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207
REPORTS
AND
FINANCIAL STATEMENTS
as at
31st DECEMBER 2009
2
Reports and
Financial Statements as at 31st
December 2009
Banco di Brescia San Paolo Cab
Joint Stock Company
Share Capital 615,632,230.88 euro
Taxpayers Code and
Brescia Companies’ Register No. 03480180177
Registered Offices and Headquarters: Corso Martiri della Libertà 13,
Brescia, Italy
A company of “UBI Banca Group”
Member of the Interbank Fund for the Protection of Deposits and
the National Guarantee Fund
3
Table of Contents
Our Mission .................................................................................................................. 4
Corporate Officers and General Management ............................................................... 5
UBI Banca Group’s Sales Network................................................................................. 6
Ratings ........................................................................................................................ 7 Primary data and indicators ....................................................................................... 10
Directors’ Report ....................................................................................................... 11 The reference scenario .................................................................................................. 12
Banco di Brescia’s Activities in 2009 ............................................................................. 22
The Internal Control System ......................................................................................... 27 Reclassified Financial Statements ................................................................................. 30
Research and Development Activities ............................................................................ 39
Contractual Relationships with Group Companies ........................................................ 40
Other Information ........................................................................................................ 41
Key Events after the Reporting Period ........................................................................... 58
Business Outlook ......................................................................................................... 58 Proposals to the Shareholders ...................................................................................... 59
Accounting Statements .............................................................................................. 60
Balance Sheet .............................................................................................................. 61
Income Statement ........................................................................................................ 62
Statement of aggregate profitability ............................................................................... 63 Statement of Changes in Shareholders’ Equity .............................................................. 64
Cash Flow Statement ................................................................................................... 66
Notes.......................................................................................................................... 67
Part A –Accounting Policies........................................................................................ 68
A.1 – General Information....................................................................................... 68
Section 1 Statement of Compliance with IAS ...................................................... 68 Section 2 General preparation principles ........................................................... 68
Section 3 Events occurring after the Balance Sheet date .................................... 70
Section 4 Other aspects ..................................................................................... 70
List of the main IAS/IFRS Standards Endorsed by the European Commission ........... 73
A.2 – Part Relating to the Main Financial Statement Items .................................... 77 A.3 – Disclosure on the fair value ........................................................................... 96
Part B – Information on the Balance Sheet ................................................................. 99
Part C – Information on the Income Statement ........................................................ 142
Part D – Aggregate Profitability ................................................................................ 158
Part E – Information on Risks and the related Hedging Policies ............................... 159
Section 1 Credit Risk ....................................................................................... 159 Section 2 Market risk: ..................................................................................... 182
Section 3 Liquidity Risk ................................................................................... 212
Section 4 Operational Risk .............................................................................. 219
Part F – Information on Shareholders’ Equity .......................................................... 225
Part G – Business Combination Transactions Regarding Businesses or Business Units
................................................................................................................................ 230 Part H –Related Party Transactions .......................................................................... 231
Part I – Share-based Payment Agreements ............................................................... 235
Part L – Segment Reporting ..................................................................................... 236
Attachments to the Financial Statements ................................................................ 237
Independent Auditors’ Report .................................................................................. 263 Report of the Board of Statutory Auditors................................................................ 264
4
Our Mission
We are an alliance of banks, with a rich history, united under a federal
model, integrated and multi-functional, able to capitalise on the strength of the
sales network and convey our synergies in the market.
We are integral participants in the economic and social life of the areas in which we operate, with a distinct ability to interpret, serve and support the
development of local economies.
We pursue the objective of promoting progress and creating value for all of our stakeholders.
We support the development of a healthy economic and entrepreneurial infrastructure, growing together with our customers through excellent
products and services.
(from “The Charter of Values" of UBI Banca Group, approved 29th January 2008)
5
Corporate Officers and General Management
BOARD OF DIRECTORS
Chairman Gino Trombi (*)
Vice Chairman Pierfrancesco Rampinelli Rota (*)
Director and Secretary Antonio Spada (*)
Directors Francesco Bettoni, Franco Bossoni (*), Giuseppe Camadini,
Gaudenzio Cattaneo (*), Giorgio Franceschi, Stefano Gianotti,
Andrea Gibellini, Pierangelo Gramignola, Victor Massiah,
Giambattista Montini, Francesco Passerini Glazel, Flavio
Pizzini (*), Franco Polotti (*), Gianfederico Soncini.
(*) members of the Executive Committee
BOARD OF STATUTORY AUDITORS
Chairman Paolo Golia
Standing Auditors Eugenio Ballerio, Antonio Angelo Bertoni, Alessandro
Masetti Zannini, Antonio Minervini
Alternate Auditors Primo Cancarini, Guido Piccinelli
GENERAL MANAGEMENT
General Manager Costantino Vitali
Joint General Manager Elvio Sonnino
Deputy General Managers Stefano Vittorio Kuhn, Paola Montresor
INDEPENDENT AUDITORS
Reconta Ernst & Young S.p.A.
6
UBI Banca Group’s Sales Network
7
Ratings
The tables below summarise the Group’s ratings from the international agencies of Standard
& Poor’s, Fitch Ratings, Moody’s.
In March 2009, due to the deterioration in the economic scenario underway, Standard & Poor’s downgraded the outlook for UBI Banca from Positive to Stable. During the same
month, the agency carried out a generalised downgrading of the ratings on hybrid
instruments1 extending their differential by three or more notches with respect to the
issuers’ ratings. Consequently, the S&P rating on UBI Banca preference shares fell from
BBB+ to BBB, in fact equivalent to three notches less than the A issuer rating.
On 1st July 2009, Moody’s, on conclusion of the rating review process started on 18th May
concerning 22 Italian banks, disclosed confirmation of the Bank Financial Strength Rating
for UBI Banca, equating to C, (and the correlated BCA, Baseline Credit Assessment, equal to
A3) with a Negative Outlook. The long-term rating, A1 with a Stable Outlook, was confirmed
on 18th June 2009. During 2009, Moody’s also completed the process for reviewing its rating method on hybrid
instruments. The rating of these instruments was released from the reference to long-term
debt and deposit rating, which also incorporates an assessment on the probability of
external support measures, but was directly linked to the Bank Financial Strength Rating
(and the correlated Baseline Credit Assessment) since these express the intrinsic stability of
the debtor. Consequently, on 18th November 775 securities were placed under observation worldwide
for possible downgrading. On 9th February 2010, Moody’s adjusted the rating on hybrid
instruments issued by Italian banks, taking the rating on UBI Banca preference shares from
A3 (equivalent to long-term debt and deposit rating less two notches) to Baa3 (corresponding
to the BCA less three notches)2, with a Negative Outlook.
Lastly with regard to Fitch Ratings, on 14th October 2009 the agency confirmed the
current ratings with a Stable Outlook.
At the beginning of 2010, Fitch published a review of the rating method on hybrid
instruments, within the sphere of which an extension of the scale of the notches applied
with respect to the reference rating (Issuer Default Rating) was envisaged. This resulted in a generalized downgrading of the 592 bank instruments examined worldwide – made official
by means of disclosure on 29th January 2010 – to the extent of just one notch in nearly all
the cases. In detail, the rating on UBI Banca preference shares was thus downgraded from A
to A-3.
In all the cases of downgrading of the hybrid instruments described above, this involved
measures of a purely technical nature, which have nothing to do with the assessment of the
intrinsic stability of UBI Banca.
1 Preference shares and long-term or perpetual subordinated securities (Upper Tier II) with interest payments which can be deferred. 2 At the same time, the rating assigned by Moody’s to the UBI Banca Upper Tier II issue in circulation, which
matured on 23rd February 2010, passed from A2 (equivalent to long-term rating less 1 notch) to Baa1
(corresponding to the BCA less 1 notch). 3 As of the date of the disclosure, the UBI Banca Upper Tier II issue which matured on 23rd February 2010 was
still outstanding, and its rating was likewise lowered by Fitch from A to A-.
8
(i) Ability to repay debt expiring in less than
one year (A-1 highest rating - D: lowest rating)
(ii) Refers to debt expiring after 1 year, indicates the ability to make interest and
capital payments, together with any
sensitivity to unfavourable changes in
circumstances or changes in economic
conditions (AAA: highest rating - D: lowest rating)
(I) Ability to repay long-term debt in local currency (expiring in 1 year or longer).
Through the JDA (Joint Default Analysis)
methodology, this rating associates the
Bank Financial Strength Rating with the
valuation of the likelihood, if necessary, of intervention from external support
(shareholders, other group companies or
official institutions) (Aaa: highest quality -
Baa3: average quality)
(II) Ability to repay short-term debt in local
currency (expiring in less than 1 year) (Prime -1: highest quality – Not Prime:
speculative grade)
(III) This rating does not refer to the ability to
repay debt, but considers the intrinsic financial stability of the bank (analysing
factors such as sales network, asset
diversification, financial fundamentals),
without external support (A: highest rating
- E: lowest rating)
STANDARD & POOR’S
Short-term Counterparty Credit
Rating (i) A-1
Long-term Counterparty
Credit Rating (i) A.
Outlook Stable
ISSUES RATINGS
Senior unsecured debt A.
Subordinated debt (Lower Tier II) A-
Tier III subordinated debt BBB+
Preference shares BBB
French Certificats de Dépôt Programme A-1
MOODY'S
Long-term debt and deposit rating (I) A1
Short-term debt and deposit rating (II)
Prime-1
Bank Financial Strength Rating (BFSR)(III)
C
Baseline Credit Assessment (BCA) A3
Outlook (deposit ratings) Stable
Outlook (Bank Financial Strength Rating)
Negative
ISSUES RATINGS
Senior unsecured LT A1
Senior unsecured ST P-1
Lower Tier II subordinated A2
Tier III subordinated A2
Preference shares (former BPB-CV and Banca
Lombarda)
Baa3
Euro Commercial Paper Programme Prime-1
French Certificats de Dépôt
Programme
Prime-
1
Covered Bonds Aaa
9
(1) Ability to repay short-term debt (expiring in less than 13 months) (F1: highest rating - D: lowest rating)
(2) Ability to duly meet financial commitments
in the long term, regardless of the expiration of individual bonds. The rating is an
indicator of probability of issuer default
(AAA: highest rating - D: lowest rating)
(3) Valuation of the intrinsic bank stability
(profitability, balanced financial statements, commercial network, management ability,
operational context and future outlook),
under the assumption that the bank cannot
rely on external support (intervention from
a lender as last resort, shareholder support,
etc.) (A: highest rating - E: lowest rating)
(4) Assessment of the probability, sufficiency and timeliness of external support (by the
government or reference institutional shareholders) if the bank found itself in difficulty (1: highest rating - 5: lowest rating)
(5) This rating is a supplementary information element, closely linked to the Support Rating, in that it identifies, for each level of the Support Rating, the minimum level the Issuer
Default Rating might reach, if negative events were to occur.
FITCH RATINGS
Short-term Issuer Default Rating (1) F1
Long-term Issuer Default Rating (2) A+
Bank Individual Rating (3) B/C
Support Rating (4) 2
Support Rating Floor (5) BBB
Outlook for Long-term Issuer Default
Rating Stable
ISSUES RATINGS
Senior unsecured debt A+
Lower Tier II subordinated A
Preference shares A-
Tier III subordinated debt A-
Euro Commercial Paper Programme F1
Covered Bonds AAA
(
10
Primary data and indicators
(in thousands of euro)
B A N C O D I B R ES C IA S .p .A . 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
D A TI P A TR IM ON IA LI, EC ON OM IC I, OP ER A TIVI E D I S TR UTTUR A
Crediti vers o c liente la 14 .17 9 14.458
di cui de terio rati 5 3 2 287
Racco lta dire tta da c liente la 19 .17 1 17.306
Racco lta indire tta da c liente la , co mpres o il ris parmio as s icura tivo (a l va lo re di merca to ) 2 0 .8 6 6 23.414
To tale ricchezza finanziaria 4 0 .0 3 7 40.720
P atrimo nio Netto (es c lus o utile di es erc izio ) 1.15 8 996
Utile de lla o pera tività co rrente a l lo rdo de lle impo s te 2 0 2 325
Utile de ll'e s e rc izio 12 9 217
Numero de i dipendenti e ffe ttivi 2 .6 2 3 2.683
Numero s po rte lli bancari o pera tivi (*) 3 6 3 359
IN D IC I D I S TR UTTUR A
Crediti vers o c liente la /racco lta da c liente la 7 3 ,9 6 % 83,54%
Racco lta ges tita (co mpres o as s icurazio ni)/racco lta indire tta 4 7 ,5 6 % 39,29%
IN D IC I D I R ED D ITIVITA ', EF F IC IEN ZA E P R OD UTTIVITA '
ROE (Utile de ll'e s e rc izio /P a trimo nio ne tto es c lus o utile de ll'e s e rc izio ) 11,14 % 21,75%
ROE a l ne tto de lle co mpo nenti no n rico rrenti 10 ,6 9 % 20,35%
COST/INCOME 1 (o neri o pera tivi/pro venti o pera tivi) 5 3 ,0 0 % 45,68%
COST/INCOME 1 a l ne tto de lle co mpo nenti no n rico rrenti 5 3 ,0 0 % 46,23%
COST/INCOME 2 (o neri o pera tivi + re ttifiche di va lo re s u c rediti/pro venti o pera tivi) 6 4 ,8 1% 55,23%
COST/INCOME 2 a l ne tto de lle co mpo nenti no n rico rrenti 6 4 ,8 1% 55,89%
Tax ra te 3 5 ,6 6 % 31,31%
Tax ra te no rmalizza to 3 8 ,5 8 % 36,81%
Margine di inte res s e /pro venti o pera tivi 6 0 ,2 7 % 65,37%
Co mmis s io ni ne tte /pro venti o pera tivi 3 4 ,16 % 29,82%
Co mmis s io ni ne tte /s pes e de l pers o na le 12 1,7 1% 122,54%
Rettifiche ne tte s u c rediti/c rediti vers o c liente la 0 ,4 9 % 0,49%
IN D IC I D I R IS C HIOS ITA '
So fferenze /c rediti vers o c liente la 0 ,9 3 % 0,75%
Crediti de te rio ra ti/c rediti vers o c liente la 3 ,7 5 % 1,99%
% co pertura s o ffe renze 5 0 ,7 5 % 52,19%
% co pertura to ta le c rediti de te rio ra ti 2 4 ,8 3 % 37,18%
% co pertura c rediti in bo nis 0 ,3 7 % 0,34%
C OEF F IC IEN TI P A TR IM ON IA LI
P atrimo nio di bas e /Attività di ris chio po ndera te 10 ,5 3 % 9,29%
P atrimo nio di vigilanza /Attività di ris chio po ndera te 11,4 2 % 10,60%
(*) including 1 Branch in Luxembourg.
The indicators were calculated using the reclassified data reported in the section
“Information on the Reclassified balance sheet and income statement”.
11
Directors’ Report
12
The reference scenario
The most critical phase of the financial crisis, reached in September 2008 with the Lehman
Brothers troubles, essentially petered out during the first quarter of 2009. The improvement in the market prospects and the abundant liquidity made available by the central banks in
fact led to a generalized improvement in the listed prices of financial instruments: the
subdued aversion to risk and the low level of interest rates in the leading economies
encouraged investment flows towards currencies and assets with higher expected returns;
the premiums for the risk on corporate bonds fell further; and the interbank market more or
less returned to normal. With regard to lending, the leading international banks continued to strengthen their equity
structures by means of recapitalization transactions, resorting to the market in most cases,
while premiums on credit default swaps, which in October 2009 had already returned to the
values observed on the eve of the Lehman Brothers bankruptcy, continued to drop in the
last quarter of the year, but still remained well above the levels of the first half of 2007.
However great uncertainty continues to burden the world economy, associated with the
transitory nature of the main factors which have so far sustained it and with the curbing
action exercised by the excess of production capacity, the high unemployment and public
debt levels, and the increased propensity towards saving shown by households.
On the monetary front, in consideration of the fragility of the recovery under way, the main
Central Banks announced a gradual reduction of the untraditional measures adopted after
the financial crisis broke out4, continuing however to ensure the necessary degree of
liquidity by means of the temporary maintenance of the reference rates at levels close to zero
in many cases5.
During 2009, a debate was launched on the reforms to be undertaken so as to avoid
financial crises being repeated in the future. More specifically:
in Europe, after the May publication of a proposed reform on the supervision of the financial system, in September the European Commission presented a draft of the
legislation which should render the new structure operative. The project envisages
establishing a European Council which will see to macro-prudent supervision (European Systemic Risk Board)6, while supervision over the individual institutions
will fall under the responsibility of the European System of Financial Supervisors,
4 During the meeting on 16th December 2009, the Federal Reserve, confirming its intention to maintain a highly
expansive approach for a prolonged period of time, declared that it no longer believed it necessary to renew – on their expiry at the start of February – the majority of the measures introduced during the crisis in order to provide liquidity to the markets and the swap facilities agreed with the other leading central banks; it also
announced its intention to further reduce the amount of the loans offered within the sphere of the Term Asset-Backed Securities Loan Facility. During the meeting at the start of December, while confirming its commitments to disburse the necessary liquidity to the euro area banking system, the BCE also made a number of decisions aimed at starting the
gradual removal of the exceptional refinancing transactions considered to be no longer indispensable. Among other aspects, the Board established that the main refinancing transactions will continue to be carried out by means of fixed rate auctions involving full awarding of the amounts requested in any event until at least mid
April 2010. At the end of March 2010, the last transaction with a duration of six months will be carried out. By contrast, the last 12-month auction was carried out in December and its rate was fixed at a value equating to the average of the minimum offer rates which will be applied to the main refinancing auctions over the duration of the transaction. The acquisition of guaranteed bank bonds also continued (covered bonds) issued in the area for
a total of around 28 billion of the overall 60 envisaged until July 2010 as part of the programme approved in June by the management board. After having disclosed at the end of October the intention not to extend any of the measures adopted for the creation of liquidity, during an extraordinary meeting at the beginning of December the Bank of Japan, so as to
encourage a drop in interest rates over the long term, announced that it wished to introduce new liquidity onto the market for 10 thousand billion yen by means of 3-month guaranteed loans at a rate of 0.1%.
5 During the last quarter of 2009, only Australia, Israel and Norway increased the reference interest rates. In February 2010, the FED, despite confirming the reference rate at very low levels, took due note of the continual
improvements in financial market conditions, raising the official discount rate by 25 bp, from 0.50% to 0.75%. 6 The Board will have the power to oversee and identify the risks of the financial system in its entirety and report
to the ministers of finance and the other leaders of the EU countries.
13
made up of the national supervisory agencies and three new authorities which will
oversee banks, insurance companies and financial markets, respectively7;
on the other side of the Pond, the US administration announced in June a plan for the reform of the regulation and supervision of the financial system. In December, the
House approved a draft law while the Senate is still discussing an alternative draft:
the draft law envisaged the establishment of a Board for financial stability, made up of regulation authorities, including the FED, who will have to identify and regulate the
financial institutions considered to be of systemic importance. By contrast, the
alternative draft would greatly limit the powers acknowledged to the FED with regard
to supervision and regulation;
in December, the Basel Committee for banking supervision (CBSB) published two discussion papers, containing proposals for an enhancement of the capital
requirements and liquidity of banks operating at international level. The new measures, together with the changes presented in July 2009 to Basel II legislation8,
should contribute towards overcoming the shortfalls for the regulation, supervision
and handling of the risks of the banking system highlighted by the financial crisis.
The macroeconomic scenario
According to the International Monetary Fund, during 2009 world GDP should disclose a
modest drop of 0.8% (compared with +3% in 2008) thanks to a gradual strengthening of the
pick up during the second part of the year, albeit at different paces among the various
countries: more moderate for the more advanced nations, swifter for emerging economies, in
particular those in Asia. The recovery, also extended to international trade flows, benefited from the highly expansive policies and drew new vigour from the expected slowdown, in
some countries, in the drop in reserves, as well as from the improved conditions on financial
markets, accompanied however by a generalized rise in unemployment and public
borrowing.
After having reached negative levels in the Summer, inflation was once again positive in the
following months affected, on the one hand, by the depletion of the underlying effect associated with the drop in energy prices which occurred during the second half of 2008
and, on the other hand, by a rise in the prices of certain raw materials.
As indicated in graph No. 1, after
having fallen in February 2009 to
under 40 dollars a barrel, the price of Brent rapidly rose, stabilizing in the
last quarter at between 70-80 dollars
a barrel. Brent ended the year at
77.93 dollars (+70.9% in twelve
months), essentially confirming this
position during the first few weeks of 2010 as well, in the presence of
rising doubts on the solidity of the
economic recovery underway.
During the second half of the year, the US economy came out of recession,
but fears persist with regard to the
stamina of the recovery: during the fourth quarter, GDP rose 5.9% on an annual basis
(+2.2% in the third) sustained more by the reestablishment of the reserves than by an
effective increase in consumption, whose contribution by contrast fell with respect to the
Summer months; after nine quarters, the contribution from fixed investments was once again positive, albeit marginal, within the sphere of which the residential property
7 The three authorities will have the task of proposing new technical standards for the prudent regulations,
settling cases of disagreement between national supervisory bodies, ensuring the application of the EU rules and undertaking a co-ordination role in emergency situations.
8 On 13th July 2009, the CBSB published three documents containing measures aimed at enhancing the capital requirements on the trading book, re-securitisations and a series of recommendations on the risk management and disclosure practices, in particular for securtisation and trading activities and off-balance sheet exposures.
35
40
45
50
55
60
65
70
75
80
85
J F M A M J J A S O N D
2009 oil price trend (Brent) Graph No. 1
14
component continued to show itself to be
weak, while foreign trade improved as well.
Overall on an average annual basis, the
US GDP fell 2.4%, the sharpest drop since 1946.
On the currency front, graph No. 2 shows
how the initial appreciation of the US
currency against the euro was followed by
a weakening as far as 1.51 dollars
per euro, and then subsequent recovery which accentuated in the first few weeks
of 2010. At the end of December, the US
currency was listed at 1.4316 dollars per
euro (+2.4% when compared with 1.3978
dollars at the end of 2008). On the employment market, the unemployment rate rose progressively from 7.4% in
December 2008 to 10.1% in October 2009, the highest level since June 1983, then
remaining at 10% in November and December. During 2010, the first signs of improvement
were seen (9.7% in January).
Inflation – negative between March and October with a minimum in July (- 2.1%) – rose
rapidly during the last two months to 2.7% in December (average annual rate of- 0.4% Vs. + 3.8% in 2008). “Core” inflation (net of foodstuffs and energy products) by contrast remained
more or less unchanged (1.8% in December, like the twelve months before).
With regard to the “twin deficits”, the federal deficit more than doubled to 1,471.2 billion
dollars, from 680.5 billion in 2008, encumbered by the numerous support measures for the
economy launched by the Obama administration to combat the crisis. In contrast – despite the dynamic growth in imports during the latter months of the year – the negative trade
balance more or less halved from 695.9 to 380.7 billion dollars, benefiting to a significant
extent from the reduction in the indebtedness vis-à-vis Opec countries (- 115.8 billion).
Despite the attempts of China, Japan managed to confirm itself once again in 2009 as the
second world economy thanks to the results of the last quarter when GDP rose 1.1% on the previous period, drawn along mainly by exports – in particular towards the euro area, the
USA and emerging countries in Asia – also benefiting from the positive contribution of
internal demand, for the first time since the start of 2008.
Industrial production (+ 1.9% in market terms in December, tenth consecutive
improvement; + 5.1% on an annual basis after the sharp drops in the previous months) and exports were on the up, also encouraged by the devaluation of the yen against the dollar
(2.5%) and the euro (5.1%). During the first part of 2010, an appreciation of the Japanese
currency against the other leading world currencies was underway; this, if confirmed over
the mid-term, may prejudice the consolidation of recovery.
The unemployment rate on the labour market stood at 5.1% in December (4.1% on average
in 2008), after the July peak (5.7%). The December Tankan report indicated a further improvement, with respect to September,
in the climate of confidence of businesses, even if less than expectations for larger
companies.
With regard to prices, the deflationary trend under way since February 2009 lasted until the
end of the year (- 1.7% in December), even if it toned down with respect to the October peak (- 2.5%), (+ 1.4% average change in prices in 2008).
With an average annual growth rate of 8.7%, progressively accelerating (+ 10.7% in the
fourth quarter), China is now close to becoming the second leading world economy.
Activities were essentially drawn along by fixed investments (+ 30.1% over twelve months),
and private consumption (+ 15.5%). Industrial production, up on an average annual basis by 11% (+ 12.9% in 2008), disclosed a sharp pick up in the last quarter (+ 18% in tendential
terms). The positive trade balance fell to 196.1 billion (- 33.6% compared with 295.5 billion
in 2008), affected by a decrease in exports (- 16%) which was greater than that in imports (-
11.2%), but the currency reserves in any event rose to 2,400 billion dollars (+ 23.3%) of
86
88
90
92
94
96
98
100
102
1,24
1,28
1,32
1,36
1,40
1,44
1,48
1,52
1,56
J F M A M J J A S O N D
Euro-Dollar and Dollar-Yen - exchange rate - trend in 2009
€ /$ $/Yen (right scale)
Graph No.2
15
which a significant portion (around 750 billion), albeit down, was invested in US government
securities.
The Yuan, once again anchored to the value of the dollar, depreciated slightly against the
euro (2.4%), while inflation, negative on an average annual basis (- 0.7%), returned to
positive levels in the last two months (+ 1.9% in December). In order to combat the risks of speculative excesses in the property sector and limit the
exposure to this sector in the financial statements of the banks, the Chinese authorities
abolished a series of tax concessions introduced recently. Furthermore, in order to curb the
lending trend, the People’s Bank of China raised the compulsory reserve ratio of the banks
by 50 base points respectively in January and February 2010, now standing at 16.5%,
intensifying the drag of liquidity from the markets via open market operations.
The last few months of the year also marked recovery for the economies of the main
emerging countries.
In India, economic recovery went beyond expectations (+ 7.9% tendential change in GDP
during the third quarter, after + 6.1% in the three previous months), thanks to expansive monetary and tax policy conditions which supported private demand and investments.
Those who benefited in particular were industrial activities and the services sector while the
recovery in world trade encouraged exports, once again growing in November after thirteen
consecutive months of negative changes. On a parallel, inflation also picked up (7.3% in
December), supported by the price of foodstuffs.
After the three measures in January, March and April by means of which the Indian Central Bank had overall reduced the repurchase rate from 6.50% to 4.75%, the monetary policy
maintained an obliging approach, without further measures on the reference rate.
Helped by the worldwide cyclical improvement and the rise in oil and raw material prices,
the Russian economy seems to have overcome the minimum point. The most recent
estimates relating to 2009 in any event disclose a sharp drop in GDP of 7.9%: the sectors most severally affected were construction (- 16.4%), tourism (- 15.4%) and manufacturing (-
13.9%). Over the short-term, prospects remain dependent on overcoming a series of
structural difficulties: the weakness in consumption linked to the low level of incomes, the
difficulties of the banking system to disburse credit, the considerable dependence on foreign
manufacturing, the inflationary risks (10.7% in September) linked to the abundant
injections of liquidity into the system and the elevated deficit of the nation. During the year, the Russian Central Bank lowered the reference rate on a good 10 occasions, from 13% to a
record minimum of 8.75%.
Consuntivi e previsioni
(Valori percentuali)
2008 2009 2010 (1) 2008 2009 2010 (1) 2008 2009 2010 (1) 2008 2009 2010 (1) dic-08 dic-09
STATI UNITI 0,4 -2,4 1,6 3,8 -0,4 3,0 5,8 9,3 10,2 5,9 10,3 10,4 0-0,25 0-0,25
GIAPPONE -0,7 -5,0 1,0 1,4 -1,4 -0,3 4,1 5,2 5,3 2,7 5,7 6,5 0,10 0,10
AREA EURO 0,6 -4,0 1,0 3,3 0,3 1,4 7,6 9,4 10,5 2,0 6,5 7,0 2,50 1,00
ITALIA -1,3 -5,0 0,8 3,5 0,8 1,5 6,7 7,7 9,0 2,7 5,3 5,9 - -
GERMANIA 1,3 -5,0 1,5 2,8 0,2 1,4 7,3 7,5 8,3 0,0 3,6 4,9 - -
FRANCIA 0,4 -2,2 1,3 3,2 0,1 1,4 7,9 9,5 10,3 3,4 8,5 8,2 - -
SPAGNA 0,9 -3,7 -0,4 4,1 -0,3 0,9 11,4 18,2 20,0 4,1 11,1 10,4 - -
REGNO UNITO 0,5 -5,0 0,8 3,6 2,2 1,6 5,7 7,6 8,3 5,5 12,2 12,4 2,00 0,50
CINA 9,6 8,7 8,6 5,9 -0,7 2,7 4,2 4,3 n.d. n.d. n.d. n.d. 5,31 5,31
INDIA 7,4 6,5 6,0 8,4 3,6 5,9 9,1 10,7 n.d. n.d. n.d. n.d. 6,50 4,75
(1) Previsioni fonte: Prometeia e Statistiche ufficiali
PRODOTTO INTERNO
LORDO
PREZZI AL CONSUMO
(tasso medio annuo)
DISOCCUPAZIONE
(tasso medio annuo)
DISAVANZO SETTORE
PUBBLICO (% del PIL) Tassi di riferimento
In Europe, in contrast in the USA, the pick-up in economic activities still appears
uncertain: in fact, during the fourth quarter GDP increased for the period in question just 0.1% (+ 0.4% in the Summer after five consecutive drops) affected by the terrible result of
the German economy, which had stagnated after two quarters of growth, and the other main
countries with the exception of France (+ 0.6%). Overall on an average annual basis, GDP
fell 4%.
Support for activities mainly arrived from exports, aided by the gradual improvement in the
global economic cycle, while internal demand remained weak at both investment and consumption levels, also due to the withdrawal of tax incentives in various countries
16
Industrial production is showing difficulties in launching a well-defined upwards trend as
shown by the negative economic cycle change in December (- 1.7%), after + 1.4% in
November; the annual trend (- 5%) is also still negative, albeit better than in the previous
months.
One of the elements of greatest concern, shared with the other leading economies, concerns the progressive deterioration in the unemployment rate, which rose in December to 10%
(with a peak of 19.5% in Spain), from 8.2% at the end of 2008.
After five months of changes in negative prices with a minimum in July (- 0.7%), the
Consumer Price Index was once again positive in Europe as well during the last two months,
+ 0.9% in December and +1% in January 2010 (+ 0.3% average for 2009). The index not
including foodstuffs and energy products, or alcohol and tobacco, down during the first six months, subsequently remained more or less unchanged during the Summer (+ 1.1% in
December compared with + 1.8% at the end of 2008).
In consideration of the difficult market context, during the first few months of 2009 the ECB
continued with the work for supporting the economy, cutting the main refinancing rate four
times (50 bp in January and March and 25 bp in April and May), so that it fell from 2.50% at the end of 2008 to a record low of 1%. If the prospects for an improvement in the
economy should consolidate, the monetary policy approach could change in the last quarter
of 2010, in any event with a time lag with respect to that expected for the USA, where the
starting rates are much lower and the recovery expectations steadier.
As a consequence of the considerable measures achieved to re-launch growth, a heavy
deterioration in the national budgets was also witnessed in Europe. The situation in Spain, Ireland and Greece appears to be particularly critical, where the ratio between public deficit
and GDP in 2009 is estimated as much higher than 10%. Despite a greater tolerance with
regard to contained and temporary overshooting with respect to the 3% limit of the GDP,
during 2009 the European Union launched procedures for excessive deficit vis-à-vis nearly
all the countries belonging to the euro area9. In light of the alarming situation of the Greek national budget, during the first few weeks of 2010 the single-currency nations expressed
their willingness to undertake decisive and co-ordinated action, should it become necessary,
so as to ensure financial stability in the area. Greece was requested to take decisive action
and turn the budget around under the eye of the European Commission and the ECB.
With regard to Italy, the way out of the recession still seems to be far off: the cyclical improvement in the GDP during the Summer (+ 0.6%, after five consecutive quarters of
drops) was followed by a decrease between October and December (- 0.2%) mainly due to
the precarious context the industrial sector is experiencing.
On an average annual basis, the drop in GDP came to 5% (the revised figure for 2008 was
1.3%) and summarized a generalized decrease in both internal demand for consumption and investments, and in net foreign demand.
After the first few highly negative months, industrial production (de-seasonalized figures)
has still not managed to outline an ongoing trend of recovery, closing the year down (- 0.7%
with respect to November). In the comparison with December 2008, the correct index for
working days still shows a negative change (- 5.6%) albeit progressively improving. In sector-
related terms, only the “chemical” (+ 7.8%), “mining” (+ 5.6%), “foodstuff” (+ 3.6%) and “pharmaceutical” (+ 3.2%) sectors disclosed positive trends during the twelve months.
The most recent monthly surveys indicate a further increase in December in the
unemployment rate to 8.5% (over 2 million individuals), from 7% twelve months ago
(average figure for 2008 6.7%)10. The difficulties on the employment market were
particularly contained by the increased recourse to welfare support measures: after having reached a peak in February, the monthly trend in the requests for temporary unemployment
benefits became more moderate, with temporary reversals in the trend during the year,
stabilising in the last few months. During 2009, the number of temporary unemployment
benefit hours authorized in total increased by 311.4% with respect to 2008, disclosing an
absolute record since 1970, year the time series commenced.
9 On 27th April 2009 vis-à-vis France, Ireland, Greece and Spain; on 7th July vis-à-vis Malta; on 2nd December
vis-à-vis Austria, Belgium, Germany, Italy, the Netherlands, Portugal, Slovenia and Slovakia. 10 During the Autumn months, Istat also launched the disclosure of the monthly employment and unemployment
figures, bridging an information gap which penalized ours with respect to the other leading countries.
17
With regard to prices, Italy – despite reflecting the European trend – remained constantly
with higher levels of inflation, disclosing the only modest negative trend in July (- 0.1%).
Recovery in the last two months took the Harmonized Consumer Price Index to 1.1% in
December (European figure 0.9%).
On an average annual basis, inflation came to 0.8% (3.5% in 2008) compared with 0.3% in Europe.
The trade balance deficit fell considerably to 4.1 billion euro, from 11.5 billion in 2008 (-
64.2%), benefiting from the reduced deficit in the energy sector (- 18.1 billion) and a re-
found positive balance in that of intermediate products, which more than offset the
decreased surplus in consumer and accessory goods. The import (- 22%) and export (-
20.7%) trend reflects the weakness of international trade during the majority of the year. In conclusion, with regard to public finance, the first provisional estimates drawn up by
Istat confirm a net borrowing of the Public Authorities/GDP ratio and an incidence of the
public debt on GDP up consistently for 2009, respectively to 5.3% (2.7% in 2008) and to
115.8% (105.7%), mainly affected by the drop in economic activities.
In December, the EU Council therefore launched the Procedure for excessive deficits vis-à-vis Italy, requesting our country to bring the deficit under the limit of 3% of the GDP by
2012.
Financial markets
During 2009, a marked increase was observed in the slope of the nominal yield curves both in Europe and the USA, reflecting expectations of an increase in the interest rates from the
current minimum levels.
For maturities of less than 2 years, this trend was also accompanied by a downwards shift
of the curve, greater for the European rates during the first half of the year in relation to the
manoeuvres on the official rates carried out by
the ECB.
In the long part of the curve, there was by
contrast a shift upwards, more so for the USA, in expectation of a recovery in production activities,
but also due to the reflection of a progressive
normalization of the financial markets, which
relaxed the international investors’ inversion to
risk also on the basis of higher yield expectations, due to both the sharp increase in
the offer of public securities, and the possible
recovery in inflation over the medium/long-term.
The described trends therefore led to an
extension of the spread between short and long-term rates in both areas.
After a start to the year marked by heavy losses,
the equity markets of the leading industrial
economies reached a minimum point on 9th March 2009, followed by a rapid and consistent
rise which was followed by essential stability in
prices in the last quarter, mainly attributable to
the doubts regarding the effective substance of
the recovery as well as the expected decrease in
the current profits of the listed companies. In the latter part of the year, the banking sector
was among the most penalized at international
level, influenced by elements of uncertainty regarding the profitability prospects over the
medium/long-term.
18
At the end of 2009, the indexes disclosed rises of around 20% in the twelve-month period (between 50 and 70% by contrast with respect to the March minimums), what is more
insufficient for returning to the levels prior to the start of the subprime crisis (August 2007).
The recovery in share prices was much greater in the leading emerging economies: the MSCI
Emerging Market index in fact disclosed growth of 74.5% in December.
2010 began positively, but in the following weeks the fears due to the elevated level of public debt in some European countries11 led to widespread troughs.
11 In particular Greece, Ireland, Spain and Portugal.
12,000
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
26,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
J F M A M J J A S O N D
Principal share index trend in 2009
Nikkei 225
Dow Jones Industrial
FTSE Italia All - Share (right axis)
Graph No. 6
0.00 0.25 0.50 0.75 1.00 1,25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25
J F M A M J J A S O N D
Principal long and short-term interest rate trend in 2009
US Treasury 10 years Rates on Federal Funds BTP 10 years Euribor 3 months Bund 10 years ECB principal refinancing rate Usa Libor 3 months
Graph No. 5
19
These are the trends during 2009 for the main indexes, expressed in local currency, on
some of the most important financial markets: + 43.9% for New York’s Nasdaq Composite; +
23.8% for the Xetra Dax in Frankfurt; + 23.5% for the S&P 500 in New York; + 22.3% for
Paris’s Cac 40; + 22.1% for the FTSE 100 in London; + 20.3% for Tokyo’s Nikkei 225; + 19-
2% for the FTSE Italia All-Share in Milan; + 18.8% for DJ Industrial in New York; + 6.6% for the Topix in Tokyo.
The markets managed by Borsa Italiana overall disclosed recovery on an annual basis: the
main indices in fact improved by around 20 percentage points, disclosing rises of over 70%
with respect to the minimum achieved in March.
Mention should be made of the fact that on 1st June 2009, Piazza Affari’s indices migrated to the new FTSE Italia indexes12.
Volatility, particularly strong in the second and third quarter, progressively diminished as
from the last ten days of October, registering a drop at the end of December of 19
percentage points, from 30.1% to 11.1%, for the historic FTSE Italia Mib index.
Both the number of contracts (63.9 million, - 7.8%) and the overall equivalent value of the shares traded (673 billion euro, - 34.6%) fell significantly with respect to 2008. Also on a
daily average, shares traded decreased (252 thousand contracts, - 8.1%) disclosing an even
more notable drop in terms of value (2.6 billion, - 34.8%).
During 2009, the markets managed by Borsa Italiana in any event established a number of
records: new all-time highs for ETF (Exchange Traded Funds) and ETC (Exchange Traded
Commodities) trading, with 54.5 billion in value and 2.5 million contracts, and with regard to the MOT (228.9 billion and 3.5 million contracts). Record trading was also seen for the
share derivatives on the Idem, with a daily average of 168 thousand standard contracts; and
European leadership with regard to both contracts traded in electronic markets and trading
on the MOT.
At year end, the companies listed on Borsa Italiana markets came to 332, four less than twelve months earlier; new listings came to 8, only partly offsetting the 12 companies
delisted. The total capitalisation of listed companies at year end came to 457 billion euro
(30.1% of GDP), from the 375 billion at the end of 2008 (23.9% of GDP)13.
The turnover velocity14 more or less halved to 147%, from 275% in 2008, as a result of the
drop in trading in the presence of increased capitalisation.
Asset management also benefited from the generalised improvement in the financial
markets, interrupting the heavy downscaling underway since 2006 during the second
quarter. With regard to the mutual investment fund segment, the trend reversal began in
the second half of the year, partially recovering the divestments made at the start of the
year. In Italy, the open-end mutual fund business ended 2009 with net funding which remained
negative, even if with just a balance of 0.7 billion euro (- 143,7 billion in 2008), the result of
a contracting trend between Italian funds (- 12.9 billion) – which continue to be penalized
also by unfavourable tax treatment– and foreign funds (+ 12.2 billion) whose incidence in
terms of equity has now exceeded 50%. Assogestioni figures15 also disclose how the drop
has mainly effected hedge funds (- 5.5 billion) and to a more contained extent the categories of liquidity (- 0.9 billion) and balanced funds (- 0.7 billion), while the re-found liveliness of
the financial markets contributed towards sustaining flexible funds (+ 0.6 billion), and
above all else share-based (+ 3.4 billion) and bond-based funds (+ 2.4 billion).
