro fits o n sale 24.949 -<br />
3. Write-backs - -<br />
4. Other increases - -<br />
B . Expense (7.348) (279)<br />
1. Write-do wns - -<br />
2. Impairment lo sses (3.558) -<br />
3. Lo sses o n sale (3.470) -<br />
4. Other decreases (320) (279)<br />
N e t re s ult 17 .6 0 1 ( 2 7 9 )<br />
Profits on the disposal of equity investments consisted of the following:<br />
- disposal of <strong>UBI</strong> Pramerica SGR: 22 million euro;<br />
- disposal of Corporacion Financiere Europeenne Sa: 2,4 million euro;<br />
- liquidation of Financiera Veneta: 0,5 million euro.<br />
Impairment losses relate to that on <strong>UBI</strong> Centrosystem Spa amounting to 3,6 million euro.<br />
Losses relate almost entirely to the sale of <strong>UBI</strong> Sistemi e Servizi Spa shares to Group member<br />
companies amounting to 3,47 million euro, as part of the constitution of a consortium<br />
company for the supply of Group ICT services.<br />
Section 15 – Net result of fair valuation of tangible and intangible assets – Item 220<br />
No net result was recognised in the income statement because the Bank did not opt for the fair<br />
valuation of tangible and intangible assets.<br />
Section 16 – Net impairment losses on goodwill – Item 230<br />
There were no net impairment losses on goodwill.<br />
653 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 17 - Profits (losses) on disposal of investments – Item 240<br />
17.1 Profits (losses) on disposal of investments: composition<br />
Co mpo nent o f inco m e/A mo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . P ro perties 22 (3)<br />
- P ro fits o n sale 22 -<br />
- Lo sses o n sale - (3)<br />
B . Other assets (81) 259<br />
- P ro fits o n sale 24 426<br />
- Lo sses o n sale (105) (167)<br />
N e t re s ult ( 5 9 ) 2 5 6<br />
654 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 18 – Taxes on operating income for continuing operations – Item 260<br />
18.1 Taxes on operating income for continuing operations: composition<br />
Co m po nent/A mo unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. Current taxes (-) (89.113) 1.969<br />
2. Change in current taxes o f prio r years (+/-) 935 -<br />
3. Reductio n in current taxes fo r the year (+) - -<br />
4. Change in prepaid taxes (+/-) 339.793 100.000<br />
5. Change in deferred taxes (+/-) 29.739 153.881<br />
6. Taxes fo r the year (-) (-1+/-2+3+/-4+/-5) 281.354 255.850<br />
Current taxes were recognised on the basis of the tax legislation in force.<br />
Current taxes amounting to 89.113 thousand euro consisted of the provision made for a<br />
substitute tax for the tax redemption on goodwill recognised as part of the purchase price<br />
allocation performed for the merger in the previous year, amounting to 91.049 thousand euro,<br />
and a substitute tax for the tax redemption of off-balance sheet deductions paid during the<br />
year, amounting to 3.604 thousand euro, net of positive adjustments resulting from<br />
participation in the tax consolidation amounting to 4.711 thousand euro and of valuations of<br />
AFS securities amounting to 966 thousand euro. The amount also includes 137 thousand<br />
euro resulting from the application of regulations on CFCs.<br />
The change in current taxes of prior years amounting to 935 thousand euro is the result of the<br />
payment of taxes for the year 2007. The changes in prepaid taxes amounting to 339.793<br />
thousand euro consist of the difference between 347.386 thousand euro, the positive balance<br />
on increases and decreases reported in table 13.3, excluding the amount in point 2.4 and<br />
"other decreases" amounting to 167.547 thousand euro cancelled by the balancing entry in<br />
current tax liabilities and decreases of 7.593 thousand euro included in points 3.1.a) and 3.1<br />
c) of table 13.5 which, as reported in the relative note, had a balancing entry in the income<br />
statement.<br />
The changes in deferred taxes amounting to 29.739 thousand euro consist of the sum of<br />
20.261 thousand euro, consisting of the negative balance on increases and decreases reported<br />
in table 13.4 and the decreases amounting to 9.478 thousand euro included in point 3.1.a)<br />
and 3,1 c) of table 13.6 which, as reported in the relative note, had a balancing entry in the<br />
income statement.<br />
655 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
18.2 Reconciliation between theoretical taxation and actual taxation recorded in the<br />
accounts<br />
31.12.2008<br />
Profit (loss) on continuing operations before tax (257.468)<br />
Net balance on items recognised in shareholders’ equity 438<br />
(257.030)<br />
Current tax rate on IRES (corporation tax) 27,50%<br />
Theoretical tax 70.683<br />
Current taxes (*) (88.178)<br />
Taxes on permanent differences (**) 87.496<br />
Ires (corporation tax) – balance on prior year deferred taxation 6.336<br />
Ires – balance on deferred taxation for the year (1.193)<br />
Ires – advanced on goodw ill 156.491<br />
Irap (local production tax) – balance on prior year deferred taxation 788<br />
Irap – balance on deferred taxation for the year 21.502<br />
Irap advanced on goodw ill 27.429<br />
Taxation for the year 281.354<br />
(*) Does not include current IRAP (local production tax) because the value of production is negative<br />
(**) Attributable mainly to exempt dividends<br />
656 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 19 – Profits (losses) after tax on discontinued operations – Item 280<br />
19.1 Profit (loss) after tax on discontinued operations: composition<br />
Inco me co m po nents/A m o unts 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A s s e t / lia bilit y gro up<br />
1. Inco m e - -<br />
2. Expense - (116)<br />
3. Result o f valuatio n o f asso ciated assets and liabilities - -<br />
4. P ro fit (lo ss) o n sale - -<br />
5. Taxes and duties - 38<br />
P ro f it ( lo s s ) - ( 7 8 )<br />
19.2 Details of taxes on income in relation to discontinued operations<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. Current taxatio n (-) - -<br />
2. Change in prepaid taxes (+/-) - (38)<br />
3. Change in deferred taxes (-/+) - -<br />
4 . T a xe s o n inc o m e f o r t he ye a r ( - 1+/ - 2 +/ - 3 ) - ( 3 8 )<br />
Section 20 – Other information<br />
There is no further information of significance.<br />
657 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Section 21 – Earnings per share<br />
21.1 The average number of ordinary shares with diluted share capital<br />
International accounting standards (IAS 33) specify a precise method for calculating earnings<br />
per share (EPS) with two formulas: basic earnings and diluted earnings per share.<br />
Basic EPS has been calculated by dividing the profit attributable to ordinary equity holders of<br />
the Parent Bank by the weighted average number of ordinary outstanding shares during the<br />
year.<br />
21.1 Other information<br />
The relative figures for basic and diluted EPS for the individual <strong>UBI</strong> <strong>Banca</strong> accounts are given<br />
below, while greater details of the methods of calculation and figures for the Group are given<br />
in the relative section of the consolidated financial statements.<br />
P ro fit<br />
"attributable"<br />
(tho usands o f<br />
euro )<br />
P o sitio n as at 31.12.2008 P o sitio n as at 31.12.2007<br />
Weighted average<br />
o rdinary sharesEarnings per share<br />
P ro fit<br />
"attributable"<br />
(tho usands o f<br />
euro )<br />
Weighted<br />
average o rdinary<br />
sharesEarnings per share<br />
B asic EP S 16.374 639.145.902 0,0256 817.335 565.480.098 1,4454<br />
D iluted EP S 16.374 639.145.902 0,0256 817.335 565.480.098 1,4454<br />
658 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part D – Segment reporting<br />
As reported in Part A.2 – the part on the main balance sheet items – section 14 of this<br />
publication, information on segment reporting is provided in the corresponding section of the<br />
Consolidated Annual Report.<br />
659 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part E – Information on risks and the<br />
relative hedging policies<br />
In compliance with current regulations, the <strong>UBI</strong> Group has adopted a risk control system<br />
which disciplines in a integrated way the organisational, regulatory and methodological<br />
guidelines of the system of internal controls with which all Group member companies must<br />
comply in order to allow the Parent Bank to perform its activities of strategic, management<br />
and operational control in an effective and economical manner.<br />
The Bank works pro-actively to identify the risks to which it is subject and to define the<br />
relative criteria for measuring, managing and monitoring them.<br />
The key principles on which Group risk analysis and management are based for the pursuit of<br />
an increasingly more knowledgeable and efficient allocation of economic and supervisory<br />
capital are as it follows:<br />
- rigorous containment of financial and credit risks and strong management of all types<br />
of risk;<br />
- the use of sustainable value creation logic in defining the propensity to risk and the<br />
allocation of capital;<br />
- definition of the Group’s propensity to risk with reference to specific types of risk<br />
and/or specific activities in a set of policy regulations for the Group and for the single<br />
entities within it.<br />
This part furnishes information on the risk profiles listed below, on the relative management<br />
and hedging policies pursued by the Bank and its activities relating to financial derivative<br />
instruments:<br />
a) credit risk;<br />
b) market risks:<br />
- interest rates,<br />
- price,<br />
- currency,<br />
c) liquidity risk;<br />
d) operational risks.<br />
A report on the general framework of the risks and uncertainties to which the Bank is exposed<br />
is given in a special section of the management report, prepared in compliance with Legislative<br />
Decree No. 32 of 2 nd February 2007, which implements EC Directive No. 2003/51/EC.<br />
660 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
SECTION 1 – Credit risk<br />
Qualitative information<br />
1. General aspects<br />
The strategies and policies for assuming credit risk and the instruments employed to manage<br />
it are defined by the Risk Capital & Policies Area in conjunction with the Credit Area. The<br />
Commercial Macro Area, the Risk Management Area and the Studies Service also contribute to<br />
the formulation of policies. There is a particular focus in formulating the credit policies on<br />
maintaining an appropriate risk/yield profile and on assuming risks that are consistent with<br />
the propensity to risk defined by senior management and, more generally, with the mission of<br />
the Group.<br />
The priorities in the orientation of the Group's credit policies are to support local economies,<br />
families, businessmen, professionals and small-to-medium size enterprises. The particular<br />
attention paid to maintaining relations established with customers and to developing them<br />
over the years is one of the strong points of the Group and it helps to eliminate information<br />
asymmetries and offers continuity in relationships with customers with a view to long term<br />
support.<br />
Credit policies have been developed on the basis of:<br />
- macroeconomic forecasts which allow risk and expected growth for 2009 to be assessed<br />
for different sectors and geographical areas;<br />
- forecasts of growth in lending from which expected growth rates can be defined for<br />
each sub-portfolio, geographical area, sector and rating class;<br />
- a model to optimise the portfolio developed using an EVA approach with the objective<br />
of maximising the value created on the corporate market, while observing the<br />
constraints applied to maintain high asset quality and an acceptable risk profile for<br />
loans.<br />
Action was also taken to define operational rules for very short term transactions and for<br />
medium and long term business by using pricing sensitivity indicators, given the increase in<br />
the cost of funding that has occurred.<br />
Finally particular attention is paid to defining guidelines for the treatment of new products<br />
with adequate reporting to senior management concerning observance of risk/yield objectives,<br />
the calculation of minimum interest rates for granting loans, the quality of borrowers,<br />
guarantees received and expected rates of recovery in cases of insolvency.<br />
Credit policies are implemented in the distribution network by means of:<br />
- loan assessment procedures which are made simpler for counterparties belonging to<br />
attractive clusters and through targeted marketing campaigns;<br />
- initiatives designed to contain risk profiles and limit the negative impact on value<br />
creation in the corporate portfolio (corrective pricing action/acquiring<br />
guarantees/revision of credit lines) for counterparties belonging to unattractive<br />
clusters.<br />
661 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2. Policies for the management of credit risk<br />
2.1 Organisational aspects<br />
The Bank is exposed in the performance of its business to the risk that the loans it grants will<br />
not be repaid by borrowers when they are due and must be partially or fully written-down.<br />
More specifically the risk profile for lending is sensitive to the performance of the economy as a<br />
whole, to the deterioration in the financial position of counterparties (shortage of liquidity,<br />
insolvency, etc.), or to changes in their competitiveness and to structural or technological<br />
changes they make and to other external factors (e.g. changes in legislation, deterioration in<br />
the value of financial guarantees connected with market performance).<br />
The organisational model on which the units which manage credit activity is based is as it<br />
follows:<br />
• Parent Bank units for centralised monitoring and co-ordination;<br />
• the General Managements of banks and subsidiary undertakings, to which the<br />
following report:<br />
- credit departments;<br />
- local loan approval centres;<br />
- branches;<br />
- corporate banking units (CBUs),<br />
- private banking units (PBUs).<br />
The characteristics of that organisational model not only ensure strong standardisation<br />
between the units of the Parent Bank and the corresponding units in the Network Banks, with<br />
consequent linearity in the processes and the optimisation of information flows, but they also<br />
provide a clear separation between commercial and credit functions. Loan granting activity is<br />
also differentiated by customer segment (retail/private banking and corporate) and specialised<br />
by the status of the loan: “performing” (managed by retail, private banking and corporate<br />
lending units) and problem (managed by problem loan credit units).<br />
The Parent Bank oversees policy management, overall portfolio monitoring, the refinement of<br />
assessment systems, problem loan management and compliance with regulations through the<br />
Credit Area, the Strategy and Control Macro Area, the Debt Collection Area and the audit<br />
functions of the Parent Bank and Group.<br />
Credit positions at <strong>UBI</strong> are principally connected with treasury activity performed for<br />
institutional counterparties and Group entities.<br />
Further details of credit risk management policies are given in the same section of the notes to<br />
the consolidated financial statements, which may be consulted.<br />
2.2 Management, measurement and control systems<br />
The <strong>UBI</strong> Credit Risk Service is responsible for Group reporting on credit risk in order to<br />
monitor changes in the risk attached to lending for individual banks and commercial<br />
portfolios. The reports are submitted monthly to the Management Board and quarterly to the<br />
Boards of Directors of the individual Network Banks. The reports give changes in loan<br />
deterioration rates and the distribution of internal rating classes for all banks and for the<br />
Network Banks they give changes in average risk for the corporate market, the small business<br />
portfolio in the retail market and for the affluent and mass market portfolios again in the retail<br />
market. Reporting for the “Product Companies” is based on the specific risk for the various<br />
types of lending and products marketed. Special reports on specific matters are also prepared<br />
on the main components of credit risk.<br />
662 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
The migration to the internal ratings systems on the target platform was completed in 2008<br />
and at present this involves the use of automatic models for private individuals and smallsized<br />
businesses, automatic models supplemented by qualitative questionnaires and a geosectoral<br />
module for medium to large size businesses and a mainly judgemental model for<br />
major borrowers (i.e. groups of companies with authorised credit of greater than 20 million<br />
euro).<br />
Automatic models produce statistical summary ratings on the basis of following risk factors<br />
appropriately calibrated according to the type of counterparty or model:<br />
- economic and financial factors;<br />
- performance factors (internal and external);<br />
- qualitative factors (competitive positioning, corporate structure, etc.);<br />
- geo-sectoral factors.<br />
The major borrower model integrates an economic and financial assessment with a structured<br />
judgmental component which examines aspects such as the shareholder base, management,<br />
sector, competitive environment and financial flexibility, giving great consideration to factors<br />
relating to the group of companies to which the counterparty belongs.<br />
Taken as a whole the models just described constitute the internal rating system (IRB) of the<br />
Group managed by the Risk Management Area and by the Credit Area. It is constantly<br />
subjected to refinement in order to increase the accuracy of credit rating measurement both<br />
for individual counterparties and at aggregate level.<br />
As recommended by the Bank of Italy circular No. 263/2006, New Supervisory Instructions for<br />
Banks, the Group adopted the standardised approach for the determination of supervisory<br />
capital from 1 st January 2008. It was decided to make use, for the “businesses and other”<br />
supervisory class of exposures in particular, of external credit ratings, where available,<br />
furnished by the agencies Moody’s and Lince which are ECAIs (External Credit Assessment<br />
Institutions) recognised by the Bank of Italy.<br />
Particularly intense activity was also performed in 2008 to revise, update and adopt policies<br />
and regulations for credit risk management. Existing policies are listed below together with the<br />
principal contents:<br />
– Credit Policy, which outlines the growth strategy for the Group corporate lending<br />
portfolio;<br />
– “Country and institutional counterparty risk” policy, which sets out rules and principles<br />
for managing credit granted to resident and non resident institutional customers and<br />
also to ordinary customers in countries at risk.<br />
– Policy for the distribution of mortgage loans through intermediaries, which regulates the<br />
procedures for the use of external distribution networks for granting mortgages to non<br />
captive customers in order to contain potential credit, operational and reputational<br />
risks.<br />
– Policy on the portability, renegotiation, substitution and early repayment of the<br />
mortgages of direct customers of the network banks, which provides <strong>UBI</strong> Group<br />
guidelines for the portability (in both directions), the renegotiation, the substitution<br />
and early repayment (partial or total) of mortgages. It complies with the new regulatory<br />
framework recently introduced on the matter 25 and is also designed, in agreement with<br />
25 At the level of primary legislation: Decree Law No. 7 of 31/1/2007 (the “Bersani-bis decree”), as amended firstly on<br />
its conversion into Law No. 40 of 2/4/2007 and then by Law No. 244 of 24/12/2007 (the 2008 finance act), with<br />
663 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
sector authorities 26 , with a view to minimising the times required, the conditions and<br />
the related costs (by setting minimum services standards, amongst other things) and<br />
also to equipping the Group with appropriate processes and instruments to manage<br />
the relative risks (credit, operational and reputation).<br />
– Policy on the portability, renegotiation, substitution and early repayment of mortgages<br />
granted through intermediaries, which relates to mortgages granted on the basis of<br />
standing arrangements between the companies and banks in the Group and specific<br />
distribution networks.<br />
– Policy on “single name” credit risk concentration, which sets maximum limits on<br />
exposure to a single counterparty in order to limit risks of instability that would arise<br />
from high rates of concentration of loans on major borrowers;<br />
– Risk-adjusted pricing policy, which defines a process to formulate and implement riskadjusted<br />
pricing approaches for various products which involve the assumption of<br />
credit risk;<br />
– Policy for Centrobanca structured finance transactions, which sets specific limits and<br />
constraints (especially with regard to rating classes and maturity) for the structured<br />
finance transactions of Centrobanca. It combines the achievement of budget targets in<br />
terms of volumes disbursed and profitability with appropriate management in terms of<br />
concentration and distribution by rating classes.<br />
2.3 Techniques for mitigating credit risk<br />
The remaining positions in derivative instruments (CDS – Credit Default Swaps) existing as at<br />
31 st December 2007 amounting to approximately 341 million euro on capitalisation certificates<br />
issued by insurance companies were closed in 2008.<br />
During the same period <strong>UBI</strong> sold protection, again using CDSs, for a nominal amount of 65<br />
million euro.<br />
As concerns derivatives, overall exposure and concentration limits are laid down, as well as<br />
qualitative constraints in terms of credit standards for individual counterparties. In addition,<br />
collateral lodgement agreements (Credit Support Annex of the International Swap Derivatives<br />
Association – ISDA) have been concluded in order to reduce the scale of exposure significantly.<br />
For derivatives transactions with corporate customers, specific credit lines are opened for<br />
derivatives products, the use of which is calculated on the basis of credit equivalents,<br />
appropriately defined for each transaction.<br />
particular reference to articles 7, 8 and 8-bis (the latter makes it absolutely forbidden to charge customers for<br />
expenses relating to the preparation, production, delivery or other expenses, under any title, relating to<br />
communications connected, amongst other things, with the laws just mentioned); Decree Law No. 93 of 27/5/’08, on<br />
the renegotiation of floating rate mortgages for the purchase, construction and renovation of a principal dwelling (cf<br />
article 3 in particular) for which the conversion into law is expected along with the definition of the convention<br />
agreement it involves between the Italian Banking Association and the Ministry of the Economy and Finance to<br />
establish the details of the terms and conditions for that renegotiation.<br />
Other significant sources include: the agreement between the Italian Banking Association and consumer associations<br />
of 2/5/2007 (subsequently amended with an additional declaration on 17/3/08 to extend the scope to include<br />
mortgages assumed following division of debt) to define the maximum amount of the penalties for early repayment of<br />
mortgages existing when Decree Law No. 7/07 came into force; the land agency memorandum No. 9 of 21/6/2007<br />
containing initial indications concerning the issue of portability; the regulations for the interbank procedures for<br />
transferring details of mortgages for portability purposes defined by the Italian Banking Association with various<br />
memorandums issued between December 2007 and January ‘08; various interpretations issued by the Ministry for<br />
Economic Development on 17/3/’08 received for information purposes by the Italian Banking Association and<br />
distributed by it to its members on the treatment of notary expenses in portability transactions.<br />
26 In this respect observations were made by the Antitrust Authority on 22/11/2007 and 27/5/2008 and a note was<br />
issued by the Bank of Italy in April 2008 on the “Portability of finance contracts”.<br />
664 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Further details of credit risk mitigation methods are given in Part E of the notes to the<br />
consolidated financial statements.<br />
2.4 Impaired financial assets<br />
Limited positions are monitored at <strong>UBI</strong> of impaired financial assets.<br />
Quantitative information<br />
A. Credit quality<br />
A.1 Impaired and performing exposures: amounts, impairment losses, dynamics,<br />
economic and geographical distribution<br />
A.1.1 Distribution of financial assets by portfolio and according to credit quality<br />
(carrying amounts)<br />
Portfolios/Quality<br />
Non<br />
performing<br />
loans<br />
Impaired loans<br />
Restructured<br />
exposures<br />
Past due<br />
exposures<br />
Country risk Other assets T o tal<br />
1. Financial assets held for trading 345 - - - 51.672 2.372.094 2.424.111<br />
2. Available-for-sale financial assets - - - - - 2.767.513 2.767.513<br />
3. Held-to-maturity financial assets - - - - - 1.620.567 1.620.567<br />
4. Loans to banks - - - - 45 29.298.293 29.298.338<br />
5. Loans to customers 849 - - - - 10.445.919 10.446.768<br />
6. Financial assets at fair value - - - - 326.916 133.241 460.157<br />
7. Financial assets held for disposal - - - - - 13.931 13.931<br />
8. Hedging derivatives - - - - - 72.787 72.787<br />
31.12.2008 1.194 - - - 378.633 46.724.345 47.104.172<br />
31.12.2007 913 - - - 459.394 36.648.285 37.108.592<br />
665 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.1.2 Distribution of financial assets by portfolio and according to credit quality (gross<br />
and net amounts)<br />
Impaired assets<br />
Other assets<br />
Portfolios/Quality<br />
Gross exposure<br />
Specific<br />
impairment<br />
Portfolio<br />
impairment<br />
Net exposure<br />
Gross<br />
exposure<br />
Portfolio<br />
impairment<br />
Net exposure<br />
T o t al<br />
( N et<br />
exp o sure)<br />
1. Financial assets held for trading 3.814 (3.469) - 345 X X 2.423.766 2 . 4 2 4 . 111<br />
2. Available-for-sale financial assets - - - - 2.767.513 - 2.767.513 2 . 7 6 7 . 5 13<br />
3. Held-to-maturity financial assets - - - - 1.620.567 - 1.620.567 1. 6 2 0 . 5 6 7<br />
4. Loans to banks - - - - 29.298.338 - 29.298.338 2 9 . 2 9 8 . 3 3 8<br />
5. Loans to customers 5.833 (4.984) - 849 10.446.052 (133) 10.445.919 10 . 4 4 6 . 7 6 8<br />
6. Financial assets at fair value - - - - X X 460.157 4 6 0 . 15 7<br />
7. Financial assets held for disposal - - - - 13.931 - 13.931 13 . 9 3 1<br />
8. Hedging derivatives - - - - X X 72.787 7 2 . 7 8 7<br />
3 1.12 .2 0 0 8 9 . 6 4 7 ( 8 . 4 5 3 ) - 1. 19 4 4 4 . 14 6 . 4 0 1 ( 13 3 ) 4 7 . 10 2 . 9 7 8 4 7 . 10 4 . 17 2<br />
3 1.12 .2 0 0 7 1. 0 6 5 ( 15 2 ) - 9 13 3 3 . 3 2 4 . 4 9 2 ( 7 0 9 ) 3 7 . 10 7 . 6 7 8 3 7 . 10 8 . 5 9 1<br />
Impaired assets held for trading consisted of a bond issued by Lehman Brothers for a nominal<br />
amount of 4 million euro for which the fair value amounted to 8,625% of the nominal value.<br />
The impairment amounting to 3,5 million euro was recognised within item 80 of the income<br />
statement “Net profit (loss) from trading”. The further write-down with respect to the nominal<br />
amount (0,3 million euro) was performed in prior years.<br />
The following details on individual items are given with regard to non performing loans to<br />
customers:<br />
Description gross exposure specific net exposure<br />
impairment<br />
Lehman Brothers Special Financing 4.389,25 (4.389,25) -<br />
Lehman Brothers International Europe 479,89 (438,50) 41,39<br />
Other non performing loans to customers 964,09 (156,66) 807,43<br />
Total 5.833,23 (4.984,41) 848,83<br />
666 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.1.3 On- and off-balance sheet exposures to banks: gross and net amounts<br />
Type o f expo sure/amo unts Gro ss expo sure Specific impairment P o rtfo lio impairment Net expo sure<br />
A . O n- ba la nc e s he e t e xpo s ure<br />
a) No n perfo rming lo ans - - - -<br />
b) Impaired lo ans - - - -<br />
c) Restructured expo sures - - - -<br />
d) P ast due expo sures - - - -<br />
e) Co untry risk 11.042 X - 11.042<br />
f) Other assets 30.691.261 X - 30.691.261<br />
T o t a l A 3 0 .7 0 2 .3 0 3 - - 3 0 .7 0 2 .3 0 3<br />
B . O f f - ba la nc e - s he e t e xpo s ure s<br />
a) Impaired - - - -<br />
b) Other 3.973.997 X (2.653) 3.971.344<br />
T o t a l B 3 .9 7 3 .9 9 7 - ( 2 .6 5 3 ) 3 .9 7 1.3 4 4<br />
Off-balance sheet – other, portfolio impairment relates mainly to write-downs of guarantees<br />
granted on disbursements made by Group banks.<br />
A.1.4 On-balance sheet exposures to banks: changes in gross impaired exposures and<br />
those subject to “country risk”<br />
Description/cat egories<br />
Non performing<br />
loans<br />
Impaired loans<br />
Rest ruct ured<br />
exposures<br />
Past due exposures<br />
Count ry risk<br />
A . I ni t i al g r o ss exp o sur e - - - - 12 . 8 59<br />
- of which: exposures t ransf erred not derecognised - - - - -<br />
B . I ncr eases - - - - 2 7<br />
B .1 t ransf ers f rom perf orming exposures - - - - -<br />
B .2 t ransf ers f rom other cat egories of impaired exposures - - - - -<br />
B .3 other increases - - - - 27<br />
C . D ecr eases - - - - ( 1. 8 4 4 )<br />
C.1 t ransf ers t o perf orming exposures - - - - -<br />
C.2 writ e-off s - - - - -<br />
C.3 payment s received - - - - (1.844)<br />
C.4 f rom disposals - - - - -<br />
C.2 t ransf ers t o other cat egories of impaired exposures - - - - -<br />
C.6 other decreases - - - - -<br />
D . F i nal g r o ss exp o sur e - - - - 11. 0 4 2<br />
- of which: exposures t ransf erred not derecognised - - - - -<br />
667 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.1.5 On-balance sheet exposures to banks: changes in total net impairment losses<br />
Descript ion/ cat egories<br />
Non perf orming<br />
loans<br />
Impaired loans<br />
Rest ruct ured<br />
exposures<br />
Past due exposures<br />
Count ry risk<br />
A . T o t al i ni t i al net i mp ai r ment - - - - 1<br />
- of which: exposures transf erred not derecognised<br />
- - - - -<br />
B . I ncr eases - - - - -<br />
B.1 impairment losses - - - - -<br />
B.2 t ransf ers f rom ot her categories of impaired exposures<br />
- - - - -<br />
B.3 ot her increases - - - - -<br />
C . D ecr eases - - - - ( 1)<br />
C.1 write-backs as a result of valuation - - - - (1)<br />
C.2 write-backs f or payment s received - - - - -<br />
C.3 write-of f s - - - - -<br />
C.2 t ransf ers t o other categories of impaired exposures<br />
- - - - -<br />
C.5 other decreases - - - - -<br />
D . T o t al f i nal net i mp ai r ment - - - - -<br />
- of which: exposures transf erred not derecognised<br />
- - - - -<br />
A.1.6 On- and off-balance sheet exposures to customers: gross and net amounts<br />
Type o f expo sure/am o unts Gro ss expo sure Specific im pairm ent P o rtfo lio impairm ent Net expo sure<br />
A . O n- ba la nc e s he e t e xpo s ure<br />
a) No n perfo rming lo ans 9.647 (8.453) - 1.194<br />
b) Impaired lo ans - - - -<br />
c) Restructured expo sures - - - -<br />
d) P ast due expo sures - - - -<br />
e) Co untry risk 367.591 X - 367.591<br />
f) Other assets 14.725.005 X (133) 14.724.872<br />
T o t a l A 15 .10 2 .2 4 3 ( 8 .4 5 3 ) ( 13 3 ) 15 .0 9 3 .6 5 7<br />
B . O f f - ba la nc e - s he e t e xpo s ure s<br />
a) Impaired 6.100 (12) - 6.088<br />
b) Other 1.755.691 X (9.308) 1.746.383<br />
T o t a l B 1.7 6 1.7 9 1 ( 12 ) ( 9 .3 0 8 ) 1.7 5 2 .4 7 1<br />
Impaired off-balance sheet exposures amounting to 6,1 million euro relate to a position<br />
classified as being restructured in 2008 and on which a specific write-down of 12 thousand<br />
euro was performed.<br />
668 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.1.7 On-balance sheet exposures to customers: changes in gross impaired exposures<br />
and those subject to “country risk”<br />
Descript ion/ cat egories<br />
Non<br />
perf orming<br />
loans<br />
Impaired loans<br />
Restruct ured<br />
exposures<br />
Past due<br />
exposures<br />
Count ry risk<br />
A . I ni t i al g r o ss exp o sur e 1. 0 6 4 - - - 4 4 6 . 53 6<br />
- of which: exposures t ransf erred not derecognised - - - - -<br />
B . I ncr eases 8 . 6 8 3 - - - 3 9 6 . 50 8<br />
B.1 t ransf ers from perf orming exposures - - - - -<br />
B.2 t ransf ers f rom ot her cat egories of impaired exposures<br />
- - - - -<br />
B.3 Ot her increases 8.683 - - - 396.508<br />
C . D ecr eases ( 10 0 ) - - - ( 4 75. 4 53 )<br />
C.1 t ransf erred t o perf orming loans - - - - -<br />
C.2 writ e-of f s (100) - - - -<br />
C.3 payment s received - - - - (333.021)<br />
C.4 f rom disposals - - - - -<br />
C.2 t ransf ers t o ot her cat egories of impaired exposures - - - - -<br />
C.6 other decreases - - - - (142.432)<br />
D . F i nal g r o ss exp o sur e 9 . 6 4 7 - - - 3 6 7. 59 1<br />
- of which: exposures t ransf erred not derecognised - - - - -<br />
A.1.8 On-balance sheet exposures to customers: changes in total net impairment losses<br />
Description/categories<br />
Non performing<br />
loans<br />
Impaired loans<br />
Restructured<br />
exposures<br />
Past due exposures<br />
Country risk<br />
A . T o t al init ial net imp air ment ( 152 ) - - - -<br />
- of which: exposures transferred not derecognised - - - - -<br />
B . Incr eases ( 8 .4 0 7) - - - -<br />
B.1 impairment losses (8.407) - - - -<br />
B.2 transfers from other categories of impaired exposures<br />
- - - - -<br />
B.3 Other increases - - - - -<br />
C . D ecr eases 10 6 - - - -<br />
C.1 write-backs as a result of valuation 5 - - - -<br />
C.2 write-backs for payments received - - - - -<br />
C.3 write-offs 101 - - - -<br />
C.4 transfers to other categories of impaired exposures<br />
- - - - -<br />
C.5 other decreases - - - - -<br />
D . T o t al f inal net imp air ment ( 8 .4 53 ) - - - -<br />
- of which: exposures transferred not derecognised - - - - -<br />
669 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Lending to customers: gross and net amounts<br />
3 1.12 .2 0 0 8<br />
N o n<br />
p er f o r ming<br />
lo ans<br />
Imp air ed lo ans<br />
R est r uct ur ed<br />
exp o sur es<br />
P ast d ue<br />
exp o sur es<br />
C o unt r y r isk<br />
P er f o r ming<br />
lo ans<br />
G r o ss exp o sur e 5.8 3 3 - - - - 10 .4 4 6 .0 52<br />
- Financing 5.833 - - - - 10.327.639<br />
- Securities - - - - - 118.413<br />
S p ecif ic imp air ment ( 4 .9 8 4 ) - - - - X<br />
- Financing (4.984) - - - - X<br />
- Securities - - - - - X<br />
P o r t f o lio imp air ment - - - - - ( 13 3 )<br />
- Financing - - - - - (133)<br />
- Securities - - - - - -<br />
T O T A L 8 4 9 - - - - 10 .4 4 5.9 19<br />
670 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.2 Classification of exposures on the basis of external and internal ratings<br />
A.2.1. Distribution of on- and off-balance sheet exposures by class of external rating<br />
Expo sures External rating classes With no rating Intragro up T o t a l<br />
A aa/A a3 A 1/A 3 B aa1/B aa3 B a1/B a3 B 1/B 3<br />
A . O n ba la nc e s he e t e xpo s ure s 3 .2 2 0 .14 7 5 3 6 .17 3 2 6 .16 8 7 .0 8 0 3 .8 5 3 4 .7 4 5 .8 19 3 7 .2 5 6 .2 13 4 5 .7 9 5 .4 5 3<br />
B . D e riv a t iv e s - - - - - 5 9 9 .0 6 3 6 2 2 .9 3 7 1.2 2 2 .0 0 0<br />
B .1 Financial derivatives - - - - - 594.576 622.937 1.217.513<br />
B .2 Credit derivatives - - - - - 4.487 - 4.487<br />
C . G ua ra nt e e s gra nt e d 5 5 .18 9 5 0 .10 0 - - - 16 5 .4 2 2 3 .4 6 8 .0 8 3 3 .7 3 8 .7 9 4<br />
D . C o m m it m e nt s t o gra nt f unds 19 - - - - 3 0 0 .7 19 4 0 .2 7 9 3 4 1.0 17<br />
T o t a l 3 .2 7 5 .3 5 5 5 8 6 .2 7 3 2 6 .16 8 7 .0 8 0 3 .8 5 3 5 .8 11.0 2 3 4 1.3 8 7 .5 12 5 1.0 9 7 .2 6 4<br />
671 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.2.2. Distribution of on- and off-balance sheet exposures by class of internal rating<br />
MAJOR BORROWER SEGMENT<br />
Exposures Internal rating classes Total<br />
1 2 3 4 5 6 7 8 9 with no rating<br />
A. On balance sheet exposures - - 14.448 14.233 - 5.458 - - - 28.408 62.547<br />
B. Derivatives - - - - - - - - - - -<br />
B.1Financial derivatives - - - - - - - - - - -<br />
B.2 Credit derivatives - - - - - - - - - - -<br />
C. Guarantees granted - - 29.000 135.239 - - - - - - 164.239<br />
D. Commitments to grant funds - - - - - - - - - - -<br />
Total - - 43.448 149.472 - 5.458 - - - 28.408 226.786<br />
In consideration of the type of transactions present in the <strong>UBI</strong> <strong>Banca</strong> lending portfolio, only the ratings for “Major Borrowers” are<br />
presented. This model combines objective, quantitative judgements (represented by financial statements) with subjective and qualitative<br />
assessments based on five areas of investigation: shareholder base, management, sector, competitive environment and financial<br />
flexibility.<br />
The final rating assigned to a counterparty also gives explicit consideration to its membership of a group of companies and its strategic<br />
importance to it and/or degree of protection obtained from it.<br />
Percentage analyses of lending portfolio positions subject to internal rating<br />
The table has not been published because of the negligible percentage of the exposure that is subject to internal rating. The low percentage<br />
of cover for <strong>UBI</strong> <strong>Banca</strong> loans is because of the extremely small volume of the Bank’s traditional lending business and the prevalence of<br />
positions in financial instruments.<br />
672 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.3 Distribution of guaranteed/secured exposures by type of guarantee<br />
A.3.1 On-balance sheet guaranteed/secured exposures to banks and to customers<br />
A mo unt o f<br />
expo sure Secured (1)<br />
P erso nal guarantees (2)<br />
T o t a l<br />
( 1) +( 2 )<br />
Credit derivatives<br />
Guaranteed lo ans<br />
1. Guaranteed/secured expo sures<br />
to wards banks<br />
1.1. fully guaranteed/secured 57.055 - 57.055 - - - - - - - - - 57.055<br />
1.2. partially guaranteed/secured 4.176.910 - 4.144.292 - - - - - - - - - 4.144.292<br />
2. Guaranteed/secured expo sures<br />
to wards custo mers<br />
2.1. fully guaranteed/secured 3.076 - 3.076 - - - - - - - - - 3.076<br />
2.2. partially guaranteed/secured - - - - - - - - - - - - -<br />
Exposures to banks relate to reverse repurchase agreements entered into mainly with Group member companies. For partially<br />
secured/guaranteed exposures, the amount of the guarantee relates to the value of the security used as collateral in the repurchase<br />
agreements, while credit exposures includes amounts accruing as at 31 st December 2008.<br />
Exposures to customers related to reverse repurchase agreements entered into with the Cassa di Compensazione e Garanzia (central<br />
counterparty clearing) on 31 st December 2008.<br />
The securities underlying the reverse repurchase agreements entered into with banks in the Group were used in part for intraday<br />
advances with the Bank of Italy as follows:<br />
- securities issued by Group member companies for a nominal amount of 2.468.600 thousand euro<br />
- other securities for a nominal amount of 206.500 thousand euro.<br />
Repurchase agreements were also entered into with the ECB amounting to 400.059 thousand euro.<br />
673 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.3.2 Off-balance sheet guaranteed/secured exposures to banks and to customers<br />
There are no off-balance sheet exposures to banks and to customers<br />
A.3.3 On-balance sheet impaired guaranteed/secured exposures to banks and to customers<br />
If positions with companies connected with Lehman Brothers already reported in detail are excluded, other on-balance sheet<br />
exposures relate to unsecured positions with customers which are not significant and for which it is expected to recover the<br />
amounts recognised in the financial statements. The total exposure net of write-downs on loans amounted to 807 thousand<br />
euro.<br />
A.3.4 Off-balance sheet impaired guaranteed/secured exposures to banks and to customers<br />
There are no off-balance sheet impaired guaranteed/secured exposures to banks and to customers<br />
674 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
B. Distribution and concentration of credit<br />
B.1 Distribution by business sector of on- and off balance sheet exposures to customers<br />
Ex posures/ Count erpart ies Gov ernment s and Cent ral Banks Ot her public aut horit ies Financial c ompanies Insurance companies Non f inancial companies Ot her<br />
A . On b a l a n c e sh e e t<br />
e x p o su r e s<br />
A.1 Non perf orming loans - - - - - - - - 4. 869 (4. 828) - 41 - - - - 964 (156) - 808 3. 814 (3. 469) - 345<br />
A.2 Impaired loans - - - - - - - - - - - - - - - - - - - - - - - -<br />
A.3 Rest ruct ur ed<br />
ex posures<br />
- - - - - - - - - - - - - - - - - - - - - - - -<br />
A.4 Past due ex posur es - - - - - - - - - - - - - - - - - - - - - - - -<br />
A.5 Ot her exposures 733. 716 X - 733. 716 3. 882 X - 3. 882 8. 403. 832 X (99) 8. 403. 733 33. 251 X - 33. 251 106. 682 X (34) 106. 648 5. 811. 233 X - 5. 811. 233<br />
T o t a l 7 3 3 . 7 1 6 - - 7 3 3 . 7 1 6 3 . 8 8 2 - - 3 . 8 8 2 8 . 4 0 8 . 7 0 1 ( 4 . 8 2 8 ) ( 9 9 ) 8 . 4 0 3 . 7 7 4 3 3 . 2 5 1 - - 3 3 . 2 5 1 1 0 7 . 6 4 6 ( 1 5 6 ) ( 3 4 ) 1 0 7 . 4 5 6 5 . 8 1 5 . 0 4 7 ( 3 . 4 6 9 ) - 5 . 8 1 1 . 5 7 8<br />
B . Of f - b a l a n c e<br />
sh e e t e x p o su r e s<br />
B.1 Non perf orming loans - - - - - - - - - - - - - - - - - - - - - - - -<br />
B.2 Impaired loans - - - - - - - - - - - - - - - - - - - - - - - -<br />
B.3 Ot her impaired asset s - - - - - - - - - - - - - - - - 6. 100 (12) - 6. 088 - - - -<br />
B.4 Ot her exposures - X - - - X - - 1. 373. 694 X (1. 320) 1. 372. 374 50. 000 X - 50. 000 289. 861 X (7. 988) 281. 873 42. 136 X - 42. 136<br />
T o t a l<br />
- - - - - - - - 1 . 3 7 3 . 6 9 4 - ( 1 . 3 2 0 ) 1 . 3 7 2 . 3 7 4 5 0 . 0 0 0 - - 5 0 . 0 0 0 2 9 5 . 9 6 1 ( 1 2 ) ( 7 . 9 8 8 ) 2 8 7 . 9 6 1 4 2 . 1 3 6 - - 4 2 . 1 3 6<br />
3 1. 12 . 2 0 0 8 7 3 3 . 7 1 6 - - 7 3 3 . 7 1 6 3 . 8 8 2 - - 3 . 8 8 2 9 . 7 8 2 . 3 9 5 ( 4 . 8 2 8 ) ( 1 . 4 1 9 ) 9 . 7 7 6 . 1 4 8 8 3 . 2 5 1 - - 8 3 . 2 5 1 4 0 3 . 6 0 7 ( 1 6 8 ) ( 8 . 0 2 2 ) 3 9 5 . 4 1 7 5 . 8 5 7 . 1 8 3 ( 3 . 4 6 9 ) - 5 . 8 5 3 . 7 1 4<br />
3 1. 12 . 2 0 0 7 2 . 6 9 5 . 6 1 6 - ( 1 ) 2 . 6 9 5 . 6 1 5 2 6 - - 2 6 1 2 . 4 5 6 . 8 3 3 ( 8 2 ) ( 5 7 0 ) 1 2 . 4 5 6 . 1 8 1 9 0 1 . 6 3 8 - - 9 0 1 . 6 3 8 7 8 8 . 8 4 6 ( 5 2 ) ( 4 0 2 ) 7 8 8 . 3 9 2 9 7 . 1 3 0 ( 1 8 ) ( 3 ) 9 7 . 1 0 9<br />
675 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
B.2 Distribution of loans to resident non-financial enterprises<br />
31.12.2008<br />
- Other services destined for sale 41.790<br />
- Electrical materials and equipment 392<br />
- Commerce, recovery and repair services 230<br />
- Food products and beverages 142<br />
- Paper, printing products and publishing 43<br />
Total 42.597<br />
B.3 Geographical distribution of on- and off-balance sheet exposures to customers<br />
Exposures/Geographical areas ITALY OTHER EUROPEAN COUNTRIES AM ERICA ASIA REST OF THE WORLD<br />
Gross exposure Net exposure Gross exposure Net exposure<br />
Gross<br />
exposure<br />
Net<br />
exposure<br />
Gross<br />
exposure<br />
Net<br />
exposure<br />
Gross<br />
exposure<br />
Net<br />
exposure<br />
A . On b alance sheet exp o sures<br />
A.1 Non performing loans 964 808 - - 8.683 386 - - - -<br />
A.2 Impaired loans - - - - - - - - - -<br />
A.3 Restructured exposures - - - - - - - - - -<br />
A.4 Past due exposures - - - - - - - - - -<br />
A.5 Other transactions 14.360.153 14.360.042 181.464 181.442 493.879 493.879 3.853 3.853 53.247 53.247<br />
B . Of f - b alance sheet<br />
exp o sures<br />
T OT A L 14 .3 6 1.117 14 .3 6 0 .8 50 18 1.4 6 4 18 1.4 4 2 50 2 .56 2 4 9 4 .2 6 5 3 .8 53 3 .8 53 53 .2 4 7 53 .2 4 7<br />
B.1 Non performing loans - - - - - - - - - -<br />
B.2 Impaired loans - - - - - - - - - -<br />
B.3 Other impaired assets 6.100 6.088 - - - - - - - -<br />
B.4 other exposures 1.564.540 1.555.232 31.229 31.229 159.922 159.922 - - - -<br />
T OT A L 1.570 .6 4 0 1.56 1.3 2 0 3 1.2 2 9 3 1.2 2 9 159 .9 2 2 159 .9 2 2 - - - -<br />
3 1.12 .2 0 0 8 15.9 3 1.757 15.9 2 2 .170 2 12 .6 9 3 2 12 .6 71 6 6 2 .4 8 4 6 54 .18 7 3 .8 53 3 .8 53 53 .2 4 7 53 .2 4 7<br />
3 1.12 .2 0 0 7 14 .8 0 7.3 6 9 14 .8 0 6 .79 8 1.19 8 .116 1.19 7.9 4 5 9 0 8 .6 71 9 0 8 .2 8 6 - - 2 5.9 3 2 2 5.9 3 2<br />
676 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
B.4 Geographical distribution of on- and off-balance sheet exposures to banks<br />
Exposures/Geographical areas ITALY OTHER EUROPEAN COUNTRIES AM ERICA ASIA REST OF THE WORLD<br />
Gross exposure Net exposure Gross exposure Net exposure<br />
Gross<br />
exposure<br />
Net<br />
exposure<br />
Gross<br />
exposure<br />
Net<br />
exposure<br />
Gross<br />
exposure<br />
Net<br />
exposure<br />
A. On balance sheet exposures<br />
A.1 Non performing loans - - - - - - - - - -<br />
A.2 Impaired loans - - - - - - - - - -<br />
A.3 Restructured exposures - - - - - - - - - -<br />
A.4 Past due exposures - - - - - - - - - -<br />
A.5 Other transactions 30.070.595 30.070.595 566.857 566.857 53.814 53.814 5.331 5.331 5.706 5.706<br />
B. Of f - balance sheet<br />
exposures<br />
TOTA L 3 0 .0 70 .59 5 3 0 .0 70 .59 5 56 6 .8 57 56 6 .8 57 53 .8 14 53 .8 14 5.3 3 1 5.3 3 1 5.70 6 5.70 6<br />
B.1 Non performing loans - - - - - - - - - -<br />
B.2 Impaired loans - - - - - - - - - -<br />
B.3 Other impaired assets - - - - - - - - - -<br />
B.4 other exposures 3.265.809 2.973.309 627.759 627.759 77.776 77.776 - - - -<br />
TOTA L 3 .2 6 5.8 0 9 2 .9 73 .3 0 9 6 2 7.759 6 2 7.759 77.776 77.776 - - - -<br />
3 1.12 .2 0 0 8 3 3 .3 3 6 .4 0 4 3 3 .0 4 3 .9 0 4 1.19 4 .6 16 1.19 4 .6 16 13 1.59 0 13 1.59 0 5.3 3 1 5.3 3 1 5.70 6 5.70 6<br />
3 1.12 .2 0 0 7 2 5.3 8 4 .2 50 2 5.3 8 4 .2 18 1.6 2 6 .4 57 1.6 2 6 .4 14 4 7.757 4 7.756 17.8 0 4 17.8 0 4 12 .73 3 12 .73 3<br />
B.5 Large exposures (according to supervisory regulations)<br />
No positions were recorded in the category large exposures.<br />
677 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
C. Securitisation and asset disposal transactions<br />
C.1 Securitisation transactions<br />
Qualitative information<br />
Three securitisations were performed in 1999, 2000 and 2001 by the former <strong>Banca</strong> Popolare<br />
di Bergamo – Credito Varesino, now <strong>UBI</strong> <strong>Banca</strong> under the terms of Law No. 130/99 on<br />
performing mortgage loans to private individuals resident in Italy. These operatrions were<br />
performed to support the considerable expansion in the home mortgage lending sector.<br />
All the securitisation operations described above were carried out with the assistance of SPEs<br />
established for that purpose, as provided for by Law No. 130/1999. The Bank holds no<br />
interests in those companies, in order: Albenza Srl, Albenza 2 Società per la Cartolarizzazione<br />
Srl and Albenza 3 Società per la Cartolarizzazione Srl.<br />
The SPEs selling the securitised loans appointed <strong>UBI</strong> as the servicer. <strong>UBI</strong> in its turn signed a<br />
sub-servicing contract with its subsidiary <strong>Banca</strong> Popolare di Bergamo Spa, delegating to it<br />
principally the task of managing relations with customers, the receipt of instalments on<br />
mortgage repayments and in-court and out-of-court debt collection.<br />
The consideration received by <strong>UBI</strong> <strong>Banca</strong> during the year for that activity amounted to 176<br />
thousand euro.<br />
The Bank uses the sub-servicer support and its own Credit Area and Risk Management Area<br />
specialist departments under the direct control of the Administration and Tax Area to<br />
constantly monitor the performance of operations with the periodic production of quarterly<br />
reports to senior management and to the supervisory body on the performance of debt<br />
collection and the quality of the portfolio.<br />
During 2008 these parameters continued to be satisfactory.<br />
On 15 th August 2008 the Albenza Srl transaction was closed down in advance in accordance<br />
with contracts. The right to repurchase loans, held under contract by <strong>UBI</strong> <strong>Banca</strong> Scpa, was<br />
transferred to <strong>Banca</strong> Popolare di Bergamo Spa which recognised the loans transferred in its<br />
financial statements. The relative servicing activity therefore closed down on 31 st July 2008.<br />
To complete the information, the Albenza 2 Srl transaction was also closed down in advance<br />
on 15 th January 2009 in a similar manner and the relative servicing activity was wound up<br />
on 31 st December 2008.<br />
678 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Quantitative information<br />
C.1.1 Exposures resulting from securitisation transactions by quality of the underlying assets<br />
E xp o s u re s o n lo a n s G u a ra n t e e s g ra n t e d C re d it lin e s<br />
S e n io r M e zza n in e J u n io r S e n io r M e zza n in e J u n io r S e n io r M e zza n in e J u n io r<br />
Q u a lit y o f u n d e rlyin g a s s e t s / E xp o s u re s<br />
A . W i t h o w n u n d e r l y i n g a s s e t s : - - - - - - - - - - - - - - - - - -<br />
a ) Im p a ire d - - - - - - - - - - - - - - - - - -<br />
b ) O t h e r - - - - - - - - - - - - - - - - - -<br />
B . W i t h u n d e r l y i n g a s s e t s o f o t h e r s : 17 4 . 6 2 0 17 4 . 6 2 0 - - 2 4 . 2 5 1 2 4 . 2 5 1 - - - - - - - - - - - -<br />
a ) Im p a ire d - - - - - - - - - - - - - - - - - -<br />
b ) O t h e r 17 4 .6 2 0 17 4 .6 2 0 - - 2 4 .2 5 1 2 4 .2 5 1 - - - - - - - - - - - -<br />
C.1.2 Exposures resulting from “own” securitisation operations by type of securitised assets and by type of exposure<br />
There were no exposures resulting from “own” securitisation transactions.<br />
679 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
C.1.3 Exposures resulting from the principal “third party” securitisation transactions by type of securitised assets and by type of<br />
exposure<br />
Exposures on loans Guarantees granted Credit lines<br />
Senior M ezzanine Junior Senior M ezzanine Junior Senior M ezzanine Junior<br />
Type of underlying assets/Exposures<br />
A.1 Description<br />
ORIO FINA NCE 1 P LC - - - - - - - - - - - - - - - - - -<br />
A.2 M ortgages on properties<br />
ORIO FINA NCE 2 P LC - - - - 17.344 (442) - - - - - - - - - - - -<br />
A.3 M ortgages on properties<br />
ORIO FINA NCE 3 P LC - - - - 6.907 - - - - - - - - - - - - -<br />
A.4 M ortgages on properties<br />
CB O INVESTM ENT JERSEY LTD 44.311 24 - - - - - - - - - - - - - - - -<br />
A.5 Securities<br />
Cartolarizzazione INPS 19 TV - Società S.C.C.I. 2019 40.101 (501) - - - - - - - - - - - - - - - -<br />
A.6 A B S Securities<br />
Cartolarizzazione INPS 18 TV - Società S.C.C.I. 2019 90.208 (111) - - - - - - - - - - - - - - - -<br />
The security Orio Finance 1, recognised in the financial statements as at 31.12.2007, was called on 15.08.2008 and amounted to approximately 26,9<br />
million euro. The redemption of the security gave rises to a loss of 0,3 million euro.<br />
To complete the information the security Orio Finance 2 was called on 15.01.2009 and amounted to approximately 17 million euro (in addition to the<br />
payment of interest). The redemption of the security gave rise to a loss of approximately 0,4 million euro which was reflected in the carrying amount<br />
for the security in the financial statements as at 31 st December 2008.<br />
680 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
C.1.4 Exposures to securitisations by portfolio and type<br />
Expo sure/po rtfo lio<br />
Financial assets<br />
held fo r trading<br />
Financial assets fair<br />
value o ptio ns<br />
A vailable-fo r-sale<br />
financial assets<br />
Held-to -m aturity<br />
financial assets<br />
Lo ans 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
1. On balance sheet expo sures 6 8 .5 6 2 - 13 0 .3 0 9 - - 19 8 .8 7 1 17 9 .8 7 0<br />
- " Senio r" 44.311 - 130.309 - - 17 4 .6 2 0 12 7 .0 9 9<br />
- " M ezzanine" - - - - - - -<br />
- " Junio r" 24.251 - - - - 2 4 .2 5 1 5 2 .7 7 1<br />
2. Off-balance sheet expo sures - - - - - - -<br />
- " Senio r" - - - - - - -<br />
- " M ezzanine" - - - - - - -<br />
- " Junio r" - - - - - - -<br />
681 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
C.1.5 Total amount of the securitised assets underlying the junior securities or other<br />
forms of lending support<br />
Assets/Amounts<br />
Traditional<br />
securitisations<br />
Synthetic<br />
securitisations<br />
A. Ow n unde rlying as s e ts : - -<br />
A.1 Subject to full w rite-off - -<br />
1. Non performing loans - -<br />
2. Impaired loans - -<br />
3. Restructured exposures - -<br />
4. Past due exposures - -<br />
5. Other assets - -<br />
A.2 Subject to partial w rite-off - -<br />
1. Non performing loans - -<br />
2. Impaired loans - -<br />
3. Restructured exposures - -<br />
4. Past due exposures - -<br />
5. Other assets - -<br />
A.3 Not derecognised - -<br />
1. Non performing loans - -<br />
2. Impaired loans - -<br />
3. Restructured exposures - -<br />
4. Past due exposures - -<br />
5. Other assets - -<br />
B. Underlying as se ts of othe rs : 141.464 -<br />
B.1 Non performing loans 2.746 -<br />
B.2 Impaired loans 217 -<br />
B.3 Rescheduled exposures - -<br />
B.4 Past due exposures - -<br />
B.5 Other assets 138.501 -<br />
C.1.6 Interests in special purpose entities<br />
Section 1, sub-section C ‘securitisation and asset disposal transactions’ in Part E of the notes<br />
to the consolidated financial statements may be consulted with regard to interests held in<br />
SPEs for a description of all the securitisation transactions performed by Group member<br />
companies and the relative interests held by <strong>UBI</strong> <strong>Banca</strong> as the Parent Bank.<br />
682 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
C.1.7 Servicer activity – payments received on securitised loans and redemptions of securities issued by the special purpose entity<br />
Special purpose entity<br />
Securitised assets (end of<br />
period figure)<br />
Payments received on loans<br />
during year<br />
Percentage of securities redeemed (the end of period figure)<br />
Senior Mezzanine Junior<br />
Impaired Performing Impaired Performing<br />
Impaired<br />
assets (%)<br />
Performing<br />
assets (%)<br />
Impaired<br />
assets (%)<br />
Performing<br />
assets (%)<br />
Impaired<br />
assets (%)<br />
Performing<br />
assets (%)<br />
Albenza Srl - - - 61.222 0 % 100,00% 0 % 0 % 0 % 0 %<br />
Albenza 2 Società per la cartolarizzazione Srl 2.050 63.497 44 18.359 0,02% 77,06% 0 % 0 % 0 % 0 %<br />
Albenza 3 Società per la cartolarizzazione Srl 913 75.005 14 29.744 0 % 80,57% 0 % 0 % 0 % 0 %<br />
683 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
C.2 Disposal transactions<br />
C.2.1. Financial assets transferred not derecognised<br />
Type/ Portf olio<br />
Financial assets held f or<br />
t rading<br />
Financial asset s at f air<br />
value<br />
Available-f or-sale<br />
f inancial asset s<br />
Held-t o- mat urit y<br />
financial assets<br />
Lending to banks Lending to cust omers Total<br />
A. Financial assets<br />
1. Debt securities 556.295 231.339 254.312 - - - 127.969 783.492 907.199 632.304 687.188 988.263 30.282 6.809.103 11.626.009 - - - 9.857.972 6.264.449<br />
2. Equity instruments - - - - - - - - - - -<br />
3. O.I.C.R. - - - - - - - - - - -<br />
4. Financing - - - - - - - - - - - - - - - - - - - -<br />
5. Impaired assets - - - - - - - - - - - - - - - - - - - -<br />
B. Derivat ive inst ruments - - - - -<br />
31.12.20 08 5 5 6 . 2 9 5 2 3 1 . 3 3 9 2 5 4 . 3 1 2 - - - 1 2 7 . 9 6 9 7 8 3 . 4 9 2 9 0 7 . 1 9 9 6 3 2 . 3 0 4 6 8 7 . 1 8 8 9 8 8 . 2 6 3 3 0 . 2 8 2 6 . 8 0 9 . 1 0 3 1 1 . 6 2 6 . 0 0 9 - - - 9 . 8 5 7 . 9 7 2<br />
31.12.2 007 1 . 1 4 8 . 4 8 2 - - - - - 2 4 6 . 6 4 6 1 0 5 . 6 7 0 3 0 7 . 2 6 2 2 0 4 . 7 1 2 8 5 3 . 2 8 8 1 . 0 3 9 . 8 6 3 4 5 3 . 8 3 6 3 . 2 5 1 . 8 1 5 3 . 5 2 7 . 0 3 3 - - - 6 . 2 6 4 . 4 4 9<br />
684 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
C.2.2 Financial liabilities resulting from financial assets transferred not derecognised<br />
Lia b ilit y/ A s s e t po rt f o lio<br />
F in a nc ia l<br />
a s s e t s he ld f o r<br />
t ra d ing<br />
F in a n c ia l<br />
a s s e t s a t f a ir<br />
v a lue<br />
A v a ila b le - f o r-<br />
s a le f ina nc ia l<br />
a s s e t s<br />
H e ld - t o -<br />
m a t urit y<br />
f ina nc ia l<br />
a s s e t s<br />
Le nd ing t o<br />
ba nk s<br />
L e n din g t o<br />
c u s t o m e rs<br />
T o t a l<br />
1. D u e t o c us t o m e rs 7 14 .4 3 2 - 9 3 5 .6 2 7 2 8 9 .12 3 - - 1.9 3 9 .18 2<br />
a) against fully reco gnised assets 483.275 - 126.995 123.705 - -<br />
b) against partially reco gnised assets 231.157 - 808.632 165.418 - -<br />
2 . D u e t o ba nk s 7 1.5 18 - - 9 9 1.3 17 6 .7 7 9 .5 0 0 - 7 .8 4 2 .3 3 5<br />
a) against fully reco gnised assets 71.518 - - 460.025 30.431 -<br />
b) against partially reco gnised assets - - - 531.292 6.749.069 -<br />
3 1.12 .2 0 0 8 785.950 - 935.627 1.280.440 6.779.500 -<br />
3 1.12 .2 0 0 7 1.153.843 - 345.511 1.007.597 3.701.428 -<br />
685 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
D. Models for the measurement of credit risk<br />
The development of a portfolio credit risk model is currently continuing with regard to the<br />
measurement of credit risk. It uses an Algorithmics PCRE – portfolio credit risk engine – which<br />
considers the total risk of a credit portfolio by modelling and capturing the component that<br />
results from the correlation of counterparty defaults, calculating credit losses and capital at credit<br />
risk at portfolio level.<br />
SECTION 2 – Market risk<br />
2.1 Interest rate risk – Supervisory trading portfolio<br />
Qualitative information<br />
A. General aspects<br />
The considerations that follow relate exclusively to the “trading book”, as defined by supervisory<br />
regulations. Equity investments in other companies classified as for trading according to IAS and<br />
the portfolios for balanced trading are excluded.<br />
The management of the Group’s financial risks is centred in general on <strong>UBI</strong> by means of the<br />
Finance Area. Exception is made for the portfolio for which management has been delegated to<br />
<strong>UBI</strong> Pramerica SGR by the Parent Bank and for portfolios managed directly by Centrobanca, IW<br />
Bank, BDG and <strong>UBI</strong> <strong>Banca</strong> International.<br />
B. Processes for the management and methods of measurement of interest rate<br />
risk<br />
The guidelines for the assumption and monitoring of market risk in the <strong>UBI</strong> <strong>Banca</strong> Group are<br />
defined in the policy for financial risk management. The Parent Bank intervenes in the process of<br />
managing and monitoring financial risk as follows:<br />
• definition of methods for measuring financial risks. These methods are approved by the<br />
Management Board of the Parent Bank and are submitted to the Boards of Directors of<br />
individual Group member companies for implementation;<br />
• definition of strategic guidelines and of the target range for the total ALM positioning of the<br />
Group and individual companies (ordinarily when budgets are formulated). This<br />
positioning is approved by the <strong>UBI</strong> Management Board on the proposal of the Finance<br />
Committee and is submitted to the Boards of Directors of individual Group member<br />
companies for implementation;<br />
• definition of the type of investments, risk limits and quantification of these for the Group<br />
as a whole and for each Group member company in respect of investment portfolios. These<br />
limits are approved by the <strong>UBI</strong> Management Board on the proposal of the Finance<br />
Committee and are submitted to the Boards of Directors of individual Group member<br />
companies for implementation;<br />
• monitoring, co-ordination and strategic control by the Finance Committee on<br />
developments in the management of financial risks. Reports on portfolios subject to credit<br />
risk must be systematically forwarded also to the Credit Area;<br />
686 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
• in the presence of particular conditions, the Finance Committee makes proposals for<br />
urgent intervention and corrective action if necessary to Group risk assumption centres;<br />
• design and management of the system of internal controls, in accordance with the relative<br />
specific regulations.<br />
Further information is given in the corresponding sub-section of the notes to the consolidated<br />
financial statements which may be consulted.<br />
Quantitative information<br />
1. Supervisory trading portfolio: distribution by residual life (date of repricing) of the<br />
financial assets and liabilities and financial derivatives.<br />
This section has not been provided because the subsequent section provides an analysis of<br />
sensitivity to interest rate risk.<br />
2. Supervisory trading portfolio: internal models and other methods of sensitivity analysis.<br />
The graph below shows the changes in daily VaR that occurred in 2008 for the <strong>UBI</strong> <strong>Banca</strong> trading<br />
portfolios.<br />
Change in market risk: daily market VaR for <strong>UBI</strong> <strong>Banca</strong> in 2008<br />
6,000,000<br />
5,000,000<br />
4,000,000<br />
3,000,000<br />
2,000,000<br />
1,000,000<br />
0<br />
Market VaR does not include VaR on hedge funds, instruments for which a specific investment policy is employed as<br />
detailed in sub-section 2.3<br />
687 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
VaR by risk factor calculated on the entire <strong>UBI</strong> <strong>Banca</strong> trading book as at 31 st December 2008 is<br />
given below.<br />
<strong>UBI</strong><br />
Trading Portfolio<br />
31-dec-08<br />
Currency risk 49.333<br />
Interest rate risk 4.998.440<br />
Equity risk 2.233.737<br />
Credit risk 313.783<br />
Volatility risk 216.524<br />
Diversification effect (*) (3.079.718)<br />
Total 4.732.099<br />
(2) The diversification effect is given by the imperfect correlation between the different risk factors present in the portfolio.<br />
Backtesting analysis<br />
Backtesting analysis is designed to monitor the predictive power of the VaR model adopted. It<br />
uses a theoretical Profit & Loss calculated on the basis of hypothetical changes in the value of the<br />
portfolio, determined by revaluing at the time “t” the positions at the end of the day at “t-1”<br />
(assuming the positions are unchanged).<br />
The backtesting analysis for the <strong>UBI</strong> <strong>Banca</strong> trading book in 2008 is given below. Backtesting on<br />
the <strong>UBI</strong> <strong>Banca</strong> supervisory trading book recorded five cases when the P&L was exceeded with<br />
respect to the VaR limit due to conditions of particular stress on financial markets.<br />
<strong>UBI</strong> <strong>Banca</strong> Trading Book: Backtesting 2008<br />
11,700,000<br />
6,700,000<br />
1,700,000<br />
-3,300,000<br />
-8,300,000<br />
688 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Stress test analyses<br />
The Group has a stress testing programme designed to analyse the reaction of portfolios to risk<br />
factor shocks with the objective of verifying the capacity of the supervisory capital to absorb very<br />
large potential losses and to identify possible measures needed to reduce risks and conserve the<br />
capital itself.<br />
The stress tests are based on theoretical shocks: they consist of specially created extreme shifts in<br />
interest rate (short, medium and long term), credit spread, exchange rate, equity price and<br />
volatility curves.<br />
The results of the theoretical stress tests performed on the <strong>UBI</strong> <strong>Banca</strong> portfolios are given below.<br />
The effect of theoretical shocks on the <strong>UBI</strong> <strong>Banca</strong> trading and banking books<br />
Date 31/12/2008<br />
<strong>UBI</strong> <strong>UBI</strong> Total<br />
Trading Book Banking Book <strong>UBI</strong><br />
Change in NAV % Change in NAV % Change in NAV %<br />
Risk Factors IR<br />
Shock Parallel+(+50b.p.) -25.013.290 -2,35% -20.184.552 -0,54% -45.197.842 -0,94%<br />
Risk Factors IR<br />
Shock Parallel- (-50b.p.) 26.068.783 2,45% 19.875.742 0,53% 45.944.525 0,95%<br />
Risk Factors IR<br />
Shock Peak+(+40b.p. on intermediate curve) -4.254.547 -0,40% -14.776.578 -0,39% -19.031.125 -0,39%<br />
Risk Factors IR<br />
Shock Peak-(-40b.p. on intermediate curve) 3.730.484 0,35% 15.007.975 0,40% 18.738.458 0,39%<br />
Risk Factors IR<br />
Shock Tilt+(flattening of the curve) -30.212.382 -2,84% -32.810.913 -0,87% -63.023.295 -1,31%<br />
Risk Factors IR<br />
Shock Tilt- (steepening of the curve) 31.189.757 2,93% 32.621.699 0,87% 63.811.456 1,32%<br />
Risk Factors IR<br />
Shock +1 b.p. -509.749 -0,05% -398.412 -0,01% -908.161 -0,02%<br />
Risk Factors IR<br />
Shock -1 b.p. 510.220 0,05% 398.278 0,01% 908.498 0,02%<br />
Risk Factors IR<br />
Shock +100 b.p. -49.398.521 -4,65% -41.159.781 -1,09% -90.558.303 -1,88%<br />
Risk Factors IR<br />
Shock -100 b.p. 53.260.249 5,01% 40.386.954 1,07% 93.647.203 1,94%<br />
Risk Factors Equity<br />
Shock 10% 1.619.451 0,15% 1.903.630 0,05% 3.523.081 0,07%<br />
Risk Factors Equity<br />
Shock -10% -1.619.674 -0,15% - 1.903.630 -0,05% -3.523.304 -0,07%<br />
Risk Factors Volatility<br />
Shock 20% -324.499 -0,03% 666.211 0,02% 341.711 0,01%<br />
Risk Factors Volatility<br />
Shock -20% 243.466 0,02% - 1.263.348 -0,03% -1.019.882 -0,02%<br />
Risk Factors Credit Spread<br />
Shock -1.851.795 -0,17% -27.838.399 -0,74% -29.690.194 -0,62%<br />
The analysis shows the greater sensitivity of all the <strong>UBI</strong> <strong>Banca</strong> portfolios (and of the banking book<br />
portfolios) to interest rates shocks (consistent with the predominant presence of bonds and<br />
capitalisation certificates in them) compared to changes in other risk factors.<br />
689 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2.2 Interest rate risk – banking portfolio<br />
The banking portfolio consists of all those financial instruments, assets and liabilities, not<br />
included in the trading portfolio, dealt with in section 2.1.<br />
Qualitative information<br />
A. General aspects, processes for the management and methods of measurement of<br />
interest rate risk<br />
The monitoring and management of structural interest rate risk - from fair value and from cash<br />
flow – is performed by the Risk Management Area of the Parent Bank and extends to include all<br />
interest rate sensitive banks and companies in the Group.<br />
The Supervisory Board of the Parent Bank defines, on proposal of the Strategy and Control Macro<br />
Area, the strategic policies and the positioning range – expressed in terms of sensitivity – for<br />
interest rate risk, for both the Group as a whole.<br />
The Management Board defines an early warning threshold for the position of the Group and<br />
exposure limits – generally expressed in terms of a percentage of the individual supervisory capital<br />
– for each company belonging to the Group.<br />
A policy of basic balancing in terms of exposure to interest risk is defined by the Supervisory<br />
Board at individual company level, although there are some specific exceptions identified by the<br />
Management Board.<br />
The methods employed for measuring interest rate risk consist mainly of gap analysis and<br />
sensitivity analysis. Sensitivity analysis of economic value is flanked by sensitivity analysis of net<br />
interest income which focuses on changes in profits in the following twelve months.<br />
B. Fair value hedging<br />
Specific and macro hedges were performed by <strong>UBI</strong> <strong>Banca</strong> using financial derivative instruments<br />
(fair value hedges) only, in order to reduce exposure to adverse changes in fair value due to<br />
interest rate risk. More specifically, fixed and mixed interest rate loans with a term of longer than<br />
one year (macro hedge), fixed rate bond issues (specific hedge), structured bonds and some<br />
securities in the AFS portfolio were subject to hedging. The derivative contracts used were of the<br />
interest rate swap type.<br />
Activity to test the effectiveness of cash flow hedges is performed by the Financial Risks Service.<br />
Tests for effectiveness are performed prospectively when a hedge is first implemented and this is<br />
followed by monthly retrospective tests.<br />
C. Cash flow hedging<br />
<strong>UBI</strong> <strong>Banca</strong> performs no cash flow hedging in compliance with IAS rules.<br />
Quantitative information<br />
690 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1. Banking portfolio: distribution by residual life (by repricing date) of the financial<br />
assets and liabilities<br />
This sub-section has not been provided because the subsequent sub-section provides a sensitivity<br />
analysis to interest rate risk.<br />
2. Banking portfolio: internal models and other methods of sensitivity analysis.<br />
Interest rate risk for <strong>UBI</strong> <strong>Banca</strong>, measured by means of sensitivity analysis in a scenario of a<br />
parallel shift in the yield curve of +100 bp, amounted to -66,95 million euro at the end of the year<br />
(+19,62 million euro as at 31 st December 2007). That level of exposure includes approximately -<br />
36,65 million euro of sensitivity from hedging derivatives contracts concluded with Group member<br />
companies, in line with the financial risks policy of the Group. Gross of that component, which<br />
because it is attributable to trading derivatives is also included in the calculations relating to<br />
interest rate risk on the trading portfolio, the sensitivity of the position of <strong>UBI</strong> <strong>Banca</strong> itself stands<br />
at around approximately -30,30 million euro.<br />
During January and February of 2009 further financial derivatives contracts were entered into to<br />
bring the exposure of the network banks below the threshold set by financial risk policy and these<br />
were only partially closed on the market. Net of the those contracts, total exposure to interest rate<br />
risk (scenario +100 b.p.) amounted to -85,69 million euro equal to approximately 0,61% of the<br />
supervisory capital.<br />
The table below gives the risk measured for the periods cited for a standardised parallel shift in<br />
the curve of 200 bp, in compliance with the requirements of Basle 2, measured on the supervisory<br />
capital at the end of the period.<br />
Risk indicators – annual average<br />
2008<br />
2007<br />
parallel shift of 200 bp<br />
sensitivity/supervisory capital 0.3% 0.2%<br />
Risk indicators – end of year values 31/12/2008 31/12/2007<br />
parallel shift of 200 bp<br />
sensitivity/supervisory capital 1.3% 0.3%<br />
The impact as at 31 st December 2008 on net interest income assuming a shift of +100 basis<br />
points on the yield curve was -48,71 million euro.<br />
691 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Details are given below of the capital profiles by repricing date and the composition of sensitivity<br />
(+100 b.p.) by time bucket. Consistent with the risk indicators mentioned, the graphs include the<br />
gap and sensitivity components of the trading derivative contracts entered into with the Network<br />
Banks in order to reduce the individual exposure on the banking book portfolios of those banks to<br />
interest rate risk.<br />
Profilo del Gap di periodo<br />
Data cut-off: 31/12/2008<br />
6000<br />
4000<br />
2000<br />
0<br />
-2000<br />
-4000<br />
-6000<br />
-8000<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />
R ep ring Gap Sb ilancio D erivat i Gap C o mp lessivo<br />
Medium-to-long term sensitivity<br />
Cut-off date: 31/12/2008<br />
15<br />
10<br />
5<br />
0<br />
-5<br />
-10<br />
-15<br />
-20<br />
-25<br />
-30<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />
Po st e Sensib ili D erivat i Sensit ivit y T o t ale ( +10 0 b p s)<br />
At the end of December the total VaR for the banking book portfolios of <strong>UBI</strong> <strong>Banca</strong> amounted to<br />
6,817 million euro (7,79 million as at 30 th June 2008) with an NAV of 3.759,098 million euro<br />
(3.377,73 million as at 30 th June 2008).<br />
692 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2.3 Price risk – supervisory trading portfolio<br />
Qualitative information<br />
A. General aspects<br />
This is the risk of changes in price as a function of fluctuations in market variables and specific<br />
factors relating to issuers or counterparties.<br />
As concerns, Information on general and organisational aspects, it is given in the section “interest<br />
rate risk-trading portfolio”, which may be consulted.<br />
The risk of losses caused by unfavourable changes in the price of traded financial instruments<br />
due to factors related to the issuer can be the result of daily trading activity (idiosyncratic risk) or<br />
of a sudden change in price with respect to general market trends (event risk, such as the risk of<br />
default by the issuer caused by a change in the market’s expectation that an itself issuer will<br />
default).<br />
B. Processes for the management and methods for the measurement of price risk<br />
The <strong>UBI</strong> model for managing specific risk for debt securities is capable of detecting the first of the<br />
two components (idiosyncratic risk) because it considers spread curves by economic sector and<br />
rating class as risk factors.<br />
Total risk on equity instruments (and OICR – collective investment instruments) is measured by<br />
considering single shares as risk factors and it includes both the generic risk component (i.e. the<br />
risk of losses caused by unfavourable trends in the prices of the financial instruments traded in<br />
general) and a specific component relating to the situation of the issuer.<br />
As concerns hedge funds, the system of limits on investments and the method of calculating<br />
financial risks are governed by a specific policy approved by the Management Board of the <strong>UBI</strong><br />
Group.<br />
More specifically, qualitative and quantitative limits are defined to guarantee an adequate degree<br />
of diversification and liquidity, to set the maximum acceptable loss and to measure the risk profile<br />
implicit in the portfolio (maximum capital, limits on the composition of the portfolio, liquidity of<br />
funds, VaR, maximum cumulative loss).<br />
The VaR on hedge funds is calculated using the “Style Analysis” method with a confidence interval<br />
of 99% and a holding period of 2 months (consistent with the average time required to liquidate<br />
the investment). “Style analysis” is the sensitivity of the returns on a single fund to a limited set of<br />
market factors, consisting of the performances of the indices of CSFB Tremont funds in relation to<br />
different strategies for managing hedge funds. A systematic VaR is calculated for each fund which<br />
identifies the risk component given by the combination of market factors, which is therefore<br />
diversifiable, and a specific VaR (idiosyncratic), linked to the behaviour of the fund manager. Total<br />
VaR is given by the combination of systematic VaR and specific VaR, assuming non correlation<br />
between the two.<br />
At the end of December 2008, the method for calculating VaR was applied to funds amounting to<br />
approximately 508 million euro. The VaR used was approximately 43 million euro (against a limit<br />
of 50 million euro). The investments were denominated exclusively in euro (49.9% of NAV) and in<br />
USD (50.1% of NAV) and they were mainly in multi-strategy funds (more than 21% of NAV), which<br />
involve internal diversification of the management strategies, in event driven funds (19% of NAV),<br />
in long/short equity funds (16% of NAV), in equity market neutral funds (14.5% of NAV) and in<br />
fixed income arbitrage funds (13% of NAV).<br />
693 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Quantitative information<br />
1. Supervisory trading portfolio: on-balance sheet exposure in equity and O.I.C.R.<br />
(collective investment) instruments<br />
Type of exposure/V alues<br />
Listed<br />
Carrying amount<br />
Unlisted<br />
A. Equity ins trum e nts 123.026 19.047<br />
A .1 Shares 123.026 19.047<br />
A .2 Innovative capital instruments - -<br />
A .3 Other equity instruments - -<br />
B. O.I.C.R. 48.278 -<br />
B.1 Italian registered - -<br />
- harmonized open-ended - -<br />
- non harmonized open-ended - -<br />
- closed - -<br />
- reserved - -<br />
- speculative - -<br />
B.2 Other EU countries 2.066 -<br />
- harmonized open-ended - -<br />
- non harmonized open-ended 2.066 -<br />
- non haromonized closed - -<br />
B.3 Non EU countries 46.212 -<br />
- open-ended 37.920 -<br />
- closed 8.292 -<br />
Total 171.304 19.047<br />
2. Supervisory trading portfolio: distribution of exposures in equity instruments and<br />
share indices by the principal markets in which they are listed<br />
Type of operation/Where listed<br />
A . Equity instruments<br />
Listed<br />
ITALY FRANCE HOLLAND GERM ANY SPAIN<br />
OTHER<br />
COUNTRIES<br />
Unlisted<br />
- long positions 78.502 6.257 9.767 17.219 7.124 4.158 -<br />
- short positions - - - - - - -<br />
B . T rades in equity instruments no t yet<br />
settled<br />
- long positions - - - - - - -<br />
- short positions - - - - - - -<br />
C . Other derivatives o n equity instruments<br />
- long positions - - - - - - -<br />
- short positions - - - 10 - - 75<br />
D . D erivatives o n share indices<br />
- long positions - - - - - 3.991 25.180<br />
- short positions - - - 113.047 - - 1.125<br />
694 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
3. Supervisory trading portfolio: internal models and other methods of sensitivity<br />
analysis<br />
Information on the model used to analyse price risk sensitivity for the supervisory dealing<br />
portfolio is contained in the relative section on the analysis of interest rate risk which may be<br />
consulted.<br />
695 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2.4 Price risk – banking portfolio<br />
Qualitative information<br />
A. General aspects, management processes and methods of measuring price risk<br />
The management of price risk for the banking book forms part of the activities described in the<br />
information given for the trading book; the financial instruments other than those included in<br />
that information are not subject to price risk.<br />
B. Price risk hedging<br />
As described in the preceding sub-section, information on this activity is given in the sections on<br />
the trading portfolio.<br />
Quantitative information<br />
1. Banking portfolio: : on-balance sheet exposure in equity and O.I.C.R. (collective<br />
investment) instruments<br />
Type of exposure/Amounts<br />
Listed<br />
Carrying amount<br />
Unlisted<br />
A. Equity instruments - -<br />
A.1 Shares - -<br />
A.2 Innovative capital instruments - -<br />
A.3 Other equity instruments - -<br />
B. O.I.C.R. 474.242 72.140<br />
B.1 Italian registered 32.604 60.197<br />
- harmonized open-ended - -<br />
- non harmonized open-ended - 4.799<br />
- closed 14.085 45.592<br />
- reserved - 2.980<br />
- speculative 18.519 6.826<br />
B.2 Other EU countries 85.898 1.393<br />
- harmonized open-ended 42.913 79<br />
- non harmonised open-ended 32.677 -<br />
- non harmonised closed 10.308 1.314<br />
B.3 Non EU countries 355.740 10.550<br />
- open-ended 324.342 5.189<br />
- closed 31.398 5.361<br />
Total 474.242 72.140<br />
696 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2. Banking portfolio: internal models and other methods of sensitivity analysis.<br />
Information on the model used to analyse price risk sensitivity for the banking portfolio is<br />
contained in section 2.1 on the analysis of interest rate risk which may be consulted.<br />
2.5 Currency risk<br />
Qualitative information<br />
A. General aspects, management processes and methods of measuring currency risk<br />
Currency risk is calculated on the basis of the methods recommended by the Bank of Italy and<br />
amounts to 8% of the net foreign exchange position. The latter is calculated as the higher (in<br />
absolute terms) of the sum of the net long positions and the sum of the net short positions<br />
(position for each currency) to which the currency risk implicit in investments in OICRs (collective<br />
investment instruments) is added.<br />
B. Currency risk hedging<br />
Information on the analysis of hedging for currency risk is contained in section 2.2 on the<br />
analysis of interest rate risk which may be consulted.<br />
697 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Quantitative information<br />
Absorption of capital for currency risk as at 31 st December 2008 amounted to around 65,6 million euro, a slight reduction compared to<br />
the figure for June 2008. This trend is attributable to a progressive reduction performed in the second half of 2008 in investments in<br />
hedge funds, to which the capital requirement for currency risk is primarily associated.<br />
1. Distribution of assets, liabilities and derivatives by foreign currency in which they are denominated<br />
It ems<br />
USA DOLLAR UK STERLING JAPANESE YEN SWISS FRANC NORWEGIAN CROWN OTHER CURRENCIES<br />
A . Fi na nc i a l a sse t s 5 6 9 . 13 7 8 7 . 2 13 5 9 . 3 10 4 12 . 2 3 7 3 . 2 8 0 5 2 . 9 0 7<br />
A.1 Debt securit ies 4.875 - - - - 3.853<br />
A.2 Equit y inst rument s - 8.515 - - - -<br />
A.3 Financing t o banks 353.590 77.564 59.310 412.140 3.280 48.982<br />
A.4 Financing t o cust omers 639 1.134 - 97 - 72<br />
A.5 Ot her f inancial asset s 210.033 - - - - -<br />
B . Ot he r a sse t s - - - - - -<br />
C . Fi na nc i a l l i a bi l i t i e s 4 13 . 0 3 9 10 1. 8 0 9 4 6 . 4 6 4 9 0 . 6 5 8 4 . 0 6 5 3 9 . 8 0 8<br />
C.1 Due t o banks 379.013 98.829 29.543 90.161 3.906 37.888<br />
C.2 Due t o cust omers 34.026 2.980 16.921 497 159 1.920<br />
C.3 Debt securit ies - - - - - -<br />
D . Ot he r l i a bi l i t i e s - - - - - -<br />
E. Fi na nc i a l D e r i v a t i v e s<br />
E.1 Opt ions<br />
E.1.1 Long posit ions 51.841 - - 11.352 - -<br />
E.1.2 Short posit ions 52.464 - - 11.352 - -<br />
E.1 Ot her derivat ives<br />
E.1.1 Long posit ions 848.057 211.008 409.563 7.928 672 57.822<br />
E.1.2 Short posit ions 1.053.700 199.383 421.192 337.085 571 70.890<br />
Tot a l a sse t s 1. 4 6 9 . 0 3 5 2 9 8 . 2 2 1 4 6 8 . 8 7 3 4 3 1. 5 17 3 . 9 5 2 110 . 7 2 9<br />
Tot a l l i a bi l i t i e s 1. 5 19 . 2 0 3 3 0 1. 19 2 4 6 7 . 6 5 6 4 3 9 . 0 9 5 4 . 6 3 6 110 . 6 9 8<br />
B a l a nc e ( +/ - ) ( 5 0 . 16 8 ) ( 2 . 9 7 1) 1. 2 17 ( 7 . 5 7 8 ) ( 6 8 4 ) 3 1<br />
698 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2. Internal models and other methods of sensitivity analysis.<br />
Information on the sensitivity model is contained in section 2.1 on the analysis of interest rate risk which may be consulted.<br />
699 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2.6 Derivative financial instruments<br />
A. Financial derivatives<br />
A.1 Supervisory trading portfolio: notional, end of period and average figures<br />
Type of transaction/Underlying elements Debt securities and interest rates Equity instruments and share indices Exchange rates and gold Other values 3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Listed Unlisted Listed Unlisted Listed Unlisted Listed Unlisted Listed Unlisted Listed Unlisted<br />
1. Forw ard rate agreement - - - - - - - - - - - -<br />
2. Interest rate sw ap - 60.379.884 - - - - - - - 60.379.884 - 34.780.329<br />
3. Domestic currency sw ap - - - - - - - - - - - -<br />
4. Currency interest rate sw ap - - - - - - - - - - - -<br />
5. Basis sw ap - 19.490.575 - - - - - - - 19.490.575 - 8.487.787<br />
6. Share index sw ap - - - - - - - - - - - -<br />
7. Real index sw aps - - - - - - - - - - - -<br />
8. Futures 2.395.950 - 116.967 - - - - - 2.512.917 - 4.126.433 -<br />
9. Cap options - 17.671.759 - - - - - - - 17.671.759 - 17.394.694<br />
- Purchased - 8.792.373 - - - - - - - 8.792.373 - 8.501.837<br />
- Issued - 8.879.386 - - - - - - - 8.879.386 - 8.892.857<br />
10.Floor options - 5.984.599 - - - - - - - 5.984.599 - 7.047.481<br />
- Purchased - 3.046.543 - - - - - - - 3.046.543 - 3.967.859<br />
- Issued - 2.938.056 - - - - - - - 2.938.056 - 3.079.622<br />
11. Other options 126 660.000 - 85.157 - 83.462 - - 126 828.619 - 3.129.132<br />
- Purchased 63 200.000 - 83.832 - 40.579 - - 63 324.411 - 1.420.133<br />
- Plain vanilla 63 200.000 - 83.832 - 33.429 - - 63 317.261 - 1.016.963<br />
- Exotic - - - - - 7.150 - - - 7.150 - 403.170<br />
- Issued 63 460.000 - 1.325 - 42.883 - - 63 504.208 - 1.708.999<br />
- Plain vanilla 63 460.000 - 1.325 - 35.733 - - 63 497.058 - 1.305.829<br />
- Exotic - - - - - 7.150 - - - 7.150 - 403.170<br />
12. Forw ard contracts - - - - - 3.605.905 - - - 3.605.905 - 5.188.445<br />
- Purchases - - - - - 1.526.767 - - - 1.526.767 - 2.183.223<br />
- Sales - - - - - 2.073.106 - - - 2.073.106 - 2.598.348<br />
- Betw een tw o foreign currencies - - - - - 6.032 - - - 6.032 - 406.874<br />
13. Other derivatives contracts - - - - - - - 10.565 - 10.565 - 151.484<br />
Total 2.396.076 104.186.817 116.967 85.157 - 3.689.367 - 10.565 2.513.043 107.971.906 4.126.433 76.179.352<br />
Average amounts 3.261.158 86.306.054 58.580 893.304 - 4.795.245 - 81.025 3.319.738 92.075.628 3.044.698 77.653.708<br />
700 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.2 Banking portfolio: notional, end of period and average figures<br />
A.2.1 For hedging<br />
Type of derivat ives/ Dif f er ences<br />
Debt securit ies and int er est<br />
r at es<br />
Equit y inst r ument s and share<br />
indices<br />
Exchange r at es and gold Ot her values 3 1. 12 . 2 0 0 8 3 1. 12 . 2 0 0 7<br />
List ed Unlist ed List ed Unlist ed List ed Unlist ed List ed Unlist ed List ed Unlist ed List ed Unlist ed<br />
1. Forwar d r at e agr eement - - - - - - - - - - - -<br />
2. Int erest r at e swap - 3.821.663 - - - - - - - 3 . 8 2 1. 6 6 3 - 2 . 9 5 2 . 9 6 8<br />
3. Domest ic curr ency swap - - - - - - - - - - - -<br />
4. Cur rency int erest r at e swap - - - - - - - - - - - -<br />
5. Basis swap - 100.000 - - - - - - - 10 0 . 0 0 0 - 17 6 . 6 4 6<br />
6. Share index swap - - - - - - - - - - - -<br />
7. Real index swaps - - - - - - - - - - - -<br />
8. Fut ures - - - - - - - - - - - -<br />
9. Cap opt ions - 125.000 - - - - - - - 12 5 . 0 0 0 - -<br />
- Pur chased - 25.000 - - - - - - - 2 5 . 0 0 0 - -<br />
- Issued - 100.000 - - - - - - - 10 0 . 0 0 0 - -<br />
10.Floor opt ions - - - - - - - - - - - 5 1. 6 4 6<br />
- Pur chased - - - - - - - - - - - 5 1. 6 4 6<br />
- Issued - - - - - - - - - - - -<br />
11. Ot her opt ions - - - - - - - - - - - -<br />
- Pur chased - - - - - - - - - - - -<br />
- Plain vanilla - - - - - - - - - - - -<br />
- Exot ic - - - - - - - - - - - -<br />
- Issued - - - - - - - - - - - -<br />
- Plain vanilla - - - - - - - - - - - -<br />
- Exot ic - - - - - - - - - - - -<br />
12. Forward cont ract s - - - - - - - - - - - -<br />
- Pur chases - - - - - - - - - - - -<br />
- Sales - - - - - - - - - - - -<br />
- Bet ween t wo f or eign currencies - - - - - - - - - - - -<br />
13. Ot her derivat ives cont ract s - - - - - - - - - - - -<br />
T o t a l - 4 . 0 4 6 . 6 6 3 - - - - - - - 4 . 0 4 6 . 6 6 3 - 3 . 18 1. 2 6 0<br />
A v e r a g e a m o u n t s - 3 . 8 13 . 9 6 2 - - - - - - - 3 . 8 13 . 9 6 2 - 6 . 10 4 . 3 8 9<br />
701 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.2.2 Other derivatives<br />
Type of derivatives/Underlying assets<br />
Debt securities and interest<br />
rat es<br />
Equity instruments and share<br />
indices<br />
Exchange rates and gold Other values 3 1. 12 .2 0 0 8 3 1.12 .2 0 0 7<br />
Listed Unlisted Listed Unlist ed List ed Unlisted Listed Unlisted Listed Unlist ed List ed Unlisted<br />
1. Forward rate agreement - - - - - - - - - - - -<br />
2. Interest rat e swap - 199.150 - - - - - - - 19 9 .150 - -<br />
3. Domestic currency swap - - - - - - - - - - - -<br />
4. Currency interest rate swap - - - - - - - - - - - -<br />
5. B asis swap - - - - - - - - - - - -<br />
6. Share index swap - - - - - - - - - - - -<br />
7. Real index swaps - - - - - - - - - - - -<br />
8. Fut ures - - - - - - - - - - - -<br />
9. Cap options - - - - - - - - - - - -<br />
- Purchased - - - - - - - - - - - -<br />
- Issued - - - - - - - - - - - -<br />
10.Floor options - - - - - - - - - - - -<br />
- Purchased - - - - - - - - - - - -<br />
- Issued - - - - - - - - - - - -<br />
11. Other options - 48.990 - 7.341.062 - 14.678 - - - 7. 4 0 4 .73 0 - 2 .8 73 .6 15<br />
- Purchased - 24.495 - 4.380.429 - 7.339 - - - 4 .4 12 . 2 6 3 - 2 .4 0 3 .4 3 4<br />
- Plain vanilla - 24.495 - 4.073.616 - 7.339 - - - 4 .10 5.4 50 - 2 . 18 0 .9 76<br />
- Exotic - - - 306.813 - - - - - 3 0 6 .8 13 - 2 2 2 .4 58<br />
- Issued - 24.495 - 2.960.633 - 7.339 - - - 2 .9 9 2 .4 6 7 - 4 70 . 18 1<br />
- Plain vanilla - 24.495 - 2.653.820 - 7.339 - - - 2 .6 8 5.6 54 - 2 4 9 .6 9 5<br />
- Exotic - - - 306.813 - - - - - 3 0 6 .8 13 - 2 2 0 .4 8 6<br />
12. Forward contract s - - - - - - - - - - - -<br />
- Purchases - - - - - - - - - - - -<br />
- Sales - - - - - - - - - - - -<br />
- B etween t wo foreign currencies - - - - - - - - - - - -<br />
13. Ot her derivatives contract s - - - - - - - - - - - -<br />
T o t al - 2 4 8 .14 0 - 7.3 4 1. 0 6 2 - 14 .6 78 - - - 7.6 0 3 . 8 8 0 - 2 .8 73 .6 15<br />
A ver ag e amo unt s - 14 8 .3 4 1 - 5.0 8 3 . 0 6 8 - 7.3 3 9 - - - 5. 2 3 8 .74 8 - 2 .9 9 4 .4 9 0<br />
702 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.3 Financial derivatives: purchase and sale of underlying assets<br />
Type o f transactio n/ Underlying assets Deb t securit ies and int erest rat es Eq uity instruments and share ind ices Exchange rates and go ld Ot her values 3 1.12 . 2 0 0 8 3 1. 12 .2 0 0 7<br />
Listed Unlist ed Listed Unlisted List ed Unlisted Listed Unlisted Listed Unlist ed List ed Unlisted<br />
A . Sup e r v iso r y t r ad ing p o r t f o lio 2 .3 9 6 .0 76 8 4 .6 9 6 .2 4 2 116 .9 6 7 8 5 .15 7 - 3 . 6 8 9 .3 6 7 - 10 .56 5 2 .513 .0 4 3 8 8 . 4 8 1. 3 3 1 4 . 12 6 . 4 3 3 6 7 .6 9 1. 56 6<br />
1. Transactions with exchang e of principal 9 8.9 50 - 116.96 7 58 .852 - 3.6 89 .3 67 - - 2 15 .9 17 3 .74 8 .2 19 12 8 .3 6 1 6 . 6 0 1. 3 7 6<br />
- Purchases 9 8.9 50 - 6.63 6 20 0 - 1.560 .9 52 - - 10 5 .58 6 1. 56 1.152 6 1.3 9 3 2 .8 6 4 .3 0 5<br />
- Sales - - 110 .33 1 58 .652 - 2.101.6 90 - - 110 .3 3 1 2 .16 0 .3 4 2 6 6 .9 6 8 3 . 3 3 0 . 19 7<br />
- B etween two f oreig n currencies - - - - - 26 .725 - - - 2 6 .72 5 - 4 0 6 .8 7 4<br />
2 . Transact ions without exchange o f p rincip al 2 .29 7.126 8 4.69 6.2 42 - 26 .30 5 - - - 10.565 2 .2 9 7 .12 6 8 4 .73 3 . 112 3 .9 9 8 .0 7 2 6 1.0 9 0 . 19 0<br />
- Purchases 2.29 7.0 63 41.96 5.760 - 25.18 0 - - - 5.2 83 2 .2 9 7 .0 6 3 4 1.9 9 6 .2 2 3 3 .6 9 3 .0 0 0 2 9 .4 8 2 . 3 9 7<br />
- Sales 63 4 2 .73 0.4 82 - 1.12 5 - - - 5.2 82 6 3 4 2 .73 6 .8 8 9 3 0 5.0 7 2 3 1.6 0 7. 79 3<br />
- B etween two f oreig n currencies - - - - - - - - - - - -<br />
B . B a nk ing p o r t f o li o - 4 .19 4 .8 0 3 - 7 .3 4 1.0 6 2 - 14 . 6 7 8 - - - 11.550 .54 3 - 5 .8 78 .2 2 9<br />
B 1. F o r hed g i ng - 3 . 9 4 6 .6 6 3 - - - - - - - 3 .9 4 6 .6 6 3 - 3 .0 0 4 . 6 14<br />
1. Transactions with exchang e of principal - - - - - - - - - - - 4 .6 7 2<br />
- Purchases - - - - - - - - - - - 4 .6 7 2<br />
- Sales - - - - - - - - - - - -<br />
- B etween two f oreig n currencies - - - - - - - - - - - -<br />
2 . Transact ions without exchange o f p rincip al - 3.94 6.6 63 - - - - - - - 3 .9 4 6 .6 6 3 - 2 .9 9 9 .9 4 2<br />
- Purchases - 2 .29 8.62 7 - - - - - - - 2 .2 9 8 .6 2 7 - 2 . 3 5 8 . 10 4<br />
- Sales - 1.64 8.0 36 - - - - - - - 1.6 4 8 .0 3 6 - 6 4 1.8 3 8<br />
- B etween two f oreig n currencies - - - - - - - - - - - -<br />
B 2 . O t he r d er ivat ive s - 2 4 8 .14 0 - 7 .3 4 1.0 6 2 - 14 . 6 7 8 - - - 7 .6 0 3 .8 8 0 - 2 . 8 7 3 . 6 15<br />
1. Transactions with exchang e of principal - - - 6.2 89 .118 - 14 .6 78 - - - 6 .3 0 3 .79 6 - 2 . 4 3 0 . 6 7 1<br />
- Purchases - - - 5.8 20 .52 3 - 7.3 39 - - - 5 .8 2 7 .8 6 2 - 1. 70 6 . 17 5<br />
- Sales - - - 4 68 .59 5 - 7.3 39 - - - 4 75 .9 3 4 - 7 2 4 .4 9 6<br />
- B etween two f oreig n currencies - - - - - - - - - - - -<br />
2 . Transact ions without exchange o f p rincip al - 24 8.140 - 1.0 51.94 4 - - - - - 1.3 0 0 .0 8 4 - 4 4 2 .9 4 4<br />
- Purchases - 22 3.64 5 - 511.453 - - - - - 7 3 5 .0 9 8 - 2 2 2 .4 5 8<br />
- Sales - 2 4.49 5 - 540 .49 1 - - - - - 56 4 .9 8 6 - 2 2 0 .4 8 6<br />
- B etween two f oreig n currencies - - - - - - - - - - - -<br />
703 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.4 Over the counter financial derivatives: positive fair value – counterparty risk<br />
Debt secur it ies and int er est r at es Equit y inst r ument s and shar e indices Exchange r at es and gold Ot her values Ot her under lying<br />
Gr oss amount not<br />
Count erpar t ies/ Under lying element s<br />
set t led<br />
A . S u p e r v i so r y t r a d i n g<br />
p o r t f o l i o<br />
Gr oss amount<br />
set t led<br />
Fut ur e exposur e<br />
Gross amount not<br />
set t led<br />
Gr oss amount<br />
set t led<br />
Fut ur e exposure<br />
Gross amount not<br />
set t led<br />
Gr oss amount<br />
set t led<br />
Fut ur e exposur e<br />
Gr oss amount not<br />
set t led<br />
Gr oss amount<br />
set t led<br />
Fut ur e exposur e Set t led Fut ur e exposur e<br />
A.1 Gover nment s and cent r al banks - - - - - - 17.166 - 2.200 - - - - -<br />
A.2 Public aut hor it ies - - - - - - - - - - - - - -<br />
A.3 Banks 1.038.664 - 219.869 263 - 2.004 72.783 - 18.411 924 - 792 - -<br />
A.4 Financial companies 77.672 - 53.960 - - - 313 - 96 - - - - -<br />
A.5 Insurance companies - - - - - - - - - - - - - -<br />
A.6 Non f inancial companies - - - - - - - - - - - - - -<br />
A.7 Ot her - - - - - - - - - - - - - -<br />
T o t a l A ( 3 1. 12 . 2 0 0 8 ) ( 1. 116 . 3 3 6 ) - 2 7 3 . 8 2 9 ( 2 6 3 ) - 2 . 0 0 4 9 0 . 2 6 2 - 2 0 . 7 0 7 9 2 4 - 7 9 2 - -<br />
T o t a l ( 3 1. 12 . 2 0 0 7 ) ( 1. 2 4 5 . 0 0 5 ) - 17 4 . 13 5 ( 4 0 . 9 2 1) - 4 6 . 9 3 2 15 2 . 5 6 8 - 2 7 . 9 4 9 4 . 19 7 - 6 . 0 6 1 - -<br />
B . B a n k i n g p o r t f o l i o :<br />
B.1 Gover nment s and cent r al banks - - - - - - - - - - - - - -<br />
B.2 Public aut hor it ies - - - - - - - - - - - - - -<br />
B.3 Banks 54.024 - 7.662 3.376 - 46.824 17 - 367 - - - - -<br />
B.4 Financial companies 22.459 - 1.800 - - 244.245 - - - - - - - -<br />
B.5 Insurance companies - - - - - 306.641 - - - - - - - -<br />
B.6 Non f inancial companies - - - - - 17 - - - - - - - -<br />
B.7 Ot her - - - - - 56.332 - - - - - - - -<br />
T o t a l B ( 3 1. 12 . 2 0 0 8 ) 7 6 . 4 8 3 - 9 . 4 6 2 3 . 3 7 6 - 6 5 4 . 0 5 9 17 - 3 6 7 - - - - -<br />
T o t a l ( 3 1. 12 . 2 0 0 7 ) 12 1. 12 7 - 8 . 4 5 7 18 . 8 11 - 17 0 . 7 2 9 - - - - - - - -<br />
704 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.5 Over the counter financial derivatives: negative fair value – financial risk<br />
Debt securities and interest rates Equity instrum ents and share indices Exchange rates and go ld Other values Other underlying<br />
Co unterparties/Underlying elem ents<br />
A . S upe rv is o ry t ra ding<br />
po rt f o lio<br />
A .1 Go vernm ents and central banks - - - - - - - - - - - - - -<br />
A .2 P ublic autho rities - - - - - - - - - - - - - -<br />
A .3 B anks 1.053.197 - 231.733 237 - 68 65.533 - 11.862 924 - 264 - -<br />
A .4 Financial co m panies 57.779 - 64.935 75 - 3.519 26.191 - 9.789 - - - - -<br />
A .5 Insurance co m panies - - - - - - - - - - - - - -<br />
A .6 No n financial co m panies - - - - - - - - - - - - - -<br />
A .7 Other - - - - - - - - - - - - - -<br />
B . B a nk ing po rt f o lio<br />
T o t a le ( 3 1.12 .2 0 0 8 ) 1.110 .9 7 6 - 2 9 6 .6 6 8 3 12 - 3 .5 8 7 9 1.7 2 4 - 2 1.6 5 1 9 2 4 - 2 6 4 - -<br />
T o t a l ( 3 1.12 .2 0 0 7 ) 4 5 7 .4 8 5 - 16 3 .2 0 4 3 0 .8 14 - 5 5 .6 2 8 5 3 .9 19 - 2 4 .16 3 1.3 9 9 - 6 .0 6 1 - -<br />
B .1 Go vernm ents and central banks - - - - - - - - - - - - - -<br />
B .2 P ublic autho rities - - - - - - - - - - - - - -<br />
B .3 B anks 73.407 - 13.837 2.121 - 10.039 17 - 367 - - - - -<br />
B .4 Financial co m panies 1.413 - 275 - - - - - - - - - - -<br />
B .5 Insurance co m panies - - - - - - - - - - - - - -<br />
B .6 No n financial co m panies - - - - - - - - - - - - - -<br />
B .7 Other 3.695 - 367 1.241 - 11.075 - - - - - - - -<br />
T o t a le ( 3 1.12 .2 0 0 8 ) 7 8 .5 15 - 14 .4 7 9 3 .3 6 2 - 2 1.114 17 - 3 6 7 - - - - -<br />
T o t a l ( 3 1.12 .2 0 0 7 ) 5 7 .3 6 9 - 8 .16 3 5 2 .15 3 - 2 0 .6 9 9 - - - - - - - -<br />
705 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
A.6 Residual maturity of over the counter financial derivatives: notional values<br />
Underlying assets/Residual maturity Up to 1 year From 1 to 5 years M ore than 5 years Total<br />
A. Superviso ry trading po rtfo lio 42.691.428 52.595.053 12.685.424 107.971.905<br />
A.1 Financial derivatives on debt securities and interest rates 39.049.198 52.452.195 12.685.424 104.186.817<br />
A.2 Financial derivatives on equity instruments and share indices 61.102 24.055 - 85.157<br />
A.3 Financial derivatives on exchange rates and gold 3.570.563 118.803 - 3.689.366<br />
A.4 Financial derivatives on other values 10.565 - - 10.565<br />
B. B anking po rtfo lio 884.114 5.521.100 5.245.329 11.650.543<br />
B.1 Financial derivatives on debt securities and interest rates 489.358 3.276.460 528.985 4.294.803<br />
B.2 Financial derivatives on equities and share indices 394.756 2.229.962 4.716.344 7.341.062<br />
B.3 Financial derivatives on exchange rates and gold - 14.678 - 14.678<br />
B.4 Financial Derivatives on other values - - - -<br />
31.12.2008 43.575.542 58.116.153 17.930.753 119.622.448<br />
31.12.2007 28.001.106 46.701.367 6.293.369 80.995.842<br />
706 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
B. Credit derivatives<br />
B.1 Credit derivatives: end of period and average notional values<br />
Catego ries o f transactio ns Superviso ry trading po rtfo lio Other transactio ns<br />
o n a single item<br />
o n a basket o f<br />
items<br />
o n a single item<br />
o n a basket o f<br />
items<br />
1. P ro t e c t io n purc ha s e s 4 15 .0 0 0 - - -<br />
1.1 With exchange o f principal - - - -<br />
- Tro r - - - -<br />
- CDS - - - -<br />
- o ther - - - -<br />
1.2 Witho ut exchange o f principal 415.000 - - -<br />
- Tro r - - - -<br />
- CDS 415.000 - - -<br />
- o ther - - - -<br />
3 1.12 .2 0 0 8 4 15 .0 0 0 - - -<br />
3 1.12 .2 0 0 7 7 6 6 .7 13 - - -<br />
A v e ra ge a m o unt s - - - -<br />
2 . P ro t e c t io n s a le s 6 5 .0 0 0 - - -<br />
2.1 With exchange o f principal 65.000 - - -<br />
- Tro r - - - -<br />
- CDS 65.000 - - -<br />
- o ther - - - -<br />
2.2 Witho ut exchange o f principal - - - -<br />
- Tro r - - - -<br />
- CDS - - - -<br />
- o ther - - - -<br />
3 1.12 .2 0 0 8 6 5 .0 0 0 - - -<br />
3 1.12 .2 0 0 7 - - - -<br />
A v e ra ge a m o unt s 3 3 .9 6 2 - - -<br />
707 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
B.2 Credit derivatives: positive fair value counterparty risk<br />
Type o f transactio n/A mo unts<br />
No tio nal amo unt<br />
P o sitive fair<br />
value<br />
Future expo sure<br />
A . S UP E R V IS O R Y T R A D IN G P O R T F O LIO<br />
A .1. P urc ha s e s o f pro t e c t io n wit h c o unt e rpa rt ie s :<br />
1. Go vernments and Central B anks - - -<br />
2. Other public bo dies - - -<br />
3. B anks - - -<br />
4. Financial co mpanies 415.000 4.487 6.225<br />
5. Insurance co m panies - - -<br />
6. No n financial co m panies - - -<br />
7. Other - - -<br />
A .2 . S a le s o f pro t e c t io n wit h c o unt e rpa rt ie s :<br />
1. Go vernments and Central B anks - - -<br />
2. Other public bo dies - - -<br />
3. B anks - - -<br />
4. Financial co mpanies - - -<br />
5. Insurance co m panies - - -<br />
6. No n financial co m panies - - -<br />
7. Other - - -<br />
B . B A N KIN G P O R T F O LIO<br />
B .1 P urc ha s e s o f pro t e c t io n wit h c o unt e rpa rt ie s :<br />
1. Go vernments and Central B anks - - -<br />
2. Other public bo dies - - -<br />
3. B anks - - -<br />
4. Financial co mpanies - - -<br />
5. Insurance co m panies - - -<br />
6. No n financial co m panies - - -<br />
7. Other - - -<br />
B .2 . S a le s o f pro t e c t io n wit h c o unt e rpa rt ie s :<br />
1. Go vernments and Central B anks - - -<br />
2. Other public bo dies - - -<br />
3. B anks - - -<br />
4. Financial co mpanies - - -<br />
5. Insurance co m panies - - -<br />
6. No n financial co m panies - - -<br />
7. Other - - -<br />
3 1.12 .2 0 0 8 4 15 .0 0 0 4 .4 8 7 6 .2 2 5<br />
3 1.12 .2 0 0 7 4 15 .0 0 0 4 .8 5 5 6 .2 2 5<br />
708 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
B.3 Credit Derivatives: negative fair value financial risk<br />
Type o f transactio n/A m o unts N o tio nal am o unt N egative fair value<br />
S U P E R V IS O R Y T R A D IN G P O R T F O L IO<br />
1. P urc ha s e s o f pro t e c t io n wit h c o un t e rpa rt ie s :<br />
1.1 Go vernm ents and C entral B anks - -<br />
1.2 Other public autho rities - -<br />
1.3 B anks - -<br />
1.4 Financial co m panies - -<br />
1.5 Insurance co m panies - -<br />
1.6 N o n financial co m panies - -<br />
1.7 Other - -<br />
3 1.12 .2 0 0 8 - -<br />
3 1.12 .2 0 0 7 3 5 1.7 13 4 7<br />
B.4 Residual maturity of credit derivative contracts: notional values<br />
Underlying assets/Residual maturity Up to 1 year Fro m 1 to 5 years M o re than 5 years T o t a l<br />
A . S upe rv is o ry t ra ding po rt f o lio - 6 5 .0 0 0 4 15 .0 0 0 3 5 0 .0 0 0<br />
A .1 Credit derivatives with "qualified" "reference o bligatio n" - 65.000 415.000 3 5 0 .0 0 0<br />
A .2 Credit derivatives with "unqualified" "reference o bligatio n" - - - -<br />
B . B a nk ing po rt f o lio - - - -<br />
B .1 Credit derivatives with "qualified" "reference o bligatio n" - - - -<br />
B .2 Credit derivatives with "unqualified" "reference o bligatio n" - - - -<br />
3 1.12 .2 0 0 8 - 6 5 .0 0 0 4 15 .0 0 0 3 5 0 .0 0 0<br />
3 1.12 .2 0 0 7 - 3 5 1.7 13 4 15 .0 0 0 7 6 6 .7 13<br />
709 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
SECTION 3 – Liquidity risk<br />
Qualitative information<br />
General aspects, processes for the management and methods for the measurement of<br />
liquidity risk<br />
Liquidity management for the network banks of Group is centralised at the Finance Area of<br />
the Parent Bank. Some of the product companies (including Centrobanca and IW Bank) and<br />
the foreign companies, whose internal policies do not require an exclusive relationship with<br />
the Parent Bank, constitute an exception to this.<br />
Monitoring and control of liquidity risk are performed by the Financial Risks Service, primarily<br />
by verifying the level of the Bank’s liquidity requirement. This is calculated from the maturity<br />
gaps between risk-sensitive assets and liabilities (excluding items that can be readily<br />
liquidated, which constitute available liquidity).<br />
A detailed description of the processes employed to manage liquidity risk and the methods<br />
used to measure it is given in the relative section of the consolidated financial statements<br />
which may be consulted.<br />
Quantitative information<br />
1.1 Distribution over time of the residual contractual life of financial assets and<br />
liabilities – Denominated in EUR<br />
Items/maturities On demand 1 to 7 days 7 to 15 days<br />
15 days to 1<br />
month<br />
1 month to 3<br />
months<br />
3 months to 6<br />
months<br />
6 months to 1<br />
year<br />
1 year to 5 years<br />
More than 5<br />
years<br />
On-balance sheet assets<br />
A.1 Government securities - - - - 196.537 370.289 53.775 1.843.770 787.924<br />
A.2 Listed debt securities 30 - - - - - 11.969 491.298 613.045<br />
A.3 Other debt securities 916 - - 19.899 52.218 188.763 305.654 3.678.592 9.797.549<br />
A.4 Units in OICR 381.930 - - - - - - - -<br />
A.5 Financing 9.290.797 966.584 1.012.152 3.719.433 4.251.191 958.375 188.938 1.563.272 3.268.266<br />
- Banks 3.891.930 954.532 1.012.152 3.719.433 4.227.696 909.801 137.306 4.937 34.809<br />
- Customers 5.398.867 12.052 - - 23.495 48.574 51.632 1.558.335 3.233.457<br />
On-balance sheet liabilities<br />
B.1 Deposits 6.061.892 1.878.878 2.530.135 2.392.890 3.492.842 2.559.424 897.313 164.028 1.359.264<br />
- Banks 4.253.772 1.878.878 2.530.135 2.392.890 3.492.842 2.559.424 897.313 164.028 911.052<br />
- Customers 1.808.120 - - - - - - - 448.212<br />
B.2 Debt securities 754.835 - - 1.018.833 382.527 1.323.190 1.398.602 6.498.554 2.751.643<br />
B.3 Other liabilities 73.447 2.867.237 1.666.137 1.487.335 4.578.428 1.084.908 22.255 303.987 430.170<br />
Off-balance sheet transactions<br />
C.1 Financial derivatives with exchange of principal<br />
- Long positions - 262.034 247.006 1.023.506 392.409 38.653 83.822 51.642 -<br />
- Short positions - 1.518 208.063 876.173 283.624 45.581 75.661 67.161 -<br />
C.2 Deposits and loans receivable<br />
- Long positions 5.945 - - - - - - - -<br />
- Short positions - - - - - 5.945 - - -<br />
C.3 Irrevocable commitments to disburse funds<br />
- Long positions - - - - - - - 65.000 -<br />
- Short positions 26.315 294.128 - - - - - 65.000 -<br />
710 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1.2 Distribution over time of the residual contractual life of financial assets and<br />
liabilities – Denominated in USD<br />
Items/maturities On demand 1 to 7 days 7 to 15 days<br />
15 days to 1<br />
month<br />
1 month to 3<br />
months<br />
3 months to 6<br />
months<br />
6 months to 1<br />
year<br />
1 year to 5 years<br />
M ore than 5<br />
years<br />
On- b alance sheet asset s<br />
A.1 Government securities - - - - - 1 - - -<br />
A.2 Listed debt securities - - - - - - - - -<br />
A.3 Other debt securities - - - - - - 2 4 .8 72 -<br />
A.4 Units in OICR 2 0 9 .0 3 3 - - - - - - - -<br />
A.5 Financing 9 4 .2 8 9 11.0 79 1.0 14 13 3 .0 4 0 111.0 9 6 3 .711 - - -<br />
- Banks 93.650 11.079 1.014 133.040 111.096 3.711 - - -<br />
- Customers 639 - - - - - - - -<br />
On- b alance sheet liabilit ies<br />
B.1 Deposits 3 3 2 .3 0 8 11.6 73 1.4 4 0 4 2 .54 6 2 3 .59 0 1.0 10 4 72 - -<br />
- Banks 298.282 11.673 1.440 42.546 23.590 1.010 472 - -<br />
- Customers 34.026 - - - - - - - -<br />
B.2 Debt securities - - - - - - - - -<br />
B.3 Other liabilities - - - - - - - - -<br />
Of f - b alance sheet t ransact io ns<br />
C.1 Financial derivatives with exchange of principal<br />
- Long positions - 1.545 98.092 503.686 93.220 38.807 72.681 58.684 -<br />
- Short positions - 146.322 125.434 510.666 115.812 36.753 80.716 51.337 -<br />
C.2 Deposits and loans receivable<br />
- Long positions - - - - - - - - -<br />
- Short positions - - - - - - - - -<br />
C.3 Irrevocable commitments to disburse funds<br />
- Long positions - - - - - - - - -<br />
- Short positions - - - - - - - - -<br />
711 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1.3. Distribution over time of the residual contractual life of financial assets and<br />
liabilities – Denominated in CHF<br />
Items/maturities On demand 1 to 7 days 7 to 15 days<br />
15 days to 1<br />
month<br />
1 month to 3<br />
months<br />
3 months to 6<br />
months<br />
6 months to 1<br />
year<br />
1 year to 5 years<br />
M ore than 5<br />
years<br />
On- balance sheet asset s<br />
A.1 Government securities - - - - - - - - -<br />
A.2 Listed debt securities - - - - - - - - -<br />
A.3 Other debt securities - - - - - - - - -<br />
A.4 Units in OICR - - - - - - - - -<br />
A.5 Financing 8 .76 0 17.19 7 1.574 2 0 6 .50 3 172 .4 4 2 5.76 0 - - -<br />
- Banks 8.663 17.197 1.574 206.503 172.442 5.760 - - -<br />
- Customers 97 - - - - - - - -<br />
On- balance sheet liab ilit ies<br />
B.1 Deposits 8 .8 8 0 13 .3 2 6 1.4 58 4 3 .0 9 8 2 3 .8 9 6 - - - -<br />
- Banks 8.383 13.326 1.458 43.098 23.896 - - - -<br />
- Customers 497 - - - - - - - -<br />
B.2 Debt securities - - - - - - - - -<br />
B.3 Other liabilities - - - - - - - - -<br />
Of f - b alance sheet t ransact io ns<br />
C.1 Financial derivatives with exchange of principal<br />
- Long positions - - 3.535 1.855 12.342 - - 1.549 -<br />
- Short positions - 115.208 6.276 127.775 98.846 - 332 - -<br />
C.2 Deposits and loans receivable<br />
- Long positions - - - - - - - - -<br />
- Short positions - - - - - - - - -<br />
C.3 Irrevocable commitments to disburse funds<br />
- Long positions - - - - - - - - -<br />
- Short positions - - - - - - - - -<br />
712 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1.4. Distribution over time of the residual contractual life of financial assets and<br />
liabilities – Denominated in JPY<br />
Items/maturities On demand 1 to 7 days 7 to 15 days<br />
15 days to 1<br />
month<br />
1 month to 3<br />
months<br />
3 months to 6<br />
months<br />
6 months to 1<br />
year<br />
1 year to 5 years<br />
M ore than 5<br />
years<br />
On- b alance sheet asset s<br />
A.1 Government securities - - - - - - - - -<br />
A.2 Listed debt securities - - - - - - - - -<br />
A.3 Other debt securities - - - - - - - - -<br />
A.4 Units in OICR - - - - - - - - -<br />
A.5 Financing 6 .9 3 7 2 .2 3 2 2 0 4 2 6 .8 0 5 2 2 .3 8 4 74 8 - - -<br />
- Banks 6.937 2.232 204 26.805 22.384 748 - - -<br />
- Customers - - - - - - - - -<br />
On- b alance sheet liab ilit ies<br />
B.1 Deposits 4 3 .2 8 8 518 57 1.6 74 9 2 8 - - - -<br />
- Banks 26.367 518 57 1.674 928 - - - -<br />
- Customers 16.921 - - - - - - - -<br />
B.2 Debt securities - - - - - - - - -<br />
B.3 Other liabilities - - - - - - - - -<br />
Of f - b alance sheet t ransact io ns<br />
C.1 Financial derivatives with exchange of principal<br />
- Long positions - - 45.235 221.352 141.215 1.110 650 - -<br />
- Short positions - - 65.819 220.894 134.272 207 - - -<br />
C.2 Deposits and loans receivable<br />
- Long positions - - - - - - - - -<br />
- Short positions - - - - - - - - -<br />
C.3 Irrevocable commitments to disburse funds<br />
- Long positions - - - - - - - - -<br />
- Short positions 4.756 - - - - - - - -<br />
713 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1.5. Distribution over time of the residual contractual life of financial assets and<br />
liabilities – Denominated in GBP<br />
Items/maturities On demand 1 to 7 days 7 to 15 days<br />
15 days to 1<br />
month<br />
1 month to 3<br />
months<br />
3 months to 6<br />
months<br />
6 months to 1<br />
year<br />
1 year to 5 years<br />
M ore than 5<br />
years<br />
On- balance sheet asset s<br />
A.1 Government securities - - - - - - - - -<br />
A.2 Listed debt securities - - - - - - - - -<br />
A.3 Other debt securities - - - - - - - - -<br />
A.4 Units in OICR - - - - - - - - -<br />
A.5 Financing 9 .3 4 2 2 .9 56 2 71 3 5.4 9 7 2 9 .6 4 2 9 9 0 - - -<br />
- Banks 8.208 2.956 271 35.497 29.642 990 - - -<br />
- Customers 1.134 - - - - - - - -<br />
On- balance sheet liab ilit ies<br />
B.1 Deposits 2 0 .4 2 9 13 .2 6 2 1.4 51 4 2 .8 8 9 2 3 .779 - - - -<br />
- Banks 17.448 13.262 1.451 42.889 23.779 - - - -<br />
- Customers 2.981 - - - - - - - -<br />
B.2 Debt securities - - - - - - - - -<br />
B.3 Other liabilities - - - - - - - - -<br />
Of f - b alance sheet t ransact io ns<br />
C.1 Financial derivatives with exchange of principal<br />
- Long positions - - 45.670 136.613 25.095 966 701 1.963 -<br />
- Short positions - - 42.184 132.047 23.137 934 1.081 - -<br />
C.2 Deposits and loans receivable<br />
- Long positions - - - - - - - - -<br />
- Short positions - - - - - - - - -<br />
C.3 Irrevocable commitments to disburse funds<br />
- Long positions - - - - - - - - -<br />
- Short positions - - - - - - - - -<br />
714 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1.6. Distribution over time of the residual contractual life of financial assets and<br />
liabilities – Other currencies<br />
Items/maturities On demand 1 to 7 days 7 to 15 days<br />
15 days to 1<br />
month<br />
1 month to 3<br />
months<br />
3 months to 6<br />
months<br />
6 months to 1<br />
year<br />
1 year to 5 years<br />
M ore than 5<br />
years<br />
On- b alance sheet asset s<br />
A.1 Government securities - - - - - - - - -<br />
A.2 Listed debt securities - - - - - - - - -<br />
A.3 Other debt securities - - - 3 .8 53 - - - - -<br />
A.4 Units in OICR - - - - - - - - -<br />
A.5 Financing 8 .56 3 1.8 6 6 171 2 2 .4 0 4 18 .70 9 6 2 2 - - -<br />
- Banks 8.490 1.866 171 22.404 18.709 622 - - -<br />
- Customers 73 - - - - - - - -<br />
On- b alance sheet liab ilit ies<br />
B.1 Deposits 17.19 6 4 .3 4 7 4 76 14 .0 58 7.79 5 - - - -<br />
- Banks 15.117 4.347 476 14.058 7.795 - - - -<br />
- Customers 2.079 - - - - - - - -<br />
B.2 Debt securities - - - - - - - - -<br />
B.3 Other liabilities - - - - - - - - -<br />
Of f - b alance sheet t ransact io ns<br />
C.1 Financial derivatives with exchange of principal<br />
- Long positions - - 11.899 - 43.234 - 44 3.896 -<br />
- Short positions - - 10.319 18.758 38.668 987 2.160 - -<br />
C.2 Deposits and loans receivable<br />
- Long positions 20.614 - - - - - - - -<br />
- Short positions - 20.614 - - - - - - -<br />
C.3 Irrevocable commitments to disburse funds<br />
- Long positions - - - - - - - - -<br />
- Short positions 16.444 - - - - - - - -<br />
715 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2. Distribution of financial liabilities by business sector<br />
Expo sures/Co unterparties<br />
Go vernm ent<br />
s and C entral<br />
B anks<br />
Other public<br />
autho rities<br />
Financial<br />
co mpanies<br />
Insurance<br />
co mpanies<br />
No n financial<br />
co m panies<br />
Other<br />
1. Due to custo mers - 2.720 1.933.328 5.564 402.809 3.469.474<br />
2. Securities issued - - 165.930 - - 13.962.254<br />
3. Financial liabilities held fo r trading 5.108 - 89.684 - - 1.127.394<br />
4. Financial liabilities at fair value - - - - - -<br />
3 1.12 .2 0 0 8 5 .10 8 2 .7 2 0 2 .18 8 .9 4 2 5 .5 6 4 4 0 2 .8 0 9 18 .5 5 9 .12 2<br />
3 1.12 .2 0 0 7 - 3 6 7 2 .8 4 4 .18 8 6 .4 5 4 6 .7 3 4 15 .5 14 .3 17<br />
3. Geographical distribution of financial liabilities<br />
Expo sures/Co unterparties<br />
Italy<br />
Other<br />
Euro pean<br />
co untries<br />
A m erica<br />
A sia<br />
Rest o f the<br />
wo rld<br />
1. Due to custo m ers 5.3 6 5.6 74 4 4 8 .2 2 1 - - -<br />
2. Due to banks 2 4 .6 9 5.115 4 .03 3 .9 78 2 .2 2 6 4 6 6 73 0<br />
3. Securities issued 14 .12 8 .18 4 - - - -<br />
4. Financial liabilities held fo r trading 679 .177 519 .9 59 2 3.050 - -<br />
5. Financial liabilities at fair value - - - - -<br />
3 1.12 .2 0 0 8 4 4 . 8 6 8 .15 0 5 .0 0 2 . 15 8 2 5 . 2 7 6 4 6 6 7 3 0<br />
3 1.12 .2 0 0 7 3 3 .757.50 5 4 . 4 7 9 .9 2 5 4 7 7 . 5 12 15 6 . 9 9 5 5. 7 0 0<br />
716 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
SECTION 4 – Operational risk<br />
Qualitative information<br />
A. General aspects, procedures for the management and methods for the measurement of<br />
operational risk<br />
Operational risk is defined as the risk of loss resulting from inadequate or failed procedures,<br />
human resources and internal systems or from exogenous events. This type of risk includes<br />
loss resulting from fraud, human error, business disruption, system failure, non performance<br />
of contracts and natural disasters.<br />
This definition includes the legal risk of losses resulting from violations of laws and<br />
regulations, and from contractual or non contractual responsibilities or from other litigation,<br />
but it does not include reputational and strategic risk.<br />
<strong>UBI</strong> <strong>Banca</strong> Group places a particular focus in the formulation of operational risk management<br />
policies on maintaining an appropriate risk profile that is consistent with the propensity to risk<br />
defined by senior management. It is Group policy to identify, measure and monitor operational<br />
risks within an overall process of operational risk management with the following objectives:<br />
– to identify the causes of prejudicial events at the origin of operational losses and<br />
consequently to increase corporate profitability and improve operational efficiency, by<br />
identifying critical areas and monitoring and optimising the system of controls;<br />
– to optimise policies to mitigate and transfer risk, such as for example, the use of<br />
insurance, on the basis of the magnitude and effective exposure to risk;<br />
– to optimise the allocation and absorption of capital for operational risk and<br />
provision policies in a perspective of creating value for shareholders;<br />
– to support decision-making processes concerning the start up of new business,<br />
activities, products and systems;<br />
– to develop an operational risk culture at business unit level increasing<br />
awareness throughout all the organisational structure;<br />
– to respond to the regulatory requirements of the New Basel Accord on Capital for<br />
banks and banking groups.<br />
The organisational model developed for operational risk management assigns duties and<br />
responsibilities both locally and centrally to the legal entities involved at Group level. An<br />
Operational Risk Committee has been formed at the Parent Bank with policy-making and<br />
supervision duties for the overall process of operational risk management, while a specific<br />
service (“Operational Risks Service”) is also in operation within the Risk Management Area<br />
dedicated to the planning, development and maintenance of methods for detecting, measuring<br />
and monitoring operational risk and for verifying the effectiveness of measures to mitigate it<br />
and of the connected reporting systems. The Operational Risks Service receives support from<br />
the Methods and Systems Service that operates within the Risk Management Area for the<br />
design and development of the AMA methods and system structure and for maintenance of the<br />
IT environment. Within the Risk Capital & Policies Area, there is also a Financial Service and<br />
Operational Risk Policies Service, responsible, in co-operation with the other organisational<br />
units concerned, for defining policy for the management, monitoring and mitigation of<br />
operational risk, including policies for insurance risk management and for the Models and<br />
Processes Validation Service responsible for the validation process.<br />
The organisational model is structured with four levels of responsibility for the individual legal<br />
entities of the Group:<br />
– Operational Risk Officer (ORO): these are responsible within their legal entities<br />
for implementing the overall framework for the management of operational risks;<br />
717 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
– Local Operational Risk Support Officer (LORSO): the main role acting in<br />