12 The Ftse/Mib maintained the continuity of the levels of the previous S&P/Mib, as did the historic Ftse Italia Mib
(formerly the historic Mib) and the Ftse Italia Star (formerly All Stars); the Mibtel and the Midex were respectively replaced by the Ftse Italia All-Share (with a total basket of 250 securities rather than 275) and the
Ftse Italia Mid Cap (with a basket of 60 securities rather than 30). The Mib sector indexes were replaced by new sector indices created using the international ICB (Industry Classification Benchmark) method, while two new indexes were introduced: Ftse Italia Small Cap and Ftse Italia Micro Cap. The adoption of the new series of indexes is linked to the inclusion of Piazza Affari in the London Stock Exchange Group whose performances are
gauged by the indices created by the Ftse Group (Financial Times Stock Exchange), recognized worldwide and used by international investors, able to offer a structured and integrated representation of the market sectors.
13 In the calculation of the Borsa/GDP capitalisation ratio, the value of the GDP is at current prices. 14 Indicator which – placing the value of the electronic trades in relation with the capitalisation – indicates the
turnover rate of the shares. 15 “New mapping of asset management (collective management and portfolio management)” relating to the 4th quarter of 2009.
20
The revaluation of the share prices with respect to the March minimums, took the overall
assets to 435.3 billion (+ 8.1% compared with 402.7 billion at the end of 2008) disclosing a
recomposition in favour of share-based funds (up from 17% to 21.2%) and to a minor extent
flexible funds (from 13% to 13.1%), against a reduction in the portion of liquidity funds
(from 21.3% to 20%), hedge funds (from 5.3% to 3.7%), balanced funds (from 4.4% to 3.9%) and bond-based funds (from 39% to 38.1%).
The banking system
During the year, the Italian banking system was characterized by a continually steady trend
in customer deposits, even if slowing down with respect to 2008, compared with a progressive slowdown in lending activities, which reached a minimum point in October, and
a parallel deterioration in loan quality.
In the basis of the Bank of Italy surveys16, direct funding (deposits from residents and
bonds) presented an annual change of 9.3% at the end of December (+ 12.4% in December
2008), always drawn along, albeit with minor intensity, by bonds (+ 11.2%), in the face of essentially stable growth in other technical forms (+ 8%).
By contrast, with regard to loans to private sector residents, the annual trend decelerated,
reaching a minimum point in October (+ 0.1%), only to then stand at +1.7% in December (+
4.9% at the end of 2008).
Loans to households and non financial companies, up in total by 0.5%, disclose a trend which is still positive in the segment with longer maturities (+ 4%) against a reduction,
underway since July, in the segment maturing within one year (- 7.5%).
In terms of those receiving loans, the same figures show a drop for businesses (- 2.3%
compared with + 6.7% at the end of 2008) countered by an upwards trend for households (+
5.9% with respect to + 0.9% in December 2008), sustained foremost by homebuyers loans (+ 6.1%), but also by the re-found interest for different forms of consumer credit (+ 5%).
With regard to risk, non performing loans in the private sector gross of writedowns
increased on an annual basis by 42.9% (+ 48.1% those relating to businesses and + 34.4%
those pertaining to households) and 20.7% since the end of June (+ 22.4% for businesses
and + 17.9% for households). The combined effect of the afore-mentioned trend and the modest growth in loans led to an increase of more than one percentage point, from 2.70% in December 2008 to 3.80%, in the gross non performing private sector loans/private sector loans17 ratio.
Net non-performing loans, by contrast disclosed an annual increase of 66% and 36.2% since June. The net non performing loans/total loans ratio consequently came to 2.02% (1.24% at
the end of 2008), while the net non performing loans /capital and reserves ratio rose to
12.23% (7.84% at the end of 2008).
As a repercussion of the various trends which are characterising transactions with customers, securities issued by residents in Italy in the portfolio of Italian banks disclosed a
tendential increase in December of 29.5%, mainly attributable to the “other securities”
component (+ 26.4%), in particular bank bonds (which represent 72.3%), and to a residual
extent Government securities, both medium/long-term (CCT–treasury credit certificates and BTP–long-term treasury bonds, + 26.6%) and more shorter term (BOT-treasury bills and
CTZ-zero coupon treasury certificates, + 94.6%), the latter having nearly doubled. Consequently, the securities/private sector loans ratio rose to 28.3% (22.2% at the end of
2008).
Proceeding with the downwards trend under way for 14 months, at year end the average rate of bank deposits from customers18 (which includes the return on deposits, bonds and
repurchase agreements in euro for households and non financial companies) was taken to
16 Bank of Italy, Supplement to the Statistical Bulletin “Moneta e Banche”, March 2010. 17 Both non-performing loans and loans to Public Authorities are excluded from the calculation. 18 Source: ABI Monthly Outlook, February 2010.
21
1.59% (3% at the end of 2008), while the weighted average rate on loans to households and non financial companies, in line with the trend in interbank market conditions, fell
progressively to 3.76% (6.09% at the end of 2008), the lowest value ever reached.
With regard to legislation, on 10th March 2010 Italian Legislative Decree No. 21/2010 came
into force, assimilating the EU Directive No. 2007/44 concerning market communications in the event of the purchase of qualified equity investments in banks, insurance and
investment companies. On the basis of the new law, Article 19 of the Consolidated Banking
Law was partly reworded with regard to where it initially indicated 5% of the voting rights as
the limit beyond which the Bank of Italy’s authorization was necessary. More specifically:
those acquisition transactions which for any reason assign a portion of the voting rights or the share capital at least equal to 10% taking into account the shares or
holdings already possessed, or which permit the exercise of control or significant influence over the bank, will have to be submitted for the prior authorization of the
Central Bank;
additional authorization thresholds (20%, 30% and 50%) are acknowledged in the event of changes in equity investments envisaged by the directive and above which
the prior intervention of the Central Bank is triggered off, although this will however
be restricted by the criteria established by the EU in terms of financial quality of the potential purchaser and the financial solidity of the project.
22
Banco di Brescia’s Activities in 2009 Retail Market
Banco di Brescia’s Retail market has the primary objective of satisfying the financial needs
of Mass Market and Affluent customers in the Private segment and Small Business and
Public Authority customers in the Corporate Segment.
2009 was a year marked by great volatility on financial markets and the spread of the
financial crisis to the real economy, with negative consequences on businesses and the
employment market and, consequently, on households. Despite the action undertaken by
the monetary authorities and the government authorities to support the economy, the first half of the year saw great uncertainty linked to the context and the duration of the
recession; only as from the Summer months did weak signs of a reversal in the cycle
appear, following the slow improvement in the cyclical macroeconomic dynamics.
During the year, the Retail Market worked intensely to achieve the objectives set by the
budget, keeping attention towards the financial support of the local economy and households high and constant. So as to extend the Bank’s range of action, drawing the sales
network ever closer to the areas served, during 2009 4 new Business Units were started up:
one in the municipality of Brescia and 3 in Veneto (in the provinces of Vicenza, Verona and
Treviso), to support the strategic expansion activities of the Bank in the North West.
Considerable attention was dedicated to the quality of the services offered and in this connection initiatives continued dedicated to the monitoring of Customer Satisfaction, in
collaboration with the UBI Banca Contact Center and with external companies, such as
GFK Eurisko and Demoskopea.
The crisis which hit the economy during 2009, with heavy repercussion on households and
small businesses, forced the Retail Market to intensify the efforts aimed at satisfying customer needs, by means of an increasingly diversified and wider range of products.
With regard to the Private Segment, particular attention was paid to direct medium and
long-term funding and the insurance area. In the first case, the basket of Bond Issues under
placement was increased with both Floating Rate and Fixed Rate issues (the latter, with a midterm duration, were particularly appreciated by Customers). So as to expand the range
of products offered, as from the second half of 2009 the Sales network was able to place
Third-Party Bonds (ABN AMRO and Mediobanca), with a significant appeal for Customers.
By contrast, with regard to the insurance range, placement was almost entirely
concentrated on traditional Class I products, favourably received by the Customers. In order
to encourage the marketing of bancassurance products, a specific communications campaign was created.
Within the sphere of Asset Management, together with Ubi Pramerica (the Group’s asset
management company), encounters were held in all the Bank’s geographic areas, with the
Relation Managers and the Branch Managers, so as to check the possibility of partial
reconversions of the types of customer investments funds, in the event of future, gradual rises in market rates.
With reference to the e-money segment, last October a new sales proposal was launched,
entitled “Offerta Famiglia”, aimed at acquiring new customers and retaining the loyalty of
the existing ones; the product involves the sale of a bundle of payment cards (2 credit cards, 1 debt card and 1 prepaid card) with reduced subscription fees.
In December, the experimental launch of the “ZeroZeroUBI” account took place (limited to
branches in Emilia Romagna and Triveneto); this is a current account with extremely low
costs, addressing Private customers.
During the Christmas period, the commercial venture “Giovani PlayUBI” was launched,
achieved in collaboration with Mediamarket SpA, a leading retailer in Italy in the consumer electronics sector. The campaign, aimed at acquiring new, young customers (aged
between14 and 29), involved the issue of a Discount Voucher, worth 50 euro, which can be
23
spent at all the Mediaworld and Saturn sales outlets, subject to signing up for a prepaid card created ad hoc for the initiative.
In order to undertake more extensive and specific action to contrast the emerging social
difficulties and support the purchasing power of households affected by the economic crisis,
particular attention was paid to the residential Mortgage Loans sector, both with regard to flows of new disbursements and help. With regard to the latter aspect, the Bank’s
commitment took on the form of various solutions and facilities for servicing the debt. More
specifically:
by means of Mutuo Famiglie Basso Reddito, a mortgage has been made available for
the purchase of first homes by private buyers with a low income at extremely
favourable conditions;
by means of Proroga Rata, as from June 2009 and throughout the entire network,
customers in difficulty were granted the possibility of deferring the payment instalments – in addition to renegotiation services -, postponing payment until after
the last instalment; this was also allowed in the event of instalments already overdue
and unpaid. This commitment was introduced before, and now flanks, the ABI
agreement entitled “Moratoria Privati Piano Famiglia”.
Since the financial crisis has affected mortgage loan business, the decision was made to support the Network with an important collaboration agreement, signed in September 2009,
with Kiron Partner Spa, a Tecnocasa Group company, with regard to the channelling of new
borrowers toward Bank branches.
In order to encourage the sales activities of the Relation Managers, the CRM instrument was enhanced with new functions. In detail, via the Portale InAction it is now possible to
complete the following campaigns and handle the following information in an organized
manner:
Funding: analysis of the Customer’s financial position so as to propose the most
appropriate financial instruments, on the basis of MiFID profiling;
Lending: identification of the Customers with the greatest propensity towards
purchasing so as to increase the penetration of Personal Loans and Revolving Cards;
Retention: contact action aimed at those Customers who present signs of disaffection
towards the Bank and, therefore, who are subject to a high risk of abandonment;
Protection: identification of the Customers who do not possess insurance coverage
and who disclose uncovered protection needs, so as to increase the penetration of
Non-life and Health policies.
With regard to the Business Segment, within a particularly difficult economic context,
Banco di Brescia continued to support economic activities in the areas it is present in, also
by means of entering into numerous agreements with Guarantee Bodies, Chambers of
Commerce and Public Institutions active in the provinces where the Bank operates. In
detail, by means of the following agreements: “Sostegno e Sviluppo”, “ConFiducia”, “Linea Sviluppo Competitivo – 200% - Rafforzamento Patrimoniale” the intention was to support
the SMEs in difficulty and resources were made available for new production investments,
in close synergy with the Confidi (Italian collective guarantee consortiums) and the EIF
(European Investment Fund).
Contrary to the system trends, medium and long-term credit disbursements to the SMEs by
Banco di Brescia reported an increase of 5% on the previous year (half, in collaboration with
the Confidi, used to consolidate synergic relationships benefiting the local economies
concerned). Banco di Brescia also promptly signed the Mutual Notice for the suspension of
the debts of Small and Medium sized Businesses vis-à-vis the lending system (so-called
“Debt moratorium”), entered into between ABI, MEF and other associations, strongly supported and sponsored by the Public Authorities, and complied with the agreement
entered into by UBI Banca with Cassa Depositi e Prestiti (“CDP”) – thereby agreeing on the
Agreement signed between ABI and said CDP for the financing of small and medium sized
businesses. Support for businesses was also guaranteed by numerous and important
24
leasing transactions, carried out in collaboration with the Group company UBI Leasing,
dedicated to such activities, which reported an increase of 36% with respect to the previous
year.
During 2009, commercial efforts were mainly concentrated on the Small Business segment, which numbers around 50 thousand companies, divided up between SEO (small economic
operators, with sales turnover of up to 300 thousand euro) and SME (Small and medium
sized businesses, with sales turnover of between 300 thousand euro and 5 million euro);
this segment, more than large businesses, felt the negative effects of the crisis. The new
governance instruments made available to the Relation Managers encouraged the
intensification of relationships with this important customer segment and more fully supported the performance of sales campaigns. Being able to avail of IT instruments for the
identification of the customers’ macro-needs, the planning of visits, the drafting of specific
diagnostics per customer with the aid of a check-up sheet, ensured a uniform and simplified
method for sales planning. The search for synergies with Group product companies (such as
UBI Leasing, SF Consulting and UBI Assicurazioni), increases the technical consultation rate of the Relation Managers. Specifically, with the support of UBI Assicurazioni, it was
possible to complete the range of business risk coverage offered by means of the issue of the new credit protection policy “Scudo Speciale Finanziamento”. The policy can be combined
with the main technical lending forms, unsecured and mortgage-backed and applies with
regard to: 1) the payment of the instalment, in the case of temporary events such as total
temporary inability to work or hospitalization caused by accident, injury or illness; 2) the paying off of the residual debt, in the case of definitive events, such as death due to accident
or injury or permanent disability. Relationships with the customers also benefited from the
specialist measures carried out by Foreign Units, which improved the Bank’s assistance for
businesses operating on international markets.
In conclusion, it is worth remembering that the Bank, always attentive with regard to the protection and safeguarding of the environment, complied with the new Parent Company
initiative aimed at supporting – via a dedicated finance facility known as “New Energy -
Photovoltaic”- the construction of electricity generation plants, fuelled by solar energy using
photovoltaic technology.
Corporate Market
Banco di Brescia’s Corporate Market activities, in the difficult economic context which
characterized 2009, concentrated on enhancing its links with the area it operates in, being
able to count on the operations of 18 Corporate Banking Units (CBU) which co-ordinate the
activities of 110 Relation Managers, who are entrusted with more than 10 thousand business customers.
The sharp drop in turnover which affected all production sectors without distinction – with
peaks of 30% with regard to metallurgy, transport, machinery and to a lesser extent
electronics, timber, paper, textiles and clothing – had repercussions on the lending volumes, in particular with regard to the short-term segment. The trend in medium and long-term
loans, despite a context of selectivity and constant monitoring of the initiatives, especially
those pertaining to the residential segment, revealed stable volumes. During the latter part
of the year, in the face of recovery, albeit slight, in orders and turnover, the Bank reported a
good recovery on short-term loan volumes, also with transactions on Large Corporate
counterparts (companies with more than 150 million euro in turnover), capable of ensuring a good commission return, both in terms of spreads applied and channelling of the trade
flows.
The trend in funding, despite being lower than expectations in terms of volumes, is framed
within the singular economic context which characterized the whole of 2009 and which led industrial counterparts to allocate, where possible, liquidity to directly satisfy business
requirements.
Flows brokered by the foreign segment, despite being down with respect to last year (- 13%),
if placed within the related economic context, disclose satisfactory recovery in terms of
25
market shares and a greater operating selectivity which produced a minor return in
profitability terms.
In the derivatives segment, the offer was focused on hedging products: the satisfactory trend
in exchange rate hedges more than offset the slowdown of those pertaining to the rates.
Collaboration with the Group “product factories” continued with great determination and
generated satisfactory economic returns in terms of volumes traded (especially with regard
to factoring) and in terms of commission flows (above all else with reference to leasing and
medium/long-term transactions and consulting in merger and acquisition processes,
channelled on Centrobanca).
Private Market
Banco di Brescia’s Private Market activities are mainly targeted at private customers with
medium-to-high available funds, providing advisory services and solutions for the handing of their assets using a personalized and global approach. The structure has 57 bankers who
deal with around 8 thousand customers. The territorial network is mainly concentrated in
the North West (Lombardy, in particular), the North East and in Lazio.
During 2009, particular attention was paid to training activities for the bankers. In detail,
encounters were organized both with specialized outside staff and with third party companies (Black Rock, JPMorgan, Schroders) on subjects of specific interest to the market
and on current problems, and with colleagues of Group companies (for example UBI
Assicurazioni) for professional training and refresher courses. Sessions were also set up for
the bankers aimed at preparing them for the financial advisor exam and enrolment in the
related Register; meanwhile, the Sales Network was trained for the handling of problems relating to the Ter Tax Shelter. Specifically, training courses were organized with
legal/fiscal, organizational and commercial analysis for the purpose of looking more in-
depth at the framework legislation, getting to know the internal organizational/operative
processes and analyzing the Bank’s commercial range.
During February 2009, the Parent Company organized theme-based events, entitled “Time
for Excellence”, aimed at: 1) strengthening the relationships with the customers who have been with the Bank for some time, also by means of the awarding of prizes to the best
customers and 2) developing and extending the network of customers in the related areas.
The range of services dedicated to the Private Market was further developed during the year
by means of:
the launch of development activities for Proactive Consulting on Family Business asset protection (financial-real estate business), with the collaboration of UBI Private
Banking specialists;
the launch of the Pro AWA Service, which has permitted a new integrated Advisor/Banker/Customer approach, aimed at optimising the system for monitoring
the progress of the relationship and inclusive of a new method of performance
attribution of the related estate assets under an advisory contract. During 2009, the “Client Plan” application was also activated to support the sales activities
of the bankers. This instrument permits each relation manager to avail of accurate planning
of the sales action to be undertaken to support the achievement of the objectives.
With regard to the range of products offered, during the year placement activities for Third
Party Bond Issues were particularly intense, involving the Private Market networks with 11 issues. Within the sphere of dedicated products, in March 2009 activities concluded for the
issue of the first version of the Class I Specific Assets product, while during the second half
of the year, marketing of the “Black Kalia” credit card commenced.
26
Human Resources
As at 31st December 2009, there were 2,642 personnel in Banco di Brescia (including 3
employees with local work contracts at the Luxembourg branch). Given that, at year end 56
personnel had been seconded from other Group companies, while in turn Banco di Brescia
had 75 employees seconded to other Group companies, overall the Bank’s operative headcount came to 2,623.
Hires in 2009 amounted to 67, mainly concerning resources employed under fixed-term
work contracts and 15 temporary contracts to cover the Bank’s temporary staff needs.
In total, 133 employees left the Bank. There were 17 retirements, of which 6 were
incentivised under the Trade Union Agreement of 14th August 2007.
In addition to institutional training activities, addressing the most recent hires, specific
technical-specialised training was offered to personnel employed for the first time for sales
roles. The sales network staff were involved in the Training programmes regarding
bancassurance and credit training for Small Business Relations Managers. Under the “Remote training” formula, courses were made available on subjects such as Anti-money laundering, Privacy, Patti Chiari and Market Abuse. For the Training School for Group
Branch Managers, resources were chosen to participate in training sessions promoted in
collaboration with the newspaper, “Il Sole 24 Ore”.
Mention should also be made of the launch of the training activities entitled Planning and
Financial Advice for Branch Managers and Affluent and Mass Market Relations Managers. The centralisation of various functions and services - based on the Business Plan – within
the Parent Company and the process for rationalising the Central Management structures
have allowed the Bank to maintain a predominant resource allocation in the sales network.
Geographical development
As at 31st December 2009, the Bank’s distribution network was structured as follows:
362 branches (including 10 Mini branches) in 23 Italian provinces and 1 branch in Luxembourg;
10 Retail Territorial Areas (RTA);
18 Corporate Banking Units (CBU) and 13 Corporate Corners;
9 Private Banking Units (PBU) and 6 Private Corners;
8 Decentralised Decision Centres (PDC);
8 Foreign Centres.
During 2009, the licence was also obtained from the Hong Kong Monetary Authorities for
the performance of representative activities in that country.
In pursuance of the “2009 – 2011 Branch Plan” guidelines drawn up in agreement with the Parent Company in light of the new market context, steps were taken during the year to
open 4 new branches, of which one in Brescia and three in the Triveneto area.
An important event involved the UBI Banca Group’s approval, as from 25th January 2010, of
the project for optimizing the geographic coverage of the Network Banks within the sphere of
the federal model taken as reference. The project envisages the specialisation of each individual network bank by geographic area, with focus on historic areas of presence.
The project has the following aims:
assignment of more or less exclusive geographic coverage to each network bank, with an increase in the market shares and greater visibility permitted by the grouping
together of the branches present throughout the area under the reference trade
name;
simplified approach to the customers and increased commercial and lending efficacy and efficiency;
definition, together with the areas of coverage, of the areas of development of each network bank.
27
From a technical standpoint, at Group level, on 25th January 2010 around 300 branches
and 2,200 staff were transferred between Banca Regionale Europea, Banca Popolare
Commercio e Industria, Banca Popolare di Bergamo, Banco di Brescia and Banco di San
Giorgio, by means of the conferral of business segments.
Specifically, Banco di Brescia transferred 28 branches, located in the areas of Monza and Brianza, Como, Varese, Lecco, Parma, Genoa and Turin and acquired 34 units (plus 3 mini
branches) located in the provinces of Mantua, Brescia, Verona, Cremona, Lodi and Padua,
thereby becoming the Group’s reference bank for these provinces and for the whole of the
Triveneto area.
With regard to ATM and POS facilities, as at 31st December 2009 the Bank had 511 ATMs
(14 of which had specific functions for the vision-impaired), including 38 advanced Cashin/Cashout ATMs and 4,377 POS. During the first few days of January, the adaptation
of all the ATMs to the Microcircuit was concluded.
The Internal Control System Auditing of the Network
Banco di Brescia’s internal audit activities were centralised in the Macro Audit Area of the
Parent Company and UBI Banca Group based on a special representation contract. Auditing
activities are performed as detailed in the "Operating Manual", which describes operational
methods and tools, the complete catalogue of types of intervention, support work papers
and check lists, as well as related reports, constantly updated to evolve with the operating structure as well as internal and regulatory rules. The following describes the types of
activities with a brief description of the related audit objectives:
Framework analysis to evaluate the adequacy of protections implemented for inherent risks in the processes and organisational units being audited, divided into:
• Management Audit, designed to evaluate the functionality of the complete
internal control system;
• Operational Audit, designed to assess the processes and organisational units in terms of effectiveness, efficiency and reliability;
• Financial Audit, to assess the processes and organisational units inherent in
the administrative accounting system;
• Compliance Audit, to evaluate the processes’ observance of external
regulatory provisions;
• ICT Audit, to evaluate the adequacy of the IT structure;
Functional verifications on the central processes and organisational units as well as those in the sales network, aimed at determining their consistency with legal and
regulatory provisions;
Inspections, aimed at observing employee operations to prevent prejudicial events for the company;
Administrative investigations, to identify external and internal responsibility following prejudicial events for the company.
Remote checks, aimed at both ascertaining the removal of the anomalies detected during the previous checks and the stand alone examination of specific conduct
where this approach permits – in relation to the evident increased cost-saving of the measure – the cognitive completeness of the phenomena analyzed.
More specifically, the functional verifications on the sales network involve all activities that
were delegated, organized by process/activity (Credit Brokerage Process, Sales Process for
Financial Products and Investment Services; Banking Products Sales Process, Front and Back Office Operations, Management of Valuables and Safe Deposit Boxes, Physical and
Logical Security, Miscellaneous Adjustments, Operational Monitoring and Management and
Treasury).
The method adopted envisages the assignment of a rating to each operating unit inspected,
established in relation to the irregularities found for each process/activity analysed and a
summary rating. From these results, it is also possible to extrapolate a “view” of each of the external regulations that are relevant for employee operations in the sales network.
28
During 2009, a total of 210 audits were performed for the sales outlets of all markets (Retail,
Private and Corporate), of which 32 general inspections (that examine the sales network
unit in its entirety) and 178 targeted inspections (related to specific processes). The audit
results were promptly reported to the Bank’s Senior Management by the Macro Audit Area
of the Parent Company and the UBI Banca Group and were also reported on quarterly to the Board of Directors with details on support measures carried out and the related results,
regarding both the central and peripheral structures of Banco di Brescia as well as service
activities performed by UBI Banca and UBI Sistemi e Servizi. Concise and detailed
disclosure relating to the measures carried out on the sales networks was also provided
quarterly to the Parent Company’s Compliance division. These audits made it possible to
verify a generally positive situation, with a number of spheres of improvement relating to the Banking Products Sales process regarding the Retail Market. The results of the remote
audits, even if essentially positive, highlighted the appropriateness of improvement
measures for certain operating segments/aspects, such as the use of the interactive
“Control Desk” platform to be used by the branch staff tasked with line controls (Managers,
appointees), the handling of the cash reserves within the sphere of the ceilings assigned and the activities for improving the guarantees supporting credit facilities. In this connection, it
is hereby specified that, in the presence of anomalies, even during the course of the checks
the staff are made to dwell on the correct conduct to be adopted and the risks deriving from
conduct not in line with the legislative framework. Furthermore, subsequent “follow up”
action is envisaged for the purpose of ascertaining the removal of the anomalies and the re-
establishment of correct operations.
Administrative Financial Governance Model adopted in accordance with Law 262/05
Italian Law 262 of 28th December 2005 (and subsequent modifications) “Provisions to protect
savings and govern financial markets” with the inclusion in the Consolidated Finance Law of
Article 154 bis introduced the role of Manager in charge of preparing financial documents
for the company in the business organisational structure of publicly quoted companies in
Italy. The aforementioned reform proposes, among other things, to strengthen the internal
control system in relation to financial communications produced by listed companies.
UBI Banca Group is obliged to apply the new regulatory provision and for this purpose has endowed itself with an organisational and methodological framework (administrative financial governance model) that, included in a context of integrated compliance, makes it
possible to continually regulate activities inherent in the verification of adequacy and
effective application of controls related to the financial disclosure risk and consequently,
perform a proper valuation of the reference internal control system.
The adopted model also envisaged the identification of the application perimeter represented
by the companies in UBI Banca Group, as well as the accounts and processes deemed significant for producing financial information. Based on its relevance, the Bank has been
included in the project perimeter.
The audit activities performed on the adequacy and effective application of administrative
and accounting procedures for the preparation of the 2009 financial statements confirmed
the summary positive judgment on the quality and effectiveness of the Bank’s
administrative accounting internal control system. This conclusion was further supported
by specific internal statements, produced by the delegated bodies of each
company/outsourcer of the UBI Banca Group as envisaged by the “Cascading statements system” contemplated in the defined financial administrative governance model.
Based on the work performed, the Bank’s General Management will have to issue the
appropriate statement, as delegated by the Board of Directors, to the Parent Company that
contains:
statement on the veracity, completeness and conformity of the accounting entries for
balance sheet, income statement and cash flow data and supplemental information
29
of the individual financial statements provided for drawing up the consolidated
financial statements and directors’ report;
assessment of the adequacy and effective application of administrative and accounting procedures during the period.
Work environment
With regard to the adaptations pursuant to the provisions of Italian Legislative Decree No.
81 dated 9th April 2008 (Consolidated Safety Law), please refer to the section “Principal
risks and uncertainties to which the Bank is exposed”.
30
Reclassified Financial Statements
Information on the Balance Sheet and Income Statement
For the purpose of facilitating the analysis of the Bank’s economic progress and in
pursuance of Consob Communication No. DEM/6064293 dated 28th July 2006, the
reclassified statements include a specific statement for highlighting the economic impact of the main non-recurrent events and transactions – since the related equity and financial
effects are not significant – which are recapitulated below:
2009:
statutory/fiscal realignments regarding the three-year period 2005/2007;
10% reduction of IRAP (regional business tax) from IRES (company earnings’ tax);
absorption charges consequent to the merger transaction.
2008
tax freeing up of the difference between the statutory and tax balances as at 31st
December 2007; writedown of the equity investment in Hopa;
change in the approach for determining the collective adjustments on
endorsement credits;
capital loss on Lehman Bros bonds;
capital gain on disposal of the equity investment in Centrale Bilanci; absorption charges consequent to the merger transaction;
The financial statements below include the reclassified Balance Sheet and Income
Statement schedules.
31
Reclassified Balance Sheet
(in thousands of euro)
31/12/2009 31/12/2008Variazione
annua
Variazione %
annua
10. Cassa e disponibilità liquide 92.584 95.548 (2.964) (3,1)
20. Attività finanziarie detenute per la negoziazione 114.259 142.994 (28.735) (20,1)
40. Attività finanziarie disponibili per la vendita 26.339 20.319 6.020 29,6
60. Crediti verso banche 7.442.072 5.268.751 2.173.321 41,2
70. Crediti verso clientela 14.178.741 14.458.084 (279.343) (1,9)
80. Derivati di copertura 75.128 93.702 (18.574) (19,8)
90. Adeguamento di valore delle attività finanziarie oggetto di copertura generica 21.556 26.422 (4.866) (18,4)
100. Partecipazioni 16.122 16.122 - -
110. Attività materiali 297.386 302.920 (5.534) (1,8)
120. Attività immateriali 19.739 19.733 6 -
di cui: avviamento 19.705 19.705 - -
130. Attività fiscali 76.127 51.123 25.004 48,9
150. Altre attività 320.367 496.865 (176.498) (35,5)
Totale dell'attivo 22.680.420 20.992.583 1.687.837 8,0
VOCI DELL'ATTIVO
31/12/2009 31/12/2008Variazione
annua
Variazione %
annua
10. Debiti verso banche 1.370.705 1.546.932 (176.227) (11,4)
20. Debiti verso clientela 8.870.849 10.028.624 (1.157.775) (11,5)
30. Titoli in circolazione 10.300.310 7.277.284 3.023.026 41,5
40.+ 50. Passività finanziarie di negoziazione e valutate al fair value 81.138 106.579 (25.441) (23,9)
60. Derivati di copertura 51.429 50.101 1.328 2,7
80. Passività fiscali 59.174 89.513 (30.339) (33,9)
100. Altre passività 573.303 594.394 (21.091) (3,5)
110. Trattamento di fine rapporto del personale 63.808 64.922 (1.114) (1,7)
120. Fondi per rischi e oneri: 22.999 21.561 1.438 6,7
b) altri fondi 22.999 21.561 1.438 6,7
130. Riserve da valutazione 21.206 17.935 3.271 18,2
16 0 .+170 .+18 0 Capitale, sovrapprezzi di emissione e riserve 1.136.526 978.085 158.441 16,2
200. Utili d'esercizio 128.973 216.653 (87.680) (40,5)
Totale del passivo e del patrimonio netto 22.680.420 20.992.583 1.687.837 8,0
VOCI DEL PASSIVO E DEL PATRIMONIO NETTO
32
Reclassified Income Statement (in thousands of euro)
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8Va ria z io ne
a nnua
Va ria z io ne %
a nnua
10 .- 2 0 . Margine di inte res s e 353.270 482.474 (129.204) (26,8)
7 0 . Dividendi e pro venti s imili 1.699 3.838 (2.139) (55,7)
4 0 . - 5 0 . Co mmis s io ni ne tte 200.248 220.101 (19.853) (9,0)
8 0 .+ 9 0 .+10 0 .+110 . Ris ulta to ne tto de ll'a ttivita 'di nego ziazio ne e di co pertura 10.204 9.406 798 8,5
19 0 . Altri o neri/pro venti di ges tio ne 20.740 22.208 (1.468) (6,6)
P ro v e nt i o pe ra t iv i 5 8 6 .16 1 7 3 8 .0 2 7 (15 1.8 6 6 ) (2 0 ,6 )
15 0 a . Spes e per il pers o nale (164.528) (179.612) 15.084 (8,4)
15 0 b. Altre s pes e amminis tra tive (134.507) (146.061) 11.554 (7,9)
17 0 . + 18 0 . Rettifiche di va lo re ne tte s u a ttivita ' materia li e immateria li (11.627) (11.455) (172) 1,5
One ri o pe ra t iv i (3 10 .6 6 2 ) (3 3 7 .12 8 ) 2 6 .4 6 6 (7 ,9 )
R is ulta to de lla g e s t io ne o pe ra t iv a 2 7 5 .4 9 9 4 0 0 .8 9 9 (12 5 .4 0 0 ) (3 1,3 )
13 0 a . Rettifiche /Ripres e di va lo re ne tte per de terio ramento di c rediti (69.220) (70.490) 1.270 (1,8)
13 0 b. + c .+d. Rettifiche /Ripres e di va lo re ne tte per de terio ramento di a ltre a ttivita '/pas s ivita ' (1.348) (4.162) 2.814 (67,6)
16 0 . Accanto namenti ne tti a i fo ndi per ris chi ed o neri (3.258) (2.028) (1.230) 60,7
2 10 . + 2 4 0 . Utile /perdite de lla ces s io ne di inves timenti e partec ipazio ni (76) 1.044 (1.120) n.s .
Utile / pe rdita de lla o pe ra t iv ita ' c o rre nte a l lo rdo im po s te 2 0 1.5 9 7 3 2 5 .2 6 3 (12 3 .6 6 6 ) (3 8 ,0 )
2 6 0 . Impo s te s ul reddito d'es erc izio de ll'o pera tivita ' co rrente (71.893) (101.836) 29.943 (29,4)
Oneri di integrazio ne (732) (6.775) 6.043 (89,2)
di cui: s pes e per il pers o nale (597) (3.342) 2.745 (82,1)
altre s pes e am m inis trative - (6.089) 6.089 -
re ttifiche di valo re ne tte s u attiv ità m ateriali e im m ateriali (441) (342) (99) 28,9
im po s te 306 2.998 (2.692) (89,8)
2 9 0 . Ut ile d'e s e rc iz io 12 8 .9 7 3 2 16 .6 5 3 (8 7 .6 8 0 ) (4 0 ,5 )
VOC I D EL C ON TO EC ON OM IC O
Methodology for drawing up the reclassified Income Statement
Principal reclassification rules:
• the overdraft commission recorded under item 10 - 20 “Net interest income” (15,503 thousand euro as at 31st December 2009 and 30,543 thousand euro as at 31st December 2008) has been reclassified in the item 40 - 50 “Net commission”;
• recoveries of taxes entered in item 190 “Other net operating income/(expense)” (23,491 thousand euro as at 31st December 2009 and
24,625 thousand euro as at 31st December 2008) are reclassified reducing indirect taxes included in other administrative expenses;
• the item “Net adjustments on tangible and intangible assets” include items 170 and 180 of the financial statements and the amortisation charges for costs incurred for leasehold improvements (963 thousand euro as at 31st December 2009 and 1,184 thousand
euro as at 31st December 2008) classified under item 190 of the mandatory format;
• the “Other operating income/(expense)” item includes item 190, net of the aforementioned reclassifications.
33
Reclassified Income Statement Net of the Main Non Recurring Components
(in thousands of euro)
Riallineamento
fiscalità "FTA"
Rimborso IRAP
anni 2004-2007
Oneri di
integrazione
Affrancamento
"Quadro EC"
Svalutazione
HOPA
Ripresa
crediti di
firma
Minusvalenza
Obbligazioni
Lehman Bros
Plusvalenza
cessione
Centrale
Bilanci
Oneri di
integrazione
10.- 20. Margine di interesse 353.270 353.270 482.474 482.474 (129.204) (26,8)
70. Dividendi e proventi simili 1.699 1.699 3.838 3.838 (2.139) (55,7)
40. - 50. Commissioni nette 200.248 200.248 220.101 220.101 (19.853) (9,0)
80.+ 90.+100.+110.Risultato netto dell'attivita'di negoziazione e di copertura 10.204 10.204 9.406 5.130 (13.873) 663 9.541 n.s.
190. Altri oneri/proventi di gestione 20.740 20.740 22.208 22.208 (1.468) (6,6)
Proventi operativi 586.161 - - - 586.161 738.027 - - 5.130 (13.873) - 729.284 (143.123) (19,6)
150a. Spese per il personale (164.528) (164.528) (179.612) (179.612) 15.084 (8,4)
150b. Altre spese amministrative (134.507) (134.507) (146.061) (146.061) 11.554 (7,9)
170. + 180. Rettifiche di valore nette su attivita' materiali e immateriali (11.627) (11.627) (11.455) (11.455) (172) 1,5
Oneri operativi (310.662) - - - (310.662) (337.128) - - - - - (337.128) 26.466 (7,9)
Risultato della gestione operativa 275.499 - - - 275.499 400.899 - - 5.130 (13.873) - 392.156 (116.657) (29,7)
130a. Rettifiche/Riprese di valore nette per deterioramento di crediti (69.220) (69.220) (70.490) (70.490) 1.270 (1,8)
130b. + c.+d. Rettifiche/Riprese di valore nette per deterioramento di altre attivita'/passivita' (1.348) (1.348) (4.162) 6.432 (2.102) 168 (1.516) n.s.
160. Accantonamenti netti ai fondi per rischi ed oneri (3.258) (3.258) (2.028) (2.028) (1.230) 60,7
210. + 240. Utile/perdite della cessione di investimenti e partecipazioni (76) (76) 1.044 1.044 (1.120) n.s.
Utile/perdita della operativita' corrente al lordo imposte 201.597 - - - 201.597 325.263 - 6.432 (2.102) 5.130 (13.873) - 320.850 (119.253) (37,2)
260. Imposte sul reddito d'esercizio dell'operativita' corrente (71.893) (2.767) (3.118) (77.779) (101.836) (16.057) 578 (1.658) 859 (118.114) 40.335 (34,1)
Oneri di integrazione (732) - - 732 - (6.775) - - - - - 6.775 - - -
di cui: spese per il personale (597) 597 - (3.342) 3.342 - - -
altre spese amministrative - - - (6.089) 6.089 - - -
rettifiche di valore nette su attività materiali e immateriali (441) 441 - (342) 342 - - -
imposte 306 (306) - 2.998 (2.998) - - -
290. Utile d'esercizio 128.973 (2.767) (3.118) 732 123.819 216.653 (16.057) 6.432 (1.524) 3.472 (13.014) 6.775 202.737 (78.918) (38,9)
variazione
% 31/12/2008 variazione
Componenti non ricorrenti
31/12/2008
al netto delle
componenti non
ricorrenti
VOCI DEL CONTO ECONOMICO 31/12/2009
Componenti non ricorrenti
31/12/2009
al netto delle
componenti
non ricorrenti
34
Information on the Reclassified Balance Sheet
Net interbank position
The interbank balance, net of repurchase agreement transactions with the Parent Company
against funding in customer repurchase agreements, disclosed a significant increase, rising
from 1,941 million to 5,708 million euro. The change is essentially attributable to the
investment of the liquidity deriving from new issues of Certificates of Deposit and Euro Commercial Papers for 3,945 million euro.
(in thousands of euro)
A s s o lute %
C re dit i v e rs o ba nc he 7 .4 4 2 .0 7 2 5 .2 6 8 .7 5 1 2 .17 3 .3 2 1 4 1,2
D e bit i v e rs o ba nc he 1.3 7 0 .7 0 5 1.5 4 6 .9 3 2 (17 6 .2 2 7 ) (11,4 )
P OS IZIONE INTER B A NCA R IA NETTA 6.071.367 3.721.819 2.349.548 63,1
(-) P ro nti co ntro termine a ttivi (363.323) (1.780.901) 1.417.578 (79,6)
P OS IZION E IN TER B A N C A R IA N ETTA 5 .7 0 8 .0 4 4 1.9 4 0 .9 18 3 .7 6 7 .12 6 n.s .
Va r. dic e m bre '0 9 / dic e m bre '0 83 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Loans to customers
Loans to customers amounted to 14,179 million euro, down (- 1.9%) with respect to the
balance at the end of 2008.