support of the Operational Risk Officer in the general management of operational risks in the<br />
legal entities to which they belong.<br />
– Risk Champion (RC): operationally responsible for supervising operational risk<br />
management for the purposes of overall validation in their business areas, co-ordinating and<br />
supporting the relative risk owners. They support the risk monitoring process and participate<br />
in the definition and implementation of mitigation strategies;<br />
– Risk Owners (RO): their task is to recognise and report actual and/or potential<br />
operational loss events which occur or are detected in the course of everyday operations. They<br />
participate in the implementation of corrective or improvement action decided at higher levels<br />
designed to reduce exposure to risk.<br />
Management, measurement and control systems<br />
The operational risk management system of the Group is composed of the following:<br />
– a decentralised process for collecting data on operational losses (loss data collection)<br />
designed for integrated and systematic detection of damaging events that occur which result in<br />
an actual loss;<br />
– a structured process for mapping and assessing risk scenarios (risk assessment) intrinsic<br />
to the business areas of the Group, where the intention is to furnish critical operational self<br />
diagnosis of potential exposure to the risk of future losses, of the adequacy of controls and of<br />
the mitigation measures in place;<br />
– a database of operational losses incurred by the sector nationally since 2003. The Group<br />
has participated in the DIPO (Italian database of operational losses) project launched by the<br />
ABI (Italian Banking Association) to exchange loss data in the sector since it commenced;<br />
– a system for measuring economic and supervisory capital to calculate the absorption of<br />
supervisory capital by operational risk for each business unit using a standardised and AMA<br />
approach. The measurement of operational risk using the AMA system, currently subject to<br />
authorisation, is of the “loss distribution approach” type and it was developed centrally by the<br />
Risk Management Area of the Parent Bank.<br />
Reporting<br />
A reporting system has been implemented to support the monitoring of operational risks which<br />
furnishes the information needed for proper management, measurement and mitigation of the<br />
levels of risk assumed by the Group.<br />
That system is structured with the same levels of responsibility employed by the organisational<br />
model to support the multiple information requirements intrinsic to the federal model of Group<br />
organisation. The objective is to guarantee standardised information and allow periodic<br />
verification of the operational risks assumed as input for the definition of management<br />
strategies and objectives that are consistent with standard levels of acceptable risk.<br />
Reporting to corporate bodies, the senior management of the Parent Bank and of the network<br />
banks and to the Operational Risks Committee is periodically performed centrally by the<br />
Operational Risks Service. It includes an analysis at differing degrees of detail and with<br />
differing frequencies (monthly/quarterly) according to requirements of the following: an<br />
analysis of data on internal losses and the relative recoveries together with a comparison with<br />
external data for the sector nationally; the results of the assessment of risk exposure with the<br />
identification of areas of vulnerability; and a description of the action needed to prevent and<br />
mitigate risk and of the relative effectiveness.<br />
718 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Risk transfer mechanisms<br />
The <strong>UBI</strong> <strong>Banca</strong> Group renewed the insurance policies expiring at the end of 2008 to cover the<br />
principal transferable operational risks. It intends to use these to reduce its capital<br />
requirement by means of the AMA approach, bringing them into line with prudential<br />
supervisory regulations (Bank of Italy Circular No. 263/2006). The policies were taken out by<br />
<strong>UBI</strong> <strong>Banca</strong> Scpa in its own name and on behalf of the network banks and product companies<br />
of the Group concerned.<br />
Legal risk<br />
The Bank is party to a number of court proceedings and legal actions of varying nature arising<br />
from the ordinary performance of its business. While it is not possible to predict final outcomes<br />
with certainty, it is considered that an unfavourable conclusion of these proceedings, both<br />
taken singly or as a whole, would not have a significant effect on the financial and economic<br />
position of the Bank.<br />
Quantitative information<br />
The graphs below show that the main sources of operational risk in the period January 2004-<br />
December 2008 were “external context” (78% of impacts and 26% of frequencies) and<br />
“processes” (20% of impacts and 69% of frequencies).<br />
The “external context” risk drivers included human deeds performed by third parties and not<br />
directly under the control of the Bank, such as for example thefts and robberies, paper fraud,<br />
damage caused by natural events (earthquakes, floods, etc.) and other external events. The<br />
“process” risk drivers included unintentional errors and incorrect application of regulations.<br />
Percentage of operational losses by risk driver (detection January 2004 - December 2008)<br />
3%<br />
Profit impact<br />
26%<br />
20%<br />
0%<br />
2%<br />
1%<br />
69%<br />
78%<br />
Externa causes (external context)<br />
Processes<br />
Persons (human factor)<br />
Systems<br />
The changes that occurred in the impacts gross of insurance and other external recoveries<br />
showed a constant trend with two exceptions in 2007 and 2008. Events of an exceptional<br />
nature were detected over the last two years. A dispute arose in 2007 concerning transactions<br />
in derivative instruments which generated a loss accounting for 60% of the total impacts<br />
detected in 2007. The year 2008, on the other hand saw the detection of an “external fraud" as<br />
a consequence of the Madoff affair which had an impact on the income statement of 54,2<br />
million euro (92% of total impacts detected in 2008).<br />
719 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Distribution of operational losses by year of detection (January 2004 - December 2008)<br />
90%<br />
80%<br />
70%<br />
60%<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
2004 2005 2006 2007 2008<br />
Event frequency<br />
Profit impact<br />
List of the five largest losses from January 2004 to December 2008<br />
Business Line Basilea Event Type Impact recovery<br />
Trading & Sales External fraud 54.200.000 -<br />
Trading & Sales Customers, products and professional practices 3.872.500 -<br />
Agency Services Executon, delivery and processes management 3.398.138 -<br />
Agency Services Executon, delivery and processes management 555.622 394.124<br />
Commercial Banking Damage from External events 489.118 466.258<br />
Almost all the operationally losses (gross of insurance recoveries and other external recoveries)<br />
detected in the period 2004–2008 were concentrated in the event types “external fraud” (87%)<br />
and “execution, delivery and process management” (9%).<br />
The data for the banking sector nationally (DIPO-ABI Association) for the same period show<br />
operational losses concentrated in the event classes “customers, products and professional<br />
practices” accounting for 39%, “external fraud” (21%) and “execution, delivery and process<br />
management” (16%).<br />
720 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Percentage frequency of operational losses by type of event (detection January 2004 - December 2008)<br />
Execution, delivery and process management<br />
Business interruption and system malfunctions<br />
Damage from external events<br />
Customers, products and professional practices<br />
Employment and safety at work<br />
External fraud<br />
Internal fraud<br />
0% 10% 20% 30% 40% 50% 60%<br />
External data (Dipo)<br />
Internal data (LDC)<br />
Percentage profit impact of operational losses by type of event (detection January 2004 - December 2008)<br />
Execution, delivery and process management<br />
Business interruption and system malfunctions<br />
Damage from external events<br />
Customers, products and professional practices<br />
Employment and safety at work<br />
External fraud<br />
Internal fraud<br />
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%<br />
External data (Dipo)<br />
Internal data (LDC)<br />
721 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part F – Information on shareholders’ equity<br />
SECTION 1 – Shareholders’ Equity<br />
A. Qualitative information<br />
Shareholders’ equity is defined by international accounting standards in a residual manner as<br />
“what remains of an entity’s assets after all the liabilities have been deducted”. From a<br />
financial point of view equity is the means measured in monetary form contributed by the<br />
owners or generated by the entity.<br />
Operational levers are developed on a broader aggregate, consistent with the supervisory<br />
aggregate, which are characterised not just by equity in the strict sense but also by<br />
intermediate aggregates such as innovative instruments, hybrid instruments and subordinated<br />
liabilities.<br />
As the Parent Bank, <strong>UBI</strong> <strong>Banca</strong> performs supervision and co-ordination activities for the<br />
companies in the Group and, without prejudice to their business and company by-law<br />
independence, lays down appropriate policies for them.<br />
The Parent Bank analyses and co-ordinates capital requirements on the basis of the Group<br />
development plan, the related risk profiles and, very importantly, in compliance with<br />
supervisory constraints and acts as a privileged counterparty in gaining access to capital<br />
markets applying an integrated approach to optimising capital strength.<br />
722 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
B. Quantitative information<br />
The summary table below gives the origin, the availability for use and distribution of the items<br />
of shareholders’ equity (figures given to one hundredth of a euro) in compliance with Art. 2427,<br />
paragraph 1, No. 7 bis of the Italian Civil Code.<br />
Errore. Il collegamento non è valido.<br />
A = for increase in the share capital<br />
B = to cover losses<br />
C = for distribution to shareholders<br />
(1) Amounts under suspended tax regime<br />
(2) Following the merger with <strong>Banca</strong> Lombarda Piemontese, the issue premium reserve increased by 5.790.132.233,70 euro.<br />
In consideration of the uncertainties over whether the reserve that arose following the merger transaction recognised in the accounts in accordance with IFRS<br />
3 was available for distribution to shareholders, it was felt advisable to consider only that part which existed previously amounting to 1.310.245.825,91 euro<br />
as distributable to shareholders until the government furnished clarifications.<br />
(3) Distribution to shareholders is permitted in observance of paragraphs 2 and 3 of Art. 2445 of the Italian Civil Code. If it is used to cover losses, no<br />
distribution can be made until the reserve has been replenished.<br />
(4) Only that part of the reserve which exceeds one fifth of the share capital is available, even for distribution (Art. 2430, paragraph 1, Italian Civil Code).<br />
(5) The “Value realignment reserve” under Law No. 266/2005 with taxation suspended amounting to a total of 90.607.559,00 euro consisted of 27.453.137,73<br />
euro recognised in the “Valuation reserve – adoption of fair value to replace cost”, 61.649.339,66 euro in the “Reserve for reversal of prior year amortisation<br />
and depreciation” and 1.505.081,61 euro in the "Reserve under Art. 7, Par. 2, Law No. 218/90".<br />
SECTION 2 – Capital and Supervisory Ratios<br />
2.1 Supervisory capital<br />
A. Qualitative information<br />
The tables below summarise the main contractual characteristics of the debt instruments that<br />
constitute the tier one capital, the supplementary capital and the tier three capital.<br />
723 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
1. Tier 1 capital<br />
Subordinated<br />
deposits<br />
Type of issue<br />
Deposit Bpb Funding Llc<br />
2001/perpetual mixed rate<br />
Currency euro<br />
Deposit Bpci Funding Llc<br />
2001/perpetual mixed rate<br />
Currency euro<br />
Deposit <strong>Banca</strong> Lombarda<br />
Preferred Capital Company Llc<br />
2000/perpetual mixed rate<br />
Currency euro<br />
Coupon M aturity date Early redemption<br />
clause<br />
Until 2011 fixed rate of 8,364% and<br />
subsequently variable rate<br />
Euribor 3 months + 4,60%<br />
Fixed rate 8,9% until year 10<br />
Euribor 3 months + 5,3% from<br />
year 11<br />
Until 2010 fixed rate of 8,17%<br />
swapped with Euribor 6 months +<br />
2,42% and subsequently variable<br />
rate Euribor 3 months+ 3,375%<br />
Nominal<br />
Amount<br />
IAS Amount<br />
31.12.2008<br />
perpetual Call 15.02.2011 300.000 324.776<br />
perpetual Call 27.06.2011 115.001 123.436<br />
perpetual 155.000 165.930<br />
724 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2. 2. Supplementary capital<br />
Type of issue<br />
2004/2014 - flo ating rate<br />
ISIN IT0003723357<br />
Currency euro<br />
2004/2014 - flo ating rate<br />
ISIN IT0003754949<br />
Currency euro<br />
2008/2015 - flo ating rate<br />
ISIN IT0004424435<br />
Currency euro<br />
Coupon M aturity date Early redemption<br />
clause<br />
Half year<br />
Euribor 6M +0,125%<br />
fo r years 1-5<br />
Euribor 6M +0,725%<br />
fo r years 6-10<br />
Half year<br />
Euribor 6M +0,125%<br />
fo r years 1-5<br />
Euribor 6M +0,725%<br />
fo r years 6-10<br />
Quarterly<br />
Euribor 3M +0,85%<br />
Nominal Amount<br />
IAS Amount<br />
31.12.2008<br />
22.10.2014 From 22.10.2009 139.021 133.687<br />
23.12.2014 From 23.12.2009 110.979 108.533<br />
28.11.2015 599.399 588.514<br />
Ordinary subo rdinated<br />
bo nd issues<br />
(Lower Tier II)<br />
Ordinary subo rdinated<br />
bo nd issues<br />
(Upper Tier II)<br />
Subo rdinated depo sits<br />
(Tier II)<br />
2005/2015 - flo ating rate<br />
EM TN<br />
ISIN XS0237670319<br />
Currency euro<br />
2006/2016 - flo ating rate<br />
EM TN<br />
ISIN XS0259653292<br />
Currency euro<br />
2006/2018 - flo ating rate<br />
EM TN<br />
ISIN XS0272418590<br />
Currency euro<br />
2004-2014 - flo ating rate<br />
EM TN<br />
ISIN XS0195722003<br />
Currency euro<br />
2006-2016 - flo ating rate<br />
EM TN<br />
ISIN XS0278107999<br />
Currency euro<br />
1999-2009 - flo ating rate<br />
EM TN<br />
ISIN XS0099052275<br />
Currency euro<br />
2000-2010 - fixed rate<br />
EM TN<br />
ISIN XS0108245167<br />
Currency euro<br />
BPA Deposit<br />
2003/2015<br />
Currency euro<br />
Carime deposit<br />
2002/2012<br />
Currency euro<br />
Carime deposit<br />
2003/2013<br />
Currency euro<br />
Carime deposit<br />
2003/2015<br />
Currency euro<br />
Quarterly<br />
Euribor 3M +0,40%<br />
fo r years 1-5<br />
Euribor 3M +1,00%<br />
fo r years 6-10<br />
Quarterly<br />
Euribor 3M +0,50%<br />
fo r years 1-5<br />
Euribor 3M +1,10%<br />
fo r years 6-10<br />
Quarterly<br />
Euribor 3M +0,50%<br />
fo r years 1-7<br />
Euribor 3M +1,10%<br />
fo r years 8-12<br />
Quarterly<br />
Euribor 3M +0,45%<br />
fo r years 1-5<br />
Euribor 3M +1,05%<br />
fo r years 6-10<br />
Quarterly<br />
Euribor 3M +0,40%<br />
fo r years 1-5<br />
Euribor 3M +1,00%<br />
fo r years 6-10<br />
Quarterly<br />
Euribor 3M +1,05%<br />
Annual<br />
Fixed rate 6,875%<br />
Euribor 6M +0,70%<br />
fo r years 1-7<br />
Euribor 6M +1,20%<br />
fo r years 8-12<br />
07.12.2015 Call 07.12.2010 500.000 500.760<br />
30.06.2016 Call 30.06.2011 300.000 299.332<br />
30.10.2018 Call 31.10.2013 300.000 301.946<br />
30.06.2014 Call 30.06.2009 250.000 250.187<br />
19.12.2016 Call 19.12.2011 200.000 200.062<br />
30.06.2009 100.000 100.349<br />
23.02.2010 350.000 383.993<br />
29.09.2015 From 29.09.2010 200.000 203.098<br />
Fixed rate of 6,15% 25.06.2012 164.000 169.036<br />
Euribor 6M +1,10% 20.11.2013 200.000 201.211<br />
Until 2010 fixed rate<br />
of 4,495 and<br />
subsequently<br />
floating rate Euribor<br />
6M + 1,20%<br />
29.09.2015 From 29.09.2010 700.000 720.151<br />
725 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
3. Tier three capital<br />
No debt instruments exist which constitute tier three capital.<br />
B. Quantitative information<br />
3 1.12 .2 0 0 8 3 1.12 .2 0 0 7<br />
A . T ier 1 cap it al b ef o re t he ap p licat io n o f p rud ent ial f ilt ers 10 .0 3 1.14 6 10 .3 0 2 .53 8<br />
B. Tier 1 capital prudential filters: -84.029 -6.935<br />
B.1 -IAS/IFRS prudential filters positive (+) 4.503 204<br />
B.2 -IAS/IFRS prudential filters negative (-) -88.532 -7.139<br />
C . T ier 1 cap it al b ef o re it ems t o b e d ed uct ed ( A + B ) 9 .9 4 7.117 10 .2 9 5.6 0 3<br />
D. Items to be deducted from tier 1 capital 193.322 99.426<br />
E. T o t al t ier 1 cap it al ( C - D ) 9 .753 .79 5 10 .19 6 .177<br />
F . Sup p lement ary cap it al b ef o re t he ap p licat io n o f p rud ent ial f ilt ers 4 .13 1.9 8 2 3 .6 0 2 .112<br />
G. Supplementary capital prudential filters: - -9.907<br />
G.1 -IAS/IFRS prudential filters positive (+) - -<br />
G.2 -IAS/IFRS prudential filters negative (-) - -9.907<br />
H. Sup p lement ary cap it al b ef o re it ems t o b e d ed uct ed ( F + G) 4 .13 1.9 8 2 3 .59 2 .2 0 5<br />
I. Items to be deducted from supplementary capital 193.323 99.426<br />
L. T o t al sup p lement ary cap it al ( t ier 2 ) ( H - I) 3 .9 3 8 .6 59 3 .4 9 2 .779<br />
M . Items to be deducted from total tier 1 and supplementary capital 36.475 141.154<br />
N . Sup erviso ry cap it al ( E + L - M ) 13 .6 55.9 79 13 .54 7.8 0 2<br />
O. Tier three capital (*) - 95.139<br />
P. Sup erviso ry cap it al inclusive o f t ier 3 ( N + O) 13 .6 55.9 79 13 .6 4 2 .9 4 1<br />
(*) portion eligible for inclusion against market risk<br />
2.2 Capital adequacy requirement<br />
A. Qualitative information<br />
The capital adequacy parameters are consistent with the type of business performed by<br />
the Bank as a Parent Bank, which is almost entirely with members of the Group it leads.<br />
The table below shows the absorption of supervisory capital as a function of the overall<br />
capital adequacy requirement.<br />
Compliance with that requirement at the end of the year involved a capital requirement<br />
of 1.275,2 million euro.<br />
The total capital ratios rose from 39,25% to 64,25%.<br />
Finally, the tier 1 capital ratio as at 31 st December 2008 stood at 45,89% compared to<br />
29,33% the previous year.<br />
726 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
B. Quantitative information<br />
C at eg o ries/ A mo unt s<br />
A mo unt s no t<br />
weig ht ed<br />
3 1.12 .2 0 0 8<br />
A mo unt s<br />
weig ht ed<br />
A . R ISK A SSET S<br />
A .1 C red it and co unt erpart y risk<br />
1. Standardised approach 87.779.446 18.069.542<br />
3. Securitisations 179.827 39.012<br />
B . SU PER V ISOR Y C A PIT A L R EQU IR EM EN T S<br />
R eq uirement s<br />
B .1 C red it and co unt erpart y risk 1.448.684<br />
B .2 M arket risk 160.213<br />
B .3 Op erat io nal risk 91.407<br />
B .4 Ot her p rud ent ial req uirement s -<br />
B .5 T o t al p rud ent ial req uirement s ( *) 1.275.228<br />
C . R ISK A SSET S A N D SU PER V ISOR Y R A T IOS<br />
C .1 R isk weig ht ed asset s 21.253.805<br />
C .2 T ier 1 cap it al/ risk weig ht ed asset s ( T ier 1 cap it al rat io ) 45,89%<br />
C .3 Sup erviso ry cap it al inclusive o f t ier 3 / risk weig ht ed asset s ( T o t al cap it al rat io ) 64,25%<br />
(*) Banks belonging to banking groups also include a reduction of 25% in the calculation of total prudential<br />
requirements. The reduction in prudential capital requirements for <strong>UBI</strong> <strong>Banca</strong> amounted to approximately 425<br />
million euro.<br />
727 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part G – Business combination<br />
transactions<br />
concerning<br />
companies or lines of business<br />
No business combination transactions in accordance with accounting standard<br />
IFRS 3 were performed in 2008.<br />
728 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part H – Transactions with related parties<br />
1. 1. Information on the remuneration of board members and senior managers<br />
Remuneration for Board Members and senior managers<br />
Short-term benefits (*) 15.730<br />
- of which senior managers with strategic responsibility 8.584<br />
Benefits subsequent to termination of employment 1.128<br />
- of which senior managers with strategic responsibility 1.128<br />
Other long term benefits -<br />
Indemnity for termination of employment 152<br />
- of which senior managers with strategic responsibility 152<br />
Share based payments -<br />
- of which senior managers with strategic responsibility -<br />
(*) In addition to the sum destined to the Supervisory Board and to the Management Board, the amount also<br />
included fixed and variable remuneration paid to directors because it is equivalent to staff costs and social<br />
security charges payable by the Bank to employees.<br />
The remuneration in 2008 for 13 senior managers with strategic responsibility including<br />
the Chief Executive Officer and the General Manager was governed by specific individual<br />
agreements and in addition to a fixed component of remuneration there was also a<br />
variable component linked to the achievement of short term objectives.<br />
The following types of remuneration were paid (the relevant accounting standard may be<br />
consulted for definitions):<br />
a)Short-term benefits<br />
Short-term benefits include salaries, social security contributions, indemnities to<br />
replace vacations not taken, absences for illness, paid leave and benefits such as<br />
medical care, housing, and company car.<br />
Short term benefits also include the variable part of remuneration, payment of which is<br />
dependent on meeting annual qualitative and quantitative objectives linked to the<br />
Business Plan. This component accounts on average for approximately 15% of the<br />
Bank’s total labour costs for the 13 senior managers with strategic responsibilities.<br />
b) Benefits subsequent to termination of employment<br />
Post-employment benefits include payments made to pensions funds in relation to<br />
supplementary pensions, insurance premiums relating to health policies to reimburse<br />
medical expenses incurred and other provisions for severance pay.<br />
c) Other long term benefits<br />
There are no medium to long term incentive plans.<br />
d) Indemnity for termination of employment<br />
This item includes payments made if the period of notice required under contracts is<br />
increased in order to give greater protection to the operational continuity of the Group.<br />
729 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Remuneration paid to directors, statutory auditors and the general manager<br />
(Art. 78, Consob Resolution No. 11971 of 14/05/1999 and subsequent<br />
amendments)<br />
Surname and<br />
first name<br />
P o sitio n<br />
P erio d o f<br />
appo intment<br />
D ate o n<br />
which<br />
appo int ment<br />
ends<br />
Emo lum ents<br />
fo r the<br />
po sitio n<br />
N o n<br />
mo netary<br />
benefits<br />
Faissola Corrado Chairman of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 10.05/31.12 A.G.M . 2010 389.214,28 93,65<br />
Deputy Chairman of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/09.05 09.05.2008 198.928,57 93,65<br />
Director and member of the Executive Committee of Banco di Brescia<br />
SpA<br />
B o nuses<br />
and<br />
o ther<br />
incentive<br />
s<br />
Other<br />
rem unerati<br />
o n (7)<br />
01.01/09.05 09.05.2008 93,65 23.574,57<br />
Director of Banco di San Giorgio SpA 01.01/09.05 09.05.2008 93,65 3.035,72<br />
Senior Deputy Chairman and member of the Executive Committee of<br />
<strong>Banca</strong> Regionale Europea SpA<br />
01.01/09.05 09.05.2008 117,06 48.668,16<br />
Trombi Gino Chairman of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/10.05 10.05.2008 218.535,72 468,26<br />
Chairman of the Board of Directors and member of the Executive<br />
Committee of Banco di Brescia SpA<br />
12.05/31.12 A.G.M . 2011 238.137,37<br />
Deputy Chairman of the Board of Directors and member of the Executive<br />
Committee of Centrobanca<br />
28.05/31.12 A.G.M . 2009 56.856,56<br />
Calvi Giuseppe Senior Deputy Chairman of Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 359.500,00 468,26<br />
Folonari Alberto Deputy Chairman of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 256.500,00 468,26<br />
M azzoleni M ario Deputy Chairman of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 255.750,00 468,26<br />
Bazoli Giovanni M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 105.000,00 468,26<br />
Bellini Luigi M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 161.000,00 468,26<br />
Cattaneo M ario M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 266.250,00 468,26<br />
Ferro Luzzi Paolo M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 103.750,00 468,26<br />
Fidanza Virgilio M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 104.000,00 468,26<br />
Fontana Enio M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 102.500,00 468,26<br />
Garavaglia Carlo M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 215.750,00 468,26<br />
Gussalli Beretta<br />
Pietro<br />
M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 103.500,00 468,26<br />
Lucchini Giuseppe M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 104.250,00 468,26<br />
Lucchini Italo M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 161.750,00 468,26<br />
M anzoni Federico M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 213.000,00 468,26<br />
M oltrasio Andrea M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 104.000,00 468,26<br />
M usumeci Toti S. M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 105.750,00 468,26<br />
Orlandi Sergio M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 158.750,00 468,26<br />
Pedersoli<br />
Alessandro<br />
M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 104.750,00 468,26<br />
Perolari Giorgio M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 106.750,00 468,26<br />
Pivato Sergio M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 211.750,00 468,26<br />
Sestini Roberto M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 103.250,00 468,26<br />
Zaleski Romain<br />
C.<br />
M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/10.05 10.05.2008 36.464,29 468,26<br />
Albertani Battista M ember of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> 10.05/31.12 A.G.M . 2010 67.035,71<br />
Director and member of the Executive Committee of <strong>Banca</strong> di Valle<br />
Camonica SpA<br />
01.01/07.04 07.04.2008 132,76 12.367,20<br />
Zanetti Emilio Chairman of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 857.500,00 78,04<br />
Director of BPB Immobiliare Srl 01.01/31.12 A.G.M . 2011 78,04 3.750,00<br />
Chairman of the Board of Directors and member of the Executive<br />
Committee of <strong>Banca</strong> Popolare di Bergamo SpA<br />
Deputy Chairman of the Board of Directors of <strong>UBI</strong> Partecipazioni<br />
Assicurative SpA<br />
Deputy Chairman of the Board of Directors of <strong>UBI</strong> Assicurazioni Vita<br />
SpA<br />
01.01/31.12 A.G.M . 2011 78,04 205.892,86<br />
01.01/09.04 09.04.2008 78,04 3.174,66<br />
01.01/18.06 18.06.2008 78,04 11.880,74<br />
Deputy Chairman of the Board of Directors of <strong>UBI</strong> Assicurazioni SpA 01.01/09.04 09.04.2008 78,04 4.656,16<br />
Pizzini Flavio Deputy Chairman of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 10.05/31.12 A.G.M . 2010 358.733,52 123,95<br />
M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/09.05 09.05.2008 55.909,34<br />
Director and member of the Executive committee (from 12.05.2008) of<br />
Banco di Brescia SpA<br />
Deputy Chairman of the Board of Directors and member of the Executive<br />
Committee of <strong>UBI</strong> Sistemi e Servizi SpA<br />
01.01/31.12 A.G.M . 2011 123,95 59.386,25<br />
01.01/31.12 A.G.M . 2009 123,95 80.835,20<br />
Chairman of the Board of Directors of Solofid Spa 01.01/14.02 14.02.2008 123,95 4.822,00<br />
Chairman of the Board of Directors of <strong>UBI</strong> <strong>Banca</strong> International SA 01.04/31.12 A.G.M . 2009 2.250,00<br />
M assiah Victor (1) Chief Executive Officer of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.12/31.12 A.G.M . 2009 54.848,00 289,00 16.666,67 74.555,06<br />
General M anager and M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong><br />
from 27.11.2008 to 30.11.2008<br />
01.01/30.11 30.11.2008 2.288,00 (2) 5.954,19 183.333,33 553.813,54<br />
(continued)<br />
730 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Surname and<br />
first name<br />
Auletta Armenise<br />
Giampiero<br />
P o sitio n<br />
P erio d o f<br />
appo intment<br />
D ate o n<br />
which<br />
appo int ment<br />
ends<br />
Emo lum ents<br />
fo r the<br />
po sitio n<br />
N o n<br />
mo netary<br />
benefits<br />
B o nuses<br />
and<br />
o ther<br />
incentive<br />
s<br />
Other<br />
rem unerati<br />
o n (7)<br />
M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.12/31.12 A.G.M . 2010 13.000,00 606,70 83.813,40<br />
Chief Executive Officer of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/30.11 30.11.2008 877.109,00 6.324,38 931.305,24<br />
Director and member of the Executive Committee of <strong>Banca</strong> Popolare di<br />
Bergamo Spa<br />
01.01/31.12 A.G.M . 2011 5.975,54 (3)<br />
Director of Banco di Brescia SpA 01.01/31.12 A.G.M . 2011 3.869,57 (3)<br />
Director of <strong>Banca</strong> Regionale Europea Spa 16.06/31.12 A.G.M . 2009 2.811,46 (3)<br />
Director and M ember of the Executive Committee of <strong>Banca</strong> Popolare<br />
Commercio e Industria Spa<br />
01.01/31.12 A.G.M . 2011 5.500,00 (3)<br />
Director and member of the Executive Committee of <strong>Banca</strong> Carime Spa 01.01/17.12 A.G.M . 2011 5.500,00 (3)<br />
Director and M ember of the Executive Committee of <strong>Banca</strong> Popolare di<br />
Ancona SpA<br />
01.01/31.12 A.G.M . 2011 5.250,00 (3)<br />
Director and member of the Executive Committee of Centrobanca Spa 01.01/31.12 A.G.M . 2011 3.887,98 (3)<br />
Bertolotto Piero M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 157.000,00 165,27<br />
Chairman of the Board of Directors and member of the Executive<br />
Committee of <strong>Banca</strong> Regionale Europea Spa<br />
01.01/31.12 A.G.M . 2009 165,27 357.499,21<br />
Director of <strong>UBI</strong> <strong>Banca</strong> International SA 01.01/31.12 A.G.M . 2009 165,27 3.000,00<br />
Director of <strong>Banca</strong> 24-7 SpA 25.02/31.12 A.G.M . 2010 5.908,47<br />
Boselli M ario M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 157.500,00 234,13<br />
Camadini<br />
Giuseppe<br />
Chairman of the Board of Directors and member of the Executive<br />
Committee of Centrobanca Spa<br />
01.01/31.12 A.G.M . 2011 234,13 196.000,00<br />
M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 156.750,00 123,95<br />
Director of Banco di Brescia SpA 01.01/31.12 A.G.M . 2011 123,95 42.952,18<br />
Deputy Chairman of the Board of Directors and member of the Executive<br />
Committee of <strong>Banca</strong> Regionale Europea Spa<br />
16.06/31.12 A.G.M . 2009 76.892,12<br />
Director of <strong>Banca</strong> Regionale Europea Spa 01.01/15.06 15.06.2008 123,95 12.846,16<br />
Director of <strong>Banca</strong> di Valle Camonica Spa 01.01/31.12 A.G.M . 2011 123,95 27.500,00<br />
Chairman of the Board of Directors of <strong>UBI</strong> Fiduciaria SpA (formerly<br />
Solofid SpA)<br />
14.02/31.12 A.G.M . 2009 34.915,00<br />
Cera M ario M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 157.250,00 247,90<br />
Deputy Chairman (Senior from 12.05.2008) of the Board of Directors and<br />
member of the Executive Committee of <strong>Banca</strong> Regionale Europea SpA<br />
01.01/31.12 A.G.M . 2009 247,90 307.499,21<br />
Director and member of the Executive Committee of <strong>UBI</strong> Pramerica<br />
SGR Spa<br />
13.02/31.12 A.G.M . 2011 12.000,00<br />
Frigeri Giorgio M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 157.250,00 33,45<br />
Chairman of the Board of Directors of <strong>Banca</strong> 24-7 SpA 01.01/31.12 A.G.M . 2010 33,45 53.250,00<br />
Chairman of the Board of Directors of Centrobanca Sviluppo Impresa<br />
SGR Spa<br />
01.01/31.12 A.G.M . 2011 33,45 18.000,00<br />
Chairman of the Board of Directors of FinanzAttiva Servizi Srl 01.01/31.12 A.G.M . 2011 33,45 1.000,00<br />
Chairman of the Board of Directors and member of the Executive<br />
Committee of <strong>UBI</strong> Pramerica SGR Spa<br />
Deputy Chairman of the Board of Directors and member of the Executive<br />
Committee of Centrobanca Spa<br />
Chairman of the Board of Directors of <strong>UBI</strong> Pramerica Alternative<br />
Investments SGR Spa<br />
01.01/31.12 A.G.M . 2011 33,45 50.000,00<br />
01.01/31.12 A.G.M . 2011 33,45 95.500,00<br />
01.01/31.12 A.G.M . 2009 33,45 3.000,00<br />
Director of Capitalgest Alternative Investments SGR Spa 21.01/31.12 A.G.M . 2009 250,00<br />
Director and member of the Executive Committee of <strong>UBI</strong> Sistemi e<br />
Servizi Spa<br />
01.01/31.12 A.G.M . 2009 33,45 21.585,20<br />
Chairman of the Board of Directors of M ercato Impresa SpA 01.01/20.03 20.03.2008 33,45 4.329,00 (4)<br />
Chairman of the Board of Directors of Coralis Rent Srl 01.01/20.03 20.03.2008 33,45 649,00 (4)<br />
Chairman of the Board of Directors of Coralis Travel Srl 01.01/20.03 20.03.2008 33,45<br />
Director of <strong>UBI</strong> Partecipazioni Assicurative Spa 01.01/09.04 09.04.2008 33,45 1.975,34<br />
Director of <strong>UBI</strong> Assicurazioni Spa 01.01/09.04 09.04.2008 33,45 2.680,82<br />
Director of <strong>UBI</strong> Assicurazioni Vita Spa 01.01/18.06 18.06.2008 33,45 4.029,01<br />
Gusmini Alfredo M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 01.01/31.12 A.G.M . 2010 307.500,00 (5) 468,26<br />
Director of <strong>Banca</strong> Carime Spa 01.01/24.01 24.01.2008 1.290,31<br />
Polotti Franco M ember of the M anagement Board of <strong>UBI</strong> <strong>Banca</strong> 10.05/31.12 A.G.M . 2010 101.428,57<br />
Director and member of the Executive Committee of Banco di Brescia<br />
SpA<br />
Chairman of the Board of Directors and member of the Executive<br />
Committee of Banco di Brescia SpA<br />
12.05/31.12 A.G.M . 2011 46.678,58<br />
01.01/11.05 11.05.2008 495,80 82.171,38<br />
(continued)<br />
731 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Surname and<br />
first name<br />
P o sitio n<br />
P erio d o f<br />
appo intm<br />
ent<br />
Sora Riccardo<br />
(1)(6) General M anager of <strong>UBI</strong> <strong>Banca</strong> 01.12/31.12<br />
Senior managers<br />
with strategic<br />
responsibility (1) 01.12/31.12<br />
D ate o n<br />
which<br />
appo intment<br />
ends<br />
The position has<br />
no termination<br />
date<br />
The positions<br />
have no<br />
termination date<br />
Emo luments<br />
fo r the<br />
po sitio n<br />
N o n<br />
mo netary<br />
benefits<br />
B o nuses<br />
and<br />
o ther<br />
incentive<br />
s<br />
Other<br />
remunerati<br />
o n (7)<br />
310,00 22.000,00 49.080,05<br />
44.658,81 677.500,00 3.095.212,55<br />
(1) The remuneration relating to Mr. Victor Massiah for the whole of 2008, to Mr. Riccardo Sora from 01/12/2008 and to senior managers with strategic responsibility does not<br />
include that relating to any posts held by them in other companies in the Group because this is paid directly to <strong>UBI</strong> <strong>Banca</strong>.<br />
(2) The amount relates to remuneration for the post of Member of the Management Board of <strong>UBI</strong> <strong>Banca</strong> from 27/11/2008.<br />
(3) For Mr. Auletta Armenise the remuneration received from 01/12/2008 is given because until 30/11/2008 the remuneration received for positions held in Group member<br />
companies was paid directly to <strong>UBI</strong> <strong>Banca</strong>.<br />
(4) The remuneration was paid at the end of 2007 and the amounts stated in the 2007 financial statements already included those sums.<br />
(5) The amount is inclusive of the special remuneration amounting to 150.000 euro for the position of board member appointed to oversee the internal control system pursuant<br />
to Art. 43 bis of the corporate by-laws.<br />
(6) The remuneration accruing to Mr. Riccardo Sora for his position as director of <strong>Banca</strong> Carime was not paid to him because Mr. Sora was an employee of <strong>Banca</strong> Popolare di<br />
Bergamo during the period in question.<br />
(7) The column “other remuneration” gives details of emoluments paid by other Group member companies and also, where relevant, reimbursement of expenses and employee<br />
salaries.<br />
732 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Shareholdings of management and supervisory bodies, the General Manager and<br />
senior managers with strategic responsibilities<br />
(Art. 79, Consob Resolution No. 11971 of 14/05/1999 and subsequent<br />
amendments)<br />
Surname and first name<br />
Shareho ldi<br />
ng in<br />
T ype o f ho lding<br />
Ownership title<br />
N umber o f<br />
shares<br />
o wned as<br />
at<br />
31.12.2007<br />
N umber o f<br />
shares<br />
purchased<br />
N umber o f<br />
shares<br />
so ld<br />
N umber o f<br />
shares<br />
o wned as<br />
at<br />
31.12.2008<br />
Faissola Corrado <strong>UBI</strong> direct full ownership 10.215 - - 10.215<br />
usufruct 81.276 - - 81.276<br />
indirect full ownership 124.783 - - 124.783<br />
spouse (directly) full ownership 9.225 - - 9.225<br />
spouse (indirectly) full ownership 124.783 - - 124.783<br />
Trombi Gino <strong>UBI</strong> direct full ownership 20.000 - - 20.000<br />
Calvi Giuseppe <strong>UBI</strong> direct full ownership 42.000 - - 42.000<br />
spouse (directly) full ownership 41.500 3.000 - 44.500<br />
Folonari Alberto <strong>UBI</strong> direct full ownership 1.039.630 4.000 - 1.043.630<br />
legal title only 286.857 - - 286.857<br />
usufruct 497.997 - - 497.997<br />
spouse (directly) full ownership 369.509 - - 369.509<br />
M azzoleni M ario <strong>UBI</strong> direct full ownership 7.452 3.800 - 11.252<br />
Bazoli Giovanni <strong>UBI</strong> direct full ownership 70.747 - - 70.747<br />
usufruct 209.160 - - 209.160<br />
spouse (directly) full ownership 98.669 - - 98.669<br />
Bellini Luigi <strong>UBI</strong> direct full ownership 8.385 - - 8.385<br />
usufruct 705.718 - - 705.718<br />
Cattaneo M ario <strong>UBI</strong> direct full ownership 250 - - 250<br />
Ferro-Luzzi Paolo <strong>UBI</strong> direct full ownership 250 - - 250<br />
Fidanza Virginio <strong>UBI</strong> direct full ownership 55.000 - - 55.000<br />
spouse (directly) full ownership 50.000 - - 50.000<br />
Fontana Enio <strong>UBI</strong> direct full ownership 1 - - 1<br />
indirect full ownership 32.000 - - 32.000<br />
Garavaglia Carlo <strong>UBI</strong> direct full ownership 274 - - 274<br />
Gussalli Beretta Pietro <strong>UBI</strong> direct full ownership 300 10.000 - 10.300<br />
Lucchini Giuseppe <strong>UBI</strong> direct full ownership 827.526 - - 827.526<br />
usufruct 1.086.544 - - 1.086.544<br />
spouse (directly) full ownership 9.536 - - 9.536<br />
Lucchini Italo <strong>UBI</strong> direct full ownership 35.163 - - 35.163<br />
spouse (directly) full ownership 64.288 - - 64.288<br />
M anzoni Federico <strong>UBI</strong> direct full ownership 13.300 - - 13.300<br />
M oltrasio Andrea <strong>UBI</strong> direct full ownership 2.250 2.250 - 4.500<br />
spouse (directly) full ownership 6.344 - - 6.344<br />
children - minors (directly) full ownership 750 - - - - - - (2)<br />
M usumeci Toti S. <strong>UBI</strong> direct full ownership 2.036 - - 2.036<br />
Orlandi Sergio <strong>UBI</strong> direct full ownership 115.587 - - 115.587<br />
spouse (directly) full ownership 34.008 - - 34.008<br />
Pedersoli Alessandro <strong>UBI</strong> direct full ownership 5.463 - - 5.463<br />
spouse (directly) full ownership 332 - - 332<br />
Perolari Giorgio <strong>UBI</strong> direct full ownership 25.000 40.000 - 65.000<br />
spouse (directly) full ownership 20.210 - - 20.210<br />
Pivato Sergio <strong>UBI</strong> direct full ownership 250 - - 250<br />
Sestini Roberto <strong>UBI</strong> direct full ownership 50.273 - - 50.273<br />
indirect full ownership 35.000 - - 35.000<br />
spouse (directly) full ownership 34.050 300 - 34.350<br />
Zaleski Romain Camille <strong>UBI</strong> direct full ownership 90.794 - - 90.794<br />
spouse (directly) full ownership 1.090.544 - - 1.090.544<br />
Albertani Battista <strong>UBI</strong> direct full ownership 16.067 - - 16.067<br />
<strong>Banca</strong> di Valle<br />
Camonica<br />
direct full ownership 100 - - 100<br />
<strong>UBI</strong> spouse (directly) full ownership 6.540 - - 6.540<br />
<strong>UBI</strong> indirect full ownership 33.200 - - 33.200<br />
Zanetti Emilio <strong>UBI</strong> direct full ownership 262.682 - - 262.682<br />
usufruct 22.576 - - 22.576<br />
spouse (directly) full ownership 187.500 - - 187.500<br />
Pizzini Flavio <strong>UBI</strong> direct full ownership 8.000 - - 8.000<br />
M assiah Victor <strong>UBI</strong> direct full ownership 87.003 10.000 - 97.003<br />
733 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Surna me and first na me<br />
Shareho ldi<br />
ng in<br />
T ype o f ho lding<br />
Ownership title<br />
N umber o f<br />
share s<br />
o wned as<br />
at<br />
3 1.12.2007<br />
N umber o f<br />
shares<br />
purchas ed<br />
N umber o f<br />
shares<br />
s o ld<br />
N umber o f<br />
shares<br />
o wned as<br />
at<br />
31.12 .20 08<br />
Auletta Armenise Giampiero <strong>UBI</strong> direct full ownership 250.109 13.000 - 263.109<br />
Bertolotto Piero <strong>UBI</strong> direct full ownership 250 - - 250<br />
Boselli M ario <strong>UBI</strong> direct full ownership 2.095 - - 2.095<br />
spouse (directly) full ownership 569 - - 569<br />
Camadini Giuseppe <strong>UBI</strong> direct full ownership 736.150 - - 736.150<br />
<strong>Banca</strong> di Valle<br />
Camonica<br />
direct full ownership 2.000 - - 2.000<br />
Cera M ario <strong>UBI</strong> direct full ownership 30.089 3.250 - 33.339<br />
Frigeri Giorgio <strong>UBI</strong> direct full ownership 11.918 - - 11.918<br />
spouse (directly) full ownership 9.808 100 - 9.908<br />
Gusmini Alfredo <strong>UBI</strong> direct full ownership 63.000 - - 63.000<br />
spouse (directly) full ownership 72.000 - - 72.000<br />
Polotti Franco <strong>UBI</strong> direct full ownership 2.000 - - 2.000<br />
indirect full ownership 1.539.741 30.000 - 1.569.741<br />
legal title only 530.259 - - 530.259<br />
spouse (directly) full ownership 1.000 - - 1.000<br />
Sora Riccardo <strong>UBI</strong> direct full ownership 16.500 - - 16.500<br />
Dirigenti con responsabilità strategiche<br />
(1) <strong>UBI</strong> direct full ownership 19.414 10.000 - 29.414<br />
spouse (directly) full ownership 4.924 350 - 5.274<br />
children - minors (directly) full ownership 665 - - 500 (2)<br />
(1) the balance as at 31.12.2007 of the shareholdings of senior managers with strategic responsibility and their family members is different from that<br />
published in the 2007 annual report as at 31.12.2007 because one member retired and there were changes regarding family members during 2007.<br />
(2) Some children who were minors attained eighteen years of age in 2008 and no longer fell within the scope of the Consob resolution (the balance as<br />
at 31.12.2008 was therefore stated net of any shares that may have been held by those persons).<br />
734 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
2. Transactions with related parties<br />
In compliance with CONSOB communications No. 97001574 of 20 th February 1997, No.<br />
98015375 of 27 th February 1998, No. 1025564 of 6 th April 2001 and lastly with<br />
communications No. DEM/6064293 of 28 th July 2006 and No. 15519 of 28 th July 2006,<br />
we report that all transactions carried out by the Parent Bank with related parties were<br />
conducted in observance of correct principles both in substance and form under<br />
conditions analogous to those applied for transactions with independent parties.<br />
Following the repeal by the aforementioned CONSOB Communication of 14 th April 2005<br />
of the third paragraph of article 71-bis of CONSOB Regulation No. 11971/1999, by<br />
which the previous Communication No. 2064231 of 30th September 2002 defined the<br />
notion of related parties, since that definition is no longer valid, in accordance with IAS<br />
24, a related party is considered to be related to the issuer if:<br />
a) it directly or indirectly controls, is controlled by or is under common control with<br />
the issuer; or it holds an interest that allows it to exercise significant influence over the<br />
issuer;<br />
b) it is an associate of the issuer (as defined in IAS 28 - investments in associates);<br />
c) it is a joint venture in which the issuer is a venturer;<br />
d) he/she is a manager with strategic responsibilities of the issuer or of its parent,<br />
where a manager with strategic responsibility is intended as meaning those who have<br />
power and responsibility for the planning, management and control of the activities of<br />
the issuer including its directors;<br />
e) he/she is a close member of the family of one of the individuals referred to in (a)<br />
or (d) (a close family member is intended as meaning those who are potentially able to<br />
influence an individual related to the issuer or be influenced by them in their relations<br />
with the issuer);<br />
f) the party is an entity that is controlled, jointly controlled or significantly<br />
influenced by any individual referred to in (d) or (e) or any individual referred to in (d) or<br />
(e) holds significant voting power in such entity, either directly or indirectly;<br />
g) it is a pension fund for the employees of the issuer or of any entity related to it.<br />
In particular, the parent company <strong>UBI</strong> <strong>Banca</strong> and <strong>UBI</strong> Sistemi e Servizi provide the<br />
subsidiaries of the parent with a series of services, governed by intercompany contracts<br />
drawn up in accordance with the principles of consistency, transparency and uniformity<br />
in line with the organisational model of the Group. Under this model, strategic,<br />
technical, operational and management activities are centralised at <strong>UBI</strong> <strong>Banca</strong> and the<br />
service company. The prices agreed for the services provided under the contracts were<br />
determined on the basis of market prices or, where appropriate reference parameters<br />
could not be found in the marketplace, in accordance with the particular nature of the<br />
services provided, on the basis of the cost incurred.<br />
The main intragroup contracts existing at the end of the year included those which<br />
implement the centralisation of activities in the Governance, Support and Business<br />
Areas of the <strong>UBI</strong> <strong>Banca</strong> and <strong>UBI</strong> Sistemi e Servizi and they involved the Parent Bank,<br />
the service company and the main banks in the Group (<strong>Banca</strong> Popolare di Bergamo SpA,<br />
Banco di Brescia Spa, <strong>Banca</strong> Regionale Europea Spa, <strong>Banca</strong> Popolare Commercio e<br />
Industria Spa, <strong>Banca</strong> Carime Spa, <strong>Banca</strong> Popolare di Ancona Spa, Banco San Giorgio<br />
Spa, <strong>Banca</strong> di Valle Camonica Spa and <strong>Banca</strong> Lombarda Private Investments Spa) and<br />
also contracts to implement the “national fiscal consolidation” (in accordance with<br />
articles 117 to 129 of Presidential Decree No. 917/1986, the consolidated law on income<br />
tax) concluded by the Parent Bank with thirty four Italian companies in the Group.<br />
We report with regard to transactions between the Parent Bank and all of its related<br />
parties that no atypical and/or unusual transactions were performed; furthermore no<br />
transactions of that type were even performed with counterparties that were not related<br />
parties.<br />
Atypical and/or unusual transactions, as indicated in Consob Communications No.<br />
98015375 of 27 th February 1998 and No. 102564 of 6 th April 2001, are intended to<br />
735 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
mean all those transactions which, because of their significance/entity, the nature of<br />
the counterparties, the content of the transaction (even in relation to ordinary<br />
operations), the way in which the transfer price is decided and the timing of the event<br />
(close to the end of the financial year) might give rise to doubts concerning: the<br />
correctness/completeness of the information in the accounts, a conflict of interests, the<br />
security of the companies assets and the rights of minority shareholders. Furthermore a<br />
special procedure has been put in place to list and update details of related parties and<br />
also to monitor transactions with them.<br />
736 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Related party<br />
Summary of principal balance sheet transactions with related parties<br />
Financial<br />
assets<br />
held for<br />
trading<br />
Availablefor-sale<br />
financial<br />
assets<br />
Loans to<br />
banks<br />
Loans to<br />
customers<br />
Other<br />
assets<br />
Due to<br />
banks<br />
Due to<br />
customer<br />
s<br />
Securities<br />
issued<br />
Financial<br />
liabilities<br />
held for<br />
trading<br />
Other<br />
liabilities<br />
Guarantees<br />
granted<br />
Direct subsidiaries 647.187 48.480 26.938.670 10.244.813 442.133 23.731.005 226.007 165.930 499.115 343.618 3.480.056<br />
Direct associates - 14.085 - 15.210 - - - - - - 40.000<br />
Direct joint ventures - - - 10.036 - - 1.629 - - - 10.000<br />
Senior managers - - - 2 - - 266 - - - -<br />
Other related parties 15.000<br />
Percentage of balance sheet transactions with related parties in respect of the financial statements of <strong>UBI</strong> <strong>Banca</strong><br />
Related party<br />
Financial<br />
assets<br />
held for<br />
trading<br />
Availablefor-sale<br />
financial<br />
assets<br />
Loans to<br />
banks<br />
Loans to<br />
customer<br />
s<br />
Other<br />
assets<br />
Due to<br />
banks<br />
Due to<br />
customer<br />
s<br />
Securities<br />
issued<br />
Financial<br />
liabilities<br />
held for<br />
trading<br />
Other<br />
liabilities<br />
Guarantees<br />
granted<br />
With related parties (a)647.187 62.565 26.938.670 10.270.061 442.133 23.731.005 227.902 165.930 499.115 343.618 3.545.056<br />
Total (b) 2.424.111 2.767.513 29.298.338 10.446.768 856.102 28.732.515 5.813.895 14.128.184 1.222.187 1.186.375 3.750.533<br />
Percentage (a/b*100) 26,70% 2,26% 91,95% 98,31% 51,64% 82,59% 3,92% 1,17% 40,84% 28,96% 94,52%<br />
737 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Summary of principal income statement transactions with related parties<br />
Related party<br />
Net<br />
interest<br />
Net<br />
commissio<br />
n income<br />
Dividends<br />
and<br />
similar<br />
income<br />
Profits<br />
and<br />
losses on<br />
financial<br />
operation<br />
s<br />
Other<br />
operating<br />
revenues<br />
and<br />
expenses<br />
Staff costs<br />
Other<br />
administrative<br />
expenses<br />
Direct subsidiaries 504.261 624 832.447 1.614 174.067 62.023 (69.323)<br />
Direct associates - - 3.111 - 22 - -<br />
Direct joint ventures - - 1.925 - - - -<br />
Senior managers - - - - - (17.010) -<br />
Other related parties - - - - 33 - (1.131)<br />
Percentage of income statement transactions with related parties in respect of the accounts of <strong>UBI</strong> <strong>Banca</strong><br />
Related party<br />
Net<br />
interest<br />
Net<br />
commissio<br />
n income<br />
Dividends<br />
and<br />
similar<br />
income<br />
Profits<br />
and<br />
losses on<br />
financial<br />
operation<br />
s<br />
Other<br />
operating<br />
revenues<br />
and<br />
expenses<br />
Staff costs<br />
Other<br />
administrative<br />
expenses<br />
With related parties (a) 504.261 624 837.483 1.614 174.122 45.013 (70.454)<br />
Total (b) (250.789) 13.174 904.355 (83.343) 166.082 (174.152) (177.131)<br />
Percentage (a/b*100) -201,07% 4,74% 92,61% -1,94% 104,84% -25,85% 39,78%<br />
738 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Principal balance sheet items with subsidiaries subject to control, joint control and significant influence<br />
Fi na nc i a l<br />
Fi na nc i a l<br />
a sse t s he l d<br />
f or t r a di ng<br />
A v a i l a bl e - f or -<br />
sa l e f i na nc i a l<br />
a sse t s<br />
Loa ns t o<br />
ot he r ba nk s<br />
Loa ns t o<br />
c ust ome r s<br />
Ot he r a sse t s D ue t o ba nk s<br />
D ue t o<br />
c ust ome r s<br />
S e c ur i t i e s<br />
i ssue d<br />
l i a bi l i t i e s<br />
he l d f or<br />
t r a di ng<br />
Ot he r<br />
l i a bi l i t i e s<br />
Gua r a nt e e s<br />
gr a nt e d<br />
F u l l y c o n s o l i d a t e d c o mp a n i e s 6 4 7 . 1 8 7 4 8 . 4 8 0 2 6 . 9 3 8 . 6 7 0 1 0 . 2 4 4 . 8 1 3 4 4 2 . 1 3 3 2 3 . 7 3 1 . 0 0 5 2 2 6 . 0 0 7 1 6 5 . 9 3 0 4 9 9 . 1 1 5 3 4 3 . 6 1 8 3 . 4 8 0 . 0 5 6<br />
B @nca 24-7 Spa 169.995 - 8.529.946 - 18.022 175 - - 56.538 8.828 80.000<br />
B anca Car i me Spa 306 - 146 - 132 4.793.492 - - 23.924 - -<br />
B anca di V al l e Camoni ca Spa 7.092 - 563.588 - 9.898 558.519 - - 11.167 7.150 50.350<br />
B anca Lombar da P r ef er r ed Capi tal Company LLC - 1.550 - - - - - - - - -<br />
B anca Lombar da P r i vate Investment Spa 4.480 - 75.938 - 253 397.841 - - - 677 858<br />
B anca P opol ar e Commer ci o e Industr i a Fundi ng LLC - - - - - 123.436 - - - - -<br />
B anca P opol ar e Commer ci o e Industr i a Spa 57.028 - 1.195.310 - 222 2.049.520 - - 40.007 - 125.586<br />
B anca P opol ar e di A ncona Spa 42.659 - 1.279.790 - 98 1.543.472 - - 28.734 - 37.590<br />
B anca P opol ar e di B er gamo Spa 44.429 - 2.433.986 - 158.178 6.901.747 - - 94.935 124.270 173.277<br />
B anca Regi onal e E ur opea Spa 63.745 - 1.269.985 - 41.483 1.660.341 - - 63.341 37.640 333.561<br />
B anco di B r esci a Spa 127.749 - 3.134.481 - 98.742 2.789.135 - 165.930 104.346 78.525 523.739<br />
B anco di San Gi or gi o Spa 28.283 - 1.015.651 - 7.144 191.079 - - 11.317 537 77.956<br />
B anque de Depot s et de Gesti on Sa - - 22.734 - - 64 - - - - 1.849<br />
B P B Fundi ng LLC - - - - - 324.776 - - - - -<br />
B P B Immobi l i ar e Sr l - - - - 1.362 - - - - 1.219 -<br />
Capi tal gest A l ter nati ve Investment SGR Spa - - - - 406 - - - - 1.464 -<br />
Capi tal gest SGR Spa - - - - - - - - - 3.387 -<br />
Centr obanca Spa 51.665 - 5.762.384 - - 158.478 - - 64.231 - 888.036<br />
Centr obanca Svi l uppo Impr esa SGR Spa - 35.854 - - - - - - - 22 -<br />
Cor al i s Rent Sr l - - - - 23 - - - - 208 120.000<br />
Cor al i s T r avel Sr l - - - - - - - - - 74 -<br />
Fi nanzA tti va Ser vi zi Sr l - - - - 3 - - - - - -<br />
IW B ank Spa - - 1.519.473 - - 1.912.593 - - - - 100<br />
M er cato Impr esa Spa - - - - 459 - - - - 510 -<br />
Or i o Fi nance Nr . 1 P l c - - - - - - - - - - -<br />
Or i o Fi nance Nr . 2 P l c 17.344 - - - - - 2 - - - -<br />
Or i o Fi nance Nr . 3 P l c 6.907 - - - - - - - - - -<br />
UB I Centr osystem Spa - - - 10.123 27 - - - - 117 -<br />
UB I Leasi ng Spa 22.383 11.076 - 8.155.478 41.408 - 115.621 - 575 22.250 174.587<br />
UB I P r amer i ca A l ter nati ve SGR Spa - - - - 12 - - - - 478 -<br />
Uni one di B anche Ital i ane per i l Factor i ng Spa - - - 2.040.471 8.281 - - - - 7.316 656.885<br />
UB I Fi duci ar i a S.P.A. di A mmi ni str azi one Fi duci ar i a - - - - 47 - - - - 103 474<br />
Soci età B r esci ana i mmobi l i ar e M obi l i ar e - S.B.I.M . S.P.A. - - - 31.623 303 - - - - 7 7.722<br />
UB I Gesti oni Fi duci ar i e SIM Spa - - - - 275 - - - - 113 -<br />
Si l f - Soci età Ital i ana Leasi ng e Fi nanzi amenti Spa - - - 4.015 860 - 1 - - 8.094 -<br />
Soci età Lombar da Immobi l i ar e S.P .A. - - - - 37 - - - - - 4<br />
UB I A ssi cur azi oni Spa - - - 3.071 301 - - - - 3.603 -<br />
UB I B anca Inter nati onal SA 3.122 - 135.258 - - 326.337 - - - - 227.482<br />
UB I Si stemi e Ser vi zi S.P.A. - - - 23 51.690 - - - - 31.071 -<br />
UB I Insur ance B r oker Sr l - - - - 61 - - - - 5.088 -<br />
UB I P r amer i ca SGR Spa - - - 9 2.406 - 110.383 - - 867 -<br />
C o mp a n i e s c o n s o l i d a t e d p r o p o r t i o n a l l y - 1 4 . 0 8 5 - - - - - - - - -<br />
B y Y ou Spa - - - - - - - - - - -<br />
B y Y ou M utui - - - - - - - - - - -<br />
B y Y ou Li gur i a - - - - - - - - - - -<br />
B y Y ou Nor d - - - - - - - - - - -<br />
B y Y ou Centr o - - - - - - - - - - -<br />
B y Y ou Sud - - - - - - - - - - -<br />
P ol i s Fondi SGR Spa - 14.085 - - - - - - - - -<br />
C o mp a n i e s c o n s o l i d a t e d u s i n g t h e e q u i t y me t h o d - - - 2 5 . 2 4 6 - - 1 . 6 2 9 - - - 5 0 . 0 0 0<br />
A vi va V i ta Spa - - - 10.036 - - 1.629 - - - 10.000<br />
A r ca SGR - - - - - - - - - - -<br />
Lombar da V i ta - - - - - - - - - - -<br />
Ubi A ssi cur azi one V i ta S.P.A. - - - 15.210 - - - - - - 40.000<br />
739 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Principal income statement items with subsidiaries subject to control, joint control and significant influence<br />
O t h e r i n c o me<br />
O t h e r<br />
N e t c o mmi s s i o n<br />
N e t p r o f i t ( l o s s )<br />
N e t i n t e r e s t<br />
D i v i d e n d s<br />
/ o p e r a t i n g<br />
S t a f f c o s t s a d mi n i s t r a t i v e<br />
i n c o me<br />
f r o m t r a d i n g<br />
e x p e n s e<br />
e x p e n s e s<br />
F u l l y c o n s o l i d a t e d c o mp a n i e s 5 0 4 . 2 6 1 6 2 4 8 3 2 . 4 4 7 1 . 6 1 4 1 7 4 . 0 6 7 6 2 . 0 2 3 ( 6 9 . 3 2 3 )<br />
B @nca 24-7 Spa 341. 990 (689) 11.520 - 205 1. 413 -<br />
B anca Car i me Spa (217.146) (1.002) 50.369 - 13.124 (7.207) (295)<br />
B anca di V al l e Camoni ca Spa 1. 891 230 13.013 3 2.472 (255) -<br />
B anca Lombar da P r ef er r ed Capi tal Company LLC - - - - - - -<br />
B anca Lombar da P r i vate Investment Spa (13.119) 360 - 26 1.824 518 -<br />
B anca P opol ar e Commer ci o e I ndust r i a Fundi ng LLC (10.221) - - - - - -<br />
B anca P opol ar e Commer ci o e I ndust r i a Spa 896 653 54.727 - 21.868 (764) (1.368)<br />
B anca P opol ar e di A ncona Spa (6.959) (742) 48.563 - 10.463 (2.590) (120)<br />
B anca P opol ar e di B er gamo Spa (130.469) (2.221) 305.658 - 49.259 (6.841) (186)<br />
B anca Regi onal e E ur opea Spa (47) 1.010 47.305 776 10.271 (1.635) (102)<br />
B anco di B r esci a Spa (58.116) 1.443 178.863 807 16.169 (866) (165)<br />
B anco di San Gi or gi o Spa 40. 270 464 3.878 2 1.844 395 -<br />
B anque de Depot s et de Gesti on Sa 134 - 7.858 - 35 - -<br />
B P B Fundi ng LLC (23.762) - - - - - -<br />
B P B I mmobi l i ar e Sr l - - - - - 448 -<br />
Capi tal gest A l t er nati ve Invest ment SGR Spa (61) - - - 155 - -<br />
Capi tal gest SGR Spa (51) - 2.541 - 10 (1.232) (171)<br />
Cent r obanca Spa 211. 039 73 47.786 - (3. 400) 2. 656 (739)<br />
Cent r obanca Svi l uppo I mpr esa SGR Spa - - - - 39 30 -<br />
Cor al i s Rent Sr l - - - - 26 27 (286)<br />
Cor al i s T r avel Sr l - - - - 17 - -<br />
Fi nanzA tt i va Ser vi zi Sr l - - - - 11 - -<br />
I W B ank Spa (17.116) - 1.793 - 225 (36) -<br />
M er cat o I mpr esa Spa - - 2.957 - 107 343 (2.974)<br />
Or i o Fi nance Nr . 1 P l c - - - - - - -<br />
Or i o Fi nance Nr . 2 P l c - - - - - - -<br />
Or i o Fi nance Nr . 3 P l c - - - - - - -<br />
UB I Centr osystem Spa 788 - - - 145 166 -<br />
UB I Leasi ng Spa 345. 166 113 21.172 - 466 1. 259 -<br />
UB I P r amer i ca A l ter nat i ve SGR Spa (245) - - - 25 - -<br />
Uni one di B anche It al i ane per i l Fact or i ng Spa 52. 085 1.597 15.974 - 202 97 -<br />
UB I Fi duci ar i a S.P .A . di A mmi ni str azi one Fi duci ar i a - - 348 - 32 6 -<br />
Soci et à B r esci ana i mmobi l i ar e M obi l i ar e - S. B. I. M . S. P. A . 1. 717 - 769 - 129 66 (4.350)<br />
UB I Gesti oni Fi duci ar i e SIM Spa - - - - 53 131 -<br />
Si l f - Soci età I tal i ana Leasi ng e Fi nanzi amenti Spa 5. 112 - 878 - 96 402 -<br />
Soci et à Lombar da Immobi l i ar e S.P . A. - - - - 28 - -<br />
UB I A ssi cur azi oni Spa 137 - - - 381 283 (536)<br />
UB I B anca Int er nat i onal SA (19.724) 223 4.247 - - 50 -<br />
UB I Si stemi e Ser vi zi S.P .A . 363 7 - - 45.789 74. 837 (58.031)<br />
UB I Insur ance B r oker Sr l - - 2.000 - 15 202 -<br />
UB I P r amer i ca SGR Spa (291) (895) 10.228 - 1.982 120 -<br />
C o mp a n i e s c o n s o l i d a t e d p r o p o r t i o n a l l y - - 7 6 3 - 2 2 - -<br />
B y Y ou Spa - - 694 - 17 - -<br />
B y Y ou M ut ui - - - - 1 - -<br />
B y Y ou Li gur i a - - - - 1 - -<br />
B y Y ou Nor d - - - - 1 - -<br />
B y Y ou Centr o - - - - 1 - -<br />
B y Y ou Sud - - - - 1 - -<br />
P ol i s Fondi SGR Spa - - 69 - - - -<br />
C o mp a n i e s c o n s o l i d a t e d u s i n g t h e e q u i t y me t h o d - - 4 . 2 7 3 - - - -<br />
A vi va Vi ta Spa - - 1.925 - - - -<br />
A r ca SGR - - 1.619 - - - -<br />
Lombar da Vi ta - - 729 - - - -<br />
Ubi A ssi cur azi one Vi ta S.P . A. - - - - - - -<br />
740 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Part I – Agreements based on own balance<br />
sheet instruments<br />
No payment agreements were entered into in 2008 based on the Bank’s own equity instruments.<br />
741 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Attachments to the Separate financial<br />
statements<br />
List of real estate properties<br />
Convertible bonds<br />
List of significant equity investments held in unlisted companies<br />
Disclosures concerning fees for audit of the accounts (CONSOB Issuers’ Regulations Art 149<br />
duodieces).<br />
742 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
List of real estate properties<br />
Lo catio n<br />
O wned<br />
/ Leased Investments<br />
R evaluatio ns<br />
by law<br />
R evaluatio ns<br />
by mergers<br />
R evaluatio ns<br />
o n F .T .A . Gro ss values<br />
O ther<br />
C hanges A ccum. D epr.<br />
C arrying<br />
amo unt s<br />
1 ABBIATEGRASSO - P.ZZA CAVOUR, 11 O 1.348.370,66 - - 149.323,41 1.497.694,07 - 570.751,97 926.942,10<br />
2 ALBANO SANT ALESSANDRO - VIA CAVOUR, 2 O 441.273,44 540.939,12 - 125.049,29 1.107.261,85 - 340.633,99 766.627,86<br />
3 ALBINO - VIA M AZZINI, 181 O 912.764,12 671.708,52 - 188.602,42 1.773.075,06 - 368.692,03 1.404.383,03<br />
4 ALM E - VIA TORRE D'ORO, 2 O 549.587,59 955.591,35 - 147.706,44 1.652.885,38 - 353.087,45 1.299.797,93<br />
5 ALM ENNO SAN BARTOLOM EO - VIA FALCONE, 2 L 549.177,01 - - 142.545,15 691.722,16 - 103.245,91 588.476,25<br />
6 ALM ENNO SAN SALVATORE - VIA M ARCONI, 3 O 334.999,68 524.901,58 - 89.960,32 949.861,58 - 331.795,50 618.066,08<br />
7 ALZANO LOM BARDO - P.ZZA GARIBALDI, 3 O 1.077.468,91 780.530,73 - 264.470,20 2.122.469,84 - 616.656,68 1.505.813,16<br />
8 ALZANO LOM BARDO - VIA EUROPA, 67 O 20.382,05 - - 281.932,63 302.314,68 - 49.155,99 253.158,69<br />
9 ANGERA - VIA M . GREPPI, 33 O 166.386,85 444.930,52 - 175.948,70 787.266,07 - 293.074,56 494.191,51<br />
10 ARCENE - CORSO EUROPA, 7 O 544.716,17 507.105,34 - 86.447,03 1.138.268,54 - 427.307,59 710.960,95<br />
11 ARCORE - VIA CASATI, 45 O 977.807,23 242.785,55 - 176.942,62 1.397.535,40 - 689.551,27 707.984,13<br />
12 ARDESIO - VIA LOCATELLI, 8 O 146.571,04 640.034,03 - 129.117,77 915.722,84 - 455.314,81 460.408,03<br />
13 ARLUNO - VIA PIAVE, 5 L 1.260.946,93 - - - 479.342,67<br />
781.604,26 - 107.150,81 674.453,45<br />
14 ASSAGO - VIALE M ILANOFIORI O 9.917.653,29 370.406,90 - - 2.169.504,33 8.118.555,86 - 2.190.806,81 5.927.749,05<br />
15 AZZANO SAN PAOLO - PIAZZA IV NOVEM BRE, 4 O 389.291,28 720.230,46 - 137.908,63 1.247.430,37 - 467.898,59 779.531,78<br />
16 AZZATE - VIA V.VENETO, 23 O 940.456,42 181.771,24 495.054,37 201.911,04 1.819.193,07 - 638.181,35 1.181.011,72<br />
17 BAGNOLO SAN VITO - VIA DI VITTORIO, 35 O 131.968,60 372.581,85 121.159,50 82.796,84 708.506,79 - 386.256,16 322.250,63<br />
18 BERBENNO - FR.PONTE GIURINI - V. STOPPANI,78 O 460.827,53 - - - 460.827,53 - - 460.827,53<br />
19 BERGAM O - GALLERIA SANTA M ARTA O 579.633,74 1.628.913,43 - 169.372,40 2.377.919,57 - 892.291,51 1.485.628,06<br />
20 BERGAM O - P.ZZA M ATTEOTTI O 997.032,08 2.801.905,49 - 256.680,68 4.055.618,25 - 1.592.216,15 2.463.402,10<br />
21 BERGAM O - P.ZZA PONTIDA, 37/42 O 2.259.854,24 789.282,49 - 75.595,51 3.124.732,24 - 1.150.918,06 1.973.814,18<br />
22 BERGAM O - P.ZZA V.VENETO, 8 O 28.626.559,28 69.881.993,30 - 1.181.570,69 99.690.123,27 - 34.042.039,85 65.648.083,42<br />
23 BERGAM O - PIAZZALE RISORGIM ENTO, 15 O 1.053.420,36 574.958,09 - 16.438,02 1.644.816,47 - 658.404,05 986.412,42<br />
24 BERGAM O - VIA BORGO PALAZZO, 135 O 3.350.015,99 1.643.531,56 - 175.577,89 5.169.125,44 - 2.404.783,76 2.764.341,68<br />
25 BERGAM O - VIA BORGO PALAZZO, 51 O 1.121.597,00 1.191.955,96 - 181.657,06 2.495.210,02 - 805.562,04 1.689.647,98<br />
26 BERGAM O - VIA BORGO S.CATERINA, 6 O 921.346,04 693.858,54 - 86.848,23 1.702.052,81 - 429.847,62 1.272.205,19<br />
27 BERGAM O - VIA D.L.PALAZZOLO 71 O 21.998.620,11 24.996.012,57 701.397,15 1.707.839,02 49.403.868,85 - 19.855.639,19 29.548.229,66<br />
28 BERGAM O - VIA F. CRISPI, 2 O 148.819,42 418.219,17 - 74.788,35 641.826,94 - 116.710,92 525.116,02<br />
29 BERGAM O - VIA F. CRISPI, 4 O 3.600.668,35 10.933.879,30 294.388,88 829.154,79 15.658.091,32 - 4.224.401,47 11.433.689,85<br />
30 BERGAM O - VIA F.LLI CALVI, 9 O 16.083.238,59 4.232.571,42 23.075,33 - 1.061.498,67 19.277.386,67 - 4.653.455,77 14.623.930,90<br />
31 BERGAM O - VIA GOM BITO, 2/C O 137.366,80 1.059.591,45 - 89.643,09 1.286.601,34 - 425.438,05 861.163,29<br />
32 BERGAM O - VIA LEONE XIII, 2 O 28.299,91 432.380,44 - 43.451,45 504.131,80 - 232.811,99 271.319,81<br />
33 BERGAM O - VIA LEONE XIII, 2 O 237,35 16.111,40 - - 263,37<br />
16.085,38 - 11.458,17 4.627,21<br />
34 BERGAM O - VIA M ATTIOLI, 69 O 616.057,88 650.057,14 - 47.309,21 1.313.424,23 - 350.992,04 962.432,19<br />
35 BERGAM O - VIA SAN BERNARDINO,96 O 1.955.066,74 1.221.161,76 - 30.955,49 3.207.183,99 - 1.448.458,28 1.758.725,71<br />
36 BESOZZO - VIA XXV APRILE, 24 O 137.252,44 694.784,05 - 364.080,01 1.196.116,50 - 416.391,57 779.724,93<br />
37 BESOZZO - VIA XXV APRILE, 77 O 197.120,72 349.551,60 324.324,01 111.233,86 982.230,19 - 487.470,42 494.759,77<br />
38 BIELLA - VIA SAURO, 2 O 657.786,99 662.729,30 62.116,88 - 189.245,32 1.193.387,85 - 374.832,57 818.555,28<br />
39 BISUSCHIO - VIA M AZZINI, 28 O 171.346,39 258.221,79 - 78.995,63 508.563,81 - 158.700,33 349.863,48<br />
40 BOLOGNA - VIA REPUBBLICA, 29 O 840.896,42 21.118,32 - - 175.892,65<br />
686.122,09 - 108.541,00 577.581,09<br />
41 BOLTIERE - PIAZZA IV NOVEM BRE, 14 O 287.605,68 158.268,69 - 82.590,04 528.464,41 - 79.972,17 448.492,24<br />
42 BREM BILLA - VIA LIBERTA', 25 O 644.844,22 361.575,07 - 58.264,25 1.064.683,54 - 479.732,97 584.950,57<br />
43 BRESCIA - C.DA CAVALLETTO O - - - - - - - -<br />
44 BRESCIA - V.G.ROSA 71 O 154,94 468.576,65 - - 468.731,59 212.333,37 125.279,95 555.785,01<br />
45 BRESCIA - V.SOLDINI 25 -COM M . O 41.987,95 1.401.996,05 - - 1.443.984,00 855.912,55 548.090,61 1.751.805,94<br />
46 BRESCIA - VIA ALDO M ORO O 2.691.506,91 3.685.460,83 - - 6.376.967,74 979.807,13 1.431.357,53 5.925.417,34<br />
47 BRESCIA - VIA CEFALONIA O 10.715.191,02 29.104.210,37 - - 39.819.401,39 9.971.913,62 13.674.857,84 36.116.457,17<br />
48 BRESCIA - VIA CROCIFISSA ROSA, 1 O 7.117,05 - - 1.572.178,80 1.579.295,85 - 303.676,30 1.275.619,55<br />
49 BRESCIA - VIA FARFENGO, 65 O 2.369,50 - - 710.185,73 712.555,23 - 176.842,09 535.713,14<br />
50 BRESCIA - VIA GRAM SCI, 39 O 2.958.705,83 11.030.406,06 570.801,35 92.247,11 14.652.160,35 - 7.094.755,70 7.557.404,65<br />
51 BRESCIA - VIA TRENTO 5/ VIA BREDINA O 6.744,93 1.127.673,76 - - 1.134.418,69 177.398,84 277.463,25 1.034.354,28<br />
52 BRESCIA - VIA TRENTO 7 O 793.181,51 6.286.558,53 - - 7.079.740,04 - 2.735.224,44 4.344.515,60<br />
53 BRESCIA - VIA VITTORIO EM ANUELE, 60 O 1.305.071,72 91.200,25 - 35.262,39 1.431.534,36 - 321.479,54 1.110.054,82<br />
54 BRIGNANO GERA D ADDA - PIAZZA M ONSIGNOR O 621.767,52 604.977,47 - 220.865,61 1.447.610,60 - 505.957,03 941.653,57<br />
55 BULCIAGO - VIA DON DAVIDE CANALI, 33/35 O 63.891,84 456.650,05 - 70.450,65 590.992,54 - 189.282,35 401.710,19<br />
56 BUSTO ARSIZIO - P.ZZA S.GIOVANNI, 3/A O 3.298.703,92 5.333.880,25 1.364.348,30 808.210,12 10.805.142,59 - 3.614.993,94 7.190.148,65<br />
57 BUSTO ARSIZIO - VIA FOSCOLO, 10 O 2.116.377,81 703.886,44 - 225.707,16 3.045.971,41 - 273.859,89 1.063.036,70 1.709.074,82<br />
58 BUSTO ARSIZIO - VIA M AGENTA, 64 O 640.220,64 321.366,12 38.728,74 - 143.461,10<br />
856.854,40 - 298.511,10 558.343,30<br />
59 BUSTO ARSIZIO - VIALE CADORNA, 4 O 2.228.244,91 775.192,51 - 196.879,35 3.200.316,77 - 1.321.736,83 1.878.579,94<br />
60 CAIRATE - VIA M AZZINI, 13 O 142.562,37 244.680,85 316.367,18 102.490,01 806.100,41 - 406.314,39 399.786,02<br />
(continued)<br />
743 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Lo catio n<br />
Owned<br />
/ Leased Investm ents<br />
R evaluat io ns<br />
by law<br />
R evaluatio ns<br />
by mergers<br />
R evaluatio ns<br />
o n F .T .A . Gro ss values<br />
Other<br />
C hanges A ccum . D epr.<br />
C arrying<br />
am o unts<br />
61 CALCIO - VIA P. GIOVANNI XXIII, 153 O 529.561,96 187.376,66 - 80.100,81 797.039,43 - 299.427,80 497.611,63<br />
62 CALOLZIOCORTE - P.ZZA V.VENETO, 18/A O 1.127.737,41 353.193,48 - - 309.382,40 1.171.548,49 - 309.054,49 862.494,00<br />
63 CALUSCO D ADDA - VIA V. EM ANUELE, 35 O 584.456,68 452.869,26 - 94,71 1.037.420,65 - 309.516,31 727.904,34<br />
64 CANEVA - VIA M ARCONI O - - - - - - - -<br />
65 CANNOBIO - VIA UM BERTO I, 2 O 112.620,89 241.425,16 - 391.415,07 745.461,12 - 307.240,26 438.220,86<br />
66 CANTELLO - VIA TURCONI, 1 O 789.611,84 272.664,26 - 95.806,50 1.158.082,60 - 275.425,14<br />
384.382,17 498.275,29<br />
67 CARAVAGGIO - PIAZZA GARIBALDI, 1 O 672.002,20 1.093.316,87 - 178.274,08 1.943.593,15 - 927.112,09 1.016.481,06<br />
68 CARDANO AL CAM PO - VIA G. DA CARDANO, 19 O 498.905,46 118.232,07 684.246,62 177.995,50 1.479.379,65 - 515.691,59 963.688,06<br />
69 CARONNO PERTUSELLA - VIA ROM A, 190 O 1.094.866,17 248.746,12 495.118,52 273.819,79 2.112.550,60 - 651.683,60 1.460.867,00<br />
70 CARVICO - VIA EUROPA UNITA , 3 O 1.108.279,50 521.112,70 - 115.687,56 1.745.079,76 - 546.344,36 1.198.735,40<br />
71 CASAZZA - STR.NAZ.DEL TONALE,92 O 225.854,46 666.007,04 - 112.689,37 1.004.550,87 - 574.693,26 429.857,61<br />
72 CASORATE SEM PIONE - VIA M ILANO, 17 O 619.750,32 150.867,79 66.688,21 123.011,05 960.317,37 - 366.229,79 594.087,58<br />
73 CASSANO D ADDA - VIA M ILANO, 14 O 1.259.734,57 1.083.226,98 - 398.243,13 2.741.204,68 - 1.429.304,37 1.311.900,31<br />
74 CASSINA DE PECCHI - VIA CARDUCCI, 74 O 3.873,43 6.774,52 - 3.397,03 14.044,98 - 7.799,04 6.245,94<br />
75 CASSINA DE PECCHI - VIA M ATTEOTTI, 2/4 O 799.800,49 587.516,32 - 5.038,89 1.392.355,70 - 432.172,87 960.182,83<br />
76 CASTEL M ELLA - VIA QUINZANO, 80/A O 660.764,26 - - 172.730,44 833.494,70 - 179.017,23 654.477,47<br />
77 CASTIONE D.PRESOLANA - VIA M ANZONI, 20 O 79.418,46 365.664,10 - 67.983,08 513.065,64 - 340.819,78 172.245,86<br />
78 CASTRONNO - VIA ROM A, 51 O 454.577,31 801.314,36 - 334.085,29 1.589.976,96 - 753.123,76 836.853,20<br />
79 CENE - VIA V.VENETO, 9 O 232.416,70 738.941,38 - 160.830,28 1.132.188,36 - 531.354,52 600.833,84<br />
80 CERM ENATE - VIA M ATTEOTTI, 28 O 1.446.975,00 1.138.872,31 - 312.228,24 2.898.075,55 - 1.308.920,53 1.589.155,02<br />
81 CESANO M ADERNO - VIA CONCILIAZIONE, 28 O 813.616,21 91.949,55 - - 294.942,43<br />
610.623,33 - 87.437,24 523.186,09<br />
82 CHIARI - VIA BETTOLINI, 6 O 1.266.771,26 1.885.202,58 - 490.849,50 3.642.823,34 - 1.133.606,09 2.509.217,25<br />
83 CHIUDUNO - VIA C.BATTISTI, 1 O 360.882,78 519.549,12 - 175.302,89 1.055.734,79 - 137.242,00<br />
244.611,86 673.880,93<br />
84 CINISELLO BALSAM O - VIA LIBERTA', 68 O 445.533,64 35.806,58 - 33.290,05 514.630,27 - 74.932,69 439.697,58<br />
85 CISANO BERGAM ASCO - VIA PASCOLI, 1 O 200.764,42 1.124.656,71 - 192.632,03 1.518.053,16 - 875.559,58 642.493,58<br />
86 CISERANO - CORSO EUROPA, 17 O 423.540,94 861.183,93 - 185.339,67 1.470.064,54 - 496.923,09 973.141,45<br />
87 CISLAGO - VIA IV NOVEM BRE, 250 O 794.801,88 28.545,63 500.822,70 - 187.600,37 1.136.569,84 - 313.543,73 823.026,11<br />
88 CITTIGLIO - VIA VALCUVIA, 19 O 175.448,37 501.776,79 - 119.189,29 796.414,45 - 331.268,69 465.145,76<br />
89 CLUSONE - VIA VERDI, 3 O 812.026,26 1.271.882,54 - 256.029,95 2.339.938,75 - 1.173.500,02 1.166.438,73<br />
90 CODOGNO - VIA VITTORIO EM ANUELE, 35 O 603.971,83 1.514.031,18 - 479.316,49 2.597.319,50 - 1.376.644,84 1.220.674,66<br />
91 COLERE - VIA GIOVANNI XXIII, 33 O 23.218,93 210.357,59 - 40.918,81 274.495,33 - 154.810,36 119.684,97<br />
92 COM ERIO - VIA AL LAGO, 2 O 1.243.671,64 675.712,57 - 229.671,70 2.149.055,91 - 771.960,17 1.377.095,74<br />
93 COM O - VIA ALDO M ORO, 46/48 O 758.223,64 - - 320.220,71 1.078.444,35 - 259.190,53 819.253,82<br />
94 COM O - VIA CATTANEO, 3 O 465.143,48 2.441.785,01 - - 247.088,45 2.659.840,04 - 1.203.818,55 1.456.021,49<br />
95 COM O - VIA GIOVIO, 4 O 2.089.108,61 5.153.912,76 780.921,57 869.287,55 8.893.230,49 - 3.507.739,44 5.385.491,05<br />
96 COM UN NUOVO - VIA C.BATTISTI, 3 O 182.746,11 47.517,62 - 36.807,08 267.070,81 - 70.667,26 196.403,55<br />
97 CONCESIO - VIALE EUROPA, 183 O 1.995.092,87 582.587,76 - 289.026,46 2.866.707,09 - 1.591.438,43 1.275.268,66<br />
98 CORNAREDO - PIAZZA LIBERTA', 62 O 856.302,43 17.667,41 - - 375.797,67<br />
498.172,17 - 80.275,01 417.897,16<br />
99 CORNATE D ADDA - VIA CIRCONVALLAZIONE, 1 O 362.726,51 109.589,60 - - 9.234,77<br />
463.081,34 - 168.776,31 294.305,03<br />
100 CORSICO - VIA LIBERAZIONE, 26/28 O 1.867.095,05 141.817,86 - 184.205,86 2.193.118,77 - 560.815,93 1.632.302,84<br />
101 COSSATO - VIA PAJETTA O 58.454,65 179.362,97 - 53.640,83 291.458,45 - 49.126,20 242.332,25<br />
102 COSTA VOLPINO - VIA NAZIONALE, 150 O 266.835,41 997.084,61 - 191.717,85 1.455.637,87 - 697.216,97 758.420,90<br />
103 CREM ONA - VIA GIORDANO, 9/21 O 715.645,83 33.603,51 - 234.382,24 983.631,58 - 250.825,20 732.806,38<br />
104 CUNARDO - VIA LUINESE, 1 O 1.019.742,55 376.413,10 - 299.283,76 1.695.439,41 - 876.937,88 818.501,53<br />
105 CURNO - LARGO VITTORIA, 31 O 579.611,04 85.343,51 - 63.323,21 728.277,76 - 199.578,26 528.699,50<br />
106 CUVEGLIO - VIA BATTAGLIA SAN M ARTINO, 50 O 810.197,92 618.677,66 - - 191.881,54 1.236.994,04 - 669.384,34 567.609,70<br />
107 CUVIO - VIA M AGGI, 20 O 342.956,37 18.785,28 249.427,23 43.584,53 654.753,41 - 216.571,62 438.181,79<br />
108 DALM INE - VIA BUTTARO, 2 O 2.401.584,43 1.216.231,31 - 254.025,96 3.871.841,70 - 1.394.230,58 2.477.611,12<br />
109 DARFO BOARIO TERM E - PIAZZA LORENZINI, 6 O 626.383,13 1.038.400,90 - 169.024,72 1.833.808,75 - 1.100.254,69 733.554,06<br />
110 DESIO - VIA M ATTEOTTI, 10 O 3.950.832,89 408.994,01 - 409.845,70 4.769.672,60 - 1.810.564,80 2.959.107,80<br />
111 ERBA - VIA LEOPARDI, 7/E O 1.483.898,86 186.267,51 - 219.792,83 1.889.959,20 - 735.898,73 1.154.060,47<br />
112 FAGNANO OLONA - PIAZZA CAVOUR, 11 O 129.505,30 222.872,16 757.263,46 121.805,53 1.231.446,45 - 736.730,67 494.715,78<br />
113 FERNO - PIAZZA DANTE, 7 O 1.756.904,10 230.927,71 92.520,46 67.171,24 2.147.523,51 - 760.879,63<br />
530.391,02 856.252,86<br />
114 FONTANELLA - VIA CAVOUR, 156 O 2.101,90 - - 502.170,54 504.272,44 - 138.550,74 365.721,70<br />
115 FORM IGINE - VIA GIARDINI SUD, 22 O 1.874.321,37 - - - 1.874.321,37 - - 1.874.321,37<br />
116 GALLARATE - VIA M ANZONI, 12 O 2.540.102,37 1.650.990,74 1.347.482,53 530.477,20 6.069.052,84 - 2.090.495,01 3.978.557,83<br />
117 GALLARATE - VIA M ARSALA, 34 O 422.744,00 59.140,47 19.507,33 86.736,48 588.128,28 - 244.543,14 343.585,14<br />
118 GALLARATE - VIA VARESE, 7A O 342.012,52 97.202,49 298.506,02 115.441,18 853.162,21 - 244.434,14 608.728,07<br />
119 GANDINO - VIA BATTISTI, 5 O 821.455,12 885.805,14 - 242.201,51 1.949.461,77 - 969.269,01 980.192,76<br />
120 GARBAGNATE M ILANESE - J.F. KENNEDY, 2 O 1.309.197,16 - - - 1.309.197,16 - 30.230,88 1.278.966,28<br />
(continued)<br />
744 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Lo catio n<br />
Owned<br />
/ Leased Investments<br />
R evaluat io ns<br />
by law<br />
R evaluat io ns<br />
by mergers<br />
R evaluatio ns<br />
o n F .T .A . Gro ss values<br />
Ot her<br />
C hanges A ccum. D epr.<br />
C arrying<br />
amo unts<br />
121 GAVIRATE - P.ZZA LIBERTA' O 261.618,20 1.413.940,19 991.150,72 294.363,92 2.961.073,03 - 1.228.886,96 1.732.186,07<br />
122 GAZZADA SCHIANNO - VIA ROM A, 47/B O 832.764,66 719.147,70 178.009,15 309.902,21 2.039.823,72 - 923.311,78 1.116.511,94<br />
123 GAZZANIGA - VIA M ARCONI, 14 O 820.947,13 451.394,50 435.364,90 156.404,94 1.864.111,47 - 1.733.795,10 130.316,37<br />
124 GENOVA - VIA FIESCHI, 11 O 1.862.428,48 4.261.950,88 - - 423.268,23<br />
5.701.111,13 - 2.751.074,97 2.950.036,16<br />
125 GENOVA - VIA M ERANO, 1/A NERO O 91.698,79 341.265,06 - 97.097,39 530.061,24 - 73.366,30 456.694,94<br />
126 GORGONZOLA (M I) - P.ZZA CAGNOLA O 1.453.314,91 - - - 1.453.314,91 - 42.800,21 1.410.514,70<br />
127 GORLA M AGGIORE - VIA G.VERDI, 2 O 1.537.138,82 - - - 309.773,26 1.227.365,56 - 264.373,25 962.992,31<br />
128 GORLAGO - PIAZZA GREGIS, 12 O 295.042,75 456.798,52 - 114.232,45 866.073,72 - 267.428,29 598.645,43<br />
129 GRASSOBBIO - VIALE EUROPA, 8/B O 40.681,09 281.919,10 - 69.128,64 391.728,83 - 70.896,90 320.831,93<br />
130 GRUM ELLO DEL M ONTE - VIA M ARTIRI DELLA L O 261.723,81 923.153,28 - 195.143,44 1.380.020,53 - 458.279,15 921.741,38<br />
131 INDUNO OLONA - VIA PORRO, 46 O 13.093,80 672.530,58 99.900,50 103.501,46 889.026,34 - 411.146,90 477.879,44<br />
132 ISPRA - VIA M AZZINI, 5 O 586.563,13 185.352,30 394.460,51 89.054,07 1.255.430,01 - 450.251,53 805.178,48<br />
133 JERAGO CON ORAGO - VIA M ATTEOTTI, 15 O 1.539.942,68 30.664,33 224.715,26 10.742,79 1.806.065,06 - 186.206,36<br />
21.838,58 1.598.020,12<br />
134 LAINATE - VIA GARZOLI, 17/19 O 213.013,71 729.733,26 - 93.378,46 1.036.125,43 - 405.240,46 630.884,97<br />
135 LAVENA PONTE TRESA - PIAZZA GRAM SCI, 8 O 479.992,49 686.229,36 - 243.450,02 1.409.671,87 - 1.225.630,63 184.041,24<br />
136 LAVENO-M OM BELLO - VIA LABIENA, 51/53 O 214.094,93 359.912,42 335.418,52 116.849,91 1.026.275,78 - 482.140,55 544.135,23<br />
137 LECCO - CORSO M ATTEOTTI, 3 O 6.206.082,91 4.274.614,11 - - 2.777.915,51 7.702.781,51 - 2.826.028,24 4.876.753,27<br />
138 LEFFE - VIA G. M OSCONI, 1 O 842.808,10 1.218.140,03 - 229.772,41 2.290.720,54 - 892.466,03 1.398.254,51<br />
139 LEGGIUNO - VIA BERNARDONI, 9 O 113.091,98 382.146,88 - 144.671,95 639.910,81 - 364.298,72 275.612,09<br />
140 LEGNANO - VIA TOSELLI, 68 O 49.184,24 6.097,36 - 9.805,63 65.087,23 - 13.421,15 51.666,08<br />
141 LEGNANO - VIA TOSELLI, 74 O 1.547.863,61 - 92.504,76 173.656,45 1.814.024,82 - 602.682,06 1.211.342,76<br />
142 LODI - VIA INCORONATA, 12 O 657.248,12 2.503.863,52 - 704.483,27 3.865.594,91 - 1.028.730,79 2.836.864,12<br />
143 LODI - VIALE DALM AZIA O 14.107,33 11.551,50 - - 2.658,05<br />
23.000,78 - 5.194,59 17.806,19<br />
144 LONATE POZZOLO - PIAZZA M AZZINI, 2 O 580.176,48 102.307,16 331.453,68 122.877,00 1.136.814,32 - 357.460,70 779.353,62<br />
145 LOVERE - VIA TADINI, 30 O 703.360,10 873.401,42 - 269.282,57 1.846.044,09 - 881.758,72 964.285,37<br />
146 LUINO - VIA PIERO CHIARA, 7/9 O 667.026,97 6.827.496,32 - 699.267,74 8.193.791,03 - 4.331.157,20 3.862.633,83<br />
147 LUINO - VIA V.VENETO, 6/A-B O 694.194,68 1.561.186,53 209.525,88 132.928,82 2.597.835,91 - 1.024.155,36 1.573.680,55<br />
148 LURATE CACCIVIO - VIA VARESINA, 88 O 354.367,67 427.340,22 - 169.535,24 951.243,13 - 335.675,25 615.567,88<br />
149 M ADONE - VIA PAPA GIOVANNI XXIII, 44 O 192.479,53 782.374,32 - 133.981,12 1.108.834,97 - 501.271,29 607.563,68<br />
150 M ALNATE - P.ZZA REPUBBLICA / ANG. VIA GA O 2.086.283,40 - - - 2.086.283,40 - 187.665,92<br />
104.322,90 1.794.294,58<br />
151 M ANERBIO - VIA D.ALIGHIERI, 5 O 922.839,19 1.258.583,13 - 276.298,29 2.457.720,61 - 1.250.859,17 1.206.861,44<br />
152 M ARCHIROLO - PIAZZA BORASIO, 12 O 189.792,52 155.883,17 - 52.498,93 398.174,62 - 156.316,04 241.858,58<br />
153 M ARIANO COM ENSE - CORSO BRIANZA, 20 O 343.167,69 168.668,17 94.789,87 109.942,77 716.568,50 - 230.265,35 486.303,15<br />
154 M ARNATE - VIA DIAZ ANGOLO VIA GENOVA O 541.275,04 481.053,04 476.251,61 231.863,71 1.730.443,40 - 569.532,12 1.160.911,28<br />
155 M ARTINENGO - VIA PINETTI, 20 O 757.998,73 409.405,14 - 221.210,88 1.388.614,75 - 343.409,08 1.045.205,67<br />
M ESTRE - VENEZIA - VIA CA' M ARCELLO/ VIA<br />
156 CAPUCCINA O 17.306,75 350.693,25 - - 368.000,00 30.840,02 62.137,72 336.702,30<br />
157 M ILANO - CORSO ITALIA, 20-22 O 4.359.275,73 9.549.009,54 24.273,47 - 2.756.830,82 11.175.727,92 - 2.608.268,53 8.567.459,39<br />
158 M ILANO - P.ZZA 5 GIORNATE, 1 O 1.831.351,82 2.752.151,53 - - 1.054.390,58 3.529.112,77 - 816.634,52 2.712.478,25<br />
159 M ILANO - P.ZZA TOM M ASEO O 70.128,45 - - 57.699,20 127.827,65 - 24.098,54 103.729,11<br />
160 M ILANO - PIAZZA PIOLA, 8 O 822.473,03 - - - 219.305,77<br />
603.167,26 - 74.984,03 528.183,23<br />
161 M ILANO - PIAZZALE FRATELLI ZAVATTARI, 12 L 29.714.753,80 - - - 29.714.753,80 - 78.610,46 29.636.143,34<br />
162 M ILANO - VIA BIONDI, 1 O 513.505,96 306.102,04 1.446.378,73 - 117.038,27 2.148.948,46 82.710,40 504.282,31 1.727.376,55<br />
163 M ILANO - VIA BOCCACCIO, 2 O 3.226.563,30 10.309.603,00 - 6.443.734,30 19.979.900,60 - 2.484.075,01 17.495.825,59<br />
164 M ILANO - VIA BOCCHETTO, 13/15 O 619.700,52 5.932.491,44 - - 2.206.788,22 4.345.403,74 - 611.479,73 3.733.924,01<br />
165 M ILANO - VIA BORGOGNA, 2/4 O 1.207.062,89 5.160.001,56 - 1.139.105,37 7.506.169,82 - 1.350.932,68 6.155.237,14<br />
166 M ILANO - VIA BUONARROTI, 22 O 2.155.862,34 7.621.838,92 - 23.105,47 9.800.806,73 - 3.258.687,03 6.542.119,70<br />
167 M ILANO - VIA CIRO M ENOTTI, 21 O 345.373,51 1.260.180,31 1.248.828,77 - 649.000,47 2.205.382,12 - 484.176,22 1.721.205,90<br />
168 M ILANO - VIA DELLA M OSCOVA, 38 O 829,33 787.179,44 - - 167.541,83<br />
620.466,94 - 90.627,35 529.839,59<br />
169 M ILANO - VIA DELLA M OSCOVA, 40/1 O 744.949,97 - - 446.501,39 1.191.451,36 - 106.006,99 1.085.444,37<br />
170 M ILANO - VIA G.B. GRASSI, 89 O 1.335.715,77 1.003.435,40 - 357.837,60 2.696.988,77 - 1.056.200,45 1.640.788,32<br />
171 M ILANO - VIA LONDONIO 29 O 543,10 24.957,94 - - 25.501,04 24.351,71 3.834,05 46.018,70<br />
172 M ILANO - VIA LOVANIO, 5/A O 1.041.947,88 1.104.882,62 - 25.364,28 2.172.194,78 - 185.622,33 1.986.572,45<br />
173 M ILANO - VIA M ANZONI, 7 O 18.244.046,86 7.663.576,59 16.408.125,98 2.768.353,06 45.084.102,49 - 4.475.280,75 40.608.821,74<br />
174 M ILANO - VIA M ONTE SANTO, 2 O 433.495,98 1.348.271,97 - 155.902,36 1.937.670,31 - 124.897,32 1.812.772,99<br />
175 M ILANO - VIA PADOVA, 97 O 1.475.906,60 - - 737,27 1.476.643,87 - 139.144,03<br />
176.645,77 1.160.854,07<br />
176 M ILANO - VIA ROSELLINI, 2 O 899.366,97 1.457.082,17 - 577.230,31 2.933.679,45 - 845.407,54 2.088.271,91<br />
177 M ILANO - VIA SAFFI, 6/5 ANG. VIA M ONTI O 5.245.633,96 94.749,53 - - 44.947,36 5.295.436,13 - 702.090,39 4.593.345,74<br />
178 M ILANO - VIA SECCHI, 2 O 2.255.375,98 166.836,60 - 750.318,11 3.172.530,69 - 589.197,09 2.583.333,60<br />
179 M ILANO - VIA SOLARI, 3 O 785.734,84 - - 246.879,05 1.032.613,89 - 113.975,47 918.638,42<br />
180 M ILANO - VIA SOLFERINO, 23 O 1.577.477,02 8.885.780,54 - 278.222,78 10.741.480,34 - 1.909.252,53 8.832.227,81<br />
(continued)<br />
745 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Lo cat io n<br />
Owned<br />
/ Leased Invest ment s<br />
R evaluat io ns<br />
by law<br />
R evaluat io ns<br />
by mergers<br />
R evaluatio ns<br />
o n F .T .A . Gro ss value s<br />
Ot her<br />
C hanges A ccum. D epr.<br />
C arrying<br />
amo unt s<br />
181 M ILANO - VIA STARO, 1 O 130.223,14 325.338,70 - - 455.561,84 78.550,03 165.710,33 368.401,54<br />
182 M ILANO - VIA ZURETTI O 5.637,45 100.385,65 - - 106.023,10 42.316,65 31.302,38 117.037,37<br />
183 M ONCALIERI - STRADA VILLASTELLONE, 2 O 727.294,60 55.323,18 226.056,58 - 151.256,26<br />
857.418,10 - 295.721,82 561.696,28<br />
184 M ONZA - PIAZZA GIUSEPPE CAM BIAGHI, 1 O 3.001.925,00 - - - 924.667,17 2.077.257,83 - 334.193,25 1.743.064,58<br />
185 M ONZA - VIA BORGAZZI, 83 O 4.821.985,97 3.588.165,85 - 220.444,43 8.630.596,25 - 3.417.707,09 5.212.889,16<br />
186 M ORNAGO - VIA CELLINI - ANGOLO VIA CARUG O 126.637,16 192.786,22 434.080,23 99.704,06 853.207,67 - 461.212,49 391.995,18<br />
187 NAPOLI - VIA SANTA BRIGIDA, 62/63 L 1.860.332,93 - - 69.102,26 1.929.435,19 - 178.335,59 1.751.099,60<br />
188 NEM BRO - PIAZZA DELLA LIBERTA' O 2.134.739,10 4.450,27 - 331.939,46 2.471.128,83 - 914.853,52 1.556.275,31<br />
189 NOVA M ILANESE - VIA BRODOLINI, 1 O 966.654,63 500.577,80 730.980,88 527.419,10 2.725.632,41 - 655.211,07 2.070.421,34<br />
190 NOVARA - CORSO DELLA VITTORIA, 1 O 2.216.624,18 688.842,81 - - 295.255,54 2.610.211,45 - 884.904,72 1.725.306,73<br />
191 NOVARA - LARGO DON M INZONI, 1 O 3.194.684,75 93.250,95 152.046,45 - 203.461,37 3.236.520,78 - 925.098,65 2.311.422,13<br />
192 NOVARA - VIA SOLFERINO O 173.529,51 23.971,12 - - 66.836,42<br />
130.664,21 - 28.300,21 102.364,00<br />
193 OLGIATE OLONA - VIA M AZZINI, 56 O 325.724,31 236.897,41 206.371,83 - 69.769,81 699.223,74 - 236.549,18 462.674,56<br />
194 ORIGGIO - VIA REPUBBLICA 10 O 447.740,98 47.520,35 - 71.405,65 566.666,98 - 211.481,58 355.185,40<br />
195 ORZINUOVI - P.ZA V.EM ANUELE, 31/33 O 681.328,53 307.827,14 - 111.612,08 1.100.767,75 - 291.653,23 809.114,52<br />
196 OSIO SOTTO - VIA CAVOUR, 2 O 788.885,09 755.038,69 - 266.698,76 1.810.622,54 - 642.592,73 1.168.029,81<br />
197 OSPITALETTO - VIA M .D.LIBERTA', 27 O 2.085.732,69 768.771,35 - 326.047,27 3.180.551,31 - 1.527.694,11 1.652.857,20<br />
198 PALADINA - VIA IV NOVEM BRE, 13 O 185.966,52 408.403,74 - 73.903,02 668.273,28 - 287.624,14 380.649,14<br />
199 PALAZZOLO SULL OGLIO - PIAZZA ROM A, 1 O 350.073,67 1.388.091,49 - 180.356,07 1.918.521,23 - 824.027,94 1.094.493,29<br />
200 PAVIA - PIAZZA DUOM O, 1 O 446.217,06 588.387,60 - 553.293,40 1.587.898,06 - 468.189,45 1.119.708,61<br />
201 PAVIA - VIA M ONTEBELLO DELLA BATTAGLIA, O 444.869,33 955.931,86 - 1.038.088,80 2.438.889,99 - 1.240.378,55 1.198.511,44<br />
202 PERUGIA - VIA DEI FILOSOFI, 36 O 151.589,80 148.860,67 - 6.965,21 307.415,68 - 38.724,09 268.691,59<br />
203 PIACENZA - VIA VERDI, 48 O 3.537.593,48 1.730.724,78 - 649.858,93 5.918.177,19 - 2.617.358,33 3.300.818,86<br />
204 PIAZZA BREM BANA - VIA BELOTTI, 10 O 333.259,42 241.400,70 - 75.771,40 650.431,52 - 338.287,84 312.143,68<br />
205 POGGIO RUSCO - VIA TRENTO E TRIESTE, 9 O 1.772.102,39 1.314.622,43 1.070.389,61 384.094,82 4.541.209,25 - 1.840.337,32 2.700.871,93<br />
206 PONTE NOSSA - VIA G. FRUA, 24 O 680.063,69 393.984,57 - 132.516,89 1.206.565,15 - 674.359,11 532.206,04<br />
207 PONTE SAN PIETRO - P.ZZA SS.PIETRO E PAO O 1.405.541,59 1.561.117,33 - 345.879,38 3.312.538,30 - 1.564.453,89 1.748.084,41<br />
208 PONTERANICA - VIA PONTESECCO, 32 O 340.825,91 319.110,88 - 100.488,64 760.425,43 - 213.733,46 546.691,97<br />
209 PONTIDA - VIA LEGA LOM BARDA SNC O 701.416,00 - - - 701.416,00 - 24.975,05 676.440,95<br />
210 PORTO CERESIO - VIA ROM A, 2 O 1.014.941,17 161.518,28 - 180.677,11 1.357.136,56 - 606.844,35<br />
108.939,77 641.352,44<br />
211 RANICA - PIAZZA EUROPA, 2 O 53.452,14 726.162,49 - 126.700,02 906.314,65 - 456.905,64 449.409,01<br />
212 RAPALLO - VIA DIAZ, 6 O 45.351,56 522.555,39 - 135.054,40 702.961,35 - 92.386,54 610.574,81<br />
213 REZZATO - VIA EUROPA, 5 O 58.757,17 572.633,99 - 139.925,69 771.316,85 - 141.171,25 630.145,60<br />
214 ROM A - CORSO VITTORIO EM ANUELE, 25/27 O 1.380.365,59 1.914.853,11 - - 378.063,56 2.917.155,14 - 502.004,44 2.415.150,70<br />
215 ROM A - VIA DEI CROCIFERI, 44 O 12.000.289,14 18.113.857,01 - 3.863.380,45 33.977.526,60 - 1.852.990,34 32.124.536,26<br />
216 ROM A - VIALE DELLE PROVINCIE, 34/36 O 1.391.883,25 - - - 356.529,88 1.035.353,37 - 61.413,02 973.940,35<br />
217 ROM ANO DI LOM BARDIA - VIA TADINI, 2 O 666.927,28 573.922,63 - 192.184,07 1.433.033,98 - 415.705,78 1.017.328,20<br />
218 ROSASCO - VIA ROM A, 4 O 42.352,68 293.806,91 - 467.297,63 803.457,22 - 462.528,40 340.928,82<br />
219 ROVELLASCA - VIA VOLTA, 1 O 2.207,70 - - 638.358,20 640.565,90 - 181.884,58 458.681,32<br />
220 ROVETTA - VIA TOSI, 13 O 828.169,69 443.574,39 - 76.516,13 1.348.260,21 - 583.739,73 764.520,48<br />
221 ROZZANO - P.ZZA BERLINGUER, 6 O 874.375,66 - - 281.840,27 1.156.215,93 - 152.271,98 1.003.943,95<br />
222 ROZZANO - VIALE LOM BARDIA, 17 L 838.689,82 - - - 334.236,66<br />
504.453,16 - 69.541,05 434.912,11<br />
223 SAN GIOVANNI BIANCO - VIA M ARTIRI DI CAN O 159.471,15 541.085,49 - 125.156,92 825.713,56 - 258.631,36 567.082,20<br />
224 SAN GIULIANO M ILANESE - VIA F.LLI CERVI, O 687.797,88 - - - 286.795,29<br />
401.002,59 - 58.710,68 342.291,91<br />
225 SAN LAZZARO DI SAVENA - VIA EM ILIA, 208 O 1.078.461,33 - - - 218.375,97<br />
860.085,36 - 120.953,76 739.131,60<br />
226 SAN PAOLO - VIA M AZZINI, 62 O 689.144,08 208.477,41 - 40.835,71 938.457,20 - 295.448,06<br />
251.888,54 391.120,60<br />
227 SAN PELLEGRINO TERM E - VIA SAN CARLO, 3 O 306.129,17 310.504,84 - 107.525,92 724.159,93 - 201.993,53 522.166,40<br />
228 SAN ZENO NAVIGLIO - VIA TITO SPERI, 1 O 579.652,34 1.020.574,43 - 260.257,44 1.860.484,21 - 885.672,55 974.811,66<br />
229 SANT OM OBONO TERM E - VIA ALLE FONTI, 8 O 94.011,90 405.402,75 - 83.480,52 582.895,17 - 268.208,73 314.686,44<br />
230 SANTENA - VIA CAVOUR, 43 O 605.388,24 194.215,54 110.053,06 27.222,83 936.879,67 - 303.872,84 633.006,83<br />
231 SARNICO - PIAZZA UM BERTO I, 1 O 1.734.688,03 1.600.442,38 - - 265.926,35 3.069.204,06 - 744.839,38 2.324.364,68<br />
232 SARONNO - VIA PIETRO M ICCA, 10 O 3.080.462,42 1.991.266,58 1.614.741,58 628.253,71 7.314.724,29 - 2.752.564,91 4.562.159,38<br />
233 SARONNO - VICOLO DEL CALDO, 30 O 85.747,78 28.842,22 - 19.484,48 134.074,48 - 31.523,03 102.551,45<br />
234 SCANZOROSCIATE - VIA ROM A, 27 O 768.669,68 448.290,73 - 254.181,55 1.471.141,96 - 296.050,04 1.175.091,92<br />
235 SCHILPARIO - VIA TORRI, 8 O 138.116,82 208.828,19 - 46.931,33 393.876,34 - 204.378,39 189.497,95<br />
236 SERIATE - VIALE ITALIA, 24 O 1.177.828,79 821.983,40 - 267.309,26 2.267.121,45 - 686.166,35 1.580.955,10<br />
237 SESTO CALENDE - VIA XX SETTEM BRE, 35 O 444.940,53 270.516,58 420.566,91 108.172,50 1.244.196,52 - 572.593,83 671.602,69<br />
238 SOLARO - VIA M AZZINI, 66 O 54.878,25 - - 712.670,75 767.549,00 - 107.062,68 660.486,32<br />
239 SOLBIATE ARNO - VIA A.AGNELLI, 7 O 683.021,85 528.794,06 227.093,53 190.498,99 1.629.408,43 - 654.369,80 975.038,63<br />
240 SONCINO - VIA IV NOVEM BRE, 25 O 736.252,57 588.843,73 33.053,24 246.146,92 1.604.296,46 - 600.512,57 1.003.783,89<br />
(continued)<br />
746 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Lo catio n<br />
Owned<br />
/ Leased Invest ments<br />
R evaluatio ns<br />
by law<br />
R evaluatio ns<br />
by mergers<br />
R evaluat io ns<br />
o n F .T .A . Gro ss values<br />
Other<br />
C hanges A ccum . D epr.<br />
C arrying<br />
amo unts<br />
241 SOVERE - VIA BARONI, 5 O 71.367,17 249.196,76 - 49.531,64 370.095,57 - 114.235,41 255.860,16<br />
242 SPIRANO - VIA DANTE ALIGHIERI O 755.239,07 716.704,44 - 212.846,87 1.684.790,38 - 730.909,82 953.880,56<br />
243 STEZZANO - VIA BERGAM O, 1 O 24.087,68 1.008.464,25 - 159.854,99 1.192.406,92 - 363.946,21 828.460,71<br />
244 SUISIO - VIA CARABELLO POM A, 31 O 406.362,37 - - - 102.674,03<br />
303.688,34 - 66.851,64 236.836,70<br />
245 TALEGGIO - VIA ROM A, 63 O 112.461,72 64.696,88 - 33.085,92 210.244,52 - 93.021,23 117.223,29<br />
246 TAVERNOLA BERGAM ASCA - VIA ROM A, 12 O 157.047,45 253.070,33 - 70.647,08 480.764,86 - 168.595,65 312.169,21<br />
247 TELGATE - VIA M ORENGHI, 17/ANG. VIA ARIC O 4.364,00 - - 637.617,50 641.981,50 - 169.723,08 472.258,42<br />
248 TORINO - P.ZZA GRAN M ADRE DI DIO, 12/A O 1.178.105,85 - 167.214,92 - 33.252,54 1.312.068,23 - 236.695,49 1.075.372,74<br />
249 TORINO - PIAZZA ADRIANO, 5 O 611.364,92 357.556,91 497.391,39 - 8.031,06 1.458.282,16 - 737.732,98 720.549,18<br />
250 TORINO - VIA VITTORIO ALFIERI, 17 O 3.633.729,18 2.588.920,46 1.131.012,86 - 954.050,68 6.399.611,82 - 1.197.776,90 5.201.834,92<br />
251 TORREVECCHIA PIA - VIA M OLINO, 9 O 100.297,94 89.849,31 - 61.796,04 251.943,29 - 80.293,71 171.649,58<br />
252 TRADATE - VIA XXV APRILE, 1 O 2.192.198,25 762.038,01 797.883,38 283.164,96 4.035.284,60 - 1.289.966,56 2.745.318,04<br />
253 TRAVEDONA-M ONATE - VIA ROM A, 1 O 507.774,94 356.284,64 - 117.739,77 981.799,35 - 130.584,00<br />
261.332,41 589.882,94<br />
254 TRESCORE BALNEARIO - VIA LOCATELLI, 45 O 1.407.196,75 467.598,45 - 95.299,34 1.970.094,54 - 733.751,62 1.236.342,92<br />
255 TREVIGLIO - VIALE FILAGNO, 11 O 1.469.373,83 2.522.977,97 - 466.849,13 4.459.200,93 - 1.445.079,75 3.014.121,18<br />
256 TREZZANO ROSA - VIA RAFFAELLO SANZIO, 13 O 256.033,85 - - 76.426,67 332.460,52 - 90.639,04 241.821,48<br />
257 TREZZO SULL ADDA - VIA A.SALA, 11 O 934.031,88 874.765,54 - 261.005,50 2.069.802,92 - 687.207,29 1.382.595,63<br />
258 UBOLDO - VIA R.SANZIO, 46 O 700.119,32 536.698,70 66.779,14 19.028,67 1.322.625,83 - 534.190,08 788.435,75<br />
259 URGNANO - VIA M ATTEOTTI, 157 O 22.637,86 372.725,77 - 85.864,76 481.228,39 - 68.934,47 412.293,92<br />
260 VARANO BORGHI - VIA V.VENETO, 6 O 853.088,44 91.169,61 372.728,08 97.095,41 1.414.081,54 - 169.070,71<br />
350.413,38 894.597,45<br />
261 VARESE - P.ZZA IV NOVEM BRE, 1 O 672.607,28 178.911,63 512.895,22 86.340,01 1.450.754,14 - 532.865,16 917.888,98<br />
262 VARESE - PIAZZA BATTISTERO, 2 O 3.240.677,41 6.202.412,32 - 2.683.802,46 12.126.892,19 - 4.432.621,75 7.694.270,44<br />
263 VARESE - VIA SAN M ICHELE, 6A O 170.613,65 29.531,55 31.849,23 6.314,07 238.308,50 - 84.838,77 153.469,73<br />
264 VARESE - VIA V.VENETO, 2 O 10.548.887,36 9.982.212,99 7.526.419,21 657.192,43 28.714.711,99 26.972,25 9.446.855,21 19.294.829,03<br />
265 VARESE - VIA VIRGILIO, 27 O 243.494,88 27.727,21 288.933,92 44.529,15 604.685,16 - 180.577,32 424.107,84<br />
266 VARESE - VIALE BORRI, 155 O 534.724,13 13.123,48 513.063,75 57.651,89 1.118.563,25 - 350.370,10 768.193,15<br />
267 VENEGONO INFERIORE - VIA M AUCERI, 16 O 197.216,47 109.441,44 370.764,64 87.417,85 764.840,40 - 426.616,84 338.223,56<br />
268 VERDELLO - VIA CASTELLO, 31 O 918.201,39 238.867,12 - 37.285,63 1.194.354,14 - 307.792,10 886.562,04<br />
269 VERONA - VIA CITTA' DI NIM ES, 4/8 O 1.342.240,33 - - 205.281,93 1.547.522,26 - 254.769,22 1.292.753,04<br />
270 VERTOVA - VIA S.ROCCO, 37 O 322.756,39 592.575,77 - 106.370,89 1.021.703,05 - 386.445,35 635.257,70<br />
271 VESTONE (Terreno) O 0,01 - - - 0,01 209.999,99 - 210.000,00<br />
272 VIGEVANO - VIA DANTE, 39 O 546.572,16 3.767.489,65 - 1.301.707,94 5.615.769,75 - 2.317.615,85 3.298.153,90<br />
273 VIGEVANO - VIA DE AM ICIS, 5 O 85.401,89 547.550,89 - 156.823,93 789.776,71 - 393.505,38 396.271,33<br />
274 VIGEVANO - VIA M ADONNA DEGLI ANGELI, 2 O 17.991,11 417.889,31 - 27.743,58 463.624,00 - 186.292,14 277.331,86<br />
275 VIGEVANO - VICOLO BARBAVARA, 5/7 O 1.127,43 108.977,93 - 47.002,63 157.107,99 - 100.900,74 56.207,25<br />
276 VIGGIU - VIA CASTAGNA, 1 O 218.661,61 102.838,76 317.479,20 64.093,53 703.073,10 - 600.140,82 102.932,28<br />
277 VILLA D ADDA - VIA FOSSA, 8 O 347.286,88 113.881,51 - 70.314,67 531.483,06 - 183.629,35 347.853,71<br />
278 VILLA POM A - PIAZZA M AZZALI, 7 O 590.531,45 - - - 62.406,01<br />
528.125,44 - 75.377,75 452.747,69<br />
279 VILLONGO - VIA BELLINI, 20 O 733.939,16 443.868,55 - 173.443,41 1.351.251,12 - 387.144,69 964.106,43<br />
280 VILM INORE DI SCALVE - VIA PAPA GIOVANNI O 13.236,10 237.793,28 - 43.752,95 294.782,33 - 182.536,09 112.246,24<br />
281 VIM ERCATE - VIA B. CREM AGNANI, 20/A O 1.593.586,57 746.313,12 - 233.728,54 2.573.628,23 - 1.062.627,69 1.511.000,54<br />
282 VIM ERCATE - VIA GARIBALDI, 12 O 383.936,62 - - 2.102,49 386.039,11 - 90.377,07 295.662,04<br />
283 VIM ERCATE - VIA TORRI BIANCHE, 3 L 518.431,86 - - 37.604,00 556.035,86 - 100.513,51 455.522,35<br />
284 VITERBO - VIA DEL GIGLIO O 22.915,22 181.605,46 - - 204.520,68 29.783,35 116.218,92 118.085,11<br />
285 ZOGNO - VIALE M ARTIRI DELLA LIBERTA', 1 O 509.163,53 1.288.500,95 - 219.247,85 2.016.912,33 - 778.275,97 1.238.636,36<br />
396.120.014,73 413.424.517,87 50.415.267,49 44.020.722,09 903.980.522,18 9.560.519,82 272.699.654,78 640.841.387,22<br />
747 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Convertible bonds<br />
31.12.2007 C H A N GE S 31.12.2008<br />
C OD E D ESC R IP T ION<br />
N OM IN A L<br />
C UR R EN CA YM OUN T S<br />
C A R R YIN G<br />
A M OUN T S<br />
N OM IN A L<br />
A M OUN T S<br />
C A R R YIN G<br />
A M OUN T S<br />
N OM IN A L<br />
A M OUN T S<br />
C A R R YIN G<br />
A M OUN T S<br />
IT0003184758 VITTORIA ASS 01/16 REV COUP EUR 19 56 0 -7 19 49<br />
IT0003331888 ALITALIA 2,9% 02/07 EUR 26 27 -16 -20 10 7<br />
IT0003873467 SNIA SPA 3% 05/10 CV EUR 12 13 -4 -6 8 7<br />
IT0001444360 BCO POPOLARE 4,75% 00/10 EUR 816 842 0 -2 816 840<br />
IT0003872394 SIAS 2,625% 05/10 EUR 11 11 0 -3 11 8<br />
T OT A L 884 949 -20 -38 864 911<br />
748 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
List of significant equity investments held in unlisted companies<br />
as at 31.12.2008<br />
(Art. 125 Consob Resolution No. 11971 of 14 th May 1999)<br />
D at a o n eq uit y invest ment<br />
D at a o n invest ment<br />
Invest o r<br />
Ownership<br />
t it le<br />
T yp e o f<br />
co nt ro l<br />
( **)<br />
Eq uit y invest ment ( R eg ist ered Of f ices)<br />
T ot al<br />
numb er o f<br />
shares/ q uo<br />
t as<br />
N o minal value p er<br />
share/ q uo t a<br />
Numb er o f<br />
shares o wned<br />
%<br />
% vo t ing<br />
rig ht s<br />
D irect eq uit y invest ment s<br />
U nio ne Banche It aliane Scp a Investment E A rca SGR Spa ( M ilan) 50.000.000 Euro 1,00 11.562.000 23,124 26,708<br />
quota held by <strong>Banca</strong> Popolare di Ancona Spa Investment A rca SGR Spa ( M ilan) 1.792.000 3,584<br />
13.354.000 26,708<br />
Investment E A viva V it a Spa ( M ilan) 75.000.000 Euro 1,00 37.500.000 50,000 50,000<br />
Investment A B @ nca 2 4 - 7 Sp a ( B erg amo ) 264.300.000 Euro 1,00 264.300.000 100,000 100,000<br />
Investment A B anca C arime Sp a ( C o senz a) 1.411.738.948 Euro 1,04 1.211.679.790 85,829 85,829<br />
Investment B anca d i V alle C amo nica Sp a ( B reno - B S) 2.738.693 Euro 1,00 2.033.313 74,244 82,960<br />
A<br />
Investment B anca d i V alle C amo nica Sp a ( B reno - B S) 238.693 8,716<br />
quota held by Banco di Brescia Spa<br />
2.272.006 82,960<br />
Investment A B anca Lo mb ard a Pref erred C ap it al C o . LLC ( Delaware - U SA ) 1 Euro 1.000,00 1 100,000 100,000<br />
Investment A B anca Lo mb ard a Pref erred Securit y T rust ( D elaware - U SA ) 1 Euro 1.000,00 1 100,000 100,000<br />
Investment A B anca Po p o lare C o mmercio e Ind ust ria Sp a ( M ilan) 650.000.000 Euro 1,05 541.846.707 83,361 83,361<br />
Investment A B anca Po p o lare C o mmercio e Ind ust ria F und ing Llc ( D elaware - U SA ) 1.000 Euro 1.000,00 1.000 100,000 100,000<br />
Investment A B anca Po p o lare d i A nco na Spa ( Jesi - A N ) 24.468.716 Euro 5,00 24.295.850 99,294 99,294<br />
Investment A B anca Po p o lare d i B erg amo Sp a ( B erg amo ) 1.256.300.000 Euro 1,00 1.256.300.000 100,000 100,000<br />
Investment A B anca Po p o lare d i B erg amo Fund ing Llc ( D elaware - U SA ) 1.000 Euro 1.000,00 1.000 100,000 100,000<br />
Investment A B anca R eg io nale Euro p ea Sp a ( o rd inary shares) ( C uneo ) 735.098.007 Euro 0,52 464.095.416 63,134 63,134<br />
B anca R eg io nale Euro p ea Sp a ( Priv. shares) 68.591.443 Euro 0,52 18.118.254 26,415<br />
B anca R eg io nale Euro p ea Sp a ( o rd inary and Priv. shares) 803.689.450 Euro 0,52 482.213.670 60,000<br />
B anca R eg io nale Euro p ea Sp a ( saving s shares) 46.310.550 Euro 0,52 27.379.026 59,120<br />
Investment A B anco d i B rescia San Pao lo CA B Sp a ( B rescia) 872.500.000 Euro 0,68 872.500.000 100,000 100,000<br />
Investment B anco d i San Gio rg io Sp a ( Geno a) 44.617.778 Euro 1,50 15.537.431 34,823 91,156<br />
A<br />
quota held by <strong>Banca</strong> Regionale Europea Spa Investment B anco d i San Gio rg io Sp a ( Geno a) 25.134.237 56,332<br />
40.671.668 91,156<br />
Investment A B anq ue d e D ep o t s et d e Gest io n Sa ( Lausanne - Swit z erland ) 40.000 Chf 250,00 40.000 100,000 100,000<br />
Investment E B arb erini S.A. ( B ruxelles - B elg ium) 3.000.000 Euro 1,00 1.000.000 33,333 33,333<br />
Investment A B PB Immo b iliare Srl ( B erg amo) 185.680.000 Euro 1,00 185.680.000 100,000 100,000<br />
Investment E B y Y o u Sp a ( M ilan) 650.000 Euro 1,00 260.000 40,000 40,000<br />
Investment A C ap it alg est Sp a ( B rescia) 2.540.673 Euro 6,00 2.540.673 100,000 100,000<br />
Investment E C ap it al M o ney Sp a ( M ilan) 1.564.000 Euro 1,00 320.000 20,460 20,460<br />
Investment C ent ro b anca Sp a ( M ilan) 336.000.000 Euro 1,10 310.300.984 92,352 97,823<br />
A<br />
quota detenuta da <strong>Banca</strong> Popolare di Ancona Spa Investment C ent ro b anca Sp a ( M ilan) 18.383.132 5,471<br />
328.684.116 97,823<br />
Investment C ent ro sim Spa ( M ilan) 333.334 Euro 60,00 29.880 8,964 12,422<br />
E<br />
quota detenuta da <strong>Banca</strong> Popolare di Ancona Spa Investment C ent ro sim Spa ( M ilan) 8.000 2,400<br />
quota detenuta da Centrobanca Spa Investment C ent ro sim Spa ( M ilan) 3.526 1,058<br />
41.406 12,422<br />
Investment A F inanz A t t iva Serviz i Srl ( B ergamo ) 5.660.000 Euro 1,00 5.660.000 100,000 100,000<br />
Investment E Lo mb ard a C hina F und M anag ement C o mp any ( Shenz en - C ina) 12.000 CNY 10.000,00 5.880 49,000 49,000<br />
Investment E Lo mb ard a V it a Sp a ( B rescia) 37.060.000 Euro 5,00 18.492.940 49,900 49,900<br />
Investment E M anisa Srl ( M ilan) 100.000 Euro 1,00 28.658 28,658 28,658<br />
Investment E M ed invest Int ernat io nal Sca ( Lussemb urg o ) 7.663.600 Euro 10,00 1.500.000 19,573 19,573<br />
Investment A M ercat o Imp resa Sp a ( M ilan) 3.500.000 Euro 1,00 3.449.495 98,557 98,557<br />
Investment E Prisma Srl ( M ilan) 120.000 Euro 1,00 24.000 20,000 20,000<br />
Investment E Q- C hannel Spa ( in liq uid az io ne) ( R o me) 1.607.141 Euro 1,00 241.071 15,000 15,000<br />
Investment<br />
E<br />
S.A .C .B .O. - So ciet à p er l' A ero p o rt o C ivile d i B erg amo - Orio al Serio<br />
Sp a ( Orio al Serio - B G) 3.543.750 Euro 4,80 356.131 10,050 10,050<br />
Investment Secur B ro ker Srl ( B erg amo ) 90.000 Euro 0,52 9.000 10,000 40,000<br />
E<br />
quota held by <strong>UBI</strong> Insurance Broker Srl Investment Secur B ro ker Srl ( B erg amo ) 27.000 30,000<br />
36.000 40,000<br />
Investment E S.F . C o nsult ing Srl ( B erg amo) 180.000 Euro 0,52 63.000 35,000 35,000<br />
Investment A SILF - So ciet à It aliana Leasing e F inanz iament i Sp a ( C uneo ) 2.000.000 Euro 1,00 2.000.000 100,000 100,000<br />
749 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
D at a o n eq uit y invest ment<br />
D at a o n invest ment<br />
Invest o r<br />
Ownership<br />
t it le<br />
T yp e o f<br />
co nt ro l<br />
( **)<br />
Eq uit y invest ment ( R eg ist ered Of f ices)<br />
T o t al<br />
numb er o f<br />
shares/ q uo<br />
t as<br />
N o minal value per<br />
share/ q uo t a<br />
N umb er o f<br />
shares o wned<br />
%<br />
% vo t ing<br />
rig ht s<br />
Investment A So ciet à B resciana Immo b iliare M o b iliare - SB IM Sp a ( B rescia) 35.000.000 Euro 1,00 35.000.000 100,000 100,000<br />
Investment E So ciet à p er la Gesio ne d el Palaz z o C ent ro C o ng ressi Srl ( A ssag o - M I) 10.200 Euro 1,00 1.763 17,284 17,284<br />
Investment E So ciet à p er i M ercat i d i V arese Sp a ( M alnat e - V A ) 2.711.606 Euro 1,50 399.240 14,723 14,723<br />
Investment A So ciet à Lo mb ard a Immo b iliare Srl ( B rescia) 100.000 Euro 1,00 100.000 100,000 100,000<br />
Investment A U B I A ssicuraz ioni Sp a ( M ilan) 63.100.000 Euro 0,52 63.100.000 100,000 100,000<br />
Investment E U B I A ssicuraz ioni V it a Sp a ( M ilan) 95.618.800 Euro 0,52 47.809.399 49,999 49,999<br />
Investment U B I B anca Int ernat io nal Sa ( Luxemb o urg ) 88.744 Euro 510,00 81.668 92,027 100,000<br />
Investment U B I B anca Int ernat io nal Sa ( Luxemb o urg ) 3.906 4,401<br />
quota held by <strong>Banca</strong> Popolare di Bergamo<br />
A<br />
quota held by Banco di Brescia Spa Investment U B I B anca Int ernat io nal Sa ( Luxemb o urg ) 2.970 3,347<br />
quota held by Banco di San Giorgio Spa Investment U B I B anca Int ernat io nal Sa ( Luxemb o urg ) 200 0,225<br />
88.744 100,000<br />
Investment A U B I B anca Privat e Invest ment Sp a ( B rescia) 22.650.000 Euro 3,00 22.650.000 100,000 100,000<br />
Investment A U B I C ent ro syst em Sp A ( M ilan) 1.401.660 Euro 10,00 1.401.660 100,000 100,000<br />
Investment A U B I Fact o r Sp a ( M ilan) 69.453.500 Euro 0,52 69.453.500 100,000 100,000<br />
Investment A U B I Fid uciaria Sp a ( B rescia) 3.650.000 Euro 0,52 3.650.000 100,000 100,000<br />
Investment A U B I Finance Srl ( M ilan) 10.000 Euro 1,00 6.000 60,000 60,000<br />
Investment A U B I Insurance B ro ker Srl ( B erg amo ) 1 Euro # # # # # # # # 1 100,000 100,000<br />
Investment U B I Leasing Sp a ( B rescia) 32.759.635 Euro 6,00 26.206.451 79,996 98,993<br />
A<br />
quota held by <strong>Banca</strong> Popolare di Ancona Spa Investment U B I Leasing Sp a ( B rescia) 6.223.184 18,996<br />
32.429.635 98,993<br />
Investment U B I Pramerica Sg r Sp a ( B erg amo ) 3.991.093 Euro 5,00 1.360.146 34,080 65,000<br />
A<br />
quota held by Capitalgest Spa Investment U B I Pramerica Sg r Sp a ( B erg amo ) 1.234.064 30,920<br />
2.594.210 65,000<br />
Investment A U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 50.000.000 Euro 0,52 34.000.000 68,000 100,000<br />
Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 2.000.000 4,000<br />
quota held by <strong>Banca</strong> Popolare di Bergamo Spa<br />
quota held by <strong>Banca</strong> Popolare di Ancona Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 2.000.000 4,000<br />
quota held by <strong>Banca</strong> Carime Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 2.000.000 4,000<br />
quota held by <strong>Banca</strong> Popolare Commercio e Industria Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 2.000.000 4,000<br />
quota held by Banco di Brescia Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 2.000.000 4,000<br />
quota held by <strong>Banca</strong> Regionale Europea Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 2.000.000 4,000<br />
quota held by Banco di San Giorgio Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 1.000.000 2,000<br />
quota held by <strong>UBI</strong> <strong>Banca</strong> Private banking Investment Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 1.000.000 2,000<br />
quota held by <strong>Banca</strong> di Valle Camonica Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 1.000.000 2,000<br />
quota held by <strong>UBI</strong> Factor Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 500.000 1,000<br />
quota held by Centrobanca Spa Investment U B I Sist emi e Serviz i So ciet à C o nso rt ile p er A z io ni ( B rescia) 500.000 1,000<br />
50.000.000 100,000<br />
Investment E U nione F id uciaria Sp a ( M ilan) 1.080.000 Euro 5,50 113.411 10,501 10,501<br />
Investment E V er C ap it al SGR p a ( M ilan) 1.500.000 Euro 1,00 240.000 16,000 16,000<br />
Ind irect eq uit y invest ment s<br />
B anca C arime Spa Investment E<br />
Investment<br />
E<br />
A lt o T irreno C osent ino Societ à C o nsort ile p .A . ( San N ico la A rcella -<br />
C S) 247.000 Euro 1,00 49.365 19,986 19,986<br />
PR OM EM Sud - Est - So ciet à p er la p ro mo z io ne dei mercat i mo b iliari Sud -<br />
Est Sp a ( B ari) 1.620 Euro 186,69 260 16,049 16,049<br />
Investment E Pro t eko s Sp a ( C o senz a) 100.000 Euro 5,16 15.000 15,000 15,000<br />
Investment E R evisud Sp a ( in liq uid az io ne) ( B ari) 28.700 Euro 5,16 6.601 23,000 23,000<br />
Investment E So ciet à A ero p ort uale C alab rese ( S.A .C A L.) Sp a ( Lamez ia Terme - C Z ) 15.000 Euro 517,00 1.533 10,220 10,220<br />
B anca d i V alle C amo nica Spa Pledge E Geva Srl ( B rescia) 100.000 Euro 1,00 49.000 49,000 49,000<br />
B anca Po p o lare C o mm Ind ust ria Sp a Pledge E A ct a Sp a ( M ilan) 5.000.000 Euro 1,00 4.000.000 80,000 80,000<br />
Pledge E A T I - A rt e T ip olit o g raf ica It aliana Spa ( Po mez ia - R o me) 10.000 Euro 11,00 10.000 100,000 100,000<br />
Pledge E D if f usio ni Graf iche Sp a ( in liq uid az ione) ( V illanova M o nf errat o - A L) 400.000 Euro 5,00 400.000 100,000 100,000<br />
Pledge E F .lli Orsenig o Srl ( C ant ù - C O) 46.800 Euro 1,00 46.800 100,000 100,000<br />
Pledge E F o nt anaA rt e Spa ( C o rsico - M I) 2.670.000 Euro 1,00 2.670.000 100,000 100,000<br />
Pledge E Gnut t i C irillo Spa ( Lumez z ane - B S) 49.916.914 Euro 0,52 8.760.000 17,549 17,549<br />
Pledge E N o rd M ilan Sp a ( Lainat e - M I) 120.000 Euro 1,00 90.000 75,000 75,000<br />
Pledge E O & C o Srl ( C arat e B rianz a - M I) 51.000 Euro 1,00 51.000 100,000 100,000<br />
750 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
D at a o n eq uit y invest ment<br />
D at a o n invest ment<br />
Invest o r<br />
Ownership<br />
t it le<br />
T yp e o f<br />
co nt ro l<br />
( **)<br />
Eq uit y invest ment ( R eg ist ered Of f ices)<br />
T o t al<br />
numb er o f<br />
shares/ q uo<br />
t as<br />
N o minal value per<br />
share/ q uo t a<br />
N umb er o f<br />
shares o wned<br />
%<br />
% vo t ing<br />
rig ht s<br />
Pledge E Part ecip az io ni Immo b iliari Srl ( St rad ella - PV ) 10.000 Euro 1,00 10.000 100,000 100,000<br />
Pledge E Po rt o d i Lavag na Sp a ( M ilan) 5.100.000 Euro 1,00 5.100.000 100,000 100,000<br />
Pledge E Serim Sp a ( M ilan) 15.000.000 Euro 1,00 3.750.000 25,000 25,000<br />
Pledge E Svilup p i Immo b iliari Srl ( St rad ella - PV ) 70.000 Euro 1,00 70.000 100,000 100,000<br />
Pledge E W inf in Sp a ( Lumez z ane - B S) 7.000.000 Euro 1,00 3.143.000 44,900 44,900<br />
B anca Po p o lare d i A nco na Sp a Investment E<br />
C ent ro Po lif unzio nale d el Piano - A nco na So ciet à C o o p erat iva<br />
C o nso rt ile ( A nco na) 456 Euro 140,52 400 87,719 2,857<br />
Investment E Escomarche Srl ( A nco na) 30.000 Euro 1,00 4.500 15,000 15,000<br />
Investment E F armaf in C ent ro It alia Scarl ( Perug ia) 55.980 Euro 25,00 8.000 14,291 14,291<br />
Investment E Immob iliare C amino Srl ( F ab riano - A N ) 192.308 Euro 1,00 30.769 16,000 16,000<br />
Pledge E Immob ilt ec Srl ( V ast o - C H) 20.235 Euro 0,51 20.000 98,839 98,839<br />
Pledge E Int erleasing Sp a ( Sant ' Elp id io a M are - A P) 1.015 Euro 1.000,00 1.015 100,000 100,000<br />
Pledge E N umanab lu Sp a ( N umana - A N ) 60 Euro 20.000,00 18 30,000 30,000<br />
Investment E So ciet à R eg io nale d i Garanz ia M arche Scp a ( A nco na) 124.396 Euro 25,82 20.001 16,078 0,074<br />
Investment E SPF St ud y Pro get t i F inancial Srl ( R o me) 92.960 Euro 1,00 23.240 25,000 25,000<br />
Investment E Synbio t ec Srl ( C amerino - M C ) 50.000 Euro 1,00 7.500 15,000 15,000<br />
B anca Po p o lare d i B erg amo Sp a Pledge E Immob iliare V is Sp a ( B erg amo ) 330.000 Euro 3,00 82.777 25,084 25,084<br />
Pledge E St amp eria Po z zi Sp a ( Gallarat e - V A ) 1.000.000 Euro 0,46 490.000 49,000 49,000<br />
B anca R eg io nale Euro p ea Sp a<br />
Investment<br />
A<br />
GE.SE.R I. - Gest io ne Serviz i d i R iscossio ne Sp a ( in liq uid azio ne)<br />
( C uneo ) 323.520 Euro 1,00 307.344 95,000 95,000<br />
Investment E Giarolo Lead er Srl ( San Seb ast iano C uro ne - A L) 70.000 Euro 1,00 14.999 21,427 21,427<br />
E<br />
P.S.T. - Parco Scient if ico , T ecno lo g ico e d elle Teleco municaz io ni in<br />
Investment<br />
V allescrivia Sp a ( T o rt o na - A L) 18.580 Euro 160,49 3.150 16,954 16,954<br />
B anco d i B rescia Sp a Investment E B io diversit y Spa ( B rescia) 715.000 Euro 1,00 215.000 30,070 30,070<br />
Pledge E D ue A Srl ( R o me) 2.000 Euro 100,00 2.000 100,000 100,000<br />
B anq ue d e D ep ot s et d e Gest io n Sa Investment A B D G Sing ap o re PT E Lt d ( Sing ap o re) 325.000 Sgd 1,00 325.000 100,000 100,000<br />
Investment A Gest io ni Lo mb ard a ( Suisse) Sa ( Lug ano - Sviz z era) 1.000 Chf 1.000,00 1.000 100,000 100,000<br />
Investment E So f ipo F id uciaire Sa ( Lug ano - Sviz z era) 2.000 Chf 1.000,00 600 30,000 30,000<br />
B PB Fund ing Llc Investment A B anca Po p o lare d i B erg amo C ap it al Trust ( D elaware - U SA ) 1 Euro 1.000,00 1 100,000 100,000<br />
B PC I F und ing Llc Investment A B anca Po p o lare C o mmercio e Ind ust ria C ap it al Trust ( D elaware - U SA ) 1 Euro 1.000,00 1 100,000 100,000<br />
C ent ro b anca Sp a Investment E A F H Sp a ( Osimo - A N ) 2.000.000 Euro 1,00 380.000 19,000 19,000<br />
Investment E C ar Test ing Sa ( Lussemb urg o ) 695.000 Euro 10,00 223.584 32,170 32,170<br />
Investment A C ent ro b anca Svilup p o Imp resa Sg r Spa ( M ilan) 20.000 Euro 100,00 20.000 100,000 100,000<br />
Investment E F rit t elli M arit ime Gro up Spa ( A nco na) 2.550.000 Euro 1,00 287.324 11,268 11,268<br />
Investment E GR OU P - Grup po Op eraz ioni U nd erwrit ing B anche Po p o lari Srl ( M ilan) 80.000 Euro 1,00 18.000 22,500 22,500<br />
Investment E Immob iliare M iraso le Sp a ( az io ni o rd .) ( M ilan) 40.461.867 Euro 1,00 14.880.098 36,776 36,776<br />
Immob iliare M iraso le Sp a ( Priv. shares) 10.833.410 Euro 1,00 8.335.534 76,943<br />
Immob iliare M iraso le Sp a ( az io ni o rd inarie e p riv.) 51.295.277 Euro 1,00 23.215.632 45,259<br />
Investment E Imp rend it o ri A sso ciat i Sp a ( in liq uid az io ne) ( M ilan) 1.516.000 Euro 1,00 163.387 10,778 10,778<br />
Investment E M axicub o Self St o rag e Srl ( B erg amo ) 100.000 Euro 1,00 17.500 17,500 17,500<br />
Investment E Part ecip az io ni in Imp rese Srl ( in liq uidaz io ne) ( M ilan) 69.648 Euro 1,00 7.222 10,369 10,369<br />
Investment E St raig ht t o V id eo Srl ( N apo li) 119.500 Euro 1,00 33.460 28,000 28,000<br />
(1) E Penso t t i F ab b rica C ald aie Leg nano SpA ( Leg nano - M I) 4.657.895 Euro 1,00 1.769.750 37,995 37,995<br />
M ercat o Imp resa Sp a Investment A C o ralis R ent Srl ( M ilan) 1 Euro 400.000,00 1 100,000 100,000<br />
Investment A C o ralis T ravel Srl in liq uidaz io ne ( M ilan) 110.000 Euro 1,00 110.000 100,000 100,000<br />
U B I B anca Privat e Invest ment Sp a Investment U B I M anag ement C o mp any Sa ( Lussemb urg o ) 12.500 Euro 10,00 12.375 99,000 100,000<br />
A<br />
quota detenuta da <strong>UBI</strong>>< <strong>Banca</strong> International Sa Investment U B I M anag ement C o mp any Sa ( Lussemb urg o ) 125 1,000<br />
12.500 100,000<br />
U B I>< B anca Int ernat io nal Sa Investment A U B I Trust C o mpany Lt d ( Jersey - C hannel Island s) 50.000 GBP 1,00 49.999 99,998 99,998<br />
U B I Fact o r Sp a Investment E Sid erf act o r Sp a ( M ilan) 12.000 Euro 100,00 3.240 27,000 27,000<br />
Investment E T ex Fact o r Sp a ( M ilan) 20.000 Euro 51,65 4.000 20,000 20,000<br />
U B I Fid uciaria Sp a Investment A U B I Gest io ni F id uciarie Sim Sp a ( B rescia) 2.000.000 Euro 0,52 2.000.000 100,000 100,000<br />
751 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
D at a o n eq uit y invest ment<br />
D at a o n invest ment<br />
Invest o r<br />
Owner ship<br />
t it le<br />
T yp e o f<br />
co nt ro l<br />
( **)<br />
Eq ui t y invest ment ( R eg ist ered Of f ices)<br />
T o t al<br />
numb er o f<br />
shares/ q uo<br />
t as<br />
N o minal value p er<br />
share/ q uo t a<br />
N umb er o f<br />
shares o wned<br />
%<br />
% vo t ing<br />
rig ht s<br />
U B I Leasing Sp a Invest ment E HR S - Help R ent al Service Srl ( i n liq uid azione) ( R o me) 200.000 Euro 1,00 48.000 24,000 24,000<br />
Invest ment<br />
E<br />
I.C .L. - Iniz iat ive C o mmerciali Lo mb ard e So ciet à C o nso rt ile a R .L.<br />
( V arese) 80.000 Euro 0,51 9.016 11,270 0,000<br />
U B I Pramerica Sg r Sp a Invest ment A C ap it alg est A lt ernat i ve Invest ment s Sg r Sp a ( B resci a) 1.500 Euro 1.000,00 1.500 100,000 100,000<br />
Invest ment A U B I Pramerica A lt ernat ive Invest ment s SGR Sp a ( B erg amo ) 1.000.000 Euro 5,00 927.500 92,750 92,750<br />
Invest ment<br />
Iw B ank Sp a ( 2 ) Invest ment A Invest N et Int ernat io nal S.A . ( Lussemb urg o ) 1.095.693 Euro 5,00 1.095.693 100,000 100,000<br />
Invest ment A Invest N et It alia Srl ( M ilan) 212.000 Euro 1,00 212.000 100,000 100,000<br />
Invest net Int ernat io nal S.A . Invest ment A Invest N et W o rk Ib eri ca Srl ( M il an) 1.626.227 Euro 1,00 1.626.227 100,000 100,000<br />
* Percentage of ordinary share capital<br />
** "A" Controlled - "E" not controlled<br />
(1) It is recognised within "loans to customers" in the financial statements<br />
(2) A listed company with 52,735% held by the <strong>UBI</strong> <strong>Banca</strong> Group<br />
752 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
Disclosures concerning the fees of the independent auditors and services other than<br />
auditing in compliance with Art. 149 duodecies of Issuers’ Regulations<br />
In accordance with Art. 149 duodieces of CONSOB Issuers’ Regulations, information<br />
concerning payments made to the independent auditors KPMG Spa and companies belonging<br />
to same network for the following services is given in the table below:<br />
1) auditing services which include:<br />
<br />
<br />
audit of the annual accounts for the purposes of expressing a professional opinion;<br />
interim audits of the accounts.<br />
2)certification services which include appointments where the auditor assesses a specific<br />
element, the determination of which is performed by another who is responsible for it, by<br />
employing appropriate criteria in order to furnish a conclusion which gives the recipient a<br />
measure of the reliability of that specific element;<br />
3) tax consultancy services;<br />
4) other services.<br />
The fees presented in the table relating to the financial year 2008, are those contractually agreed,<br />
inclusive of any indexing (but not of out-of-pocket expenses, nor of supervisory authority<br />
contributions and VAT).<br />
Pursuant to the regulations cited, payments made to possible secondary auditors or to firms<br />
belonging to the respective networks are not included.<br />
Type of service<br />
Firm providing<br />
the service<br />
Recipient of<br />
the service<br />
Fees<br />
(thousands of<br />
euro)<br />
Audit of accounts KPMG SpA <strong>UBI</strong> <strong>Banca</strong> Scpa 1.279<br />
Certification services KPMG SpA <strong>UBI</strong> <strong>Banca</strong> Scpa 1.250<br />
Tax consultancy services KPMG SpA <strong>UBI</strong> <strong>Banca</strong> Scpa 34<br />
Other services: <strong>UBI</strong> <strong>Banca</strong> Scpa 3.558<br />
- Mifid project: support for office KPMG Advisory<br />
project activities<br />
SpA 1.378<br />
- Basel 2 project: support for office<br />
project activities and gap analysis<br />
- Support for compliance with Law<br />
No. 262/05<br />
- Basel 2 project: assistance with<br />
the development of a portfolio<br />
model for credit risk<br />
- Other services<br />
KPMG Advisory<br />
SpA 1.361<br />
KPMG Advisory<br />
SpA 435<br />
KPMG Advisory<br />
SpA 375<br />
KPMG Advisory<br />
SpA 9<br />
Total 6.121<br />
753 <strong>UBI</strong> <strong>Banca</strong> S.c.p.A.