Mortgage loans, which represent 59.4% of total loans, disclosed an increase of 4%, while other short-term technical forms, net of impaired assets, reported a drop of 9.5%.
Cash loans situation as at 31st December 2009 (in thousands of euro)
Tipo lo g ie e s po s iz io ni/ v a lo riEs po s iz io ne
lo rda
R e tt if ic he di
v a lo re
c o m ple s s iv e
Es po s iz io ne
ne t ta
a) So fferenze 268.590 136.315 132.275
b) Incagli 280.583 29.794 250.789
c) Es po s izio ni ris truttura te 81.134 8.210 72.924
d) Es po s izio ni s cadute 77.447 1.439 76.008
To tale crediti de terio rati 707.754 175.758 531.996
e) Crediti in Bo nis 13.697.109 50.364 13.646.745
TOTA LE 14 .4 0 4 .8 6 3 2 2 6 .12 2 14 .17 8 .7 4 1
The Bank’s net impaired loans amounted to 532 million euro, disclosing significant growth
with respect to 31st December 2008, symptomatic of the difficult market context and the tendential increase in credit risk.
Specifically:
net non performing loans, equal to 132 million euro, increased 22.1% from the
previous year; the ratio to total loans is 0.93%;
impaired loans increased from 88.6 to 250.8 million euro and restructured loans
grew from 61.8 to 72.9 million euro. past due positions rose from 28.4 to 76 million euro. The 2009 figure includes 55.5
million euro of amounts past due between 90 and 180 days relating to exposures
guaranteed by properties reclassified under impaired amounts as envisaged by the
supervisory legislation for Banks which carry out prudent reporting as per the
standard method;
35
The level of hedging for non-performing loans came to 50.75%, down with respect to the
same figure at the end of 2008, just as the level of hedging for impaired loans dropped from
21% to 10.6%.
The Bank’s generic reserve (50.4 million euro) presented a hedge level for performing loans
of 0.37%, compared to the 0.34% at the end of 2008.
Financial assets .
As at 31st December 2009, financial assets amounted to 237.3 million euro, against 283.4
million euro at the end of 2008. The individual components showed the following changes:
“Financial assets held for trading” totalled 114,259 million euro, down 20.1% and
represent the positive fair value of the trading derivatives;
“Available-for-sale financial assets” rose from 20.3 to 26.3 million euro. The
increase was attributable to the fair value valuation of the equity investment held
in Intesa S.Paolo (3.1 million euro), the acquisition of shares and/or investment
financial instruments deriving from the total or partial conversion of the cash
exposures following the restructuring of loans to customers (2.3 million euro);
“Hedging derivatives” fell from 93.7 to 75.1 million euro; The “Fair value change of macro-hedged financial assets” was positive for 21.5
million euro; it represents the fair value of loans to customers included under
macrohedging.
Funding from customers
Customer assets under administration as at 31st December 2009, amounted to 40,037
million euro, down (- 1.7) with respect to the end of 2008.
Assets under administration (in thousands of euro)
A s s o lute %
Racco lta dire tta da c liente la 19.171.160 17.305.908 1.865.252 10,8
Racco lta indire tta da c liente la 20.866.197 23.413.862 (2.547.665) (10,9)
di cui: R is parm io ges tito 9.923.795 9.199.896 723.899 7,9
TOTA LE M EZZI A M M IN IS TR A TI C LIEN TELA 4 0 .0 3 7 .3 5 7 4 0 .7 19 .7 7 0 (6 8 2 .4 13 ) (1,7 )
Va r. dic e m bre '0 9 / dic e m bre '0 83 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Direct funding
The balance of direct funding came to 19,171 million euro, 10.8% more than the value at
the end of 2008.
Amounts due to customers, 8,871 million euro, decreased 11.5%. The decrease was mainly attributable to repurchase agreements (- 79%), while current accounts and unrestricted
deposits reported growth of 5%.
Securities issued, totalling 10,300 million euro, disclosed an increase of 41.5%, due
essentially to Certificates of Deposit and Euro Commercial Papers issued by the foreign
branch (+ 3,558 million compared with 2008). It should be recalled that this accounting group includes around 1,380 million euro in bonds subscribed by the Parent Company for
achieving structural balance.
36
Indirect funding (in thousands of euro)
A s s o lute %
- In amminis trazio ne 6 .8 12 .19 0 47,9 6 .17 8 .8 3 6 46,8 6 3 3 .3 5 4 10,3
- Ris parmio ges tito 7 .4 13 .0 2 8 52,1 7 .0 2 7 .18 4 53,2 3 8 5 .8 4 4 5,5
Ges tio ni di P atrim o ni M o biliari 1.224.147 8,6 1.203.685 9,1 20.462 1,7
Fo ndi Co m uni di inves tim ento e S icav 3.141.826 22,1 2.930.444 22,2 211.382 7,2
P ro do tti as s icurativ i 3.047.055 21,4 2.893.055 21,9 154.000 5,3
C LIEN TELA P R IVA TA 14 .2 2 5 .2 18 100,0 13 .2 0 6 .0 2 0 100,0 1.0 19 .19 8 7,7
- In amminis trazio ne 4.130.212 62,2 8.035.130 78,7 (3.904.918) (48,6)
- Ris parmio ges tito 2.510.767 37,8 2.172.712 21,3 338.055 15,6
C LIEN TELA IS TITUZION A LE 6 .6 4 0 .9 7 9 100,0 10 .2 0 7 .8 4 2 100,0 (3 .5 6 6 .8 6 3 ) (34,9)
TOTA LE R A C C OLTA IN D IR ETTA 2 0 .8 6 6 .19 7 2 3 .4 13 .8 6 2 (2 .5 4 7 .6 6 5 ) (10,9)
3 1/ 12 / 2 0 0 9
A
Inc ide nza
%
Va ria z io ne A / BInc ide nza
%
3 1/ 12 / 2 0 0 8
B
As at 31st December 2009, total indirect funding, at market values, came to 20,866 million
euro, an 10.9% decrease compared to the end of 2008.
With reference to private customers, growth was essentially attributable to the administered
savings influenced by the contribution of bonds, subordinated and otherwise, issued by the Parent Company, for a total nominal value of 280.4 million euro. Managed savings were also
up (+ 5.5%), totalling 7,413 million euro.
Insurance products came to 3,047 million euro, involving an increase of 5.3% with respect
to the 2008 year end figure.
The institutional customer component disclosed a decrease of 34.9%.
Shareholders’ equity
For greater disclosure detail, please refer to the specific “Statement of changes in
shareholders’ equity”.
37
Information on the Reclassified Income Statement
The net interest margin as at 31st December 2009 amounted to 353.3 million euro,
disclosing a decrease of 26.8% compared with the corresponding value in the previous year,
due essentially to the reduction in the spread on rates.
Dividends came to 1.6 million euro, compared with 3.8 million last year. The reduction is attributable to the lack of dividends from Intesa S. Paolo.
Net commission amounted to 200.2 million euro, down 9% with respect to 31st December
2008. Specifically, the decrease concerned the commission relating to the managed savings
segment, partly offset by the favourable performance of administered savings thanks to the Parent Company’s bond placement activities (6.7 million) and bonds of third parties (7.7
million). Commission on current accounts, inclusive of overdraft commission, also disclosed
a decrease of 7.6%.
Trading and hedging activities produced a positive result of 10 million euro, compared to 9.4
million euro in the previous year. The item can be divided as follows (values in thousands of euro):
31/12/2009 31/12/2008
- Net profit (loss) from trading (*) 5,514 3,240 - Net profit (loss) from hedging (**) 4,338 (8,737)
- Profit from sale/repurchase of financial liabilities and loans
(***) 352 14,903
10,204 9,406
(*) Net profit (loss) from trading was positively affected by the valuation of the trading derivatives. The 2008 figure
included a capital loss of 5.1 million, on Lehman Securities held in the portfolio of the foreign branch. (**) The 2009 figure was primarily influenced by the positive result of hedge accounting on bond issues.
(***) The 2009 figure included 486 thousand euro by way of the price adjustment on the sale of the shareholding in
Centrale Bilanci, sold in 2008 at a profit of 13,873 thousand euro.
Other operating income/expense amounts to 20.7 million euro, down 6.6% with respect to
the previous year. It should be recalled that the item “other operating income”, as at 31st December 2008, included the recovery for around 5 million, by a number of Group banks, of
the charges incurred to support the IT migration (staff costs for 4.3 million euro and other
administrative expenses for around 717 thousand euro).
Following these changes, operating income came to 586 million euro, disclosing a decrease
of 20.6% with respect to the same balance as at 31st December of the prior year.
With regard to costs, “Staff costs” amounted to 164.5 million euro, down 8.4%. The
reduction is mainly attributable to the lower provisions for the company bonus and the
incentive system and the evolution of the workforce (- 57 average resources). “Other
administrative expenses”, totalling 134.5 million euro, were down with respect to the same balance last year (- 7.9%) and include around 1.1 million euro in costs relating to the new
securitization transaction. It should also be mentioned that the 2009 figure included the
negative impact of the Group VAT, equating to around 2.8 million euro, as more fully
specified at the bottom of the table “other administrative expenses: composition”. Net of this
effect, the item would have reported a drop of 9.8%.
Impairment adjustments on tangible and intangible assets came to around 11.6 million
euro.
38
Total operating costs were 310.7 million, a 7.9% decrease on the same period in 2008. The
cost/income ratio, calculated comparing operating costs and income, deteriorated from
45.7% to 53%.
Following the above changes, the net operating income came to 275.5 million euro, down 31.3% when compared with December 2008.
Net adjustments/value recoveries due to impairment on loans were down 1.8%, passing
from 70.5 to 69.2 million euro. The cost of credit came to 0.49%.
Net adjustments/value recoveries due to impairment of other assets/liabilities, disclosed a negative balance of 1.3 million euro. They include the valuation of endorsement credits,
which amounted to 1,035 million euro involving a level of coverage of 0.36%, and the
valuation of the commitments, which amounted to 275.1 million euro with a level of
coverage of 0.07%. The 2008 figure included a permanent impairment adjustment
amounting to around 6.4 million euro (included under non-recurrent components) relating to the equity investment held in Hopa. In addition, again in 2008,, the calculation method
for writedowns on endorsement credits was aligned with that used for performing cash
loans, revealing a value recovery of 2.1 million euro (non-recurring event).
Net provisions for liabilities and charges amounted to 3.3 million euro. The most significant
change is attributable to the additional provisions for legal action relating to compound interest and financial investments in Argentine bonds.
Profit /(loss) on continuing operations before tax amounted to 201.6 million euro, compared
with 325.3 million euro last year.
Taxes came to 71.9 million euro and include the positive impacts deriving from the
application of tax provisions, as detailed in the Accounting policies – Section 4 Other
aspects – Forfeit deductibility of IRAP Credit and in the “Statement of non recurrent items”.
Merger expenses, non-current items, as at 31st December 2009 totalled 0.7 million euro, net
of the related taxation. As at 31st December 2008, they amounted to 6.8 million euro, net of related taxes, and primarily consisted of staff expenses for around 2.4 million euro and
other administrative expenses of around 4.1 million euro, the latter related to the
extraordinary payment to UBI.S for updating the IT systems.
Profit for the period came to 129 million euro.
*****
39
Research and Development Activities
The main project-related lines developed during 2009 by the Innovation and Architecture Design Department of the IT Systems Division have been summarized below. In some cases
these are projects which, despite not originating from specific business needs, identify
developmental opportunities for the IT system benefiting the efficiency and greater efficacy
of the business processes, also in dealings with customers.
As part of the “unified communication” project (integration between telephone and workstation-PC), already launched in 2008, on a parallel with the progressive activation of
the Voip19 platform, on the Parent Company and Network Banks perimeter, development
activities continued for the added value services which will exploit this platform.
With regard to search engines, an assessment was carried out on the two types of engines present on the market, statistical and semantic: the first are ideal for the optimization of the
searches made in general spheres; the second are suitable for more specialized research
methods close to natural language. The consequent development activities within an
applicative sphere, have been targeted on the “Legislation” and “Help Desk” business
sectors.
With regard to videoconference systems – already widely used within the UBI Group with
more than 150 facilities installed – with a view to further increasing their use and improving
the efficacy of the communication, it was considered advisable, on a parallel with the
progressive extensive of the number of facilities, to improve the quality thereof with the
introduction of high definition solutions. In addition to this, the integration of the
videoconference technology within the same workstation (PC) was tested, for adoption on a wide scale. The proposal was particularly interesting for the Central and Territorial Divisions
of the individual network banks, representing both a valid instrument for supporting the
decision-making process and the sharing of the information, and a qualifying factor for the
reduction of costs and risks associated with moving people around.
Within the sphere of a constant commitment for identifying solutions aimed at improving
the relationship of the Network Banks with the customers, a project has been launched
entitled “new workstation”, which envisaged the adoption of an innovation user interface
aimed at the simplification and efficiency of the activities, thanks above all else to the
guiding of the business process. The first application context will concern the disbursing of
mortgage loans to retail customers and in this sphere the activation of a document management platform is also envisaged, able to convert paper documentation into paperless
documents.
In the multichannel sector, new technologies and instruments have been explored – based
for example on Virtual Assistant systems, semantic searches and recognition of the natural
language – potentially includable in the various channels for access to customer
instructions (Internet and cell phone) so as to facilitate interactivity.
In conclusion, with regard to central departmental technological architecture, on a
consistent basis with the strategic direction regarding new technologies assessment,
analysis was carried out on the market scenario and the main development trends in the
sector so as to identify an architecture and a platform which, ensuring the same level of
service as the current infrastructure, should introduce significant economic benefits. The final solution took on the form of adoption, from as early as 2009, of open operating systems
and standard market hardware with an improved cost/performance ratio.
19 Technology which makes it possible to make telephone calls using an Internet connection.
40
Contractual Relationships with Group Companies In compliance with Circular No. 262 of 22nd December 2005 issued by the Bank of Italy, Ist
up-date dated 18th November 2009, the commentary regarding relationships with Group
companies and related parties has been included in the Notes, Part H, to which the reader should refer.
41
Other Information
Article of Association amendments
During the year, Article of Association amendments were resolved, aimed at assimilating the
provisions contained in the Bank of Italy Instruction dated 4th March 2008 regarding the organization of the corporate governance of Banks. The provisions in question were issued
with the explicit intention of enhancing the minimum organization and corporate
governance standards and laying down principals and applicative guidelines which are able
to ensure the creation of effective organizational and corporate governance set-ups and in which “the distinction between the roles and the responsibilities is clear”, and the “balancing
of the powers, the balanced composition of the Bodies, the efficacy of the controls, the overseeing of all the business risks, and the adequacy of the information flows” is
guaranteed, being essential elements for the pursuit of the corporate objectives and for
ensuring sound and prudent management conditions.
The Parent Company has also taken steps to draw up the Corporate Governance Project
referring to UBI Banca and all the Group banks, in compliance with the Supervisory
Provisions regarding the organization and corporate governance of banks, and to forward the same to the Bank of Italy.
With reference to the Article of Association amendments consequent to the “Territorial
Optimization Project”, reference should be made to the matters indicated in the specific
paragraph.
Information on own shares and those of Parent Companies as per Article 2428 of the Italian Civil Code.
The Bank has not purchased or sold own shares, nor purchased or sold those of the Parent
Company, and as at the end of the period, there are no own shares or Parent Company
shares in the portfolio.
Tax aspects:
Tax shelter
An amnesty measure has been introduced for the irregular holding abroad (as at 31st
December 2008) of any asset capable of producing income such as for example financial or
real estate property assets. The period envisaged for availing of the measures has been
established as running from 15 September 2009 until 15 December 2009, moreover indirectly extended until 31 December 2010 should “impedimental causes” exist in relation
to the conclusion of the emergence operation, in any event to be carried out by 15
December.
This meant that the tax payers who are the recipients of the measure, typically individuals
or equivalent parties from a tax point of view, had to pay over the substitute tax of 5% by
the date indicated above with the commitment to conclude the repatriation, “repatriation” or regularization transaction, by the following 31st December 2010. The typical impedimental
causes which taxpayers have come across are attributable to the existence of complex
foreign financial structures or the incompatibility/penalization of certain financial
instruments held abroad with Italian tax norms. With respect to previous similar amnesties,
the “repatriation” of properties, valuables, works of art, etc. has revealed itself to be completely innovative leading to the solution of complex aspects of a contractual nature.
Towards the end of the year, the Government issued Italian Decree Law No. 194 dated 30th
December 2009 by means of which the amnesty was re-proposed as from 30th December
2009 until 30th April 2010. The substitute tax, without prejudice to the other aspects, was
raised from 5% to 6% if the emergence takes place by 28th February or to 7% if it occurs by
30th April 2010. The extended deadline of 31st December 2010 is unaffected, in the presence of impedimental causes which prevent finalization at the time of presentation of
the declaration. It should be pointed out that the legislative impact contained in Article 13 bis of Italian
Legislative Decree No. 78/2009 has been progressively subject to legislative and/or
interpretative extensions which have forced the intermediaries to carry out frequent reviews
42
of their procedures. For example, mention is made of the extension of the Amnesty to the
holding of equity investments in tax havens (CFC) or, as already mentioned previously, to
real estate property companies (SCI).
Having revealed the central role of the intermediaries in the implementation of this
legislation, the Group made its financial assistance, legal and tax advice structures available to customers, also organizing conventions on the subject and encounters with the
professional bodies.
Tax limits on the writedown of new loans
The discipline of the deduction for IRES purposes of the writedown of customer loans has
been supplemented envisaging, only for new loans disbursed as from 1 July 2009 which
exceed the average of the previous two-year period, a raising of the portion deductible
during the year, which passes from the ordinary 0.30% to 0.50%, as well as the reduction of
the tax deduction timescale for the possible excess with respect to the percentage threshold from 18 years to 9 years (Article 106.3 bis of the ITCA).
The provision does not appear easy to apply, given the lack of co-ordination between the
ordinary deductibility of the writedown of the loans (Article 106.3 ITCA) and the new
provision indicated above, which uses legislative expressions not coinciding with those used
for the ordinary writedown. As things stand, this prevents not only an estimate of the
economic-financial effects of this legislation on the period under way but the same application of the provision.
In this connection, it must be pointed out that the Trade Association is currently involved in
intense negotiation with the Legislator for the purpose of more generally aligning the tax
discipline of loan writedowns to the standards of other EU countries. Besides the applicative
complexity described above, what is more within the sphere of the IAS/IFRS accounting
standards, Italian legislation creates a significant amount of deferred tax assets over extensive timescales – i.e. 18 accounting periods.
Intergroup VAT
As is known, as from 1st January 2009, Article 10.2 of Italian Presidential Decree No.
633/72 is fully operative making, under specific conditions, the provision of services rendered by consortiums and consortium companies in favour of their members exempt
from VAT. As from the same date, Article 6 of Italian Law No. 133/99 was repealed which
made all the services rendered within the sphere of the ancillary activities between parties of
the same banking Group exempt from VAT on a general basis. Within this changed
scenario, the Group has transformed the investee company UBISS into a consortium
company so as to make a series of mainly IT and administrative services provided by the same in favour of other Group companies exempt. Given the federal structure of the UBI
Group, significant penalization however remains, in terms of the taxability of the fees due,
on a wide range of services provided by the Parent Company.
Despite the positive openings regarding the activities of the consortium members and the
type of members which the Inland Revenue has specified by means of Circular No. 23 dated 8th May 2009, the need remains for banking and insurance groups and in general all the
companies for a prompt assimilation in the Italian legal system as well of the so-called
single Group VAT Number which would therefore exempt the transactions between parties
belonging to the same Group from taxation.
Calculation of income for IAS parties By means of the issue of Italian Decree No. 48 dated 1st April 2009, the issue of the norms
amending/supplementing the Income Tax Consolidation Act was completed for IAS parties
already launched by means of Italian Law No. 244 dated 24 December 2007 and
subsequently integrated by Italian Decree Law No. 185/2008 where methods are envisaged
to be used to carry out the statutory/tax realignment of the financial statement items also in relation to extraordinary transactions.
More specifically, the legislation envisaged the possibility of realigning the various
statutory/tax values regarding the three-year period 2005/2007 consequent to the differing
legislation previously in force by means of paying a substitute tax.
Such realignments concerned the assets/liabilities consequent to:
43
a) extraordinary transactions (mergers, spin-offs, conferrals, etc.);
b) ordinary operations.
In case b), the realignment of all the types with payment of taxes at an ordinary rate, or of
individual types at the discretion of the taxpayer with payment of a substitute tax
(IRES/IRAP) of 16%, is permitted. While the portion referable to the extraordinary transactions had already been reported in
the 2008 financial statements (as indicated therein), with regard to the ordinary activities
the Group deemed it appropriate, also due to the organizational/administrative
repercussions which make it possible to eliminate the so-called dual approach, to make
specific realignments with regard to the following cases:
- misalignments as at 1st January 2009 deriving from first-time application of the IAS standards (so-called First time adoption);
- misalignments as at 1st January 2009 deriving from the full application of the
IAS/IFRS standards which would not have been produced if the new tax provisions
had been applied, as introduced by the previous 2008 Finance Bill.
As a result of this option – exercised on 16th June 2009 in pursuance of Article 15 of Italian Decree Law No. 185/2008, in concurrence with the balance payment of the taxes for 2008 –
taxes for 3.3 million were paid over and at the same time 6.1 million euro already recorded
as deferred assets/liabilities with a new positive effect of 2.8 million euro, were freed up,
matching the income statement balance.
It should be emphasised how, further to the afore-mentioned amendments, the current tax
system for IAS parties is centred, both for IRES and IRAP purposes, on the so-called “principle of derivation” of the financial statements result drawn up according to the
international accounting standards. As of the date of these financial statements, the tax
authorities have however not yet issued the awaited circular illustrative of the entire matter
thereby rendering the determination of the taxable amount complex and somewhat
uncertain also within the context of the checks which will be dealt with further on.
Forfeit deductibility of the IRAP credit
Italian Decree Law No. 185/2008 (so-called “Anti-crisis decree”) introduced the forfeit
deductibility of 10% of IRAP for IRES purposes, as from the 2008 tax period. The measures
in question also envisaged the retroactive application of this deductibility to the tax periods
between 2004 and 2007. By contrast, with regard to the 2008 tax period, account had already been taken of the
benefit of the IRAP deductibility at the time of payment of the IRES balance; for the previous
yearly periods, specific rebate applications have been sent on-line, via the Parent Company
UBI.
With reference to each tax period, the Bank is due the rebate of the additional IRES and thus also in the presence of a tax loss: in this case, the additional loss generated is
calculated as a decrease to the income relating to the first useful tax period falling
subsequently.
With regard to the yearly periods of compliance with the tax consolidation scheme, the
rebate amount requested – given that it refers to the total income from tax consolidation –
will be paid to the consolidating body UBI who will subsequently take steps to allocate to the individual consolidated companies the amount due in relation to the individual profits
recalculated. Vice versa, for the yearly period not included in the tax consolidation, the
rebate will be paid directly to the individual applicant companies.
This said, it should be noted that the total amount requested for rebate on-line for the
previous tax periods 2004-2007 totals 3,118 thousand euro. The total amount is, for the individual periods, divided up as follows:
• 2004 615 thousand euro;
• 2005 615 thousand euro;
• 2006 898 thousand euro;
• 2007 990 thousand euro.
Given that the rebates will be made by the Inland Revenue within the expenditure limits
established by the Anti-crisis decree (in order words 100 million euro in 2009, 500 million
euro in 2010 and 400 million euro in 2011), at present rebate of the receivables in question
44
is believed presumable even if this may occur on an instalment basis and over a relatively
long timescale.
From an accounting point of view, in the financial statements as at 31st December 2009,
steps were taken to record a receivable for an amount equal to the entire amount indicated
above matching the registration of lower taxes for the year.
Tax disputes
During 2009, the Inland Revenue – Lombardy Regional Headquarters – Large Taxpayers
Office, started the tax assessment for the 2006 tax year with regard to IRES and IRAP. This
assessment concluded with the notification of the customary tax audit report on findings
(so-called P.V.C.). This document contains findings – essentially attributable to the re-quantification of the
receivable writedown deductible for tax purposes and an alleged omitted application of
withholdings by way of substitute tax on interest paid by Banco di Brescia via its branch in
Luxembourg to Banca Lombarda Preferred Capital Company LLC, within the sphere of the
so-called “preference share” transaction, aimed at increasing the supervisory capital – claiming additional taxation for a total of 3.6 million euro, gross of the tax realignment of
section E/C, an amount which drops to around 2.6 million euro net of said realignment.
The Bank therefore made its observations in this connection, as envisaged by the Articles of
Association of the taxpayer (Law No. 212/2000), arguing against the findings as per the
afore-mentioned P.V.C., and despite this the Lombardy D.R.E. in any event served a notice
of assessment on 22nd December 2009, for the 2004 tax year, which fully acknowledges the findings as per the P.V.C. with regard to the alleged omitted application of withholdings, in
relation to the interest paid in 2004. A prompt appeal has been made against this notice of
assessment to the competent Provincial Tax Tribunal. The provision against the estimated
risk, with reference to the findings concerning the receivables segment, amounts to 1.25
million euro. In any event, it is hereby disclosed that Banco di Brescia’s 2006 financial statements were
drawn up according to the IAS/IFRS standards, without at the time having adequate
indications with regard to the tax significance of the ISA compliant accounting-reporting
entries. These indications were received first of all under Italian Law No. 244/2007 (2008
Finance Bill) which stressed the principle of derivation of the taxable income for IRES
purposes from the financial statement result for IAS adopter parties, and then under implementing Italian Ministerial Decree No. 48/2009, also foreseeing the validity of this
emphasized derivation also for the tax period prior to 2008 (Article 1.61 of Italian Law No.
244/2007).
On 29th May 2009, a notice of assessment was served – following the assessment already
concluded in previous years relating to 2004 with regard to IRES, IRAP, and VAT – claiming additional IRES and IRAP for a total of approximately 1.7 million euro, where the principal
finding concerns the alleged violation of the accruals principle of an economic element. This
request is covered by suitable provisions made in previous years.
Also in relation to this notice of assessment, the Bank has promptly presented an appeal to
the pertinent Provincial Tax Tribunal, on a par with UBI Banca S.c.p.a. also the recipient of
this notice of assessment in its capacity as the successor of the then consolidating body (tax consolidation scheme as per Articles 117-129 of the ITCA) Banca Lombarda e Piemontese
S.p.A.. We are still waiting for the hearing to be fixed for both appeals.
On 22nd December 2009, the Company was served a notice of contestation by means of
which an administrative fine was inflicted equating to 100% of the additional IRES as per
the afore-mentioned notice of assessment (around 1.5 million euro). A similar notice was also served on UBI Banca S.c.p.a. in its capacity as the successor of the then consolidating
body. Both the Company and the Parent Company have promptly appealed to the pertinent
Provincial Tax Tribunal against both notices, referring to the reasoning as per the appeals
against the notice of assessment and in the first place requesting the union of these latter
appeals with those against the notice of assessment.
In conclusion, shareholders are reminded that Banco di Brescia – included under the so-
called Large Taxpayers pursuant to Article 27, sections 13 and 14 of Italian Decree Law No.
185/2008, as supplemented by the Provisions of the Inland Revenue Director No. 54291
dated 6th April 2009 – is subject to more stringent checks by the tax authorities such as so-
45
called tax tutoring (Article 27, sections 9-12 of Italian Decree Law No. 185/2008) which,
according to the recognized approaches, will have to provide constant aid and control on the
operations of large taxpayers.
Territorial Optimization Transaction
On 30th September a project was approved with accounting and legal effects as at 25th
January 2010, as part of the federal reference model, for the optimization of the territorial
coverage of the Network Banks, aimed at optimising the structure of the distribution
network by means of the specialisation of the same by geographic area, with a focus on the
areas the group has historically been present in. In detail, the assignment of more or less exclusive territorial coverage to each Network Bank
is envisaged, by means of the grouping together of the Group branches present throughout
the area under a single reference trade name, involving an increase in the market shares
and greater visibility for each individual Network Bank, and a parallel simplification of the
sales development and loan management processes. The transaction will involve the intergroup transfer of around 300 branches and 2,200
resources between Banca Regionale Europea (BRE), Banca Popolare Commercio e Industria
(BPCI), Banca Popolare di Bergamo (BPB), Banco di Brescia (BBS) and Banco di San Giorgio
(BSG).
In detail:
BRE will be the reference bank for the Piedmont area, with the transfer of the Management Headquarters from Milan to Turin;
BPCI will be the reference bank for the Lombard provinces of Milan and Pavia as well as in the Emilia Romagna provinces of Bologna, Parma, Piacenza, Modena, Reggio
Emilia and Ferrara;
BPB will be the reference bank in the provinces of Bergamo, Varese, Como, Lecco and Monza Brianza;
BBS will be the reference bank in the provinces of Brescia, Lodi, Cremona, Mantua and Triveneto;
BSG will be the reference bank in the Liguria region.
The current geographic focus of Banca Popolare di Ancona, Banca Carime and Banca di
Valle Camonica will not by contrast change.
Once the project has been achieved, the UBI Group will operate under just one reference
trade name in 74 of the 78 provinces where it is present.
The branch transfers will take place by means of business segment conferrals (14 are
envisaged). Each of the five Network Banks involved in the transfer will take steps to carry
out a share capital increase to serve the conferrals. Since these are transactions under
common control, the share capital increase will not lead to a share premium since the shares, taken at the effective value of the business conferred, will be issued at face value.
The transferring Banks will then transfer the equity investments deriving from the
conferrals made to the Parent Company.
The territorial rationalisation led on the Bank’s part to the transfer of 28 branches existing
in the areas covered by the other Group banks and the acquisition of 37 branches, including 3 mini branches, throughout the reference area which made it possible to
enhance the presence in specific metropolitan areas.
The effects of the concentration of the branches are shown below in certain specific
geographic areas which disclose increases in the branch market share of over 5%.
46
Sitauzione attuale Scenario di riferimento
Regione Provincia BBS BBS
LIGURIA Genova 0,2%
LOMBARDIA
Como 1,4%
Mantova 1,8% 5,7%
Milano 1,6% 1,6%
Monza 4,5%
Pavia
Varese 2,4%
PIEMONTE Novara
Torino 0,1%
The valuation of the business segments was carried out with the support of an external consultant, developed with reference to the balance sheet results as at 31st December 2008
and on the basis of the following method standards:
the value of each branch was obtained by capitalizing the specific income generated
in 2008, considered representative of the normal average ability to generate profit by
a branch – so-called expected normal average income;
the current value of the figurative cost of the supervisory capital against the branch’s loans was deducted from the value obtained above;
the current value of the income generated by securitised loans since they are
excluded from the scope of conferral, was deducted from the branch value.
With regard to each business segment conferral, where the Bank emerges as the conferring
bank, a sworn report has been drawn up by the expert appointed by the competent Court,
as per Article 2343 of the Italian Civil Code, containing a description of the assets or
receivables conferred, declaration that their value is at least equal to that assigned them for
the purpose of determining the share capital and any share premium and the accounting
policies adopted. In this connection, it is hereby stated that in compliance with the approach expressed by
the Milan Council of Notaries, the expert opinion mentioned above must also be based on
values up-dated with respect the transactions for which it has been arranged and these
values cannot be more than 4 months older than the date of the shareholders’ meeting
which will be called to resolve on the proposed share capital increase serving the conferral.
With a view to this, steps were taken to up-date as at 30th September 2009, the figures
relating to the business segments subject to conferral, with the consequent review of the
valuation of said businesses.
In view of the above, the perimeters of said business segments were configured in detail, with the accurate identification – following organizational and commercial analysis which
involved the co-operation and agreement of the management headquarters of the network
banks – of the legal aspects not subject to transfer (securitized loans and non-performing
loans), the particular exceptions represented by certain types of customers, the
management contract of the Public Bodies treasuries, pledged loan activities, the operating
models and the structures for migration, the properties, the equipment and the human resources involved in the migration.
The impact of the transaction on the capital ratios
All the transactions outlined will have a positive impact on the capital ratios; in particular, an increase in the Total Capital Ratio is estimated for the Bank which will come to around
10.64% as against 10.53% as at 31st December 2009.
47
Share capital increase serving the conferrals received
The share capital has been increased from 593,300,000.00 euro to 615,632,230.88 euro by means of the issue of 32,841,516 ordinary shares with a par value of 0.68 euro each, and
therefore for a total nominal value of 22,332,230.88 euro, to be assigned to the conferrals as
follows:
11,840,156 ordinary shares to BPB, against a conferral value of 46,472,614 euro;
9,306,829 ordinary shares to BPCI, against a conferral value of 36,529,304 euro;
11,694,531 ordinary shares to BRE, against a conferral value of 45,901,033 euro (of which 15,578 thousand euro for properties).
The share capital increase will be carried out at nominal value, provided that the number of new shares has been determined on the basis of the ratio between the value of each
Business segment conferred and the current value of each BBS share (3.925 euro).
Consequently, Article 5 of the Articles of Association will be amended.
Corporate set-ups
The new corporate structure of the Bank on conclusion of the conferrals is presented below:
Partecipazioni
(%)
Azionisti
Situazione
attuale
BBS
Scenario di
riferimento
BBS
Delta
BBS
UBI Banca 100,00% 96,37% -3,63%
BRE 1,29% 1,29%
BPB 1,31% 1,31%
BPCI 1,03% 1,03%
Totale 100,00% 100,00% 0,00% The rationalization of the shareholding set-ups will also involve the acquisition by UBI
Banca of the cross-over minority interests held between the various Group banks.
An indication of the changes present in the main balance sheet balances on the basis of the
figures as at 31st December 2009 is presented below. As mentioned, the effective balances
will be those outstanding as at 25th January 2010, date of legal and accounting efficacy of
the conferral.
Dati in mgl/€ Bonis Deteriorate
Voce 70 Crediti verso clientela (valore di bilancio al 31/12/2009) 13.646.744 531.996
da Banca Popolare di Bergamo 591.451 39.164
da Banca Popolare Commercio e Industria 312.082 20.893
da Banca Regionale Europea 464.841 12.886
a Banca Popolare di Bergamo (574.013) (28.842)
a Banca Popolare Commercio e Industria (44.427) (2.686)
a Banca Regionale Europea (262.263) (5.413)
a Banco di San Giorgio (82.895) (1.996)
Banca nuova 14.051.520 566.002
BBS
48
Dati in mgl/€
voce 20
Debiti verso
clientela
voce 30
Titoli in
circolazione
valore di bilancio al 31/12/2009 8.870.849 10.300.310
da Banca Popolare di Bergamo 262.182 25.124
da Banca Popolare Commercio e Industria 233.099 2
da Banca Regionale Europea 75.111 50
a Banca Popolare di Bergamo (303.304) (12)
a Banca Popolare Commercio e Industria (25.047) -
a Banca Regionale Europea (101.782) -
a Banco di San Giorgio (153.032) -
Banca nuova 8.858.076 10.325.474
BBS
Petition against penalty measures from the Italian Antitrust Authority
As already reported in the previous financial statement disclosure, on 8th August 2008, the
Italian Antitrust Authority, as a result of investigative proceedings initiated in May 2008,
issued penalty measures vis-à-vis 23 banks, including the Bank, maintaining that the
procedure adopted for mortgage transfers violated provisions against improper commercial practices contained in the Consumer Code (Articles 18 et seq. of Italian Legislative Decree
No. 206/5, as modified by Italian Legislative Decree No. 146/07), specifically for having
responded to customers’ needs to change the financing bank by offering the most
burdensome solution for mortgage substitution as opposed to transferring the mortgage
(Article 8 of Italian Legislative Decree No. 7/07, as modified first by the Conversion Law No.
40/07 then by Italian Law No. 244/07), also in violation of proper disclosure responsibilities
envisaged by legislation. The penalty imposed was 450 thousand euro. The Group network banks who received the fine had taken steps to make the related payment by the required
deadline, in any event formulating express reservation of repetition on the favourable
outcome of the appeal proceedings.
At the same time, all 23 credit institutions fined, including those of UBI Banca Group,
submitted petitions against the sanctions with the Lazio Regional Administrative Court which, on 4th February 2009, upheld the petitions, requesting the cancellation of the
penalties imposed.
In July, the same Authority informed the Ministry of the Economy and Finance, in its
capacity as the authority responsible for the payment, of its authorization to uphold the
petition for the reimbursement of the fine originally imposed on the Bank.
On 6th October 2009, an appeal was filed with the Council of State, originally served on 18th September. The arguments made in the appeal petition are the same as those already
expressed by the Authority in the afore-mentioned penalty measures and in the defence
statement before the Lazio Regional Administrative Court. Moreover, no request for
suspension from the obligation to repay the amounts paid by way of the fine has been
presented: as at the date of this Report, the Bank had already obtained the reimbursement from the Ministry.
In November 2009, the Group network banks took steps to formally make their case before
the court: the defence statements on the merits of the case are currently being prepared – in
line with the claims already expressed and supported by the full upholding by the first level
administrative court judge – and will be presented within the ordinary time-limits envisaged
before the hearing, which as yet has not been fixed. Given the solid reasoning behind the first level sentence, the positions in question have
been classified under potential liabilities.
49
Anti-crisis measures supporting small and medium sized businesses20 and households
During the year, the Group banks put together a series of measures supporting households
and economic and manufacturing concerns in the respective areas they operate in, working
together with the public institutions (Chambers of Commerce, Regional and Provincial
authorities) and with the Guarantee Bodies21.
At the same time, the Group complied with the main initiatives furthered at system level by
the Italian Banking Association (ABI). On 12th August, the UBI Group complied with the
“Agreement for the suspension of the debts of small and medium sized businesses vis-à-vis
the lending system” (and subsequent additions) signed on 3rd August by the Ministry of the
Economy and Finance, ABI and the other associations of the Banks-Businesses Observatory, aimed at supporting the SMEs which find themselves in temporary financial
difficulties but which present adequate economic and going concern prospects.
A further condition is that these businesses as at 30th September 2008 exclusively had
positions classified by the banks as performing and that at the time of presentation of the
request they had no restructured or non performing positions or executive procedures in progress.
The agreement, enforced on 28th September 2009, envisages four measures: i) suspension for 12 months of the capital portion of the loan instalments ii) suspension for 12 or 6 months of the capital portion of leasing transaction payments, respectively real estate property or stock & share related; iii) the extension of the deadlines of the bank advances on short-term receivables to 270; iv) provision of specific financing for the purpose of supporting the capital enhancement22.
In order to permit greater operational simplicity in the handling of the requests to avail of the Agreement, an ad hoc procedure was put together for the authorization of the
applications to avail of the benefits of the suspension.
In particular, with regard to the offer, envisaged by the Agreement, of measures for enhancing the capital of the SMEs, the UBI Group made the “200% Ricapitalizzazione immediata” credit facility available, which envisages loans equating to twice the share
capital increase effectively paid in by the shareholders of the company, up to a maximum of
4 million euro.
20 According to the definition of EU legislation, small and medium sized companies are understood to be the
businesses which carry out economic activities, irrespective of their legal form, employing less than 250 individuals, with annual turnover of no more than 50 million euro or with a financial statements total of less than 43 million euro.
21 For the companies, the following is indicated in particular: the “Trust Agreement” with the Bergamo Chamber of
Commerce, the “Protocol with the Brescia Provincial authority for supporting SMEs”, the agreement with Federfidi Lombardia for the handling of the “Confiducia” product, the initiatives of the local Lombard Chambers of Commerce and the Lombardy Regional authority for the Confidi (credit facilities) in the commerce sector, the “Solidarity Fund” set up by the Marches Regional authority to support access to credit for SMEs in the area, the
“Memorandum of Understanding – together to overcome the crisis and relaunch growth” with Coopfidi Rome, the project of the Calabria Regional authority for disbursing soft-rate loans in favour of youngsters and women for self-employment ventures and the launch of micro businesses in Calabria.
With reference to households, each individual Network Bank has entered into agreements with the various
territorial bodies (e.g. the Milan Provincial authority, the Varese Provincial authority), for the support of the customers, possessing mortgages and/or personal loans, receiving temporary unemployment benefits, who have been given the possibility of requesting the suspension of the payment installments until after the natural expiry of the original loan. Again at local level, initiatives were activated aimed at advancing extraordinary
unemployment benefits so as to support households in difficulty.