<strong>REPORT</strong> ON THE<br />
CORPORATE GOVERNANCE AND<br />
OWNERSHIP STRUCTURE<br />
OF <strong>UBI</strong> BANCA Scpa<br />
Web site: www.ubibanca.it<br />
Year: 2008<br />
Date: 24.03.2009
Introduction<br />
Governance of <strong>UBI</strong> <strong>Banca</strong><br />
Composition of the share capital<br />
Role of the Parent Bank and the Unione di Banche Italiane Group<br />
Governing bodies of <strong>UBI</strong> <strong>Banca</strong><br />
• Shareholders’ meetings<br />
• Supervisory Board<br />
- APPOINTMENT AND COMPOSITION<br />
- REMUNERATION<br />
- INDEPENDENT BOARD MEMBERS<br />
- FUNCTIONS OF THE SUPERVISORY BOARD<br />
- CHAIRMAN<br />
- <strong>MANAGEMENT</strong> OR SUPERVISORY POSITIONS HELD BY MEMBERS OF THE SUPERVISORY BOARD<br />
- MEETINGS<br />
• Committees<br />
- APPOINTMENTS COMMITTEE<br />
- REMUNERATION COMMITTEE<br />
- INTERNAL CONTROL COMMITTEE<br />
- ACCOUNTS COMMITTEE<br />
• Management Board<br />
- APPOINTMENT AND COMPOSITION<br />
- REMUNERATION<br />
- EXECUTIVE AND NON-EXECUTIVE BOARD MEMBERS<br />
- INDEPENDENT BOARD MEMBERS<br />
- FUNCTIONS OF THE <strong>MANAGEMENT</strong> BOARD<br />
- CHAIRMAN<br />
- <strong>MANAGEMENT</strong> OR SUPERVISORY POSITIONS HELD BY MEMBERS OF THE <strong>MANAGEMENT</strong> BOARD<br />
- MEETINGS<br />
• Chief Executive Officer<br />
• Board Member Appointed to Supervise the System of Internal Control<br />
• Board of Arbitration<br />
• General Management<br />
• Manager charged with preparing financial reports (Financial Reporting Officer)<br />
The internal control system<br />
Organisation, management and control model pursuant to Legislative<br />
Decree No. 231/2001 and the relative Supervisory Body<br />
Related party transactions<br />
Treatment of confidential information<br />
Internal Dealing<br />
Relations with Shareholders, Institutional Investors and the Financial<br />
Community<br />
Auditing of accounts<br />
Attachments<br />
Summary tables<br />
755 Report on Corporate governance
Introduction<br />
The purpose of this report is to provide shareholders and the market with an analysis of the<br />
system of corporate governance adopted by Unione di Banche Italiane Scpa (hereinafter <strong>UBI</strong><br />
<strong>Banca</strong>). The system is based on the measures and principles contained:<br />
- in the regulations governing listed issuers set out in the Consolidated Finance Act and in<br />
the related rules to implement them adopted by the Consob (Italian securities market<br />
authority);<br />
- in the regulations governing banks, with particular reference to specific regulations<br />
concerning co-operative ‘popular’ banks set out in the Consolidated Banking Act;<br />
- in the Corporate Governance Code drawn up by Borsa Italiana Spa (the March 2006<br />
version).<br />
<strong>UBI</strong> <strong>Banca</strong> has adopted the “corporate governance code” (March 2006 version), a document<br />
which is designed principally for listed companies that have adopted a traditional governance<br />
model. Article 12 of that code states that if a two tier or one tier management and control<br />
system is adopted “the above articles shall apply insofar as compatible, adapting individual<br />
provisions to the particular system adopted, consistently with the objectives of good corporate<br />
governance, transparency of information and protection of investors and the markets pursued<br />
by the Code and in the light of the criteria provided by this article”.<br />
Therefore, in compliance with the provisions of Article 12.P.3 of the corporate governance code<br />
this report is specifically designed to provide a detailed description of the procedures by which<br />
that code has been applied by the Bank. It also reports those the standards with which the<br />
Bank fully complies with and those with which it does not, even partially, on a “comply or<br />
explain” basis. This is partly because the Bank must consider its status as a cooperative<br />
banking company which, as such, demands strict compliance with regulations contained in<br />
the Consolidated Banking Act and with the consequent supervisory instructions issued by<br />
Bank of Italy.<br />
The report has also been drawn up in compliance with the recommendations mentioned<br />
issued by Borsa Italiana and also in implementation in particular of article 89-bis of the<br />
Issuers' Regulations which requires listed companies to publish an annual report "on<br />
adherence to their codes of conduct and the fulfilment of the commitments arising from<br />
them" 1 , to be included in full in the report on operations.<br />
* * *<br />
This report also contains information on corporate governance and ownership structure<br />
required by Art. 123 bis of Legislative Decree. 58/1998 (hereinafter the Consolidated Finance<br />
Act).<br />
* * *<br />
On 4 th March 2008, the Bank of Italy issued supervisory instructions on the organisation and<br />
corporate governance of Banks in which it laid down principles and practical guidelines<br />
designed to ensure the pursuit of business objectives and to guarantee sound and prudent<br />
management.<br />
Those supervisory instructions, which concern the organisational and governance structure of<br />
banks, required careful assessments to be made of possible changes to the by-laws which led<br />
to the formulation of amendments to the corporate by-laws of <strong>UBI</strong> <strong>Banca</strong> which will be<br />
submitted to the next shareholders’ meeting for their approval.<br />
Following the approval of the by-law amendments just mentioned. <strong>UBI</strong> <strong>Banca</strong> will be able to<br />
confirm – as part of a corporate governance project to be drawn up by 30 th June 2009 – that it<br />
is adopting by-laws and an internal ogranisation that are consistent with the principles<br />
contained in the Bank of Italy instructions.<br />
1 That article 89 bis cited then continues to specify that the report must contain information:<br />
a) on compliance with each requirement of the code of conduct;<br />
b) on reasons for any non compliance with the code of conduct;<br />
c) on any conduct pursued in place of that recommended by the code of conduct.<br />
756 Report on Corporate governance
In this respect, this report has been prepared on the basis of the corporate by-laws currently<br />
in force.<br />
Governance of <strong>UBI</strong> <strong>Banca</strong><br />
<strong>UBI</strong> <strong>Banca</strong> is a “popular” bank incorporated in the form of a joint stock co-operative company.<br />
As such, <strong>UBI</strong> <strong>Banca</strong> is required to comply with the provisions of the Italian Civil Code<br />
concerning co-operatives (excluding those expressly listed in Article 150 bis of Legislative<br />
Decree No. 385/1993) and also with those governing joint stock companies, to the extent that<br />
they are not in conflict with the laws governing co-operatives, as indicated in Article 2519 of<br />
the Italian Civil Code. Express details of the Bank’s particular characteristics as a cooperative<br />
are given in the separate company financial report of <strong>UBI</strong> <strong>Banca</strong> Scpa, an integral part of the<br />
report on operations, which was drawn up in compliance with Article 2545 of the Italian Civil<br />
Code and states the criteria followed in company operations to pursue the Bank's mutual<br />
objects.<br />
The legal nature of a “popular” co-operative bank lies in the circumstance that each registered<br />
shareholder of the co-operative is entitled to one vote whatever the number of shares<br />
possessed and no one can hold more than 0.5% of the share capital, in accordance with Art.<br />
30 of the Consolidated Banking Act. An exception to the maximum 0,50% limit is made for<br />
collective investment organisations, for which the regulatory limits specific to each of them<br />
apply.<br />
In recent years the Italian Parliament has attempted on several occasions to examine the<br />
legislation governing “popular” banks with a view to making changes with regard to the<br />
maximum limit on shares that may be held by individual and institutional investors. <strong>UBI</strong><br />
<strong>Banca</strong> has expressed its opinion in favour of raising the limits on shareholdings, but at the<br />
same time conserving the regulations on “popular” banks, especially with regard to the<br />
principle of per capita voting.<br />
<strong>UBI</strong> <strong>Banca</strong> has adopted a two tier system of management and control, which is considered<br />
better suited to the governance requirements of the Parent Bank, <strong>UBI</strong> <strong>Banca</strong>, and at the same<br />
time more appropriate to strengthening the protection of registered and unregistered<br />
shareholders, especially through the activity of the Supervisory Board, a body appointed<br />
directly by the registered shareholders and representing them.<br />
The distinguishing features of the two tier system lie in the distinction between:<br />
• strategic supervision and control functions, assigned to the Supervisory Board, which holds<br />
some of the powers which in a traditional system belong to a shareholders' meeting<br />
(approval of financial statements, appointment of the members of the management body<br />
and determination of the relative remuneration) and to the Board of Statutory Auditors and<br />
also fulfils some "senior management" functions, insofar as it is called upon to approve<br />
general guidelines and strategic policies for the Bank and the Group, submitted to it by the<br />
Management Board (Article 46 of the corporate by-laws);<br />
• corporate management functions, assigned to the Management Board, which has exclusive<br />
authority to perform all ordinary and extraordinary operations necessary to pursuit of the<br />
company objects, in compliance with the general guidelines and strategic policies approved<br />
by the Supervisory Board (Article 37 of the Corporate By-laws).<br />
This division of functions identifies distinct aspects of the operational life of the Bank and<br />
assigns them to the corporate bodies just mentioned which, with their respective roles and<br />
responsibilities, determine a corporate governance model that is more consistent with the<br />
structure of the Bank and the Group in the context of a single business plan, characterised by<br />
ongoing dialogue and interfunctional co-operation.<br />
The Bank is listed on the Mercato Telematico Azionario (screen based stock market) organised<br />
and managed by Borsa Italiana Spa. Accordingly, <strong>UBI</strong> <strong>Banca</strong> is also required to comply with<br />
the regulations for listed issuers contained in the Consolidated Finance Act and in the<br />
regulations to implement that act issued by the Consob.<br />
757 Report on Corporate governance
Composition of the share capital<br />
The share capital of <strong>UBI</strong> <strong>Banca</strong> Scpa is composed entirely of ordinary shares traded on the<br />
Mercato Telematico Azionario (screen based stock market) managed by Borsa Italiana Spa and<br />
as at 31 st December 2008 it amounted to 1.597.864.755 euro divided into 639.145.902 shares<br />
with a nominal value of 2,50 euro each, and on that same date registered shareholders<br />
numbered 85.280.<br />
There are no restrictions on the transfer of shares, since the shares are transferable in<br />
accordance with the law (Art. 15 of the corporate by-laws, available on the website<br />
www.ubibanca.it in the English part in the section Corporate Governance, Corporate<br />
Documents).<br />
Since it is a “popular” bank, there is a limit on shareholdings pursuant to Art. 30 of the<br />
Consolidated Banking Act and to Art. 18 of the corporate by-laws, which states that no one<br />
may hold more than the maximum limit permitted by law, which is 0,50% of the share capital<br />
(this limit does not apply to collective investment organisations for which limits laid down in<br />
the rules of each of them apply).<br />
With regard to the limit to the interest that can be held in the share capital of ‘popular’ banks<br />
established by legislation in force, the Bank sent the parties concerned notice, pursuant to<br />
Article 30 of the Consolidated Banking Act, relating to breach of the ban on holding shares in<br />
excess of 0.50%.<br />
Acceptance clauses exist solely for admission to the status of registered shareholder.<br />
Persons wishing to become registered shareholders must present a certificate of participation<br />
in the centralised administration system and a written application to the Management Board<br />
containing not only details of the shares possessed but also personal particulars, address,<br />
citizenship and all other information and/or declarations required by law or the by-laws or<br />
requested in general by the Bank. For the purposes of admission as a registered shareholder<br />
certificates testifying to the ownership of at least 250 shares must be presented.<br />
With account taken of the provisions of the law on ‘popular’ co-operative banks, all decisions<br />
on the acceptance of applications for admission as a registered shareholder are taken by the<br />
Management Board, in consideration of the general criteria recommended by the Supervisory<br />
Board, with exclusive regard to the objective interests of the Bank, including those of its<br />
independence and autonomy and to observance of the spirit of the cooperative form. The<br />
decisions are then communicated to the parties concerned. For the purposes of assessing<br />
these requirements, account is taken of any previous relations between the persons applying<br />
and group member companies.<br />
The rejection of an application to become a registered shareholder, for those who lawfully<br />
possess shares in the Bank, has the only effect of not allowing the exercise of rights other than<br />
those which have a financial content.<br />
No reports of shareholdings greater than 2% have been received, other than those received in<br />
April 2007 at the time of the merger with <strong>Banca</strong> Lombarda e Piemontese: Carlo Tassara Spa<br />
(2,282%), Fondazione Cassa di Risparmio di Cuneo (2,278%), Fondazione <strong>Banca</strong> del Monte di<br />
Lombardia (2,255%).<br />
On the basis of information received directly by the Group, at the date of this report the<br />
percentage shareholdings held are as follows:<br />
- Carlo Tassara Spa (2,004%),<br />
- Fondazione Cassa di Risparmio di Cuneo (2,280%)<br />
- Fondazione <strong>Banca</strong> del Monte di Lombardia (2,255%).<br />
There are no shares which confer special controlling rights over <strong>UBI</strong> <strong>Banca</strong>.<br />
There are no share investment programmes for employees at <strong>UBI</strong> <strong>Banca</strong> which exclude the<br />
direct exercise of voting rights.<br />
758 Report on Corporate governance
The exercise of voting rights is subject above all to acquiring the status of registered<br />
shareholder which is acquired following approval for admission by the Management Board,<br />
with enrolment in the shareholders register. Those persons in possession of the right to vote<br />
for which the communication has been made to the Bank by the intermediary appointed in<br />
accordance with Art. 2370 of the Italian Civil Code and with any special provisions of the law<br />
or regulations, at least 2 working days prior to the date set for the first session, may<br />
participate in shareholders’ meetings in accordance with the provisions of the law.<br />
Registered shareholders may not withdraw shares or the relative certification before the<br />
meeting has taken place.<br />
Only persons who have been registered shareholders for at least 90 days from the date of entry<br />
in the shareholder register may attend the shareholders’ meetings, exercise voting rights and<br />
be eligible for appointment to corporate bodies (Art. 25 of the corporate by-laws)<br />
In compliance with Art. 30 of the Consolidated Banking Act and Art. 26 of the corporate bylaws,<br />
registered shareholders have only one vote, irrespective of the number of shares held.<br />
Rights over capital and profits are in proportion to the shares owned (Art. 17 of the by-laws);<br />
nevertheless if a shareholder fails to transfer ownership of shares in excess of the 0,50% limit<br />
of the share capital within one year of the violation being reported by the Bank, the relative<br />
ownership rights maturing up to the time of the sale of the excess shares are acquired by the<br />
Bank.<br />
<strong>UBI</strong> <strong>Banca</strong> has received the following communications in relation to:<br />
• the constitution, on 28 th May 2007, of an unofficial association named "Associazione<br />
<strong>Banca</strong> Lombarda e Piemontese" located in Brescia to which more than 100 former<br />
shareholders of the former <strong>Banca</strong> Lombarda e Piemontese belong who were previously<br />
members of the "<strong>Banca</strong> Lombarda e Piemontese Syndicate" and who, as a result of the<br />
merger between BLP and BPU have become shareholders of <strong>UBI</strong> <strong>Banca</strong>. Together they<br />
hold approximately more than 10% of the share capital of <strong>UBI</strong> <strong>Banca</strong>. An extract of the<br />
main clauses of the by-laws of the association was published in the newspaper ItaliaOggi<br />
on 5 th June 2007;<br />
• the constitution, on 23 rd November 2007, of the unofficial association named "Gli Amici<br />
di <strong>UBI</strong> <strong>Banca</strong>", located in Bergamo, by 28 registered shareholders of <strong>UBI</strong> <strong>Banca</strong> Scpa. An<br />
extract of the main clauses of the by-laws of the association was published in the<br />
newspaper ItaliaOggi on 30 th November 2007.<br />
While these associations do not qualify as shareholders' agreements pursuant to Article 122 of<br />
Legislative Decree No. 58/98, the members of both of them have nevertheless fulfilled public<br />
disclosure obligations as required by law in relation to some of the clauses of their by-laws,<br />
insofar as it is necessary and in view of the legally binding nature of the decree mentioned and<br />
the consequences of failure to comply with it.<br />
No authorisations exist as at the date of this report for increases in the share capital or for the<br />
issue of convertible bonds.<br />
As concerns the purchase of own shares, a shareholders’ meeting of 10 th May 2008 authorised<br />
the Management Board – until the shareholders’ meeting convened to pass resolutions for the<br />
distribution of profits for the year ended 31 st December 2008 – to purchase own shares at a<br />
price not higher than the official price or the closing price in the market session prior to each<br />
individual transaction to be charged to the “reserve for the purchase of own shares”<br />
amounting to 64.203.000,00 euro, with the further limit that the shares held as a result of<br />
trading performed do not exceed a maximum number equal to 1% of the share capital.<br />
That same shareholders’ meeting also authorised the Management Board to sell all or part of<br />
the own shares that the Bank might hold at a price not less than the official price or the<br />
closing price in the session prior to each individual sales transaction, with the understanding<br />
that the amount from the sale of the shares held returns, up until the carrying amount, to the<br />
funds held in the “reserve for the purchase of own shares”.<br />
The mandate to purchase own shares was not exercised in 2008 and in the period until the<br />
date of this report.<br />
* * * * * * * * *<br />
759 Report on Corporate governance
The shareholders’ agreement signed on 18 th January 2008 by <strong>UBI</strong> <strong>Banca</strong> and the Prudential<br />
USA concerning the joint venture, <strong>UBI</strong> Pramerica SGR Spa (“SGR”) grants rights to purchase<br />
to the parties (call options) if certain predetermined events occur.<br />
More specifically, in the event of a “change of control” of <strong>UBI</strong> <strong>Banca</strong> (this being understood as<br />
any operation whereby i) an entity directly or indirectly purchases more than 30% of the share<br />
capital with voting rights of <strong>UBI</strong> <strong>Banca</strong>; ii) <strong>UBI</strong> <strong>Banca</strong> merges or performs another<br />
extraordinary operation with another legal entity and as a consequence <strong>UBI</strong> <strong>Banca</strong> ceases to<br />
exist or the legal entity party to the operation holds more than 30% of the share capital with<br />
voting rights subsequent to the operation; iii) the sale, rent, transfer or other analogous<br />
operation by which <strong>UBI</strong> <strong>Banca</strong> transfers all or a substantial part of its business to another<br />
legal entity), Prudential USA has the right to make a communication to <strong>UBI</strong> <strong>Banca</strong> which<br />
allows the latter to exercise a call option on the entire investment held by Prudential USA in<br />
the SGR.<br />
If that option is not exercised, Prudential USA has, as an alternative, the right i) to purchase<br />
the entire interest held in the SGR by the <strong>UBI</strong> <strong>Banca</strong> Group, or an interest which allows it to<br />
hold 65% of the share capital of the SGR; ii) to give a mandate to an investment bank to sell<br />
the entire share capital of the SGR to a third party.<br />
* * * * * * * * *<br />
The report on operations in the 2008 Annual Report may be consulted for information on<br />
agreements between the Bank and members of the Management Board which involve the<br />
payment of an indemnity if they should resign.<br />
Role of the Parent Bank and the Unione di Banche Italiane<br />
Group<br />
<strong>UBI</strong> <strong>Banca</strong> is the Parent Bank of the Unione di Banche Italiane Group, organised on a federal,<br />
polyfunctional model and integrated with the listed ‘popular’ Parent bank, which sets strategic<br />
policies and performs functions of coordination and control over all the organisational units<br />
and companies in the Group.<br />
In implementing its management and co-ordination activities in compliance with both specific<br />
regulations laid down by the Supervisory Authority and civil law, <strong>UBI</strong> <strong>Banca</strong> sets the strategic<br />
objectives of the Group, mainly through the Group budget and Business Plan for the Group,<br />
without prejudice to the by-law and operational independence of each company in the Group.<br />
It also defines, as a consequence, the strategic lines of development of each of them, just as<br />
they are called upon on the one hand to achieve those objectives in terms of a single business<br />
plan and on the other to benefit from the overall results of the management and co-ordination<br />
activities.<br />
The <strong>UBI</strong> <strong>Banca</strong> Group is composed of the following:<br />
• nine network banks:<br />
- <strong>Banca</strong> Popolare di Bergamo Spa with head office and headquarters in Bergamo;<br />
- Banco di Brescia Spa, with head office and headquarters in Brescia;<br />
- <strong>Banca</strong> Popolare Commercio e Industria Spa, with head office and headquarters in<br />
Milan;<br />
- <strong>Banca</strong> Regionale Europea Spa, with head office in Cuneo and headquarters in Milan;<br />
- <strong>Banca</strong> di Valle Camonica Spa, with head office and headquarters in Breno (BS);<br />
- Banco di San Giorgio Spa, with head office and headquarters in Genoa;<br />
- <strong>Banca</strong> Popolare di Ancona Spa, with head office and headquarters in Jesi (AN) ;<br />
- <strong>Banca</strong> Carime Spa, with head office and headquarters in Cosenza;<br />
- <strong>UBI</strong> <strong>Banca</strong> Private Investment Spa, with head office and headquarters in Brescia;<br />
• one corporate bank and investment bank, Centrobanca S.p.A., with head office and<br />
headquarters in Milan;<br />
760 Report on Corporate governance
• one online bank, IW Bank Spa, with head office in Milan;<br />
• product companies operating mainly in the asset management sector (<strong>UBI</strong> Pramerica<br />
SGR Spa, <strong>UBI</strong> Pramerica Alternative Investment SGR Spa, Capitalgest Alternative<br />
Investments SGR Spa), the life and non life banc assurance sectors (<strong>UBI</strong> Assicurazioni<br />
Spa, Aviva Assicurazioni Vita Spa (*), Aviva Vita Spa, Lombarda Vita Spa), the consumer<br />
finance sector (B@nca 24-7 Spa), the leasing sector (<strong>UBI</strong> Leasing Spa (**)) and in the<br />
factoring sector (<strong>UBI</strong> Factor Spa);<br />
• one company, <strong>UBI</strong> Sistemi e Servizi SCpA, for the supply of services and products to<br />
businesses; one company, <strong>UBI</strong> Centrosystem Spa, for the supply of IT services to the<br />
product companies of the <strong>UBI</strong> <strong>Banca</strong> Group and companies operating in the property<br />
sector: SBIM (Società Bresciana Immobiliare Mobiliare Spa), SOLIMM (Società Lombarda<br />
Immobiliare Srl) and BPB Immobiliare Srl;<br />
• special purpose entities for securitisation transactions and trust companies for the issue<br />
of preferred shares: <strong>Banca</strong> Lombarda Preferred Securities Trust, <strong>UBI</strong> Finance Srl, 24-7<br />
Finance Srl, Lombarda Lease Finance 2 Srl; Lombarda Lease Finance 3 Srl, Lombarda<br />
Lease Finance 4 Srl, <strong>UBI</strong> Lease Finance 5 Srl, <strong>UBI</strong> Finance 2 Srl, BPB Funding Llc, BPB<br />
Capital Trust, BPCI Funding Llc, BPCI Capital Trust, <strong>UBI</strong> Trust Company Ltd.<br />
(*) On 01/01/2009 <strong>UBI</strong> Assicurazioni Vita Spa changed its name to Aviva Vita Assicurazioni<br />
Spa.<br />
(**) On 05/07/2008 the merger was completed of BPU Leasing Spa into SBS Leasing Spa<br />
which changed its name at the same time to <strong>UBI</strong> Leasing Spa.<br />
The <strong>UBI</strong> <strong>Banca</strong> Group’s presence abroad as at 31 st December 2008 was composed as follows:<br />
Subsidiary banks:<br />
- <strong>UBI</strong> <strong>Banca</strong> International S.A. located in Luxembourg.<br />
- Banque de Dèpôts et de Gestion (BDG) located in Switzerland;<br />
branches:<br />
- France: branches of the <strong>Banca</strong> Regionale Europea in Nice and at Menton;<br />
- Germany: branch of <strong>UBI</strong> <strong>Banca</strong> International in Munich;<br />
- Luxembourg: branch of Banco di Brescia;<br />
- Spain: branch of <strong>UBI</strong> <strong>Banca</strong> International in Madrid.<br />
Switzerland: branches of BDG at Lausanne, Lugano, Mendrisio, Neuchâtel;<br />
Representative offices:<br />
- Hong Kong;<br />
- Moscow;<br />
- Mumbai;<br />
- San Paolo of Brazil;<br />
- Shanghai.<br />
Product companies:<br />
- BDG Singapore Pte Ltd, a “financial advisory” company located in Singapore and controlled<br />
by BDG.<br />
- <strong>UBI</strong> Factor Polonia, a branch in Poland of the Group factoring company.<br />
- Gestioni Lombarda Suisse, a Swiss company specialising in asset management located in<br />
Lugano and controlled by BDG.<br />
- Lombarda China Fund Management, a joint venture in the asset management sector for the<br />
Chinese market.<br />
A chart showing the composition of the Unione di Banche Italiane Group is given below:<br />
761 Report on Corporate governance
(1) The company InvestNet International SA is 100% controlled in<br />
turn by InvestNet Work Iberica Srl<br />
<strong>UBI</strong>>
Governing bodies of <strong>UBI</strong> <strong>Banca</strong><br />
Shareholders’ Meetings<br />
Shareholders’ meetings, properly convened and constituted, represent the registered<br />
shareholders as a whole and their resolutions, passed in compliance with the corporate bylaws,<br />
are binding on all registered shareholders, even if absent or dissenting.<br />
Those persons in possession of the right to vote for which the communication has been made<br />
to the Bank by the intermediary appointed in accordance with Art. 2370 of the Italian Civil<br />
Code and with any special provisions of the law or regulations, at least 2 working days prior to<br />
the date set for the first session, may participate in shareholders’ meetings in accordance with<br />
the provisions of the law. Registered shareholders may not withdraw shares or the relative<br />
certification before the meeting has taken place. Only persons who have been registered<br />
shareholders for at least 90 days from the date of entry in the shareholders’ register may<br />
attend the meetings, exercise voting rights and be eligible for appointment to corporate bodies.<br />
A registered shareholder is entitled to only one vote no matter how many are shares<br />
possessed. A registered shareholder is entitled to be represented by issuing a written proxy to<br />
another registered shareholder having the right to participate in a shareholders’ meeting.<br />
Proxies may not be granted to members of governing or controlling bodies or to employees of<br />
the Bank, to companies controlled by it or to members of governing or controlling bodies or to<br />
employees of the latter.<br />
Without prejudice to the provisions of paragraph 2, of Art. 2372 of the Italian Civil Code, proxy<br />
authorisations can be issued for individual shareholders’ meetings only, with effect also for<br />
subsequent sessions, and may not be issued with the name of the representative left blank. No<br />
registered shareholder may act as proxy for more than 3 other registered shareholders. Voting<br />
by post is not permitted.<br />
Members of the Management Board and similarly members of the Supervisory Board may not<br />
vote on matters concerning their areas of responsibility. The right to vote in the case of a<br />
pledge or usufruct on shares lies with the registered shareholder only.<br />
As concerns quorums for voting, resolutions are passed in ordinary and extraordinary<br />
shareholders' meetings by an absolute majority of the votes, except for the approval of<br />
resolutions to change the company objects, eliminate or close down operational headquarters<br />
in Brescia and Bergamo, wind-up the Bank in advance as determined by events provided for<br />
by law, with the exception of the circumstance pursuant to point 6 of article 2484 of the<br />
Italian Civil Code, repeal or amend Articles 23 and 36 of the corporate by-laws and/or<br />
introduce any other provision that is incompatible with those articles, as well as to approve<br />
amendments to or the elimination of the quorums for passing resolutions contained in article<br />
28, paragraph 3, for which the vote in favour of at least one twentieth of all the registered<br />
shareholders entitled to vote is required, even in second call (article 28 of the corporate bylaws).<br />
Furthermore, the vote in favour of at least one twentieth of all shareholders entitled to vote,<br />
who in turn represent at least 20% of the subscribed and paid-up share capital as at the<br />
ninetieth day prior to the date set for a shareholders’ meeting is required, even in second call,<br />
for the approval of resolutions concerning the repeal or amendment of article 45, paragraph 6,<br />
article 48, paragraph 6 and article 49, paragraphs 4, 5 and 6 and the approval of amendments<br />
to or elimination of the quorum for passing resolutions contained in article 28, paragraph 4,<br />
(Article 28 of the corporate by-laws).<br />
Finally, for resolutions to be passed at the request of the Banking Supervisory Authority or in<br />
relation to changes to regulations or legislation, both ordinary and extraordinary shareholders'<br />
meetings pass resolutions by an absolute majority vote. In these cases, where the Supervisory<br />
Board is empowered to approve them, they are passed by an absolute majority of the members<br />
present (Article 28 of the corporate by-laws).<br />
As concerns proceedings in shareholders' meetings, the Bank has adopted regulations for<br />
shareholders' meetings based on standard regulations recommended by the Italian Banking<br />
Assocation and Assomine (association of joint stock companies) designed to govern the ordered<br />
763 Report on Corporate governance
and efficient functioning of meetings and to ensure that each registered shareholder has the<br />
right to speak on the items on the agenda.<br />
These regulations have also been published on the Bank's website in the corporate governance<br />
section and in the shareholders’ section.<br />
Supervisory Board<br />
APPOINTMENT AND COMPOSITION<br />
The Supervisory Board is composed of 23 members appointed by a shareholders' meeting<br />
chosen from among those registered shareholders possessing the necessary qualities, namely<br />
integrity, professionalism and independence as required by the legislation in force. At least 15<br />
of the members of the Supervisory Board must be in possession of the requirements of<br />
professionalism required by the legislation currently in force for persons who perform<br />
functions as directors of banks.<br />
In particular, at least 3 members of the Supervisory Board must be chosen from among<br />
persons enrolled in the Registro dei Revisori Contabili (register of auditors) who have practised<br />
as legal certifiers of accounts for a period of not less than three years.<br />
While mandatory provisions of the law, of the Supervisory authority or regulations must be<br />
complied with, persons already holding offices of full statutory auditor or members of other<br />
controlling bodies in more than five listed companies and/or their parent companies or<br />
subsidiaries cannot hold office as a member of the Supervisory Board. If the cause of<br />
incompatibility just mentioned is not eliminated within 60 days of election or of<br />
communication of the fact to the person concerned, if it occurs subsequently, the member of<br />
the board is automatically removed from the position.<br />
Members of the Supervisory Board are elected by a shareholders' meeting on the basis of lists<br />
in accordance with the terms and procedures contained in article 45 of the corporate by-laws.<br />
In accordance with the transition regulation V contained in the corporate by-laws, a meeting of<br />
the shareholders of BPU <strong>Banca</strong> held on 3 rd March 2007 appointed the first Supervisory Board<br />
of <strong>UBI</strong> <strong>Banca</strong> for the years 2007/2008/2009. It appointed Gino Trombi as Chairman and<br />
Giuseppe Calvi as Senior Deputy Chairman. These appointments became effective on 1 st April<br />
2007, the date on which the merger of <strong>Banca</strong> Lombarda into BPU <strong>Banca</strong> became legally<br />
effective.<br />
Following the resignations of two members of the Supervisory Board, Franco Polotti and<br />
Pierfrancesco Rampinelli, on 5 th May 2007 a shareholders’ meeting of <strong>UBI</strong> <strong>Banca</strong> replaced<br />
them by appointing Alberto Folonari and Giovanni Bazoli to the board.<br />
In compliance with the provisions of Article 44 of the corporate by-laws, the Supervisory Board<br />
appointed 2 Deputy Chairmen - Alberto Folonari and Mario Mazzoleni - and it also appointed<br />
Federico Manzoni as secretary of the board.<br />
Following the resignations of the Chairman Gino Trombi and of the board member Romain<br />
Zaleski, a meeting of the shareholders held on 10 th May 2008 appointed Corrado Faissola as<br />
Chairman of the Supervisory Board and Battista Albertani as a member of that board.<br />
The Supervisory Board is therefore currently composed as follows:<br />
Faissola Corrado<br />
Calvi Giuseppe<br />
Folonari Alberto<br />
Mazzoleni Mario<br />
Albertani Battista<br />
Bazoli Giovanni<br />
Bellini Luigi<br />
Cattaneo Mario<br />
Ferro Luzzi Paolo<br />
Fidanza Virginio<br />
Fontana Enio<br />
Garavaglia Carlo<br />
Gussalli Beretta Pietro<br />
Lucchini Giuseppe<br />
Lucchini Italo<br />
Chairman<br />
Senior Deputy Chairman<br />
Deputy Chairman<br />
Deputy Chairman<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
764 Report on Corporate governance
Manzoni Federico<br />
Moltrasio Andrea<br />
Musumeci Toti S.<br />
Orlandi Sergio<br />
Pedersoli Alessandro<br />
Perolari Giorgio<br />
Pivato Sergio<br />
Sestini Roberto<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
It has been verified in this respect that the members of the Supervisory Board are in<br />
possession of the legal requirements to hold their positions.<br />
The curricula vitae of the Chairman and of the Senior Deputy Chairman are available on the<br />
website of <strong>UBI</strong> <strong>Banca</strong>, while attachment A) lists the offices held by all board members in<br />
companies listed on regulated markets, including foreign regulated markets, and in finance,<br />
banking, insurance or large companies.<br />
REMUNERATION<br />
In addition to the reimbursement of expenses incurred in performing their duties in office,<br />
members of the Supervisory Board also receive remuneration determined for the entire period<br />
of office by a shareholders’ meeting at the time of their appointment. They are also assigned<br />
tokens for attendance at meetings of the Supervisory Board and also at meetings of<br />
commissions and committees formed by the Supervisory Board itself in the amount<br />
established by a shareholders’ meeting.<br />
Furthermore, in compliance with the corporate by-laws, after first consulting with the<br />
Remuneration Committee, the Supervisory Board sets the remuneration for the Chairman, the<br />
Senior Deputy Chairman, the Deputy Chairmen and the members of the Supervisory Board<br />
who have been assigned special duties, powers or functions.<br />
The relative amounts are reported in detail in the table prepared in accordance with Art. 78 of<br />
Consob Resolution No. 11797/1999 and also in the notes to the financial statements for the<br />
year ended 31.12.2008 which may be consulted.<br />
In this respect, in March 2009 the Supervisory Board decided, with the agreement of all its<br />
members, to reduce its total fixed remuneration by 20% for its last year of office in order to<br />
demonstrate its awareness of the economic and financial crisis that had hit the country and to<br />
signal its concern to those who had been hit either directly or indirectly by that crisis.<br />
INDEPENDENT BOARD MEMBERS<br />
The Supervisory Board has verified that all the members of the Supervisory Board in office are<br />
in possession of the requirements of independence in compliance with current law and the<br />
corporate governance code for listed companies.<br />
FUNCTIONS OF THE SUPERVISORY BOARD<br />
The functions of the Supervisory Board are set out in article 46 of the corporate by-laws,<br />
according to which the board:<br />
a) on the basis of proposals from the Appointments Committee, appoints and removes the<br />
members of the Management Board and its Chairman and Deputy Chairman, determining<br />
their remuneration after consulting with the Remuneration Committee; determines, after<br />
consulting with the Remuneration Committee, the remuneration of the members of the<br />
Management Board vested with special offices, duties or powers or assigned to committees;<br />
without prejudice to the provisions of article 32, paragraph 2, of the corporate by-laws, and<br />
without effect for members of the Management Board who vacate their positions, the<br />
Supervisory Board appoints the members of the Management Board in the first meeting<br />
following its own appointment by a shareholders’ meeting;<br />
b) on the basis of proposals from Management Board, sets the general guidelines and<br />
strategic policies of the Bank and of the Group;<br />
c) approves the separate financial statements and the consolidated financial statements<br />
prepared by the Management Board;<br />
d) authorises the Management Board to exercise powers to increase the share capital or to<br />
issue convertible bonds that may have been granted by a shareholders' meeting pursuant<br />
to article 2443 and/or article 2420-ter of the Italian Civil Code;<br />
765 Report on Corporate governance
e) attends the meetings of the Management Board, delegating the Chairman and the Senior<br />
Deputy Chairman to do so;<br />
(in this respect, in order to comply immediately with the Bank of Italy instructions of the 4 th<br />
March 2008, even before the related amendments to corporate by-laws are made, the<br />
Chairman and the Senior Deputy Chairman of the Supervisory Board decided to separately<br />
authorise every member of the Internal Control Committee to attend meetings of the<br />
Management Board);<br />
f) performs supervisory functions in compliance with article 149, paragraphs one and three<br />
of Legislative Decree No. 58 of 24 th February 1998;<br />
g) initiates liability actions against members of the Management Board;<br />
h) submits reports to the Bank of Italy pursuant to Article 70, paragraph seven of Legislative<br />
Decree No. 385 of 1 st September 1993;<br />
i) reports in writing to a shareholders' meeting convened pursuant to Art. 2364-bis of the<br />
Italian Civil Code on the supervisory activity performed, on omissions and reprehensible<br />
actions observed, and also at any other ordinary or extraordinary shareholders’ meetings<br />
convened, on matters falling within its sphere of responsibilities;<br />
l) informs the Bank of Italy without delay of all events or facts it may learn of in the<br />
performance of its duties, which might constitute a management irregularity or an<br />
infringement of banking regulations;<br />
m) expresses a mandatory opinion on the person responsible for preparing the corporate<br />
accounting documents pursuant to article 154-bis of Legislative Decree No. 58 of 24 th<br />
February 1998;<br />
n) on the basis of proposals from the Management board, grants authorisations for business<br />
and/or financial plans and the budgets of the Bank and of the Group prepared by the<br />
Management Board, as well as authorisations for strategic operations, while the latter,<br />
nevertheless, retains responsibility for the actions it takes. In particular, the Supervisory<br />
Board decides on the authorisations concerning:<br />
(i) proposals for transactions on the share capital, issuances of convertible and cum<br />
warrant bonds in the Bank’s shares, mergers and demergers; proposals for<br />
amendments to the corporate by-laws;<br />
(ii) purchases or sales by the Bank and its subsidiaries of controlling interests in<br />
companies with important strategic value or with a total value greater than 5% of the<br />
consolidated equity and also the purchase or sale of companies, business en bloc,<br />
business units of important economic and/or strategic value;<br />
(iii) investments and/or divestments of strategic importance and/or which involve<br />
commitments for the Bank where the total amount is greater than 5% of consolidated<br />
(iv)<br />
shareholders' equity for each transaction;<br />
the signing of commercial, co-operation or shareholders’ agreements of strategic<br />
importance, although authorisation by the Supervisory Board on the transactions<br />
indicated in the list above is not necessary if they are transactions specifically<br />
contemplated in the business plans already approved by the Supervisory Board;<br />
o) sets general policies concerning cultural and charitable initiatives and the image of the<br />
Bank and of the Group, with special regard to enhancing historical and artistic heritage,<br />
verifying that the initiatives that are planned are consistent with the objectives that are<br />
set;<br />
p) decides on mergers and demergers pursuant to articles 2505 and 2505-bis of the Italian<br />
Civil Code;<br />
q) exercises all other powers granted by regulations and legislation currently in force or by<br />
the corporate by-laws.<br />
The Supervisory Board also has exclusive powers, in compliance with article 2436 of the<br />
Italian Civil Code, for decisions concerning:<br />
a) the opening and closing down of secondary offices;<br />
b) reducing the share capital if a registered shareholder withdraws from the company;<br />
c) amendments to the corporate by-laws to comply with legislation and regulations, subject to<br />
consultation with the Management Board.<br />
The Supervisory Board and its members exercise powers pursuant to article 151-bis of<br />
Legislative Decree No. 58 of 24 th February 1998, in accordance with the terms and conditions<br />
stated therein.<br />
766 Report on Corporate governance
CHAIRMAN<br />
The duties of the Chairman of the Supervisory Board are listed in article 47 of the corporate<br />
by-laws. The Chairman of the Supervisory Board convenes – on his own initiative and, in any<br />
event, in the cases prescribed by law or the corporate by-laws – and chairs the meetings of the<br />
board itself, setting the agendas. He also considers proposals submitted by the Senior Deputy<br />
Chairman and the other Deputy Chairmen and ensures that adequate information on the<br />
matters on the agenda is provided to all the members of the Supervisory Board.<br />
The Chairman of the Supervisory Board maintains regular contacts with the Management<br />
Board, particularly through the Chairman and/or the Deputy Chairman of the Management<br />
Board and/or the Chief Executive Officer and ensures that the Supervisory Board is<br />
constantly informed of the performance of the Bank and the Group.<br />
<strong>MANAGEMENT</strong> OR SUPERVISORY POSITIONS HELD BY MEMBERS OF THE SUPERVISORY BOARD<br />
Summary table No. 1 attached to this report lists the number of other management and<br />
supervisory positions held by members of the Supervisory Board in other companies listed on<br />
regulated markets (including foreign markets) and in financial, banking, insurance or large<br />
companies, while attachment A provides details of those positions.<br />
MEETINGS<br />
The Supervisory Board must meet at least every 60 days. The location of the meetings<br />
alternates between the cities of Bergamo and Brescia and a meeting is held once a year in the<br />
city of Milan. The Supervisory Board is validly convened with the attendance of a majority of<br />
the members in office and it passes resolutions by a vote in favour of the absolute majority of<br />
the board members present. A qualified majority (vote in favour of at least 17 members) is<br />
required for amendments to the regulations of the Appointments Committee, for proposals to<br />
amend the corporate by-laws and for other matters for which the corporate by-laws require a<br />
qualified majority.<br />
Notices to convene meetings contain a list of the items on the agenda and this is sent at least<br />
four days before the date set for the meeting, except in urgent circumstances, when the timelimit<br />
may be reduced to one day.<br />
The Supervisory Board met 12 times in 2008 and the average length of meetings was 4 hours.<br />
Eleven meetings have been scheduled for the first eight months of 2009, five of which have<br />
already been held.<br />
Committees<br />
While it acknowledges the principle of collegial responsibility in performance of its duties, the<br />
Supervisory Board - in relation to its responsibilities, its composition and the characteristics of<br />
its members - decided to establish specific internal committees with the functions of<br />
submitting proposals and advice and performing controls, in compliance, amongst other<br />
things with the recommendations contained in the corporate governance code. These<br />
committees have been established to allow the Supervisory Board to make its decisions on a<br />
more informed basis and they are composed - as recommended by the corporate governance<br />
code - of more than three members:<br />
- APPOINTMENTS COMMITTEE 6 members<br />
- REMUNERATION COMMITTEE 5 members<br />
- INTERNAL CONTROL COMMITTEE 5 members<br />
- ACCOUNTS COMMITTEE 4 members<br />
The meetings of these committees are properly minuted. They may have access in the<br />
performance of their functions to the corporate functions and information required to perform<br />
their duties and they may make use of external consultants, with adequate funds provided for<br />
that purpose.<br />
APPOINTMENTS COMMITTEE<br />
The Appointments Committee is composed of the following members of the Supervisory Board:<br />
767 Report on Corporate governance
- Faissola Corrado as the Chairman<br />
- Calvi Giuseppe<br />
- Garavaglia Carlo<br />
- Mazzoleni Mario<br />
- Bazoli Giovanni<br />
- Folonari Alberto.<br />
The board member Federico Manzoni has been appointed as the secretary of the committee.<br />
This committee submits proposals for candidates to the position of supervisory board member<br />
for submission to a shareholders' meeting, including candidates for the highest positions (i.e.<br />
Chairman and Senior Deputy Chairman of the Supervisory Board of the Parent Bank). It also<br />
proposes candidates, to be appointed by the Supervisory Board, for the positions of Deputy<br />
Chairman of the Supervisory Board and member of the Management Board in the Bank,<br />
including candidates to the highest positions (i.e. Chairman and Deputy Chairman of the<br />
Management Board and the Chief Executive Officer of the Bank).<br />
The Appointments Committee also selects one third of the candidates for positions as members<br />
of the boards of directors and of the boards of statutory auditors of the main subsidiary banks<br />
of <strong>UBI</strong> <strong>Banca</strong>.<br />
The remaining two thirds of the candidates are designated by the Management Board of <strong>UBI</strong><br />
<strong>Banca</strong> Spa.<br />
The Appointments Committee met five times in 2008 and submitted proposals for appointment<br />
to corporate bodies as follows:<br />
- members and the highest positions of the Supervisory Board and the Management Board;<br />
- the composition of the Board of Directors of <strong>Banca</strong> Carime, <strong>Banca</strong> Popolare Commercio ed<br />
Industria, <strong>Banca</strong> Popolare di Ancona, <strong>Banca</strong> Popolare di Bergamo, Banco di Brescia,<br />
Centrobanca and <strong>Banca</strong> Regionale Europea.<br />
- the composition del board of statutory auditors of <strong>Banca</strong> Popolare di Ancona<br />
REMUNERATION COMMITTEE<br />
The Remuneration Committee is composed of the following members of the Supervisory Board:<br />
- Pedersoli Alessandro as the Chairman<br />
- Calvi Giuseppe<br />
- Lucchini Giuseppe<br />
- Musumeci Toti S.<br />
- Folonari. Alberto<br />
The board member Federico Manzoni has been appointed as the secretary of the committee.<br />
This committee submits proposals to the Supervisory Board for the remuneration of the<br />
following:<br />
- Chairman, Senior Deputy Chairman, Deputy Chairmen of the Supervisory Board, as well as<br />
the members of that board to whom specific positions, powers or functions have been<br />
assigned by the corporate by-laws or by the Supervisory Board; these proposals are<br />
formulated by the committee, in the absence of the parties directly concerned.<br />
- members of the Management Board;<br />
- the Chairman and Deputy Chairman of the Management Board, as well as members of the<br />
Management Board who have been assigned positions, powers or functions or who have been<br />
appointed to committees.<br />
As part of its duties, the committee is also called upon:<br />
- to express an opinion on the remuneration of the senior management of the Bank and of the<br />
governing bodies of the main subsidiary banks;<br />
- to define the guidelines for the determination by the relative bodies of the remuneration of<br />
the senior management of all the subsidiaries and the governing bodies of the other<br />
subsidiaries.<br />
The Remuneration Committee met five times in 2008, formulating proposals for the<br />
remuneration of senior management. In detail:<br />
- special remuneration for the board member responsible for supervising the internal control<br />
system pursuant to Art. 43 bis of the corporate by-laws;<br />
- incentive schemes for the senior management team for 2007<br />
768 Report on Corporate governance
- remuneration of the Chief Executive Officer<br />
- remuneration of the General Manager<br />
- remuneration of the members of the management and supervisory bodies of the main<br />
subsidiary banks.<br />
INTERNAL CONTROL COMMITTEE<br />
The Internal Control Committee is composed of the following members of the Supervisory<br />
Board, all of whom are enrolled in the register of auditors:<br />
- Pivato Sergio, as the Chairman<br />
- Bellini Luigi<br />
- Cattaneo Mario<br />
- Garavaglia Carlo<br />
- Lucchini Italo<br />
This committee has the task of assisting the Supervisory Board, with investigative, consultative<br />
and proposal making functions, in its responsibilities concerning the system of internal control<br />
which concerns all corporate departments and organisational units with regard to: their<br />
appropriateness to ensure constant and continuous monitoring of risks; the effectiveness and<br />
efficiency of corporate processes; protecting the value of assets and protection against losses;<br />
the reliability and integrity of accounting and operating information; compliance of operations<br />
with both policies set by corporate governing bodies and internal and external regulations.<br />
The committee generally performs these duties with the assistance of the Audit Area – a<br />
function which reports to the Supervisory Board – through the chief of that area who as the<br />
internal control officer makes special reports to the committee, and also with the assistance of<br />
the other internal control units of the Bank, including the risk management and the<br />
compliance functions in particular.<br />
The committee reports to the Supervisory Board at least every six months at the time of<br />
approval of the annual financial statements and the examination of the half-year report on its<br />
activities and on the adequacy of the internal control system of the issuer and of strategically<br />
important subsidiaries.<br />
The function of assisting the Supervisory Board with matters relating to the financial<br />
statements is the responsibility of the Accounts Committee.<br />
In order to provide constant information on the main business operations, one or more<br />
members of the Internal Control Committee attends the meetings of the Management Board on<br />
a rotating basis and reports back to the other members of the committee in its next meeting.<br />
When necessary, the committee also uses all other channels of information required to perform<br />
its activities, including support from outside consultants if considered appropriate.<br />
The Internal Control Committee met 24 times in 2008 concentrating mainly on the following:<br />
• the most important issues concerning the Bank's internal control system and the<br />
legislative framework, as follows:<br />
- corporate governance mechanisms with regard, amongst other things, to the provisions<br />
contained in the corporate governance code for listed companies, in the supervisory<br />
instructions issued by the Bank of Italy and in Legislative Decree No. 231/2001;<br />
- relations with the boards of statutory auditors and with the supervisory bodies<br />
pursuant to Legislative Decree No. 231/2001 of subsidiaries and the respective areas<br />
of intervention;<br />
- the policy-setting and co-ordination activities of the Parent Bank;<br />
- risk management and capital requirement calculation processes pursuant to Basel 2;<br />
- the configuration and co-ordination of second level (risk management and compliance)<br />
and third level (internal audit) control activities;<br />
- the structure, staff and operational tools of the Group internal auditing function and its<br />
interaction with other business units;<br />
- modifications of corporate procedures to comply with the MiFID legislation and new<br />
anti-money laundering developments;<br />
• periodic and specific reporting on the outcomes of analyses performed by the internal<br />
auditing function;<br />
769 Report on Corporate governance
• on relations with the Supervisory Authorities, with specific regard to requests for selfanalysis<br />
concerning specific transactions and inspections carried out at subsidiary<br />
companies.<br />
ACCOUNTS COMMITTEE<br />
The Accounts Committee is composed of the following members of the Supervisory Board:<br />
- Cattaneo Mario as the Chairman<br />
- Garavaglia Carlo<br />
- Manzoni Federico<br />
- Orlandi Sergio.<br />
Its function is to support the Supervisory Board by furnishing advice and submitting<br />
proposals in areas relating to the annual separate and consolidated financial statements and<br />
to interim financial statements.<br />
The committee generally performs its functions by obtaining information from the financial<br />
reporting officer and from the independent auditors. It maintains contacts with regard to<br />
financial reporting with the staff of the main subsidiaries.<br />
The Accounts Committee met 18 times in 2008 concentrating mainly on examinations of the<br />
separate and consolidated financial statements of the Parent Bank, the half year financial<br />
report and the quarterly reports to the end of March and September. In this context it<br />
conducted detailed study on accounting matters connected with the unification, already<br />
completed, of the accounting IT systems used by the banks in the Group.<br />
With regard to the Basel 2 project, the accounts committee supported the Supervisory Board<br />
in the various implementation stages mainly on technical aspects affecting accounting,<br />
administrative and financial reporting matters connected mainly, but not exclusively, with<br />
quantification issues of the three pillars.<br />
The committee reports to the Supervisory Board on its activities at least every six months at<br />
the time of approval of the annual financial statements and the examination of the half-year<br />
report.<br />
Management Board<br />
APPOINTMENT AND COMPOSITION<br />
The Management Board is composed of 11 Members appointed by the Supervisory Board.<br />
The members of the Management Board remain in office for three financial years and may be<br />
re-elected. Their term of office expires on the date of the Supervisory Board meeting convened<br />
to approve the financial statements for their last year in office. The following rules apply:<br />
(i)<br />
(ii)<br />
at least one of the members of the Management Board must hold the requirements of<br />
independence pursuant to Art. 148, paragraph three of Legislative Decree No. 58 of 24 th<br />
February 1998;<br />
at least the majority of the members must have at least three years experience in<br />
management and/or professional activities in financial and/or banking and/or insurance<br />
companies in Italy or abroad.<br />
Following the resignation of the Deputy Chairman and member of the Management Board,<br />
avv. Corrado Faissola, in a meeting of 10 th May 2008 the Supervisory Board appointed Franco<br />
Polotti as a member of the Management Board and Flavio Pizzini as Deputy Chairman of the<br />
Management Board.<br />
On 27 th November 2008 the Chief Executive Officer, dott. Giampiero Auletta Armenise,<br />
resigned with effect from 1 st December 2008 from his executive position, with the consequent<br />
powers that had been conferred on him by the Management Board.<br />
Following his resignation as CEO, the Supervisory Board decided to increase the number of<br />
members of the Management Board to 11 and unanimously appointed dott. Victor Massiah,<br />
the General Manager of <strong>UBI</strong> <strong>Banca</strong>, to that board.<br />
770 Report on Corporate governance
The Management Board – again with effect from 1 st December 2008 – appointed Victor<br />
Massiah to the position of Chief Executive Officer, while he resigned from his position as<br />
General Manager at the same time.<br />
The Management Board is currently composed of the following members:<br />
Zanetti Emilio<br />
Pizzini Flavio<br />
Massiah Victor<br />
Auletta Armenise Giampiero<br />
Bertolotto Piero<br />
Boselli Mario<br />
Camadini Giuseppe<br />
Cera Mario<br />
Frigeri Giorgio<br />
Gusmini Alfredo<br />
Polotti Franco<br />
Chairman<br />
Deputy Chairman<br />
Chief Executive Officer<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
member<br />
The curricula vitae of the Chairman, the Deputy Chairman and the Chief Executive Officer are<br />
available on the website of <strong>UBI</strong> <strong>Banca</strong>, while attachment B) lists the positions held by all the<br />
board members in companies listed in regulated markets, including foreign markets, and in<br />
financial, banking, insurance or large companies. The Management Board is appointed for<br />
three financial years, expiring on the date of the Supervisory Board meeting convened to<br />
approve the financial statements for 2009. It has been verified in this respect that the<br />
members of the Management Board are in possession of the legal requirements to hold their<br />
positions.<br />
As a general rule and with the exception of resolutions that must be passed by a qualified<br />
majority, the attendance of more than half the members in office is required for meetings of<br />
the Management Board to be valid.<br />
REMUNERATION<br />
In compliance with the corporate by-laws, after first consulting with the Remuneration<br />
Committee, the Supervisory Board sets the remuneration of the Management Board and of its<br />
members to whom special offices, duties or powers have been assigned.<br />
The relative amounts are reported in detail in the table prepared in accordance with Art. 78 of<br />
Consob Resolution No. 11797/1999 and also in the notes to the financial statements for the<br />
year ended 31.12.2008 which may be consulted.<br />
The remuneration of the members of the Management Board is not linked to the operating<br />
results achieved by the Bank.<br />
As concerns the current Chief Executive Officer, as the highest ranking executive officer of the<br />
Bank a part of his remuneration is variable, determined on the basis of criteria set for all<br />
senior executives.<br />
No-one is the beneficiary of share-based incentive plans.<br />
In March 2009 the Management Board decided to reduce their fixed remuneration by 20%<br />
from 1 st January 2009, on similar grounds to those which motivated the members of the<br />
Supervisory Board. Furthermore, the Chairman and Deputy Chairman of the Management<br />
Board in particular decided to reduce their remuneration for their positions by 50%.<br />
EXECUTIVE AND NON-EXECUTIVE BOARD MEMBERS<br />
In compliance with instructions issued by the Bank of Italy on the organisation and corporate<br />
governance of banks the Management Board consists mainly of executive members, consistent<br />
with the function of strategic supervision assigned to the Supervisory Board (see the details<br />
provided in summary table No. 2).<br />
The members of the Management Board are in fact actively involved in the management of the<br />
Bank in compliance with policies approved by the Supervisory Board and submitted to it by<br />
the Management Board itself, which as specifically required by the corporate by-laws performs<br />
its main activities exclusively on a collegial basis with no powers to delegate authority.<br />
In addition to the Chief Executive Officer, the corporate by-laws (article 39) also assign powers<br />
and functions to the Chairman and the Deputy Chairman which underline their involvement<br />
in the management of the Bank.<br />
771 Report on Corporate governance
The management commitments and responsibilities of the executive board members apply not<br />
only to the sphere of the Management Board, but also at Group level by appointments to<br />
positions in the governing bodies of the main subsidiaries of <strong>UBI</strong> <strong>Banca</strong>. This actively helps to<br />
ensure that the various member companies of the Group comply with instructions issued by<br />
the Parent Bank in the exercise of its activities of management and co-ordination.<br />
INDEPENDENT BOARD MEMBERS<br />
Verification of the requirements of independence pursuant to Article 147 quater of the<br />
Consolidated Finance Act has been performed. In accordance with the corporate by-laws,<br />
Alfredo Gusmini qualifies as independent on the Management Board, pursuant to the<br />
legislation just mentioned.<br />
FUNCTIONS OF THE <strong>MANAGEMENT</strong> BOARD<br />
The functions of the Management Board are set out in article 37 of the corporate by-laws,<br />
according to which the Management Board is responsible for managing the Bank in<br />
compliance with the general guidelines and strategic policies approved by the Supervisory<br />
Board and submitted to it by the Management Board itself. To achieve this, it performs all the<br />
operations necessary, useful or in any case advisable to implement the company objects,<br />
whether of an ordinary or extraordinary operating nature. In addition to those powers which<br />
by law may not be delegated, decisions concerning the following are the exclusive<br />
responsibility of the Management Board:<br />
a) setting the general programmes and strategic policies of the Bank and the Group, on the<br />
basis of proposals from the Chief Executive Officer, to be submitted to Supervisory Board<br />
for approval;<br />
b) granting and revoking the powers of the Chief Executive Officer. The selection of the<br />
member of the Management Board to whom powers are granted must be performed on the<br />
basis of a proposal from the Supervisory Board, decided in turn, subject to prior<br />
designation by the Appointments Committee. If this designation has not been made by the<br />
Appointments Committee with the quorum required by the relative regulations, the<br />
proposal submitted by the Supervisory Board to the Management Board shall be decided<br />
with the vote in favour of at least 17 members of the Supervisory Board. Revocation of the<br />
powers is decided by the Management Board with the vote in favour of at least 8 members<br />
of the Management Board (or of all the members minus one, if the Management Board<br />
consists of 7 or 8 members), after consultation with the Supervisory Board;<br />
c) the formulation, on the basis of proposals from the Chief Executive Officer, of the business<br />
and/or financial plans and the budgets of the Bank and the Group to be submitted to the<br />
Supervisory Board for approval pursuant to Art. 2409-terdecies of the Italian Civil Code;<br />
d) the risk management and internal control policies;<br />
e) conferring, modifying or revoking authorisations and powers and assigning specific<br />
functions or authorisations to one or more board members;<br />
f) appointing and removing the General Manager, the Joint General Manager and the<br />
members of general management, defining their functions and responsibilities and also<br />
appointing the senior management of the Group;<br />
g) designating members of the Board of Directors and of the Board of Statutory Auditors of<br />
the companies belonging to the Group, without prejudice to the provisions of article 36,<br />
paragraph 2, letter e) of the corporate by-laws;<br />
h) acquiring and selling equity interests;<br />
i) opening and closing down branches and representative offices;<br />
l) determining the organisational, administrative and accounting structure of the Bank and,<br />
without prejudice to the exclusive powers of the Supervisory Board pursuant to article 49<br />
of the corporate by-laws, setting up committees or commissions with advisory,<br />
investigative, control or co-ordinating functions;<br />
m) determining the criteria for the co-ordination and management of Group member<br />
companies and also the criteria for implementing instructions issued by the Bank of Italy;<br />
n) subject to the mandatory opinion of the Supervisory Board, appointing and removing the<br />
financial reporting officer, pursuant to article 154-bis of legislative Decree No. 58 of 24 th<br />
February 1998, and determining the relative remuneration. In addition to the requirements<br />
of integrity prescribed by the current regulations in force for persons performing<br />
administrative and management functions, the financial reporting officer must also<br />
772 Report on Corporate governance
possess requirements of professionalism with specific administrative and accounting<br />
expertise in the banking, finance, property or insurance fields. This expertise, to be verified<br />
by the Management Board, must have been acquired through experience in positions of<br />
appropriate levels of responsibility for a reasonable period of time and in comparable<br />
companies.<br />
o) appointing or removing the internal control officer and those officers whose appointment is<br />
the sole responsibility by law and regulations in force of the Management Board;<br />
p) preparing separate financial statements and consolidated financial statements for<br />
approval;<br />
q) exercising powers to increase the share capital granted pursuant to Art. 2443 of the Italian<br />
Civil Code and also to issue convertible bonds pursuant to Art. 2420-ter of the Italian Civil<br />
Code, subject to authorisation by the Supervisory Board;<br />
r) obligations of the Management Board pursuant to articles 2446 and 2447 of the Italian<br />
Civil Code;<br />
s) formulation of merger or demerger plans;<br />
t) proposing transactions of significant strategic, economic, financial and capital importance<br />
to the Supervisory Board for authorisation;<br />
u) definition of criteria to identify related party transactions for which responsibility will lie<br />
with the board itself.<br />
Pursuant to Article 38 of the corporate by-laws, the Management Board reports to the<br />
Supervisory Board on operations in general and on the most important transactions in terms<br />
of size and nature performed by the Bank and its subsidiaries and it reports in any event on<br />
transactions in which the members of the Management Board have a personal or third party<br />
interest. The reporting is performed at meetings of the Supervisory Board and in any case, at<br />
least quarterly; it may also be performed in writing.<br />
CHAIRMAN<br />
The duties of the Chairman of the Management Board are listed in article 39 of the corporate<br />
by-laws. More specifically the Chairman of the Management Board, who acts as the Bank's<br />
legally authorised representative and authorised signatory, performs the tasks that are<br />
typically carried out by the Chairman of a company’s management body, which he performs by<br />
liaising with the other by-law regulated bodies where appropriate.<br />
<strong>MANAGEMENT</strong> OR SUPERVISORY POSITIONS HELD BY MEMBERS OF THE <strong>MANAGEMENT</strong> BOARD<br />
Summary table No. 2 attached to this report lists the number of other management and<br />
supervisory positions held by members of the Management Board in other companies listed on<br />
regulated markets (including foreign markets) and in financial, banking, insurance or large<br />
companies, while attachment B provides details of those positions. Article 30 of the corporate<br />
by-laws states that the members of the Management Board may be directors or general<br />
managers of rival companies; the authorisation of the Supervisory Board is however required<br />
when the company concerned is outside the Group or is not partly owned by the Bank.<br />
MEETINGS<br />
The Management Board meets at least once a month and also at any time the Chairman<br />
considers it appropriate or when a request is made by five members. Meetings take place<br />
alternating between the city of Bergamo and the city of Brescia and once a year in the city of<br />
Milan. The Management Board met 31 times in 2008 and the average length of meetings was<br />
5,30 hours. In order to facilitate attendance at board meetings, article 34 of the corporate bylaws<br />
allows remote attendance through the use of appropriate audio/videoconference and/or<br />
teleconference connections.<br />
Resolutions of the Management Board are passed by open vote, with the vote in favour of the<br />
majority of the members present.<br />
In compliance with Borsa Italiana regulations, in January <strong>UBI</strong> <strong>Banca</strong> announced its calendar<br />
of corporate events for 2008 to the market (and published it on its website), with the dates of<br />
board meetings for the approval of operating and financial results.<br />
Twenty five meetings have been scheduled for 2009, seven of which have already been held.<br />
773 Report on Corporate governance
Chief Executive Officer<br />
Article 43 of the corporate by-laws states that, in compliance with the law and the corporate<br />
by-laws, the Management Board delegates those powers for which it does not hold exclusive<br />
responsibility to a Chief Executive Officer. The selection of the executive board member on<br />
whom powers are to be granted must be performed on the basis of a proposal from the<br />
Supervisory Board, decided in turn, subject to prior designation by the Appointments<br />
Committee.<br />
In a meeting held on 27 th November 2008, the Management Board, in compliance with the<br />
corporate by-laws, conferred the following powers on the Chief Executive Officer:<br />
- to supervise the management of the Bank and of the Group;<br />
- to supervise the strategic co-ordination and the operational control of the Bank and the<br />
Group;<br />
- to supervise the implementation of the organisational and business structure decided by the<br />
Management Board and approved by the Supervisory Board;<br />
- to determine working directives for the General Management;<br />
- to oversee the integration of the new Group, consulting and involving the Deputy Chairman<br />
and the Management Board;<br />
- to submit management policies, the business and strategic plan and the budget to the<br />
Management Board and to supervise their implementation through the General<br />
Management;<br />
- to propose budgetary policy and policies on the optimisation of the use and enhancement of<br />
human resources and to submit financial statements and periodic financial reports to the<br />
Management Board for approval;<br />
- to propose appointments to the senior operational and executive management of the Group<br />
to the Management Board, in agreement with the Chairman and Deputy Chairman of the<br />
Management Board and after consultation with the General Manager;<br />
- to promote integrated risk management.<br />