22 By means of the ABI Circular dated 23rd October 2009, the perimeter of the loan transactions which could avail
of the measures was extended; in particular, the admissibility was clarified, with regard to the extension of the expiry dates, also for short-term credit facilities for advances on receivables not assisted by “notification” and
“confirmation”. By means of the ABI Circular dated 14th January 2009, the list was supplemented with regard to the measures which banks can take to the advantage of companies undergoing temporary financial difficulties to be made operative within thirty days of the date of issue of said circular (or by 13th February): extension to 120 days of the deadlines for land loans, concluded with or without the use of land bills; extension of the 12 month
suspension operation for the capital portion of the repayment installment on m/l-term loans backed by the issue of bills of exchange; extension of the sphere of application of the benefits to the loans with public interest or capital grants.
50
The commercial range of the Group banks also envisages the following two additional credit
facilities backed by guarantees of the main partnered Confidi, which present improved
features with respect to those envisaged by the Agreement: “400% Sostegno e Sviluppo”, loans for an amount up to four times the conferral of capital
carried out by the company’s shareholders (involving a maximum of 500 thousand euro),
intended to support growth projects by means of achieving fixed investments; “200% Rafforzamento della struttura patrimoniale”, loans for an amount up to double the
conferral of capital carried out by the company’s shareholders (joint-stock companies,
partnerships or one-man businesses), involving a maximum of 1 million euro, aimed at
supporting capitalization and rebalancing processes for the financial sources of the
companies. The disbursement of these loans is also envisaged in the event of capital
payments deferred or intended over time for reserves of future operating profits.
Again with a view to activating “Anti-crisis” measures, on 6th August the UBI Group signed
a loan agreement with Cassa Depositi e Prestiti (CDP) availing of the Agreement entered into
by ABI and CDP on 28th May 2009 so as to offer new financing opportunities under
advantageous conditions to small and medium sized businesses by means of recourse to the funding of the CDP deriving from post office savings.
The UBI Group was provided with a credit limit of 156 million euro (as part of the first
tranche of 3 billion envisaged at system level23) so as to finance investments to be achieved
and/or being achieved or the increase of the working capital of the SMEs (according to the
EU definition).
The measure permits the Group network banks to disburse the loans granted to the SMEs under improved conditions, also taking into account the reduction in the cost of the funding
provided by Cassa Depositi e Prestiti envisaged in the afore-mentioned Agreement for the
Banks with a Tier I Ratio higher than 7%, which the UBI Group can benefit from.
The duration of the repayment plan for the loan disbursed by Cassa Depositi e Prestiti to
the Banks complying with the initiative is fixed at a maximum of 5 years with a period of interest-only payments of 3 years at a rate equating to the 6-month EURIBOR uplifted by a
spread to-date equal to 70 base points for the banks with a Tier I Ratio lower than or equal
to 7% or 50 base points for the banks with a Tier I Ratio greater than 7%.
With regard to households, on 20 January the UBI Group complied with the agreement for
the suspension of the repayment of mortgages loans vis-à-vis family units in difficulty due to the crisis, signed by ABI and thirteen Consumer Associations24. It fell under the
initiatives of the ABI “Household Plan”, aimed at encouraging the sustainability of the retail
credit market.
The measures, unique on the European mortgage loan market, represent a similar solution
to the “Agreement for the suspension of the debts of small and medium sized businesses vis-à-vis the lending system” described above.
The UBI Group also complied with the framework agreement signed in May 2009 by ABI and
the CEI (Conferenza Episcopale Italiana), making the “Hope Loan” available, intended for
households who have lost all employment income, not availing of other income or annuities
other than those generated by ownership of their home or ordinary or extraordinary unemployment benefits and aimed at achieving projects for re-employment or the launch of
entrepreneurial activities.
The disbursement of these loans, available as from September until 2012, has been
concentrated within B@nca 24-7.
23 On 17th February 2010, Cassa Depositi e Prestiti and ABI signed a new Agreement which establishes the criteria
for the division and use of the second portion of 5 billion euro. 24 In short, the agreement envisages the suspension for at least 12 months of the repayment of the mortgage loans
up to 150,000 euro taken out for the purchase, construction or renovation of the first home, also with delays in the payments of up to 180 consecutive days, in relation to customers:
• with taxable income of up to 40,000 euro per annum; • who have suffered or are suffering in the two-year period 2009-2010 particularly negative events (death,
job loss, the occurrence of conditions of non self-sufficiency, temporary redundancy).
51
Adaptation to the new transparency provisions
On 1st January 2010, new transparency conditions came into force for transactions and
banking and financial services issued by the Bank of Italy under the instruction dated 28th
July 2009. These apply to all the transactions and services of a banking and financial
nature, including consumer credit, with the sole exception of investment services and activities as well as the placement of financial products.
With regard to transparency, what is more mention is made of the acknowledgement in
Italy, by means of Italian Legislative Decree No. 11 dated 27th January 2010 which came
into force on 1st March 2010, of European Directive 2007/64 regarding payment services,
the so-called PSD – Payment Services Directive.
The Decree pursues objectives of transparency and customer protection, identifying service terms and charges for the bank and differentiating the rules the same must comply with
when carrying out the services offered. At the same time, it introduces new regulations for
accessing the payments market also for legal entities other than banks and electronic
money institutions.
The main innovations regard the obligation, as from 1st January 2012, to credit the amount of the transactions to the beneficiary’s account by the end of the business day following that
when the instruction was acknowledged. Until that date, the parties can agree the
application of a different deadline, which cannot however be greater than 3 working days. In
this connection, the UBI Group has envisaged 2 days for Italian credit transfers on the
SEPA network and three days for foreign transfers within the sphere of the PSD.
Securitisation
On 13th January 2009, the document was signed for the transfer to the special purpose
company UBI Finance 2, established in pursuance of Italian Law No. 130/1999, of a loan
portfolio represented by performing loans to small and medium sized companies, for a total of around 2.1 billion euro.
The issue of the securitised instruments, fully subscribed by the Originator Banco di
Brescia, took place on 27th February 2009.
For further details, reference should be made to the specific section C.1 in part E of the
notes.
Covered Bonds
During 2009, UBI Banca achieved further diversification of its sources of institutional
funding by carrying out the first issues of Covered Bank Bonds as part of the Plan involving
a maximum of 10 billion euro published in July 2008, the only “multioriginator” plan in Italy which envisages the participation of 10 Group banks when fully operative.
In detail, two Covered Bond issues were successfully carried out for 1 billion euro each.
The first – placed in September at 99.466% of the nominal value and listed on the London
market – has a seven-year duration (23rd September 2016) and a fixed rate of 3.625%,
corresponding to the 7-year mid swap rate + 60 base points.
The second – placed at 99.177% of the nominal value and listed on the London market – has a ten-year duration (16 December 2019) and a fixed rate of 4%, corresponding to the 10-
year mid swap rate + 67 base points.
Both the issues – with a AAA/Aaa rating from Fitch and Moody’s – have been taken care of
by Barclays in its capacity as Arranger and by Barclays, Deutsche Bank, Natixis and Société
Générale in their capacity as Joint Lead Managers. The party guaranteeing the issues is UBI Finance Srl, care of which a portfolio of residential
mortgage loans has been set up transferred by the Group banks complying with the plan;
within this sphere, the Bank contributed 44% of the portfolio, via the two transfers in July
2008 and December 2009, equating to a transfer value of around 1.6 billion euro.
For further details, reference should be made to the specific section C.3 in part E of the
notes.
French certificates of deposit
52
As part of the 2 billion maximum plan, the Luxembourg branch currently has French
certificates of deposit for 1.8 billion euro. The Parent Company’s Management Committee
and the Bank’s Board of Directors, respectively on 13th and 15th October 2009, resolved to
raise the limit to 4 billion with consequent adjustment of the guarantee issued by UBI
Banca in favour of the issuer.
PattiChiari Consortium: quality commitments
As known, within the sphere of a more extensive project for the improvement of the retail customer relationships, during 2008 the Italian banking industry entrusted the PattiChiari
Consortium with the new role of “sector vehicle” for the implementation of a vast action plan
which envisages the production, handling and diffusion of simplicity, clarity, comparability
and customer mobility instruments (the so-called “Quality commitments”) as well as
financial education programmes of common interest.
The UBI Group banks, already present in the PattiChiari Consortium since its
establishment (September 2003), promptly confirmed their participation, agreeing on the
importance of a renewed sector effort for offering elevated service standards to the customer.
The project activities were therefore mainly focused on the gradual launch of the Quality Commitments and the other initiatives furthered by the Consortium, in observance of the
“implementation plan” defined at member level and on a consistent basis with the constant
evolution of the related legislative context.
In this connection, it is in fact pointed out that, confirming the positive acknowledgement of
the self-regulation initiatives in the sector, the recent review of the public regulations regarding transparency issued by the Bank of Italy internally assimilated various elements
conceived and developed by the intermediaries at self-regulation level, consequently
inducing the Consortium to adapt the scope of its intervention so as to avoid pointless
overlapping.
The Quality commitments “Summary Disclosure Sheet” (stage 1 commitment) and “Easy Account Statement” (stage 2 commitment), initially envisaged by the PattiChiari Statute,
have therefore been excluded from the self-regulation content since they are acknowledged
within the new Bank of Italy transparency legislation.
During 2009, the Bank activated all the fourteen stage 1 Quality Commitments25, ten stage
2 Quality Commitments26, as well as another four optional initiatives27.
Law for the Protection of Personal Data (Italian Legislative Decree No. 196 of 30th
June 2003)
25 The stage 1 Quality Commitments activated are: engine for comparing packet current accounts; engine for
comparing ordinary current accounts; summary price indicator for packet current accounts; summary price
indicator for ordinary current accounts; “changing current accounts” guide; “changing mortgage loan” guide; informed investments; automatic DD transferability; publication of average timescales for closing current accounts; automatic transferability of mortgage data; monitoring of timescales for closing current accounts; disclosure at ATMs on payment card commission; monitoring of the quality of the indirect loans placement and
management channels via intermediaries; timescales for reimbursement of erroneous/unauthorized debits on cards.
26 The stage 2 Quality Commitments activated are: comparison engine for the Financial Inclusion Service (former Basic Banking Service); summary price indicator for the Financial Inclusion Service; security guide; automatic
transferability of cash collection orders ; automatic transferability of mortgage and/or loan installment debits; monitoring of FARO service levels; centralized FARO call center; Financial Inclusion Service; declaration for the tax deductibility of mortgage interest; home banking protection. The commitments whose stages for the activation or issue of the standards is yet to be completed by the Consortiums are: protection of undue card use;
automatic transferability of credit transfers; automatic transferability of security portfolios; automatic transferability of credit card statements.
27 General valuation criteria on the credit capacity of the SMEs; average response times on credit for small
businesses; definite timescales for availability of sums paid in by cheque; availability of the list of services
regulated in the current account.
53
In compliance with Rule 19 of the Technical Specifications, Attachment B of Italian
Legislative Decree No. 196/2003, the annual update of the Programmatic Document on
Data Safety (DPS) was completed within the timeframe specified by law28 as prescribed by
Article 34.1, letter g) of the aforementioned legislative decree.
As regards the specific treatment via IT instruments, which the Bank has outsourced to UBI Sistemi e Servizi S.c.p.A., the latter guarantees, as part of the service contract, to observe
the regulations and adopt security measures as envisaged by the regulations in force within
the timeframe specified by law.
Environmental and social responsibility
UBI Banca Group’s social responsibility is based on a values framework that references the
Charter of Values and the Global Compact principles and is implemented through the Social
Responsibility Plan. The Charter of Values, the result of thorough analyses and shared
experiences of 120 managers of the Parent Company and various Group banks and companies, states the mission, vision and new values that guide strategic choices and daily
operations. The Global Compact - signed in September 2002 – is an appeal launched in
2000 by the then-Secretary General of the United Nations, Kofi Annan, to all key players in
businesses, to collaborate in building a global economy that is more equitable and
sustainable. In 2007, with the Group’s establishment, a process was initiated to identify and formalise a
work plan aimed at creating a governance system for social responsibility with a view to
integrating specific objectives and projects in the Group’s Business Plan.
The Social Responsibility Plan
The Social Responsibility Plan identifies four macro-areas for intervention (Corporate
Governance, Business Management, Social Programme Management, Reporting and
Control), a series of objectives to be achieved and the mechanisms/tools (e.g. Code of
Ethics, CSR Policy) necessary for achieving these objectives and is consistent with the time frame of the Business Plan with which it will progressively integrate. All of the business
structures are involved in defining and pursuing the CSR Plan objectives, with the support
of the Corporate Social Responsibility Staff, who develop proposals based on policies and
guidelines, contribute to the management and control system, support stakeholder
involvement and manage reporting activities. With the progressive integration of the social
responsibility objectives into the Business Plan, UBI Banca seeks the convergence of strategies, policies and business objectives with the reference values and principles and
stakeholder expectations, to create sustainable value through reputational risk control,
affirming a distinct company identity and pursuit of a climate of trust among the staff,
social base and market.
With regard to Corporate Governance, a new draft of the Group’s Code of Ethics was begun
in 2008, with the involvement of all business structures, network banks and the main
product companies, mapping the stakeholders and the relevant ethical issues. The Code
identifies all of the rights, duties and responsibilities of the company vis-à-vis its
stakeholders and states them in terms of concrete commitments to each group. Currently
specific behaviour codes are being integrated for anyone who works with or on behalf of the company, both internal and external to the business organisation, to ensure conformity not
only with reference values and principles but also legislative measures, regulations and self-
regulation codes adopted. On a parallel with the drafting of the Code of Ethics and in
addition to adopting specific policies, a verification of all business policies relating to
important social responsibility issues was undertaken in 2008 with the collaboration of Vigeo Italia.
As regards environmental responsibility, the Group, in addition to pursuing full and
substantial observance of environmental regulations, contributes to sustainable economic
development and the achievement of the Kyoto Protocol objectives, thereby implementing
the principles subscribed in the Global Compact.
28 The up-date of the DPS for the current year will be approved by the Board of Directors on 18 March 2010.
54
In December 2008 the environmental policy was formally adopted (in addition to the
equipment policy adopted in 2007) that identifies the methods by which UBI Banca Group
manages its environmental responsibility, both toward the community in which it operates
as well as future generations, over the medium to long-term.
With the environmental policy, the Group commits to reducing its environmental impact through intelligent and responsible management both of impacts generated by its business
activities, for example in terms of resource consumption, waste production and emission of
harmful substances (direct impacts), as well as those generated by the conduct of third
parties with which the Bank collaborates and deals on a daily basis, such as customers and
suppliers (indirect impacts).
Adopting an environmental management system includes, for direct impacts, the rational use of resources and elimination of waste, use of renewable energy sources and/or with
lower emissions, waste reduction and disposal, use of products and services with low
environmental impact, sustainable mobility, as well as emergency preparation.
As for indirect impacts, the Group's objective is to encourage customers to manage their
activities in a sustainable manner, providing appropriate banking, financial and risk management products and services.
In addition to controlling the direct and indirect impacts of its commercial operations, the
Group undertakes to encourage greater awareness of environmental issues, promoting
responsible involvement, not only for its staff, but for all stakeholders with which it interacts
and the general public.
Principal risks and uncertainties to which the Bank is exposed
Risks
The Bank attributes primary values to risk measurement, management and control, such as
activities necessary to guarantee creation of sustainable value over time and consolidate its
reputation on the reference markets. In compliance with the New prudent supervisory provisions for banks (Circular 263/2006 of
the Bank of Italy), the Bank developed a process to determine the total capital - both actual
and forecast – suitable for dealing with all the relevant risks to which it is or may be exposed, based on its operations (ICAAP - Internal Capital Adequacy Assessment Process).
As such, the Bank carried out a precise identification of the risks to be assessed, based on its operations, characteristics and reference markets.
The risk identification activities are carried out continuously. They are directed at verifying
the relevance of the Bank’s risks already assessed and understanding the signs of the
occurrence of any other risks. Identification includes an exact conceptual definition of risks
to which the Bank is exposed, analysis of factors that produce the risks, as well as the
description of related methods of manifestation. These activities were carried out through a centralised analytical process, supplemented by self-assessment that was carried out with
reference to all the Bank’s entities.
Once the relevant risk identification activities have been completed, the ICAAP process
envisages the assessment of the risks and the determination of the total capital necessary to deal with them (capital adequacy), both on a current and forecast basis. For an improved
assessment of risk exposure, mitigation and control systems and capital adequacy, the
Bank also performed specific stress tests (through which the impacts on a single risk are
assessed) as well as global stress tests (through which the impacts of all contextual risks
are assessed).
The Bank has a risk governance and safeguarding system that considers the organisational,
regulatory and method-related spheres for the purpose of guaranteeing consistency of the
operations with its propensity towards risk.
Considering the Bank’s mission and operations, as well as the market context in which it operates, the risks to be assessed in the ICAAP process were identified, divided into First Pillar and Second Pillar categories, as indicated in the reference legislation.
55
First Pillar risks – already governed by the regulatory requirements of the Supervisory
Authorities – are:
Credit Risk (including counterparty risk): risk of suffering losses from the default of a counterparty with which a credit exposure exists;
Market Risk: risk of changes in market values of the trading portfolio positions for the purposes of supervision due to unexpected changes in market conditions and credit ratings; this includes risks from unexpected exchange rate changes and
changes in prices of goods that refer to all financial statement positions;
Operational Risk: risk of suffering losses from inadequacy or failure of procedures, human resources and internal systems, or from external events; this includes
losses from fraud, human error, operational interruptions, system unavailability,
contractual breaches, and natural catastrophes; the legal risk is also included.
In addition to First Pillar risks, gaugeable Second Pillar risks were identified, for which
quantitative methodologies were formalised that result in an internal capital calculation, as
well as ungaugeable Second Pillar risks, which are subject to qualitative measurement
(policy, control measures, and attenuation or mitigation).
The Second Pillar risks subject to analysis by the Bank are:
1) Gaugeable risks:
concentration risk: risk arising from exposure in the banking book to
counterparties, or groups of counterparties, in the same economic sector or
that perform the same activities or are in the same geographic area; the
concentration risk can be distinguished in the sub-types “single name concentration risk” and “sector concentration risk”;
interest rate risk: current or forecast risk of a change in interest rate
margins and the economic value of the company, following unexpected
changes in interest rates that impact the banking book;
business risk: risk for adverse and unexpected changes in profits/margins
with respect to forecast data, linked to volatility in volumes due to competitive pressure and market situations;
equity investment risk: risk of losses in the Equity Investments portfolio.
2) Ungaugeable risks:
securitisation risk: risk that the economic substance of the securitisation
transaction is not fully reflected in the risk management and assessment decisions;
compliance risk: risk of incurring judicial or administrative sanctions,
significant financial losses or damages to reputation resulting from violations
of mandatory rules (legislative or regulatory) or self-regulation (statutes, codes
of conduct, self-governance codes);
liquidity risk: risk of non-fulfilment of payment obligations that could be caused by an inability to raise funds or raising them at costs higher than the
market (funding liquidity risk) or from the presence of limits on unfreezing
assets (market liquidity risk) resulting in capital losses;
reputation risk: risk of suffering losses from a negative perception of the
Bank’s image by customers, counterparties, Bank shareholders, investors, supervisory authorities or other stakeholders;
residual risk: risk of suffering losses from unexpected inefficiency of
techniques used by the company to mitigate credit risk (e.g., mortgage
guarantees);
strategic risk: current or forecast risk from downturns in profits or capital
resulting from changes in the operating context, inadequate decision implementation, or insufficient response to changes in the competitive
context.
The credit risk is the characteristics risk of greatest importance for the Bank: on an
historical basis, it accounts for 90% of the regulatory risk capital. The continuation of the
56
difficulties faced by the manufacturing system in general and the crisis affecting
consumption – generated by the reduction in households’ disposal income – negatively
influenced the ability of businesses and private individuals to meet their commitments,
leading to an increase in the credit risk, with a consequent rise in anomalous credit flows
and provisions.
In reference to securities intermediation and placement of financial instruments (funds,
policies, etc.), recent trends of the financial markets resulted in marked reductions in
expected commission revenues (business risk).
Finally, with regard to the liquidity risk, tension on the financial markets has relaxed significantly – especially during the latter part of 2009 – despite the cost of institutional
funding remaining high.
The marginal relevance of risks other than those mentioned is not expected to change over
the year.
Detailed information on the objectives and policies concerning financial risk management,
as well as the Bank’s exposure to price risk, credit risk, liquidity risk and risk of changes in
cash flows – envisaged by Article 2428 of the Italian Civil Code – is included in Part E of the
Notes, to which the reader is referred.
Uncertainties
Uncertainty is defined as a possible event whose potential impact, ascribable to one of the
risk categories identified above, is not currently definable and, therefore, not quantifiable.
The context in which the Bank finds itself operating in is affected by the fragile recovery
which is being experienced by advanced economies and, principally, the euro zone. Specifically, it is envisaged that – with regard to International Bodies – there will be slow
recovery, with extensive uncertainty linked to the trends of the global economy and the
protracted deterioration of the employment market. Tension on financial markets
diminished with respect to last year; during the latter period, volatility on the markets
increased however.
The identified elements of uncertainty could manifest themselves with impacts ascribable
essentially to credit risk, interest rate risk, residual and business risk. Specifically, the main
uncertainties identified for 2009 are linked to the following aspects:
evolution of the macroeconomic context. The uncertainties on the developments of the
macro situation remain linked to the ability of the system to launch a phase of
growth not associated with expansive policies – either monetary or tax related –
implemented to tackle the recession. It is also pointed out that the employment market remains weak, with still negative impacts on the quality of the banking
system’s loans. A curbing of growth could be generated also by the tightening of
fiscal pressure and the measures for containing public spending in the individual
countries so as to recover the excessive public debts in the period of economic crisis;
financial market performance and interest rate curve. The prolonged level of low
interest rates kept banking margins under pressure which, by contrast, would have
benefited from a possible increase in the same. In this sense, the uncertainties are linked to the timing of the recovery from the expansive monetary policy manoeuvres
used during the recession period. Future inflationary dynamics are particularly
important and, in this connection, current information available does not indicate
the presence of endogenous pressure on a consistent basis with the elevated output
gap which characterizes the Italian economy and the entire euro zone. Potential adverse effects are not however to be excluded, deriving from a possible increase in
the prices of raw materials– with particular reference to the energy sector – amplified
by possible confused movements of the euro on the exchange markets. With regard
to the securities portfolio, an upward shock in the rates would have a negative
impact, also increased by the uncertainties linked to the solvency of certain
57
sovereign debts and to possible further extensions of the yield spreads. In
conclusion, the stabilization of the redemption flows and the recovery of the
performances of the funds – combined with the stabilization of the financial markets
– could reduce the exposure to business risk;
real estate market performance. With reference to the assets undertaken to guarantee
transactions for the granting of credit and leasing to customers, the combination of
high prices registered in the previous period and the potential decrease in the same expected in the future, could erode the intrinsic caution of the outstanding
transactions;
changes in the legislative context. In general, the introduction of new laws, or
conventions/agreements at system level, could change the pricing of some income
statement items, causing a reduction in financial margins and service commission,
at present not yet quantifiable. In detail, mention is made of the implementation of
directive 2007/64/CE relating to Payment Services on the internal market (so-called Payment Services Directive), whose provisions – what is more – could be
supplemented in the future, following the issue of implementing instructions by the
Bank of Italy. Lastly, the proposals to amend the prudent regulations – subject to
consultation by the Basel Committee (so-called Basel 3) – could require the banks to
carry out operational measures by no means negligible. In greater detail, the most significant impacts could derive from the proposal to deduct minority interests and
prepaid tax assets from the calculation of the core Tier 1, together with the
introduction of quantitative requirements aimed at containing the liquidity risk.
*****
The risks and uncertainties described above were subject to an assessment process also aimed at highlighting impacts of changes in parameters and market conditions on company performance. In fact, the Bank has instruments to measure the possible impacts of risk and uncertainty on its operations (specifically via sensitivity analysis and stress tests) that allow, in a timely and continual manner, the adjustment of its strategies – in terms of distribution, organisation and cost management/rationalisation models – with respect to the changes in the reference context. In addition, the risks and uncertainties are subject to constant observation via the risk policy legislation adopted by the Group: the policies are updated in relation to changes in strategy, context and market expectations. Periodic monitoring is aimed at verifying their implementation status and adequacy. Analyses performed indicate that the Bank is able to deal with the risks and uncertainties to which it is exposed, thus confirming the assumptions of its continuity.
58
Key Events after the Reporting Period
Please refer to the matters indicated in the Accounting Policies – Section 3 Events occurring
after the balance sheet date.
Business Outlook
Despite the presence of signs of improvement in the economic situation, the forecasts on the
progress of operations are still characterized by considerable uncertainty. The impacts of the crisis in fact still appear to be significant and widespread with negative repercussions on the
business profitability mainly due to the levels of the interests rates at an all-time low and
the deterioration of the loan quality. In such a context, the Bank approved the 2010 budget
in January and is currently consolidating the guidelines for the 2010-2012 business plan.
The business outlook discloses an essential holding of the spreads with customers with regard to revenues, net of the possible effects deriving from the timing of the index-linking of
certain items (in particular retail mortgage loans) and an increase in the volumes brokered,
as well as stability in commission margins.
With regard to costs, consolidation of the current level is envisaged, while with regard to the cost of lending, this is expected to be essentially stable with respect to 2009.
59
Proposals to the Shareholders
Dear Shareholders, We submit the 2009 Financial Statements for your approval with regard to all of its aspects.
In addition, we submit the allocation of the period profit of 128,972,868 euro for your
approval, as follows:
P R OGETTO D I D ES TIN A ZION E D EGLI UTILI
Utile ne tto 2 0 0 9 128.972.868
Utile da ripa rt ire :
- 5% a ris erva legale 6.448.643
- a l Fo ndo per gli s co pi di cui a ll'a rt. 23 dello s ta tuto 2.450.484
- Dividendo agli azio nis ti 32.282.500
- a ris erva s trao rdinaria 87.791.240
0 -
If you approve these proposals, a dividend of 0.037 euro will be distributed for each of the
872,500,000 shares entitled to dividends for the 2009 financial year.
Brescia, 18th March 2010
The Board of Directors
60
Accounting Statements
61
Balance Sheet
(in euro)
VOCI DELL' ATTIVO 31/12/2009 31/12/2008Variazione
annua
Variazione %
annua
10. Cassa e disponibilità liquide 92.583.622 95.547.725 (2.964.103) (3,10)
20. Attività finanziarie detenute per la negoziazione 114.258.929 142.993.954 (28.735.025) (20,10)
40. Attività finanziarie disponibili per la vendita 26.338.852 20.318.960 6.019.892 29,63
60. Crediti verso banche 7.442.071.797 5.268.750.762 2.173.321.035 41,25
70. Crediti verso clientela 14.178.740.507 14.458.083.544 (279.343.037) (1,93)
80. Derivati di copertura 75.128.363 93.701.819 (18.573.456) (19,82)
90. Adeguamento di valore delle attività finanziarie oggetto di copertura generica 21.556.251 26.421.979 (4.865.728) (18,42)
100. Partecipazioni 16.122.340 16.122.340 - -
110. Attività materiali 297.386.463 302.920.236 (5.533.773) (1,83)
120. Attività immateriali 19.739.210 19.733.152 6.058 0,03
di cui:
avviamento 19.705.120 19.705.120 - -
130. Attività fiscali: 76.127.309 51.122.580 25.004.729 48,91
a) correnti 50.288.791 30.155.518 20.133.273 66,76
b) anticipate 25.838.518 20.967.062 4.871.456 23,23
150. Altre attività 320.366.690 496.866.266 (176.499.576) (35,52)
Totale dell'attivo 22.680.420.333 20.992.583.317 1.687.837.016 8,04
VOCI DEL PASSIVO E DEL PATRIMONIO NETTO 31/12/2009 31/12/2008Variazione
annua
Variazione %
annua
10. Debiti verso banche 1.370.704.813 1.546.931.703 (176.226.890) (11,39)
20. Debiti verso clientela 8.870.849.483 10.028.623.708 (1.157.774.225) (11,54)
30. Titoli in circolazione 10.300.310.442 7.277.284.342 3.023.026.100 41,54
40. Passività finanziarie di negoziazione 81.138.029 106.579.197 (25.441.168) (23,87)
60. Derivati di copertura 51.428.646 50.101.456 1.327.190 2,65
80. Passività fiscali: 59.174.103 89.512.550 (30.338.447) (33,89)
a) correnti 32.199.614 48.918.247 (16.718.633) (34,18)
b) differite 26.974.489 40.594.303 (13.619.814) (33,55)
100. Altre passività 573.302.445 594.394.368 (21.091.923) (3,55)
110. Trattamento di fine rapporto del personale 63.808.427 64.921.684 (1.113.257) (1,71)
120. Fondi per rischi e oneri: 22.998.809 21.561.266 1.437.543 6,67
b) altri fondi 22.998.809 21.561.266 1.437.543 6,67
130. Riserve da valutazione 21.205.857 17.935.219 3.270.638 18,24
160. Riserve 423.226.411 264.784.506 158.441.905 59,84
170. Sovrapprezzi di emissione 120.000.000 120.000.000 - -
180. Capitale 593.300.000 593.300.000 - -
200. Utile d'esercizio 128.972.868 216.653.318 (87.680.450) (40,47)
Totale del passivo e del patrimonio netto 22.680.420.333 20.992.583.317 1.687.837.016 8,04
62
Income Statement (in euro)
10. Interessi attivi e proventi assimilati 668.984.370 1.124.744.278 (455.759.908) (40,52)
20. Interessi passivi e oneri assimilati (300.211.146) (611.726.670) 311.515.524 (50,92)
30. Margine di interesse 368.773.224 513.017.608 (144.244.384) (28,12)
40. Commissioni attive 200.943.307 207.825.068 (6.881.761) (3,31)
50. Commissioni passive (16.198.225) (18.267.681) 2.069.456 (11,33)
60. Commissioni nette 184.745.082 189.557.387 (4.812.305) (2,54)
70. Dividendi e proventi similiI 1.698.742 3.838.107 (2.139.365) (55,74)
80. Risultato netto dell'attività di negozizione 5.513.744 3.239.803 2.273.941 70,19
90. Risultato netto dell'attività di copertura 4.338.185 (8.737.878) 13.076.063 (149,65)
100. Utile (perdita) da cessione o riacquisto di: 351.885 14.904.080 (14.552.195) (97,64)
a) crediti 13 (37.531) 37.544 (100,03)
b) attività finanziarie disponibili per la vendita 490.936 13.873.493 (13.382.557) (96,46)
d) passività finanziarie (139.064) 1.068.118 (1.207.182) (113,02)
120. Margine di intermediazione 565.420.862 715.819.107 (150.398.245) (21,01)
130. Rettifiche/riprese di valore nette per deterioramento di: (70.568.255) (74.651.101) 4.082.846 (5,47)
a) crediti (69.219.974) (70.489.594) 1.269.620 (1,80)
b) attività finanziarie disponibili per la vendita (93.873) (6.431.863) 6.337.990 (98,54)
d) altre operazioni finanziarie (1.254.408) 2.270.356 (3.524.764) (155,25)
140. Risultato netto della gestione finanziaria 494.852.607 641.168.006 (146.315.399) (22,82)
150. Spese amministrative (323.122.506) (359.728.762) 36.606.256 (10,18)
a) spese per il personale (165.124.307) (182.954.281) 17.829.974 (9,75)
b) altre spese amministrative (157.998.199) (176.774.481) 18.776.282 (10,62)
160. Accantonamenti netti fondi per rischi e oneri (3.257.733) (2.028.080) (1.229.653) 60,63
170. Rettifiche/riprese di valore nette su attività materiali (11.096.152) (10.595.769) (500.383) 4,72
180. Rettifiche/riprese di valore nette su attività immateriali (9.036) (17.564) 8.528 (48,55)
190. Altri oneri/proventi di gestione 43.268.678 45.648.767 (2.380.089) (5,21)
200. Costi operativi (294.216.749) (326.721.408) 32.504.659 (9,95)
240. Utili (perdite) della cessione di investimenti (76.193) 1.043.878 (1.120.071) (107,30)
250. Utile (perdita) della operatività corrente al lordo delle imposte 200.559.665 315.490.476 (114.930.811) (36,43)
260. Imposte sul reddito dell'esercizio dell'operatività corrente (71.586.797) (98.837.158) 27.250.361 (27,57)
270. Utile (perdita) della operatività corrente al netto delle imposte 128.972.868 216.653.318 (87.680.450) (40,47)
290. Utile d'esercizio 128.972.868 216.653.318 (87.680.450) (40,47)
Variazione %
annua 31/12/2009 31/12/2008
Variazione
annua
63
Statement of aggregate profitability (in euro)
31/12/2009 31/12/2008
10. Utile (perdita) di esercizio 128.972.868 216.653.318
Altre componenti reddituali a netto delle imposte
20. Attività finanziarie disponibili per la vendita 2.825.633 (14.795.285)
90. Utile (Perdita) attuariali su piani a benefici definiti 445.005 (1.098.326)
110.Totale altre componenti reddituali al netto delle imposte 3.270.638 (15.893.611)
120 Redditività complessiva (Voce 10+110) 132.243.506 200.759.707
Voci
Further to the amendments made to IAS 1 and IAS 34 by EU Regulation No. 1274/2008
issued on 18th December 2008 in the Official Gazette of the European Union, the
“Statement of aggregate profitability” is published disclosing the “Aggregate profitability” as the sum of the period economic result (profit/loss) and the cost and revenue components
which are not recorded in the income statement, but are under shareholders’ equity, further
to a specific provision of the IAS/IFRS.
In essence, this new statement supports the income statement schedule for the purpose of
providing improved disclosure on the aggregate corporate profitability by means of the identification of an aggregate which, in contrast to the profit/loss for the period, expresses
in the most extensive way the wealth generated/absorbed by company operations also
including those cost and revenue components, pertaining to the period, which are recorded
under shareholders’ equity and which therefore have given rise to changes in valuation
reserves.
64
Statement of Changes in Shareholders’ Equity Movements as at 31st December 2009 (in euro)
ris e rve
d iv id e nd i e
a lt re
d e s t inaz io ni
Emis s io ne
nuo ve
az io ni
A c q uis t o
az io ni
p ro p rie
D is t rib uz io ne
s t rao rd inaria
d iv id e nd i
V ariaz io ne
s t rume nt i
d i c ap it a le
D e riva t i
s u p ro p rie
az io ni
S t o c k
o p t io ns
C ap it a le : 59 3 .3 0 0 .0 0 0 X 59 3 .3 0 0 .0 0 0 - X X - - X X X X X 59 3 .3 0 0 .0 0 0
a) Azioni o rd inarie 593 .300 .000 x 593 .300 .000 X X X X X X X 593 .300 .000
b ) altre azioni - X - X X X X X X X -
S o vrap p re z z i d i e mis s io ne 12 0 .0 0 0 .0 0 0 X 12 0 .0 0 0 .0 0 0 X X X X X X X X 12 0 .0 0 0 .0 0 0
R is e rve : 2 6 4 .78 4 .50 6 - 2 6 4 .78 4 .50 6 158 .4 4 1.9 0 5 X - - - - X - - X 4 2 3 .2 2 6 .4 11
a) d i ut ili 264 .784 .506 - 264 .784 .506 158 .441.905 X - X X X X 423 .226 .411
b ) altre - - - X X - X X -
R is e rve d a va lut az io ne 17 .9 3 5 .2 19 17 .9 3 5 .2 19 X X X X X X X X 3 .2 70 .6 3 8 2 1.2 0 5 .8 57
S t rume nt i d i c ap it a le X - X X X X X X X X X -
A z io ni p ro p rie X - X X X X X X X X -
U t ile ( P e rd it a ) d i e s e rc iz io 2 16 .6 53 .3 18 - 2 16 .6 53 .3 18 ( 158 .4 4 1.9 0 5) ( 58 .2 11.4 13 ) X X X X X X X 12 8 .9 72 .8 6 8 12 8 .9 72 .8 6 8
P at rimo nio N e t t o 1.2 12 .6 73 .0 4 3 X 1.2 12 .6 73 .0 4 3 - ( 58 .2 11.4 13 ) - - - - - - - 13 2 .2 4 3 .50 6 1.2 8 6 .70 5 .13 6
P at rimo nio
ne t t o a l
3 1/ 12 / 2 0 0 9V ariaz io ni d i
ris e rve
R e d d it iv it à
c o mp le s s iva
e s e rc iz io
2 0 0 9
Op e raz io ni s ul p a t rimo nio ne t t o
Es is t e nz e a l 3 1/ 12 / 2 0 0 8
M o d if ic a
s a ld i d i
ap e rt ura
Es is t e nz e a l
0 1/ 0 1/ 2 0 0 9
A llo c az io ne ris ult a t o e s e rc iz io
p re c e d e nt e
V ariaz io ni d e ll 'e s e rc iz io
The statement of changes in shareholders’ equity used for the purpose of drawing up these financial statements acknowledges the changes deriving from the introduction of the afore-mentioned EU Regulation No. 1274/2008; in detail the column “Aggregate profitability” has been
included – replacing the period result – and the level of disclosure of the line “Valuation reserves” has been aggregated, as more fully detailed
in the “Statement of aggregate profitability”.
65
Statement of Changes in Shareholders’ Equity Movements as at 31st December 2008 (in euro)
ris e rve
d iv id e nd i e
a lt re
d e s t inaz io ni
Emis s io ne
nuo ve
az io ni
A c q uis t o
az io ni
p ro p rie
D is t rib uz io ne
s t rao rd inaria
d iv id e nd i
V ariaz io ne
s t rume nt i
d i c ap it a le
D e riva t i
s u p ro p rie
az io ni
S t o c k
o p t io ns
C ap it a le : 59 3 .3 0 0 .0 0 0 X 59 3 .3 0 0 .0 0 0 - X X - - X X X X X 59 3 .3 0 0 .0 0 0
a) Azioni o rd inarie 593 .300 .000 x 593 .300 .000 X X X X X X X 593 .300 .000
b ) altre azioni - X - X X X X X X X -
S o vrap p re z z i d i e mis s io ne 12 0 .0 0 0 .0 0 0 X 12 0 .0 0 0 .0 0 0 X X X X X X X X 12 0 .0 0 0 .0 0 0
R is e rve : 13 0 .6 6 5 .4 8 7 - 13 0 .6 6 5 .4 8 7 13 4 .119 .0 19 X - - - - X - - X 2 6 4 .78 4 .50 6
a) d i ut ili 130 .665.487 - 130 .665.487 134 .119 .019 X - X X X X 264 .784 .506
b ) altre - - - - X X - X X -
R is e rve d a va lut az io ne 3 3 .8 2 8 .8 3 0 3 3 .8 2 8 .8 3 0 X X X X X X X X ( 15 .8 9 3 .6 11) 17 .9 3 5 .2 19
S t rume nt i d i c ap it a le - X - X X X X X X X X X -
A z io ni p ro p rie - X - X X X X X X X X -
U t ile ( P e rd it a ) d i e s e rc iz io 3 19 .0 4 3 .3 4 3 - 3 19 .0 4 3 .3 4 3 ( 13 4 .119 .0 19 ) ( 18 4 .9 2 4 .3 2 4 ) X X X X X X X 2 16 .6 53 .3 18 2 16 .6 53 .3 18
P at rimo nio N e t t o 1.19 6 .8 3 7 .6 6 0 X 1.19 6 .8 3 7 .6 6 0 - ( 18 4 .9 2 4 .3 2 4 ) - - - - - - - 2 0 0 .759 .70 7 1.2 12 .6 73 .0 4 3
P at rimo nio
ne t t o a l
3 1/ 12 / 2 0 0 8V ariaz io ni d i
ris e rve
R e d d it iv it à
c o mp le s s iva
e s e rc iz io
2 0 0 8
Op e raz io ni s ul p a t rimo nio ne t t o
Es is t e nz e a l
3 1/ 12 / 2 0 0 7
M o d if ic a
s a ld i d i
ap e rt ura
Es is t e nz e a l
0 1/ 0 1/ 2 0 0 8
A llo c az io ne ris ult a t o e s e rc iz io
p re c e d e nt e
V ariaz io ni d e ll 'e s e rc iz io
The statement of changes in shareholders’ equity used for the purpose of drawing up these financial statements acknowledges the changes
deriving from the introduction of the afore-mentioned EU Regulation No. 1274/2008; in detail the column “Aggregate profitability” has been
included – replacing the period result – and the level of disclosure of the line “Valuation reserves” has been aggregated, as more fully detailed
in the “Statement of aggregate profitability”.
66
Cash Flow Statement (in euro)
METODO INDIRETTO 31/12/2009 31/12/2008
A. ATTIVITA' OPERATIVA
1. Gestione 284.871.388 426.411.799
- risultato d'esercizio (+/-) 128.972.868 216.653.318
- plus/minusvalenze su attività finanziarie detenute per la negoziazione e su attività/passività finanziarie
valutate al fair value (-/+) 1.888.293 2.089.910
- plus/minusvalenze su attività di copertura (-/+) (14.327.667) 8.737.878
- rettifiche/riprese di valore nette per deterioramento (+/-) 81.407.811 87.273.101
- rettifiche/riprese di valore nette su immobilizzazioni materiali e immateriali (+/-) 11.105.188 10.613.333
- accantonamenti netti a fondi rischi ed oneri e altri costi/ricavi (+/-) 4.238.098 2.207.101
- imposte e tasse non liquidate (+) 71.586.797 98.837.158
2. Liquidità generata/assorbita dalle attività finanziarie (1.797.408.201) (2.740.461.281)
- attività finanziarie detenute per la negoziazione 26.846.732 (31.473.765)
- attività finanziarie disponibili per la vendita (3.096.131) 3.060.509
- crediti verso banche: a vista (2.173.321.035) (2.777.576.457)
- crediti verso clientela 200.667.387 205.725.949
- altre attivita' 151.494.846 (140.197.517)
3. Liquidità generata/assorbita dalle passività finanziarie 1.571.962.732 2.533.335.254
- debiti v/banche a vista (176.226.890) (921.567.730)
- debiti v/clientela (1.157.774.225) 707.513.675
- titoli in circolazione 3.027.587.772 2.887.789.939
- pass.finanz.di negoziazione (25.441.168) 37.380.777
- altre passività (96.182.757) (177.781.407)
Liquidità netta generata/assorbita dall'attività operativa 59.425.919 219.285.772
B. ATTIVITA' DI INVESTIMENTO
1. Liquidità generate da 2.333.385 5.738.106
- dividendi incassati su partecipazioni 1.698.742 3.838.107
- vendite di att.materiali 634.643 1.899.999
2. Liquidità assorbita da : (6.511.994) (17.663.226)
- acquisti di partecipazioni - (2.287.522)
- acquisti di att.materiali (6.496.900) (15.372.254)
- acquisti di att.immateriali (15.094) (3.450)
Liquidità netta generata/assorbita dall'attività d'investimento (4.178.609) (11.925.120)
C. ATTIVITA' DI PROVVISTA - -
- distribuzione dividendi e altre finalità (58.211.413) (184.924.324)
Liquidità netta generata/assorbita dall'attività di provvista (58.211.413) (184.924.324)
LIQUIDITA' NETTA GENERATA/ASSORBITA NELL'ESERCIZIO (2.964.103) 22.436.328
Key: (+) Generated (-) Absorbed
Cash Flow Reconciliation
VOCI DI BILANCIO 31/12/2009 31/12/2008
Cassa e disponibilità liquide all'inizio dell'esercizio 95.547.725 73.111.398
Liquidità totale generata/assorbita nell'esercizio (2.964.103) 22.436.328
Cassa e disponibilità liquide alla chiusura dell'esercizio 92.583.622 95.547.725
67
Notes
68
Notes
The Notes comprise the following parts:
1) Part A – Accounting policies
2) Part B – Information on the Balance Sheet
3) Part C – Information on the Income Statement
4) Part D – Aggregate profitability 5) Part E – Information on Risks and related Hedging Policies
6) Part F – Information on Shareholders’ Equity
7) Part G – Business Combination Transactions regarding Businesses or Business
Segments
8) Part H –Related Party Transactions
9) Part I – Share-based Payment Agreements 10) Part L – Segment Reporting
Part A –Accounting Policies
A.1 – General Information
Section 1 Statement of Compliance with IAS
Introduction
These financial statements were prepared in accordance with the international accounting standards (IAS) issued by the International Accounting Standards Board (IASB) and
endorsed as of the date of preparation of these financial statements, as well as the related
interpretations issued by the International Financial Reporting Interpretation Committee
(IFRIC)29.
The financial statements consist of the Balance Sheet, Income Statement, Statement of aggregate profitability, Statement of Changes in Shareholders’ Equity, Cash Flow Statement
and the Notes.
The financial statements are audited by Reconta Ernst & Young S.p.A., pursuant to Article
155 of Italian Legislative Decree No. 58 of 24th February 1998 in compliance with the resolution passed by the Shareholders’ Meeting on 11th April 2007 which engaged the
aforesaid auditing company to prepare the financial statements through the 2012
accounting period.
The financial statements as at 31st December 2009 were clearly prepared and truthfully and
accurately represent the balance sheet situation, the income situation, the financial result for the period, changes in shareholders’ equity and cash flows.
Section 2 General preparation principles
These financial statements were prepared in accordance with the general principles of IAS 1 “Presentation of financial statements” and therefore contain the information with a view to
the bank as a going concern, charging costs and revenues on a matching basis and avoiding offsets between assets and liabilities and costs and revenues.
29 In this connection, see the “List of IAS/IFRS standards approved by the European Commission” published in Part
A.1 of the Notes to the financial statements. The standards listed therein, as well as the related interpretations, are applied in relation to the occurrence of events disciplined by the same and the year when they became applicable.
69
When preparing these financial statements, the Bank of Italy/CONSOB/ISVAP (Supervisory
Board for Private Insurance) Document No. 4 dated 3rd 2010 was also taken into account,
following on from the previous joint document issued by the same authorities (No. 2) dated
6th February 2009, which recommends that the financial reports be suitable for clearly,
completely and promptly representing the risks and the uncertainties which the company is exposed to, the equity it avails of for dealing with the same and its effective ability to
generate profit. The document, like the previous one, is not independently perceptive since it
does not introduce additional disclosure obligations with respect to those already envisaged
by the international accounting standards, whose accurate and complete application its
recommends. Nevertheless, it identifies the following disclosure areas in which the
companies must ensure a higher degree of transparency: 1. valuation (so-called impairment test as per IAS 36) of the goodwill, of the other
intangible assets with an unspecified useful life and equity investments;
2. valuation of the equities classified as “Available-for-sale financial assets” (IAS 39);
3. classification of the financial liabilities when the contractual clauses which
determine the application of the acceleration clause are not observed.
The document in question also provides specifications regarding the accounting treatment
to be adopted in situations of restructuring of the debt in exchange for shares. It also refers
to the importance of the correct definition, and associated disclosure, of the three fair value
levels (so-called “Hierarchy of the fair value”) introduced by IFRS 7.
When drawing up these financial statements, account was taken of the contents of the
afore-mentioned document in the specific sections of the notes which deal with these
aspects.
With specific reference to the disclosure regarding the business as a going-concern, and the
risks and uncertainties which the Bank is exposed to, reference should be made to the comments made in the Directors’ Report in the section “Principal risks and uncertainties to
which the Bank is exposed”.
Information reported herein, unless otherwise stated, is expressed in euro as the accounting
currency and the Balance Sheet, Income Statement, Cash Flow Statement, Notes and
explanatory tables are expressed in thousands of euro. Rounding off was performed considering the provisions indicated by the Bank of Italy. Items that do not contain values
for the current and prior period were omitted.
The tables used in these financial statements are compliant with those defined by the Bank
of Italy Circular No. 262/2005, as amended by the Ist update dated 18th November 2009. These tables provide accounting data as at 31st December 2009 and the corresponding data
as at 31st December 2008.
On 18th November, the Bank of Italy issued the 1st update to Circular No. 262/05 “Bank financial statements: layouts and compilation rules”; this measure involved a full review of
this Circular which disciplines the preparation of bank financial statements for the purpose
of incorporating in the Circular the changes which have in the meantime occurred in the international accounting standards, making a number of rationalisations to the tables in the
notes to the financial statements and acknowledging a number of clarifications and
specifications already provided to the system by means of previous administrative
methods30.
Following the issue of the 1st update, a number of reclassifications were necessary which,
for the Bank, however merely concerned the details of the notes, since they were made
within the same item.
30 Reference is made to the following administrative messages: No. 222359 dated 22nd February 2008 relating to
the representation in the financial statements of public property leasing transactions, No. 1354714 dated 22nd
December 2008 relating to the renegotiation of mortgage loans and No. 1379882 dated 31 December 2008 (disclosed to the banks via the so-called “insert” of January 2009) relating to a number of changes and specifications of Circular B.I. 262/05.
70
The Directors’ Report comments on the main variations that occurred in the Balance Sheet
and Income Statement over the period in question.
Accounting standards
The accounting standards illustrated in Part A.2, related to the phases of classification, measurement and cancellation, were essentially the same as those adopted for preparing
the 2008 financial statements.
The accounting standards used tend to be directed towards cost application, with the
exception of the following financial assets and liabilities whose value was calculated by
applying the fair value criteria: financial instruments held for trading (including derivatives) and available-for-sale financial instruments.
So as to be thorough, it is hereby indicated that non-current assets available for sale (and
the associated liabilities) are recorded at book value or fair value (net of sales costs),
whichever is the lower.
Section 3 Events occurring after the Balance Sheet date
Territorial Optimization Transaction
As indicated in the interim management report as at 30th September 2009, the Territorial
Optimization transaction envisaged the conferral of 14 business segments – mainly made up
of branches – from among a number of UBI Group network banks and the subsequent reorganization of the shareholding structures.
The afore-mentioned conferrals will be effective legally as from 25th January 2010 and
therefore the accounting effects of the transaction in question will fall within 2010.
The Territorial optimization transaction, achieved between bodies subject to joint control,
will be recorded in the separate financial statements of the entities of the UBI Group
companies, in accordance with the “Preliminary Assirevi approaches regarding IFRS” (so-called OPI), since transactions of this type do not fall within the sphere of application of
IFRS 3 “Business combinations”.
In accordance with the provisions of the OPI, since these transactions are mainly for
reorganizational purposes, the same will therefore be recorded at consistent book values or
without the statement of the economic effects.
As at 31st December 2009, the territorial optimization transaction was not represented in
accordance with accounting standard IFRS 5 “Non current assets held for sale and
discontinued operations” since:
it comes about with the transfer and simultaneous acquisition of business segments: the application of IFRS 5 would not make it possible to fully represent these aspects
since it would solely highlight the disposal of businesses;
the transaction is achieved between parties subject to joint control and therefore a representation of the transactions according to group logics is considered more
appropriate.
On the basis of the above, full disclosure such as that provided in the Directors’ Report in
the section “Other information” is considered to be more indicative.
Section 4 Other aspects
Use of estimates and assumptions when preparing the financial statements
71
The amounts in the financial statements are valued according the standards described in
Part A.2 “Section relating to the main balance sheet items" of the Accounting Standards.
Given the inability to precisely measure certain financial statement items, the application of
these standards signifies that, inevitably, estimates and assumptions must be adopted that
have a significant impact on the values recorded in the balance sheet and income statement.
Confirming that the use of reasonable estimates is an essential part of preparing financial
statements, the items listed below should be noted as they make the most significant use of
estimates and assumptions:
loan valuation;
valuation of financial assets not listed on active markets;
valuation of intangible assets and equity investments;
quantification of provisions for liabilities and charges;
quantification of deferred taxes;
definition of the depreciation/amortisation rate for tangible and intangible assets with a specified useful duration.
In this connection, the adjustment of an estimate may occur following changes in the circumstances on which the estimates were based, as a result of new information or more
experience. Any change in the estimate is applied prospectively and therefore impacts the
income statement for the period in which the change was made and possibly future periods.
The current financial year was not characterised by significant changes in the estimation criteria already applied for drawing up the financial statements as at 31st December 2008.
Collective impairments on performing loans
As already indicated in the financial statements as at 31st December 2008, during 2009
action continued for aligning loan handling and monitoring within the individual group
network banks.
Impairment adjustments on performing loans have been estimated by means of adopting the
assessment method based on Basel 2 regulations.
Specifically, the PD (probability of default) and LGD (loss given default) were determined based on time series calculated on the aggregate total of the network banks. This method
guarantees an accurate representation of the total credit risk inherent in the loan portfolio,
but does not adequately reflect the specifics of individual network banks. In fact, in the
current UBI Group context, the cost of credit quality and the run-off rate are not yet
standardised mainly due to differences in management practices and processes and credit monitoring. Therefore, in order to more fully represent the specifics of the individual banks
on a consistent basis with the effective portfolio risk, an approach for allocating total
impairment adjustments was adopted, on the basis of the individual specifics represented
by the time series of the impairment losses and run-off rates.
In 2010, activities to align loan management and monitoring at the individual banks in the
Group’s network will continue.
Fund provision commission (former overdraft commission)
As already indicated in the interim management report as at 30th September 2009, as from
1st July 2009 the UBI Group – following the introduction of a new commission system - introduced “Fund Provision Commission” (FPC). This commission is all-inclusive and
replaces not only the commission applied to credit facilities and current accounts with
credit facilities but also the “Overdraft Commission”. Therefore FPC commission is different
with regard to nature and calculation logical to that which characterized Overdraft
Commission; the same is therefore recognised in the income statement in the item
“Commission income” and not in the item “Interest income and similar revenues” which included Overdraft Commission.
72
With regard to the reference period, the income statement has been affected under the item
“Interest income and similar revenues” by the recording of Overdraft Commission, for a total
of 15,503 thousand euro, and in the item “Commission income” by the recording of the
proceeds attributable to the Fund Provision Commission with reference to the second half of
2009, for a total of 11,954 thousand euro.
Due to the different nature and the different calculation methods, which distinguish
Overdraft Commission from Fund Provision Commission, the amounts relating to the
previous periods, presented for comparative purposes, in the income statement format as
per the Bank of Italy Circular No. 262/05, have not been reclassified and that which is
attributable to Overdraft Commission, amounting as at 31st December 2008 to 30,543 thousand euro, is fully allocated to the item “Interest income and similar revenues”.
Changes in IAS 39
On 12th November, the International Accounting Standards Board (IASB) approved the final
version of IFRS 9 “Financial Instruments”, or rather the new accounting standard intended
to replace – for the part relating to the recognition and measurement of the financial assets
– the provisions of 39 “Financial instruments: recognition and measurement”, thereby
concluding the first stage of the project for the full review of the afore-mentioned accounting standard.
However, IFRS 9 has not been approved by the European Commission and is therefore not
applicable to the financial statements of European companies. The approval process, so-
called “endorsement”, has been postponed for an unspecified period of time which means
that there is the possibility of a significant deferral of the hypothetical date of application for
the new standard as well as the probability of changes to the contents known at present.
The IFRS 9 version approved by the IASB does not envisage any substantial innovations
with respect to that already indicated in detail at the time of the disclosure provided in the
Interim management report as at 30th September 2009, to which reference should be made
for full details.
Given the above situation, the UBI Group remains actively involved participating in the work
groups set up at A.B.I. level, together with the leading Italian banking groups, so as to
monitor the approval procedure for IFRS 9 as well as analyze the contents introduced by
other recent documents which represent the review of other topics currently dealt with by
IAS 39 (so-called second project phase) In this connection, it is hereby stated that as at 5th November, the IASB published for usual
consultation, which will end on 30th June 2010, the Exposure Draft “Financial Instruments;
Amortised Cost and Impairment”. This document envisages the review of the methods for
determining impairment losses on all the financial assets valued at amortised cost (in detail,
see loans for the banking sector). The most significant change which is proposed is the variation in the method for determining the cash flows expected from the assets being
valued: the purpose of this change lies in the attempt to avoid the application of a pro-
cyclical model, such as that currently used (so-called incurred loss), which leads to the
recording of losses only when a loss event emerges. The new model proposed, so-called
expected loss, envisages the recording of the expected losses over the entire contractual
duration of the asset. In the initial stage, these expected losses are taken into consideration when determining the effective interest rate of the asset; at the time of subsequent
evaluational stages, each change in the expected cash flows (with respect to the time the
asset is recorded) leads to an impairment loss to be recorded in the income statement.
Accordingly, a change in the expected cash flow in the future leads to an impairment loss
now, without it being necessary to wait for the event to take place.
73
List of the main IAS/IFRS Standards Endorsed by the European Commission
Given that the international accounting standards listed below were adopted with a series of
modifying regulations to simplify the European Community legislation regarding accounting
standards and improve the clarity and transparency, on 3rd November 2008 the European Commission issued the EC Regulation No. 1126/200831, which replaces the prior
Regulations32 and assembles the standards previously contained in said Regulations within
a single text.
IAS/IFRS ACCOUNTING STANDARDS ENDORSEMENT
IAS 1 Presentation of financial statements
Reg. 1274/2008, Reg.
53/2009, Reg. 70/2009, Reg. 494/2009
IAS 2 Inventories Reg. 1126/2008
IAS 7 Cash Flow Statements Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009, Reg. 494/2009
IAS 8 Accounting policies, changes in accounting estimates and errors Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009
IAS 10 Events after the reporting period Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009,
Reg. 1142/2009
IAS 11 Long-term contracts Reg. 1126/2008, Reg. 1274/2008
IAS 12 Income taxes Reg. 1126/2008, Reg. 1274/2008, Reg. 495/2009
IAS 16 Tangible assets Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009,
Reg. 495/2009
IAS 17 Leasing Reg. 1126/2008
IAS 18 Revenues Reg. 1126/2008, Reg.
69/2009
IAS 19 Employee benefits Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009
IAS 20 Accounting for government grants and disclosure on government assistance
Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009
IAS 21 Changes in foreign exchange rates Reg. 1126/2008, Reg. 1274/2008, Reg. 69/2009, Reg. 494/2009
IAS 23 Financial charges Reg. 1260/2008, Reg.
70/2009
IAS 24 Related party disclosures Reg. 1126/2008, Reg. 1274/2008
IAS 26 Retirement benefit plans Reg. 1126/2008
IAS 27 Consolidated and separate financial statements Reg. 494/2009
IAS 28 Investments in associates
Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009, Reg. 494/2009, Reg. 495/2009
IAS 29 Financial reporting in hyperinflationary economies Reg. 1126/2008, Reg.
1274/2008, Reg. 70/2009
IAS 31 Interests in joint ventures Reg. 1126/2008, Reg.
70/2009, Reg. 494/2009
31 It became effective after the publication in the Official Gazette of the European Union No. 320 of 29th November
2008.. 32 Ref. (EC) Regulation no. 1725/2003 and subsequent modification laws.
74
IAS 32 Financial instruments: presentation
Reg. 1126/2008, Reg.
1274/2008, Reg. 53/2009, Reg. 70/2009, Reg. 495/2009, Reg. 1293/2009
IAS 33 Earnings Per Share Reg. 1126/2008, Reg. 1274/2008, Reg. 495/2009
IAS 34 Interim financial reporting Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009,
Reg. 495/2009
IAS 36 Impairment of assets
Reg. 1126/2008, Reg. 1274/2008, Reg. 69/2009, Reg. 70/2009, Reg. 495/2009
IAS 37 Provisions, contingent liabilities and contingent assets Reg. 1126/2008, Reg.
1274/2008, Reg. 495/2009
IAS 38 Intangible Assets
Reg. 1126/2008, Reg.
1274/2008, Reg. 70/2009, Reg. 495/2009
IAS 39 Financial instruments: recognition and measurement
Reg. 1126/2008, Reg. 1274/2008, Reg. 53/2009, Reg. 70/2009, Reg.
494/2009, Reg. 495/2009, Reg. 824/2009, Reg. 839/2009, Reg. 1171/2009
IAS 40 Investment property Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009
IAS 41 Agriculture Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009
IFRS 1 First-time adoption of international financial reporting standards Reg. 1136/2009, Reg.
1164/2009
IFRS 2 Share-based payments Reg. 1126/2008, Reg. 1261/2008, Reg. 495/2009
IFRS 3 Business combinations Reg. 495/2009
IFRS 4 Insurance contracts Reg. 1126/2008, Reg. 1274/2008, Reg. 1165/2009
IFRS 5 Non-current assets held for sale and discontinued operations
Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009,
Reg. 494/2009, Reg. 1142/2009
IFRS 6 Exploration for and evaluation of mineral resources Reg. 1126/2008
IFRS 7 Financial instruments: disclosures
Reg. 1126/2008, Reg. 1274/2008, Reg. 53/2009, Reg. 70/2009, Reg.
495/2009, Reg. 824/2009, Reg. 1165/2009
IFRS 8 Operating segments Reg. 1126/2008, Reg. 1274/2008
SIC/IFRIC INTERPRETIVE DOCUMENTS ENDORSEMENT
IFRIC 1 Changes in existing decommissioning, restoration and similar liabilities Reg. 1126/2008, Reg. 1274/2008
IFRIC 2 Members’ shares in co-operative entities and similar instruments Reg. 1126/2008, Reg. 53/2009
IFRIC 4 Determining whether an arrangement contains a lease Reg. 1126/2008, Reg.
70/2009
75
IFRIC 5 Rights to interests arising from decommissioning, restoration and
environmental funds Reg. 1126/2008
IFRIC 6 Liabilities arising from participating in a specific market – waste
electrical and electronic equipment Reg. 1126/2008
IFRIC 7 Application of the recalculation method as per IAS 29 “Financial reporting in hyperinflationary economies”
Reg. 1126/2008, Reg. 1274/2008
IFRIC 8 Scope of IFRS 2 Reg. 1126/2008
IFRIC 9 Reassessment of embedded derivatives Reg. 1126/2008, Reg. 495/2009, Reg. 1171/2009
IFRIC 10 Interim financial reporting and impairment Reg. 1126/2008, Reg.
1274/2008
IFRIC 11 IFRS 2 – Group and treasury share transactions Reg. 1126/2008
IFRIC 12 Agreements for service under concession Reg. 254/2009
IFRIC 13 Customer loyalty programmes Reg. 1262/2008
IFRIC 14 IAS 19 – The limit on a defined benefit plan asset, minimum funding
requirements and their interaction
Reg. 1263/2008, Reg.
1274/2008
IFRIC 15 Agreements for property construction Reg. 636/2009
IFRIC 16 Hedging of a net investment in a foreign management scheme Reg. 460/2009
IFRIC 17 Distributions to shareholders of assets not represented by cash and
cash equivalents Reg. 1142/2009
IFRIC 18 Customer asset disposals Reg. 1164/2009
SIC 7 Introduction of the euro Reg. 1126/2008, Reg. 1274/2008, Reg. 494/2009
SIC 10 Government assistance – No specific relation to operating activities Reg. 1126/2008, Reg. 1274/2008
SIC 12 Consolidation – Special purpose entities (Vehicle companies) Reg. 1126/2008
SIC 13 Jointly controlled entities – Non-monetary contributions by venturers Reg. 1126/2008, Reg. 1274/2008
SIC 15 Operating lease incentives Reg. 1126/2008, Reg. 1274/2008
SIC 21 Income taxes – Recovery of revalued non-depreciable assets Reg. 1126/2008
SIC 25 Income taxes – Changes in the tax status of an enterprise or its shareholders
Reg. 1126/2008, Reg. 1274/2008
SIC 27 Evaluating the substance of transactions in the legal form of a lease Reg. 1126/2008
SIC 29 Supplementary disclosure – Service concession agreements Reg. 1126/2008, Reg. 1274/2008, Reg. 70/2009
SIC 31 Revenues – Barter transactions involving advertising services Reg. 1126/2008
SIC 32 Intangible assets – Web site costs Reg. 1126/2008, Reg.
1274/2008
In order to provide complete disclosure, supplementing that already described in the interim report for the period in question, a brief description is provided below of the new published
accounting standards or any changes following issue, during the fourth quarter, of certain
EU Regulations.
76
EU Regulation No. 1136/200933 introduces a new version of IFRS 1 both for the purpose of
simplifying the future first–time application by companies and eliminating a number of
transitory provisions which are now out-of-date.
EU Regulation No. 1142/200934 introduces the interpretation IFRIC 17 “Distributions to
shareholders of assets not represented by cash and cash equivalents” which provides
clarification and guidelines regarding the accounting treatment to be reserved for the
distribution of these assets such as, by way of example, tangible assets or shareholdings in other bodies.
EU Regulation No. 1164/200935 introduces the interpretation IFRIC 18 “Customer asset disposals” whose aim is to provide clarification and guidelines regarding the accounting of
the disposals of tangible asset elements which the companies receive from customers and
which must be used to connect the customer to a network or ensure them on-going access
to the supply of goods and services. The standard provides guidelines for establishing
whether these elements satisfy the definition of asset and, if this definition is satisfied, how the asset must be classified.
EU Regulation No. 1165/200936, amending the provisions of IFRS 7 “Financial instruments: disclosures” and IFRS 4 “Insurance contracts” introduces the need to provide greater detailed
disclosure with regard to the gauging of the fair value as well as the liquidity risk relating to
financial instruments.
In detail, the Regulation in question introduces disclosure obligations relating to the so-
called “hierarchy of the fair value” of the financial instruments, whose aim is to reflect the
relevance of the date used when carrying out the assessments. The hierarchical scale of the fair value is made up of the following levels:
• Level 1 – prices listed (not adjusted) on active markets for identical assets and
liabilities;
• Level 2 – input data different from the listed price as per Level 1 which can be
observed for the entity or the liability, both directly (as in the case of the prices), and
indirectly (in other words, in that they are derived from the prices); • Level 3 – input data relating to the asset or the liability which is not based on the
market data which can be observed (unobservable data).
EU Regulation No. 1171/200937 makes changes to IFRIC 9 “Reassessment of embedded derivatives” and IAS 39 “Financial instruments: recognition and measurement” for the
purpose of clarifying the handling of derivative financial instruments embedded in other
contracts when a hybrid financial asset is classified outside the category of financial assets
held for trading with the impact of the changes in value on the income statement. The new
provisions lay down that if at the time of reclassification, the entity is not able to separately assess the embedded derivative which must be separated off, the reclassification is not
permitted and the hybrid contract continues to be classified under “financial assets held for
trading”.
EU Regulation No. 1293/200938 which introduces an amendment to IAS 32 “Financial instruments: presentation” for the purpose of clarifying how to record certain rights when the
instruments issued are denominated in a currency other than the issuer’s reporting
currency. In essence, by means of a supplement to section 11, it is now envisaged that the right to
acquire a specific number of capital instruments of the entity in exchange for a set value,
denominated in any currency, is a capital instrument if the entity offers the right
proportionally to all the shareholders of a same class of capital instruments. The previous
provisions would have meant that this right denominated in a currency other than the
reporting one was classified as a liability (derivative), and not as equity, because this
33 Mandatory adoption as from 2010. 34 Mandatory adoption as from 2010. 35 Mandatory adoption as from 2010. 36 Mandatory adoption as from 2009. 37 Mandatory adoption as from 2009. 38 Mandatory adoption as from 2011.
77
classification does not reflect the “fixed against fixed” ratio (due to the exchange rate
fluctuations) necessary for the classification as capital.
A.2 – Part Relating to the Main Financial Statement Items
Below are the recognition, classification, valuation and derecognition criteria adopted for the main financial statement items.
Financial assets and liabilities held for trading
Definition of financial assets and liabilities held for trading
An asset or liability is classified as held for trading (so-called Fair Value through Profit or Loss - FVPL) and recorded in item 20 “Financial assets held for trading” or item 40
“Financial liabilities held for trading” if it is:
purchased or held primarily to be sold or repurchased in the short term;
part of a portfolio of identified financial instruments that are managed collectively and for which evidence exists of a recent and effective strategy to achieve a profit
over the short term;
a derivative (with the exception of a derivative that is a designated and effective hedging instrument – refer to following paragraph).
The Bank recognised the current bonds held for trading and repurchase agreements under
“Financial assets held for trading”.
Derivative financial instruments
A derivative is a financial instrument or other contract having the following characteristics:
its value changes in relation to the change in an interest rate, the price of a financial instrument or a commodity, the exchange rate of a foreign currency, a price or rate
index, creditworthiness, credit ratios or other pre-established variables;
it does not require a net initial investment or requires a lower net initial investment that would be required for other types of contracts from which one would expect a
similar effect from changes in market factors;
it is settled at a future date.
The Bank holds derivative financial instruments both for trading and hedging (for the latter, refer to the subsequent specific paragraph). All trading derivatives are recognised at an
initial value equivalent to the fair value, which generally coincides with the cost.
Subsequently, the derivative contracts are measured at fair value, equal to the value that
the Bank would pay or collect if it were to cancel the derivative contract at the time of
valuation. Every change in the fair value is ascribed to the income statement under item 80 "Net profit (loss) from trading activities".
Fair value is determined by applying the methods described in the successive paragraph
“Measurement criteria”.
Embedded derivative financial instruments
An embedded derivative financial instrument is defined as the component of a hybrid
(combined) instrument that also includes a non-derivative host contract with the effect that
some of the cash flows of the combined instrument vary in a similar way to a stand-alone
derivative. The implicit derivative is separated from the host contract and recorded as a
stand-alone derivative if and only if:
the economic characteristics and risks of the embedded derivative are not strictly correlated to the economic characteristics and risks of the host contract;
a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative;
the hybrid (combined) instrument is not recognised under financial assets or liabilities held for trading.
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Fair value of the unembedded derivative is determined by applying the methods described in
the successive paragraph “Measurement criteria”.
Recognition criteria
Assets and liabilities held for trading are recognised at the settlement moment if they are
debt securities or equities, or at the subscription date if they are derivative contracts, at a
value equivalent to the cost intended as the instrument’s fair value, without considering any
costs or revenue from transactions directly attributable to said instruments.
Measurement criteria
Following the initial recognition, the financial instruments in question are measured at fair
value, with changes ascribed to the income statement under item 80 “Net profit (loss) from
trading activities”. The fair value of assets and liabilities of a trading portfolio is based on prices quoted on active markets or internal measurement models generally used in financial
practice and described below.
Fair value calculation methods
Securities: listed and unlisted
The fair value of securities listed on active markets is calculated based on reference market
quotations (or those with the highest trading volume) inferred from the international
provider and indicated on the last reference day for the financial year or reference period. A
market is defined as active if the quotations reflect normal market transactions, are readily and regularly available and express the price for effective and normal market transactions.
The fair value of unlisted securities is calculated by applying measurement techniques that
determine the price that the instrument would have had on the valuation date in a free
exchange under normal commercial considerations. The fair value calculation is obtained by
applying various methods at international market level and internal measurement models. In particular, for unlisted bonds, models that discount future expected cash flows are
applied - using interest rate structures that consider the business sector to which the issuer
belongs and the rating class, if available – and option pricing models. Equities use prices
inferred from similar transactions, market multiples of directly comparable companies, as
well as liability, income and mixed measurement models.
Derivatives: listed and unlisted
The fair value of listed derivatives is calculated based on prices inferred from active markets.
The fair value of unlisted derivatives is calculated by applying discounted cash flow models
that weigh the credit risk associated with the financial instrument. For derivatives traded with institutional counterparties, in consideration of CSA agreements designed to mitigate
credit risk, this risk can be considered null.
Derecognition criteria
Assets and liabilities held for trading are derecognised from the balance sheet when the
contractual rights on the cash flows deriving from the financial assets or liabilities expire or
when the financial asset or liability is sold, essentially transferring all risks and benefits
deriving from ownership. The profit or loss from the sale of financial assets or liabilities held
for trading is ascribed to the income statement in item 80 “Net profit (loss) from trading
activities”.
Available-for-sale financial assets
Definition
Available for Sale (AFS) assets are non-derivative financial assets that are designated as
such or not classified as:
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(1) loans and receivables (refer to subsequent paragraph);
(2) financial assets held to maturity (refer to subsequent paragraph);
(3) financial assets held for trading and valued at fair value recognised in the income
statement (refer to preceding paragraph).
These financial assets are recognised in item 40 “Available-for-sale financial assets”.
Recognition criteria
Available-for-sale financial assets are initially recognised when, and only when, the company becomes a party in the contractual clauses of the instrument, or at the settlement
moment, at fair value, which generally coincides with the cost. This value includes costs or
revenues directly connected with the instrument itself.
Recognition of available-for-sale financial assets may also derive from reclassification from
the “Held-to-maturity financial assets” category or, only in rare cases and only if the asset is
no longer held for sale or repurchase in the short term, from the “Financial assets held for trading” category; in this case, the value on recognition is equal to the fair value of the asset
at the moment of transfer.
Measurement criteria
Following initial recognition, the available-for-sale financial assets continue to be valued at
fair value with interest charged to the income statement (resulting from applying the
amortised cost) and changes in fair value ascribed to the balance sheet in item 130
“Valuation reserves”, with the exception of losses due to impairment, until the financial
asset is derecognised, at which time the total profit or loss previously recorded in the balance sheet is recognised in the income statement. Equities for which a reliable fair value
cannot be defined based on the described methods are recognised at cost.
At the end of each annual or interim reporting period, a check is made for objective evidence
of impairment that, in the case of equities, is considered significant or lasting.
With reference to the significance of the impairment, significant signs of impairment are considered to exist when the market value of the security is lower by more than 35% with
respect to the original purchase cost. In this case, steps are taken – without further analysis
– to record the impairment in the income statement. In the event of impairment to a lower
extent, the impairment is only recorded if the valuation of the security carried out on the
basis of its fundamentals does not confirm the solidity of the company or its income-earning
prospects. With regard to the durability of the impairment, this is defined as prolonged if the fair value
continually remains under the value of the original purchase cost for a period of more than
18 months: in this case, steps are taken to record the impairment in the income statement
without further analysis. In the event the fair value continues to remain under the value of
the original purchase cost for periods of less than 18 months, the most appropriate reference timescale is identified also in consideration of the fact that the impairment is
attributable to a generalized negative stockmarket trend rather than the specific
performance of the individual counterpart.
In the event of impairment, the cumulative change, previously recorded in the
aforementioned balance sheet account, is ascribed directly to the income statement in item 130 “Net adjustments/value recoveries due to impairment on b) available-for-sale financial
assets”.
The impairment is recorded at the moment in which the acquisition cost (net of any capital
or amortisation reimbursement) of an available-for-sale financial asset exceeds its
recoverable value. Any value recoveries, which are possible only following elimination of the reasons that caused the impairment, are recorded as following:
if referring to equity investments, with a balancing entry to the balance sheet reserve;
if referring to debt instruments, they are recorded in the income statement in item 130 “Net adjustments/value recoveries due to impairment on b) available-for-sale
financial assets”.
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In any event, the amount of the reversal cannot exceed the amortised cost that the
instrument would have recorded at that point, had the previous impairment not occurred.
In relation to the fact that the Bank applies IAS 34 “Interim financial reporting” to the interim financial reports, with the consequent identification of a six-monthly interim period,
any impairment recorded is logged at the end of the period.
Fair value calculation methods
Please refer to the description in the paragraph “Financial assets and liabilities held for
trading”.
Derecognition criteria
Available-for-sale financial assets are derecognised from the balance sheet when the
contractual rights on the cash flows deriving from the financial assets or liabilities expire or
when the financial asset or liability is sold, essentially transferring all risks and benefits
deriving from ownership. The profit or loss from the sale of available-for-sale financial assets
is ascribed to the income statement in item 100 “Profits (losses) on disposal or repurchase of
b) available-for-sale financial assets. In the event of derecognition, any corresponding amount previously charged to the balance sheet item 130 “Valuation reserves” is reversed
and recorded in the income statement.
Loans and Receivables
Definition
Loans and receivables (L&R) are defined as non-derivative financial assets with fixed or
determinable payments that are not listed on an active market. With the exception of:
a) those that are intended to be sold immediately or over the short term, which are
classified as held for trading, and those recorded at the moment of initial recognition
at fair value and ascribed to the income statement; b) those initially recorded as available-for-sale;
c) those for which the owner cannot essentially recover all of the initial investment for
reasons other than impairment losses; in this case they are classified as available-
for-sale.
Loans and receivables are recorded in item 60 “Loans to banks” and 70 “Loans to customers”.
The Bank includes the financing to customers and banks under loans, whether directly
granted or acquired from third parties; commercial loans, repurchase agreements, loans
from financial lease transactions and factoring and interest-bearing postal coupons are also
included in this category.
Recognition criteria
Loans and receivables are initially recorded in the financial statements when the company
becomes a party in a financing contract or when the creditor purchases the right to payment of the agreed contract amounts. This moment corresponds with the loan granting
date.
Recognition is this category can also result from reclassification of the “Available-for-sale
financial assets” category or, only in rare cases and only if the asset is no longer held for
sale or repurchase over the short term, from the “Financial assets held for trading” category.
The initially recognised value is equivalent to the fair value of the financial instrument that corresponds to the amount granted including costs or revenues directly ascribable to the
instrument and determinable from the beginning, independent of the moment in which it is
repaid. The initially recognised value does not include all charges that are subject to
reimbursement by the debtor counterparty or are not ascribable to internal costs of an
administrative nature.
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If the recognition is a result of reclassification, the asset’s fair value at the moment of
transfer is assumed as the new measure of the amortised cost of the asset.
For loans and receivables not granted at arm’s length, the initial fair value is calculated by
applying appropriate measurement techniques described subsequently; in this event, the
difference between the calculated fair value and the amount loaned is recorded directly in the income statement in the interest item.
Contango contracts and repurchase agreements with the obligation to repurchase or resell
forward are recorded in the financial statements as funding or lending transactions.
Specifically, spot sales or forward repurchase transactions are recorded in the financial
statements for the amount received in cash, while spot purchase or forward resale
transactions are recorded for the amount paid in cash.
Measurement criteria
Loans and receivables are valued at amortised cost using the effective interest criteria.
The amortised cost of a financial asset or liability is the value at which it was measured upon initial recognition net of capital reimbursements, increased or decreased for total
amortisation using the effective interest criteria on any differences between the initial value
and the expiration value, and reduced for any impairment or irrecoverability.
The effective interest criteria is the amortised cost calculation method of a financial asset or
liability (or group of financial assets or liabilities) and distribution of the interest income or expense over the relative duration. The effective interest rate is the rate that precisely
discounts the future payments or collections over the expected life of the financial
instrument. In order to calculate the effective interest rate it is necessary to value the cash
flows considering the contractual terms of the financial instrument (for example, the
advance payment, a purchase option or similar). The calculation includes all charges and
basis points paid or received between the contractual parties that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts.
At the end of each annual or interim reporting period, a check is made to determine if a
financial asset or group of assets has become impaired. This occurs when it is foreseeable
that the company is not able to repay the amount owed, based on the original contract terms or, for example, in the presence of:
a) significant financial difficulty of the issuer or debtor;
b) a violation of the contract, such as default or a missed interest or capital payment;
c) the fact that the financier for economic or legal reasons related to financial
difficulties of the borrower, makes a concession to the borrower that the financier
would not otherwise have made; d) the likelihood that the borrower will declare financial restructuring procedures;
e) the loss of an active financial market for the financial asset due to financial
difficulties;
f) data that indicates a marked reduction in estimated future cash flows for a group of
similar financial assets from the moment of the initial recognition of those assets, even if the reduction cannot yet be identified with the individual financial assets in
the group.
Non-performing loans (loans that, based on definitions assigned by Bank of Italy, are non-
performing, impaired, restructured, or past due including exposures overrun by between 90
and 180 days guaranteed by properties) are valued according to analytic methods. The remaining loans are valued based on collective techniques, grouping them into similar risk
classes.
The criteria for determining the write-downs required for non-performing loans are based on
the discounting of expected future cash flows for principal and interest, considering any
guarantees given or advances received. The key elements for determining the present value of cash flows, are represented by the estimated receipts, the related maturity dates and the
discount rate to be used. The extent of the loss is equal to the difference between the
carrying value of the asset and the current value of expected future cash flows, discounted
at the original effective interest rate.