The Chief Executive Officer reports quarterly to the Management Board and to the Supervisory<br />
Board on operating performance and foreseeable developments and on the most important<br />
transactions performed by the company and its subsidiaries. He also reports monthly to the<br />
Management Board and at least every 60 days to the Supervisory Board on the main<br />
accounting results of the Bank, its main subsidiaries and the Group.<br />
Board Member Appointed to Supervise the System of Internal Control<br />
On 15 th June 2007 the Management Board appointed Alfredo Gusmini as the Internal Control<br />
Officer responsible for supervising the functions of the internal control system, conferring<br />
powers on him and assigning functions to him in compliance with article 43-bis of the<br />
corporate by-laws.<br />
Board of Arbitrators<br />
The Board of Arbitrators consists of a Chairman, two full members and two alternate<br />
members, elected by a shareholders' meeting from amongst the registered shareholders of the<br />
Bank or others.<br />
The Board of Arbitrators is composed as follows:<br />
Donati Giampiero<br />
Caffi Mario<br />
Lega Giovanni<br />
Rota Attilio<br />
Usuelli Emilio<br />
Chairman<br />
Full member<br />
Full member<br />
Alternate member<br />
Alternate member<br />
The arbitrators remain in office for three years and may be re-elected. The current board of<br />
arbitrators will conclude its mandate on the date of the shareholders' meeting called to<br />
approve the financial statements for 2008.<br />
Arbitrators provide their services free of charge, except for the reimbursement of expenses.<br />
774 Report on Corporate governance
If a full arbitrator vacates his position during his three year period of office he is replaced by<br />
the most senior alternate member by age. If the chairman of the arbitrators vacates his<br />
position, the chairmanship is taken by the most senior full arbitrator by age for the remainder<br />
of the three year period.<br />
Appeal may be made to the Board of Arbitrators to settle any disputes that may arise between<br />
the Bank and/or registered shareholders over the interpretation or application of the corporate<br />
by-laws and over any other resolutions or decision taken by the governing bodies of the Bank<br />
concerning its business. It decides as a friendly arbiter by absolute majority vote. Without<br />
prejudice to the legislation and regulations currently in force, application to the Board of<br />
Arbitrators is not compulsory. Its decisions are not binding on the parties and do not<br />
constitute a hindrance to taking disputes before the courts or any other any authority with<br />
jurisdiction for settlement. The Board of Arbitrators regulates its own proceedings as it deems<br />
appropriate without being bound by procedural formalities. The Management Board and the<br />
General Manager or an employee designated by him are required to provide the arbitrators<br />
with all the information that they may request concerning dispute to be settled.<br />
General Management<br />
According to the by-laws, the Management Board appoints a General Manager and a Joint<br />
General Manager and it may also appoint one or more Deputy General Managers, on the basis<br />
of the organisation chart drawn up by the Management Board itself, which determines their<br />
powers and functions.<br />
In a meeting held on 27 th November 2008, after dr. Victor Massiah took up his position as Chief<br />
Executive Officer and consequently resigned from his position as General Manager, in<br />
compliance with the corporate by-laws, the Management Board appointed rag. Riccardo Sora as<br />
General Manager with effect from 1 st December 2008, conferring the following powers and<br />
responsibilities on him:<br />
- chief operating officer;<br />
- chief of personnel;<br />
- he generally (unless otherwise indicated by the management bodies<br />
responsible) supervises the implementation of decisions taken by the<br />
Management Board and the Chief Executive Officer;<br />
- he manages everyday business in compliance with the policies set by the<br />
governing bodies;<br />
- he attends Management Board meetings with a consultative vote;<br />
- he co-ordinates the operations of the bank and the Group.<br />
Rag. Sora was also appointed interim chief of the Administration and Depository banking Macro<br />
Area.<br />
The Management Board appointed Graziano Caldiani, who is also the Chief of the Human<br />
Resources and Organisation Macro Area, as Joint General Manager and appointed a further<br />
six Deputy General Managers on whom the following responsibilities within the Bank have<br />
been conferred:<br />
Iorio Francesco<br />
Leidi Rossella<br />
Medda Ettore<br />
Rigamonti Pierangelo<br />
Sonnino Elvio<br />
Chief of the Commercial Macro Area<br />
Chief of the Strategy and Control Macro Area<br />
Chief of the Legal and Corporate Affairs Macro Area<br />
and the Finance and International Macro Area<br />
Operational Chairman of <strong>UBI</strong> Sistemi e Servizi<br />
Managing Director of <strong>UBI</strong> Sistemi e Servizi<br />
Manager charged with preparing financial reports (Financial Reporting<br />
Officer)<br />
In a meeting held on 17 th April 2007, the Management Board appointed, with the favourable<br />
opinion of the Supervisory Board, dr.ssa Elisabetta Stegher – the current Chief of the Bank's<br />
775 Report on Corporate governance
Administration and Tax Area – as the Financial Reporting Officer pursuant to Article 154-bis<br />
of the Consolidated Finance Act.<br />
The following responsibilities have been conferred on that senior manager:<br />
- to certify that market disclosures together with the related financial reports, including<br />
interim reports, are reliably based on the records contained in corporate documents and<br />
accounting records;<br />
- to put adequate administrative and accounting procedures in place for the preparation of<br />
financial reports and other financial disclosures;<br />
- to certify – jointly with the Chief Executive Officer, by means of a specific report, attached<br />
to the separate financial statements, to the consolidated financial statements and to halfyear<br />
reports – the appropriateness and effective application in the relative period of the<br />
procedures just mentioned and that the disclosures correspond to the records contained in<br />
the corporate accounting documents and records and provide a true and fair view of the<br />
capital, operating and financial position of the Bank and the Group.<br />
The system of internal control<br />
The system of internal control is a set of rules, procedures and organisational units designed<br />
to enable the business of the Bank to be performed in a healthy and proper manner consistent<br />
with its objectives by means of an appropriate process of identifying, measuring, managing<br />
and monitoring the principal risks. As such it constitutes an essential part of the corporate<br />
governance system of <strong>UBI</strong> <strong>Banca</strong> and the companies of the Group.<br />
<strong>UBI</strong> <strong>Banca</strong> has adopted an internal control system which, in compliance with the principles of<br />
the corporate governance code, with instructions issued by the Bank of Italy and with the bylaws<br />
of the Bank, assigns functions and responsibilities to the various officers who, in<br />
constant consultation with each other and supported also by regular information flows,<br />
contribute to the efficiency and effectiveness of the system of control itself.<br />
The process of assessing the internal control system and verifying its adequacy and effective<br />
functioning form part of the responsibilities of the corporate bodies which fulfil strategic<br />
supervision management and control functions. In order to accomplish this, the Supervisory<br />
Board makes use of the Internal Control Committee which it forms directly itself (the<br />
composition, powers and functioning of the Internal Control Committee have already been<br />
examined in this report in the section specifically on that committee). The Management Board<br />
has appointed an executive member from amongst its members with responsibility for<br />
supervising the functioning of the internal control system.<br />
The senior management have approved a document containing the "Principles for the<br />
organisation of the internal control system of the <strong>UBI</strong> Group", designed to favour the most<br />
appropriate organisation of the internal control system of the Bank and the Group. These<br />
principles are designed for application on a permanent basis to all Group member companies<br />
and constitute a point of reference for the definition and implementation of all the<br />
components of the system of internal control.<br />
The main contents of the principles can be summarised as follows:<br />
- a systemic vision of governance and control designed to achieve high levels of effectiveness<br />
and efficiency avoiding overlap and/or gaps in control mechanisms and risk management;<br />
- consistency in the organisation processes of the Bank and the Group which, based on the<br />
Group’s mission, identifies values, defines objectives and pinpoints risks which hinder their<br />
achievement and implements appropriate responses;<br />
- compliance with legislation and regulations, even before they become compulsory, as a<br />
distinguishing feature and key factor of success for enhancing customer relations and,<br />
lastly, creating value for all stakeholders.<br />
The senior management of the Bank has also formulated specific risk management policies<br />
that apply to the Group operations.<br />
The responsibilities for internal controls of various roles in the Bank are identified within the<br />
context of those policies, as follows:<br />
776 Report on Corporate governance
• line controls (first level), the responsibility of the managers of organisational or process<br />
units;<br />
• controls on risks (second level), the responsibility of specialist functions (Risk<br />
Management, Risk Capital & Policies, Compliance, Operational Control and CFO), whose<br />
objectives are to assist in the definition of risk measurement methods, to verify<br />
compliance with limits assigned to different operating functions and to verify that the<br />
operations of single production areas are consistent with the risk-yield objectives set for<br />
them;<br />
• internal audit (third level), performed by the Parent bank and Group Audit Area.<br />
The first two types of control (first and second level), not only satisfy the requirements for<br />
reporting to supervisory body, but are also closely related on a practical level to the daily<br />
exercise of their responsibilities in relation to internal controls by the management body and<br />
the general management.<br />
More specifically, those responsible for second level controls are required to continuously<br />
identify, prevent and measure risk situations by adopting appropriate valuation models and to<br />
assist in the formulation of risk assumption and management policies with regard, amongst<br />
other things, to the maximum limits on exposure to them. Adequate reporting is made to the<br />
Supervisory Board, the Management Board and the General Management on current and<br />
future exposure to risk which also includes a special tableau de bord useful, amongst other<br />
things, for monitoring and assessing the system of internal controls.<br />
With regard to compliance controls, <strong>UBI</strong> <strong>Banca</strong> created a special function named “Compliance<br />
Staff”, which is on the staff of the General Manager and reports directly to him, in order to<br />
implement supervisory instructions issued by Bank of Italy in July 2007, which implemented<br />
standards set by the Basel Committee on this matter.<br />
In implementation of directives proposed by the Management Board and issued by the<br />
Supervisory Board by means of a special “compliance policy", the compliance staff diffuses<br />
these and supervises implementation of them.<br />
The regulatory functions of the Compliance Staff also include management of the risk of non<br />
compliance with regulations, whether these are of a generic external nature (laws, supervisory<br />
regulations – the Bank of Italy, Consob – Italian securities market authority – etc.) or a self<br />
regulatory nature (codes of conduct, internal regulations, etc.). The objectives are as follows:<br />
• to guarantee compliance with regulations by corporate processes and therefore<br />
appropriate conduct by all staff;<br />
• to guarantee that customers and investors interests are safeguarded;<br />
• to co-operate in the policy to establish relations of trust with all stakeholders;<br />
• to manage compliance processes across the Bank and the Group on a centralised basis,<br />
by introducing functional reporting to benefit from the co-operation of specialist<br />
functions (legal, organisational, risk management, IT, human resources, etc.) available at<br />
the Parent Bank and in different Group member companies and also from the cooperation<br />
of local liaison and compliance officers where present in the network banks<br />
and other Group member companies.<br />
In compliance with joint Bank of Italy - Consob Regulations issued on 29 th October 2007, this<br />
function is also responsible for compliance controls with regard to the adequacy and<br />
effectiveness of the procedures adopted for providing investment services.<br />
The purpose of the internal audit function (third level) is to make an independent assessment<br />
of the organisation and functioning of the system of internal control or parts of it in support of<br />
senior management in its responsibilities. The mission of the Parent bank and Group Audit<br />
Area, to which the Internal Audit Area belongs, can be summarised very briefly as to<br />
systematically monitor the adequacy of risk controls at group level, to assess the functioning<br />
of the Group internal control system and to help to improve it (in terms of effectiveness and<br />
efficiency).<br />
The internal audit function reports to the Supervisory Board through the Internal Control<br />
Committee.<br />
The head of the internal audit function also fulfils the role of internal control officer,<br />
responsible for verifying that the internal control system is adequate, fully operative and<br />
functioning at all times. He also reports on his work to the Supervisory Board through the<br />
Internal Control Committee and to the Management Board through the executive member<br />
responsible for supervising the functioning of the internal control system. More specifically, he<br />
reports on the procedures by which risk management is performed and on compliance with<br />
777 Report on Corporate governance
plans formulated to limit risk and expresses an opinion on the appropriateness of the internal<br />
control system to ensure compliance with risk policies set by senior management.<br />
In relation to the internal control system of the Bank and the Group, a general description of<br />
which has just been given, to the reports of the units of the Bank responsible for risk controls<br />
and to the independent opinion expressed by the internal audit function on the internal control<br />
system and with account taken of the intense activity in progress to complete the process of<br />
Group integration and of the recent changes in the regulatory context, an opinion of substantial<br />
adequacy is expressed on the organisation and the functioning of the internal control system.<br />
Organisation, Management and Control Model pursuant to<br />
Legislative Decree No. 231/2001 and the relative Supervisory<br />
Body<br />
<strong>UBI</strong> <strong>Banca</strong> has put in place its own organisational, management and control model pursuant<br />
to Legislative Decree No. 231/01, with a resolution of the Management Board passed on 6 th<br />
November 2007 and of the Supervisory Board on 19 th December 2007. <strong>UBI</strong> <strong>Banca</strong>'s “231”<br />
Model is set out in the "Document describing the organisational, management and control<br />
model pursuant to Legislative Decree No. 231/01" and is composed of:<br />
• a general part outlining the legislative framework, the components of the Bank's<br />
governance model and the organisational structure, the composition and characteristics<br />
of the Supervisory Body, the disciplinary system, the training and communication plan<br />
and the criteria for updating and modifying the model;<br />
• a special part, which associates each type of offence (relating to the administrative<br />
liability of entities) with one or more "sensitive activities" that may be present in<br />
corporate operations and prescribes specific "control standards/protocols" which must<br />
be observed in the management of those operations.<br />
In that same meeting of 6 th November 2007, the Management Board of <strong>UBI</strong> <strong>Banca</strong> also decided<br />
to implement initiatives required to ensure standard compliance with Legislative Decree No.<br />
231/2001 at Group level. Consequently, a specific Group project was commenced in 2008<br />
consisting of two modules.<br />
The first module of the project is designed to update and add to the “document describing the<br />
model” of the Parent Bank and its subsidiaries, in relation to:<br />
• changes to regulations that have occurred since the date of the adoption of the previous<br />
version of the “model”;<br />
• corporate and internal organisational changes as a result of the merger between the two<br />
former Groups, BPU and BL.<br />
Completion of this module is scheduled for before the end to the first quarter of 2009.<br />
The second module of the project, which will commence on completion of the update of the<br />
models, involves action designed to implement “control standards” in the organisational,<br />
regulatory and operational systems of each individual company. In this respect some<br />
preparatory work for the second module has already been commenced as part of the<br />
“processes programme”, such as for example on the governance framework for corporate<br />
processes and controls, the development of standard documentation for a “pilot process” and<br />
modification to the target instrument for mapping processes.<br />
Furthermore, study commenced within the Group during the current year on decisions made<br />
concerning the Supervisory Body pursuant to Legislative Decree No. 231/01, dictated by a<br />
series of factors including the continuous increase in the number of types of “presumed<br />
offence” with liability of the entities; the dictates of sector guidelines; the considerable<br />
organisational complexity and size of the <strong>UBI</strong> Group; the debate on the role of the compliance<br />
function and its level within the internal control system of the <strong>UBI</strong> Group.<br />
778 Report on Corporate governance
These reflections led the Management Board and the Supervisory Board to take decisions on<br />
the improved organisation of the 231 Supervisory Body of the Parent Bank and its<br />
subsidiaries. More specifically, on 25 th November 2008 the Management Board implemented<br />
recommendations of the Supervisory Board, by passing resolutions to:<br />
• appoint a new Supervisory Body for <strong>UBI</strong> <strong>Banca</strong> pursuant to Legislative Decree No.<br />
231/2001 composed, as from 1 st January 2009, of two members of the Management<br />
Board, the acting chief of the Legal Affairs Area, the acting chief of the Compliance<br />
Function and an external professional and the dissolution on the same date of the<br />
Supervisory Body existing until 31 st December 2008 (appointed by resolutions of the<br />
Management Board of 13 th July 2007 and 31 st July 2007);<br />
• make recommendations to subsidiaries concerning the composition of their supervisory<br />
bodies as follows:<br />
o network banks and “major” companies: collegial body with three members, consisting<br />
of a member of the board of directors, a professional expert in the field and the<br />
compliance officer/contact;<br />
o Group member companies with less organisational complexity: a single member<br />
body, leaving individual companies free to appoint a member of the board of directors<br />
or a compliance officer/contact, where one exists.<br />
Finally, in compliance with the requirements under <strong>UBI</strong> <strong>Banca</strong>’s 231 model concerning<br />
relations with corporate bodies whereby the Supervisory Body is required to report on an equal<br />
basis to the Supervisory Board and to the Management Board, the Supervisory Body made<br />
reports to the corporate bodies on its activities with particular reference to its duties regarding<br />
the implementation of the model.<br />
Related party transactions<br />
The Bank pays particular attention when performing transactions with related parties to<br />
ensure they are carried out properly both in form and substance.<br />
More specifically, the Management Board is obliged to specifically approve those transactions<br />
with related parties that are atypical, unusual or capable of having a significant effect on the<br />
assets of the Bank.<br />
The Bank has put special procedures in place for monitoring, reporting and taking decisions<br />
on related party transactions.<br />
In addition to transactions already reserved by law or by the corporate by-laws exclusively to<br />
the authority of the Management Board, transactions to be performed with “related parties”<br />
must also be subject to prior authorisation by the board itself, including intragroup<br />
transactions, of significant operating, capital and financial importance, such as for example:<br />
• the purchase and sale of properties;<br />
• the purchase and sale of equity investments (even if they do not give rise to changes in<br />
the banking Group), companies or lines of business;<br />
• partnerships or joint venture agreements;<br />
• transactions of a financial or commercial nature, with an economic value of greater than<br />
10 million euro, provided that they are not normal transactions, i.e. part of the normal<br />
business of the Bank concluded under normal market terms and contractual conditions<br />
practised with customers;<br />
• multi-year general agreements for the provision of intragroup services;<br />
• the grant to Companies in the banking Group of:<br />
(i) credit lines that are not destined to support the subsidiary’s normal business;<br />
subordinated loans and other subordinated assets, that are eligible for inclusion in<br />
the subsidiary’s supervisory capital, if the amount exceeds 25% of the tier 1 capital<br />
of each company;<br />
(ii) loans and guarantees, directly or indirectly connected with acquisitions of control in<br />
other companies or interventions on share capital (payments for future increases in<br />
779 Report on Corporate governance
share capital, replenishment of losses, etc.), unless the credit granted is<br />
instrumental to transactions already authorised by the competent bodies of <strong>UBI</strong><br />
<strong>Banca</strong>;<br />
• the grant to related parties that are not members of the banking Group of credit lines for<br />
an amount exceeding 2,5% of the supervisory capital;<br />
• transactions with related parties that are classified as "impaired”, "non-performing",<br />
"being restructured" or "restructured".<br />
Transactions with "related parties" other than those just mentioned performed by authorised<br />
bodies or organisational units and not forming part of normal business performed under<br />
standard conditions, must be subject to periodic reports to the Management Board, when they<br />
involve a significant amount.<br />
At the same time, transactions with representatives of the bank, with representatives of Group<br />
member companies and with companies controlled by them – all of whom may qualify as<br />
related parties – are conducted under normal market conditions and the provisions of Article<br />
136 of Legislative Decree 385/1993 (Consolidated Banking Act) are carefully complied with.<br />
Treatment of confidential information<br />
The Management Board has approved the guidelines for procedures for managing privileged<br />
information to be disclosed to the public and for managing the register of persons with access<br />
to privileged information. A procedure has been developed for that purpose, to draw up<br />
security measures to be adopted designed to guarantee maximum confidentiality of<br />
information and to define the procedures for handling and disclosing privileged information.<br />
More specifically, these procedures govern how privileged information that relates directly to<br />
the Bank or its subsidiaries is disclosed to the public and at the same time it issues<br />
instructions to subsidiaries for them to promptly provide the Bank with the information<br />
required to fulfil disclosure obligations required by law.<br />
In compliance with article 115-bis of the Consolidated Finance Act, the Bank has set up a<br />
register of persons who, on a permanent or occasional basis, have access to privileged<br />
information directly concerning the issuer.<br />
This register is managed in the name of and on behalf of the Group member companies that<br />
have delegated the responsibility for keeping and maintaining their register to the Parent<br />
Bank.<br />
Internal Dealing<br />
In implementation of laws in force, <strong>UBI</strong> <strong>Banca</strong> has drawn up specific Internal Dealing<br />
Regulations designed to modify internal regulations and procedures to comply with legislation<br />
and regulations governing disclosure obligations concerning transactions involving financial<br />
instruments issued by the issuer or other related financial instruments performed by<br />
significant persons and/or by persons closely connected with the latter, in order to ensure the<br />
necessary transparency and uniformity with regard to the market.<br />
These regulations not only identify "significant persons", establishing their obligations in terms<br />
of conduct and reporting, and the "officer responsible" for receiving, managing and disclosing<br />
information, but they also forbid the performance of the transactions mentioned in the 20<br />
days prior to meetings of the Management Board convened to approve financial statements,<br />
half year reports and the quarterly reports.<br />
In accordance with the regulations adopted by <strong>UBI</strong> <strong>Banca</strong>, the following are significant<br />
persons:<br />
1) members of the Supervisory Board of Unione di Banche Italiane;<br />
2) members of the Management Board of Unione di Banche Italiane;<br />
3) persons who perform management functions and senior managers who have regular access<br />
to privileged information and hold the power to make operational decisions that may affect<br />
780 Report on Corporate governance
performance and future prospects: the General Manager, the Joint General Manager, the<br />
Deputy General Managers and the Senior Manager responsible for the preparation of the<br />
financial reports of Unione di Banche Italiane.<br />
These regulations have been published on the Bank's website in the corporate governance<br />
section; furthermore, in compliance with specific Consob recommendations, a special section<br />
has been created, in which all reports of transactions notified by significant persons are<br />
published, after they have been disclosed to markets and to the Consob through the Borsa<br />
Italiana network information service.<br />
Relations with Shareholders, Institutional Investors and the<br />
Financial Community<br />
<strong>UBI</strong> <strong>Banca</strong> plays particular attention to the continuous management of relations with<br />
shareholders, institutional investors and members of the national and international financial<br />
community and it guarantees systematic disclosure of reliable, exhaustive and timely<br />
information on the Group's activities, results and strategies.<br />
A Registered Shareholders Service and an investor relations staff have been established for<br />
this purpose.<br />
The registered shareholders’ service is responsible for all relations with the Bank’s registered<br />
shareholders and it processes applications for admission as registered shareholders,<br />
maintains the shareholders’ register up-to-date and proposes and co-ordinates the various<br />
initiatives offered for them.<br />
The Bank has created the Value Project for registered shareholders, a set of banking<br />
concessions and free of charge insurance policies. The banking concessions are reserved to<br />
those registered shareholders who hold a current account and have shares in the Bank<br />
deposited with banks in the Group, while the insurance policies are for registered<br />
shareholders in general.<br />
The Investor Relations Staff is responsible for relations with the financial community<br />
(institutional investors and financial analysts), which may also require bringing specific<br />
functions in the Bank and the Group into play, in accordance with policies set by the senior<br />
management of the Bank.<br />
The investor relations officer guarantees clear, prompt and full reporting, using methods<br />
which include press releases and the use of the Bank’s internet portal. A total of 64 price<br />
sensitive press releases were published in 2008 in accordance with current regulations and<br />
legislation.<br />
Auditing of accounts<br />
As a listed company, by law the auditing of the accounts of <strong>UBI</strong> <strong>Banca</strong> must be performed<br />
exclusively by independent auditors responsible for verifying during the financial year that the<br />
accounts have been properly kept and that operating events have been correctly recorded in<br />
the accounting records. They are also responsible for ascertaining that the separate financial<br />
statements and the consolidated financial statements are reliably based on the accounting<br />
records as results from inspections performed and that those accounting records comply with<br />
the regulations governing them. The independent auditors publish a special report in which<br />
they give their opinion on the separate financial statements, on the consolidated financial<br />
statements and on the half year report<br />
The independent auditors currently appointed by <strong>UBI</strong> <strong>Banca</strong> are KPMG Spa, whose<br />
assignment will expire on the date of the shareholders' meeting to approve the financial<br />
statements for the year 2011.<br />
The auditors are appointed by a shareholders' meeting on the basis of a detailed proposal<br />
submitted to it by the Supervisory Board.<br />
781 Report on Corporate governance
ATTACHMENT A<br />
Positions held by the members of the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong> in companies listed in<br />
regulated markets including foreign markets (*), in financial, banking, insurance or large<br />
companies.<br />
NAME<br />
Faissola Corrado<br />
POSITION HELD IN<br />
THE ISSUER<br />
Chairman<br />
POSITIONS HELD IN OTHER LISTED COMPANIES<br />
OR IN BANKING, FINANCIAL, INSURANCE OR<br />
LARGE COMPANIES<br />
Calvi Giuseppe Senior Deputy<br />
Chairman<br />
Folonari Alberto Deputy Chairman<br />
Mazzoleni Mario Deputy Chairman Chairman of the Board of Directors:<br />
- BAS Omniservizi Srl<br />
Albertani Battista Board Member Chairman of the Board of Directors:<br />
- Caliso Spa<br />
- Finanziaria di Valle Camonica Spa<br />
- Iniziative Bresciane INBRE Spa<br />
- Iniziative Urbane Srl<br />
Bazoli Giovanni Board Member Chairman of the Supervisory Board<br />
- Intesa Sanpaolo Spa (*)<br />
Chairman of the Board of Directors:<br />
- Mittel Spa (*)<br />
Board Member:<br />
- Alleanza Assicurazione Spa (*)<br />
Bellini Luigi Board Member Chairman of the Board of Directors:<br />
- Nationale Suisse-Comp. Italiana di Assicurazioni<br />
Spa<br />
- Nationale Suisse Vita-Compagnia Italiana di<br />
Assicurazioni Spa.<br />
Cattaneo Mario Board Member Deputy Chairman of the Board of Directors:<br />
- Euromobiliare Asset Management SGR Spa<br />
Board Member:<br />
- <strong>Banca</strong> Sella Holding <strong>Banca</strong> Spa<br />
- Bracco Spa<br />
- Luxottica Group Spa (*)<br />
Chairman of the Board of Statutory Auditors:<br />
- Sara Assicurazioni Spa<br />
- SIA -SSB Spa<br />
- Italiana Assicurazioni Spa<br />
- Full Statutory Auditor:<br />
- Michelin Italiana S.A.M.I.Spa<br />
Ferro-Luzzi Paolo Board Member Chairman of the Board of Directors:<br />
- Banknord Gestioni Patrimoniali Finanziarie SIM<br />
Spa<br />
Board Member:<br />
- BNL Fondi Immobiliari SGR Spa<br />
Fidanza Virginio Board Member Sole Director:<br />
- Condor Trade Srl<br />
Fontana Enio Board Member Managing Director:<br />
-Fontana Finanziaria Spa<br />
-Fontana Luigi Spa<br />
Garavaglia Carlo Board Member Chairman of the Board of Directors:<br />
-Elba Assicurazioni Spa<br />
Board Member:<br />
- De Longhi Spa (*)<br />
- Aedes Spa (*) Ligure Lombarda per Imprese e<br />
Costruzioni<br />
- AFV Acciaierie Beltrame Spa<br />
Gussalli Beretta<br />
Pietro<br />
Board Member<br />
Deputy Chairman of the Board of Directors and<br />
Executive Director:<br />
- Beretta Holding Spa<br />
782 Report on Corporate governance
Lucchini Giuseppe Board Member<br />
Executive Director:<br />
- Benelli Armi Spa<br />
Board Member:<br />
- Fabbrica d’Armi Pietro Beretta Spa<br />
Chairman of the Board of Directors:<br />
- Lucchini RS Spa<br />
- Lucchini Spa<br />
Deputy Chairman of the Board of Directors and<br />
Executive Director:<br />
- Sinpar – Soc. di Investimenti e Partecipazioni Spa<br />
Board Member:<br />
- Beretta Holding Spa<br />
Chairman of the Supervisory Board<br />
- Ascometal SA<br />
Lucchini Italo Board Member Deputy Chairman of the Board of Directors:<br />
- Italmobiliare Spa (*)<br />
Board Member:<br />
- Italcementi Spa (*)<br />
- Ciments Français Sa (*)<br />
Chairman of the Board of Statutory Auditors:<br />
- BMW Italia Spa<br />
- BMW Financial Services Italia Spa<br />
Manzoni Federico Board Member Chairman of the Board of Directors:<br />
- Mittel Investimenti Immobiliari Srl<br />
Full Statutory Auditor:<br />
- <strong>Banca</strong> Sintesi Spa<br />
- Fidelitas Spa Fiduciaria di Sicurezza<br />
- Trieste Trasporti Spa<br />
Moltrasio Andrea Board Member Board Member:<br />
- RCS Mediagroup Spa (*)<br />
Musumeci Toti S. Board Member Chairman of the Board of Directors:<br />
- Aviva Vita Spa<br />
Board Member:<br />
- Aviva Assicurazioni Vita Spa<br />
Orlandi Sergio Board Member Supervisory Board Member:<br />
- Euroschor Soc Par Action Sempl<br />
Board Member:<br />
- Montefibre Spa<br />
- Sinterama Spa<br />
Pedersoli<br />
Alessandro<br />
Board Member<br />
Board Member:<br />
- Effe 2005 Finanziaria Feltrinelli Spa<br />
- Assicurazioni Generali Spa (*)<br />
- RCS Mediagroup Spa (*)<br />
Perolari Giorgio Board Member Board Member:<br />
- Italmobiliare Spa (*)<br />
Pivato Sergio Board Member Chairman of the Board of Statutory Auditors:<br />
- Reno de Medici Spa (*)<br />
- Freni Brembo Spa (*)<br />
- SMA Spa<br />
- Società Italiana Distribuzione Moderna Spa<br />
Full Statutory Auditor:<br />
- Auchan Spa<br />
Sestini Roberto Board Member Chairman of the Board of Directors:<br />
- Flow Fin Spa<br />
- SIAD Macchine Impianti Spa<br />
- Società Italiana Acetilene e Derivati S.I.A.D. Spa<br />
Board Member:<br />
- Sacbo Spa<br />
- Rivoira Spa<br />
Sole Director:<br />
- Sefin Spa<br />
783 Report on Corporate governance
ATTACHMENT B<br />
Positions held by the members of the Management Board of <strong>UBI</strong> <strong>Banca</strong> Scpa in companies<br />
listed in regulated markets including foreign markets (*), in financial, banking, insurance<br />
or large companies<br />
NAME<br />
POSITION HELD IN<br />
THE ISSUER<br />
POSITIONS HELD IN OTHER LISTED COMPANIES<br />
OR IN BANKING, FINANCIAL, INSURANCE OR<br />
LARGE COMPANIES<br />
Zanetti Emilio Chairman Chairman of the Board of Directors:<br />
- <strong>Banca</strong> Popolare di Bergamo Spa<br />
- Società Editrice S.S. Alessandro Ambrogio Bassiano<br />
Spa<br />
Deputy Chairman of the Board of Directors:<br />
- La Provincia di Como Spa Editoriale<br />
- Società per l’Aeroporto Civile di Bergamo – Orio al<br />
Serio Spa<br />
Board Member:<br />
- Italcementi Fabbriche Riunite Cemento Spa (*)<br />
Pizzini Flavio Deputy Chairman Chairman of the Board of Directors:<br />
- <strong>UBI</strong> <strong>Banca</strong> International Sa<br />
Deputy Chairman of the Board of Directors:<br />
- <strong>UBI</strong> Sistemi e Servizi Spa<br />
Board Member:<br />
- Banco di Brescia Spa<br />
Chairman of the Board of Statutory Auditors:<br />
- Mittel Spa (*)<br />
- Mittel Generale Investimenti Spa<br />
Massiah Victor<br />
Auletta Armenise<br />
Giampiero<br />
Chief Excecutive Officer Board Member:<br />
- <strong>Banca</strong> Regionale Europea Spa<br />
- <strong>UBI</strong> <strong>Banca</strong> Private Investment Spa<br />
- Istituto Centrale delle Banche Popolari Italiane Spa<br />
- Lombarda Vita Spa<br />
- <strong>UBI</strong> Sistemi e Servizi scpa<br />
Board Member<br />
Chairman of the Board of Directors:<br />
- Mistralfin Spa<br />
Senior Deputy Chairman of the Board of Directors:<br />
- <strong>Banca</strong> Carime Spa<br />
Board Member:<br />
- <strong>Banca</strong> Popolare di Bergamo Spa<br />
- <strong>Banca</strong> Popolare Commercio e Industria Spa<br />
- <strong>Banca</strong> Popolare di Ancona Spa<br />
- Centrobanca Spa<br />
- Banco di Brescia Spa<br />
- <strong>Banca</strong> Regionale Europea Spa<br />
- Humanitas Spa<br />
Bertolotto Piero Board Member Chairman of the Board of Directors:<br />
- <strong>Banca</strong> Regionale Europea Spa<br />
Board Member:<br />
- <strong>UBI</strong> <strong>Banca</strong> International Sa<br />
- B@nca 24-7 Spa<br />
Boselli Mario Board Member Chairman of the Board of Directors:<br />
- Centrobanca Spa<br />
- Setefi Spa<br />
Board Member:<br />
- Ratti Spa (*)<br />
Camadini<br />
Giuseppe<br />
Board Member<br />
Chairman of the Board of Directors:<br />
- <strong>UBI</strong> Fiduciaria Spa<br />
- Istituto Atesino di Sviluppo Spa<br />
Deputy Chairman of the Board of Directors:<br />
-<strong>Banca</strong> Regionale Europea Spa<br />
- La Scuola Spa<br />
Board Member:<br />
784 Report on Corporate governance
- Società Cattolica di Assicurazioni Spa (*)<br />
- Banco di Brescia Spa<br />
- <strong>Banca</strong> di Valle Camonica Spa<br />
- San Giuseppe Spa<br />
Cera Mario Board Member Senior Deputy Chairman:<br />
- <strong>Banca</strong> Regionale Europea Spa<br />
Board Member:<br />
- <strong>UBI</strong> Pramerica SGR Spa<br />
- Cedacri Spa<br />
- Fiducialis Srl<br />
Frigeri Giorgio Board Member Chairman of the Board of Directors:<br />
- <strong>UBI</strong> Pramerica SGR Spa<br />
- Società Pubblicità & Media Srl<br />
- B@nca 24-7 Spa<br />
- Centrobanca Sviluppo e Impresa SGR Spa<br />
- Finanzattiva Servizi Srl<br />
- <strong>UBI</strong> Pramerica Alternative Investment SGR Spa<br />
Deputy Chairman of the Board of Directors:<br />
- Centrobanca Spa<br />
Board Member:<br />
- <strong>UBI</strong> Sistemi e Servizi Spa<br />
- Capitalgest Alternative Investments SGR Spa<br />
- Società Editrice S.S. Alessandro Ambrogio Bassiano<br />
Spa<br />
- <strong>Banca</strong> Emilveneta Spa<br />
Gusmini Alfredo Board Member<br />
Polotti Franco Board Member Chairman of the Board of Directors:<br />
- Interim Interventi Immobiliari e Mobiliari Srl<br />
- Trafilati Martin SpA<br />
Deputy Chairman of the Board of Directors:<br />
- L.M.V. Lavorazione Metalli Vari Spa<br />
- Mar.Bea Srl<br />
Executive Director:<br />
- O.R.I Martin Acciarieria e Ferriera di Brescia Spa<br />
Board Member:<br />
- Banco di Brescia Spa<br />
- AOM Rottami Srl<br />
- Immobiliare Broseta Srl<br />
- Broseta Due Srl<br />
785 Report on Corporate governance
SUMMARY TABLES<br />
786 Report on Corporate governance
TABLE 1: SUPERVISORY BOARD<br />
Supervisory Board<br />
Position Members independent<br />
Chairman<br />
Senior Deputy<br />
Chairman<br />
Deputy<br />
Chairman<br />
Deputy<br />
Chairman<br />
Board Member<br />
Board Member<br />
FAISSOLA CORRADO<br />
(appointed by a shareholders’<br />
meeting of 10/5/08)<br />
Supervisory<br />
Board<br />
****<br />
Management<br />
Board<br />
****<br />
Number<br />
of other<br />
positions<br />
**<br />
X 100 5 0<br />
Appointments<br />
Committee<br />
Remuneration<br />
Committee<br />
Internal Control<br />
Committee<br />
Accounts<br />
Committee<br />
*** **** *** **** *** **** *** ****<br />
X<br />
since<br />
10.5.08<br />
CALVI GIUSEPPE X 100 32 0 X 100 x 100<br />
FOLONARI ALBERTO X 89 0<br />
MAZZOLENI MARIO X 100 1 X 100<br />
ALBERTANI BATTISTA<br />
(appointed by a shareholders’<br />
meeting of 10/5/08)<br />
BAZOLI GIOVANNI<br />
X 92 4<br />
X 83 3<br />
X<br />
X<br />
100<br />
100<br />
100<br />
X<br />
100<br />
Board Member BELLINI LUIGI * X 100<br />
Board Member CATTANEO MARIO * X 94<br />
10 (as a member<br />
of the internal<br />
control<br />
committee)<br />
23 (as a member<br />
of the internal<br />
control<br />
committee)<br />
2 X 100<br />
9 X 100 X 100<br />
Board Member FERRO-LUZZI PAOLO X 83 2<br />
Board Member FIDANZA VIRGINIO X 89 1<br />
Board Member FONTANA ENIO X 56 2<br />
Board Member GARAVAGLIA CARLO * X 89<br />
16 (as a member<br />
of the internal<br />
control<br />
committee)<br />
4 X 100 X 96 X 84<br />
Board Member<br />
GUSSALLI BERETTA<br />
PIETRO<br />
X 78 3<br />
787 Report on Corporate Governance
CONTINUED TABLE 1: SUPERVISORY BOARD<br />
Supervisory Board<br />
Appointments Remuneration<br />
Committee • Committee ♦<br />
Internal<br />
Control<br />
Committee ◊<br />
Accounts<br />
Committee $<br />
Position Members independent<br />
Supervisory<br />
Board<br />
****<br />
Management<br />
Board<br />
****<br />
Number of<br />
other<br />
positions<br />
**<br />
*** **** *** **** *** **** *** ****<br />
Board Member LUCCHINI GIUSEPPE X 72 5 X 80,00<br />
Board Member LUCCHINI ITALO * X 94<br />
26 (as a<br />
member of the<br />
internal control<br />
committee)<br />
5 X 100<br />
Board Member MANZONI FEDERICO * X 100 4 Secretary 100 Secretary 100 X 89<br />
Board Member MOLTRASIO ANDREA X 89 1<br />
Board Member MUSUMECI TOTI S. X 100 2 X 100<br />
Board Member ORLANDI SERGIO X 100 3 X 94<br />
Board Member<br />
PEDERSOLI<br />
ALESANDRO<br />
X 78 3 X 100<br />
Board Member PEROLARI GIORGIO X 94 1<br />
Board Member PIVATO SERGIO * X 100<br />
19 (as a<br />
member of the<br />
internal control<br />
committee)<br />
5 X 100<br />
Board Member SESTINI ROBERTO X 72 6<br />
Chairman<br />
Board Member<br />
TROMBI GINO *<br />
(resigned 10/5/08)<br />
ZALESKI ROMAIN<br />
(resigned 10/5/08)<br />
X 100 73 = =<br />
X 50 = =<br />
X<br />
(Until<br />
10/5/08)<br />
Quorum required for the presentation of lists by registered shareholders: 500 registered shareholders who have the right to vote or a number of registered shareholders who hold at<br />
least 0,50% of the share capital outstanding 90 days prior to the date set for the shareholders meeting (Art. 45 of the corporate by-laws).<br />
Appointments<br />
Internal control committee: Accounts Committee:<br />
Number of meetings held during 2008 Supervisory Board:18<br />
Remuneration Committee: 5<br />
Committee: 5<br />
24<br />
18<br />
NOTES<br />
* Enrolled in the Register of Accounting Auditors<br />
** Number of directorships or appointments as statutory auditor (or equivalent positions) held in other companies listed on regulated markets including foreign markets, in financial,<br />
banking or insurance companies or companies of significant dimensions. The report on corporate governance contains full details of the appointments.<br />
*** An “X” in this column indicates that the member of the Supervisory Board is a member of the committee.<br />
**** This column contains the percentage attendance of board members at the meetings.<br />
100<br />
788 Report on Corporate Governance
TABLE 2: <strong>MANAGEMENT</strong> BOARD<br />
Position<br />
Members<br />
Independent<br />
(pursuant to<br />
Art147 ter of the<br />
consolidated<br />
banking act)<br />
Executive<br />
Percentage of attendance<br />
at meetings of the<br />
Management Board<br />
Number of other positions held<br />
*<br />
Chairman ZANETTI EMILIO X 100 5<br />
Deputy Chairman<br />
PIZZINI FLAVIO<br />
(appointed Deputy Chairman of<br />
the Board on 10/05/2008)<br />
X 100<br />
5<br />
Chief Executive<br />
Officer<br />
MASSIAH VICTOR<br />
(appointed to the Supervisory<br />
Board on 27/11/2008 and Chief<br />
Executive Officer on the<br />
Management Board on<br />
27/11/2008 with effect from<br />
1/12/2008)<br />
X<br />
100<br />
5<br />
Board Member<br />
AULETTA ARMENISE<br />
GIAMPIERO<br />
(resigned as Chief Executive Officer<br />
on 1/12/2008)<br />
X 100<br />
9<br />
Board Member BERTOLOTTO PIERO X 93 3<br />
Board Member BOSELLI MARIO X 100 3<br />
Board Member CAMADINI GIUSEPPE X 90 8<br />
Board Member CERA MARIO X 97 4<br />
Board Member FRIGERI GIORGIO X 97 11<br />
Board Member GUSMINI ALFREDO X 100 0<br />
Board Member<br />
POLOTTI FRANCO<br />
(appointed to the Supervisory<br />
Board on 10/05/2008)<br />
X 100<br />
9<br />
Deputy Chairman<br />
FAISSOLA CORRADO<br />
(resigned on 9/05/2008)<br />
82<br />
= =<br />
Number of meetings held during 2008:31 meetings<br />
NOTES<br />
** Number of directorships or appointments as statutory auditor (or equivalent positions) held in other companies listed on regulated markets including foreign markets, in financial,<br />
banking or insurance companies or companies of significant dimensions. The report on corporate governance contains full details of the appointments<br />
789 Report on Corporate Governance
TABLE 3: OTHER REQUIREMENTS OF THE CORPORATE GOVERNANCE CODE<br />
YES<br />
NO<br />
Summary of reasons for any differences from the<br />
recommendations of the code<br />
System of authorisations and transactions with related parties<br />
Has the Management Board conferred powers defining the following:<br />
a) limits X<br />
b) method of exercising them X<br />
c) and reporting intervals? X<br />
Has the Management Board reserved the right to examine and approve<br />
operations of particular operating, capital and financial importance<br />
(including transactions with related parties)?<br />
Has the Management Board defined guidelines and criteria for<br />
identifying “significant” transactions?<br />
X<br />
Are the guidelines and criteria mentioned above described in the report? X<br />
Has the Management Board defined special procedures for examining<br />
and approving transactions with related parties?<br />
X<br />
Are the procedures for approving transactions with related parties<br />
described in the report?<br />
X<br />
X<br />
The most recent procedures for appointing members of the<br />
supervisory board<br />
Does the deposit of candidatures for the appointment of members of the<br />
supervisory board occur at least ten days in advance?<br />
Were candidatures for the appointment of members of the supervisory<br />
board accompanied by exhaustive information?<br />
Were candidatures for the appointment of members of the supervisory<br />
board accompanied by an indication of whether they qualify as<br />
independent?<br />
X<br />
X<br />
X<br />
790 Report on Corporate Governance
Shareholders’ meetings<br />
Has the company approved regulations for shareholders’ meetings? X<br />
Are the regulations attached to the report (or does it state where they<br />
can be obtained/downloaded)?<br />
X<br />
Internal contol<br />
Has the company appointed internal control officers? X<br />
Are the officers independent from the managers of operating areas in the<br />
company hierarchy?<br />
X<br />
Organisational unit responsible for internal control<br />
Group Audit Area of the Parent Bank – Chief: dr. Francesco Rota Conti<br />
Investor relations<br />
Has the company appointed an investor relations officer? X<br />
Organisational unit and contact details (address/telephone/fax/email)<br />
for the investor relations officer.<br />
Investor Relations – Chief: Laura Ferraris<br />
Piazza Vittorio Veneto 8, 24122 Bergamo<br />
email: laura.ferraris@ubibanca.it<br />
Tel. 035 392217 fax 035 392390<br />
791 Report on Corporate Governance
<strong>REPORT</strong> OF<br />
SUPERVISORY BOARD TO<br />
THE SHAREHOLDERS’ MEETING<br />
in compliance with Art.153, paragraph 1<br />
of Legislative Decree No. 58 of 24 th February 1998<br />
and Art. 46, paragraph 1, letter i) of the corporate by-laws
Dear Shareholders,<br />
This report to the shareholders has been prepared in accordance with Art. 153 of Legislative<br />
Decree No. 58 of 24 th February 1998 (Consolidated Finance Act) and Art. 46 paragraph 1,<br />
letter i) of the corporate by-laws, on the supervisory activities performed by the Supervisory<br />
Board, on omissions and reprehensible actions observed and in relation to matters which this<br />
board considers as falling within its sphere of responsibilities relating to the financial year<br />
ended 31 st December 2008.<br />
<strong>UBI</strong> <strong>Banca</strong> has adopted a two tier system of management and control, which is considered<br />
better suited to the governance requirements of the Parent Bank, <strong>UBI</strong> <strong>Banca</strong>, and at the same<br />
time as providing stronger protection for registered and unregistered shareholders, especially<br />
through the activity of the Supervisory Board, a body appointed directly by the registered<br />
shareholders and representing them.<br />
The distinguishing features of the two tier system lie in the distinction between<br />
<br />
<br />
strategic supervision and control functions, which are assigned to the Supervisory Board,<br />
which holds some of the powers typical of a shareholders' meeting in a traditional system<br />
(approval of financial statements, appointment of the members of the management body<br />
and determination of the relative remuneration) and also of a board of statutory auditors.<br />
It also fulfils some "senior management" functions, insofar as it is called upon to approve<br />
general guidelines and strategic policies for the Bank and the Group, submitted to it by<br />
the Management Board;<br />
the corporate management functions, assigned to the Management Board, which has<br />
exclusive authority to perform all ordinary and extraordinary operations necessary to the<br />
pursuit of the company objects, in compliance with the general guidelines and strategic<br />
policies approved by the Supervisory Board.<br />
This division of functions identifies distinct aspects of the operational life of the Bank and<br />
assigns them to the corporate bodies just mentioned which, with their respective roles and<br />
responsibilities, determine a corporate governance model that is more consistent with the<br />
structure of the Bank and the Group in the context of a single business plan, characterised by<br />
ongoing dialogue and inter-functional co-operation.<br />
The annual report on corporate governance – attached to the 2008 Annual Report – provides<br />
more detailed information on the two tier system of corporate governance adopted.<br />
***<br />
The Supervisory Board has authorised the Management Board to submit proposals for<br />
amendments to the corporate by-laws which are on the agenda of the shareholders’<br />
meeting.<br />
Those amendments to the corporate by-laws are attributable mainly to the need for the<br />
corporate by-laws to comply with the rules introduced by the “Supervisory provisions on the<br />
organisation and corporate governance of Banks” of 4 th March 2008. In this context the<br />
amendments mainly concern the following matters:<br />
i) procedures for the appointment, removal and substitution of members of the Supervisory<br />
Board, with provisions for greater representation of candidates from minority lists;<br />
ii) powers granted to shareholders’ meetings to determine the total remuneration of members<br />
of the Supervisory Board, including therefore those with particular appointments, powers<br />
or functions;<br />
iii) powers granted to shareholders’ meetings to approve remuneration policies for members of<br />
the Management Board and remuneration and/or incentive schemes based on financial<br />
instruments;<br />
iv) the criteria for distributing remuneration among the members of the Supervisory Board;<br />
v) more precise identification and distinction of the duties and responsibilities of the<br />
Management Board and of the Supervisory Board, regarding in particular:<br />
- powers conferred on the Chairman of the Management Board and the Chairman of<br />
the Supervisory Board;<br />
- powers attributable to bodies delegated by the Management Board;<br />
793 Report of the Supervisory Board
- strategic operations reserved to the Supervisory Board;<br />
vi) participation in Management Board meetings by members of the internal control<br />
committee;<br />
vii) the elimination of transition regulations, because they are now obsolete.<br />
Finally amendments of a formal nature are proposed or in any case designed to introduce a<br />
more precise definition to the by-laws.<br />
***<br />
As concerns the strategic supervisory function assigned to the Supervisory Board, the first<br />
full year of operations of the <strong>UBI</strong> <strong>Banca</strong> Group took place in a particularly complex operating<br />
context, both because of the integration process in progress and because of the deterioration<br />
of the macroeconomic background. This was initially limited to financial markets, the<br />
instruments traded on them and operators in the sector, but then extended to affect the real<br />
economy and domestic and international production.<br />
The Group reacted to the difficulties triggered by the macroeconomic scenario by putting<br />
forward the completion of the main integration processes defined in the Integration Business<br />
Plan approved by this board in June 2007.<br />
In consideration of the continued climate of uncertainty, which makes it difficult to identify a<br />
scenario that is sufficiently stable and clear to serve as the basis for the construction of a<br />
multi-year plan, the update of the Business Plan will not be completed before the second half<br />
of the year.<br />
As concerns the control function and issues concerning risk policies and the related<br />
organisational aspects in particular, the Supervisory Board verified that the Group possessed<br />
advanced and fully effective systems for the management of risk.<br />
The Supervisory Board approved a proposal submitted by the Management Board to adopt<br />
internal risk measurement systems for determining capital requirements with particular<br />
reference to the approval of the choice of system considered appropriate and of the relative<br />
project for the formulation and implementation of that system, including the relative<br />
implementation time schedules and planned investments.<br />
With regard to Basel 2 and in compliance with the “new prudential supervisory provisions for<br />
banks” (Bank of Italy Circular No. 263/2006), the <strong>UBI</strong> Group has put a process in place to<br />
calculate its total capital adequacy requirement – for the present and the future – to meet all<br />
significant risks to which the Group is or might be exposed on the basis of its operations ( the<br />
ICAAP process).<br />
In consideration of its mission and the operations of the <strong>UBI</strong> Group and also the market<br />
context in which it operates, the risks to be subjected to measurement in the ICAAP<br />
assessment process were identified and divided into first pillar and second pillar risks as<br />
required by the relative regulations.<br />
More specifically, with regard to the second pillar, in October 2008 the Supervisory Board<br />
approved a simplified ICAAP report submitted to it by the Management Board in compliance<br />
with prudential supervisory regulations.<br />
The <strong>UBI</strong> Group then filed its first ICAAP report with the Bank of Italy for the situation as at<br />
30 th June 2008. The report was prepared in simplified form in accordance with regulations,<br />
with an assessment of internal capital for first pillar risks and of interest rate and<br />
concentration risks for second pillar risks.<br />
A full ICAAP report is to be filed with the supervisory authority in April 2009, which will<br />
include first pillar risks, second pillar risks specified by regulations and risks identified<br />
independently by the Group.<br />
The Group plans to gradually evolve towards a technically more complex class 1 ICAAP<br />
process, which will come into operation in the first half of 2010, once authorisations have been<br />
obtained for the use of internal models. The objective of submitting an application to the Bank<br />
of Italy before the end of 2009 for authorisation to use those internal models to estimate the<br />
capital requirement needed to cover the Bank’s risks has in fact been confirmed.<br />
794 Report of the Supervisory Board
Finally, with regard to the third pillar, the relative process for producing reports for public<br />
disclosures has been defined. The new regulations introduce obligations to publish<br />
information on capital adequacy, exposure to risks and the general characteristics of the<br />
systems designed to identify, measure and manage them.<br />
In 2008 the Internal Control Committee concentrated mainly on the following activities:<br />
<br />
<br />
<br />
the most important issues concerning the Bank's internal control system and the legislative<br />
framework, as follows:<br />
- corporate governance mechanisms with regard, amongst other things, to the provisions<br />
contained in the corporate governance code for listed companies, in the supervisory<br />
instructions issued by the Bank of Italy and in Legislative Decree No. 231/2001;<br />
- relations with the boards of statutory auditors and with the supervisory bodies pursuant<br />
to Legislative Decree No. 231/2001 of subsidiaries and the respective areas of<br />
intervention;<br />
- the policy-setting and co-ordination activities of the Parent Bank;<br />
- risk management and capital requirement calculation processes pursuant to Basel 2;<br />
- the configuration and co-ordination of second level (risk management and compliance)<br />
and third level (internal audit) control activities;<br />
- the structure, staff and operational tools of the Group internal auditing function and its<br />
interaction with other business units;<br />
- modifications of corporate procedures to comply with the MiFID legislation and new antimoney<br />
laundering developments;<br />
periodic and specific reporting on the outcomes of analyses performed by the internal<br />
auditing function;<br />
relations with the Supervisory Authorities, with specific regard to requests for self-analysis<br />
concerning specific transactions and inspections carried out at subsidiary companies.<br />
In 2008 the Accounts Committee concentrated its activities mainly on examinations of the<br />
separate and consolidated financial statements of the Parent Bank, the half year financial<br />
report and the quarterly reports to the end of March and September. In this context it<br />
conducted detailed study on accounting matters connected with the unification, already<br />
completed, of the accounting IT systems used by the banks in the Group<br />
With regard to the Basel 2 project, the accounts committee supported the Supervisory Board<br />
in the various implementation stages mainly on technical aspects affecting accounting,<br />
administrative and financial reporting matters connected mainly, but not exclusively, with<br />
quantification issues related to the three pillars.<br />
Information on the activities performed by the Appointments Committee and the<br />
Remuneration Committee is contained in the report on corporate governance which may be<br />
consulted.<br />
***<br />
As concerns the remuneration of the members of the Supervisory Board, in March 2009<br />
the board itself decided, with the agreement of all its members, to reduce its total fixed<br />
remuneration by 20% for its last year of office in order to demonstrate its awareness of the<br />
economic and financial crisis that had hit the country and to signal its concern to those who<br />
had been hit either directly or indirectly by that crisis.<br />
***<br />
In compliance with Consob Communication No. 1025564 of 6 th April 2001 and subsequent<br />
amendments to it, specific information is given below on the supervisory activities performed<br />
by the Supervisory Board in 2008 in the order of presentation recommended in that Consob<br />
communication.<br />
795 Report of the Supervisory Board
1. The board has attended all the meetings of the Management Board. In this respect the<br />
Chairman and the Senior Deputy Chairman of the Supervisory Board decided to<br />
separately authorise every member of the Internal Control Committee to attend<br />
meetings of the Management Board, in order to comply immediately with the Bank of<br />
Italy instructions concerning the organisation and governance of banks, even before<br />
the related amendments to corporate by-laws are made.<br />
The Supervisory Board supervised compliance with the law, the corporate by-laws<br />
and proper management practices and acquired information on the activities of the<br />
Bank and its subsidiaries and also on major capital, financial and operating<br />
transactions.<br />
Transactions of major economic, financial and capital importance carried out by the<br />
Bank during the year were performed in compliance with the law and the corporate<br />
by-laws in full compliance with the interests of the Bank. Furthermore on the basis of<br />
the information obtained from the Management Board in accordance with Art. 150 of<br />
the Consolidated Finance Act, those transactions were not manifestly imprudent,<br />
risky, in-conflict-of-interest, or in contrast with resolutions passed by shareholders’<br />
meetings or in any case such as to compromise the assets of the Bank.<br />
In implementation of the 2007-2010 Integration Business Plan approved in June<br />
2007 by the Supervisory Board and as expressly authorised by the corporate by-laws,<br />
further changes to the organisational and corporate structure of the Group were<br />
completed in 2008. The most significant of these performed during the year were as<br />
follows:<br />
- completion of the IT migrations onto the Group target system;<br />
- full introduction of the target organisational model, which is standard<br />
throughout the Group, by decentralising some Parent Bank operations,<br />
transferred to network banks, and centralising other network bank operations,<br />
transferred to the Parent Bank.<br />
- completion of the process of integrating and streamlining the product companies<br />
which involved companies operating in consumer finance, wealth management,<br />
financial advisory services, leasing, insurance and trust management.<br />
merger of <strong>UBI</strong> Sim into <strong>UBI</strong> <strong>Banca</strong> Private Investment;<br />
a partial spin-off to B@nca 24-7 Spa of the typical “product company”<br />
operations of SILF, which now operates as a distribution network only for<br />
B@nca 24-7 products;<br />
contribution to <strong>UBI</strong> Pramerica SGR of the asset management operations of<br />
Capitalgest SGR and of the interest held by the Parent Bank in Capitalgest<br />
Alternative Investments SGR and the sale to Prudential of approximately 12%<br />
of <strong>UBI</strong> Pramerica to restore the composition of the shareholdings to 35% held<br />
by Prudential and 65% by <strong>UBI</strong> <strong>Banca</strong>; the merger of funds to streamline the<br />
product range of funds;<br />
the merger of BPU Esaleasing into SBS Leasing and the change of the name<br />
of the latter to <strong>UBI</strong> Leasing;<br />
activities for the management of corporate and retail derivatives business for<br />
the whole Group centralised in Centrobanca and a market making desk set<br />
up for internal management of financial risk;<br />
the merger of Plurifid Spa into Solofid Società Lombarda Fiduciaria Spa,<br />
which led to the creation of <strong>UBI</strong> Fiduciaria Spa;<br />
enhancement and streamlining of the Group’s presence in the insurance<br />
sector by the sale of 50%+1 share of <strong>UBI</strong> Assicurazioni Vita to the Aviva<br />
Group and the consequent entrance of the British Group into the<br />
management of the company, renamed Aviva Assicurazioni Vita Spa on 1 st<br />
January 2009; the merger of <strong>UBI</strong> Partecipazioni Assicurative into <strong>UBI</strong><br />
Assicurazioni; the purchase by <strong>UBI</strong> <strong>Banca</strong> of the interest held in <strong>UBI</strong><br />
Assicurazioni Vita by <strong>UBI</strong> Assicurazioni and the sale to Tua Assicurazioni in<br />
the Cattolica Assicurazioni Group of operations consisting of approximately<br />
50 multi-company agents;<br />
- the streamlining of service activities performed on 1 st July 2008 with the<br />
transformation of <strong>UBI</strong> Sistemi e Servizi into a consortium company, following the<br />
796 Report of the Supervisory Board
acquisition of stakes in the share capital by the principal service users (network<br />
banks and other Group member companies).<br />
On 13 th June 2008, Bank of Italy inspections of the <strong>UBI</strong> Group, performed pursuant<br />
to articles 54 and 68 of Legislative Decree No. 385/1993 and notified on 15 th<br />
February 2008, were concluded.<br />
On 29 th August 2008, the supervisory authority delivered a communication to the<br />
Supervisory Board and to the Management Board containing the findings. The<br />
outcome of the inspections was generally positive and attention was placed in a letter<br />
of reply sent to the Bank of Italy on the careful examination conducted by company<br />
bodies on the points outlined in the inspection report, giving details of the lines of<br />
action already undertaken.<br />
On 13 th March 2008 the Consob (Italian securities market authority) commenced an<br />
inspection of IW Bank pursuant to Art. 10, paragraph 1 of Legislative Decree No.<br />
58/1998, to ascertain compliance with regulations concerning interconnection<br />
systems, the detection of suspect transactions with regard to market abuse and the<br />
provision of loan accessory services to customers. At the date of this report the<br />
outcome of the inspection concluded on 3 rd December is not yet known.<br />
In July <strong>UBI</strong> Assicurazioni sent a reply to ISVAP (the insurance authority) in relation to<br />
the inspection performed into the company in the second half of 2007, illustrating the<br />
specific and dedicated programme to improve the management of damages claims<br />
which was commenced at the beginning of 2008.<br />
With regard to important events occurring after the end of the financial year 2008, the<br />
most significant transactions performed were as follows:<br />
- the <strong>UBI</strong> <strong>Banca</strong> Group accepted, with the shares it held (1,89% <strong>UBI</strong> <strong>Banca</strong> and<br />
0,59% <strong>Banca</strong> Popolare di Ancona), the voluntary public tender offer to purchase<br />
the total of the ordinary shares of Meliorbanca S.p.A. made by <strong>Banca</strong> Popolare<br />
dell’Emilia Romagna Soc. Coop. at a price of 3,20 euro each;<br />
- on 4 th March 2009, as part of an agreement signed by <strong>UBI</strong> <strong>Banca</strong>, Centrobanca<br />
and Medinvest International, <strong>UBI</strong> <strong>Banca</strong> purchased a further 32,4% stake in the<br />
share capital of IW Bank held by the current management of that bank. The<br />
agreement also involved the purchase by Medinvest International of a stake in the<br />
share capital of IW Bank, which will in turn acquire a majority interest that may<br />
rise to 100% in the share capital of Twice SIM (a company which specialises in<br />
brokerage services and activities in capital markets and corporate finance for small<br />
to medium size enterprises), 59,3% controlled by Medinvest International. On 20 th<br />
March 2009, the latter purchased an initial tranche from Centrobanca of 4,75% of<br />
the share capital of IW Bank, agreeing to purchase a second tranche of up to<br />
5,70% of the share capital of IW Bank subject to the actual purchase by IW Bank<br />
of an interest in Twice SIM of more than 50,1% of the share capital after the<br />
possible exercise of outstanding warrants. If the operation is fully implemented,<br />
the investment held by the <strong>UBI</strong> Group in IW Bank will be 74,7%;<br />
- on 16 th March 2009 the acquisition of operations belonging to Intesa Sanpaolo<br />
was concluded consisting of 13 branches in the province of La Spezia, with Banco<br />
di San Giorgio designated as the acquirer of the branches.<br />
On 27 th January 2009, the Bank of Italy commenced ordinary inspections, pursuant<br />
to Art. 10 of Legislative Decree No. 58/1998, into the asset management company<br />
<strong>UBI</strong> Pramerica. On the following 20 th February 2009, in accordance with the laws in<br />
force, that same supervisory body ordered inspections into <strong>UBI</strong> <strong>Banca</strong> as the<br />
depository bank for the funds of <strong>UBI</strong> Pramerica SGR.<br />
2./3. No atypical and/or unusual transactions occurred during the year including<br />
intragroup transactions and those with related parties, (where related parties are<br />
defined by the standard IAS 24 “Related party disclosures” to which reference is also<br />
made by Art. 2 of the Issuers Regulations issued by the Consob with Resolution No.<br />
11971/1999 and subsequent amendments and additions). As concerns intragroup<br />
and related party transactions of an ordinary nature, these have been accurately<br />
reported in the information provided by the Management Board in Part H of the notes<br />
to the consolidated financial statements. All the transactions in question were<br />
797 Report of the Supervisory Board
performed as part of the bank’s institutional activities, in observance of correct<br />
principles both in substance and form under conditions analogous to those applied<br />
for transactions with independent parties and in accordance with the organisational<br />
structure adopted with strategic and management activities centralised at BPU <strong>Banca</strong><br />
Scpa and technical and operational activities centralised at <strong>UBI</strong> Sistemi e Servizi<br />
Scpa. Again with regard to transactions of an ordinary nature with related parties the<br />
Supervisory Board declares that these transactions were always conducted under<br />
market conditions or, in the absence of suitable reference parameters, on the basis of<br />
the costs incurred and in any case always compliant with and in the interests of the<br />
Bank. The report on corporate governance also illustrates the main contents of the<br />
monitoring, reporting and decision-making regulations adopted by the Bank for the<br />
performance of related party transactions by the Bank.<br />
Furthermore, transactions with representatives of the Bank, with representatives of<br />
Group member companies and with companies controlled by them, who all qualify as<br />
related parties, are all conducted under market conditions and the provisions of<br />
article 136 of the Consolidated Banking Act are closely complied with. The<br />
Supervisory Board has also monitored the adequacy of the system for ensuring<br />
compliance with Art.136 of the Consolidated Banking Act.<br />
4. As concerns relations with the firm of independent auditors, on 5 th May 2007 a<br />
shareholders’ meeting of <strong>UBI</strong> <strong>Banca</strong> Scpa approved the extension until the end of the<br />
financial year ending 31 st December 2011 of the expiry of the auditing appointment<br />
granted in accordance with articles 155 et seq. of Legislative Decree No. 58/1998<br />
(Consolidated Finance Act) to the auditors KPMG Spa by a shareholders meeting of<br />
BPU <strong>Banca</strong> Scpa on 10 th May 2003 for the financial years 2003-2005, already<br />
extended by a shareholders’ meeting of 22 nd April 2006 for the financial years 2006-<br />
2008. The independent firm of auditors KPMG Spa, with whom the Supervisory Board<br />
has had constant meetings, including those through committees of the board, issued<br />
its reports on 26 th March 2009 from which no critical observations or remarks<br />
emerged.<br />
5./6. The Supervisory Board received no notifications from registered shareholders<br />
pursuant to article 2408 of the Italian Civil Code during 2008.<br />
7./8. In addition to the fee for its appointment to perform the audit of the accounts for work<br />
performed during the year amounting to 1.279 thousand euro, the Parent Bank, in<br />
compliance with the law and Art. 160 of the Consolidated Finance Act paid further<br />
fees relating to 2008 (exclusive of out-of-pocket expenses, supervisory contributions<br />
and VAT) to the independent auditors KPMG Spa and to companies belonging to its<br />
network as follows:<br />
- Certification services 1.250 thousand euro;<br />
- Tax consultancy services 34 thousand euro;<br />
- MiFID project 1.378 thousand euro;<br />
- Basel 2 project: support for office project activities<br />
and gap analysis<br />
1.361 thousand euro;<br />
- Support for compliance with Law No. 262/2005 435 thousand euro;<br />
- Assistance with the development of a<br />
portfolio model for credit risk<br />
375 thousand euro;<br />
- Online customer procurement and E-finance 9 thousand euro.<br />
In addition to the fees listed above, the company KPMG Spa and companies belonging<br />
to its network were also assigned the following appointments with regard to<br />
appointments made by other companies in the <strong>UBI</strong> Group (again exclusive of out-ofpocket<br />
expenses, supervisory contributions and VAT):<br />
- Auditing of accounts 2.759 thousand euro;<br />
- Certification services 380 thousand euro;<br />
- Tax consultancy services 16 thousand euro;<br />
- Assistance with supervisory reporting and Basel 2 290 thousand euro;<br />
798 Report of the Supervisory Board
- Mifid project: support for office project activities 228 thousand euro;<br />
- Support with financial analysis of bonds<br />
and structured derivatives<br />