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Valuation of performing loans (performing positions and exposures subject to country risk)
regard asset portfolios for which there has been no objective evidence of loss and that are
therefore subject to collective valuation. Historical loss rates are applied to the estimated
cash flows generated by assets grouped into uniform classes with similar characteristics in
terms of credit risk.
Impairment adjustments on performing loans were estimated using the evaluation
methodology based on Basel II regulations for all of the Group’s network banks.
Specifically the PD (probability of default) and LGD (loss given default) were determined
based on time series calculated on the aggregate total of the network banks. This method
guarantees an accurate representation of the total credit risk inherent in the loan portfolio, but does not adequately reflect the specifics of individual network banks. In fact, in the
current UBI Group context, the cost of credit quality and the run-off rate are not yet
standardised mainly due to differences in management practices and processes and credit
monitoring. Therefore, for the purpose of more fully representing the specifics of the
individual banks on a consistent basis with the effective portfolio risk, a method was adopted for allocating the total impairment adjustments relating to the segment of the
network banks, on the basis of the individual specifics represented by the times series of the
losses and the run-off rates.
The collective method is also applied for exposures subject to country risk or unsecured
loans to residents in countries that have difficulties servicing debt. These loans do not include impaired positions for which the analytic method described above is applied.
Impairments are immediately recorded in the income statement in item 130 “Net
adjustments/value recoveries due to impairment on a) loans” as are value recoveries for all
or part of the previous write-down. Value recoveries are recorded for both improved credit quality which results in the reasonable certainty of timely recovery of capital and interest,
based on the original loan terms, as well as due to the gradual reduction of the discounting
calculated at the moment of the impairment recognition. In the event of collective valuation,
any additional impairment adjustments or value recoveries are recalculated differentially
with reference to each performing loan at the valuation date.
Fair value calculation methods
The fair value of loans and receivables is calculated considering future cash flows,
discounted at existing replacement rates or market rates as at the valuation date relative to
a position with similar characteristics to the loan subject to valuation. The fair value is calculated for all loans for disclosure purposes only. For loans and receivables subjective to
effective hedges, the fair value is calculated in relation to the hedged risk for valuation
purposes.
Derecognition criteria
Loans and receivables are derecognised from the financial statements when the contractual
rights to related cash flows expire or when the financial assets are sold with the essential
transfer of all risks and benefits deriving from ownership. Otherwise the loans and
receivables continue to be recognised in the financial statements, even if their legal title has
transferred to a third party, for an amount equal to the residual involvement. These assets are also derecognised from the financial statement when the Bank maintains
the contractual right to receive the related cash flows, but at the same time assumes the
contractual obligation to pay said cash flows to a third party.
The net profit or loss from the sale of loans and receivables is entered in the income
statement in item 100 “Profits (losses) on disposal or repurchase of a) loans”.
Hedging derivatives
Definition
Hedging transactions are undertaken to neutralise the losses arising from a certain element
(or group of elements) associated with a defined risk through profits recognised from a
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different element (or group of elements) in the event that particular risk should effectively
manifest itself.
The Bank performs the following hedges, which are properly accounted for and described
below:
Fair Value Hedge: the objective is to offset changes in the fair value of hedged assets or liabilities;
The derivative products stipulated with counterparties external to the company are
designated as hedging instruments.
Recognition criteria
Derivative hedging instruments, as with all derivatives, are initially recognised and
subsequently measured at fair value and classified in the balance sheet asset item 80
“Hedging derivatives” and balance sheet liabilities item 60 “Hedging derivatives”.
A relationship is defined as a hedge, and accounted for as such if, and only if, the following conditions are satisfied:
at the beginning of the hedge there is designation and formal documentation of the hedge relationship, the company objectives in managing the risk and the strategy in
carrying out the hedge. This documentation identifies the hedging instrument, the
element or transaction covered, the nature of the hedged risk and how the company
measures the effectiveness of the hedging instrument in mitigating exposure to fair
value changes of the covered element or of cash flows attributable to the covered risk;
the hedge is considered highly effective;
for cash flow hedges, the planned transaction to be hedged is highly likely and presents a exposure to changes in cash flow that may impact the income statement;
the effectiveness of the hedge can be reliably measured;
the hedge is valued based on continuity criteria and is considered highly effective for all the reference financial periods for which it was designed.
Methods for performing effectiveness tests
The hedge relationship is considered effective, and is properly accounted for, if at the
beginning and throughout its life changes in fair value or cash flows of the covered element,
associated with the hedged risk, are almost completely offset by changes in the fair value or
cash flows from the hedging derivative. This conclusion is reached if the effective result is
between 80% and 125%. An effectiveness test on the hedge is performed at the beginning through the prospective test
and upon preparation of the annual financial statements through the retrospective test; the
test result justifies the application of hedge accounting to the extent that it demonstrates
the expected effectiveness.
Additionally, a retrospective test is performed each month on a cumulative basis that has the objective of measuring the effectiveness of the hedge achieved during the reference
period and thereby verifying that over the period the hedge relationship was effective.
Derivative financial instruments that are considered hedges from an economic point of view,
but do not satisfy the requirements so as to be considered effective hedging instruments, are
recorded in items 20 “Financial assets held for trading” and 40 “Financial liabilities held for
trading” and the economic effects in the corresponding item “80 Net profit (loss) from trading activities”.
For a description of methods used to calculate the fair value of derivatives, please refer to
the section “Financial assets and liabilities held for trading”.
Measurement criteria
Fair value hedges
Fair value hedges are recorded as follows:
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the profit or loss resulting from the hedging instrument’s measurement at fair value is recorded in the income statement in item 90 “Net profit (loss) from hedging
activities”;
the profit or loss on the hedged element associated with the hedged risk adjusts the carrying value of the hedged element and is immediately recognised in the income
statement in the aforementioned item, regardless of the category of the hedged asset
or liability.
The hedge accounting ceases in perspective in the following cases:
1. the hedging instrument reaches maturity, is sold, transferred or exercised;
2. the hedge no longer satisfies the criteria for hedge accounting as described above;
3. the company revokes the designation.
In sub-case 2, if the hedged asset or liability is valued at amortised cost, the higher or lower
value deriving from its fair valuation because the hedge became ineffective, is ascribed to
the income statement based on the effective interest rate method in effect at the moment the
hedge is revoked.
Methods used to calculate the fair value of risk covered by hedged assets and liabilities are
described in the sections commenting on available-for-sale financial assets, loans and receivables.
Hedging asset and liability portfolios
The hedging of asset and liability portfolios (macro-hedging) and the associated accounting representation is based on:
identifying the hedged portfolio and dividing it by maturity date; designating the hedged item;
identifying the interest rate risk of the hedged item;
designating the hedging instrument;
determining its effectiveness.
The portfolio that is hedged for interest rate risk may include both assets and liabilities.
This portfolio is divided up on the basis of the forecasted maturity dates for collections or
revaluations of the interest rate upon analysis of the cash flow structure.
Changes in fair value of the hedged assets and liabilities are recorded in the income
statement in item 90 "Net profit (loss) from hedging activities” and in the balance sheet in either item 90 “Fair value changes to hedged financial assets” or item 70 “Fair value
changes to hedged financial liabilities”.
Changes in fair value of the hedging instrument are recorded in the income statement in
item 90 “Net profit (loss) from hedging activities” and in either balance sheet assets in item
80 “Hedging derivatives" or in liabilities under item 60 “Hedging derivatives”.
Equity investments
Definition
Equity investments in subsidiaries
Subsidiaries are defined as companies in which the Bank exercises control. This condition
exists when the Bank has the power to make, either directly or indirectly, administrative or
management decisions for the business such as to be able to derive related benefits. To
determine the existence of control, the presence of potential, immediately exercisable voting
rights were evaluated. Equity investments in subsidiaries are included in the financial statements on the date at which control begins for as long as the control exists. Equity
investments in subsidiaries are valued under the cost method.
Equity investments in associated companies
Associated companies are defined as those in which the investing company holds at least
20% of the voting rights or over which the investing company has significant influence and
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is not a subsidiary or a jointly controlled company. Significant influence is the power to
participate in creating the financial and management policy of the associated company
without having control or joint control. Equity investments in associated companies are
valued under the equity method.
Equity investments in jointly controlled companies
Jointly controlled companies are defined as companies governed by a contractual agreement
in which two or more parties initiate an economic activity under joint control.
Equity investments in jointly controlled companies are recorded in the financial statements using the equity method or the proportional method.
Recognition and measurement criteria
This item includes investments in directly controlled companies and/or associated companies, as well as minority shareholdings in subsidiaries and/or associated companies
belonging to other Group companies, which are stated in the financial statements at cost.
Minority shareholdings held by the bank are included under “Available-for-sale financial
assets” which are accounted for according to the method described above.
If there is objective evidence of impairment, the estimated recoverable value of the investment is calculated taking account of the present value of expected future cash flows
that the investment may generate, including the final disposal value of the investment. If the
recoverable value is lower than the carrying value, the difference is recognised in the income
statement if it is deemed to be permanent. If the reasons for the impairment cease to exist
as a result of an event occurring after the impairment was recognised, the write-down is reversed in the income statement up to the maximum amount of the historical purchase
cost.
Derecognition criteria
Equity investments are derecognised when the contractual rights to the cash flows from
those financial assets expire or the financial assets are sold essentially transferring all the
risks and benefits of ownership related to the assets.
Tangible Assets
Definition of assets used in operations
Assets used in operations are defined as tangible assets owned so as to be used to perform
company business and whose use is assumed over a time period longer than the financial
year in question.
Definition of assets held for investment purposes
“Assets used for investment purposes” are those properties owned for the purpose of
generating lease payments or the appreciation of the invested capital. Consequently, a real
estate property investment differs from an asset held for use by the owners due to the fact
that it originates cash flows significantly differentiated from the other assets held by the Bank.
Tangible assets (for use in operations and held for investment) also included those
recognised further to financial lease contracts even if the legal title to the same remains with
the leasing firm.
Recognition criteria
Tangible assets, whether for functional use or otherwise, are initially recorded at cost (in
item 110 “Tangible assets”), including all costs directly connected with making them operational and non-recoverable duties and taxes on the purchase. This value is
subsequently increased for expenses incurred for which future benefits are expected. Costs
for ordinary maintenance performed on the asset are recorded in the income statement at
the moment in which they are incurred, as opposed to extraordinary maintenance
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(improvements) for which future benefits are expected, which are capitalised as an increase
to the asset’s value.
Improvements and expenses incurred to increase the value of leased assets from which
future benefits are expected are recognised:
if they are independent and can be separately identified, in item 110 "Tangible assets” under the most appropriate category, whether they are third-party assets used under an ordinary lease contract or assets held under a finance leasing
contract.
if they are not independent and cannot be separately identified, in item 110 "Tangible assets”, as an increase to the asset to which they refer, if used under an
finance leasing contract or in item 150 “Other assets” if they refer to assets used
under an ordinary lease contract.
The cost of a tangible asset is recorded as an asset if, and only if:
it is likely that future economic benefits associated with the asset will flow to the company;
the asset cost can be reliably determined.
Measurement criteria
Following the initial recognition, tangible assets used in operations are recorded at cost, as
defined above, net of accumulated depreciation and any cumulative impairment.
Depreciation, equal to the cost less the residual value (or the amount expected to be
obtained on sale under normal conditions, less any expected sale costs, if the asset were in
the condition expected at the end of its useful life, including its age) is systematically divided
over the asset’s useful life using the straight-line method. The useful life, which is subject to periodic review in order to note any estimates that differ significantly from the previous
ones, is defined as:
the time period over which the asset is expected to be useful to the company, or
the quantity of products or similar units the company expects to obtain from the use of said asset.
Given that tangible assets may include components with different useful lives, land is not
subject to depreciation as it is a fixed asset with an indefinite useful life, whether it is independent or included in a building value. The value attributable to land is separated
from the total value of the property in proportion to the ownership percentage for all
buildings. Buildings are depreciated based on the above criteria.
Works of art are not subject to depreciation, as their value is expected to increase over time.
Depreciation of an asset begins when the asset becomes available for use and ceases when the asset is removed from this category, which corresponds to the more recent date between
the date the asset is classified for sale and the date of derecognition. As a result,
depreciation does not cease when the asset is idle or is no longer in active use, unless the
asset has already been fully depreciated.
Improvements and expenditure that increase the value of the assets are depreciated:
if they are independent and can be separately identified, according to the estimated useful life described above;
if they are not independent and cannot be separately identified, in the event of assets used on the basis of an ordinary lease contract, according to the shorter period
between that when the improvements and expenses can be used and that of the
unexpired term of the lease, also considering any individual improvement, or, if the
assets are under a finance lease contract, according to the expected useful life of the
assets concerned.
The depreciation of improvements and expenses to increase the value of third party assets
recognised under item 150 “Other assets” is recorded under item 190 “Other operating
income (expense)”.
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At the end of each annual or interim reporting period, a check is performed for any
indications of asset impairment. Impairment is the difference between the carrying value of
the tangible asset and the lower recovery value. The latter is the greater between the fair
value, net of any sales costs, and the related value in use, or rather, the current value of the
asset’s future cash flows. The impairment is immediately recognised in the income statement in item 170 “Net adjustments/value recoveries on tangible assets”. This item also
includes any future recoveries if the reason for the previous impairment no longer applies.
Definition and calculation of fair value Properties
Fair value is calculated in reference to the market value, or the best price at which the sale of a property asset may reasonably consider itself to be concluded without conditions
against a cash fee, at the valuation date, assuming:
the seller and buyer are independent counterparties;
the selling party has the real intention of disposing of the assets;
there is a reasonable time period (considering the type of asset and the market conditions) to carry out the appropriate marketing, agree on price and the conditions
necessary to conclude the sale;
the market trend, the value and other economic conditions at the stipulation date of the preliminary sales contract are identical to those existing at the valuation date;
any offers by purchasing parties with characteristics that could be deemed "not at arm's length" are not taken into consideration.
Methods adopted to calculate market value are as follows:
direct comparison method or market method, based on comparing the asset in question with other similar assets sold or currently on offer on the same market or
trading forum;
income method based on the current value of potential income of a similar asset, obtained by capitalising the income at a market rate.
The methods described above are performed independently and the values obtained are
appropriately intermediated.
Calculating land value
The method used for identifying the percentage of market value attributable to land is based
on analyses of the location of the fixed asset, considering the construction type, state of
maintenance and the cost to entirely rebuild the fixed asset.
Tangible assets purchased under finance leases
Finance leases are contracts that essentially transfer all risks and benefits deriving from
ownership of the asset. The right of ownership may or may not be transferred at the end of
the contract term.
The beginning of the lease is the date on which the lessee is authorised to exercise his right to use the leased asset and therefore corresponds to the date of the initial recognition of the
lease.
At the moment the contract begins, the lessee records finance lease transactions as assets
and liabilities in the financial statements at the fair value of the leased asset or, if lower, the
current value of the minimum payments owed. To calculate the current value of the minimum payments owed the discount rate used is the implicit contractual interest rate, if
determinable, otherwise the lessee’s marginal financing interest rate is used. Any initial
direct costs incurred by the lessee are added to the amount recognised for the asset.
The minimum payments owed are divided between finance costs and reduction of the
residual liability. The former are divided over the life of the contract in order to determine a constant interest rate on the residual liability.
Under a finance lease, the depreciation expense for the contractual asset and the financial
charges for each period are recorded. The depreciation criteria used for leased assets is
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consistent with that adopted for owned assets; please refer to the appropriate section for
further details.
Derecognition criteria
A tangible asset is derecognised from the balance sheet when disposed of or when the asset
is permanently withdrawn from use and no future benefits are expected. Any gains or losses
resulting from the sale or disposal of tangible assets, equivalent to the difference between
the net sales amount and the carrying value of the asset, are recognised in the income
statement in item 240 “Profits (losses) on disposal of investments”.
Intangible Assets
Definition
An asset is defined as intangible if it is not monetary, identifiable, has no physical
composition and is used in performing company business. The asset is identifiable if:
it is separable, or able to be separated or unincorporated and sold, transferred, licensed, leased or exchanged;
results from contractual rights or other legal rights independent of the fact that these rights are transferable or separable from other rights and obligations.
The asset, under these circumstances, is defined as being controlled by the company as a
result of past events and under the assumption that through its use economic benefits will flow to the company. The Bank controls an asset if it has the power to make use of the
future economic benefits deriving from the resource in question and, furthermore, may limit
access to said benefits to third parties.
Future economic benefits deriving from an intangible asset may include revenue from the
sale of products or services, cost savings or other benefits resulting from the Bank's use of the asset.
An intangible asset is recognised if, and only if:
a) it is likely that the company will receive the expected future economic benefits from
the asset;
b) the asset’s cost can be reliably measured.
The likelihood of deriving future economic benefits is measured using reasonable and
sustainable assumptions that represent the best estimate of all economic conditions that
will exist over the useful life of the asset.
The degree of likelihood connected with the flow of future economic benefits attributed to the use of the asset is measured based on available sources of information at the time of
initial recognition, giving greater weight to external information sources.
The Bank considers goodwill and software benefiting future periods to be intangible assets.
Intangible assets with defined useful lives
An asset with a defined useful life is one for which it is possible to estimate the time period
within which the related economic benefits will be produced.
Intangible assets recorded include software which is considered to have a defined useful life.
Intangible assets with undefined useful lives
An asset with an undefined useful life is one for which it is not possible to reliably estimate
the period during which the related economic benefits will be produced for the company.
Assigning an undefined useful life to an asset is not the result of having already planned
future expenses that, over time, will restore the standard performance level of the asset, prolonging its useful life.
Goodwill is considered to have an undefined useful life.
Recognition criteria
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The asset, recorded in the balance sheet in item 120 "Intangible assets", is recognised at
cost and any subsequent expenses after the initial recognition are capitalised only if they
generate future economic benefits and only if the expenses can be reliably determined and
attributed to the asset.
The intangible asset’s cost includes:
the purchase price, including any non-recoverable duties and taxes on the purchase and net of any discounts or allowances;
any direct costs incurred to prepare the asset for use.
Measurement criteria
Following the initial recognition, an intangible asset with a defined useful life is recorded at
cost net of total amortisation and any impairment. Amortisation is calculated systematically on a straight-line method over the useful life of the asset (refer to the definition in "Tangible
Assets”).
Amortisation begins when the asset is available for use and ceases on the date the asset is
derecognised.
Intangible assets with undefined useful lives (such as goodwill, as defined in the following
section if positive) are recorded at cost net of any impairment verified by periodic tests
carried out to check the adequacy of the carrying value of the asset (see following section).
For these assets, amortisation is consequently not calculated.
An intangible asset resulting from research (or the research phase of an internal project) is
not recognised. Research expenses (or expenses for the research phase of an internal
project) are recorded as costs when they are incurred.
An intangible asset resulting from development (or the development phase of an internal project) is recognised if, and only if, the following can be demonstrated:
a) the technical feasibility of completing the intangible asset so as to be available for
use or sale;
b) the company’s intention to complete the intangible asset for use or sale;
c) the company’s ability or use or sell the intangible asset.
At the end of each annual or interim reporting period, a check is performed for any
indications of impairment on intangible assets. Impairment is the difference between the
carrying value of the asset and the recoverable value, and is recorded, as are any value
recoveries, in item 180 “Net adjustments/value recoveries on intangible assets” with the
exception of impairment related to goodwill, which is recorded in item 230 “Net adjustments to goodwill”.
Goodwill
Goodwill is defined as the difference between the purchase price and the fair value of assets and liabilities acquired during a business combination that consists of joining businesses or
distinct business activities in a single company responsible for preparing the financial
statements. The result of almost all company mergers is the fact that only one company, the
purchaser, obtains control of one or more distinct business activities as a result of the
purchase. When a company acquires a group of activities or net assets that do not
constitute a business activity, the company allocates the cost of the total of the individual identifiable assets and liabilities based on the related fair value on the purchase date.
A business combination may result in a equity investment link between the parent company
and the subsidiary in which the purchaser is the parent company and the acquired
company is a subsidiary of the purchaser.
All business combinations are accounted for under the purchase method.
The purchase method involves the following stages:
a) identifying the purchaser (the purchaser is the aggregating business that obtains
control of the other businesses or aggregate business activities);
90
b) determining the cost of the business combination;
c) allocating the cost of the business combination to the purchased assets as well as
liabilities and potential liabilities undertaken, at the purchase date.
With the purchase method, the purchaser calculates the cost of a business combination as the total of:
a) the fair values, at the exchange date, of the transferred assets, the liabilities incurred
or undertaken and the instruments representing capital issued by the purchaser, in
exchange for control of the purchased company;
b) any cost directly attributable to the business combination.
Merger transactions with subsidiaries or companies belonging to the same group are
recorded on a consistent basis with the verification of the significant economic substance of
the transactions.
In application of this principle, goodwill deriving from such transactions is recorded:
a) in item 120 of the balance sheet assets in the event significant economic substance is verified;
b) otherwise, as a deduction to shareholders’ equity.
Allocation of the business combination costs to assets acquired and liabilities and potential liabilities undertaken
The purchaser:
a) records the goodwill acquired in a business combination as an asset;
b) gauges said goodwill at cost, in that it constitutes the surplus of the business
combination cost compared to the purchaser’s interest in the fair value of the
identifiable assets, liabilities and potential liabilities.
Goodwill acquired in a business combination represents a payment made by the purchaser
in expectation of future economic benefits deriving from assets that cannot be individually
identified and separately recognised.
After initial recognition, the purchaser values goodwill acquired in a business combination at cost, net of accumulated impairment.
Goodwill acquired in a business combination is not amortised. However, the purchaser
must annually check if the goodwill has suffered impairment, or more frequently if specific
events or changed circumstances indicate the possibility of an impairment, based on the
specific provisions in the accounting standard.
The standard states that an asset (including goodwill) has suffered impairment if the relative carrying value is greater than the recoverable value, the latter being the greater between the
fair value less sales costs, and the value in use, defined in section 6 of IAS 36.
In order to verify impairment, goodwill must be allocated to a unit generating cash flows, or
a group of units, within the maximum aggregation constraints that cannot go beyond the
operating segments identified in IFRS 8.
Negative goodwill
If the purchaser's share of the net fair value of the identifiable assets, liabilities and potential liabilities exceeds the business combination cost, the purchaser:
a) reviews the identification and measurement of the identifiable assets, liabilities and
potential liabilities and the calculation of the business combination cost;
b) immediately recognises in the income statement any residual surplus after the new
measurement.
Derecognition criteria
The intangible asset is removed from the financial statements following disposal or when no
future economic benefit if expected from its use or disposal.
Amounts Payable, Securities issued (and Subordinated Liabilities)
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The various forms of interbank and customer funding are included in the financial
statements under items 10 “Due to banks", 20 “Due to customers” and 30 “Securities
issues”. These items include liabilities for finance leases recorded by the lessee.
Recognition criteria
The liabilities in question are recorded in the financial statements when the amounts are
collected or when debt securities are issued. The recorded value is the fair value including
any additional costs/revenues directly associated with the transaction and determinable
from the beginning, irrespective of the time they were settled. The initial value does not include charges that are subject to reimbursement by the creditor counterparty or that are
associated with internal costs of an administrative nature.
Measurement criteria
After initial recognition, financial liabilities are valued at amortised cost using the effective
interest method as defined in previous sections.
Derecognition criteria
Financial liabilities are derecognised from the financial statements when they are discharged or expired.
The repurchase of issued securities results in the derecognition of said securities and the
resulting redefinition of the liability for securities issued. Any difference between the
repurchase value of issued securities and the corresponding carrying value of the liability is
recorded in the income statement in item 100 “Profit (loss) on the disposal or repurchase of d) financial liabilities”. Any subsequent replacement of issued securities, which were
previously derecognised, results in a new issue with the consequent recognition at the new
placement price, without any income statement effect.
Tax Assets and Liabilities
Tax assets and liabilities are included in the balance sheet in items 130 “Tax assets" and 80 “Tax liabilities”.
Current tax assets and liabilities
Current period taxes and those of prior periods that have not been paid are recorded as liabilities. Any surplus compared to what is owed is recorded as an asset.
Current tax liabilities (assets) for the period underway and prior periods are calculated at
the value that is expected to be paid to/recovered from tax authorities, applying the tax
rates and tax regulations in force.
Current tax assets and liabilities are derecognised in the period in which the assets are realised or the liability is discharged.
Deferred tax assets and liabilities
All taxable timing differences are recorded as deferred tax liabilities, unless the deferred tax
liability derives:
from goodwill whose amortisation is not deductible for tax purposes, or
from the initial recognition of an asset or liability for a transaction that: is not a business combination and
does not influence the accounting profit or the taxable income at the time of the
transaction.
Deferred taxes are not calculated with regard to higher values of assets qualifying for
holdover tax relief related to equity investments and to reserves qualifying for tax relief if it
is deemed reasonable, at the present time, that the assumptions for their future taxation do
not apply.
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Deferred tax liabilities are recorded in the balance sheet in item 80 “Tax liabilities b)
deferred”.
For all deductible timing differences, a deferred tax asset is recorded if it is likely that
taxable income will be used against it, unless the deferred tax asset results from:
negative goodwill that is treated as deferred revenue;
initial recognition of an asset or liability for a transaction that: is not a business combination and does not influence the accounting profit or the taxable income at the time of the
transaction.
Prepaid tax assets are recorded in the balance sheet in item 130 “Tax assets b) prepaid”.
Prepaid tax assets and deferred tax liabilities are subject to constant monitoring and are measured based on tax rates that are expected to be applicable in the period in which the
tax asset will be realised or the tax liability will be extinguished, considering the tax law
currently in effect.
Prepaid tax assets and deferred tax liabilities are derecognised in the period in which:
the timing differences from which they originated become taxable in reference to deferred tax liabilities or deductible in reference to prepaid tax assets;
the timing difference from which they originated becomes irrelevant for tax purposes.
Prepaid tax assets and deferred tax liabilities are not discounted nor do they offset each
other, as provided by law.
Provisions for Liabilities and Charges
Definition
The provision is defined as a liability with an uncertain maturity or amount.
Conversely, a potential liability is defined as:
a possible obligation arising from past events, the existence of which will be confirmed by the verification or otherwise of one or more future events that are not totally under the Bank’s control;
a current obligation arising from past events that has not been recorded because: it is not likely that it will be necessary to use financial resources to settle the
obligation;
the amount of the obligation cannot be reliably determined.
Potential liabilities are not subject to accounting recognition as long as they are judged to be remote possibilities, but they are included for information purposes.
Recognition and measurement criteria
The provision is recognised in the financial statements if, and only if:
an obligation exists (legal or implicit) that is the result of past events;
to fulfil the obligation, the use of resources designed to produce economic benefits is likely to be necessary; and
a reliable estimate can be made of the amount required to fulfil the obligation.
The amount recognised as the provision represents the best estimate of the expense
required to settle the existing obligation at the balance sheet date and reflects risks and
uncertainties that inevitably characterise multiple factors and circumstances. The provision
amount represents the current value of the expenses that are assumed to be necessary to settle the obligation if the effect of the current value is relevant. Future factors that may
affect the amount required to settle the obligation are considered only if there is sufficient
objective evidence that these factors will apply.
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Provisions for liabilities and charges include risks from any tax disputes.
Derecognition criteria
The provision is reversed when the use of a resource designed to produce economic benefits
to settle the obligation becomes unlikely.
Foreign Currency Transactions
Definition
Foreign currency is a currency other than the Bank’s reporting currency, which is the
predominant currency in the environment in which the Bank operates.
Recognition criteria
On initial recognition, a foreign currency transaction is recorded in the reporting currency
by applying the spot exchange rate between the foreign currency and reporting currency in
force on the transaction date.
Measurement criteria
At each balance sheet date:
a) monetary elements39 in foreign currency are converted using the closing rate;
b) non-monetary elements40 that are valued at historical cost in foreign currency are
converted using the exchange rate on the transaction date; c) non-monetary elements that are valued at fair value in a foreign currency are
converted using the exchange rate on the date the fair value was determined.
Exchange differences resulting from settlement of monetary elements or the conversion of
monetary elements at rates other than those at which they were converted at initial
recognition in the current period or prior periods are recognised in the income statement for the period in which they originated.
When a profit or loss of a non-monetary element is recorded directly in shareholders’ equity,
each exchange component of the profit or loss is recorded directly in shareholders’ equity.
Similarly, when a profit or loss of a non-monetary element is recorded in the income
statement, each exchange component of the profit or loss is recorded in the income statement.
Other Information
- Provisions for guarantees granted and commitments
Provisions on an analytical and collective basis related to estimates of possible payments connected with credit risk inherent in the guarantees granted and commitments made are
determined by applying the same criteria as for loans.
These provisions are recorded in item 100 “Other liabilities” as a contra entry to income
statement item 130d “Net adjustment/value recoveries due to impairment on: other
financial transactions”.
- Employee benefits
Definition
Employee benefits are all types of remuneration paid by the company in exchange for the
work performed by employees. Employee benefits can be divided up as:
39 Elements represented by specific currency amounts or by assets and liabilities which must be collected or paid
for a specific currency amount are defined as “monetary”. The characteristic of a monetary element is therefore the right to receive or an obligation to pay a fixed or determinable number of currency units.
40 Conversely, see the matters stated for “monetary” elements.
94
short-term benefits (other than termination benefits due to employees and remuneration in the form of capital participation) entirely due within twelve months
from the end of the period in which the employees performed the work;
benefits due after the termination of the working relationship;
programmes for benefits following termination or agreements by which the company provides benefits following termination;
long-term benefits, other than the above, entirely due within twelve months following the end of the period in which the employees performed the work.
Staff severance indemnity
Recognition criteria
The staff severance indemnity recorded in the financial statements is considered to be a
defined benefits programme and requires the determination of the obligation’s value based on actuarial assumptions and discounting, given that the liability may be settled at a much
later date than the work was performed by the employee.
The amount recorded as a liability is equal to:
a) the current value of the defined benefit obligation at the balance sheet reference
date; b) plus any actuarial profits (less any actuarial losses) recorded in the appropriate
equity reserve;
c) less any pension expenses related to past work performed but not yet recorded;
d) less the fair value at the balance sheet reference date of any assets serving the plan.
Measurement criteria
The Bank chose to record actuarial profits/losses directly in shareholders’ equity under the
valuation reserves for the components.
“Actuarial profits/losses” include the adjustments for reformulating prior actuarial
assumptions based on effective experience or due to changes in the same assumptions.
The “Projected Unit Credit Method” was used for discounting, which considers each service
period as giving rise to an additional unit of staff severance indemnity so that each unit,
separately, is used to calculate the final obligation. This additional unit is obtained by
dividing the total service rendered by the number of years from the hiring date to the termination date. The application of this method includes projecting each future payment
based on historical statistical analyses, the demographic curve and financial discounting of
said flows based on market interest rates. The discounting rate used is determined as the
average of swap, bid, and ask rates at the reference date of the measurement appropriately
interpolated for intermediate maturities.
- Revenue
Definition
Revenues are gross inflows of economic benefits deriving from performing the business’
ordinary activities, when said inflows result in increases in shareholders’ equity other than
increases from shareholder contributions.
Recognition criteria
Revenues are valued at the fair value of the amount received or due and are recognised
when they can be reasonably estimated.
The result of a transaction to render services can be reasonably estimated when the
following conditions are satisfied:
the revenue amount can be reliably measured;
it is probable that the company will receive the economic benefits resulting from the transaction;
95
the state of completion of the transaction at the balance sheet date can be reliably gauged;
the costs incurred for the transaction and the costs to be incurred to complete it can be reliably calculated.
Revenues recognised for the rendering of services are recorded on a consistent basis with
the phase of completion of the transaction. Revenues are recorded only when it is likely that the economic benefits from the transaction
will flow to the Bank. When the recoverability of a value already included in revenues
becomes uncertain, the non-recoverable value, or the value whose recovery is no longer
likely, is recorded as a cost that adjusts the revenue originally recognised.
Revenues from third-party use of company assets that generate interest or dividends are recognised when:
it is probable that the company will receive the economic benefits resulting from the transaction;
the revenue amount can be reliably gauged.
Interest is recognised under a timing criteria that considers the effective asset yield. More
specifically:
interest income includes the amortisation value of any spreads, premiums or other differences between the initial carrying value for a security and its value on maturity;
default interest is recorded in item 10 “Interest income and similar revenues” for the portion considered recoverable.
Dividends are recorded in correlation with the shareholders’ right to receive the payment.
Costs or revenues from the trading of financial instruments, determined by the difference
between the amount paid or collected in the transaction and the fair value of the instrument, are recorded in the income statement when the financial instrument is
recognised only if the fair value is determined:
by referencing current and observable market transactions of the same instrument;
with measurement techniques that use as variables only data from observable markets.
- Costs
Costs are recognised when they are incurred using correlation criteria between costs and
revenues that directly and jointly emerge from the same transactions or events. Costs that
cannot be associated with revenues are recorded immediately in the income statement.
Costs directly attributable to financial instruments valued at amortised cost and determinable from the beginning, independent of when they were liquidated, flow to the
income statement by applying the effective interest rate method; please refer to the section
“Loans and Receivables” for further information.
Impairment losses are recognised in the income statement in the period in which they are
discovered.
96
A.3 – Disclosure on the fair value
Section A.3
Disclosure on the fair value
A.3.1 Transfers between portfolios
No portfolio reclassification of financial assets from categories valued at fair value to
categories valued at amortised cost has taken place.
A.3.2 Hierarchy of the fair value
The fair value used for the purpose of the valuation of the financial instruments is
determined on the basis of the criteria, indicated below on a hierarchical basis, which
suppose the use of so-called observable or unobservable input. The observable input are parameters developed on the basis of available market information
and reflect the assumptions that the market participants should use when they price the
financial instruments; by contrast, the unobservable inputs are parameters for which
market data is not available and which are therefore developed on the basis of the best
information available relating to the assumptions that the market participants should use
when they price the financial instrument.
Fair value determined on the basis of level 1 input:
This valuation is based on observable inputs or rather prices listed on active market for
identical financial instruments which the entity can access as of the instrument valuation
date. The market is defined as active when the prices expressed reflect normal market transactions, are regularly and immediately available and if said prices represent effective
and regular market transactions.
Fair value determined on the basis of level 2 input:
This valuation is carried out by means of methods which are used if the instrument is not
listed on an active market and is therefore based on different inputs to those of level 1. The valuation of the financial instrument is based on prices which can be taken from the market
listings of similar assets or by means of valuation techniques so that all the significant
factors – lending and liquidity spreads – are taken from parameters observable on the
market. Although a valuation technique is being applied, the resulting listing essentially
lacks discretionality since the most significant parameters used are drawn from the market and the calculation methods used replicate listings on active markets.
Fair value determined on the basis of level 3 input:
The valuation is carried out by means of methods which involve the development of the
unlisted instrument via the use of significant inputs which cannot be taken from the market
and therefore involve the adoption by management of estimates and assumptions.
97
A.3.2.1 Accounting portfolio: breakdown by fair value levels
Liv e llo 1 Liv e llo 2 Liv e llo 3 Liv e llo 1 Liv e llo 2 Liv e llo 3
1. Attività finanziarie de tenute per la nego ziazio ne 26.577 87.682 - 26.530 116.463 -
2. Attività finanziarie va luta te a l fa ir va lue - - - - - -
3. Attività finanziarie dis po nibili per la vendita 15.369 78 10.892 12.332 - 7.987
4. Deriva ti di co pertura - 75.128 - - 93.702 -
To ta le 4 1.9 4 6 16 2 .8 8 8 10 .8 9 2 3 8 .8 6 2 2 10 .16 5 7 .9 8 7
1. P as s ività finanziarie de tenute per la nego ziazio ne - 81.138 - - 106.579 -
2. P as s ività finanziarie va luta te a l fa ir va lue - - - - - -
3. Deriva ti di co pertura - 51.429 - - 50.101 -
To ta le - 13 2 .5 6 7 - - 15 6 .6 8 0 -
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A tt iv ità / P a s s iv ità f ina nzia rie m is ura te a l
fa ir v a lue
A.3.2.2 Changes during the year in financial assets valued at fair value (level 3)
1. Es is te nze in iz ia li - - 7 .9 8 7 -
2 . A um e nt i - - 3 .6 4 4 -
2.1. Acquis ti - - 3.152 -
2.2. P ro fitti imputa ti a : - - 1 -
2.2.1. Co nto Eco no mico - - - -
− di cui plusvalenze - - - -
2.2.2. P a trimo nio ne tto X X 1 -
2.3. Tras ferimenti da a ltri live lli - - - -
2.4. Altre variazio ni in aumento - - 491 -
3 . D im inuzio ni - - (7 3 9 ) -
3.1.Vendite - - (21) -
3.2. Rimbo rs i - - - -
3.3. P erdite imputa te a : - - (232) -
3.3.1. Co nto Eco no mico - - (94) -
− di cui minusvalenze - - (94) -
3.3.2. P a trimo nio ne tto X X (138) -
3.4. Tras ferimenti ad a ltri live lli - - - -
3.5. Altre variazio ni in diminuzio ne - - (486) -
4 . R im a ne nze f ina li - - 10 .8 9 2 -
A TTIVITA ' F IN A N ZIA R IE
v a luta te a l fa ir v a luedis po nibili pe r la
v e nditadi c o pe rtura
de te nute pe r la
ne g o zia z io ne
A.3.2.3 Changes during the year in financial liabilities valued at fair value (level 3)
These types of transactions do not exist within the Bank.
A.3.3 Disclosure on the so-called “day one profit/loss”
The disclosure refers to section 28 of IFRS 7 which deals with any differences between the price of the transaction and the values obtained by means of the use of valuation techniques
which emerge at the time of initial recognition of a financial instrument not recorded
98
immediately in the income statements on the basis of the matters envisaged by sections
AG76 and AG76A of IAS 39.
When such cases must be presented, the accounting policies adopted by the Bank for
booking the differences thus determined to the income statement, after initial recognition of
the instrument, must be indicated. Also taking into account the matters expressed in these notes, the Bank has not entered
into any transactions which give rise, on initial recognition of a financial instrument, to a
difference between the transaction price and the value of the instrument obtained by means
of an internal valuation technique.
99
Part B – Information on the Balance Sheet
ASSETS
Section 1 Cash and cash equivalents - Item 10 - 1.1 Cash and cash equivalents: composition
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
a) Cas s a 92.584 95.548
b) Depo s iti liberi pres s o Banche Centra li - -
To ta le 9 2 .5 8 4 9 5 .5 4 8
100
Section 2 Financial assets held for trading – Item 20 -
2.1 Financial assets held for trading: composition
Liv e llo 1 Liv e llo 2 Liv e llo 3 Liv e llo 1 Liv e llo 2 Liv e llo 3
A . A tt iv ità pe r c a s s a
1. Tito li di debito 26.576 5.588 - 26.530 5.382 -
1.1 Tito li s truttura ti - 27 - - 14 -
1.2 Altri tito li di debito 26.576 5.561 - 26.530 5.368 -
1. Tito li di capita le - 2 - - - -
3. Quo te di O.I.C.R - - - - - -
4. F inanziamenti - - - - - -
4.1. P ro nti co ntro te rmine a ttivi - - - - - -
4.2 Altri - - - - - -
To ta le A 2 6 .5 7 6 5 .5 9 0 - 2 6 .5 3 0 5 .3 8 2 -
B. Strumenti deriva ti
1. Deriva ti finanziari: 1 8 2 .0 9 2 - - 111.0 8 2 -
1.1 di nego ziazio ne 1 82.092 - - 111.082 -
1.2. co nnes s i co n la fair value o ptio n - - - - - -
1.3 a ltri - - - - - -
2. Deriva ti c reditizi: - - - - - -
2.1 di nego ziazio ne - - - - - -
2.2 co nnes s i co n la fair value o ptio n - - - - - -
2.3 a ltri - - - - - -
To ta le B 1 8 2 .0 9 2 - - 111.0 8 2 -
To ta le A +B 2 6 .5 7 7 8 7 .6 8 2 - 2 6 .5 3 0 116 .4 6 4 -
3 1/ 12 / 2 0 0 8Vo c i / Va lo ri
3 1/ 12 / 2 0 0 9
The item “Debt securities – Other” (1.1.2. Level 2) includes Lehman securities totalling
around 517 thousand euro.