95 thousand euro;<br />
- Anti-money laundering consulting services 51 thousand euro;<br />
- Support with compliance activities 35 thousand euro;<br />
- Other services 36 thousand euro.<br />
Details of these fees are also given in an attachment to the financial reports as<br />
required by Art. 149-duodecies of the Issuers’ Regulations.<br />
Furthermore, subsequent to the approval of the provisional separate company and<br />
consolidated financial statements by the Management Board, the independent<br />
auditors made additions to the times and fees for auditing activity as a consequence<br />
of new legislation and also of the greater time needed to audit the accounts for 2008,<br />
totalling 180 thousand euro in relation to the Parent Bank and 285 thousand euro for<br />
the other Group member companies.<br />
9. With regard to the existence of opinions given in accordance with the law during the<br />
year and in compliance with the Consolidated Banking Act, the Supervisory Board<br />
issued the required favourable opinion when decisions were taken by the<br />
Management Board pursuant to Art.136 paragraph 1 of the Consolidated Banking<br />
Act.<br />
Following the resignations of Gino Trombi as Chairman of the Supervisory Board and<br />
ing. Romain Zaleski as a member of the Supervisory Board, a shareholders’ meeting of<br />
10 th May 2008 appointed avv. Corrado Faissola as Chairman of the Supervisory<br />
Board and Battista Albertani as a member of the Supervisory Board.<br />
As a consequence of his candidature to the position just mentioned, avv. Corrado<br />
Faissola resigned as a member and Deputy Chairman of the Management Board and<br />
from other positions held within the Group and it was therefore necessary to fill the<br />
vacant position on the Management Board and appoint a new Deputy Chairman.<br />
On the basis of a proposal from the Appointments Committee, the Supervisory Board<br />
therefore appointed Franco Polotti as a member of the Management Board and Flavio<br />
Pizzini as Deputy Chairman of the Management Board to replace avv. Faissola.<br />
Following the resignation of the Chief Executive Officer, dott. Giampiero Auletta<br />
Armenise from his position and the relative executive powers assigned to him by the<br />
Management Board for personal and family reasons,in November the Supervisory<br />
Board decided to increase the number of members of the Management Board to 11<br />
and appointed dott. Victor Massiah to that board as proposed by the Appointments<br />
Committee. The Supervisory Board then proposed dott. Massiah for the position of<br />
Chief Executive Officer of <strong>UBI</strong> <strong>Banca</strong>, again on the basis of a recommendation made<br />
by the Appointments Committee. Finally the Supervisory Board made a proposal for<br />
the remuneration of the Chief Executive Officer and of the General Manager of <strong>UBI</strong><br />
<strong>Banca</strong> on the basis of indications made by the Remuneration Committee. Dott.<br />
Auletta Armenise maintains his position as a member of the Management Board of<br />
the Parent Bank along with the other positions he holds in Group member companies.<br />
10. The Supervisory Board met 18 times in 2008.<br />
While observing the principle of collegial responsibility in performance of its duties,<br />
the Supervisory Board - in relation to its responsibilities, its composition and the<br />
characteristics of its members - decided to establish, in compliance, amongst other<br />
things with the recommendations contained in the corporate governance code,<br />
specific internal committees with the functions of submitting proposals and advice<br />
and performing controls: an appointments committee, a remuneration committee, a<br />
committee for internal control and an accounts committee. These committees have<br />
been established to allow the Supervisory Board to make its decisions on a more<br />
informed basis and they are composed - as recommended by the corporate<br />
governance code - of more than three members.<br />
In 2008 the Appointments Committee met five times, the Remuneration Committee<br />
met five times, the Committee for Internal Control met 24 times and the Accounts<br />
Committee met 18 times. The Supervisory Board has been constantly informed of the<br />
799 Report of the Supervisory Board
activities of those committees. In order to provide constant information on the main<br />
business operations, one or more members of the Internal Control Committee attends<br />
the meetings of the Management Board on a rotating basis and reports back to the<br />
other members of the committee in its next meeting.<br />
The Management Board met 31 times in 2008.<br />
11./12. The Supervisory Board acquired information on and, to the extent of its<br />
responsibilities, supervised the adequacy of the organisational structure of the Bank<br />
and compliance with the law and proper principles of management. This was<br />
performed by making direct observations, by acquiring information from the Financial<br />
Reporting Officer and by holding meetings with the those functions in the Bank<br />
involved in the system of internal controls and with the independent auditors, during<br />
the course of regular exchanges of information. As concerns the MiFID (Market in<br />
Financial Instruments Directive) directive on transparency in financial markets, the<br />
objective of the first phase of the compliance process was to achieve compliance<br />
before the date on which the regulations came into force (1 st November 2007),<br />
focusing on areas with an impact on customers to whom the regulations were made<br />
available. The compliance process continued in 2008 with the following objectives:<br />
- the definition of rules, processes and instruments in respect of matters not<br />
related to customer management, together with compliance with regulations<br />
which came into force in 2008;<br />
- the development of business by extending the provision of investment advisory<br />
services to customers;<br />
- managing developments in Consob guidelines (termed third level measures<br />
published during the year) and relations with the Consob;<br />
- increased staff training by preparing and implementing a specific plan.<br />
Project activities are also currently in progress aimed on the one hand at putting an<br />
evolved advisory service in place, which offers investment proposals based on a<br />
“portfolio model” designed to fit customer risk profiles and the holding periods they<br />
require and on the other hand at creating a specific “product catalogue” on which<br />
customer investment proposals can be focused.<br />
Finally, again with regard to the MiFID directive and more specifically to the joint<br />
Bank of Italy - Consob Regulations, this board has periodically verified the adequacy<br />
of processes relating to the provision of investment services and of the relative<br />
organisational structure and the assignment of duties and responsibilities.<br />
13./14. The Supervisory Board assessed and supervised the adequacy of the system of<br />
internal control and the administration and accounting system also ensuring that the<br />
latter was reliable in recording operating events faithfully. This was performed by<br />
holding specific meetings with the functions in the Bank involved in the internal<br />
control system and with the independent auditors, by acquiring adequate reports<br />
from other corporate bodies of the bank and from the heads of the respective<br />
functions, by examining corporate documents and by analysing the results of the<br />
work performed by those persons.<br />
The system of internal controls and the organisational structure of the Bank were<br />
found to be basically appropriate to the scale and nature of its business. The<br />
dynamics of these were developed constantly in order to continuously refine them and<br />
also to comply with changes in the legislation.<br />
The Parent Bank has equipped itself with an Organisational, Management and<br />
Control Model pursuant to Legislative Decree 231/01.<br />
The corporate governance report contains further information on this.<br />
We report that the Chief Executive Officer and the Financial Reporting Officer have<br />
issued a declaration pursuant to Art.154-bis of the Consolidated Finance Act<br />
concerning the information contained in the separate and consolidated financial<br />
statements for 2008.<br />
800 Report of the Supervisory Board
15. The Supervisory Board supervised, both directly and through the corporate functions<br />
involved in the system of internal controls and the independent auditors, to ensure<br />
that the conduct of subsidiaries was consistent with the objectives set by the Parent<br />
Bank. No matters were considered worthy of mention concerning the adequacy of<br />
instructions given by the Parent Bank to its subsidiaries pursuant to Art. 114,<br />
paragraph 2 of the Consolidated Finance Act nor on the timely reporting performed by<br />
subsidiaries to the Parent Bank in order to comply with disclosure obligations<br />
required by law.<br />
16. No significant issues emerged from the periodical exchanges of information that<br />
occurred through the accounts committee and internal control committee with the<br />
independent auditors KPMG Spa, pursuant to article 150 of Legislative Decree No.<br />
58/1998.<br />
17. <strong>UBI</strong> <strong>Banca</strong> Scpa complies with the corporate governance code for listed companies of<br />
Borsa Italiana of March 2006 and it has therefore prepared a Report on the Corporate<br />
Governance and Ownership Structure of <strong>UBI</strong> <strong>Banca</strong> Scpa which is attached to the<br />
Annual Report.<br />
The corporate governance report furnishes shareholders and the market with an<br />
analysis of the system of corporate governance adopted by <strong>UBI</strong> <strong>Banca</strong> Scpa. It gives<br />
details of the procedures by which the code itself has been complied with by the Bank<br />
and also provides an account of those principles with which the Bank has complied in<br />
full and those that it has chosen not to observe, even only partly, on the basis of the<br />
principle of either “comply or explain”.<br />
The corporate governance report has been prepared in particular to comply with Art.<br />
89 bis of the Issuers Regulations. It also contains information on corporate<br />
governance and ownership structure required by Art. 123 bis of the Consolidated<br />
Finance Act.<br />
18. No omissions, reprehensible actions or irregularities requiring mention to<br />
shareholders emerged from the supervisory activities performed by the Supervisory<br />
Board.<br />
19. To conclude, the Supervisory Board expresses a unanimous opinion in favour of the<br />
proposal for the allocation and distribution of profit formulated by the Management<br />
Board.<br />
***<br />
Dear shareholders, the criteria followed in the management of the Bank to achieve its<br />
mutual objects, as established by Art. 2545 of the Italian Civil Code, are clearly evident and<br />
observable in the activities of the Bank and of the Group as a whole.<br />
In accordance with its model as a ‘popular’ bank, <strong>UBI</strong> <strong>Banca</strong> not only orients its operating<br />
policies towards the production of value in general, but also towards achieving the mutual<br />
objects intrinsic in its institutional model, both through initiatives directed to grant<br />
concessions directly to its registered shareholders and through numerous actions to support<br />
the local economies of the areas in which the bank operates traditionally.<br />
The particular attention paid to registered shareholders as customers also takes the form of<br />
the provisions of services and special concessions, which include the “Value Project”: a set of<br />
banking and insurance concessions, free of charge, destined exclusively to the registered<br />
shareholders of the Bank. The banking concessions are reserved to those who hold a current<br />
account and have shares in the Bank deposited with banks in the Group, while the insurance<br />
policies are for registered shareholders in general. The report on operations in the separate<br />
annual report provides further details of this project.<br />
801 Report of the Supervisory Board
Attention to local needs in a context of subsidiarity and mutuality is also borne out by the<br />
various initiatives to provide social, cultural, scientific, welfare and environmental support<br />
performed directly by the Group’s network banks, which are flanked by initiatives by the<br />
Parent Bank and by the Foundations created by the Group.<br />
All the initiatives undertaken in this respect by the Group are known to the entire Supervisory<br />
Board, which approves of them.<br />
***<br />
Finally the Supervisory Board informs the shareholders’ meeting that it approved the<br />
separate and consolidated financial statements in a meeting held on 10 th April 2009 and it<br />
also verified that they complied with the law. The separate and consolidated financial<br />
statements for 2008 prepared and submitted by the Management Board were unanimously<br />
approved after first having heard reports from the Chairman of the Management Board and<br />
Chief Executive Officer and the declaration by the Financial Reporting Officer.<br />
During that same meeting the internal control committee reported on its activities performed<br />
during the year designed to assess the system of internal control and on the inspections it had<br />
performed to ensure that it was adequate.<br />
The Supervisory Board also received a report from the Accounts Committee on its activities<br />
during the year which involved the examination of the main accounting matters and an<br />
analysis of specific issues of an administrative and accounting nature brought to its attention<br />
from time to time.<br />
***<br />
It should be mentioned that with a view to maintaining, strengthening and improving the<br />
capital of the Group through the implementation of careful, medium term, capital<br />
management initiatives, the Management Board and the Supervisory Board of <strong>UBI</strong> <strong>Banca</strong><br />
have decided to submit a proposal to a shareholders’ meeting of two initial measures (the issue<br />
of warrants free of charge to shareholders and the issue of convertible bonds). These are<br />
designed to increase the loyalty of the shareholder base and to guarantee the continued capital<br />
strength and liquidity of the Group which it currently enjoys and which are considered<br />
important if the Group is to continue to remain close to the local communities and economies<br />
it serves, especially in light of the need to support businesses in the current difficult market<br />
situation.<br />
***<br />
To conclude the Supervisory Board expresses a unanimous opinion in favour of the proposal<br />
for the allocation and distribution of profit formulated by the Management Board, with the<br />
relative distribution of a cash dividend of 45 euro cents per share.<br />
Brescia, 10 th April 2009<br />
The Supervisory Board<br />
802 Report of the Supervisory Board
<strong>REPORT</strong>S ON THE OTHER ITEMS ON<br />
THE AGENDA OF THE<br />
SHAREHOLDERS’ MEETING<br />
803 Report on the items on the agenda<br />
of the Shareholders’ Meeting
Authorisation of the Management Board<br />
concerning own shares<br />
Dear Shareholders,<br />
In compliance with articles 2357 and 2357 bis of the Italian Civil Code, with Legislative Decree<br />
No. 58 of 24 th February 1998 and Consob (Italian securities market authority) Resolution No.<br />
11971 of 14 th May 1999 and subsequent amendments and additions, the shareholders’<br />
meeting held on 10 th May 2008 authorised the Board of Directors to purchase and sell the<br />
Bank’s own shares, with a nominal value of 2,50 euro, within the limits of the existing reserve,<br />
amounting to 64.203.000 euro.<br />
In this respect we propose renewing that authorisation, under the same conditions already<br />
existing and therefore to purchase and sell the Bank’s own shares, with a nominal value of<br />
2,50 euro, within the limits of the existing reserve, amounting to 64.203.000 euro.<br />
In relation to that amount in the reserves, it must be considered that on the basis of IAS 32<br />
“Financial instruments: disclosure and presentation”, own shares that are repurchased must<br />
be deducted, in the accounts, from the share capital (in this respect Bank of Italy circular No.<br />
262/2005 transfers the own shares held in portfolio to asset item 190 in the balance sheet as<br />
a reduction in shareholders’ equity).<br />
Sales of own shares are performed at a price not less than the official price quoted, which is to<br />
say the closing price of the market session prior to each individual sales transaction with the<br />
understanding that the amount from the sale of the shares held returns, up to the carrying<br />
amount, to the funds held in the “reserve for the purchase of own shares”.<br />
The amount corresponding to the difference between the carrying amount and that following<br />
the sale of the shares is recognised directly in shareholders’ equity within item 170 "Share<br />
premiums".<br />
Article 144 bis of the issuers regulations introduced by the Consob Resolution No.<br />
15232/2005, and issued to implement the first paragraph of Art. 132 of the Consolidated<br />
Finance Act as amended by Law No. 62/2005 (the Market Abuse Directive) specifies four ways<br />
of purchasing own shares.<br />
Purchases of own shares may be performed by a public tender offer to purchase or swap, on<br />
the market according to the procedures established in stock exchange regulations, by the<br />
purchase and sale of derivative financial instruments or by granting an option to sell to<br />
registered shareholders in proportion to the shares they hold.<br />
In this respect the shareholders are asked to authorise the Management Board, and the<br />
Chairman and Deputy Chairman, jointly and severally, on its behalf, to purchase own shares<br />
according to the procedures specified in paragraph 1, letter b) of Art. 144 bis of the Issuers<br />
Regulations, and that is to purchase on regulated markets following operational procedures<br />
which guarantee equal treatment of shareholders and do not allow direct proposals to<br />
purchase to be linked to predetermined proposals to sell.<br />
The reasons for requesting this authorisation lie in the ability to act, in compliance with<br />
current rules and regulations in force, mainly for the purposes of stabilising trading in<br />
conditions of excess volatility or of scarce liquidity.<br />
These purchases may be effected within the limits of the existing reserve of 64.203.000 euro<br />
until the shareholders’ meeting convened to make decisions, in accordance with Art. 2364-bis,<br />
No. 4, of the Italian Civil Code on the use of profits for the year ended 31 st December 2009<br />
(after first approving the Annual Report for the year, in the sole hypothesis that the annual<br />
804 Report on the items on the agenda<br />
of the Shareholders’ Meeting
eport has not already been approved by the Supervisory Board) at a price not higher than the<br />
official price or the closing price in the market session prior to each individual transaction and<br />
are charged to the “reserve for the purchase of own shares”, with the further limit that the<br />
shares held as a result of the trades made do no exceed a maximum number equal to 1% of<br />
the share capital.<br />
It is also proposed to authorise the Management Board, and the Chairman and Deputy<br />
Chairman, jointly and severally, on its behalf, in relation to the opportunities and the specific<br />
market conditions, to use its own shares that it holds in portfolio for the exercise of option<br />
rights, however they are denominated, again as long as the price of the option right is not<br />
lower than the carrying amount.<br />
All the above must comply with the rules and regulations issued by the Consob.<br />
Finally as at 31 st December 2008, the Bank held none of its own shares.<br />
Dear Shareholders,<br />
in relation to the above, the Management Board therefore proposes that the ordinary<br />
shareholders’ meeting approves the following resolution:<br />
“The shareholders’ meeting of Unione di Banche Italiane Scpa,<br />
- having considered the proposal of the Board of Directors;<br />
- having taken account of the provisions of the law, of the corporate by-laws and of the<br />
regulations issued by the national commission for companies and the stock exchange (Consob –<br />
Italian securities market authority);<br />
RESOLVES<br />
a) to authorise the Management Board and the Chairman and Deputy Chairman, jointly<br />
and severally, on its behalf, to proceed with one or more transactions until the<br />
shareholders’ meeting convened to make decisions in accordance with Art. 2364-bis, No.<br />
4, of the Italian Civil Code on the use of profits for the year ended 31 st December 2009<br />
(after first approving the Annual Report for the year, in the sole hypothesis that the<br />
annual report has not already been approved by the Supervisory Board) to purchase, by<br />
means of the procedures specified in paragraph 1, letter b), of Art. 144 bis of the Issuers<br />
Regulations, and that is to purchase on regulated markets following operational<br />
procedures which guarantee equal treatment of shareholders and do not allow direct<br />
proposals to purchase to be linked to predetermined proposals to sell, the Bank’s own<br />
shares with a nominal value of 2,50 euro at a price not higher than the official price<br />
quoted in the session prior to each transaction by drawing on the ‘reserve for the<br />
purchase of own shares’ amounting to 64.203.000,00 euro, with the further limit that the<br />
shares possessed must not exceed 1% of the outstanding share capital as a result of the<br />
trading performed;<br />
b) to also authorise the Management Board and the Chairman and Deputy Chairman,<br />
jointly and severally, on its behalf, to proceed with one or more transactions, according to<br />
the aforesaid procedures and within the aforesaid time limits, to the sale of all or part of<br />
the own shares that the Bank may hold at a price not less than the official price or the<br />
closing price in the session prior to each individual sales transaction, by means of normal<br />
stock market trading, with the understanding that the amount from the sale of the shares<br />
held returns, up until the carrying amount, to the funds held in the “reserve for the<br />
purchase of own shares”;<br />
c) to also authorise the Management Board to use the Bank’s own shares for the exercise of<br />
option rights, however they are denominated, as long as the price of the option right is<br />
not lower than the carrying amount;<br />
d) to grant the Management Board and on its behalf the Chairman and the Deputy<br />
Chairman, jointly and severally, all the necessary powers required to implement the<br />
resolution in compliance with the relative regulations of the authorities concerned.”<br />
805 Report on the items on the agenda<br />
of the Shareholders’ Meeting
Bergamo, 7 th April 2009<br />
The Management Board<br />
806 Report on the items on the agenda<br />
of the Shareholders’ Meeting
Appointment of the Board of Arbitration<br />
Dear Shareholders,<br />
The shareholders’ meeting is called upon to elect the members of the Board of Arbitrators for<br />
the three year period 2009-2011.<br />
In compliance with Art. 51 of the corporate by-laws, the Board of Arbitrators is composed of a<br />
Chairman, two full members and two alternate members elected by a shareholders meeting<br />
from among registered shareholders of the Bank or others.<br />
The prior Board of Arbitrators was composed as follows:<br />
Board of Arbitrators<br />
Avv. DONATI Giampiero Chairman<br />
Avv. CAFFI Mario Full arbitrator<br />
Avv. LEGA Giovanni Full arbitrator<br />
Avv. USUELLI Emilio Alternate arbitrator<br />
Avv. ROTA Attilio Alternate arbitrator<br />
The members of the Board of Arbitrators may be re-elected.<br />
The following appointments are proposed:<br />
Board of Arbitrators<br />
Avv. DONATI Giampiero Chairman<br />
Avv. CAFFI Mario Full arbitrator<br />
Avv. ONOFRI Giuseppe Full arbitrator<br />
Avv. ROTA Attilio Alternate arbitrator<br />
Avv. TIRALE Pierluigi Alternate arbitrator<br />
Bergamo, 7 th April 2009<br />
The Management Board<br />
807 Report on the items on the agenda<br />
of the Shareholders’ Meeting
GLOSSARY
ABS (Asset Backed Securities)<br />
Financial instruments issued against securitisations (cf. definition) on which the yield and redemption<br />
are guaranteed by the assets of the originator (cf. definition), which are earmarked exclusively to satisfy<br />
the rights incorporated in the financial instruments themselves. Technically debt securities are issued by<br />
a special purpose entity (SPE - cf. definition). The portfolio underlying the securitisation may consist of<br />
mortgage loans, other loans, bonds, commercial paper, loans resulting from credit cards or even other<br />
assets. Depending on the type of underlying asset, ABSs may be classified as follows:<br />
- credit loan obligation CLO (the portfolio consists of bank loans);<br />
- collateralised bond obligation, CBO (the portfolio consists of bonds);<br />
- collateralised debt obligation, CDO (the portfolio consists of bonds, debt instruments and securities in<br />
general);<br />
- residential mortgage backed security RMBS (the portfolio consists of mortgage loans on residential<br />
properties).<br />
- commercial mortgage backed security, CMBS (the portfolio consists of mortgage loans on commercial<br />
properties).<br />
Acquisition finance<br />
Finance for company acquisition operations<br />
ALM (Asset & Liability Management)<br />
Integrated management of assets and liabilities designed to allocate resources in such a way as to<br />
optimise the risk to yield ratio.<br />
Alternative Investment<br />
A ranges of forms of investment which includes, amongst other things, private equity investments (cf.<br />
definition) and investments in hedge funds (cf. definition).<br />
Asset Management<br />
Management of financial investments belonging to others.<br />
ATM (Automated Teller Machine)<br />
Automatic device used by customers to perform operations such as withdrawing cash, paying in cash or<br />
cheques, requesting information on their accounts, paying utility bills, recharging telephones, etc..<br />
Customers operate the machine by inserting a card and typing in a personal identification number.<br />
Audit<br />
A process for the control of corporate activities and accounts performed by both internal units (internal<br />
audit – cf. definition) and external companies (external audit).<br />
Backtesting<br />
Retrospective analyses designed to test the reliability of measurements of risk attached to the positions of<br />
asset portfolios.<br />
Banc assurance<br />
Term used to refer to the sale of traditional insurance products through a bank’s branch network.<br />
Banking book<br />
This usually identifies that part of a securities portfolio, or in any case financial instruments in general,<br />
destined to “ownership” activities.<br />
Basis point<br />
One hundredth of a percentage point (0,01%).<br />
Basis swap<br />
Contract which involves an exchange between two counterparties of payments linked to variable interest<br />
rates based on different indices.<br />
Basel 2<br />
New international agreement on capital which identifies the guidelines for calculating the minimum<br />
capital requirements for banks 1 .<br />
1 The first version of the agreement, known as Basel 1, dates back to 1988 and was signed in that Swiss city where<br />
the Bank for International Settlements (BIS) has its headquarters, an organisation which has been promoting<br />
monetary and financial co-operation on a worldwide scale since 1930 (it is known in Italy as <strong>Banca</strong> per i regolamenti<br />
Internazionali - BRI). The Basel Committee operates within it, formed by the governors of the central banks of the<br />
ten most industrialised countries (G10) at the end of 1974, and it is this that has formulated the agreements or<br />
“accords”. The following are currently represented on it: Belgium, Canada, France, Germany, Holland, Italy, Japan,<br />
Luxembourg, Spain, Sweden, Switzerland, United Kingdom, United States.<br />
809 Glossary
The new prudential regulations are based on “three pillars”:<br />
first Pillar (Pillar 1): while it maintains the objective of a level of capitalisation equal to 8% of risk<br />
weighted exposures, a new system of rules has been defined for measuring risks typical of banking<br />
and financial activities (credit, counterparty, market and operational risks), which introduces<br />
alternative methods of calculation characterised by different levels of complexity, with the possibility<br />
of using internally developed rating systems, subject to prior authorisation from the Supervisory<br />
Authority.<br />
second pillar (Pillar 2): this requires banks to equip themselves with processes and instruments to<br />
calculate their total internal capital adequacy requirement (Internal Capital Adequacy Assessment<br />
Process - ICAAP) to meet each type of risk, which may even be different from those covered by the<br />
total capital requirement (first pillar). The Supervisory Authority is responsible for reviewing the<br />
ICAAP process, for formulating an overall opinion and, where necessary, for activating appropriate<br />
corrective action;<br />
third pillar (Pillar 3): this introduces the obligation to publish information on capital adequacy,<br />
exposure to risks and the general characteristics of systems designed to identify, measure and<br />
manage these risks.<br />
Benchmark<br />
A standard for the measurement of financial investments: it may consist of well known market indices or<br />
of others that are more suited to the risk-yield profile.<br />
Best practice<br />
Conduct that is comparable with the most significant and/or best level achieved in a given field or<br />
profession.<br />
Business risk<br />
The risk of adverse and unexpected changes in profits and margins with respect to forecasts, connected<br />
with volatility in volumes of business due to competitive pressures and market conditions.<br />
CAGR – Compound Annual Growth Rate<br />
The annual growth rate applied to an investment or other assets for a period of several years. The<br />
formula for calculating CAGR is [(present value/base value)^(1/number of years)-1].<br />
Capital allocation<br />
Process by which decisions are made on how to distribute investments among different types of financial<br />
asset (e.g. bonds, equities and liquidity). Capital allocation decisions are determined by the need to<br />
optimise the risk/return ratio in relation to the time horizon and the expectations of the investor.<br />
Capitalisation (insurance) certificates<br />
Capitalisation contracts fall within the field of application of the legislation on direct life insurance<br />
contained in Legislative Decree No. 174 of 17 th March 1995. As defined in Art. 40 of that legislative<br />
decree, these are contracts with which insurance companies agree to pay capital equal to the premium<br />
paid, revalued periodically on the basis of the return on separate internal management of financial assets<br />
or, if higher, a minimum guaranteed return, as the consideration for the payment of single or periodical<br />
premiums. They cannot have a life of less than five years and the policyholder has the right to cash-in<br />
the policy from the beginning of the second year onwards. In accordance with Art. 31 of the cited<br />
Legislative Decree No. 174, financial assets used to hedge technical reserves are reserved exclusively to<br />
comply with obligations connected with capitalisation contracts (separate management). Consequently, if<br />
the insurance company is placed in liquidation (Art. 67), the beneficiaries of those policies have title as<br />
creditors with special privileges.<br />
Capitalisation policies<br />
See the item “Capitalisation (insurance) certificates”.<br />
Captive<br />
Term generally used to refer to distribution networks or companies that operate exclusively with<br />
customers belonging to the company or group in question.<br />
Commercial paper<br />
The Basel Committee has no supranational authority: the member countries may decide to comply with the accords<br />
but they are not bound to accept the decisions of the committee. The compulsory nature of Basel 2 for EU countries<br />
is in fact the result of a European Parliament directive which adopted it in September 2005.<br />
The first Basel accord, signed by the central authorities of more than 100 countries established the obligation for<br />
the banks participating in it to set aside a share of their capital amounting to 8% of the loans disbursed<br />
independently of an assessment of the reliability of the companies that had requested them, using rating<br />
procedures.<br />
810 Glossary
Short term securities issued to collect funds from third party purchasers as an alternative to other forms<br />
of debt.<br />
Conduit<br />
See the item SPE<br />
Consumer finance<br />
Loans granted to private individuals for the consumption of goods and services.<br />
Core tier 1 ratio<br />
The ratio between the tier 1 capital (cf. definition) net of innovative capital instruments and the total risk<br />
weighted assets (cf. definition).<br />
Corporate governance<br />
Corporate governance defines the assignment of rights and responsibilities to the participants in the life<br />
of a company in relation to the distribution of duties, responsibility and decision making powers by<br />
means of the composition and functioning of internal and external corporate bodies. One fundamental<br />
objective of corporate governance is to create maximum value for shareholders, which, in the medium to<br />
long term, is also advantageous for other stakeholders, such as customers, suppliers, employees,<br />
creditors, consumers and the community.<br />
Cost income ratio<br />
A performance indicator defined as the ratio of operating costs to gross income.<br />
Covered bonds<br />
Special bank bonds which, in addition to the guarantee given by the issuing bank, also offer as security a<br />
portfolio of mortgage or other high credit quality loans transferred for that purpose to a “special purpose<br />
entity” 2 .<br />
Banks which intend to issue covered bonds must have assets of not less than 500 million euro and a<br />
total capital ratio at consolidated level of not less than 9%. The share of the assets potentially useable as<br />
security that are transferred may not exceed the following limits, calculated on the basis of the level of<br />
capitalisation:<br />
- 25% in cases of a capital ratio ≥ 9% and > 10% with tier 1 ratio ≥ 6%;<br />
- 60% in cases of a capital ratio ≥10% and > 11% with tier 1 ratio ≥ 6,5%;<br />
- no limit in cases of a capital ratio ≥11% with tier 1 ratio ≥ 7%.<br />
Credit crunch<br />
Significant fall (or sudden tightening of conditions) in the supply of credit to businesses at the end of a<br />
prolonged expansionary period, capable of worsening the successive recessionary period.<br />
Credit Default Swap<br />
Contract by which one party transfers, for a payment of a periodical premium to the other, a credit risk<br />
attached to a loan or a security when a determined event occurs linked to the deterioration in the<br />
solvency of the debtor.<br />
Credit risk<br />
The risk of incurring losses resulting from the default of a counterparty with whom a position of credit<br />
exposure exists.<br />
Concentration risk<br />
Risk resulting from exposures in the banking portfolio to counterparties, groups of counterparties in the<br />
same economic sector or counterparties which carry on the same business or belong to the same<br />
geographical area. Concentration risk can be divided into two types:<br />
- single name concentration risk;<br />
- sector concentration risk.<br />
Default<br />
A declared condition of being unable to honour debts and/or payment of the relative interest.<br />
Duration<br />
2 Covered bonds issued by banks are regulated in Italy by Law No. 130 of 30 th April 1999 (Art. 7-bis). The way in<br />
which they work is for a bank to transfer high quality credit assets (mortgage loans and loans to public<br />
administrations) to a special purpose entity and for a bank, even a different bank from the transferor, to issue<br />
bonds guaranteed by the special purpose entity with the collateral of the assets acquired which constitute separate<br />
capital. The details for the application of the regulations are contained in Ministerial Regulation No.310 of 14 th<br />
December 2006 and in the supervisory instructions of the Bank of Italy of 15 th May 2007.<br />
811 Glossary
When applied to a bond or bond portfolio, it is an indicator usually calculated as the average weighted<br />
maturities of the interest and capital payments associated with the instrument.<br />
EAD (Exposure At Default)<br />
Estimate of the future value of a position at the time of default (cf. definition) of the relative debtor.<br />
Equity risk<br />
The risk of losses incurred in the equity investments portfolio. This portfolio contains all the equity<br />
investments held by Group member companies in companies outside the Group, which is to say in<br />
companies that are not included in the consolidation where the percentage interest held in the share<br />
capital is less than an absolute majority of the capital.<br />
Euribor (Euro interbank offered rate)<br />
Interbank interest rate at which major banks exchange deposits in euro with varying maturities. It is<br />
calculated each day as the simple average of the rates quoted at 11.00 a.m. on a sample of banks with a<br />
high credit rating selected periodically by the European Banking Federation. Various floating rate loan<br />
contracts are linked to the Euribor rate (e.g. home mortgages).<br />
Factoring<br />
Contract for the sale, either without recourse (with the credit risk attaching to the purchaser) or with<br />
recourse (the credit risk remains with the seller), of trade accounts receivable to banks or specialist<br />
companies, for management and cash receipt purposes, to which a loan to the seller may be associated.<br />
Fair value<br />
The amount of consideration for which an asset can be exchanged, or a liability settled under free market<br />
conditions, between knowledgeable and willing parties. This is often the same as the market price. On<br />
the basis of IAS (cf. definition) banks apply fair value, when measuring the value of financial instruments<br />
(assets and liabilities) held for trading, available for sale and derivatives and they may also use it to<br />
measure the value of equity investments and property, plant and equipment and intangible assets (with<br />
different impacts on the income statement for the different assets considered).<br />
Floor<br />
Derivatives contract on interest rates, traded outside regulated markets, with which a lower limit is set<br />
on the reduction of the lending rate.<br />
FRA (Forward Rate Agreement)<br />
Contract whereby the parties agree to receive (pay) at the end of the contract, the difference between the<br />
amount calculated by applying a set interest rate and the amount obtained on the basis of the level of a<br />
reference rate chosen beforehand by the parties.<br />
Funding<br />
Acquisition in various forms of the funds required for the activities of a company or for particular<br />
financial operations.<br />
Future<br />
Standardised forward contracts with which the parties agree to exchange securities or goods at a set<br />
price on a future date. These contracts are usually traded on organised markets where the execution of<br />
the contract is guaranteed. As opposed to options (cf. definition), which grant the right but not the<br />
obligation to buy, futures contracts oblige the two parties to sell or buy.<br />
Geographical disaster recovery<br />
A set of technical and organisational procedures set in motion when a catastrophe occurs which causes<br />
the complete data processing platform to shut down. The objective is to reactivate EDP functions that are<br />
vital to the company at a secondary (recovery) site. A disaster recovery system is defined as<br />
“geographical” when it is located at least 50 km from the original system. The primary objective is to<br />
mitigate risk arising from disaster events with a potential impact on an entire metropolitan area (i.e.<br />
earthquakes, floods, military intervention, etc.) as prescribed by international safety standards.<br />
Goodwill<br />
This is the amount paid for the acquisition of an interest in a company which is the difference between<br />
the cost and the corresponding proportion of the shareholders’ equity, for that part that is not attributed<br />
to the assets of the company acquired.<br />
Hedge fund<br />
A mutual investment fund which has the possibility (denied to traditional fund managers) of using<br />
sophisticated investment instruments or strategies, such as short selling, derivatives (options or futures,<br />
even up to more than 100% of the assets), hedging (hedging the portfolio against market volatility by<br />
812 Glossary
short selling and the use of derivatives) and financial leverage (borrowing to then invest the money<br />
borrowed).<br />
IBAN (International Bank Account Number)<br />
International standard used to identify bank accounts. The use of the IBAN code – composed of 27<br />
characters – has been compulsory since 1 st July 2008, not just for foreign payments but also for those<br />
made in Italy.<br />
IAS/IFRS<br />
International accounting standards (IAS) set by the International Accounting Standards Board (IASB), a<br />
private sector international body set up in April 2001, to which the accounting professions of major<br />
countries belong, while the European Union, the IOSC (International Organisation of Securities<br />
Commissions) and the Basel Committee participate as observers. This body has taken over from the<br />
International Accounting Standards Committee (IASC), formed in 1973 to promote the harmonisation of<br />
rules for preparing company accounts. When the IASC was transformed into the IASB, one decision<br />
taken was to term the new accounting standards “International Financial Reporting Standards” (IFRS).<br />
An effort is currently being made at international level to harmonise IAS/IFRS with US Gaap (cf.<br />
definition).<br />
Identity access management<br />
A technical and organisational method used to manage and monitor the entire life cycle of granting,<br />
managing and revoking access privileges to ICT resources and therefore to company information by each<br />
user.<br />
Impaired loans<br />
Loans at their face value to persons in situations of objective difficulty where, however, it is felt the<br />
difficulties can be overcome in an appropriate period of time.<br />
Impairment<br />
According to IAS (cf. definition), this is the loss of value in an asset in the accounts, recognised when the<br />
carrying value is greater than the recoverable value, which is to say the amount that could be obtained<br />
from selling it or using it in business. Impairment tests must be performed on all assets except for those<br />
recognised at fair value for which any losses (or gains) in value are implicit.<br />
Index linked<br />
A life policy, the performance of which is linked to that of a reference parameter which could be a share<br />
index, a basket of securities or another indicator.<br />
Interest rate risk<br />
Current or future risk of a change in net interest income and in the economic value of the Bank following<br />
unexpected changes in interest rates which have an impact on the banking portfolio.<br />
Internal audit<br />
Function to which internal audit activity (cf. definition) is attributed institutionally.<br />
Investment banking<br />
Investment banking is a highly specialist financial sector which assists companies and governments to<br />
issue securities and more generally to obtain funds on capital markets.<br />
Investment grade<br />
High quality bonds which have received a medium-to-high rating (cf. definition) (e.g. not less than BBB<br />
on the Standard & Poor’s scale).<br />
Investment property<br />
Property held for the purpose of receiving an income from it or to benefit from an increase in its value.<br />
Investor<br />
Entity, other than the originator (cf. definition) and sponsor (cf. definition), which holds a position in a<br />
securitisation (cf. definition).<br />
IRB (Internal Rating Based)<br />
An internal rating (cf. definition) approach under Basel 2 (cf. definition), divided into basic and advanced<br />
methods. The advanced approach may be used only by banks which meet the strictest minimum<br />
requirements and it allows all estimates of the inputs used for measuring credit risk (PD, LGD, EAD,<br />
Maturity – cf. definitions) to be performed internally. With the basic approach, on the other hand, only<br />
PD is estimated by banks.<br />
813 Glossary
Joint venture<br />
Agreement between two or more companies to perform a determined economic activity usually by forming<br />
a joint stock company.<br />
Junior<br />
In a securitisation (cf. definition), it is the most subordinated tranche of the securities issued, which is<br />
the first to meet the losses that may be incurred in the recovery of the underlying assets.<br />
Leasing<br />
Contract by which one party (lessor) grants the use of an asset to the other party (lessee) for a<br />
determined period of time. The asset is purchased by or constructed for the lessor on the instructions<br />
and as selected by the lessee, where the lessee has the right to purchase the ownership of the asset<br />
under preset conditions at the end of the leasing contract.<br />
LGD (Loss Given Default)<br />
Estimated rate of loss if a debtor defaults (cf. definition).<br />
Liquidity risk<br />
Risk of the failure to meet payment obligations which can be caused either by an inability to raise funds<br />
or by raising them at higher than market costs (funding liquidity risk), or the presence of restrictions on<br />
the ability to sell assets (market liquidity risk) with losses incurred on capital account<br />
Lower Tier 2<br />
Subordinated liabilities which form part of the supplementary or tier 2 capital (cf definition) on condition<br />
that the contract governing their issue expressly stipulates that:<br />
a) in the case of liquidation of the issuer the debt will only be repaid after all the other higher ranking<br />
creditors have been satisfied;<br />
b) the duration of the contract is equal to or longer than 5 years and, if a maturity date is not set,<br />
advance notice of at least 5 years must be given prior to redemption;<br />
c) early repayment of the debt may only take place on the initiative of the issuer and must be<br />
authorised by the Bank of Italy.<br />
The amount of subordinated bonds admissible as supplementary capital is reduced by one fifth each year<br />
over the five years prior to the maturity date of each bond in the absence of an amortisation plan which<br />
has similar effects.<br />
Mark down<br />
Difference between the average borrowing rate for the direct forms of funding employed and the Euribor<br />
rate.<br />
Mark to market<br />
Valuation of a securities portfolio and of other financial instruments on the basis of market prices.<br />
Mark up<br />
Difference between the average lending rate for the forms of lending employed and the Euribor rate.<br />
Market risk<br />
The risk of changes in the market value of positions in the trading portfolio for supervisory purposes due<br />
to unexpected changes in market conditions and creditworthiness.<br />
It also includes risks resulting from unexpected changes in foreign exchange rates and commodities<br />
prices which relate to all balance sheet items.<br />
Maturity<br />
Residual life of an exposure, calculated according to rules of prudence.<br />
Merchant banking<br />
This activity includes: the acquisition of securities, equities or debt, of corporate customers for<br />
subsequent sale on the market; the acquisition of equity interests of a more permanent nature, but again<br />
with the objective of subsequent sale; advisory activities to companies for mergers and acquisitions or<br />
restructuring.<br />
Mezzanine<br />
In a securitisation (cf. definition) it is the tranche with an intermediate level of subordination between<br />
that of the junior (cf. definition) tranche and that of the senior (cf. definition) tranche.<br />
Monoline<br />
814 Glossary
Insurance companies with one single line of business, which is financial insurance. Their activities<br />
include the insurance of bonds (ABS and MBS) for which the underlying assets consist of personal loans<br />
and property mortgage loans. The insurance guarantees the redemption of the bond by assuming direct<br />
responsibility for the risk of debtor insolvency in exchange for a commission.<br />
Non performing<br />
A term which refers generally to loans with irregularities in the repayments.<br />
Non performing loans<br />
Loans to persons or entities that are either insolvent (even if not declared as such in the courts) or in<br />
equivalent circumstances.<br />
NUTS (Nomenclature of Territorial Units for Statistics in Italy)<br />
Nomenclature used for statistics purposes at European level (Eurostat), which involves the following<br />
division.<br />
Northern Italy: Piedmont, Valle d’Aosta, Liguria, Lombardy, Trentino Alto Adige, Veneto, Friuli<br />
Venezia Giulia, Emilia Romagna;<br />
Central Italy: Tuscany, Umbria, Marches, Latium;<br />
Southern Italy: Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sicily, Sardinia.<br />
OICR (collective investment instrument)<br />
This term includes OICVMs (cf. definition) and other mutual investment funds (property mutual<br />
investment funds, closed mutual investment funds).<br />
OICVM (collective equity security investment organisations)<br />
The term includes open, Italian and foreign mutual investment funds and investment companies with<br />
variable capital (Sicavs).<br />
Operational risk<br />
The risk of loss resulting from inadequate or failed procedures, human resources and internal systems or<br />
from exogenous events. This type of risk includes losses resulting from fraud, human error, business<br />
disruption, system failure, non performance of contracts and natural disasters. It includes legal risk.<br />
Options<br />
These consist of the right, but not a commitment, acquired with the payment of a premium, to purchase<br />
(call option) or to sell (put option) a financial instrument at a determined price (strike price) before<br />
(American option) or on (European option) a future date.<br />
Originator<br />
Entity which transfers its portfolio of deferred liquidity assets to an SPE (cf. definition) for it to be<br />
securitised.<br />
OTC (Over The Counter)<br />
Transactions concluded directly between parties without the use of a regulated market.<br />
OTC derivatives traded with customers<br />
Activity to support customers in managing financial risks and more specifically in managing risks<br />
resulting from fluctuations in exchange rates, interest rates and commodity (raw materials) prices.<br />
Past due<br />
Exposures that are past due and/or continuously in arrears for more than 180 days according to the<br />
definition contained in the supervisory instructions in force.<br />
Payout ratio<br />
The percentage of the net profit distributed by a company to its shareholders.<br />
PD (Probability of Default)<br />
The probability that a debtor will reach a default (cf. definition) position over an annual time horizon.<br />
Plain vanilla swap<br />
Interest rate swap (cf. definition) in which one counterparty receives a variable payment linked to the<br />
LIBOR (generally the six month LIBOR) and pays a fixed rate to the other counterparty, obtained by<br />
adding a spread to the yield on a specified type of government security.<br />
POS terminal (point of sale terminals)<br />
Automatic device for the payment of goods or services at suppliers premises using credit, debit or prepaid<br />
cards.<br />
815 Glossary
Preference shares<br />
Innovative capital instruments issued by foreign subsidiaries in the banking group, which combine yields<br />
linked to market rates with particularly low subordination such as for example no recovery in future<br />
years of interest not paid by the parent bank and sharing in the losses of the bank itself if these losses<br />
result in a substantial reduction in capital requirements. The conditions under which preference shares<br />
can be included in the tier 1 capital of banks and banking groups are set out in the supervisory<br />
instructions of the Bank of Italy.<br />
Price sensitive<br />
A term which generally refers to information or data that is not in the public domain, which if disclosed<br />
would have a marked effect on the price of a security.<br />
Private equity<br />
Activities involving the acquisition of equity interests and the subsequent placement with specific<br />
counterparties without offering them for sale to the public.<br />
Project finance<br />
Financing of projects on the basis of forecasts of the cash flows that will be generated by them. As<br />
opposed to the way in which risks are analysed with ordinary lending, with the project financing<br />
technique, not only are the expected cash flows analysed, but specific factors are also examined such as<br />
the technical aspects of the project, the suitability of the sponsors for carrying it out and the markets on<br />
which the products will be sold.<br />
Rating<br />
A rating of the quality of a company or its issues of debt securities on the basis of the soundness of the<br />
company’s finances and its prospects.<br />
Reputation risk<br />
The risk of incurring losses resulting from a negative perception of the image of the Bank by customers,<br />
counterparties, shareholders of the Bank, investors, the supervisory authority or other stakeholders.<br />
Residual risk<br />
The risk of incurring losses resulting from the unforeseen ineffectiveness of established methods of<br />
mitigating risk used by the Bank.<br />
Restructured loan<br />
Position for which a Bank has agreed a longer period of repayment for a debtor, renegotiating the<br />
exposure at lower than market rates.<br />
Risk free rate<br />
Rate of interest on a risk free asset. In practice it is used to refer to the interest rate on short term<br />
government securities even if they cannot be considered risk free.<br />
Risks resulting from securitisations<br />
The risk that the underlying economic substance of a securitisation is not fully reflected in decisions<br />
made to measure and manage risk.<br />
Risk weighted assets<br />
A figure obtained by multiplying the total supervisory capital requirements (credit risks, market risk and<br />
other prudential requirements) by a coefficient of:<br />
-14,3 for companies belonging to banking groups;<br />
-12,5 for banking groups (consolidated) and companies that do not belong to banking groups.<br />
Securitisation<br />
Operation to sell debts or other financial assets that are not negotiable instruments to a special purpose<br />
entity (SPE – cf. definition) whose sole business is to perform those operations and to convert those loans<br />
or assets into securities traded on secondary markets.<br />
Senior<br />
In a securitisation transaction (cf. definition) it is the tranche with the highest level of privilege in terms of<br />
priority for remuneration and repayment.<br />
Sensitivity analysis<br />
System of analysis designed to detect the sensitivity of determined assets or liabilities to changes in<br />
interest rates and other reference parameters.<br />
816 Glossary
SEPA (Single European Payments Area)<br />
The Single Euro Payments Area came into force on 1 st January 2008, within which payments will<br />
gradually be able to be made and received in euro under the same standard basic conditions, rights and<br />
obligations. A total of 31 European countries have joined (in addition to the 27 countries of the European<br />
Union, also Switzerland, Norway, Iceland and Liechtenstein). The introduction of the new IBAN (cf.<br />
definition) bank code is one of the instruments used to standardise banking transactions.<br />
Servicer<br />
In securitisation (cf. definition) transactions, it is a company which continues to manage the debts or<br />
assets subject to securitisation on the basis of a special servicing contract after they have been sold to<br />
the special purpose entity responsible for issuing the securities.<br />
SPE/SPV<br />
Special purpose entities (SPE) or special purpose vehicles (SPV) – also known as conduits - are entities<br />
(companies, trusts or other entities), specially formed to achieve a determined objective that is welldefined<br />
and circumscribed, or to perform a specific operation.<br />
SPEs/SPVs have a legal status that is independent from the others involved in the operation and<br />
generally have no operating or management units of their own.<br />
Sponsor<br />
Entity, other than the originator (cf. definition), which establishes and manages a conduit entity (cf.<br />
definition), as part of a securitisation transaction (cf. definition).<br />
Spread<br />
This term normally refers to:<br />
-the difference between two interest rates;<br />
-the difference between the buying (bid) price and the selling (asking) price in securities trading;<br />
-the premium that the issuer of securities recognises in addition to a reference rate.<br />
Staff leasing contract (Contratto di somministrazione di lavoro)<br />
A fixed term labour contract regulated by Legislative Decree No. 276 of 10 th September 2003 (the “Biagi<br />
Law” based on Law No. 30 of 14 th February 2003), whereby a legal entity uses the services of a worker<br />
employed by a staff leasing agency authorised by the Ministry of Labour. The relations between the user<br />
company and the leasing agency are governed by a staff leasing contract which also regulates wages and<br />
social security contributions.<br />
This form of contract replaced those which governed temporary agency work regulated by Law No. 196 of<br />
24 th June 1997 (the “Treu reform”).<br />
Stakeholder<br />
Individuals or groups who have specific interests in an enterprise either because they depend upon it to<br />
achieve their goals or because they are considerably effected by the positive or negative effects of its<br />
activities.<br />
Stock Options<br />
Term used to refer to options offered to the managers of a company which allow them to purchase shares<br />
in the company at a set price.<br />
Strategic risk<br />
Current or future risk of a fall in profits or in capital resulting from:<br />
- changes in the operating context;<br />
- errors in corporate decision-making;<br />
- inadequate implementation of decisions;<br />
- failure to react to change in a competitive environment.<br />
Stress test<br />
A simulation procedure used to assess the impact of “extreme”, but plausible, market scenarios on the<br />
Bank’s exposure to risk.<br />
Structured notes<br />
Bonds for which the interest and/or the redemption value depend on a real parameter (linked to the<br />
price of a commodity) or the performance of indices. In these cases the implicit option is unbundled from<br />
the host contract in the accounts.<br />
When it is linked to interest rates or inflation (e.g. CCTs – Treasury Certificates of Credit), the implicit<br />
option is not unbundled from the host contract in the accounts.<br />
Subordinated bonds<br />
817 Glossary
Financial instruments for which the conditions of sale state that the bearers of the debt certificates are<br />
satisfied after other creditors if the issuing entity goes into liquidation.<br />
Subprime mortgages<br />
The concept of subprime does not refer to the loan in itself, but rather to the borrower. Technically it<br />
refers to a borrower who does not have a fully positive credit history, because characterised by negative<br />
lending events such as for example the presence of repayments on previous loans not made, of cheques<br />
without funds and/or protested and so on. These past events are symptomatic of a greater intrinsic<br />
riskiness of counterparties from whom a corresponding higher remuneration is requested by the lender<br />
who grants them a mortgage.<br />
Business with subprime customers developed in the American financial market where the grant of these<br />
loans was usually accompanied by securitisation activity and the issue of securities.<br />
Alt-A mortgage loans are defined as loans granted on the basis of incomplete or inadequate information.<br />
Subrogation<br />
A procedure by which a mortgage borrower negotiates a new mortgage with another bank to pay-off the<br />
original mortgage by transferring the pledge of the same security (the mortgage on the property) which<br />
applied to the “original” bank to the new bank.<br />
Supervisory capital<br />
This consists of the sum of the tier 1 capital – admitted in the calculation without any limitation – and<br />
the supplementary capital which is admitted up to the maximum amount of the core capital.<br />
Equity holdings, innovative capital instruments, hybrid capital instruments and subordinated assets<br />
held in other banks and financial companies are deducted in the measure of 50% from the tier 1 capital<br />
and 50% from the supplementary capital (more specifically non consolidated equity interests of more<br />
than 10% held in banks and financial companies as well as equity interests of less than 10% in banks<br />
and financial companies and subordinated assets issued by banks, which exceed 10% of the core and<br />
the supplementary capital are deducted).<br />
Equity investments in insurance companies, subordinated liabilities issued by them and securitisation<br />
positions are also deducted.<br />
Swaps (interest rate swaps and currency swaps)<br />
A transaction consisting of the exchange of cash flows between counterparties according to contracted<br />
conditions. With an interest rate swap the counterparties exchange the interest payments calculated on<br />
notional reference capital on the basis of different criteria (e.g. one counterparty pays a fixed rate and<br />
the other a variable rate). In the case of currency swaps, the counterparties exchange specific amounts<br />
of two different currencies, returning them over time according to set conditions which concern both the<br />
principal and the interest.<br />
Tankan index<br />
An indicator of the performance of the Japanese economy constructed on the basis of the results of a<br />
survey conducted by the Bank of Japan in the last month of each quarter. The survey is on both<br />
manufacturing and services sectors, segmented according to the size of the businesses (large, medium or<br />
small).<br />
Tier I (tier 1 capital)<br />
This consists of equity share capital paid in, reserves (inclusive of the share premiums), innovative<br />
capital instruments (but only if they meet the conditions to fully guarantee the stability of the bank 3 ),<br />
profit for the period and positive tier 1 capital prudential filters. Own shares, goodwill and intangible<br />
fixed assets, prior and current year losses, impairment losses on the trading portfolio for supervisory<br />
purposes and negative tier 1 capital filters are deducted from those items.<br />
Tier II (supplementary capital)<br />
This consists of valuation reserves, innovative capital instruments not eligible for inclusion in tier 1<br />
capital, hybrid capital instruments (irredeemable debt and other instruments redeemable on request of<br />
the issuer with the prior consent of the Bank of Italy) subordinated liabilities (for an amount reduced by<br />
one fifth over the five years prior to the maturity date), net gains on equity investments, positive<br />
supplementary capital prudential filters, any excess of net impairment losses over expected losses and<br />
positive exchange rate differences. The following negative elements are deducted from those items: net<br />
losses on equity investments, negative supplementary capital prudential filters, other negative items.<br />
3 Innovative capital instruments may be included in the tier 1 capital up to a limit equal to 20 percent of the tier 1<br />
capital, inclusive of the instruments themselves. In respect of that limit, instruments which contain automatic<br />
revision of rates of remuneration (termed ‘step-up’ clauses) connected with redemption rights or other types of<br />
clause designed as an incentive for redemption by the issuer must remain with a limit equal to 15 percent of the tier<br />
1 capital, inclusive of the instruments themselves. Any excess may be included in the supplementary capital on a<br />
par with hybrid capitalisation instruments.<br />
818 Glossary
Tier III (third level subordinated debt)<br />
Subordinated bonds that satisfy the following conditions:<br />
- they have been fully paid;<br />
- they do not form part of the supplementary capital (cf. definition);<br />
- they have an original life equal to or longer than two years; if the maturity is not set, the advance<br />
notice of the maturity must be at least two years;<br />
- they meet the conditions specified for similar liabilities included in the supplementary capital except<br />
of course those concerning the life of the debt;<br />
- they are subject to a “lock in” clause according to which the capital and the interest cannot be repaid<br />
if the repayment reduces the total amount of the bank’s capital to a level lower than 100% of the total<br />
capital requirements.<br />
Trading book<br />
This usually identifies that part of a securities portfolio, or in any case financial instruments in general,<br />
destined to trading activities.<br />
Trading on line<br />
System for buying and selling financial instruments on the stock exchange via Internet.<br />
Trigger event<br />
A contractually predefined event, which determines the creation of rights in favour of the parties to the<br />
contract when it occurs.<br />
TROR (total rate of return swap)<br />
This is a contract with which a “protection buyer” (also known as a “total return payer”) agrees to pay all<br />
the cash flows generated by a “reference obligation” to a “protection seller” (also know as the total return<br />
receiver), who in return transfers the cash flows linked to the performance of a “reference rate” to the<br />
“protection buyer”. On the dates on which the coupons for the cash flows are paid (or at the end of the<br />
contract), the “total return payer” pays the “total return receiver” any increase there may be in the<br />
“reference obligation”; if, on the other hand the “reference obligation” has decreased then it is the “total<br />
return receiver” who pays the relative amount to the “total return payer”. A TROR is in actual fact a<br />
structured financial product consisting of a combination of a credit derivative and an interest rate swap<br />
(cf. definition).<br />
Unit-linked<br />
Life insurance policies with performance linked to the value of investment funds.<br />
Upper Tier II<br />
Hybrid capitalisation instruments which form part of the supplementary or tier 2 capital (cf. definition)<br />
when the contract specifies that:<br />
a) if there are losses in the accounts which cause a decrease in the capital paid in and in the reserves<br />
below the minimum level required for the authorisation to operate as a bank, the sums from those<br />
liabilities and the interest accruing on them can be used to replenish the losses, in order to allow the<br />
issuing entity to continue its business;<br />
b) if operating performance is negative, the right to remuneration can be suspended by that amount<br />
needed to prevent or limit the occurrence of losses as much as possible;<br />
c) in the case of liquidation of the issuer, the debt will only be repaid after all the other higher ranking<br />
creditors have been satisfied;<br />
Non irredeemable hybrid capitalisation instruments must have a life equal to or longer than ten years.<br />
There must be a specific clause in the contract stating that repayment is dependent on Bank of Italy<br />
authorisation.<br />
US GAAP (Generally Accepted Accounting Principles)<br />
Accounting standards issued by the FASB (Financial Accounting Statement Board), which are generally<br />
accepted in the United States of America<br />
VaR (Value at Risk)<br />
A measure of the maximum potential loss that may be incurred on a financial instrument or portfolio<br />
with a set probability (level of confidence) in a determined time period (the reference or holding period).<br />
Warrant<br />
Negotiable instrument which grants the holder the right to purchase fixed rate securities or shares from<br />
the issuer or sell them to the issuer under precise conditions.<br />
Zero-coupon<br />
Bonds which do not pay an interest coupon, where the yield is given by the difference between the issue<br />
(or purchase) price and the redemption price.<br />
819 Glossary
Branch network of the<br />
<strong>UBI</strong> <strong>Banca</strong> Group
Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group<br />
www.ubibanca.it<br />
Bergamo Via Crispi, 4<br />
Brescia Via Cefalonia, 74<br />
www.bpb.it<br />
LOMBARDIA<br />
Provincia di Bergamo<br />
Bergamo<br />
Piazza Vittorio Veneto, 8<br />
Viale Vittorio Emanuele II, 5 (c/o Inps Bg)<br />
Via dei Caniana, 2 (c/o Università)<br />
Via Borgo Palazzo, 51<br />
Via Borgo Santa Caterina, 6<br />
Via Suardi, 24B (c/o A2A Spa)<br />
Via Gombito, 6<br />
Via Borgo Palazzo, 135<br />
Via Gleno, 49<br />
Via Mattioli, 69<br />
Piazza Risorgimento, 15<br />
Piazza Pontida, 39<br />
Via Leone XIII, 2<br />
Via San Bernardino, 96<br />
Adrara San Martino Via Madaschi, 103<br />
Albano Sant’Alessandro Via Cavour, 2<br />
Albino<br />
Via Mazzini, 181<br />
Via Lunga, 1 (Fraz. Fiobbio)<br />
Almè Via Torre d’Oro, 2<br />
Almenno San Bartolomeo Via Falcone, 2<br />
Almenno San Salvatore Via Marconi, 3<br />
Alzano Lombardo Piazza Garibaldi, 3<br />
Arcene Corso Europa, 7<br />
Ardesio Via Locatelli, 8<br />
Azzano San Paolo Piazza IV Novembre, 4<br />
Bariano Via A. Locatelli, 12<br />
Barzana Via San Rocco<br />
Berbenno<br />
Via Stoppani, 88 (Fraz. Ponte Giurino)<br />
Piazza Roma, 2<br />
Boltiere Piazza IV Novembre, 14<br />
Bonate Sopra Piazza Vittorio Emanuele II, 20<br />
Brembilla Via Libertà, 25<br />
Brignano Gera d’Adda Via Mons. Donini, 2<br />
Calcinate Via Coclino, 8/C<br />
Calcio Via Papa Giovanni XXIII, 153<br />
Calusco d’Adda Via Vittorio Emanuele II, 7<br />
Capriate San Gervasio Via Parigi, 4<br />
Caprino Bergamasco Via Roma, 10<br />
Caravaggio Piazza G. Garibaldi, 1<br />
Carvico Via Europa Unita, 3<br />
Casazza Via Nazionale del Tonale, 92<br />
Casirate d’Adda Piazza Papa Giovanni XXIII, 1<br />
Castione della Presolana<br />
Via Donizetti, 2 (Fraz. Bratto - Dorga)<br />
Via A. Manzoni, 20<br />
Cazzano Sant’Andrea Via A. Tacchini, 18<br />
Cenate Sopra Via Giovanni XXIII, 16<br />
Cenate Sotto Via Verdi, 5<br />
Cene Via Vittorio Veneto, 9<br />
Chiuduno Via Cesare Battisti, 1<br />
Cisano Bergamasco Via Pascoli, 1<br />
Ciserano<br />
Via Pilabrocc, 10<br />
Corso Europa, 17 (Fraz. Zingonia)<br />
Cividate al Piano Via Papa Giovanni XXIII, 3<br />
Clusone Via Verdi, 3<br />
Colere<br />
Via Tortola, 58<br />
Via Papa Giovanni XXIII, 33<br />
(Fraz. Dezzo di Scalve)<br />
Comun Nuovo Via Cesare Battisti, 5<br />
Costa Volpino Via Nazionale, 150<br />
Curno Largo Vittoria, 31<br />
Dalmine<br />
Via Buttaro, 2<br />
P.zza Caduti 6 luglio 1944 (c/o Tenaris Spa)<br />
Dossena Via Carale, 9<br />
Entratico Piazza Aldo Moro, 18<br />
Fontanella Via Cavour, 156<br />
Foresto Sparso Via Tremellini, 1<br />
Gandino Via C. Battisti, 5<br />
Gazzaniga Via Marconi, 14<br />
Gorlago Piazza Gregis, 12<br />
Gorle Piazzetta del Donatore, 5<br />
Grassobbio Viale Europa, 8/B<br />
Grumello del Monte<br />
Via Martiri della Libertà, 10<br />
Leffe Via Mosconi, 1<br />
Lovere Via Tadini, 30<br />
Lovere-Lovere Sidermeccanica Spa<br />
Via Paglia, 45<br />
Madone Via Papa Giovanni XXIII, 44<br />
Mapello Piazza del Dordo, 5<br />
Martinengo Via Pinetti, 20<br />
Nembro Piazza della Libertà<br />
Orio al Serio Via Aeroporto, 13<br />
Osio Sopra Via XXV Aprile, 29<br />
Osio Sotto Via Cavour, 2<br />
Paladina Via IV Novembre, 13<br />
Palosco Piazza A. Manzoni, 16<br />
Parre Via Duca d’Aosta, 20/A<br />
Piazza Brembana Via B. Belotti, 10<br />
Ponte Nossa Via Frua, 24<br />
Ponteranica Via Pontesecco, 32<br />
Ponte San Pietro Piazza SS Pietro e Paolo, 19<br />
Pontida Via Lega Lombarda, 161<br />
Presezzo Via Capersegno, 28<br />
Ranica Piazza Europa, 2<br />
Romano di Lombardia Via Tadini, 2<br />
Rovetta Via Tosi, 13<br />
San Giovanni Bianco<br />
Via Martiri di Cantiglio, 19<br />
San Pellegrino Terme Via S. Carlo, 3<br />
Sant’Omobono Terme Viale alle Fonti, 8<br />
Sarnico Piazza Umberto I<br />
Scanzorosciate Via Roma, 27<br />
Schilpario Via Torri, 8<br />
Sedrina Via Roma, 14<br />
Selvino Via Monte Rosa - angolo Via Betulle<br />
Seriate Viale Italia, 24<br />
Sovere Via Roma, 36<br />
Spirano Via Dante, 9/B<br />
Stezzano Via Bergamo, 1<br />
Suisio Via Carabello Poma, 31<br />
Taleggio Via Roma, 63 (Fraz. Olda)<br />
Tavernola Bergamasca Via Roma, 12<br />
Telgate Via Morenghi, 17<br />
Torre Boldone Via Carducci, 12<br />
Torre de Roveri Piazza Conte Sforza, 3<br />
Trescore Balneario Via Locatelli, 45<br />
Treviglio Viale Filagno, 11<br />
Urgnano Via Matteotti, 157<br />
Valbrembo Via Roma, 52<br />
Verdello Via Castello, 31<br />
Vertova Via S. Rocco, 45<br />
Villa d’Adda Via Fossa, 8<br />
Villa d’Almè<br />
Via Roma - angolo Via Locatelli, 1<br />
Villongo Via Bellini, 20<br />
Vilminore di Scalve Piazza Giovanni XXIII, 2<br />
Zandobbio Via G. Verdi, 2<br />
Zogno Viale Martiri della Libertà, 1<br />
Provincia di Brescia<br />
Brescia Via Gramsci, 39<br />
Chiari Via Bettolini, 6<br />
Concesio Viale Europa, 183<br />
Darfo Boario Terme Piazza Col. Lorenzini, 6<br />
Desenzano del Garda Viale Andreis, 74<br />
Esine Via Manzoni, 97<br />
Manerbio Via Dante, 5<br />
Orzinuovi Piazza Vittorio Emanuele II, 31/33<br />
Ospitaletto Via Martiri della Libertà, 27<br />
Palazzolo sull’Oglio Piazza Roma, 1<br />
Paratico Via Don G. Moioli, 17<br />
Rezzato Via Europa, 5<br />
San Paolo Via Mazzini, 62<br />
San Zeno Naviglio Via Tito Speri, 1<br />