101
2.2 Financial assets held for trading: composition by debtors/issuers
A . A TTIVITA ' P ER C A S S A
1.Tito li d i de bito 3 2 .16 4 3 1.9 12
a) Go verni e Banche Centra li 26.601 26.493
b) Altri enti pubblic i 89 53
c) Banche 4.956 4.845
d) Altri emittenti 518 521
2 . Tito li d i c a pita le 2 -
a) Banche - -
b) Altri emittenti: 2 -
- impres e di as s icurazio ni - -
- s o c ie tà finanziarie - -
- impres e no n finanziarie 2 -
- a ltri - -
3 . Quo te di O.I.C .R . - -
4 . F ina nzia m e nt i - -
a) Go verni e Banche centra li - -
b) Altri enti pubblic i - -
c ) Banche - -
d) Altri s o ggetti - -
To ta le A 3 2 .16 6 3 1.9 12
B . S TR UM EN TI D ER IVA TI
a) Banche
- fair value 9.923 38.274
b) Cliente la
- fair value 72.170 72.808
To ta le B 8 2 .0 9 3 111.0 8 2
To ta le (A +B ) 114 .2 5 9 14 2 .9 9 4
Vo c i / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
There are no equities issued by non-performing or impaired parties.
2.3 Financial assets held for trading: annual changes
Titoli di debito Titoli di capitale Quote di O.I.C.R. Finanziamenti Totale
Esistenze iniziali 31.911 - - - 31.911
B. Aumenti 408.155 309 - - 408.464
B.1 Acquisti 406.929 294 - - 407.223
B.2 Variazioni positive di fair value 481 2 - - 483
B.3 Altre variazioni 745 13 - - 758
C. Diminuzioni (407.902) (307) - - (408.209)
C.1 Vendite (407.742) (284) - - (408.026)
C.2 Rimborsi - - - - -
C.3 Variazioni negative di fair value (3) - - - (3)
C.4 Trasferimenti ad altri portafogli - - - - -
C.5 Altre variazioni (157) (23) - - (180)
D. Rimanenze finali 32.164 2 - - 32.166
102
Section 3 Financial assets at fair value - Item 30 -
These types of transactions do not exist within the Bank.
103
Section 4 Available-for-sale financial assets – Item 40 -
4.1 Available-for-sale financial assets: composition
Liv e llo 1 Liv e llo 2 Liv e llo 3 Liv e llo 1 Liv e llo 2 Liv e llo 3
1. Tito li di debito - - - - - -
1.1 Tito li s truttura ti - - - - - -
1.2 Altri tito li di debito - - - - - -
2. Tito li di capita le 15.369 - 10.892 12.232 - 7.987
2.1 Valuta ti a l fa ir va lue 15.369 - 4.687 12.232 - 2.971
2.2 Valuta ti a l co s to - - 6.205 - - 5.016
3. Quo te di O.I.C.R. - 78 - 100 - -
4. F inanziamenti - - - - - -
To ta le 15 .3 6 9 7 8 10 .8 9 2 12 .3 3 2 - 7 .9 8 7
Vo c i/ Va lo ri
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
4.2 Available-for-sale financial assets: composition by debtors/issuers
Vo c i / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1.Tito li d i de bito - -
a) Go verni e Banche Centra li - -
b) Altri enti pubblic i - -
c ) Banche - -
d) Altri emittenti - -
2 . Tito li d i c a pita le 2 6 .2 6 1 2 0 .2 19
a) Banche 15.540 12.403
b) Altri emittenti: 10.721 7.816
- impres e di as s icurazio ni 1.693 1.831
- s o c ie tà finanziarie 3.239 3.255
- impres e no n finanziarie 3.449 2.636
- a ltri 2.340 94
3 . Quo te di O.I.C .R . 7 8 10 0
4 . F ina nzia m e nt i - -
a) Go verni e Banche centra li - -
b) Altri enti pubblic i - -
c ) Banche - -
d) Altri s o ggetti - -
To ta le 2 6 .3 3 9 2 0 .3 19
Equities include:
– for 2009 – shares purchased following the partial conversion of the structured loan
exposure for a nominal value of 2,341 thousand euro;
– for 2008 - equities referring to a restructured counterpart for a nominal value of 192
thousand euro, written down for 98 thousand euro and closed in 2009 with the recording of a permanent impairment loss of 94 thousand euro.
104
4.3 Available-for-sale financial assets: assets subject to specific hedge
Available-for-sale financial assets represent minority shareholdings for which no hedge was
deemed necessary.
4.4 Available-for-sale financial assets: annual changes
Titoli di debito Titoli di capitale Quote di O.I.C.R. Finanziamenti Totale
Esistenze iniziali - 20.219 100 - 20.319
B. Aumenti - 6.781 18 - 6.799
B.1 Acquisti - 3.152 - - 3.152
B.2 Variazioni positive di FV - 3.138 18 - 3.156
B.3 Riprese di valore - - - - -
- imputate al conto economico - X - - -
- imputate al patrimonio netto - - - - -
B.4 Trasferimenti da altri portafogli - - - - -
B.5 Altre variazioni - 491 - - 491
C. Diminuzioni - (739) (40) - (779)
C.1 Vendite - (21) - - (21)
C.2 Rimborsi - - (40) - (40)
C.3 Variazioni negative di FV - (138) - - (138)
C.4 Svalutazioni da deterioramento - (94) - - (94)
- imputate al conto economico - (94) - - (94)
- imputate al patrimonio netto - - - - -
C.5 Trasferimenti ad altri portafogli - - - - -
C.6 Altre variazioni - (486) - - (486)
D. Rimanenze finali - 26.261 78 - 26.339
105
Section 5 Held-to-maturity financial assets- Item 50 -
These types of transactions do not exist within the Bank.
106
Section 6 Loans to banks – Item 60 -
6.1 Loans to banks: detailed analysis
Tipo lo g ia o pe ra zio ni/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A . C re dit i v e rs o ba nc he C e ntra li
1. Depo s iti vinco la ti - -
2. Ris erva o bbliga to ria - -
3. P ro nti co ntro te rmine a ttivi - -
4. Altri - -
B . C re dit i v e rs o ba nc he
1. Co nti co rrenti e depo s iti liberi 236.105 354.042
2. Depo s iti vinco la ti 6.781.810 3.074.248
3. Altri finanziamenti: 424.157 1.839.083
3.1 P ro nti co ntro te rmine a ttivi 363.323 1.780.901
3.2 Leas ing finanziario - -
3.3 Altri 60.834 58.182
4. Tito li di debito - 1.378
4.1 Tito li s truttura ti - -
4.2 Altri tito li di debito - 1.378
To ta le (v a lo re di b ila nc io ) 7 .4 4 2 .0 7 2 5 .2 6 8 .7 5 1
To ta le ( fa ir v a lue ) 7 .4 4 2 .0 7 2 5 .2 6 8 .7 5 1
The increase in this item is primarily due to “time deposits”. The latter include:
around 5,574 million euro (1,642 as at 31st December 2008), relating to the use of amounts collected by the foreign branch via the issue of Certificates of Deposit and
Euro Commercial Papers subscribed by institutional investors.
500 million euro (700 million euro as at 31st December 2008) pertaining to the Group policy for structural rebalancing.
163.3 million euro for the Compulsory Reserve acquired indirectly.
Reverse repurchase agreements, which fell by around 363,3 thousand euro, were concluded
exclusively with the Parent Company and strictly linked to similar funding transactions with
customers.
The impaired exposures vis-à-vis the Bank are not significant as to their amount.
6.2 Loans to banks: assets subject to specific hedge
No loans to banks are subject to specific hedges.
6.3 Finance leases
No finance leases were entered into with banks.
107
Section 7 Loans to customers – Item 70 -
7.1 Loans to customers: detailed analysis
To ta le To ta le
Tipo lo g ia o pe ra zio ni/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
B o nis D e te rio ra te B o nis D e te rio ra te
1. Co nti co rrenti 2.225.093 117.491 2.572.963 56.083
2. P ro nti co ntro te rmine a ttivi - - - -
3. Mutui 8.005.766 279.827 7.788.532 124.800
4. Carte di c redito , pres titi pers o nali e ces s io ni de l quinto 133.995 7.335 183.671 6.272
5. Leas ing finanziario - - - -
6. Fac to ring - - - -
7. Altre o perazio ni 3.273.435 127.343 3.616.800 99.990
8. Tito li di debito 8.456 - 8.973 -
8.1 Tito li s truttura ti - - - -
8.2 Altri tito li di debito 8.456 - 8.973 -
To ta le (v a lo re di b ila nc io ) 13 .6 4 6 .7 4 5 5 3 1.9 9 6 14 .17 0 .9 3 9 2 8 7 .14 5
To ta le ( fa ir v a lue ) 14 .12 6 .3 9 5 5 2 5 .3 4 9 14 .17 2 .4 8 1 2 8 4 .6 9 8
“Other transactions” includes primarily advances on notes and subject to collection
documents, import-export loans and other grants not regulated in customer current accounts.
The item “mortgages” includes:
euro 1,590 million (of which 6.4 million impaired) guaranteeing issues of Covered Bonds carried out by the Parent Company.
euro 1,664 million (of which 35.8 million impaired) pertaining to the securitisation transaction.
Reference should be made to the specific sections for further details.
108
7.2 Loans to customers: composition by debtors/issuers
To ta le To ta le
Tipo lo g ia o pe ra zio ni/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
B o nis D e te rio ra te B o nis D e te rio ra te
1. Tito li d i de bito 8.456 - 8.973 -
a ) Go verni - - - -
b) Altri Enti pubblic i 8.456 - 8.973 -
c ) Altri emittenti - - - -
- impres e no n finanziarie - - - -
- impres e finanziarie - - - -
- as s icurazio ni - - - -
- a ltri - - - -
2 . F ina nzia m e nt i v e rs o : 13.638.289 531.996 14.161.966 287.145
a) Go verni 4.888 - 14.077 -
b) Altri Enti pubblic i 29.483 - 35.743 -
c ) Altri s o ggetti 13.603.918 531.996 14.112.146 287.145
- impres e no n finanziarie 8.749.799 434.469 9.381.904 211.404
- impres e finanziarie 843.063 2.577 864.920 1.577
- as s icurazio ni 1.629 - 20.238 -
- a ltri 4.009.427 94.950 3.845.084 74.164
To ta le 13 .6 4 6 .7 4 5 5 3 1.9 9 6 14 .17 0 .9 3 9 2 8 7 .14 5
7.3 Loans to customers: assets subject to specific hedge
Tipo lo g ia o pe ra zio ni/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Crediti o ggetto di co pertura s pec ifica de l fair value:
a ) ris chio di tas s o di inte res s e 442.135 752.081
b) ris chio di cambio - -
c ) ris chio di c redito - -
d) più ris chi - -
2. Crediti o ggetto di co pertura s pec ifica de i flus s i finanziari:
a ) ris chio di tas s o di inte res s e - -
b) ris chio di cambio - -
c ) a ltro - -
To ta le 4 4 2 .13 5 7 5 2 .0 8 1
7.4 Financial leases
No finance leases were entered into with customers.
109
Section 8 Hedging derivatives – Item 80
8.1 Hedging derivatives: composition by type of hedge and by level
F V 3 1/ 12 / 2 0 0 9 VN F V 3 1/ 12 / 2 0 0 8 VN
L1 L2 L3 3 1/ 12 / 2 0 0 9 L1 L2 L3 3 1/ 12 / 2 0 0 8
A . D e riv a t i f ina nzia ri - 7 5 .12 8 - 2 .2 3 7 .5 0 5 - 9 3 .7 0 2 - 2 .4 10 .17 0
1) Fa ir va lue - 75.128 - 2.237.505 - 93.702 - 2.410.170
2) Flus s i finanziari - - - - - - - -
3) Inves timenti es te ri - - - - - - - -
B . D e riv a t i c re dit iz i - - - - - - - -
1) Fa ir va lue - - - - - - - -
2) F lus s i finanziari - - - - - - - -
To ta le - 7 5 .12 8 - 2 .2 3 7 .5 0 5 - 9 3 .7 0 2 - 2 .4 10 .17 0
110
8.2 Hedging derivatives: composition by hedged portfolio and type of hedge
R is c hio d i
t a s s o
R is c hio d i
c amb io
R is c hio d i
c re d it o
R is c hio d i
p re z z oP iù ris c hi
1. Att ività finanziarie d isponib ili
per la vend ita- - - - - X - X X
2. Cred it i 20 - - X - X - X X
3 . Att ività finanziarie detenute
s ino alla scadenzaX - - X - X - X X
4. Po rtafog lio X X X X X 629 X - X
5, Altre operazioni - - - - - - - - -
To t a le A t t iv it à 2 0 - - - - 6 2 9 - - -
1. Pass ività finanziarie 74 .479 - - X - X - X X
2. Po rtafog lio - - - - - - - - X
To t a le P as s iv it à 74 .4 79 - - - - - - - -
1. Transazioni at tese X X X X X X - X X
2. Po rtafog lio d i at t ività e
pass ività finanziarieX X X X X - X - -
Inve s t ime nt i
e s t e ri
Op e raz io ni / Tip o d i
c o p e rt ura
F a ir V a lue F lus s i F inanz iari
S p e c if ic a
Ge ne ric a S p e c if ic a Ge ne ric a
111
Section 9 Fair value changes to hedged financial assets – Item 90
9.1 Fair value changes to hedged assets: composition by hedged portfolios
A de g ua m e nto di v a lo re de lle a t t iv ità c o pe rte / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. A de g ua m e nto po s it iv o
1.1 di s pec ific i po rta fo gli: 21.556 26.422
a) c rediti 21.556 26.422
b) a ttività finanziarie dis po nibili per la vendita - -
1.2 co mples s ivo - -
2 . A de g ua m e nto ne g a t iv o
2.1 di s pec ific i po rta fo gli - -
a ) c rediti - -
b) a ttività finanziarie dis po nibili per la vendita - -
2.2 co mples s ivo - -
To ta le 2 1.5 5 6 2 6 .4 2 2
9.2 Assets subject to generic interest rate risk micro hedge
A tt iv ità c o pe rte 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Crediti 744.442 398.590
2. Attività finanziarie dis po nibili per la vendita - -
3. P o rtafo glio - -
To ta le 7 4 4 .4 4 2 3 9 8 .5 9 0
112
Section 10 Equity investments – Item 100 -
10.1 Investments in subsidiaries, jointly controlled companies or companies under
dominant influence: Information on shareholdings
D e no m ina zio ni S e deQuo ta d i
pa rte c ipa zio ne %
A . Im pre s e c o ntro lla te in v ia e s c lus iv a (*)
BANCA DI VALLE CAMONICA SpA
Capita le Euro 2.738.693
in azio ni da Euro 1 cad.
UBI BANCA INTERNATIONAL SA
Capita le Euro 45.259.440
in azio ni da Euro 510 cad.
UBI SISTEMI E SERVIZI SCpA
Capita le Euro 35.136.400
in azio ni da Euro 0,52 cad.
B . Im pre s e c o ntro lla te in m o do c o ng iunto
C . im pre s e s o t to po s te a d inf lue nza no te v o le
Breno (BS) 8,716
Lus s emburgo 3,347
Bres c ia 2,960
(*) The equity investments in Group companies are included even in the case of minority interests.
10.2 Investments in subsidiaries, jointly controlled companies or companies under
dominant influence: accounting information
D e no m ina zio niTo ta le
a t t iv o
R ic a v i to ta li
(*)Ut ile (pe rdita )
P a trim o nio
ne t to
(**)
Va lo re di
b ila nc io
A . Im pre s e c o ntro lla te in v ia e s c lus iv a
Banca di Vallecamo nica SpA 2.233.012 67.533 9.533 118.610 12.266
UBI Banca Interna tio nal SA 1.563.129 38.242 13.980 108.663 2.291
UBI Sis temi e Servizi SCpA 214.254 680 - 52.076 1.565
B . im pre s e c o ntro lla te in m o do c o ng iunto
0 - - - - -
C . Im pre s e s o t to po s te a d inf lue nza no te v o le
0 - - - - -
To ta le 4 .0 10 .3 9 5 10 6 .4 5 5 2 3 .5 13 2 7 9 .3 4 9 16 .12 2
(*) The amounts represent the intermediation margin. (**) Shareholders' equity includes the income shown in the 2009 Financial statements.
113
10.3 Equity investments: annual changes
C a us a li / C a te g o rieTo ta le
3 1/ 12 / 2 0 0 9
To ta le
3 1/ 12 / 2 0 0 8
A . Es is te nze in iz ia li 16 .12 2 13 .8 3 5
B . A um e nt i - 2.288
B.1 Acquis ti - 2 .2 8 8
B.2 Ripres e di va lo re - -
B.3 Riva lutazio ni - -
B.4 Altre variazio ni - -
C . D im inuzio ni - -
C.1 Vendite - -
C.2 Rettifiche di va lo re - -
C.3 Altre variazio ni - -
D . R im a ne nze f ina li 16 .12 2 16 .12 2
E. R iv a luta z io ni to ta li -
F . R e tt if ic he to ta li - -
Item B.1 “Purchases” as at 31st December 2008 primarily represents the purchase of shares
in UBI Sistemi e Servizi (around 1,565 thousand euro).
10.4 Commitments relating to equity investments in subsidiary companies
There are no equity investments which can be qualified as subsidiary companies.
10.5 Commitments relating to equity investments in jointly controlled companies
There are no equity investments which can be qualified as jointly controlled.
10.6 Commitments relating to equity investments in companies under dominant
interest
There are no commitments or potential liabilities associated with companies under
dominant influence.
114
Section 11 Tangible assets – Item 110
11.1. Tangible assets: composition of assets valued at cost
During 2009, properties and land held for investment purposes were identified and duly
recorded, and appropriately reclassified in the following tables.
A tt iv ità / v a lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A . A tt iv ità a d us o funzio na le
1.1 di pro prie tà 17 6 .7 7 4 3 0 0 .8 5 0
a) te rreni 88.331 180.297
b) fabbrica ti 62.319 91.657
c) mo bili 8.298 9.177
d) impianti e le ttro nic i 6.059 7.134
e) a ltre 11.767 12.585
1.2 a c quis ite in le a s ing f ina nzia rio 1.4 4 7 2 .0 7 0
a) te rreni 652 913
b) fabbrica ti 795 1.157
c) mo bili - -
d) impianti e le ttro nic i - -
e ) a ltre - -
To ta le A 17 8 .2 2 1 3 0 2 .9 2 0
B . A tt iv ità de te nute a s c o po di inv e s t im e nto
2 .1 di pro prie tà 119 .16 5 -
a) te rreni 92.460 -
b) fabbrica ti 26.705 -
2 .2 a c quis ite in le a s ing f ina nzia rio - -
a) te rreni - -
b) fabbrica ti - -
To ta le B 119 .16 5 -
To ta le (A +B ) 2 9 7 .3 8 6 3 0 2 .9 2 0
11.2. Tangible assets: composition of assets valued at fair value or revalued
Tangible assets are carried at cost, therefore no assets of this type exist.
115
11.3 Tangible assets used in operations: annual changes
Te rre ni F a bbric a t i M o biliIm pia nt i
e le t tro nic iA ltre To ta le
A . Es is te nze in iz ia li lo rde 2 3 8 .4 4 1 14 6 .3 6 1 3 3 .3 4 7 3 2 .2 2 3 6 5 .5 4 7 5 15 .9 19
A.1 Riduzio ni di va lo re to ta li ne tte (57.230) (53.547) (24.170) (25.089) (52.962) (2 12 .9 9 8 )
A .2 Es is te nze in iz ia li ne t te 18 1.2 11 9 2 .8 14 9 .17 7 7 .13 4 12 .5 8 5 3 0 2 .9 2 1
B . A um e nt i 2 3 2 5 11 6 9 3 2 .17 9 2 .9 8 0 6 .5 9 5
B.1 Acquis ti 134 511 693 2.179 2.980 6 .4 9 7
B.2 Spes e per miglio rie capita lizza te - - - - - -
B.3 Ripres e di va lo re - - - - - -
B.4 Variazio ni po s itive di fa ir va lue imputa te a : - - - - - -
a) pa trimo nio ne tto - - - - - -
b) co nto eco no mico - - - - - -
B.5 Diffe renze po s itive di cambio - - - - - -
B.6 Tras ferimenti da immo bili de tenuti a s co po di inves timento - - - - - -
B.7 Altre variazio ni 98 - - - - 9 8
C . D im inuzio ni (9 2 .4 6 0 ) (3 0 .2 11) (1.5 7 2 ) (3 .2 5 4 ) (3 .8 0 0 ) (13 1.2 9 7 )
C.1 Vendite - - - (635) - (6 3 5 )
C.2 Ammo rtamenti - (2.394) (1.542) (2.338) (3.791) (10 .0 6 5 )
C.3 Rettifiche di va lo re da de te rio ramento imputa te a : - - (20) - - (2 0 )
a) pa trimo nio ne tto - - - - - -
b) co nto eco no mico - - (20) - - (2 0 )
C.4 Variazio ni nega tive di fa ir va lue imputa te a : - - - - - -
a) pa trimo nio ne tto - - - - - -
b) co nto eco no mico - - - - - -
C.5 Diffe renze nega tive di cambio - - - - - -
C.6 Tras ferimenti a : (92.460) (27.716) - - - (12 0 .17 6 )
a ) a ttività materia li de tenute a s co po di inves timento (92.460) (27.716) - - - (12 0 .17 6 )
b) a ttività in via di dis mis s io ne - - - - - -
C.7 Altre variazio ni - (101) (10) (281) (9) (4 0 1)
D . R im a ne nze f ina li ne t te 8 8 .9 8 3 6 3 .114 8 .2 9 8 6 .0 5 9 11.7 6 5 17 8 .2 19
D.1 Riduzio ni di va lo re to ta li ne tte (33.924) (42.402) (25.711) (21.032) (56.507) (17 9 .5 7 6 )
D .2 R im a ne nze f ina li lo rde 12 2 .9 0 7 10 5 .5 16 3 4 .0 0 9 2 7 .0 9 1 6 8 .2 7 2 3 5 7 .7 9 5
E. Valutazio ne a l co s to - - - - - -
116
Depreciation is calculated with reference to the estimated useful life of the asset as from the
date it comes into service.
The life of the main categories of fixed assets, estimated in months, is shown below
Descrizione Ammortamento Vita utile
Terreni relativi ad immobili NO Non ammortizzati
Immobili - Immobili in leasing SI Sulla base di perizia
Impianti di sollevamento e pesatura SI 160 mesi
Costruzioni leggere e scaffalature SI 120 mesi
Mobili e arredi diversi SI 120 mesi
Mobili e macchine ordinarie d'ufficio SI 100 mesi
Apparecchiature ATM SI 96 mesi
Mezzi forti e blindature prefabbricate SI 80 mesi
Macchinari, apparecchi e attrezzature varie SI 80 mesi
Macchinari vari, mobili ed arredi SI 80 mesi
Banconi blindati o con cristalli blindati SI 60 mesi
Personal Computer SI 60 mesi
Attrezzatura mensa SI 48 mesi
Impianti interni speciali di comunicazione SI 48 mesi
Impianti di allarme SI 40 mesi
Impianti antincendio SI 40 mesi
Macchine Ufficio elettriche-elettroniche SI 30 mesi
Autoveicoli da trasporto SI 30 mesi
Autovetture SI 24 mesi
Autovetture in leasing SI Sulla base della durata del contratto
11.4 Tangible assets held for investment purposes: annual changes
3 1/ 12 / 2 0 0 9
Te rre ni F a bbric a t i
A . Es is te nze in iz ia li - -
A.1 Riduzio ne di va lo re to ta li ne tte - -
A .3 Es is te nze in iz ia li ne t te - -
B . A um e nt i 9 2 .4 6 0 2 7 .7 16
B.1 Acquis ti - -
B.2 Spes e per miglio rie capita lizza te - -
B.3 Variazio ni po s itive di fa ir va lue - -
B.4 Ripres e di va lo re - -
B.5 Differenze cambio po s itive - -
B.6 Tras ferimenti da immo bili ad us o funzio nale 92.460 27.716
B.7 Altre variazio ni - -
C . D im inuzio ni - (1.0 11)
C.1 Vendite - -
C.2 Ammo rtamenti - (1.011)
C.3 Variazio ni negative ne tte di fa ir va lue - -
C.4 Rettifiche di va lo re da de terio ramento - -
C.5 Differenze di cambio negative - -
C.6 Tras ferimenti ad a ltri po rta fo gli di a ttività : - -
a ) immo bili ad us o funzio nale - -
b) a ttività no n co rrenti in via di dis mis s io ne - -
C.7 Altre variazio ni - -
D . R im a ne nze F ina li 9 2 .4 6 0 2 6 .7 0 5
D.1 Riduzio ne di va lo re to ta li ne tte - (14.398)
D .2 R im a ne nze f ina li lo rde 9 2 .4 6 0 4 1.10 3
E. Valutazio ne a l Fa ir Value 59.778 65.253
117
11.5 Commitments to purchase tangible assets (IAS 16/74.c)
A tt iv ità / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A . A tt iv ità a d us o funzio na le
1.1 Di pro prie tà : 222 -
- te rreni - -
- fabbrica ti - -
- mo bili 222 -
- impianti e le ttro nic i - -
- a ltre - -
1.2 In lo cazio ne finanziaria : - -
- te rreni - -
- fabbrica ti - -
- mo bili - -
- impianti e le ttro nic i - -
- a ltre - -
To ta le A 2 2 2 -
B . A tt iv ità de te nute a s c o po di inv e s t im e nto
2.1 Di pro prie tà : - -
- te rreni - -
- fabbrica ti - -
2.2 In lo cazio ne finanziaria : - -
- te rreni - -
- fabbrica ti - -
To ta le B - -
To ta le A +B 2 2 2 -
The commitments indicated above fall within the normal corporate planning activities; they concern orders not yet carried out which will be executed during the first few months of
2010.
118
Section 12 Intangible assets – Item 120
12.1 Intangible assets: composition by asset type
D ura ta de f inita D ura ta inde f inita D ura ta de f inita D ura ta inde f inita
A.1 Avviamento X 19 .7 0 5 X 19 .7 0 5
A.2 Altre a ttività immateria li 3 4 - 2 8 -
A.2.1 Attività va luta te a l co s to : 34 - 28 -
a ) Attività immateria li genera te inte rnamente - - - -
b) Altre a ttività 34 - 28 -
A.2.2 Attività va luta te a l fair value - - - -
a ) Attività immateria li genera te inte rnamente - - - -
b) Altre a ttività - - - -
To ta le 3 4 19 .7 0 5 2 8 19 .7 0 5
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A tt iv ità / Va lo ri
Other intangible assets with a finite life represent software of the foreign branch that is
amortised over 60 months.
The goodwill recognised represents the amount Banco di Brescia paid for the capacity of the
unit subject to merger to produce future economic benefits for the “aggregating” company.
In further detail below:
Banca Lombarda Milano Group - 1995 5,567
Banca del Cimino – segment spun-off – 1995 1,250
Banca del Cimino - 1998 9,627
Banca di Valle Camonica branches- 2001 1,164
Banca Regionale Europea branches - 2002 2,097
TOTAL GOODWILL 19,705
As indicated in IAS 36, a company must determine at each balance sheet date if there is any
indication that an asset may have become impaired (impairment test). With reference to goodwill, irrespective of whether there were any indications of impairment loss, it is
important to perform the aforementioned test at least annually. As per IAS 36, an asset has
suffered an impairment loss when its carrying value exceeds its recoverable value, which is
the greater of its fair value less sales costs or its value in use.
Goodwill was allocated over the entire legal entity as a total unit generating cash flows. Therefore the goodwill impairment test recorded in the financial statements as at 31st
December 2009 was performed by comparing the value in use of the entire business entity
(which forms a cash generating unit) with its related carrying value.
The estimate of the value in use was made on the basis of the discounting back of the
income flows,, determined on the basis of the 2010 budget and extrapolated on the basis of
the 2009-2012 growth rates of the main key components, shown below, as approved by the Bank’s Board of Directors:
Loans to customers cagr% 2009-2012
RWA Loans cagr% 2009-2012
Direct funding cagr% 2009-2012
Asset management cagr% 2009-2012
Administered funds cagr% 2009-2012
119
Operating Income cagr% 2009-2012
Net commission cagr% 2009-2012
Operating expense cagr% 2009-2012
Cost income cagr% 2009-2012
Lending cost cagr% 2009-2012
Average mark up 2011-2012
Average mark down 2011-2012
Indirect funding spread 2011-2012
The growth rate of the earnings used came to 0.80% and is considered stable and such that it does not exceed the long-term growth rates of the entire banking sector.
The post-tax discount rate on earnings is 7.75%. This rate together with the growth rate
beyond the explicit forecast period of 0.80% contribute to a capitalisation rate for terminal
value estimation purposes of 6.95%. This capitalisation rate is in line with that used by
equity analysts that follow UBI shares.
The method described above and the supporting quantitative information have been
approved independently and formally by the Bank’s Board of Directors.
Analysis carried out made it possible to detect the absence of impairment losses on the
goodwill recorded in the Bank’s financial statements as at 31st December 2009.
120
12.2 Intangible assets: annual changes
D ura ta de f in ita D ura ta inde f in ita D ura ta de f in ita D ura ta inde f in ita
A . Es is te nze in iz ia li 10 0 .16 8 - - 2 0 8 - 10 0 .3 7 6
A.1 Riduzio ne di va lo re to ta li ne tte (80.463) - - (180) - (8 0 .6 4 3 )
A .2 Es is te nze in iz ia li ne t te 19 .7 0 5 - - 2 8 - 19 .7 3 3
B . A um e nt i - - - 15 - 15
B.1 Acquis ti - - - 15 - 15
B.1.1 Acquis ti - - - 15 - 15
B.1.2 Operazio ni di aggregazio ne azienda le - - - - - -
B.2 Incrementi di a ttività immateria li inte rne X - - - - -
B.3 Ripres e di va lo re X - - - - -
B.4 Variazio ni po s itive di fair value - - - - -
- a pa trimo nio ne tto X - - - - -
- a co nto eco no mico X - - - - -
B.5 Diffe renze di cambio po s itive - - - - - -
B.6 Altre variazio ni - - - - - -
C . D im inuzio ni - - - (9 ) - (9 )
C.1 Vendite - - - - - -
C.2 Rettifiche di va lo re - - - (9) - (9 )
- Ammo rtamenti X - - (9) - (9 )
- Sva lutazio ni - - - - - -
+ pa trimo nio ne tto X - - - - -
+ co nto eco no mico - - - - - -
C.3 Variazio ni nega tive di fair value - - - - -
- a pa trimo nio ne tto X - - - - -
- a co nto eco no mico X - - - - -
C.4 Tras ferimenti a lle a ttività no n co rrenti in via di
dis mis s io ne- - - - - -
C.5 Diffe renze di cambio nega tive - - - - - -
C.6 Altre variazio ni - - - - - -
D . R im a ne nze f ina li ne t te 19 .7 0 5 - - 3 4 - 19 .7 3 9
D.1 Rettifiche di va lo re to ta li ne tte - - - - - -
E . R im a ne nze f ina li lo rde 19 .7 0 5 - - 3 4 - 19 .7 3 9
F. Valiutazio ne a l co s to - - - - - -
A ltre a t t iv ità im m a te ria li : g e ne ra te
inte rna m e nte A ltre a t t iv ità im m a te ria li : a ltre
3 1/ 12 / 2 0 0 9A v v ia m e nto
12.3 Other information
The following additional information is provided:
a) there is nothing preventing the capital gains associated with the revaluation of
intangible assets from being distributed to shareholders; b) no intangible assets were acquired through government subsidies;
c) no intangible assets have been set up to guarantee own payables;
d) there are no commitments to acquire intangible assets;
e) there are no intangible assets that are the subject of lease transactions.
121
Section 13 Tax Assets and Liabilities - Asset Item 130 and Liability Item 80 -
13.1 Prepaid tax assets: composition
Ammontare
delle
differenze
temporanee
Effetto fiscale
(aliquota IRES
27,5%, 4,82%
IRAP)
Ammontare
delle
differenze
temporanee
Effetto fiscale
(aliquota IRES
27,5%, 4,82%
IRAP)
Im po s te a nt ic ipa te c o n c o ntro pa rt ita a c o nto e c o no m ic o 9 2 .8 0 0 2 5 .8 3 0 7 4 .6 12 2 0 .9 6 7
- Crediti 62.067 17.069 45.481 12.507
- S trumenti finanziari - - 4.293 1.180
- Attività materia li - - 733 237
- Fo ndi per ris chi ed o neri 19.478 5.356 18.746 5.561
- Co s ti de l P ers o nale 4.313 1.186 5.202 1.431
- Rettifiche di va lo re s u o neri pluriennali - - - -
- Avviamento 1.830 591 - -
- Rettifiche di va lo re s u partec ipazio ni e tito li dis po nibili per la vendita 5.030 1.601 - -
- Altre mino ri 82 27 157 51
Im po s te a nt ic ipa te c o n c o ntro pa rt ita a pa trim o nio ne t to 13 8 9 - -
- Co s ti de l P ers o nale - - - -
- Altre mino ri 138 9 - -
To ta le im po s te a nt ic ipa te is c rit te 9 2 .9 3 8 2 5 .8 3 9 7 4 .6 12 2 0 .9 6 7
- Differenze tempo ranee es c lus e da lla de terminazio ne de lle impo s te antic ipa te - - - -
To ta le im po s te a nt ic ipa te is c riv ibili 9 2 .9 3 8 2 5 .8 3 9 7 4 .6 12 2 0 .9 6 7
Totale
31/12/2009
Totale
31/12/2008
13.2 Deferred tax liabilities: composition
Ammontare
delle
differenze
temporanee
Effetto fiscale
(aliquota IRES
27,5%, 4,82%
IRAP)
Ammontare
delle
differenze
temporanee
Effetto fiscale
(aliquota IRES
27,5%, 4,82%
IRAP)
Im po s te dif fe rite c o n c o ntro pa rt ita a c o nto e c o no m ic o 9 1.4 3 0 2 5 .9 6 1 13 8 .9 2 3 3 9 .3 6 5
- Attività materia li in leas ing 1.837 604 1.845 606
- S trumenti finanziari - - 1.915 527
- Attività materia li 5.302 1.724 13.699 4.385
- Avviamento 9.166 2.962 7.854 2.538
- Fo ndi ris chi s u c rediti - - - -
- P lus va lenze ra te izzate 73.405 20.197 110.311 30.360
- Co s ti de l P ers o nale 1.720 473 3.037 835
- Altre mino ri - - 262 114
Im po s te dif fe rite c o n c o ntro pa rt ita a pa trim o nio ne t to 11.5 3 3 1.0 13 9 .8 9 2 1.2 2 9
- Valutazio ne tito li dis po nibili per la vendita 10.690 781 7.534 581
- Co s ti de l pers o nale 843 232 2.358 648
To ta le im po s te dif fe rite is c rit te 10 2 .9 6 3 2 6 .9 7 4 14 8 .8 15 4 0 .5 9 4
- Differenze tempo ranee es c lus e da lla de terminazio ne de lle impo s te differite - - - -
To ta le im po s te dif fe rite is c riv ibili 10 2 .9 6 3 2 6 .9 7 4 14 8 .8 15 4 0 .5 9 4
Totale
31/12/2009
Totale
31/12/2008
122
13.3 Changes in prepaid tax assets (contra-entry recorded in the income statement)
1. Im po rto iniz ia le 2 0 .9 6 7 3 0 .0 0 8
2 . A um e nt i 9 .4 2 8 8 .8 17
2.1 Impo s te antic ipa te rileva te ne ll'es erc izio 7.309 8.601
a) re la tive a precedenti es erc izi - -
b) do vute a l mutamento de i c rite ri co ntabili - -
c ) ripres e di va lo re - -
d) a ltre 7.309 8.601
2.2 Nuo ve impo s te o incrementi di a liquo te fis ca li - -
2.3 Altri aumenti 2.119 216
3 . D im inuzio ni (4 .5 6 5 ) (17 .8 5 8 )
3.1 Impo s te antic ipa te annulla te ne ll'es erc izio (2.980) (17.858)
a ) rigiri (2.980) (17.858)
b) s va lutazio ni per s o pravvenuta irrecuperabilità - -
c ) mutamento de i c rite ri co ntabili - -
d) a ltre - -
3.2 Riduzio ne di a liquo te fis ca li - -
3.3 Altre riduzio ni (1.585) -
4 . Im po rto f ina le 2 5 .8 3 0 2 0 .9 6 7
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
13.4 Changes in deferred tax liabilities (contra-entry recorded in the income
statement)
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Im po rto iniz ia le 3 9 .3 6 4 9 4 .7 0 1
2 . A um e nt i 3 .12 7 1.2 8 4
2.1 Impo s te differite rileva te ne ll'es erc izio 3.127 1.154
a) re la tive a precedenti es erc izi - -
b) do vute a l mutamento di c rite ri co ntabili - -
c ) a ltre 3.127 1.154
2.2 Nuo ve impo s te o incrementi di a liquo te fis ca li - -
2.3 Altri aumenti - 130
3 . D im inuzio ni (16 .5 3 0 ) (5 6 .6 2 1)
3.1 Impo s te differite annulla te ne ll'es erc izio (10.918) (20.182)
a ) rigiri (10.918) (20.182)
b) do vute a l mutamento di c rite ri co ntabili - -
c ) a ltre - -
3.2 Riduzio ni di a liquo te fis ca li - -
3.3 Altre diminuzio ni (5.612) (36.439)
4 . Im po rto f ina le 2 5 .9 6 1 3 9 .3 6 4
123
13.5 Changes in prepaid tax assets (contra-entry recorded under shareholders’ equity)
1. Im po rto iniz ia le - -
2 . A um e nt i 9 -
2.1 Impo s te antic ipa te rileva te ne ll'es erc izio 9 -
a ) re la tive a precedenti es erc izi - -
b) do vute a l mutamenteo di c rite ri co ntabili - -
c ) a ltre 9 -
2.2 Nuo ve impo s te o incrementi di a liquo te fis ca li - -
2.3 Altri aumenti - -
3 . D im inuzio ni - -
3.1 Impo s te antic ipa te annulla te ne ll'es erc izio - -
a ) rigiri - -
b) s va lutazio ni per s o pravvenuta irrecuperabilità - -
c ) do vute a l mutamento de i c rite ri co ntabili - -
d) a ltre - -
3.2 Riduzio ni di a liquo te fis ca li - -
3.3 Altre diminuzio ni - -
4 . Im po rto f ina le 9 -
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
13.6 Changes in deferred tax liabilities (contra entry recorded under shareholders’
equity)
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Im po rto iniz ia le 1.2 3 0 2 .19 9
2 . A um e nt i 2 0 0 -
2.1 Impo s te differite rileva te ne ll'es erc izio 200 -
a ) re la tive a precedenti es erc izi - -
b) do vute a l mutamento de i c rite ri co ntabili - -
c ) a ltre 200 -
2.2 Nuo ve impo s te o incrementi di a liquo te fis ca li - -
2.3 Altri aumenti - -
3 . D im inuzio ni (4 17 ) (9 6 9 )
3.1 Impo s te differite annulla te ne ll'es erc izio (417) (969)
a ) rigiri (417) (969)
b) do vute a l mutamento de i c rite ri co ntabili - -
c ) a ltre - -
3.2 Riduzio ne di a liquo te fis ca li - -
3.3 Altre diminuzio ni - -
4 . Im po rto f ina le 1.0 13 1.2 3 0
13.7 Other information
To ta le
3 1/ 12 / 2 0 0 9
To ta le
3 1/ 12 / 2 0 0 8
Acco nti vers a ti a l F is co 26.043 26.748
Credito d'impo s ta 24.246 3.407
5 0 .2 8 9 3 0 .15 5
124
Section 14 Non Current Assets and Groups of Assets Held for Sale and
Related Liabilities – Asset Item 140 and Liability Item 90 -
14.1 Non current assets and groups held for sale: composition by asset type
There are no non current assets and groups of assets held for sale.