Provincia di Como<br />
Como<br />
Via Giovio, 4<br />
Via dei Mille, 2/B<br />
Via Badone, 48 (Fraz. Camerlata)<br />
Cantù<br />
Piazza Marconi, 9<br />
Via Enrico Toti, 1/A (Fraz. Vighizzolo)<br />
Cermenate Via Matteotti, 28<br />
Erba Via Leopardi, 7/E<br />
Mariano Comense Corso Brianza, 20<br />
Oltrona San Mamette Piazza Europa, 6<br />
Rovellasca Via Volta, 1<br />
Provincia di Cremona<br />
Cremona Via Dante, 241<br />
Soncino Via IV Novembre, 25<br />
Provincia di Lecco<br />
Lecco Corso Matteotti, 3<br />
Calco Via Italia, 8<br />
Calolziocorte Piazza Vittorio Veneto, 18/A<br />
Carenno Via Roma, 36<br />
Cernusco Lombardone Via S. Caterina, 4<br />
Monte Marenzo Piazza Municipale, 5<br />
Olginate Via S. Agnese, 38<br />
Valmadrera Via Fatebenefratelli, 23<br />
Provincia di Mantova<br />
Mantova<br />
Via Madonna dell’orto, 6<br />
Piazza de Gasperi, 20<br />
Bagnolo San Vito<br />
Via Di Vittorio, 35 (Fraz. San Biagio)<br />
Borgofranco sul Po<br />
Via Martiri della Libertà, 64<br />
Castiglione delle Stiviere Via Cavour, 25<br />
Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group<br />
821
Magnacavallo Via Roma, 23<br />
Moglia Piazza Libertà, 19<br />
Ostiglia Via Vittorio Veneto, 14<br />
Poggio Rusco Via Trento e Trieste, 9<br />
Quistello<br />
Via G. Marconi, 12<br />
Via Europa, 49 (Fraz. Nuvolato)<br />
Sermide Via Cesare Battisti, 4<br />
Villa Poma Piazza Mazzali, 7<br />
Provincia di Milano<br />
Milano<br />
Via Manzoni, 7<br />
Corso Europa, 16<br />
(c/o Centrobanca Spa)<br />
Piazzale Zavattari, 12<br />
Via Pellegrino Rossi, 26<br />
Via Melchiorre Gioia, 28<br />
Piazza Cinque Giornate, 1<br />
Piazza Siena, 18<br />
Piazzale Susa, 2<br />
Via Biondi, 1<br />
Via Foppa, 26<br />
Via Friuli, 16/18<br />
Via C. Menotti, 21 - ang. Via G. Modena<br />
Viale delle Rimembranze di Lambrate, 4<br />
Viale L. Sturzo, 33/34<br />
Via Saffi, 6/5<br />
Corso Italia, 22<br />
Via Richard, 5 (c/o Nestlè Spa)<br />
Via A. Trivulzio, 6/8<br />
Via Palestrina, 12 - ang. Viale A. Doria<br />
Abbiategrasso Piazza Cavour, 11<br />
Agrate Brianza Via C. Olivetti, 2<br />
(c/o St Microelectronics Spa)<br />
Arluno Via Piave, 7<br />
Bellinzago Lombardo Via delle 4 Marie, 8<br />
Carate Brianza Via Cusani, 49/51<br />
Carnate Via Don Minzoni<br />
Cassano d’Adda Via Milano, 14<br />
Cinisello Balsamo Piazza Soncino, 1<br />
Concorezzo Via Monza, 33 (Alcatel Italia Spa)<br />
Cornaredo<br />
Via Magenta, 34<br />
Via Tolomeo, 1 (c/o St Microelectronics Spa)<br />
Desio Via Matteotti, 10<br />
Garbagnate Milanese<br />
Via Kennedy, 2 (Fraz. S. M. Rossa)<br />
Grezzago Piazza Aldo Moro<br />
Inveruno Via Magenta, 1<br />
Legnano<br />
Corso Sempione - angolo Via Toselli<br />
Piazza Don Sturzo, 13<br />
Magenta Piazza Vittorio Veneto, 11<br />
Meda Via Indipendenza, 111<br />
Melzo Piazza Risorgimento, 2<br />
Mezzago Via Concordia, 22<br />
Monza<br />
Via Borgazzi, 83<br />
Piazza Giuseppe Cambiaghi, 1<br />
Via San Rocco, 44<br />
Via Pesa del Lino, 2<br />
Nova Milanese Via Brodolini, 1<br />
Novate Milanese Via Amendola, 9<br />
Rho Via Pace, 165 (Fraz. Mazzo Milanese)<br />
Seregno Via S. Vitale, 17<br />
Sesto San Giovanni Via Casiraghi, 167<br />
Solaro Via Mazzini, 66<br />
Sulbiate Via Mattavelli, 2<br />
Trezzano Rosa Via Raffaello Sanzio, 13/S<br />
Trezzo sull’Adda Via A. Sala, 11<br />
Vaprio d’Adda Piazza Caduti, 2<br />
Villasanta Via Confalonieri, 5<br />
Vimercate<br />
Via B. Cremagnani, 20/A<br />
Via Torri Bianche, 3<br />
Via Garibaldi, 12<br />
Via Trento, 30 (c/o Alcatel - Lucent Spa)<br />
Provincia di Pavia<br />
Vigevano Via Sacchetti<br />
Voghera Via XX Settembre, 1<br />
Provincia di Varese<br />
Varese<br />
Via Vittorio Veneto, 2<br />
Via Dalmazia, 63<br />
Piazza IV Novembre,1 (Fraz. Biumo Inferiore)<br />
Via Valle Venosta, 4<br />
(Fraz. Biumo Inferiore - c/o Ascom Varese)<br />
Viale Luigi Borri, 155<br />
Viale Borri, 237 (c/o Bassani Ticino Spa)<br />
Via Pasubio, 2<br />
Via Caracciolo, 24<br />
Via Virgilio, 27<br />
Azzate Via Vittorio Veneto, 23<br />
Besozzo Via XXV Aprile, 77<br />
Bodio Lomnago Via Risorgimento, 23<br />
Busto Arsizio<br />
Piazza S. Giovanni, 3/A<br />
Corso Italia, 33<br />
Via Magenta, 64<br />
Viale Alfieri, 26<br />
Cairate<br />
Via Mazzini, 13<br />
Via Genova, 1<br />
(Fraz. Bolladello)<br />
Caravate Via XX Settembre, 22<br />
Cardano al Campo<br />
Via Gerolamo da Cardano, 19<br />
Caronno Pertusella Via Roma, 190<br />
Casale Litta Via Roma, 4<br />
Casorate Sempione Via Milano, 17<br />
Cassano Magnago Via Aldo Moro, 10/B<br />
Castiglione Olona Via Papa Celestino, 22<br />
Cislago Via IV Novembre, 250<br />
Clivio Via Ermizada, 10<br />
Cuvio Via Giuseppe Maggi, 20<br />
Daverio Via Giovanni XXIII, 1<br />
Fagnano Olona Piazza Cavour, 11<br />
Ferno Piazza Dante Alighieri, 7<br />
Gallarate<br />
Via A. Manzoni, 12<br />
Via Buonarroti, 20<br />
Via Marsala, 34<br />
Via Varese, 7/A (Fraz. Cascinetta)<br />
Gavirate Piazza della Libertà, 2<br />
Gazzada Schianno Via Roma, 47/B<br />
Gerenzano Via G.P. Clerici, 124<br />
Gorla Maggiore Via Verdi, 2<br />
Gornate Olona Piazza Parrocchetti, 1<br />
Induno Olona Via G. Porro, 46<br />
Ispra Via Mazzini, 59<br />
Jerago con Orago Via Matteotti, 6<br />
Lavena Ponte Tresa Via Valle, 4<br />
Laveno Mombello Via Labiena, 53<br />
Lonate Ceppino Via Don Albertario, 3<br />
Lonate Pozzolo Piazza Mazzini, 2<br />
Luino Via Vittorio Veneto, 6/A<br />
Malnate<br />
Piazza Repubblica - angolo Via Garibaldi<br />
Marnate Via Diaz, 12 - angolo Via Genova<br />
Mercallo Via Prandoni, 19<br />
Mesenzana Via Provinciale, 11<br />
Mornago Via Cellini, 3 - angolo Via Carugo<br />
Olgiate Olona Via G. Mazzini, 56<br />
Origgio<br />
Via Repubblica, 10<br />
Strada Statale Varesina, 233<br />
(c/o Novartis Italia Spa)<br />
Saltrio Via Cavour, 27<br />
Samarate Via N. Locarno, 19 (Fraz. Verghera)<br />
Saronno<br />
Via P. Micca, 10<br />
Via Roma, 85<br />
Sesto Calende Via XX Settembre, 35<br />
Solbiate Arno Via A. Agnelli, 7<br />
Somma Lombardo<br />
Corso della Repubblica - ang. Via Rebaglia<br />
Ternate Piazza Libertà, 14<br />
Tradate<br />
Via XXV Aprile, 1 - angolo Corso Ing. Bernacchi<br />
Via Vittorio Veneto, 77 (Fraz. Abbiate Guazzone)<br />
Uboldo Via R. Sanzio, 46<br />
Varano Borghi Via Vittorio Veneto, 6<br />
Vedano Olona Piazza S. Rocco, 8<br />
Venegono Inferiore Via Mauceri, 16<br />
Venegono Superiore Via Paolo Busti, 3<br />
Viggiù Via A. Castagna, 1<br />
PIEMONTE<br />
Provincia di Alessandria<br />
Casale Monferrato Via Hugues, 1<br />
Provincia di Asti<br />
Canelli Corso Libertà, 68<br />
Provincia di Biella<br />
Biella Via Nazario Sauro, 2<br />
Cossato Via Pajetta, 11/B<br />
Provincia di Cuneo<br />
Cuneo Piazza Europa, 9<br />
Alba Piazza Savona, 3/A<br />
Provincia di Novara<br />
Novara Largo Don Minzoni, 1<br />
Borgomanero Via Garibaldi, 92/94<br />
Oleggio Via Mazzini, 15<br />
Trecate Piazza Dolce, 10<br />
Provincia di Torino<br />
Torino<br />
Corso Matteotti, 15<br />
Via Alfieri, 17<br />
Piazza Adriano, 5<br />
Corso L. Einaudi, 15/17<br />
Piazza Gran Madre di Dio, 12/A<br />
Corso Sebastopoli, 166<br />
Corso Trapani, 98<br />
Airasca Via Roma, 101<br />
Alpignano Via Cavour, 125<br />
Chianocco Frazione Vernetto, 10<br />
Chivasso Via Po, 5<br />
Collegno Via XXIV Maggio, 1<br />
Moncalieri Strada Villastellone, 2<br />
Nichelino Via Torino, 172<br />
None Via Roma, 23<br />
Pinerolo Piazza Vittorio Veneto, 20<br />
Rivoli Piazza Martiri della Libertà, 5<br />
Rondissone Piazza Roma, 1<br />
Santena Via Cavour, 43<br />
Settimo Torinese Via Petrarca, 9<br />
Villar Perosa Via Nazionale, 39/A<br />
LAZIO<br />
Provincia di Roma<br />
Roma<br />
Via dei Crociferi, 44<br />
Via del Monte della Farina, 23<br />
Via S. Silverio, 57<br />
822 Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group
Largo Salinari, 24 - ang. Via B. Croce 82/84<br />
Viale Gorizia, 34<br />
Via di Porta Castello, 32<br />
Via Val Maira, 125/131<br />
Via Tiburtina, 604<br />
Via dell’Aeroporto, 14/16<br />
Via Pietro Boccanelli, 30<br />
(c/o Sviluppo Italia Spa - Campo Elba)<br />
Via Calabria, 46 (c/o Sviluppo Italia Spa)<br />
Via Gattamelata, 109<br />
Monterotondo Via Salaria, 204<br />
Pomezia Via dei Castelli Romani, 22<br />
EMILIA ROMAGNA<br />
Provincia di Bologna<br />
Bologna<br />
Via Ercolani, 4/E<br />
Via Lombardia, 7/A<br />
Zola Predosa Via Risorgimento, 109<br />
Provincia di Ferrara<br />
Cento Via Ferrarese, 3<br />
Provincia di Modena<br />
Carpi Via Baldassarre Peruzzi, 8/B<br />
Provincia di Reggio Emilia<br />
Reggio Emilia Via Emilia all’Angelo, 35<br />
LIGURIA<br />
Provincia di Genova<br />
Genova<br />
Via Fieschi, 11<br />
Piazza Leopardi, 6<br />
Via Merano, 1/A Nero<br />
Rapallo Via A. Diaz, 6<br />
VENETO<br />
Provincia di Verona<br />
Verona<br />
Corte Farina, 4<br />
Via Galvani, 7<br />
Caldiero Via Sandro Pertini, 12<br />
www.bancodibrescia.it<br />
LOMBARDIA<br />
Provincia di Brescia<br />
Brescia<br />
Piazza della Loggia, 5<br />
Corso Magenta, 73 - ang. Via Tosio<br />
Via Lecco, 1<br />
Via Trento, 7<br />
Via San Martino, 2 - ang. C.so Zanardelli<br />
Contrada del Carmine, 67<br />
Via Valle Camonica, 6/b<br />
Via Santa Maria Crocifissa di Rosa, 67<br />
Piazzale Spedali Civili, 1<br />
Corso Martiri della Libertà, 13<br />
Via Trieste, 8<br />
Via Vittorio Veneto, 73 - ang. Tofane<br />
Via San Giovanni Bosco, 15/c<br />
Via Bettole, 1 (Fraz. San Polo)<br />
Via Cremona, 145<br />
Via della Chiesa, 72<br />
Via Prima, 50 - Villaggio Badia<br />
Piazzale Nava, 7 (Fraz. Mompiano)<br />
Via Masaccio, 29 (Fraz. San Polo)<br />
Via Bissolati, 57<br />
Corso Martiri della Libertà, 45<br />
Via Milano, 21/b<br />
Via Indipendenza, 43<br />
Via Solferino, 30/a<br />
Via Trento, 25/27<br />
Viale Duca d’Aosta, 19<br />
Via Ambaraga,126<br />
Via Chiusure, 333/a<br />
Via Cefalonia, 76<br />
Via Orzinuovi, 9/11<br />
Via San Rocchino, 106<br />
Via Lamarmora, 230 (c/o A2A)<br />
Via Cipro, 76<br />
Acquafredda Via della Repubblica, 52<br />
Adro Via Roma, 1<br />
Bagnolo Mella Via XXVI Aprile, 69/71<br />
Bagolino Via San Giorgio, 66<br />
Barghe Via Boschi, 11/13<br />
Bedizzole<br />
Via Trento, 3/5<br />
Via Sonvigo, 13<br />
Borgosatollo Via IV Novembre, 140<br />
Botticino<br />
Via Valverde, 1 (Fraz. Botticino Sera)<br />
Via Don Milani, 3<br />
Bovegno Via Circonvallazione, 5<br />
Bovezzo Via Dante Alighieri, 8/D<br />
Breno Via Giuseppe Mazzini, 72<br />
Calcinato Via Guglielmo Marconi, 51<br />
Calvisano Via Dante Alighieri, 1<br />
Capriano del Colle<br />
Via Morari, 26<br />
Via Trento, 39 (Fraz. Fenili Belasi)<br />
Carpenedolo Piazza Martiri della Libertà, 1<br />
Castegnato Piazza Dante Alighieri, 1<br />
Castelcovati Via Alcide De Gasperi, 48<br />
Castel Mella Via Caduti del lavoro, 56/a<br />
Castenedolo Piazza Martiri della Libertà, 4<br />
Castrezzato Piazza Mons. Zammarchi, 1<br />
Cedegolo Via Nazionale, 105<br />
Cellatica Via Padre Cesare Bertulli, 8<br />
Chiari<br />
Piazza Giuseppe Zanardelli, 7<br />
Via Maffoni complesso S. Giacomo<br />
Collio Piazza Giuseppe Zanardelli, 32<br />
Comezzano - Cizzago<br />
Via Giuseppe Zanardelli, 31<br />
Concesio<br />
Via Europa, 203<br />
Via Europa, 8 (c/o centro comm. Valtrumpino)<br />
Darfo Boario Terme Via Roma, 2<br />
Dello Piazza Roma, 36<br />
Desenzano del Garda<br />
Via G. Marconi, 18<br />
Via G. Marconi, 97<br />
Via G. Di Vittorio, 17 (Fraz. Rivoltella)<br />
Edolo Via G. Marconi, 36/a<br />
Fiesse Via Antonio Gramsci, 25<br />
Flero Via XXV aprile, 110<br />
Gardone Riviera Via Roma, 8<br />
Gardone Val Trompia Via G. Matteotti, 212<br />
Gargnano Piazza Feltrinelli, 26<br />
Gavardo Via Suor Rivetta, 1<br />
Ghedi Piazza Roma, 1<br />
Gottolengo Piazza XX Settembre, 16<br />
Gussago<br />
Via IV Novembre, 112/a<br />
Via Richiedei, 61<br />
Idro Via Trento, 60<br />
Iseo<br />
Via Dante Alighieri, 10<br />
Via Risorgimento, 51/c (Fraz. Clusane)<br />
Isorella Via A. Zanaboni, 2<br />
Leno<br />
Via Dossi, 2<br />
Via Giuseppe Garibaldi, 2<br />
Limone del Garda Via Don Comboni, 24<br />
Lograto Piazza Roma, 11<br />
Lonato Via Guglielmo Marconi<br />
Lumezzane<br />
Via Alcide De Gasperi, 91 (Fraz. Pieve)<br />
Via Virgilio Montini, 251/ c<br />
(Fraz. S. Sebastiano)<br />
Via M. D’Azeglio, 4 (Fraz. S. Sebastiano)<br />
Via N. Bixio, 2 (Fraz. Pieve)<br />
Mairano Piazza Europa, 1<br />
Manerba del Garda Via Vittorio Gassman, 17/19<br />
Manerbio<br />
Via XX Settembre, 21<br />
Via Cremona (c/o c. comm. Le Arcate)<br />
Marone Via Roma, 59<br />
Milzano Piazza Roma, 13<br />
Moniga del Garda Piazza San Martino<br />
Monte Isola Via Peschiera Maraglio, 156<br />
Monticelli Brusati Via IV Novembre, 5/a<br />
Montichiari<br />
Via Trieste, 71<br />
Via Felice Cavallotti, 25<br />
Nave Piazza Santa Maria Ausiliatrice, 19<br />
Nuvolento Via Trento, 17<br />
Nuvolera Via Italia, 3/a<br />
Odolo Via Praes, 13/bis<br />
Offlaga Via Giuseppe Mazzini, 2<br />
Orzinuovi Piazza Vittorio Emanuele II, 18<br />
Ospitaletto<br />
Via Padana Superiore, 56<br />
Via Rizzi, 8<br />
Paderno Franciacorta Via Roma, 32<br />
Palazzolo sull’Oglio<br />
Via XX Settembre, 22<br />
Via Brescia, 1<br />
Passirano Via Libertà, 36<br />
Pavone del Mella Piazza Umberto I, 1<br />
Pisogne Piazza Umberto I, 11<br />
Poncarale Via Fiume, 8/A<br />
Ponte di Legno Corso Milano, 34<br />
Pontevico Piazza Giuseppe Mazzini, 15<br />
Pralboino Via Martiri Libertà, 52<br />
Prevalle Piazza del Comune, 7<br />
Quinzano d’Oglio Via C. Cavour, 29/31<br />
Remedello Via Roma, 60<br />
Rezzato<br />
Via IV Novembre, 98<br />
Via Zanardelli, 5a/b (Fraz. Virle Treponti)<br />
Rodengo Saiano Via Ponte Cigoli, 12<br />
Roè Volciano Via San Pietro, 119<br />
Roncadelle<br />
Via Martiri della Libertà, 119/a<br />
Via Guglielmo Marconi<br />
(c/o c. comm. Auchan)<br />
Rovato Corso Bonomelli, 52/54<br />
Sabbio Chiese Via XX Settembre, 83<br />
Sale Marasino Via Roma, 23/ Bis<br />
Salò<br />
Via Pietro da Salò - Loc. Rive<br />
Piazza Vittoria, 13<br />
Piazza Vittorio Emanuele II, 20<br />
San Felice del Benaco Viale Italia, 9<br />
San Gervasio Bresciano<br />
Piazza Antica Piazzola, 5<br />
San Paolo Piazza Aldo Moro, 9<br />
Sarezzo<br />
Via Roma, 8<br />
Via G. Carducci, 2 (Fraz. Ponte Zanano)<br />
Seniga Via San Rocco, 15<br />
Sirmione<br />
Via Colombare - ang. Via G. Garibaldi<br />
Piazza Castello, 58<br />
Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group<br />
823
Sulzano Via Cesare Battisti, 85<br />
Tavernole sul Mella Via IV Novembre, 40/42<br />
Tignale Piazzale Francesco d'Assisi<br />
Torbole Casaglia Piazza Caduti, 8<br />
Toscolano Maderno<br />
Via Montana, 1 (Fraz. Maderno)<br />
Via Statale Toscolano, 114/a (Fraz. Toscolano)<br />
Travagliato Piazza Libertà<br />
Verolanuova Piazza Libertà, 1<br />
Vestone Via Perlasca, 5<br />
Villa Carcina Via G. Marconi, 39/C<br />
Visano Via Gugliemo Marconi, 11<br />
Vobarno Via Migliorini - ang. Via San Rocco<br />
Zone Via Monte Guglielmo, 44<br />
Provincia di Varese<br />
Varese<br />
Via Sanvito Silvestro, 60<br />
Via B. Luini, 3<br />
Via Veratti, 10<br />
Busto Arsizio<br />
Corso Europa - ang. P.zza Venzaghi<br />
Gallarate<br />
Via Raffaello Sanzio, 2<br />
Via Torino, 28<br />
Gemonio Via Giuseppe Verdi, 24<br />
Saronno Via Giuseppe Garibaldi, 5<br />
Sumirago Via Brioschi, 2<br />
Tradate Via Antonio Cantore, 1<br />
Uboldo Via Italia, 2<br />
Venegono Superiore Piazza Monte Grappa, 8<br />
Provincia di Mantova<br />
Mantova<br />
Via A. Calvi, 5<br />
V.le Risorgimento, 33 - ang. Valsesia<br />
Asola Viale della Vittoria, 17<br />
Castel Goffredo Via Europa, 27<br />
Castiglione delle Stiviere Via C. Cavour, 13<br />
Marmirolo Via Ferrari, 66/d<br />
Provincia di Milano<br />
Milano<br />
Piazza XXIV Maggio, 7<br />
Piazza XXV Aprile, 9<br />
Via Antonio Rosmini, 17<br />
Via Ponchielli, 1<br />
Via Giorgio Washington, 96<br />
Via Vincenzo Monti, 42<br />
Via Monte Rosa, 16<br />
Via Mac Mahon, 19<br />
Via Staro, 1 - ang. Via Ronchi<br />
Via Caradosso, 16<br />
Via Silvio Pellico, 10/12<br />
Via G.B. Morgagni, 10<br />
Piazza Sant’Agostino, 7<br />
Via Feltre, 30/32<br />
Via Giovanni da Procida, 8<br />
Piazza Borromeo, 1<br />
Viale Monza, 139<br />
Via Lomellina, 14<br />
Via Lecco, 22<br />
Corso Indipendenza, 5<br />
Viale Marche, 40<br />
Via Porpora, 65<br />
Largo Scalabrini, 1<br />
Via Gaetano Negri, 4<br />
Via Bertolazzi, 20 (Zona Lambrate)<br />
Via A. Muratori, 26<br />
Agrate Brianza Via Marco d’Agrate, 61<br />
Biassono Via Cesana e Villa, 104<br />
Bresso Via Vittorio Veneto, 92<br />
Cernusco sul Naviglio Via Monza, 15<br />
Cologno Monzese<br />
Via Felice Cavallotti, 28<br />
Viale Lombardia, 52<br />
Corsico Via G. Di Vittorio, 10<br />
Legnano C.so Magenta,127 - ang. Via Beccaria<br />
Melegnano Viale Predabissi, 12<br />
Melzo Via Antonio Gramsci, 23<br />
Monza<br />
Via F. Cavallotti, 136<br />
Via F. Cavallotti, 27<br />
Novate Milanese Via G. Di Vittorio, 22<br />
Paderno Dugnano<br />
Via Erba, 36/38<br />
Via Tripoli, 3<br />
Paullo Piazza E. Berlinguer, 14<br />
Pioltello Via Mantegna, 35<br />
Rho Viale Europa, 190<br />
Trezzano Rosa Piazza San Gottardo, 14<br />
Trezzo sull’Adda Via Bazzoni<br />
Vimercate Via Giuseppe Mazzini, 72<br />
Provincia di Lecco<br />
Lecco Piazza Alessandro Manzoni, 16<br />
Merate Via Alessandro Manzoni, 56<br />
Provincia di Cremona<br />
Cremona<br />
Viale Po, 33/35<br />
Piazza Risorgimento, 9<br />
Via Mantova, 41<br />
Casalmaggiore Via Porzio (ang.Via Nino Bixio)<br />
Provincia di Como<br />
Como Via Gallio - ang. Via Bossi<br />
Cantù Largo Adua, 11<br />
Lomazzo Via Monte Generoso, 11<br />
Mariano Comense Viale Lombardia, 54-54/a<br />
Olgiate Comasco Via Roma, 75<br />
Provincia di Bergamo<br />
Bergamo<br />
Via Palma il Vecchio, 113<br />
Via Tremana, 13<br />
Via Camozzi, 101<br />
Via Don Luigi Palazzolo, 89<br />
Via Borgo Palazzo, 93<br />
Albano Sant’Alessandro Via Tonale, 29<br />
Alzano Lombardo Via Roma, 31<br />
Brembate Sopra Via B. Locatelli ang. Via Sorte<br />
Cologno al Serio Via San Martino, 2<br />
Grumello del Monte Via Roma, 63<br />
Medolago Via Europa, 19/b<br />
Seriate Via Paderno, 25<br />
Trescore Balneario Via Lorenzo Lotto, 6/a<br />
Treviolo Piazza Mons. Benedetti, 10<br />
VENETO<br />
Provincia di Verona<br />
Verona<br />
Largo Caldera, 13<br />
Via XXIV Maggio, 16<br />
Via Albere, 18<br />
Via Murari Brà, 12/b<br />
Via Emilio Salgari, 9<br />
Via Campagnol di Tombetta, 30<br />
Bussolengo Via Verona, 43<br />
Caldiero Via Strà, 114-114/a<br />
Castel d’Azzano Via Mascagni, 51<br />
Grezzana Viale Europa, 13<br />
Isola della Scala Via Spaziani, 19<br />
Monteforte d’Alpone Viale Europa, 30<br />
Negrar Via Strada Nuova, 17 (Fraz. S. Maria)<br />
Peschiera del Garda Via Venezia, 4<br />
San Bonifacio Via Camporosolo,16<br />
San Giovanni Lupatoto Via Garofoli, 1 -<br />
ang. Via Cà dei Sordi<br />
Sant’Ambrogio Valpolicella<br />
Via Giacomo Matteotti, 2<br />
Sona Via XXVI Aprile, 19 (Fraz. Lugagnano)<br />
Villafranca di Verona Via della Pace, 58<br />
Provincia di Vicenza<br />
Vicenza<br />
Viale San Lazzaro, 179<br />
Via IV Novembre, 60<br />
Bassano del Grappa Viale San Pio X 85<br />
Montecchio Maggiore Via Madonnetta<br />
Schio Via Battaglion Val Leogra, 6<br />
Provincia di Venezia<br />
Venezia San Polo, 2033<br />
Mestre Piazza XXVII Ottobre, 29<br />
Mira Via Nazionale, 193<br />
Provincia di Treviso<br />
Treviso Piazza Vittoria, 14<br />
Castelfranco Veneto Via Forche, 2<br />
Conegliano Via XI Febbraio, 1<br />
Montebelluna Via Dante Alighieri<br />
Oderzo Via degli Alpini, 30/32<br />
Quinto Di Treviso Via Contea, 33<br />
Resana Via Martiri della Libertà, 40/1<br />
Provincia di Padova<br />
Padova Via N. Tommaseo<br />
ang. via Codalunga<br />
Camposampiero Piazza Castello, 43<br />
Ponte San Nicolò Via Padre M. Kolbe, 1/A<br />
Rubano Via C. Varotari, 1 (Fraz. Sarmeola)<br />
TRENTINO ALTO ADIGE<br />
Provincia di Trento<br />
Pieve di Bono Via Roma, 28<br />
Storo Via Campini, 3/a (Fraz. Lodrone)<br />
PIEMONTE<br />
Provincia di Torino<br />
Torino C.so Inghilterra, 59/G<br />
ang. C.so Francia<br />
LIGURIA<br />
Provincia di Genova<br />
Genova Via alla Porta degli Archi, 2/4 r<br />
LAZIO<br />
Provincia di Viterbo<br />
Viterbo<br />
Corso Italia, 36<br />
Via Saragat - ang. Via Polidori<br />
Via Monte San Valentino<br />
Via Carlo Cattaneo, 46/F<br />
Via San Lorenzo, 56/58<br />
Via Venezia Giulia, 20/22<br />
Acquapendente Via del Rivo, 34<br />
Bassano in Teverina Via Cesare Battisti, 116<br />
Bolsena Via Antonio Gramsci, 28<br />
Bomarzo Piazza B. Buozzi, 5<br />
Canepina Via Giuseppe Mazzini, 61<br />
Capodimonte Via Guglielmo Marconi, 84<br />
Civita Castellana Via della Repubblica<br />
Corchiano Via Roma, 45<br />
Fabrica di Roma Viale degli Eroi<br />
Gradoli Piazza Vittorio Emanuele II, 10<br />
Marta Via Laertina, 35/39<br />
Montalto di Castro<br />
Via Aurelia Tarquinia, 5/7<br />
P.za delle mimose, 13 (Fraz. Pescia Romana)<br />
Montefiascone Piazzale Roma<br />
Monterosi Via Roma, 36<br />
Orte Via Le Piane<br />
Piansano Via Santa Lucia, 54<br />
Ronciglione Corso Umberto I, 78<br />
Soriano nel Cimino Piazza XX Settembre, 1/2<br />
Tarquinia Piazzale Europa, 4<br />
Tuscania Via Tarquinia<br />
824 Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group
Vasanello Piazza della Repubblica, 55/56<br />
Vetralla<br />
Via Roma, 21/23<br />
Via Cassia, 261 (Fraz. Cura)<br />
Vignanello Via Vittorio Olivieri, 1/a<br />
Vitorchiano Via Borgo Cavour, 10<br />
Provincia di Roma<br />
Roma<br />
Via Ferdinando di Savoia, 8<br />
Via Simone Martini, 5<br />
Piazza Eschilo, 67<br />
Via Bevagna, 58/60<br />
Largo Colli Albani, 28<br />
Via Vittorio Veneto, 108/B - Via Emilia<br />
Via Fabio Massimo, 15/17<br />
Via Crescenzio Conte di Sabina, 23<br />
Via Portuense, 718<br />
Via Fucini, 56<br />
Via Boccea, 211/221<br />
Via Camillo Sabatini, 165<br />
Via Val Pellice, 22<br />
Via Ugo Ojetti, 398<br />
Via Aurelia, 701/709<br />
Via A. Pollio, 50 (c/o c.comm. Casalbertone)<br />
Viale Guglielmo Marconi, 3/5<br />
Piazza San Silvestro, 6<br />
Piazza dei Tribuni, 58<br />
Via Appio Claudio, 336<br />
Provincia di Latina<br />
Latina<br />
Via Isonzo, 3<br />
Via della Stazione, 187<br />
FRIULI VENEZIA GIULIA<br />
Provincia di Udine<br />
Udine Via F. di Toppo, 87<br />
Ampezzo Piazzale ai Caduti, 3<br />
Arta Terme Via Roma, 2/c<br />
Magnano in Riviera Piazza F. Urli, 40<br />
Majano Piazza Italia, 26<br />
Paularo Piazza Nascimbeni, 5<br />
Prato Carnico Via Pieria, 91/d<br />
Sutrio Piazza XXII Luglio 1944, 13<br />
Tolmezzo Piazza XX Settembre, 2<br />
Provincia di Pordenone<br />
Pordenone Via Santa Caterina, 4<br />
Fiume Veneto Via Piave, 1 (Fraz . Bannia)<br />
Prata di Pordenone Via Cesare Battisti, 1<br />
EMILIA ROMAGNA<br />
Provincia di Parma<br />
Parma<br />
Via Emilia est, 17<br />
Via Repubblica, 32<br />
LUSSEMBURGO<br />
Boulevard du Prince Henri, 47<br />
www.bpci.it<br />
LOMBARDIA<br />
Provincia di Milano<br />
Milano<br />
Via della Moscova, 33<br />
Via Astesani, 16<br />
Via Salasco, 31<br />
Via Bocchetto, 13<br />
Via Borgogna, 2/4<br />
Via Buonarroti, 22<br />
Via Boccaccio, 2<br />
Via Canonica, 54<br />
Viale Coni Zugna, 71<br />
Corso Lodi, 111<br />
Piazzale de Agostini, 8<br />
Via Carlo Dolci, 1<br />
Piazza Firenze, 14<br />
Largo Gelsomini, 12<br />
Via Gentilino, 4<br />
Via G.B. Grassi, 89<br />
Via Gian Galeazzo - ang. Via Aurispa<br />
Corso Indipendenza, 14<br />
Via La Spezia, 1<br />
Viale Lombardia, 14/16<br />
Corso Magenta, 87 - Porta Vercellina<br />
Viale Marche, 56<br />
Piazzale Nigra, 1<br />
Via Olona, 11<br />
Via Padova, 21<br />
Via Padova, 97<br />
Via Pergolesi, 25<br />
Viale Piave, 15<br />
Piazzale Piola, 8<br />
Corso di Porta Romana, 63<br />
Corso di Porta Ticinese, 1<br />
Via Rosellini, 2<br />
Via Sanzio, 22<br />
Via Eugenio Pellini, 1 - ang. Via Cagliero<br />
Via Secchi, 2 - ang. P.za S. Francesca Romana<br />
Via Vitruvio, 38 - Via Settembrini<br />
Via Solari, 19<br />
Via Solari, 3<br />
Via Spartaco, 12<br />
Viale Corsica, 55<br />
Via Pindemonte, 2<br />
Viale Romagna, 14<br />
Via Tucidide, 56 (c/o Liquigas Spa)<br />
Largo Zandonai, 3<br />
Arcore Via Casati, 45<br />
Assago Milanofiori<br />
Palazzo Wtc Viale Milanofiori<br />
Bollate Via Giacomo Matteotti, 16<br />
Bresso Via Roma, 16<br />
Brugherio Via de Gasperi, 58/62/64<br />
Canegrate Via Manzoni, 48/A<br />
Cassina de' Pecchi Via Matteotti, 2/4<br />
Cesano Maderno Via Conciliazione, 29<br />
(Fraz. Binzago)<br />
Cinisello Balsamo Via Libertà, 68 - P.za Turati<br />
Cologno Monzese<br />
Via Indipendenza, 32 - ang. P.zza Castello<br />
Corbetta Corso Garibaldi, 14<br />
Cornaredo Piazza Libertà, 62<br />
Cornate d’Adda<br />
Via Circonvallazione, 10/12/14<br />
Via Silvio Pellico, 10 (Fraz. Colnago)<br />
Corsico<br />
Via Cavour, 45<br />
Viale Liberazione, 26/28<br />
Garbagnate Milanese Via Milano, 110/112<br />
Giussano Via IV Novembre, 80 (Fraz. Brugazzo)<br />
Gorgonzola P.zza Cagnola Vicolo Corridoni<br />
Lainate Via Garzoli, 17<br />
Legnano<br />
Corso Sempione, 221<br />
Via Novara, 8<br />
Limbiate Via dei Mille, 32<br />
Lissone<br />
Via Cappuccina, 22<br />
Via San Carlo, 4<br />
Melzo Piazza Repubblica, 10<br />
Monza<br />
Via Manzoni, 22/30<br />
Via Carlo Rota, 50<br />
Viale G.B. Stucchi, 110<br />
(c/o Roche Boehringer Spa)<br />
Opera Via Diaz, 2<br />
Paderno Dugnano Via Rotondi, 13/A<br />
Parabiago Via S. Maria, 22<br />
Peschiera Borromeo Viale Liberazione, 41<br />
Rho<br />
Corso Europa, 209<br />
Via Meda, 47<br />
Rozzano<br />
Viale Lombardia, 17<br />
Piazza Berlinguer, 6 (Fraz. Ponte Sesto)<br />
S. Giuliano Milanese<br />
Via Fratelli Cervi, 31<br />
Via Risorgimento, 3<br />
Via S. Pellico, 9 (Fraz. Sesto Ulteriano)<br />
Segrate Piazza della Chiesa, 4<br />
Senago Piazza Matteotti, 10/A<br />
Seregno<br />
Via Medici da Seregno, 29/31<br />
Corso Matteotti, 64<br />
Sesto San Giovanni Viale Casiraghi, 40<br />
Settimo Milanese Piazza della Resistenza, 8<br />
Trezzano sul Naviglio<br />
Viale C. Colombo, 1<br />
Via Leonardo da Vinci, 1 (c/o H3G Spa)<br />
Vedano al Lambro Largo della Repubblica, 7<br />
Provincia di Bergamo<br />
Bergamo Viale Vittorio Emanuele II, 2<br />
Provincia di Brescia<br />
Brescia Via Vittorio Emanuele II, 60<br />
Provincia di Como<br />
Como<br />
Via Cattaneo, 3<br />
Via Aldo Moro, 46/48<br />
Casnate S.S. dei Giovi, 5<br />
Cermenate Via Matteotti, 29/31<br />
Erba Via Mazzini, 12<br />
Lurate Caccivio Via Varesina, 88<br />
Olgiate Comasco Via Roma, 39<br />
Provincia di Cremona<br />
Cremona Via Giordano, 9/21- ang. Via del Sale<br />
Provincia di Lecco<br />
Lecco Via Amendola, 6<br />
Bulciago Via Don Canali, 33/35<br />
Provincia di Lodi<br />
Lodi Via Incoronata, 12<br />
Codogno Via Vittorio Emanuele II, 35<br />
Lodi Vecchio Piazza Vittorio Emanuele, 48<br />
S. Angelo Lodigiano Piazza Libertà, 10<br />
Provincia di Mantova<br />
Mantova Via Bertani, 22/24<br />
Provincia di Pavia<br />
Pavia<br />
Via Montebello della Battaglia, 2<br />
Piazza Duomo, 13/14<br />
Broni Piazza Vittorio Veneto, 52<br />
Casteggio Piazza Cavour, 27<br />
Mortara Piazza Martiri della Libertà<br />
Rosasco Via Roma, 4<br />
Torrevecchia Pia Via Molino, 9<br />
Vigevano<br />
Via Dante, 39<br />
Via Madonna degli Angeli, 1<br />
Corso Genova, 95<br />
Via de Amicis, 5<br />
Provincia di Varese<br />
Varese<br />
Piazza Battistero, 2<br />
Viale Borri, 106<br />
Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group<br />
825
Via Griffi, 6<br />
Via S. Sanvito, 55<br />
Angera Via M. Greppi, 33<br />
Besozzo Via XXV Aprile, 24<br />
Biandronno Piazza Cavour, snc<br />
Bisuschio Via Mazzini, 28<br />
Busto Arsizio<br />
Viale Cadorna, 4 - Via Cattaneo, 9<br />
Via Foscolo, 10<br />
Cantello Via Turconi, 1<br />
Cardano al Campo Via A. Gramsci, 89<br />
Cassano Magnago Via Aldo Moro, 6<br />
Castellanza<br />
Piazza Soldini (c/o Libero Istituto<br />
Universitario Carlo Cattaneo)<br />
Castiglione Olona Via Cesare Battisti, 58<br />
Castronno Via Roma, 51<br />
Cavaria con Premezzo<br />
Via Scipione Ronchetti, 1318<br />
Cittiglio Via Valcuvia, 19<br />
Comerio Via al Lago, 2<br />
Cunardo Via Luinese, 1/A<br />
Cuveglio Via Battaglia di S. Martino, 50<br />
Gallarate<br />
Piazzale Europa, 2<br />
Via Verdi, 1<br />
Gavirate Via IV Novembre, 21<br />
Germignaga Piazza XX Settembre, 51<br />
Laveno Mombello Via Labiena, 81<br />
Laveno Ponte Tresa Piazza A. Gramsci, 8<br />
(Fraz. Ponte Tresa)<br />
Leggiuno Via Bernardoni, 9<br />
Lonate Pozzolo Via Cavour, 1<br />
Luino<br />
Via Piero Chiara, 7<br />
Via Forlanini, 6<br />
Maccagno Viale Garibaldi, 13<br />
Marchirolo Strada Statale 233, 27<br />
Monvalle Piazza Marconi, 1<br />
Porto Ceresio Via Roma, 2<br />
Porto Valtravaglia Piazza Imbarcadero, 17<br />
Saronno<br />
Piazza Borella, 4<br />
Via San Giuseppe, 29<br />
Sesto Calende Piazza Cesare Abba, 1<br />
Tradate Corso Bernacchi, 95<br />
Travedona Monate Via Roma, 1<br />
EMILIA ROMAGNA<br />
Provincia di Bologna<br />
Bologna<br />
Viale della Repubblica, 25/31<br />
Via Murri, 77<br />
Piazza Malpighi, 16<br />
Imola Piazza Caduti, 5/6<br />
San Giovanni in Persiceto<br />
Corso Italia, 137/139<br />
San Lazzaro di Savena Via Emilia, 208/210<br />
Provincia di Modena<br />
Modena<br />
Viale Trento e Trieste - ang. Via Emilia Est<br />
Carpi Via Peruzzi, 6 - ang. Via Manicardi<br />
Formigine Via Grazia Deledda, 26<br />
Sassuolo Viale Crispi, 24<br />
Provincia di Parma<br />
Parma<br />
Via San Leonardo, 4<br />
Via della Repubblica, 6<br />
Langhirano Via Roma, 25 - Via Ferrari, 17<br />
Provincia di Piacenza<br />
Piacenza<br />
Via Verdi, 48<br />
Piazzale Velleia, 1<br />
Provincia di Reggio Emilia<br />
Reggio Emilia<br />
V.le Monte Grappa, 4/1 - ang. V.le dei Mille<br />
Correggio Via Asioli, 7/A<br />
Rubiera Viale della Resistenza, 7/A<br />
PIEMONTE<br />
Provincia di Alessandria<br />
Casale Monferrato Piazza San Francesco, 10<br />
Valenza Via Dante, 68<br />
Provincia di Asti<br />
Asti Piazza 1° Maggio, 8 - ang. Via Rossi<br />
Provincia di Biella<br />
Biella Via XX Settembre, 10<br />
Cossato Via Lamarmora, 9<br />
Provincia di Novara<br />
Novara Corso della Vittoria, 1<br />
Arona Corso Liberazione, 39<br />
Borgomanero P.za Martiri della Libertà, 21/23/25<br />
Provincia di Torino<br />
Torino Via Buozzi, 10<br />
Provincia di Verbania<br />
Verbania Piazza Matteotti, 18 (Fraz. Intra)<br />
Cannobio Via Umberto I, 2<br />
Ghiffa Corso Belvedere, 153<br />
Provincia di Vercelli<br />
Borgosesia Viale Duca d’Aosta, 21<br />
LAZIO<br />
Provincia di Roma<br />
Roma<br />
Corso Vittorio Emanuele II, 25/27<br />
Via Baldovinetti, 92/94<br />
Via Boccea 51, a/b/c<br />
Viale dei Colli Portuensi, 298/302<br />
Via F.S. Nitti, 73/75/77<br />
Via Norcia, 1/3<br />
Via Guidubaldo del Monte, 13/15<br />
Viale delle Provincie, 34/46<br />
Via Nizza, 71<br />
Viale Trastevere, 22<br />
Via Sestio Calvino, 57<br />
Via Tiburtina, 544/546 - ang. Via Galla Placidia<br />
Largo Trionfale, 11/12/13/14<br />
Via Cerveteri, 30<br />
Piazza Vescovio, 3 - 3/a - 3/b<br />
- ang. Via Poggio Moiano, 1<br />
Via dei Castani,133<br />
Via delle Azzorre, 288 (Fraz. Ostia)<br />
Via Nomentana, 669/675<br />
Via XX Settembre, 45 - ang. Servio Tullio<br />
VENETO<br />
Provincia di Padova<br />
Noventa Padovana<br />
Via Giovanni XXIII, 2 - ang. Via Risorgimento<br />
Provincia di Verona<br />
Verona<br />
Piazza Simoni, 14<br />
Via Caserma Ospital Vecchio, 4/c<br />
TOSCANA<br />
Provincia di Firenze<br />
Firenze Corso dei Tintori, 10/12/14/16R<br />
www.brebanca.it<br />
VALLE D'AOSTA<br />
Aosta Via Xavier de Maistre, 8<br />
PIEMONTE<br />
Provincia di Alessandria<br />
Alessandria<br />
Via Dante - ang. Via C. Lamarmora<br />
P.zza G. Marconi - angolo Via Merula<br />
Arquata Scrivia Via Libarna, 56<br />
Borghetto Borbera Via San Michele, 2<br />
Brignano - Frascata Via Roma, 44<br />
Cabella Ligure Piazza della Vittoria, 7<br />
Casale Monferrato Via Aurelio Saffi, 73<br />
Casalnoceto Piazza Martiri della Libertà, 10<br />
Castelnuovo Scrivia Via Solferino, 11<br />
Garbagna Via Roma, 21<br />
Isola Sant’Antonio<br />
Piazza del Peso - ang. Via C. Cavour<br />
Monleale Corso Roma, 41/43<br />
Novi Ligure Corso Marenco, 141<br />
Pontecurone Piazza Giacomo Matteotti, 5<br />
Pozzolo Formigaro Via Roma, 31<br />
Rocchetta Ligure Piazza Regina Margherita<br />
Sale Piazza Giuseppe Garibaldi, 8<br />
Sarezzano Piazza L. Sarzano, 4<br />
Silvano d’Orba Via Cesare Battisti, 32<br />
Stazzano Via Fossati, 2/a<br />
Tortona<br />
Piazza Duomo, 13<br />
Corso Don Orione, 46<br />
Via Emilia, 422<br />
Strada Prov. per Pozzolo, 22<br />
(Fraz. Rivalta Scrivia)<br />
Corso della Repubblica, 2/d<br />
Via Sacro Cuore (centro comm. Oasi)<br />
Valenza Via Lega Lombarda<br />
- ang. Via Cavallotti<br />
Vignole Borbera Via Alessandro Manzoni, 8<br />
Villalvernia Via Carbone, 69<br />
Villaromagnano Via della Chiesa<br />
Provincia di Asti<br />
Asti C.so Vittorio Alfieri, 137<br />
Nizza Monferrato Piazza G. Garibaldi, 70<br />
Provincia di Cuneo<br />
Cuneo<br />
Piazza Europa, 1<br />
Via Luigi Gallo, 1<br />
Via Roma, 13/b<br />
Via della Battaglia, 15<br />
(Fraz. Madonna dell’Olmo)<br />
Corso Nizza, 57/a<br />
Corso Antonio Gramsci, 1<br />
Via Savona, 8 - ang. Via Bisalta<br />
Via A. Carle, 2 (Fraz. Confreria)<br />
P.zale Repubblica (Fraz. Castagnaretta)<br />
Via Michele Coppino, 16 (c/o Ospedale)<br />
Via Margarita, 8<br />
(c/o c. comm. Auchan Tetto Garetto)<br />
Alba<br />
Via Teobaldo Calissano, 9<br />
Viale Giovanni Vico, 5<br />
Corso Piave, 74<br />
Corso Langhe, 66/B - Borgo Moretta<br />
Corso Cavour, 14<br />
Via G. Garibaldi, 180 (Fraz. Gallo d'Alba)<br />
Corso Canale, 98/1 (Fraz. Mussotto)<br />
Bagnasco Via Roma, 3<br />
826 Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group
Bagnolo Piemonte<br />
Via Cavalieri di Vittorio Veneto, 12<br />
Barbaresco Via Torino, 16<br />
Barge Viale Giuseppe Mazzini, 1<br />
Barolo Via Roma, 53<br />
Bastia Mondovì Piazza IV Novembre, 3<br />
Beinette Via Vittorio Veneto, 4<br />
Bernezzo Via A. Moro, 2 (Fraz. S.Rocco)<br />
Borgo San Dalmazzo<br />
Piazza Liberazione, 8/10<br />
Via Po, 41/43<br />
Bossolasco Corso Della Valle, 29<br />
Boves Piazza dell’Olmo, 2<br />
Bra<br />
Via Giuseppe Verdi, 10<br />
Via Don Orione, 85 (Fraz. Bandito)<br />
Brossasco Via Roma, 11/a<br />
Busca Piazza Savoia, 9<br />
Canale Via Roma, 72<br />
Caraglio Piazza Madre Teresa, 8<br />
Carrù P.za V. Veneto, 2 - ang. Via Benevagienna<br />
Casteldelfino Via Circonvallazione, 5<br />
Castelletto Stura Via Guglielmo Marconi, 6<br />
Castellinaldo Via Roma, 56<br />
Castiglione Tinella Via Circonvallazione, 12<br />
Castino Via XX Settembre, 1<br />
Centallo Piazza Vittorio Emanuele II, 17<br />
Ceva Via Roma, 40<br />
Cherasco Via Vittorio Emanuele II, 34<br />
Chiusa di Pesio Via Roma, 5<br />
Corneliano d'Alba Piazza Cottolengo, 42<br />
Cortemilia Piazza Castello, 1<br />
Costigliole Saluzzo Via Vittorio Veneto, 94<br />
Cravanzana Via XX Settembre, 1<br />
Crissolo Via Umberto I, 39<br />
Demonte Via Martiri e Caduti della Libertà, 1<br />
Dogliani Via Divisione Cuneense, 1<br />
Dronero<br />
Piazza San Sebastiano, 7<br />
Viale della Stazione, 10<br />
Entracque Via della Resistenza, 5<br />
Farigliano Piazza San Giovanni, 7<br />
Fossano Via Roma, 3<br />
Frabosa Soprana Piazza Guglielmo Marconi, 1<br />
Frabosa Sottana<br />
Via Galassia, 61 (Fraz. Prato Nevoso)<br />
Via IV Novembre, 30<br />
Gaiola Via Barale, 16<br />
Garessio Corso Statuto, 15<br />
Genola Via Roma, 32<br />
Govone Piazza Vittorio Emanuele II, 9<br />
Lagnasco Via Roma, 30<br />
La Morra Via Umberto I, 28<br />
Lesegno Via Roma, 23<br />
Limone Piemonte Via Roma, 62<br />
Magliano Alfieri<br />
Via IV Novembre, 54/a (Fraz. S. Antonio)<br />
Magliano Alpi Via Langhe, 158<br />
Mango Piazza XX Settembre, 6<br />
Monastero Vasco Via Variante, 3<br />
Monchiero Via Borgonuovo, B/15-1<br />
Mondovì<br />
Piazza G. Mellano, 6<br />
Corso Europa, 23<br />
Piazza Maggiore, 8<br />
Piazzale Ellero, 20<br />
Monesiglio Via Roma, 4<br />
Monforte d'Alba Via Giuseppe Garibaldi, 4<br />
Montà Piazza Vittorio Veneto, 31<br />
Montanera Via G. Marconi, 4<br />
Monticello d'Alba<br />
Piazza Martiri della Libertà, 2 (Fraz. Borgo)<br />
Moretta Via Torino, 73/bis<br />
Morozzo Via Guglielmo Marconi, 78<br />
Murazzano Via L. Bruno, 6<br />
Murello Via Caduti Murellesi, 39<br />
Narzole Via Pace, 2<br />
Neive Piazza della Libertà, 2<br />
Neviglie Via Umberto I, 14<br />
Niella Belbo Piazza Mercato, 12/b<br />
Paesana Via Po, 41<br />
Pagno Via Roma, 1<br />
Peveragno Piazza P. Toselli, 1<br />
Piasco Piazza Martiri della Liberazione, 7<br />
Piobesi d'Alba Piazza San Pietro, 12<br />
Pradleves Via IV Novembre, 108<br />
Priocca Via Umberto I, 65<br />
Racconigi Piazza Roma, 8<br />
Revello Via Saluzzo, 80<br />
Rifreddo Piazza della Vittoria, 4<br />
Robilante Via Umberto I, 22<br />
Roccavione Piazza Biagioni, 27<br />
Rodello Piazza Vittorio Emanuele II, 2<br />
Rossana Via Mazzini, 1<br />
Saliceto Piazza C. Giusta, 1<br />
Saluzzo Corso Italia, 57<br />
Sampeyre Via Vittorio Emanuele II, 22<br />
San Damiano Macra Via Roma, 15<br />
San Michele Mondovì Via Nielli, 15/a<br />
Sanfront Corso Guglielmo Marconi, 14<br />
Santo Stefano Belbo Corso Piave, 82<br />
Savigliano Piazza Schiapparelli, 10<br />
Scarnafigi Piazza Vittorio Emanuele II, 14<br />
Sommariva del Bosco<br />
Via Donatori del Sangue, 11/b<br />
Tarantasca Via Carletto Michelis, 3<br />
Torre San Giorgio Via Maestra, 17<br />
Valdieri Corso Caduti in Guerra, 13<br />
Valgrana Via Caraglio, 9<br />
Verduno Piazza Castello, 3<br />
Vernante Piazza de l’Ala, 4<br />
Verzuolo Piazza Martiri della Libertà, 13<br />
Vicoforte Via di Gariboggio, 43<br />
Villafalletto Via Vittorio Veneto, 24<br />
Villanova Mondovì Via Roma, 33/a<br />
Vinadio Via Roma, 11<br />
Provincia di Novara<br />
Novara<br />
Largo Don Luigi Minzoni, 5<br />
Via Canobio, 10<br />
Gozzano Via XXV Aprile, 127/129<br />
Romentino Via dei Conti Caccia, 1<br />
Provincia di Vercelli<br />
Vercelli Piazza Cavour, 23<br />
Borgosesia Via Sesone, 36<br />
Provincia di Torino<br />
Torino<br />
Corso Dante, 57/b<br />
Corso Vittorio Emanuele II, 107<br />
Corso Vercelli, 81/b<br />
Corso Unione Sovietica, 503<br />
Via Gobetti, 1/a<br />
Piazza Gran Madre di Dio, 2<br />
Via Madama Cristina, 30 - ang. Lombroso<br />
Bibiana Via C. Cavour, 25<br />
Bricherasio Piazza Castelvecchio, 17<br />
Pinerolo Via Savoia - ang. Via Trieste<br />
Rivoli Via Rombò, 25/e<br />
LOMBARDIA<br />
Provincia di Bergamo<br />
Bergamo<br />
Via Brigata Lupi, 2<br />
Largo Rezzara - Piazza Pontida, 3<br />
Provincia di Brescia<br />
Brescia Piazza della Loggia, 3<br />
Provincia di Como<br />
Como Viale Giulio Cesare, 26/28<br />
Provincia di Cremona<br />
Cremona<br />
Piazza Stradivari, 19<br />
Via Mantova, 137<br />
Castelleone Via Roma, 69<br />
Crema Viale Repubblica, 79<br />
Soncino Largo Manzella<br />
Provincia di Lecco<br />
Lecco Via Resinelli, 2<br />
Provincia di Lodi<br />
Lodi Via Fissiraga, 18/20<br />
Codogno Via Roma, 11<br />
Provincia di Mantova<br />
Mantova<br />
Viale Divisione Acqui, 14<br />
Piazza Guglielmo Marconi, 7<br />
Provincia di Milano<br />
Milano<br />
Via Bignami, 1 (c/o C.T.O.)<br />
Via Macedonio Melloni, 52 (c/o I.O.P.M.)<br />
Via della Commenda, 12 (c/o Istituti Clinici)<br />
Corso Porta Nuova, 23<br />
(c/o Ospedale Fatebenefratelli)<br />
Via Francesco Sforza, 35 (c/o Osp. Maggiore)<br />
Piazza Ospedale Maggiore, 3 (c/o Niguarda)<br />
Via Pio II, 3 (c/o Ospedale San Carlo)<br />
Via Castelvetro, 32 (c/o Ospedale Buzzi)<br />
Via Trivulzio, 15 (c/o Pio Albergo)<br />
Corso Italia, 17<br />
Via Lomellina, 50<br />
Via Pisanello, 2<br />
Corso Lodi, 78<br />
Piazza Gasparri, 4<br />
Via Panizzi, 15<br />
Via dei Missaglia - angolo Via Boifava<br />
Viale Monza, 325<br />
Corso Cristoforo Colombo, 10<br />
Piazza Santa Francesca Romana, 3<br />
Via Meda, angolo Via Brunacci, 13<br />
Largo d’Ancona, 1<br />
Corso XXII Marzo, 22<br />
Via Fabio Filzi, 23<br />
Via Ampère, 15<br />
Piazzale Lagosta, 6<br />
Via Padova, 175<br />
Viale Certosa, 94<br />
Viale Certosa, 138<br />
Via Monte di Pietà, 7<br />
Via G.B. Grassi, 74 (c/o Ospedale Luigi Sacco)<br />
Abbiategrasso Piazza Camillo Golgi, 26<br />
Binasco Largo Bellini, 16<br />
Carugate Via Toscana, 10<br />
Cinisello Balsamo<br />
Viale Umbria, 4<br />
Via Massimo Gorki, 50 (c/o Ospedale Bassini)<br />
Melegnano Via Cesare Battisti, 37/a<br />
Monza Piazza Duomo, 5<br />
Pregnana Milanese Via Roma, 46<br />
Rozzano Via Torino, 85<br />
Trezzo sull’Adda Piazza Libertà, 1<br />
Vimodrone Strada Padana Superiore, 287<br />
Vittuone Via Villoresi, 67<br />
Provincia di Varese<br />
Varese<br />
Via Magenta, 3<br />
Viale Luigi Borri, 146<br />
Viale Milano, 20<br />
Induno Olona Via Porro, 28<br />
Laveno Mombello Via Labiena, 89<br />
Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group<br />
827
Provincia di Pavia<br />
Pavia<br />
Corso Strada Nuova, 61/c<br />
Viale Matteotti, 63<br />
(c/o Istituzioni Assistenziali Riunite)<br />
Via dei Mille, 7<br />
Viale Ludovico il Moro, 51/b<br />
Via Taramelli, 20<br />
Via Pavesi, 2<br />
Corso Alessandro Manzoni, 17<br />
Piazzale Gaffurio, 9<br />
Via San Pietro in Verzolo, 4<br />
Via Ferrata, 1 (c/o Università)<br />
Albuzzano Via Giuseppe Mazzini, 92/94<br />
Belgioioso Via Ugo Dozzio, 15<br />
Borgarello Via Principale, 3<br />
Brallo di Pregola Piazza del Municipio, 12<br />
Casei Gerola Piazza Meardi, 9<br />
Casorate Primo<br />
Via S. Agostino, 1 - ang. P.zza Contardi<br />
Cassolnovo Via Lavatelli, 16/20<br />
Casteggio Viale Giuseppe Maria Giulietti, 10<br />
Garlasco Corso C. Cavour, 55<br />
Giussago Via Roma, 38<br />
Godiasco<br />
Piazza Mercato, 19<br />
Viale delle Terme, 44 (Fraz. Salice Terme)<br />
Landriano Via Milano, 40<br />
Linarolo Via Felice Cavallotti, 5<br />
Magherno Via Roma, 255<br />
Marcignago Via Umberto I, 46<br />
Montebello della Battaglia<br />
Piazza Carlo Barbieri “Ciro”, 1<br />
Mortara Piazza Silvabella, 33<br />
Pinarolo Po Via Agostino Depretis, 84<br />
Portalbera Via Mazzini, 1 (c/o Comune)<br />
Robbio Piazza Libertà, 8<br />
San Martino Siccomario Via Roma, 23<br />
Sannazzaro de’ Burgondi Viale Libertà 3/5<br />
Siziano Via Roma, 22<br />
Stradella Via Trento, 85<br />
Travacò Siccomario Piazzale Europa, 1<br />
Valle Lomellina Piazza Corte Granda, 4<br />
Varzi Via Pietro Mazza, 52<br />
Vigevano<br />
Via Decembrio, 27<br />
Piazza Alessandro Volta, 7<br />
Vistarino Via Vivente, 27/a<br />
Voghera<br />
Via Giacomo Matteotti, 33<br />
Via Sant’Ambrogio, 17<br />
EMILIA ROMAGNA<br />
Provincia di Parma<br />
Parma Via Tanara, 20/c<br />
Colorno Via San Rocco, 34<br />
Fidenza Piazza G. Garibaldi, 41<br />
Provincia di Piacenza<br />
Piacenza<br />
Via Sopramuro, 15<br />
Via Manfredi, 7<br />
Via Cristoforo Colombo, 19<br />
Caorso Via Roma, 6/a<br />
Carpaneto Piacentino Via G. Rossi, 42<br />
Gragnano Trebbiense Via Roma, 52<br />
Ponte dell’Olio Via Vittorio Veneto, 75<br />
San Nicolò a Trebbia<br />
Via Emilia Est, 48 (Fraz. Rottofreno)<br />
FRANCIA<br />
Nizza Avenue de Suède, 5<br />
Mentone Avenue de Verdun, 21<br />
www.bpa.it<br />
MARCHE<br />
Provincia di Ancona<br />
Ancona<br />
Corso Stamira, 14<br />
Piazza Carlo e Nello Rosselli<br />
Viale C. Colombo, 56<br />
Via Brecce Bianche, 68/I<br />
Via della Loggia, 3 - ang. Via degli Aranci<br />
Via Trieste, 59/B<br />
Via Umani<br />
Agugliano Contrada Gavone, 2/B (c/o Socopad)<br />
Belvedere Ostrense Via Brutti, 7<br />
Castelfidardo Via C. Battisti, 5<br />
Chiaravalle Via della Repubblica, 83<br />
Cupramontana Piazza Cavour, 11<br />
Fabriano<br />
Piazza Miliani, 16<br />
Via Martiri della Libertà, 46<br />
Via Corsi, 3<br />
Falconara<br />
Via IV Novembre, 8<br />
Via Flaminia, 396 (Fraz. Palombina Vecchia)<br />
Jesi<br />
Corso Matteotti, 1<br />
Via San Giuseppe, 38<br />
Piazza Ricci, 4<br />
Piazza Vesalio, 5<br />
Via Gallodoro, 73<br />
Via Leone XIII (c/o New Holland Fiat Spa)<br />
Jesi Zipa Viale dell’Industria, 5<br />
Loreto Via Bramante<br />
Maiolati Spontini<br />
Via Risorgimento, 52 (Fraz. Moie)<br />
Montemarciano<br />
Piazza Magellano, 15 (Fraz. Marina)<br />
Monterado<br />
Via 8 Marzo, 7 (Fraz. Ponte Rio)<br />
Morro d'Alba Via Morganti, 56<br />
Numana Piazza del Santuario, 22<br />
Offagna Via dell’Arengo, 38<br />
Osimo<br />
Piazza del Comune, 4<br />
Via Marco Polo, 15<br />
Via Ticino, 1 (Fraz. Padiglione)<br />
Ostra Pianello Via Arceviese, 55<br />
Rosora Via Roma, 132 (Fraz. Angeli)<br />
Santa Maria Nuova<br />
Via Risorgimento, 68 (Fraz. Collina)<br />
Sassoferrato Piazza Bartolo, 17<br />
Senigallia<br />
Corso 2 Giugno, 76<br />
Via R. Sanzio, 288 (Fraz. Cesano)<br />
c/o centro commerciale “Il Maestrale”<br />
(Fraz. Cesano)<br />
Serra de' Conti Piazza Leopardi, 2<br />
Provincia di Ascoli Piceno<br />
Ascoli Piceno<br />
Viale Indipendenza, 42<br />
Via D. Angelini, 118<br />
Castel di Lama Via Salaria, 356<br />
Falerone<br />
Piazza della Concordia, 4<br />
Viale della Resistenza, 168 Y (Fraz. Piane)<br />
Fermo<br />
Contrada Campiglione, 20<br />
Via Dante Zeppilli, 56<br />
Grottammare Via Montegrappa, 12<br />
Massa Fermana Via Ada Natali, 5<br />
Montappone Piazza Roma, 3<br />
Montegranaro Via Fermana Nord<br />
Monte Urano Via Papa Giovanni XXIII, 37<br />
Petritoli Contrada S. Antonio, 217 (Fraz. Valmir)<br />
Porto S. Giorgio Via Tasso<br />
Porto Sant’Elpidio Via Mazzini, 115<br />
San Benedetto del Tronto<br />
Piazza Matteotti, 6<br />
Piazza Setti Carraro (Fraz. Porto d’Ascoli)<br />
Sant’Elpidio a Mare Viale Roma, 1<br />
Provincia di Macerata<br />
Macerata<br />
Viale Don Bosco<br />
Corso Cavour, 34<br />
Piazza Cesare Battisti, 8<br />
Via Bramante, 103 (Fraz. Piediripa)<br />
Appignano Via Borgo S. Croce, 7<br />
Camerino Piazza Caio Mario, 5<br />
Castelraimondo Piazza della Repubblica, s.n.c.<br />
Civitanova Marche<br />
Corso Umberto I, 16<br />
Via Silvio Pellico, 143 (Fraz. S. M. Apparente)<br />
Corridonia Piazzale della Vittoria, 1<br />
Loro Piceno Piazzale G. Leopardi, 8<br />
Matelica Viale Martiri della Libertà, 31<br />
Monte San Giusto Via Verdi, 11<br />
Monte San Martino Via Roma, 32<br />
Pollenza Via V. Cento, 6 (Casette Verdini)<br />
Porto Recanati Piazza del Borgo, s.n.c.<br />
Potenza Picena<br />
Piazza Douhet, 23 (Fraz. Porto)<br />
Via Marefoschi, 1<br />
Recanati Via Cesare Battisti, 20<br />
San Ginesio Piazza Gentili, 31<br />
San Severino Marche Viale Europa<br />
Sarnano Piazza della Libertà, 76<br />
Tolentino Piazza dell’Unità<br />
Treia Corso Garibaldi, 110 (Fraz. Passo Treia)<br />
Provincia di Pesaro - Urbino<br />
Pesaro<br />
Piazzale Garibaldi, 22<br />
Strada Statale Adriatica, 18<br />
Via Antonio Fratti, 23<br />
Via Strada delle Marche 58/60<br />
(c/o Confcommercio)<br />
Urbino<br />
Viale Comandino<br />
Borgo Mercantale, 24<br />
Acqualagna Via Flaminia, 79<br />
Carpegna Via R. Sanzio, 12<br />
Colbordolo Via Nazionale, 143<br />
(Fraz. Morciola)<br />
Fano<br />
Via C. Pisacane, 2<br />
Via dell’Abbazia, s.n.c.<br />
Fossombrone<br />
Piazza Dante, 24<br />
Via delle Mura, 11 (Fraz. Isola di Fano)<br />
Lunano Corso Roma, 79<br />
Macerata Feltria Via Antini, 22<br />
Montecopiolo<br />
Via Montefeltresca, 37 (Fraz. Villagrande)<br />
Montelabbate<br />
Via Provinciale, 169 (Fraz. Osteria Nuova)<br />
Novafeltria<br />
Piazza Vittorio Emanuele, 1<br />
Piazza Cappelli, 1 (Fraz. Secchiano)<br />
Pennabilli<br />
Via Marecchiese, 76/B (Fraz. Ponte Messa)<br />
Piobbico Via Roma, 10/12<br />
San Leo Via Montefeltro, 24<br />
828 Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group
Sant’Agata Feltria<br />
Via Vittorio Emanuele II, 1<br />
Sant’Angelo in Vado Via Rimembranze, 31<br />
Sassofeltrio Via Risorgimento, 9 (Fraz. Fratte)<br />
Urbania Via Roma, 24<br />
EMILIA ROMAGNA<br />
Provincia di Forlì - Cesena<br />
Forlì<br />
Via Lazzaretto, 11/19<br />
Viale Vittorio Veneto, 7D/7E<br />
Cesena Via Piave, 27<br />
Cesenatico Viale Roma, 55<br />
Forlimpopoli Viale Giacomo Matteotti, 37<br />
Provincia di Ravenna<br />
Ravenna Piazza Baracca, 22<br />
Cervia Via G. Di Vittorio, 39<br />
Provincia di Rimini<br />
Rimini<br />
Via Caduti di Marzabotto, 6<br />
Via Flaminia, 175<br />
Via Gambalunga, 73<br />
Via Luigi Poletti, 28<br />
Bellaria - Igea Marina Via Uso, 25/c<br />
Cattolica Via Fiume, 37<br />
Misano Adriatico Viale Repubblica, 67<br />
Riccione Viale Ceccarini, 207<br />
Santarcangelo di Romagna Via Braschi, 36<br />
CAMPANIA<br />
Provincia di Avellino<br />
Avellino<br />
Via Dante Alighieri, 20/24<br />
Montoro Inferiore Via Nazionale, 161/167<br />
Provincia di Benevento<br />
Benevento<br />
Via Delcogliano, 29<br />
Piazza Risorgimento, 11/12<br />
Buonalbergo Viale Resistenza, 3<br />
San Giorgio la Molara Via S. Ignazio, 7/9<br />
Telese Viale Minieri, 143<br />
Provincia di Caserta<br />
Caserta<br />
Via C. Battisti, 42<br />
Via Douhet, 2/A (c/o Scuola Aeron. Milit.)<br />
Alvignano Corso Umberto I, 287<br />
Aversa Via Salvo D’Acquisto<br />
Marcianise<br />
Strada Statale 87 Sannitica<br />
Strada Provinciale 22 (Oromare)<br />
Piedimonte Matese Via Cesare Battisti<br />
Pietramelara Piazza S. Rocco, 18<br />
Pietravairano<br />
Via Padre Cipriani Caruso, s.n.c.<br />
Pignataro Maggiore Via Trento<br />
Santa Maria Capua Vetere<br />
Via Pezzella Parco Valentino<br />
Succivo Via De Nicola - angolo Via Tinto<br />
Teano Viale Italia<br />
Vairano Patenora<br />
Via della Libertà, 10 (Fraz. Vairano Scalo)<br />
Via delle Rimembranze, 56<br />
Vitulazio Via Rimembranze, 37<br />
Provincia di Napoli<br />
Napoli<br />
Corso Amedeo di Savoia, 222<br />
Via Mergellina, 33/34<br />
Via dell’Epomeo, 427/431<br />
Via Schipa, 101/103<br />
Via Cesario Console, 3C<br />
Via Crispi, 2 - ang. Piazza Amedeo<br />
Piazza Vittoria, 7<br />
Galleria Vanvitelli, 42<br />
Piazza del Gesù Nuovo, 31<br />
Via Santa Brigida, 36<br />
Via Santa Brigida, 62/63<br />
Via Santo Strato, 20/D<br />
Piazza Garibaldi, 127<br />
Via Salvator Rosa, 254/B - 255<br />
Via Caravaggio, 52<br />
Via Giovanni Manna, 11<br />
Via Acton, 1 (c/o Marina Militare)<br />
Città della Scienza - Via Coroglio, 156<br />
Afragola Corso Garibaldi, 38<br />
Bacoli Baia Via Lucullo, 32<br />
Boscoreale Via Papa Giovanni XXIII, 16<br />
Cardito Piazza S. Croce, 71<br />
Casalnuovo di Napoli<br />
Via Arcora Provinciale, 60<br />
Casamicciola Terme Piazza Marina, 29<br />
Cercola Via Domenico Ricciardi, 284/286<br />
Forio d’Ischia Corso F. Regine, 24/25<br />
Grumo Nevano Via Cirillo, 78<br />
Ischia Porto Via A. de Luca, 113/115<br />
Melito Via Roma, 33/43<br />
Monte di Procida Corso Garibaldi, 20/22<br />
Nola<br />
Via San Massimo, 15<br />
Piazza Giordano Bruno, 26/27<br />
Pozzuoli<br />
Corso Vittorio Emanuele, 60<br />
Via Domiziana<br />
(c/o Accademia Aeronautica)<br />
Qualiano Via S. Maria a Cubito, 146<br />
Quarto Via Campana, 286<br />
San Giuseppe Vesuviano Via Astalonga, 1<br />
Sant’Antimo Via Cardinale Verde, 31<br />
Terzigno Via Diaz, 69<br />
Torre del Greco<br />
Corso Vittorio Emanuele, 77/79<br />
Volla Via Rossi, 94/100<br />
LAZIO<br />
Provincia di Roma<br />
Roma<br />
Via Nazionale, 256<br />
Viale Buozzi, 78<br />
Via Croce, 10<br />
Via Cipro, 4/A<br />
Via Gasperina, 248<br />
Via Milano, 32/F<br />
Piazza Mignanelli, 4<br />
Via L. di Breme, 80<br />
Via Prenestina Polense, 145 (Fraz. Castelverde)<br />
Via Enrico Ortolani, s.n.c.<br />
Albano Laziale Via Marconi, 7<br />
Fonte Nuova Via Nomentana, 68<br />
Guidonia Montecelio<br />
Piazza Colleverde (Fraz. Colleverde)<br />
Via Nazionale Tiburtina, 122 (Fraz. Villalba)<br />
S.S. Tiburtina Km. 18,300 (Fraz. Setteville)<br />
Via Roma, 26<br />
Piazza B. Buozzi, 10<br />
Lanuvio Piazza Carlo Fontana, 2<br />
Marcellina Via Regina Elena, 35/C<br />
Marino Piazzale degli Eroi, 4<br />
Palombara Sabina Via Ungheria, 7<br />
San Gregorio da Sassola Largo E. Tomei, 3<br />
San Polo dei Cavalieri Via Roma, 12<br />
Tivoli<br />
Piazza S. Croce, 15<br />
Via di Villa Adriana<br />
Provincia di Frosinone<br />
Frosinone Via Maria, 63<br />
UMBRIA<br />
Provincia di Perugia<br />
Perugia<br />
Via dei Filosofi, 36<br />
Via Settevalli, 133<br />
Via Deruta (Fraz. San Martino in Campo)<br />
Via P. Soriano, 3<br />
(Fraz. Sant’Andrea delle Fratte)<br />
Bastia Umbra<br />
Via Roma, 25 - angolo Via de Gasperi<br />
Città di Castello Via Buozzi, 22<br />
Collazzone Piazza Umberto I, 10<br />
Deruta Via Tiberina, 184/186<br />
Foligno Viale Arcamone<br />
Fossato di Vico<br />
Largo St. Ambroix (Fraz. Osteria del Gatto)<br />
Giano dell'Umbria<br />
Via Roma, 63 (Fraz. Bastardo)<br />
Magione<br />
Via della Palazzetta (località Bacanella)<br />
Marsciano Via dei Partigiani, 12<br />
Massa Martana Via Roma, 42<br />
Montecastello di Vibio<br />
Piazza Michelotta di Biordo, 10<br />
Todi<br />
Piazza del Popolo, 27<br />
Via Tiberina, 64<br />
Via Tiberina, 194 (Fraz. Pantalla)<br />
Provincia di Terni<br />
Terni Corso del Popolo, 13<br />
Acquasparta Via Cesare Battisti, 5/D<br />
Avigliano Umbro Corso Roma - ang. Via S. Maria<br />
ABRUZZO<br />
Provincia di Chieti<br />
Atessa Via Piazzano, 70 (Fraz. Piazzano)<br />
Francavilla al Mare Via della Rinascita, 2<br />
Guardiagrele Via Orientale, 17<br />
Lanciano Viale Rimembranze, 16<br />
Sant’Eusanio del Sangro Corso Margherita<br />
San Giovanni Teatino<br />
Via Aldo Moro, 8 (Fraz. Sambuceto)<br />
Vasto Via Giulio Cesare, 5<br />
Provincia di Pescara<br />
Pescara<br />
Via Michelangelo, 2<br />
Via Latina, 14<br />
Via Nazionale Adriatica Nord, 126<br />
Viale Marconi, 21<br />
Viale Marconi, 263<br />
Provincia di Teramo<br />
Teramo Piazza Garibaldi, 143<br />
Alba Adriatica Via Mazzini, 124<br />
Giulianova Via Orsini, 28 (Fraz. Spiaggia)<br />
Roseto degli Abruzzi Via Nazionale, 286<br />
MOLISE<br />
Provincia di Campobasso<br />
Campobasso Via Umberto I<br />
Bojano Corso Amatuzio, 86<br />
Larino Via Jovine, 12<br />
Termoli Via Abruzzi<br />
Provincia di Isernia<br />
Isernia Via Dante Alighieri, 25<br />
Venafro Via Campania, 69<br />
Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group<br />
829
www.carime.it<br />
CALABRIA<br />
Provincia di Catanzaro<br />
Catanzaro<br />
Piazza Indipendenza, 44<br />
Corso Mazzini, 177/179<br />
Via Nazario Sauro, 17 (Fraz. Lido)<br />
Via F. Massara, 2 (c/o Regione Calabria)<br />
Chiaravalle Centrale Piazza Dante, 8<br />
Girifalco Via Milano<br />
Guardavalle Via Giordano, 4<br />
Lamezia Terme<br />
Corso Nicotera, 135<br />
Via del Mare<br />
Nocera Terinese Via Santa Caterina, 126/130<br />
Sersale Via A. Greco<br />
Soverato Corso Umberto I, 167/169<br />
Soveria Mannelli Piazza dei Mille, 2<br />
Squillace Vico Generale Pepe<br />
Tiriolo Via Fratelli Bandiera<br />
Provincia di Cosenza<br />
Cosenza<br />
Via Caloprese<br />
Via XXIV Maggio, 45<br />
Corso Mazzini, 117<br />
Via F. Migliori (c/o Ospedale)<br />
Via degli Stadi, 57/D2<br />
Via dei Mille<br />
Corso Telesio, 1<br />
Acri Via Padula, 95<br />
Aiello Calabro Via Luigi de Seta, 66/68<br />
Altomonte Via Aldo Moro, 34<br />
Amantea Via Elisabetta Noto, 1/3<br />
Aprigliano Via Calvelli, 5<br />
Belvedere Marittimo - Marina Via G. Grossi, 71<br />
Bisignano Via Simone da Bisignano<br />
Cariati Via S. Giovanni, 6<br />
Carolei Via Rendano, 13<br />
Cassano allo Jonio Corso Garibaldi, 30<br />
Castrovillari Corso Garibaldi, 79/83<br />
Cetraro - Marina Via Lucibello, 10/14<br />
Corigliano Calabro - Scalo<br />
Via Nazionale, 101/103<br />
Corigliano Calabro Via Barnaba Abenante, 7<br />
Crosia Via Nazionale, 74/80 (Fraz. Mirto)<br />
Diamante Via Vittorio Emanuele, 77<br />
Francavilla Marittima Via Provinciale, 1/3<br />
Fuscaldo Via Maggiore Vaccari, 14<br />
Grimaldi Via IV Novembre, 29<br />
Lago Via P. Mazzotti, 10/12/14<br />
Longobucco Via C. Colombo, 107<br />
Lungro Via Skanderberg, 86<br />
Luzzi Viale delle Rimembranze, 39<br />
Montalto Uffugo<br />
Corso Garibaldi, 25<br />
Via Manzoni, 57 (Fraz. Taverna)<br />
Morano Calabro Via Porto Alegre, 10<br />
Mormanno Via San Biase, 1<br />
Paola Via del Cannone, 34<br />
Praia a Mare Via Telesio, 2<br />
Rende<br />
Piazza degli Eroi, 7<br />
Via A. Volta, 15 (Fraz. Quattromiglia)<br />
Viale Kennedy, 59/E (Fraz. Roges)<br />
Rocca Imperiale Marina Via Taranto, 15<br />
Roggiano Gravina Corso Umberto, 13<br />
Rogliano Via Guarasci, 31<br />
Rossano Via G. Rizzo, 14<br />
Rossano - Scalo Via Nazionale, 9/15<br />
San Demetrio Corone Via D. Alighieri, 10<br />
San Giovanni in Fiore Via Gramsci<br />
San Lucido Via Regina Elena, 64/72<br />
San Marco Argentano<br />
Via Duca degli Abruzzi, 56<br />
San Sosti Via Verdi, 24<br />
Saracena Via G. La Pira, 128/130<br />
Scalea Via M. Bianchi, 2<br />
Spezzano Albanese<br />
Piazza della Repubblica, 5/1<br />
Spezzano della Sila<br />
Via Roma<br />
Via del Turismo, 77 (Fraz. Camigliatello Silano)<br />
Terranova da Sibari Via Vico II Margherita<br />
Torano Castello Strada Provinciale Variante, 4<br />
Trebisacce Via Lutri, 146<br />
Provincia di Crotone<br />
Crotone<br />
Via Mario Nicoletta, 32<br />
Via Cutro<br />
Cirò Marina Via Mazzini, 17/19<br />
Cotronei Via Laghi Silani, 40<br />
Cutro Via Nazionale<br />
Petilia Policastro Via Arringa, 178<br />
Strongoli Corso Biagio Miraglia, 115<br />
Provincia di Reggio Calabria<br />
Reggio Calabria<br />
Corso Garibaldi, 144<br />
Viale Calabria, 197/199<br />
Via Argine Destro Annunziata, 81<br />
Bagnara Calabra<br />
Corso Vittorio Emanuele II, 167<br />
Bianco Via Vittoria, 52<br />
Bovalino Via XXIV Maggio - ang. V. Sicilia<br />
Bova Marina Via Maggiore Pugliatti, 2<br />
Brancaleone Via Zelante<br />
Cinquefrondi Via Roma, 24<br />
Cittanova Via Roma, 44<br />
Delianuova Via Umberto I, 277<br />
Gioia Tauro Via Roma, 52 - ang. Via Duomo<br />
Gioiosa Ionica Piazza Vittorio Veneto, 8/9<br />
Laureana di Borrello Via IV Novembre, 9<br />
Locri Via Garibaldi, 71<br />
Mammola Via Zavaglia, 33<br />
Marina di Gioiosa Ionica<br />
Via Carlo Maria, 12/14<br />
Melito di Porto Salvo Via Papa Giovanni XXIII<br />
Molochio Piazza Umberto I, 1<br />
Monasterace Marina<br />
Via Nazionale Jonica, 113/114<br />
Montebello Jonico Via Nazionale,111 (Fraz. Saline)<br />
Palmi Via Roma, 44<br />
Polistena Piazza Bellavista, 1<br />
Rizziconi Via Capitolo, 13<br />
Roccella Jonica Via XXV Aprile, 16<br />
Rosarno Corso Garibaldi, 28<br />
San Ferdinando Via Rosarno - ang. Via Bruno<br />
Sant’Eufemia d’Aspromonte<br />
Via Maggiore Cutrì, 10/A<br />
Seminara Via Taureana, 21<br />
Siderno C.so Garibaldi (Fraz. Marina)<br />
Stilo Viale Roma<br />
Taurianova Piazza Garibaldi, 17<br />
Villa S. Giovanni Piazza Rosario, 43/47<br />
Provincia di Vibo Valentia<br />
Vibo Valentia<br />
Viale Matteotti 23/25<br />
Via Emilia, 8 (Fraz. Vibo Marina)<br />
Corso Vittorio Emanuele III<br />
Arena Piazza Generale Pagano, 1<br />
Briatico Via Guido Rossa, 14/B<br />
Mileto Via Cattolica, 50/B-C<br />
Nicotera Via Luigi Razza, 1<br />
Pizzo Calabro Via Marconi, 2<br />
Rombiolo Piazza Italia<br />
Serra San Bruno Via de Gasperi, 52<br />
Soriano Calabro Via Giardinieri<br />
Tropea Viale Stazione<br />
PUGLIA<br />
Provincia di Bari<br />
Bari<br />
Piazza Umberto I, 85 (Fraz. Carbonara)<br />
Via Napoli, 53/55 (Fraz. Santo Spirito)<br />
Via Bari, 27/C (Fraz. Torre a Mare)<br />
Via Toma, 12<br />
Viale Pio XII, 46-46/A<br />
Viale de Blasio, 18<br />
Corso Italia, 123<br />
Via Pescara, 16<br />
Via Lembo, 13/15<br />
Via Melo, 151<br />
Corso Mazzini, 138/B<br />
Via Dalmazia, 223<br />
Via Tridente, 40/42<br />
Via M. Cristina di Savoia, 6/12<br />
Via Calefati, 112<br />
Acquaviva delle Fonti<br />
Piazza Garibaldi, 49/52<br />
Adelfia Via G. Marconi, 11/A<br />
Altamura Via Maggio 1648, 22/B-22/C<br />
Andria<br />
Piazza Marconi, 6/10<br />
Via Barletta, 137/139<br />
Barletta<br />
Piazza Caduti, 21<br />
Largo delle Palme, 8<br />
Bisceglie Piazza S. Giovanni Bosco, 4/5<br />
Bitetto Piazza Immacolata, 22/24<br />
Bitonto Piazza della Noce, 14<br />
Bitritto Piazza Aldo Moro, 35<br />
Canosa di Puglia Via Imbriani, 30/34<br />
Capurso Via Torricelli, 23/25<br />
Casamassima Corso Umberto I, 48<br />
Castellana Grotte Piazza della Repubblica, 2<br />
Corato V.le V. Veneto 160/166<br />
- ang. Via Lega Lombarda<br />
Gioia del Colle Corso Garibaldi, 55<br />
Giovinazzo Via G. Gentile, 1<br />
Gravina in Puglia Corso Vittorio Emanuele, 1<br />
Grumo Appula Via G. d’Erasmo, 12<br />
Modugno Piazza Garibaldi, 109<br />
Mola di Bari Piazza degli Eroi, 31<br />
Molfetta<br />
Via Tenente Fiorini, 9<br />
Corso Fornari, 163 A<br />
Monopoli Via Marsala, 2<br />
Noci Largo Garibaldi, 51<br />
Noicattaro Corso Roma, 8/10/12<br />
Polignano a Mare Piazza Aldo Moro, 1<br />
Putignano Via Tripoli, 98<br />
Rutigliano Piazza XX Settembre, 8<br />
Ruvo di Puglia Via Monsignor Bruni, 14<br />
Sannicandro di Bari Piazza IV Novembre, 15<br />
Santeramo in Colle Via S. Lucia, 78<br />
Terlizzi Via Gorizia, 86/D<br />
Toritto Piazza Aldo Moro, 48<br />
Trani Corso Italia, 17/B<br />
Triggiano Via Carroccio, 5<br />
Turi Via A. Orlandi, 15<br />
Valenzano Via Aldo Moro<br />
Provincia di Brindisi<br />
Brindisi Corso Roma, 39<br />
Ceglie Messapica Via Argentieri, 136<br />
Cisternino Via Roma, 57<br />
Erchie Via Grassi, 19<br />
830 Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group
Fasano<br />
Via Forcella, 66<br />
Via Nazionale, 45 (Fraz. Pezze di Greco)<br />
Via Teano, 37 (Fraz. Montalbano)<br />
Francavilla Fontana Via Roma, 24<br />
Latiano Via Ercole d’Ippolito, 25<br />
Mesagne Via Torre S. Susanna, 1<br />
Oria Via Mario Pagano, 151<br />
Ostuni Via L. Tamborrino, 2<br />
San Pietro Vernotico Via Stazione, 31<br />
San Vito dei Normanni Piazza Vittoria, 13<br />
Torre Santa Susanna Via Roma, 38<br />
Provincia di Foggia<br />
Foggia<br />
Viale Ofanto, 198/C<br />
Via S. Pellico, 33/37<br />
Celenza Valfortore Piazza Marconi, 12<br />
Cerignola Via Di Vittorio, 83<br />
Ischitella Corso Umberto I, 111/113<br />
Lucera Via IV Novembre, 77<br />
Manfredonia Corso Roma, 22/24<br />
Margherita di Savoia Corso V. Emanuele, 23<br />
Monteleone di Puglia Piazza Municipio, 19<br />
San Ferdinando di Puglia<br />
Via Papa Giovanni XXIII, 44<br />
San Giovanni Rotondo Piazza Europa<br />
San Severo<br />
Via Carso, 10<br />
Corso Garibaldi, 87<br />
Sant’Agata di Puglia Piazza XX Settembre, 11<br />
Stornarella Corso Garibaldi, 22<br />
Troia Via Vittorio Emanuele, 1<br />
Vico del Gargano Via S. Filippo Neri, 10<br />
Zapponeta Corso Manfredonia, 20<br />
Provincia di Lecce<br />
Lecce<br />
Viale Lo Re, 48<br />
Via Gabriele D’Annunzio, 47/B<br />
Campi Salentina Via Amedeo di Savoia, 59<br />
Carmiano Via Marini, 10<br />
Casarano Via F. Bottazzi - ang. Via Alto Adige<br />
Copertino Via Re Galantuomo, 24<br />
Galatina Via Roma, 26<br />
Galatone Viale XXIV Maggio, 32/34<br />
Gallipoli Corso Roma, 42/44<br />
Maglie Piazza O. de Donno<br />
Nardò Via Duca degli Abruzzi, 58<br />
Ruffano Piazza IV Novembre, 11<br />
Squinzano Via Nuova, 25<br />
Trepuzzi Corso Umberto I, 114<br />
Tricase Via G. Toma, 30<br />
Veglie Via Parco Rimembranze, 30<br />
Provincia di Taranto<br />
Taranto<br />
Corso Umberto I, 71<br />
(Agenzia centrale e Filiale n.3)<br />
Corso Italia, 202<br />
Via C. Battisti, 172<br />
Castellaneta Piazza Municipio, 7<br />
Fragagnano Via Garibaldi, 14<br />
Ginosa Corso Vittorio Emanuele, 92<br />
Grottaglie Via Matteotti, 72/78<br />
Laterza Piazzale Saragat, 11<br />
Lizzano Via Dante, 78<br />
Manduria Via per Maruggio, 9<br />
Martina Franca Via D’Annunzio, 34<br />
Massafra Corso Italia, 27/29<br />
Palagianello Via Carducci, 11<br />
San Giorgio Jonico Via Cadorna, 11<br />
Sava Corso Umberto, 110<br />
BASILICATA<br />
Provincia di Matera<br />
Matera<br />
Via del Corso, 66<br />
Via Annunziatella, 64/68<br />
Via Dante - ang. Via dei Bizantini<br />
Bernalda<br />
Corso Umberto, 260<br />
Via Eroi della Bonifica (Fraz. Metaponto)<br />
Ferrandina Corso Vittorio Emanuele II<br />
Irsina Corso Musacchio, 2/4<br />
Montalbano Jonico Piazza Vittoria, 3<br />
Montescaglioso Via Indipendenza, 83<br />
Pisticci<br />
Via M. Pagano, 25<br />
Via Portella delle Ginestre<br />
(Fraz. Marconia)<br />
Policoro Via G. Fortunato, 2<br />
Pomarico Corso Garibaldi, 3<br />
San Mauro Forte Corso Umberto, 12<br />
Tricarico Via Lucana, 20/24<br />
Tursi Via Eraclea, 2<br />
Provincia di Potenza<br />
Potenza<br />
Via Alianelli, 2<br />
Via Angilla Vecchia, 5<br />
Via Dante, 16/20<br />
Via del Gallitello<br />
Avigliano Viale della Vittoria, 4<br />
Brienza Viale della Stazione, 102<br />
Francavilla in Sinni Piazza M. Mainieri, 6/10<br />
Genzano di Lucania<br />
Corso Vittorio Emanuele, 180/184<br />
Lagonegro Via Colombo, 25<br />
Latronico Corso Vittorio Emanuele II, 105<br />
Lauria Piazza Plebiscito, 72<br />
Lavello Via Roma, 33<br />
Maratea Via Pietra del Sole, 3A/5<br />
Marsicovetere<br />
Via Nazionale,1 (Fraz. Villa d’Agri)<br />
Melfi Piazza Mancini Abele<br />
Moliterno Via Roma<br />
Muro Lucano Via Roma, 60/62<br />
Palazzo San Gervasio Via Isonzo, 14<br />
Paterno di Lucania Piazza Autonomia, 3/4<br />
Rionero in Vulture Via Galliano<br />
Rivello Via Monastero, 73<br />
Rotonda Via dei Rotondesi in Argentina, s.n.c.<br />
San Fele Via Costa, 12<br />
Sant’Arcangelo Viale Isabella Morra, 48<br />
Senise Via Amendola, 33/39<br />
Tito Scalo<br />
Contrada Serra Villaggio Mancusi, 72<br />
Venosa Via Fortunato, 66 - angolo Via Melfi<br />
CAMPANIA<br />
Provincia di Salerno<br />
Salerno<br />
Via S. Margherita, 36<br />
Viale Kennedy, 11/13<br />
Via G. Cuomo 29<br />
Agropoli Via Risorgimento - ang. Via Bruno<br />
Amalfi Via Fra’ Gerardo Sasso, 10/12<br />
Angri Corso Vittorio Emanuele, 126/132<br />
Atena Lucana Via Stazione<br />
Baronissi Corso Garibaldi, 197<br />
Battipaglia Via Salvator Rosa, 98<br />
Buccino Piazza San Vito<br />
Buonabitacolo Via Nazionale, 178<br />
Campagna<br />
Via Quadrivio Basso (Fraz. Quadrivio)<br />
Corso Umberto, 135<br />
Capaccio Via della Repubblica, 26<br />
Castel San Giorgio Via Guerrasio, 42<br />
Cava dei Tirreni Piazza Duomo, 2<br />
Corbara Via Ten. Ligula Santolo<br />
Eboli Via Amendola, 86<br />
Marina di Camerota Via Bolivar, 54<br />
Mercato San Severino<br />
Corso Armando Diaz, 130<br />
(Filiali n.1 e n.2)<br />
Minori Via Vittorio Emanuele, 9<br />
Nocera Inferiore Via Barbarulo, 41<br />
Pontecagnano Piazza Risorgimento, 14<br />
Roccapiemonte Piazza Zanardelli, 1<br />
San Cipriano Picentino<br />
Via S. Giovanni, 10 (Fraz. Filetta)<br />
San Giovanni a Piro Via Nazionale, 93<br />
Sant’Egidio del Monte Albino<br />
Via SS. Martiri, 13 (Fraz. San Lorenzo)<br />
Sapri Via Marsala, 44<br />
Sarno Via Matteotti, 72/74<br />
Teggiano<br />
Via Provinciale del Corticato (Fraz. Pantano)<br />
Vallo della Lucania Via G. Murat<br />
www.bancavalle.it<br />
LOMBARDIA<br />
Provincia di Bergamo<br />
Ardesio Piazza Alessandro Volta, 8/9<br />
Casazza Piazza della Pieve, 1<br />
Clusone Viale Gusmini, 47<br />
Costa Volpino Via Cesare Battisti, 34<br />
Lovere Via Gregorini, 43<br />
Rogno Piazza Druso, 1<br />
Sarnico Via Roma, 68<br />
Sovere Via Roma, 20<br />
Villongo Via J. F. Kennedy, 5<br />
Provincia di Brescia<br />
Brescia<br />
Via Duca degli Abruzzi, 175<br />
Viale Bornata, 2<br />
Angolo Terme Piazza degli Alpini, 4<br />
Artogne Via Geroni, 12<br />
Berzo Demo Via San Zenone, 9<br />
Berzo inferiore Piazza Umberto I, 35/A<br />
Bienno Piazza Liberazione, 2<br />
Borno Piazza Umberto I, 13<br />
Breno Piazza della Repubblica, 1/2<br />
Capo di Ponte Viale Stazione, 16<br />
Cazzago S.M.<br />
Via del Gallo, 2 (Fraz. Bornato)<br />
Cedegolo Via Roma, 26/28<br />
Ceto Loc. Badetto, 23<br />
Cevo Via Roma, 44<br />
Cividate Camuno Via Cortiglione<br />
Coccaglio Largo Torre Romana, 4<br />
Corte Franca Via Roma, 78<br />
Corteno Golgi Via Roma, 1<br />
Darfo Boario Terme<br />
Via Roma, 12<br />
Viale della Repubblica, 2<br />
Edolo Via Porro, 51<br />
Esine Piazza Giuseppe Garibaldi, 4/6<br />
Gianico Via XXV Aprile, 7/9<br />
Malegno Via Lanico, 36<br />
Malonno Via G. Ferraglio, 4<br />
Marone Via Cristini, 49<br />
Ome Piazza Aldo Moro, 7<br />
Palazzolo sull'Oglio<br />
Via Firenze, 88/90 (Fraz. San Pancrazio)<br />
Piancogno<br />
Via Vittorio Veneto, 7 (Fraz. Cogno)<br />
Via XI Febbraio, 1 (Fraz. Pianborno)<br />
Pian Camuno Piazza Giuseppe Verdi, 8<br />
Pisogne Via Provinciale, 6 (Fraz. Gratacasolo)<br />
Ponte di Legno Via Cima Cadi, 5/7/9<br />
Provaglio d’Iseo Via Roma, 12<br />
Rodengo Saiano Via Guglielmo Marconi, 11/b<br />
Rovato Corso Bonomelli, 74/80<br />
Temù Via Roma, 71/73<br />
Torbole Casaglia Piazza Repubblica, 25/26<br />
Travagliato Via Andrea Mai, 5<br />
Vezza d’Oglio Via Nazionale, 65<br />
Provincia di Como<br />
Dongo Via Statale, 77<br />
Provincia di Sondrio<br />
Sondrio Via Trento - ang. Via Alessi<br />
Aprica Corso Roma, 238<br />
Bormio Via Don Peccedi, 11<br />
Chiavenna Via Maloggia, 1<br />
Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group<br />
831
Grosio Via Roma, 1<br />
Livigno Via Dala Gesa, 141/a<br />
Morbegno Piazza Caduti per la Libertà, 9<br />
Piantedo Via Nazionale, 875<br />
Tirano Via Alessandro Manzoni, 22<br />
www.bancodisangiorgio.it<br />
TOSCANA<br />
Provincia di Massa - Carrara<br />
Carrara Via Galileo Galilei, 32<br />
LIGURIA<br />
Provincia di Genova<br />
Genova<br />
Via C.R. Ceccardi, 13/r<br />
Corso Torino, 61/r<br />
Via Pastorino, 118 (Loc. Bolzaneto)<br />
Via Sestri, 188/190r (Sestri Ponente)<br />
Piazza G. Lerda, 10/r (Loc. Voltri)<br />
Via Cinque Maggio, 101/r (Priaruggia)<br />
Via C. Rolando, 123 (Sampierdarena)<br />
Via Antonio Gramsci, 8/r<br />
Via Marina di Robilant, 5<br />
Via Molassana, 82/r<br />
Borzonasca Via Angelo Grilli, 15<br />
Chiavari Corso Dante Alighieri, 36<br />
Cicagna Via Statale, 8 - angolo Via Dante, 1<br />
Lavagna C.so Buenos Aires, 84 (Fraz. Monleone)<br />
Mezzanego Via Capitan Gandolfo, 138<br />
Rapallo Via Alessandro Lamarmora, 4<br />
Recco Via Roma, 56r<br />
Santo Stefano d’Aveto Via Razzetti, 11<br />
Sestri Levante Via Fascie, 70<br />
Provincia di Imperia<br />
Imperia<br />
Viale Giacomo Matteotti, 13<br />
Via Giacomo Puccini, 7<br />
Bordighera Via Treviso,1<br />
- ang. Via V. Emanuele II<br />
Sanremo Via Roma, 54/60<br />
Taggia Via Boselli, 62 (Fraz. Arma)<br />
Ventimiglia<br />
Via Ruffini, 8/a<br />
Via Roma, 64/b<br />
Provincia di La Spezia<br />
La Spezia<br />
Via Nazionale, 171<br />
Via G. Pascoli, 22<br />
Via Chiodo, 115<br />
Via San Bartolomeo (c/o ASW Research)<br />
Via di Monale, 23/29<br />
Corso Cavour, 190<br />
Piazza d’Armi<br />
(c/o comprensorio Maridipart)<br />
Via Fiume, 152<br />
Via del Canaletto, 307<br />
Castelnuovo Magra<br />
Via Aurelia, 129 (Fraz. Molicciara)<br />
Lerici<br />
Calata G. Mazzini, 1<br />
Via Petriccioli, 26<br />
Sarzana<br />
Via Pietro Gori, 15/a<br />
Via Muccini, 48<br />
Portovenere Via Lungomare, 47<br />
Provincia di Savona<br />
Savona<br />
Piazza Aurelio Saffi, 7/r<br />
Corso Vittorio Veneto, 93<br />
Alassio Via Mazzini, 55<br />
Albenga<br />
Via Cesare Battisti, 4<br />
Via Dalmazia, 43<br />
Albisola Superiore Corso Giuseppe Mazzini, 189<br />
Andora Piazza Santa Maria, 7<br />
Cairo Montenotte<br />
Corso Marconi, 240 (Fraz. S. Giuseppe)<br />
Celle Ligure Via Boagno, 12<br />
Loano Via Stella, 34<br />
Vado Ligure Via Aurelia, 148<br />
www.ubibancapi.it<br />
ABRUZZO<br />
L’Aquila Via Giuseppe Verdi, 21 a/c<br />
Pescara Piazza Rinascita, 6/9<br />
CAMPANIA<br />
Napoli<br />
Via Enrico Alvino, 50/50bis<br />
Via Taddeo da Sessa - Torre Saverio<br />
Castellammare di Stabia<br />
Corso Vittorio Emanuele II, 108/110<br />
Pomigliano d’Arco Via Roma, 31<br />
Caserta Corso Trieste, 170<br />
Salerno Via SS. Martiri Salernitani, 42/46<br />
EMILIA ROMAGNA<br />
Bologna Via Giuseppe Mazzini, 146/Q<br />
LIGURIA<br />
Genova<br />
Via Roma, 5<br />
Via XX Settembre, 33<br />
LAZIO<br />
Roma<br />
Via Baldovinetti, 106/110<br />
Via Anicio Gallo, 91 e/i<br />
P.zza Giuliano della Rovere, 9-11/a<br />
(Fraz. Lido di Ostia)<br />
Via Vincenzo Bellini, 27<br />
Frosinone Via Fedele Calvosa, 27/29<br />
Latina Viale Le Corbusier, snc<br />
LOMBARDIA<br />
Milano<br />
Piazza Giovine Italia, 3<br />
Corso Giacomo Matteotti, 1<br />
Monza Via Girolamo Borgazzi, 7<br />
Brescia Via Repubblica Argentina, 90<br />
Cremona Via Rialto, 20<br />
Varese Via Avegno, 11<br />
MARCHE<br />
Macerata Via Roma, 78/80<br />
Pesaro Via Bertozzini, 13<br />
PIEMONTE<br />
Torino Corso Re Umberto I, 47<br />
PUGLIA<br />
Bari Via Nicolò dell’Arca, 9-9a<br />
Foggia Via Salvatore Tugini, 70/74<br />
SARDEGNA<br />
Cagliari Viale Bonaria, 58<br />
TOSCANA<br />
Firenze Via Bettino Ricasoli, 21<br />
Arezzo Via XXV Aprile, 28-28/a<br />
San Giovanni Valdarno Corso Italia, 117<br />
Grosseto Via Giacomo Matteotti, 32<br />
Livorno Via Scali d'Azeglio, 46/50<br />
- ang. Via Cadorna<br />
Pisa Via G.B. Niccolini, 8/10<br />
UMBRIA<br />
Terni Via della Bardesca, 7/11<br />
www.centrobanca.it<br />
Napoli Via S. Brigida, 51<br />
Bologna Piazza Calderini, 2/2<br />
Roma Via dei Crociferi, 44<br />
Milano Corso Europa, 16<br />
Jesi Via Don Battistoni, 4<br />
Torino Via Alfieri, 17<br />
Bari Via De Rossi, 221<br />
www.bdg.ch<br />
SVIZZERA<br />
Losanna Avenue du Théâtre, 14<br />
Lugano Piazza Riforma, 3<br />
Mendrisio Via Franscini, 6<br />
Neuchâtel<br />
Faubourg de l’Hôpital, 21<br />
www.banca247.it<br />
Bergamo Via Stoppani, 15 (sede operativa)<br />
www.iwbank.it<br />
Milano<br />
Corso Europa, 20<br />
Via Cavriana, 20<br />
www.ubibanca.lu<br />
GERMANIA<br />
Monaco Prannerstrasse, 11<br />
SPAGNA<br />
Madrid<br />
Torre Espacio - Planta 45<br />
Paseo de la Castellana, 259<br />
832<br />
Branch network of the <strong>UBI</strong> <strong>Banca</strong> Group
Calendar of corporate events for 2009<br />
In compliance with the “Regulations governing markets organised and managed by Borsa<br />
Italiana S.p.A”, Part 2, Title 2.6., Article 2.6.2., Unione di Banche Italiane Scpa has published<br />
its calendar of corporate events for the 2009 financial year, as follows:<br />
Date<br />
29 th April 2009 (1 st Call)<br />
9 th May 2009 (2 nd Call)<br />
Event<br />
Extraordinary and Ordinary Meetings of the<br />
Shareholders of <strong>UBI</strong> <strong>Banca</strong><br />
13 th May 2009<br />
Approval of the Quarterly Financial Report of <strong>UBI</strong><br />
<strong>Banca</strong> as at 31 st March 2009<br />
25 th August 2009<br />
Approval of the Half Year Financial Report of <strong>UBI</strong><br />
<strong>Banca</strong> as at 30 th June 2009<br />
12 th November 2009<br />
Approval of the Quarterly Financial Report of <strong>UBI</strong><br />
<strong>Banca</strong> as at 30 th September 2009<br />
The dates of the presentations of accounting data to financial analysts, which will indicatively<br />
take place on a quarterly basis, will be set during the course of the financial year.<br />
833 Calendar of Corporate events for 2009
Contacts<br />
All information on periodic financial reporting is available on the website www.ubi.it.<br />
Investor relations: Tel. 035 392217<br />
Email: investor.relations@ubibanca.it<br />
External Communication: Tel. 030 2433591; 035 29293511<br />
email: relesterne@ubibanca.it<br />
Registered shareholders’ office: Tel. 035 392155<br />
email: soci@ubibanca.it<br />
834