125
Section 15 Other Assets – Item 150 -
15.1 Other assets: composition
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Miglio rie s u immo bili di te rzi 4.522 4.489
P artite viaggianti 71.087 240.581
Co mpetenze da incas s are 22.838 13.088
Scarti va luta s u o perazio ni in cambi e po rta fo glio 1.679 710
As s egni tra tti s u te rzi 684 29.135
P artite in co rs o di lavo razio ne 12.156 32.460
Crediti vers o l'Erario 17.932 17.683
Altre a ttività - co ns o lida to fis ca le 55.235 78.525
Altre partite 134.236 80.197
TOTA LE 3 2 0 .3 6 7 4 9 6 .8 6 6
Amounts receivable for the tax consolidation scheme represent the advances and the direct
tax credits transferred to the Parent Company in compliance with national tax consolidation legislation.
The other items include accruals and deferrals not carried back for a total of euro 13.2
million.
126
LIABILITIES
Section 1 Due to Banks – Item 10 - 1.1 Due to banks: composition
Tipo lo g ia o pe ra zio ni/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. D e bit i v e rs o ba nc he c e ntra li - -
2 . D e bit i v e rs o ba nc he 1.3 7 0 .7 0 5 1.5 4 6 .9 3 2
2.1 Co nti co rrenti e depo s iti liberi 174.669 1.226.195
2.2 Depo s iti vinco la ti 95.713 199.523
2.3 Finanziamenti 1.095.154 102.228
2.3.1 P ro nti co ntro te rmine pas s ivi 1.026.669 -
2.3.2 Altri 68.485 102.228
2.4 Debiti per impegni di riacquis to di pro pri s trumenti pa trimo nia li - -
2.5 Altri debiti 5.169 18.986
To ta le 1.3 7 0 .7 0 5 1.5 4 6 .9 3 2
Fa ir Va lue 1.3 7 0 .7 0 5 1.5 4 6 .9 3 2
The “Other payables” item represents operating payables.
Repurchase agreements have been concluded exclusively with the Parent Company and
closely linked with the securitization transaction.
1.2 Detail of Item 10 "Due to banks": subordinated debt
There were no subordinated amounts due to banks
1.3 Detail of Item 10 "Due to banks": structured debt
There were no structured debts due to banks
1.4 Due to banks: amounts subject to specific hedge
There were no amounts due to banks that were subject to specific hedge.
1.5 Finance lease liabilities
There were no finance lease liabilities due to banks.
127
Section 2 Due to Customers – Item 20 -
2.1 Due to customers: composition
Tipo lo g ia o pe ra zio ni / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Co nti co rrenti e depo s iti liberi 8.246.055 7.855.842
2. Depo s iti vinco la ti 195.208 333.662
3. F inanziamenti 362.731 1.727.743
3.1 P ro nti co ntro te rmine pas s ivi 362.133 1.726.862
3.2 Altri 598 881
4. Debiti per impegni di riacquis to di pro pri s trumenti pa trimo nia li - -
5. Altri debiti 66.855 111.377
To ta le 8 .8 7 0 .8 4 9 10 .0 2 8 .6 2 4
F a ir Va lue 8 .8 7 0 .8 4 9 10 .0 2 8 .6 2 4
The item “other payables” mainly represents banker’s drafts.
2.2 Detail of Item 20 "Due to customers": subordinated debt
There were no subordinated amounts due to customers.
2.3 Detail of Item 20 "Due to customers": structured debt
There were no structured amounts due to customers.
2.4 Due to customers: amounts subject to specific hedge
There were no amounts due to customers that were subject to specific hedges.
2.5 Finance lease liabilities
Amounts due to customers for finance lease liabilities amount in total to 598 thousand
euro.
The amount in question is represented by a real estate contract with UBI Leasing S.p.a.,
whose total financed amount is equal to 1,417 thousand euro.
The contract is due to expire in June 2013. Future payments are detailed as follows:
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
D e bito re s iduo v e rs o s o c ie tà di le a s ing
- entro 1 anno 193 283
- tra 1 e 5 anni 405 598
- o ltre 5 anni - -
128
Section 3 Securities issued – Item 30 - 3.1. Securities issued: detailed analysis
To ta le 3 1/ 12 / 2 0 0 9 To ta le 3 1/ 12 / 2 0 0 8
Tipo lo g ia t ito li/ Va lo ri Va lo re F a ir Va lue Va lo re F a ir Va lue
B ila nc io Liv e llo 1 Liv e llo 2 Liv e llo 3 B ila nc io Liv e llo 1 Liv e llo 2 Liv e llo 3
A. Tito li
1. o bbligazio ni 5.070.761 - 5.068.265 - 5.595.105 - 5.593.722 -
1.1 s truttura te 2.385.012 - 2.386.306 - 2.061.277 - 2.062.372 -
1.2 a ltre 2.685.749 - 2.681.959 - 3.533.828 - 3.531.350 -
2. a ltri tito li 5.229.549 - 5.229.549 - 1.682.179 - 1.682.179 -
2.1 s tuttura ti - - - - - - - -
2.2 a ltri 5.229.549 - 5.229.549 - 1.682.179 - 1.682.179 -
To ta le 10 .3 0 0 .3 10 - 10 .2 9 7 .8 14 - 7 .2 7 7 .2 8 4 - 7 .2 7 5 .9 0 1 -
The “Structured bonds” item includes 1,380 million euro related to new bond issues, entirely subscribed by the Parent Company for structural rebalancing.
The “Other securities – other” item includes Certificates of Deposit and Euro Commercial
Papers for 5,200 million euro, issued by the foreign branch.
Structured securities predominantly refer to step up, step up callable, constant maturity
swap and inflation linked bonds.
3.2 Detail of item 30 "Securities in issue": subordinated securities
The subordinated liabilities satisfy the requirements of the Bank of Italy to be included in
the calculation of the supervisory capital, in particular:
early repayment clause, subject to authorisation by the Supervisory Authority;
subordination clause to come into effect in the event that UBI Parent Company goes
into liquidation.
The table below shows the detail of loans (in thousands of euro).
D e no m ina zio ne Ta s s o C o ns is te nza a l
3 1/ 12 / 2 0 0 9
1) Depo s ito co s tituito pres s o la fila le de l Lus s emburgo dalla Banca Lo mbarda
P referred Capita l Co mpany LLC - Delaware (USA), Il pres tito ris ulta bilancia to da un
depo s ito (avente le medes ime cara tteris tiche) co s tituito pres s o la Banca
co ntro llante . fis s o 165.102
2) P res tito o bbligazio nario 2002-2012 (**)
Euribo r 3 mes i + 1,05% per
i primi 5 anni + 1,65 per i
s ucces s ivi (*) 100.070
(*) Subject to the exercise of the call option that allows early repayment. (**) The loan was underwritten by the UBI Banca Parent Company.
129
3.3 Securities issued: securities subject to specific hedge
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Tito li o ggetto di co pertura s pec ifica de l fair value: 2.379.410 3.191.639
a) ris chio di tas s o di inte res s e 2.379.410 3.191.639
b) ris chio di cambio - -
c ) più ris chi - -
2. Tito li o ggetto di co pertura s pec ifica de i flus s i finanziari: - -
a ) ris chio di tas s o di inte res s e - -
b) ris chio di cambio - -
c ) a ltro - -
Section 4 Financial Liabilities Held for Trading – Item 40 -
4.1 Financial liabilities held for trading: detailed composition
L1 L2 L3 L1 L2 L3
A. Passività per cassa
1. Debiti verso banche - - - - - - - - - -
2. Debiti verso clientela - - - - - - - - - -
3. Titoli di debito - - - - - - - - - -
3.1 Obbligazioni - - - - - - - - - -
3.1.1 Strutturate - - - - X - - - - X
3.1.2 Altre obbligazioni - - - - X - - - - X
3.2 Altri titoli - - - - - - - - - -
3.2.1 Strutturati - - - - X - - - - X
3.2.2 Altri - - - - X - - - - X
Totale A - - - - - - - - - -
B. Strumenti derivati
1. Derivati finanziari X - 81.138 - X - 106.579 -
1.1 Di negoziazione X - 81.138 - X X - 106.579 - X
1.2 Connessi con la fair value option X - - - X X - - - X
1.3 Altri X - - - X X - - - X
2. Derivati creditizi X - - - X - - -
2.1 Di negoziazione X - - - X X - - - X
2.2 Connessi con la fair value option X - - - X X - - - X
2.3 Altri X - - - X X - - - X
Totale B X - 81.138 - X X - 106.579 - X
Totale (A+B) - - 81.138 - - - - 106.579 - -
VN FV* VNTipologia operazioni/Valori
31/12/2009
FVFV
31/12/2008
FV*
4.2 Detail of item 40 “Financial liabilities held for trading”: subordinated liabilities
There were no subordinated liabilities.
4.3 Detail of item 40 “Financial liabilities held for trading”: structured debt
There was no structured debt.
Section 5 Financial liabilities at fair value - Item 50 -
These types of transactions do not exist within the Bank.
130
Section 6 Hedging Derivatives – Item 60
6.1 Hedging derivatives: composition by type of hedge and hierarchical levels
VN VN
L1 L2 L3 31/12/2009 L1 L2 L3 31/12/2008
A. Derivati finanziari - 51.429 - 1.542.675 - 50.101 - 1.725.652
1) Fair value - 51.429 - 1.542.675 - 50.101 - 1.725.652
2) Flussi finanziari - - - - - - - -
3) Investimenti esteri - - - - - - - -
B. Derivati creditizi - - - - - - - -
1) Fair value - - - - - - - -
2) Flussi finanziari - - - - - - - -
Totale - 51.429 - 1.542.675 - 50.101 - 1.725.652
Fair Value 31/12/2009 Fair Value 31/12/2008
131
6.2 Hedging derivatives: composition by hedged portfolio and type of hedge
R is c hio d i
t a s s o
R is c hio d i
c amb io
R is c hio d i
c re d it o
R is c hio d i
p re z z oP iù ris c hi
1. Att ività finanziarie d isponib ili
per la vend ita- - - - - X - X X
2. Cred it i 23 .496 - - X - X - X X
3 . Att ività finanziarie detenute
s ino alla scadenzaX - - X - X - X X
4. Po rtafog lio x x x x X 27.157 X - X
5. Altre operazioni - - - - - X - X -
To t a le A t t iv it à 2 3 .4 9 6 - - - - 2 7 .157 - - -
1. Pass ività finanziarie 776 - - X - X - X X
2. Po rtafog lio - - - - - - - - X
To t a le P as s iv it à 776 - - - - 2 7 .157 - - -
1. Transazioni at tese X X X X X X - X X
2. Po rtafog lio d i at t ività e
pass ività finanziarieX X X X X X X - -
Op e raz io ni / Tip o d i
c o p e rt ura
F a ir V a lue F lus s i F inanz iari
Inve s t ime nt i
e s t e ri
S p e c if ic a
Ge ne ric a S p e c if ic a Ge ne ric a
132
Section 7 Fair value changes to hedged financial liabilities – Item 70
These types of transactions do not exist within the Bank.
Section 8 Tax Liabilities – Item 80 -
F o ndo
im po s te dire t te
Saldo 31/12/2008 48.918
Accanto namento 22.604
Utilizzi per pagamento impo s te (35.388)
Altre variazio ni (3.934)
S a ldo 3 1/ 12 / 2 0 0 9 3 2 .2 0 0 The above table presents the change in current tax liabilities during the year. Not that, as
commented on in the Directors’ Report, the Bank complies with the “National tax consolidation” scheme, pursuant to Article 117 et seq. of Italian Presidential Decree No. 917
dated 22nd December 1986 and subsequent amendments and integrations, therefore
receivables and payables relating to IRES (company earnings’ tax) have been transferred to
the Parent Company and are recorded in the financial statements under other assets and liabilities; the changes in the table refer to IRAP (regional business tax).
The composition of and changes in deferred tax liabilities are stated with the prepaid tax
assets, in section 13 of the assets in these notes.
Section 9 Liabilities associated with assets held for sale -Item 90 -
These types of transactions do not exist within the Bank.
133
Section 10 Other Liabilities – Item 100 -
10.1 Other liabilities: composition
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Debiti vers o l'e rario per ritenute da vers are 36.326 37.999
Altre pas s ività - co ns o lida to fis ca le 71.353 98.662
Co mpetenze e co ntributi re la tivi a l pers o nale 18.763 35.099
Scarti va luta s u o perazio ni in cambi 27 142
So mme a dis po s izio ne de lla c liente la 55.954 103.200
P artite in lavo razio ne 34.366 10.380
Credito ri divers i 45.437 30.584
Fo rnito ri 22.778 28.970
Scarti va luta s u o perazio ni di po rta fo glio co mmercia le 186.603 221.062
P artite viaggianti co n le filia li 88.111 11.259
Deterio ramento garanzie rilas c ia te e impegni 3.904 2.650
Altre 9.680 14.387
To ta le 5 7 3 .3 0 2 5 9 4 .3 9 4
The liabilities for the tax consolidation scheme are made up of amounts due to the Parent
Company for the Income Taxes of the companies transferred in accordance with “National
tax consolidation” legislation.
134
Section 11 Staff Severance Indemnity – Item 110 -
11.1 Staff severance indemnity: annual changes
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A . Es is te nze in iz ia li 6 4 .9 2 2 6 9 .9 9 8
B . A um e nt i 1.8 9 2 4 .9 6 3
B.1 Accanto namento de ll'es erc izio 3 4
B.2 Altre variazio ni 1.889 4.959
C . D im inuzio ni (3 .0 0 6 ) (10 .0 3 9 )
C.1 Liquidazio ni e ffe ttua te (2.391) (10.039)
C.2 Altre variazio ni (615) -
D . R im a ne nze f ina li 6 3 .8 0 8 6 4 .9 2 2
Other increases/decreases, apart from any conferrals, include:
financial charges of 1,842 thousand euro recognised in the income statement; actuarial gains/losses of 615 thousand euro recognised in valuation reserves, net of
the related tax effect.
11.2 Other information
Table summarising the technical bases adopted for the valuation of the staff
severance indemnity and seniority bonuses
31st December 2009
Mortality rate RGS48 tables were used, appropriately updated on the basis of historical corporate data
Turn-over rate A table derived from the appropriate standardisation of historical corporate data has been used.
Severance advances The probability of advances has been set at 100%, while the average amounts requested, calculated on the basis of statutory provisions introduced under the 2007 Finance Bill, has been
estimated as 100%.
Inflation rates The inflationary scenario which is envisaged may cover the long-term, has led to the use of a rate of 2% per annum.
Discounting rates For the valuation as at 31st December 2009 a rate of 4.871% was used as the average of the average of the rates of the EUR compositeA curve as at 30th December 2009 (source: Bloomberg) weighted on the basis of the ratio between the amount paid/advanced and the total amount to be paid/advanced for each maturity until the extinction of the population considered.
135
31st December 2008
Mortality rate Istat 1999 and RGS48 tables were used, updated based on appropriate historical corporate data
Turn-over rate Table derived from the appropriate standardisation of historical corporate data in recent years, considering the terminations that were approved in the updated Business Plan.
Severance advances The probability of advances, calculated based on historical corporate data, is between 1% and 4.2%, while the average amount required is between 40% and 70%.
Inflation rates The inflation scenario predicts rates over the long term between 1.7% and 2%.
Discounting rates For the valuation as at 31st December 2008, the Euro Swap rate
curve was used, based on the turbulence in financial markets; for default risk of government and corporate securities, it was deemed appropriate to sum the Euro Swap curve with the Credit Spread Curve “Cash_Govt_of_Italy_31122008”, or bootstrap.
136
Section 12 Provisions for Liabilities and Charges – Item 120 -
12.1 Provisions for liabilities and charges: composition
Vo c i / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Fo ndo di quies cenza aziendali - -
2. Altri fo ndi ris chi e o neri 2 2 .9 9 9 2 1.5 6 1
2.1 co ntro vers ie legali 7.274 6.595
2.2 o neri per il pers o nale 4.486 3.839
2.3 a ltri 11.239 11.127
To ta le 2 2 .9 9 9 2 1.5 6 1
12.2 Provisions for liabilities and charges: annual changes
F o ndi di quie s c e nza A ltri fo ndi To ta le
A . Es is te nze in iz ia li - 2 1.5 6 1 2 1.5 6 1
B . A um e nt i - 6 .9 7 4 6 .9 7 4
B.1 Accanto namento de ll'es erc izio - 6.138 6.138
B.2 Variazio ni do vute a l pas s are de l tempo - 461 461
B.3 Variazio ni do vute a mo difiche de l tas s o di s co nto - 253 253
B.4 Altre variazio ni - 122 122
C . D im inuzio ni - (5 .5 3 6 ) (5 .5 3 6 )
C.1 Utilizzo de ll'es erc izio - (3.607) (3.607)
C.2 Variazio ni do vute a mo difiche de l tas s o di s co nto - - -
C.3 Altre variazio ni - (1.929) (1.929)
D . R im a ne nze f ina li - 2 2 .9 9 9 2 2 .9 9 9
12.3 Defined-benefit company retirement funds
There were no defined-benefit company retirement funds.
12.4 Provisions for liabilities and charges - other provisions
3 1/ 12 / 2 0 0 8 A c c a nto na m e ntiA ltre
v a ria zio niUtilizz i
A ltre
v a ria zio ni3 1/ 12 / 2 0 0 9
Co ntro vers ie legali 6.595 2.565 206 1.472 620 7.274
Oneri per il pers o nale 3.839 570 298 220 - 4.486
Altri fo ndi 11.128 3.003 332 1.914 1.309 11.239
di cui per azio ni revo cato rie 7.425 1.733 332 1.313 557 7.619
To ta le 2 1.5 6 1 6 .13 8 8 3 6 3 .6 0 7 1.9 2 9 2 2 .9 9 9
A um e nti D im inuzio ni
Other provisions for liabilities and charges mainly include funds for revocation action and
provisions for complaints regarding financial investments and compound interest. Estimates
were made on a case-by-case basis, by examining the single positions where the
counterparty had already filed proceedings against the bank and on the basis of the
potential risk estimated using historical-statistical series where there were objective elements of risk (e.g. complaints received) that had not yet turned into legal action. If the
financial payment relating to the provisions was expected to be made after more than one
year, then the effect of discounting was calculated using the 1 year Euribor as the discount
rate. On average, the payments are expected to take place within 3 to 5 years.
137
Potential liabilities
Banco di Brescia is involved in a number of judicial proceedings of differing natures and
legal proceedings resulting from the ordinary performance of its activities. While it is not
possible to know the final outcomes of these proceedings with certainty, any unfavourable results would not have, either singularly or totally, a significant negative effect on the
Bank’s balance sheet or income statement.
In addition, note the fact that in July 2006 the Rome Court of Appeal issued a judgment of
second instance in favour of Banco di Brescia regarding an action brought against Milano
Assicurazioni, ordering the latter to pay 4.9 million euro to the Bank. This amount was collected and recorded in the 2007 income statements. Despite Milano Assicurazioni’s
recourse to the Court of Appeal, there has been no provision made, since, based on the
opinion of the Bank’s legal advisors, the risks of losing are deemed not relevant.
In relation to the tax assessment for 2006, already illustrated in detail in the “Director’s Report – Other information”, it is deemed that the dispute concerning the alleged failure to
apply withholdings by way of substitute tax, may be settled favourably. The risk, established
as possible in accordance with IAS 37, can be quantified as 1.6 million euro for additional
taxes and around 400 thousand euro for fines.
In conclusion, with regard to the Appeal against the penalty measures from the Italian Antitrust Authority, already described in detail in the “Directors’ Report – Other
information”, it is believed that the risk, established as possible in accordance with IAS 37,
can be quantified as 450 thousand euro, despite the solid reasoning behind the first level
sentence, given the inevitable margin of uncertainty regarding the outcome of the case.
138
Section 14 Shareholders’ Equity - Items 130, 150, 160, 170, 180, 190 and 200 -
14.1 “Share capital” and “Own shares”: composition
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Nr azio ni ORDINARIE 872.500.000 872.500.000
da no minale Euro cadauna 0,68 0,68
Nr azio ni P ROP RIE - -
da no minale Euro cadauna - -
14.2 Share capital – Number of shares: annual changes In 2009 there were no changes in share capital.
14.3 Share capital: other information
Nominal value of the shares
The share capital is fully subscribed and paid in and is made up of 872,500,000 ordinary
shares with a par value of 0.68 euro each. Rights, benefits and restrictions on shares
There are no benefits or restrictions on the Bank’s shares. For more information on
restrictions on dividend distribution and capital repayment, please refer to the summary
table for the shareholders’ equity items by origin, indicating the possibility of use and distribution as per Article 2427.1.7 bis of the Italian Civil Code, illustrated at the end of this
section.
14.4 Retained earnings: other information
Retained earnings amount to 423,226 thousand euro and comprise:
Legal reserve of 84,074 thousand euro; the increase of 10,833 thousand euro
corresponds to the amount resolved by the Shareholders’ Meeting in the last
financial year when approving the allocation of income,
Extraordinary reserve of 326,973 euro net of First-Time Adoption reserves (-45,434 thousand euro); the increase of 147,608 thousand euro relates to the allocation of
income made in the previous financial year,
Reserve for actuarial gains/losses for 2,409 thousand euro,
Reserve pursuant to Article 13 of Italian Law 124/93 of 210 thousand euro,
General Banking Risk Reserve of 9,560 thousand euro.
Composition of shareholders’ equity according to origin, availability and distribution at 31st December 2009.
139
pe r c o pe rtura
pe rdite
pe r a ltre
ra g io ni
A) CAPITALE
-Capita le s o c ia le 593.300 - - 142.479 nes s un utilizzo nes s un utilizzo
B) RISERVE DI CAPITALE
-Ris erva s o vrapprezzo azio ni 120.000 A B - - - (2)
C) RISERVE DI UTILI
-Ris erva lega le 84.074 B - - nes s un utilizzo nes s un utilizzo
-Ris erva s trao rdinaria 336.533 A B C 336.533 - nes s un utilizzo (3)
-Ris erva rifo rma previd. co mplementare 2.409 - - - nes s un utilizzo nes s un utilizzo
-Ris erva ex D.Lgs . N.124 / 1993 210 A B - 210 nes s un utilizzo nes s un utilizzo
D) RISERVE DI ALTRA NATURA
-Ris erva di riva lutazio ne ex L. n. 342/2000 6.773 A B - 6.773 nes s un utilizzo nes s un utilizzo
-Ris erva di riva lutazio ne ex L. n. 350/2003 6.006 A B - 6.006 nes s un utilizzo nes s un utilizzo
-Ris erva da va l. s trumenti fin. des t.vend. 9.779 - - - nes s un utilizzo nes s un utilizzo
-Ris erva da va lutazio ne IAS (1.352) - - - nes s un utilizzo nes s un utilizzo
TOTALE 1.157.732 336.533 155.468
-Utile de ll'es erc izio 2009 128.973 - - - - -
TOTALE PATRIMONIO (4) 1.286.705 336.533 155.468
IM P OR TO VIN C OLO
F IS C A LE (1)
R ie pilo g o de lle ut ilizza z io ni
e f fe t tua te ne i tre pre c e de nt i
e s e rc iz i
P OS S IB ILITA '
D I
UTILIZZA ZION E
QUOTA
D IS P ON IB ILE
Key: A: to increase share capital
B: to make up losses C: to distribute to shareholders Notes:
(1) Amounts subject to deferred taxation. (2) This reserve cannot be distributed as the legal reserve has not reached the limit set by Article 2430 of the Italian Civil Code. (3) In 2005 the statutory reserve was reduced by 35,874 thousand euro in order to make up for negative reserves
due to the transition to IAS. (4) The restricted portion of shareholders’ equity pursuant to Article 109.4, letter b) of Presidential Decree 917/86 is equal to 3.2 million euro.
14.5. Capital instruments: composition and annual changes
There were no instruments representing capital.
14.6 Other information
None of the disclosure envisaged by IAS 1, sections 136A, 137 and 80A requires to be provided for the Bank.
140
Other Information
1. Guarantees granted and commitments
Ope ra zio ni 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1) Garanzie rilas c ia te di na tura finanziaria 346.813 330.725
a) Banche 19.633 16.568
b) Cliente la 327.180 314.157
2) Garanzie rilas c ia te di na tura co mmercia le 709.174 817.683
a) Banche 9.933 8.290
b) Cliente la 699.241 809.393
3) Impegni irrevo cabili ad e ro gare fo ndi 1.208.173 1.582.376
a) Banche 15.097 161.217
i) a utilizzo certo 15.097 161.217
ii) a utilizzo incerto - -
b) Cliente la 1.193.076 1.421.159
i) a utilizzo certo 1.309 1.257
ii) a utilizzo incerto 1.191.767 1.419.902
4) Impegni s o tto s tanti a i deriva ti s u c rediti: vendite di pro tezio ne - -
5) Attività co s tituite in garanzia di o bbligazio ni di te rzi - -
6) Altri impegni 10.826 102
To ta le 2 .2 7 4 .9 8 6 2 .7 3 0 .8 8 6
The credit risk associated with guarantees issued and commitments is recognised on the
same basis as for cash loans. The estimated portion of doubtful outcome is stated under
“Other liabilities”.
The amount of the commitments to the Interbank Fund for the Protection of Deposits was
reclassified from “Other commitments” to “Financial guarantees issued, point a) Banks”. The item “Other commitments” in 2009 included the credit facility margins on endorsement
credits.
2. Assets set up as guarantee of own liabilities and commitments
P o rta fo g li 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Attività finanziarie de tenute per la nego ziazio ne - -
2. Attività finanziarie va luta te a l fa ir va lue - -
3. Attività finanziarie dis po nibili per la vendita - -
4. Attività finanziarie de tenute s ino a lla s cadenza - -
5. Crediti vers o banche - -
6. Crediti vers o c liente la 65.330 99.068
7. Attività materia li - -
3. Information on operating leases
There were no operating leases in place.
141
4. Management and trading services on behalf of third parties
Tipo lo g ia s e rv iz i 3 1/ 12 / 2 0 0 9
1. Es e c uzio ne di o rdini pe r c o nto de lla c lie nte la
a) Acquis ti -
1. Rego la ti -
2. No n rego la ti -
b) Vendite -
1. Rego la te -
2. No n rego la te -
2 . Ge s t io ni di po rta fo g li 4 5 0
a) individuali 450
b) co lle ttive -
3 . C us to dia e a m m inis tra z io ne di t ito li 2 6 .4 6 0 .6 0 7
a) tito li di te rzi in depo s ito : co nnes s i co n lo s vo lgimento di banca depo s ita ria (es c lus e le ges tio ni di po rta fo gli) -
1. tito li emes s i da lla banca che redige il bilanc io -
2. a ltri tito li -
b) Tito li di te rzi in depo s ito (es c lus e ges tio ni di po rta fo gli): a ltri 13.767.369
1. tito li emes s i da lla banca che redige il bilanc io 4.081.687
2. a ltri tito li 9.685.682
c) tito li di te rzi depo s ita ti pres s o te rzi 12.612.781
d) tito li di pro prie tà depo s ita ti pres s o te rzi 80.457
4 ) A ltre o pe ra zio ni 5 .6 6 5 .2 9 7
To ta le 3 2 .12 6 .3 5 4
The item “Other transactions” indicates the volumes referring to stock market orders for
securities trading activities.
142
Part C – Information on the Income Statement
Section 1 Interest – Items 10 and 20 -
1.1 Interest income and similar revenues: composition
Vo c i / F o rm e te c nic he Tito li d i D e bito F ina nzia m e nt i A ltre o pe ra zio ni 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Attività finanziarie de tenute per la nego ziazio ne 580 - - 5 8 0 1.6 7 9
2. Attività finanziarie dis po nibili per la vendita - - - - -
3. Attività finanziarie de tenute fino a lla s cadenza - - - - -
4. Crediti vers o banche 32 116.073 - 116 .10 5 2 18 .5 6 9
5. Crediti vers o c liente la 234 544.030 28 5 4 4 .2 9 2 9 0 4 .4 6 1
6. Attività finanziarie va luta te a l fa ir va lue - - - - -
7. Deriva ti di co pertura X X 7.987 7 .9 8 7 -
8. Altre a ttività x x 20 2 0 3 5
To ta le 8 4 6 6 6 0 .10 3 8 .0 3 5 6 6 8 .9 8 4 1.12 4 .7 4 4
The item “Loans to customers - financing” includes interest totalling:
38,063 thousand euro accrued on loans granted to guarantee Covered Bond issues;
65,015 thousand euro pertaining to the securitisation transaction.
Total interest on impaired assets amounted to 30,049 thousand euro (18,043 thousand euro as at 31st December 2008).
The item “Loans to customers” includes Overdraft Commission for a total of 15,503
thousand euro. As from 1st July 2009, following the introduction of the new commission
system, this revenue became a component of the new Fund Provision Commission indicated
under “Commission income”- Other services. For further details, please refer to the information in the section “Accounting policies –
Section 4 Other aspects – Fund Provision Commission (former Overdraft Commission)”.
1.2 Interest income and similar revenues: spread on hedging transactions
Vo c i/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A. Differenzia li po s itivi re la tivi a o perazio ni di co pertura : 111.704 -
B. Differenzia li negativi re la tivi a o perazio ni di co pertura : (103.717) -
C . S a ldo (A -B ) 7 .9 8 7 -
1.3 Interest income and similar revenues: other information
1.3.1 Interest income on financial assets in foreign currency
Vo c i/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Interes s i a ttivi s u a ttività finanziarie in valuta 2.477 6.582
1.3.2 Interest income on finance lease transactions
There are no transactions of this type.
143
1.4 Interest expense and similar charges: composition
Vo c i/ F o rm e te c nic he D e bit i Tito li A ltre o pe ra zio ni 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Debiti vers o banche centra li - X - - -
2. Debiti vers o banche (12.894) X - (12 .8 9 4 ) (8 8 .0 4 4 )
3. Debiti vers o c liente la (77.195) X (34) (7 7 .2 2 9 ) (2 3 7 .9 7 0 )
4. Tito li in c irco lazio ne X (209.842) - (2 0 9 .8 4 2 ) (2 6 1.14 1)
5. P as s ività finanziarie di nego ziazio ne - - - - -
6. P as s ività finanziarie va luta te a l fair value - - - - -
7. Altre pas s ività e fo ndi X X (246) (2 4 6 ) (19 3 )
8. Deriva ti di co pertura X X - - (2 4 .3 7 9 )
To ta le (9 0 .0 8 9 ) (2 0 9 .8 4 2 ) (2 8 0 ) (3 0 0 .2 11) (6 11.7 2 7 )
1.5 Interest expense and similar charges: spread on hedging transactions
Vo c i/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A. Differenzia li po s itivi re la tivi a o perazio ni di co pertura : - 147.632
B. Differenzia li negativi re la tivi a o perazio ni di co pertura : - (172.011)
C . S a ldo (A -B ) - (2 4 .3 7 9 )
1.6 Interest expense and similar charges: other information
1.6.1 Interest expense on liabilities in foreign currency
Vo c i/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Interes s i pas s ivi s u pas s ività in valuta (11.211) (33.362)
1.6.2 Interest expense on finance lease transaction liabilities
Vo c i/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Interes s i pas s ivi s u pas s ività per o perazio ni di lo cazio ne finanziaria (34) (37)
144
Section 2 Commission – Items 40 and 50 -
2.1 Commission income: composition
Tipo lo g ia s e rv iz i/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
a) garanzie rilas c ia te 7.888 8.337
b) deriva ti s u c rediti - -
c ) s e rvizi di ges tio ne , inte rmediazio ne e co ns ulenza : 95.504 104.527
1. nego ziazio ne di s trumenti finanzia ri 40 173
2. nego ziazio ne di va lute 2.491 3.138
3. ges tio ni di po rta fo gli 57 6.189
3.1. individua li 57 6.189
3.2. co lle ttive - -
4. cus to dia e amminis trazio ne di tito li 2.189 1.872
5. banca depo s ita ria - -
6. co llo camento di tito li 29.848 32.186
7. a ttività di ricezio ne e tras mis s io ne di o rdini 7.873 7.006
8. a ttività di co ns ulenza 2 -
8.1 in materia di inves timenti 2 -
8.2 in materia di s truttura finanzia ria - -
9. dis tribuzio ne di s e rvizi di te rzi 53.004 53.963
9.1. Ges tio ni di po rta fo gli 7.538 4.985
9.1.1. individua li 7.538 4.985
9.1.2. co lle ttive - -
9.2. pro do tti as s icura tivi 22.162 25.040
9.3. a ltri pro do tti 23.304 23.938
d) s e rvizi di incas s o e pagamento 31.806 35.124
e ) s e rvizi di s e rvic ing per o perazio ni di ca rto la rizzazio ne - 196
f) s e rvizi per o perazio ni di fac to ring - -
g) es erc izio di es a tto rie e ricevito rie - -
h) a ttività di ges tio ne di s is temi multila te ra li di s cambio - -
i) tenuta e ges tio ne de i co nti co rrenti 38.570 41.264
j) a ltri s e rvizi 27.175 18.377
To ta le 2 0 0 .9 4 3 2 0 7 .8 2 5
The item “Other services” included Fund Provision Commission as from 1st July 2009 for a
total of 11,954 thousand euro, further to the introduction of the new commission system.
For further details, please refer to the information in the section “Accounting policies –
Section 4 Other aspects – Fund Provision Commission (former Overdraft Commission)”.
145
An analysis of commission generated on other services is presented in the table below.
D e tta g lio c o m m is s io ni "a ltri s e rv iz i" 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
- finanziamenti, mutui e CDF 19.073 10.439
- es tero 2.323 2.591
- a ltre 5.778 5.347
To ta le 2 7 .17 5 18 .3 7 7
2.2 Commission income: products and services distribution channels
Products and services are wholly placed through the bank's own branches.
2.3 Commission expense: composition
S e rv iz i/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
a) garanzie ricevute (1.581) (677)
b) deriva ti s u c rediti - -
c ) s e rvizi di ges tio ne , inte rmediazio ne e co ns ulenza: (3.051) (5.127)
1. nego ziazio ne di s trumenti finanziari (2.592) (2.159)
2. nego ziazio ne di va lute - -
3. ges tio ni di po rta fo gli: (145) (2.576)
3.1. pro prie - -
3.2. de lega te da te rzi (145) (2.576)
4. cus to dia e amminis trazio ne di tito li (314) (392)
5. co llo camento di s trumenti finanziari - -
6. o fferta fuo ri s ede di s trumenti finanziari, pro do tti e s ervizi - -
d) s e rvizi di incas s o e pagamento (9.826) (11.692)
e ) a ltri s e rvizi (1.740) (772)
To ta le (16 .19 8 ) (18 .2 6 8 )
The item “guarantees received” includes 1,446 thousand euro in commission to be paid to the Parent Company for sureties issued to guarantee issues of Certificates of Deposit and
Euro Commercial Paper by the foreign branch.
146
Section 3 Dividends and Similar Income – Item 70 -
3.1 Dividends and similar income: composition
ERRORE!
D iv ide ndiP ro v e nt i da
quo te O.I.C .R .D iv ide ndi
P ro v e nt i da
quo te O.I.C .R .
A. Attività finanziarie de tenute per la nego ziazio ne - - - -
B. Attività finanziarie dis po nibili per la vendita 88 - 2.156 -
C. Attività finanziarie va luta te a l fa ir va lue - - - -
D. P artec ipazio ni 1.611 X 1.682 X
To ta le 1.6 9 9 - 3 .8 3 8 -
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Vo c i/ P ro v e nt i
Section 4 Net Profit (Loss) from Trading Activities - Item 80 -
4.1. Net profit (loss) from trading activities: composition
Ope ra zio ni/ C o m po ne nt i re dditua liP lus v a le nze
(A )
Utile da
ne g o zia z io ne
(B )
M inus v a le nze
(C )
P e rdite da
ne g o zia z io ne
(D )
R is ulta to ne t to
[ (A +B )-(C +D )]3 1/ 12 / 2 0 0 8
1. A tt iv ità f ina nzia rie di ne g o zia z io ne 5 11 2 .17 9 (3 ) (6 1) 2 .6 2 6 (2 .6 2 8 )
1.1 Tito li di debito 509 746 (3) (12) 1.240 (4.595)
1.2 Tito li di capita le 2 13 - (24) (9) (9)
1.3 Quo te di O.I.C.R. - - - - - -
1.4 Finanziamenti - - - - - -
1.5 Altre - 1.420 - (25) 1.395 1.976
2 . P a s s iv ità f ina nzia rie di ne g o zia z io ne - - - - - -
2.1 Tito li di debito - - - - - -
2.2 Debiti - - - - -
2.2 Altre - - - - - -
3 . A ltre a t t iv ità e pa s s iv ità f ina nzia rie : d if fe re nze
di c a m bioX X X X 4 6 (2 4 5 )
4 . S trum e nt i de riv a t i 9 .9 0 4 14 5 .2 4 4 (12 .7 7 4 ) (13 9 .9 6 0 ) 2 .8 4 2 6 .113
4.1 Deriva ti finanziari: 9.904 145.244 (12.774) (139.960) 2.842 6.113
- Su tito li di debito e tas s i di inte res s e 9.230 144.088 (12.115) (138.841) 2.362 3.908
- Su tito li di capita le e indic i azio nari - 1 - - 1 1.416
- Su va lute e o ro X X X X 428 786
- Altri 674 1.155 (659) (1.119) 51 3
4.2 Deriva ti s u c rediti - - - - - -
To ta le 10 .4 15 14 7 .4 2 3 (12 .7 7 7 ) (14 0 .0 2 1) 5 .5 14 3 .2 4 0
The amount shown under “Debt securities” as at 31st December 2008, includes the 5.1
million euro writedown of Lehman Brothers securities held in the foreign branch’s portfolio.
147
Section 5 Net Profit (Loss) from Hedging Activities - Item 90 -
5.1. Net profit (loss) from hedging activities: composition
C o m po ne nt i re dditua li/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A . P ro v e nt i re la t iv i a :
A.1 Deriva ti di co pertura de l fair value 17.986 69.576
A.2 Attività finanziarie co perte (fair value ) 3.337 57.723
A.3 P as s ività finanziarie co perte (fair value ) 15.806 -
A.4 Deriva ti finanziari di co pertura de i flus s i finanziari - -
A.5 Attività e pas s ività in va luta - -
To ta le pro v e nt i de ll ' a t t iv ità di c o pe rtura ( A ) 3 7 .12 9 12 7 .2 9 9
B . One ri re la t iv i a :
B.1 Deriva ti di co pertura a l fair value (14.728) (56.809)
B.2 Attività finanziarie co perte (fair value ) (6.819) -
B .3 P as s ività finanziarie co perte (fair value ) (11.244) (79.228)
B.4 Deriva ti finanziari di co pertura de i flus s i finanziari - -
B .5 Attività e pas s ività in va luta - -
To ta le o ne ri de ll ' a t t iv ità di c o pe rtura ( B ) (3 2 .7 9 1) (13 6 .0 3 7 )
C . R is ulta to ne t to de ll ' a t t iv ità di c o pe rtura ( A - B ) 4 .3 3 8 (8 .7 3 8 )
Section 6 Profit (Loss) on Disposal/Repurchase – Item 100 -
6.1 Profit (loss) on disposal/repurchase: composition
Utili P e rditeR is ulta to
ne t toUtili P e rdite
R is ulta to
ne t to
A tt iv ità F ina nzia rie
1. Crediti vers o banche - - - - (38) (38)
2. Crediti vers o c liente la - - - - - -
3. Attività finanziarie dis po nibili per la vendita 491 - 491 13.873 - 13.873
3.1 Tito li di debito - - - - - -
3.2 Tito li di capita le 491 - 491 13.873 - 13.873
3.3 Quo te di O.I.C.R - - - - - -
3.4 Finanziamenti - - - - - -
4. Attività finanziarie de tenute s ino a lla s cadenza - - - - - -
To ta le a t t iv ità 4 9 1 - 4 9 1 13 .8 7 3 (3 8 ) 13 .8 3 5
P a s s iv ità f ina nzia rie
1. Debiti vers o banche - - - - - -
2. Debiti vers o c liente la - - - - - -
3. Tito li di c irco lazio ne 519 (658) (139) 1.666 (598) 1.068
To ta le pa s s iv ità 5 19 (6 5 8 ) (13 9 ) 1.6 6 6 (5 9 8 ) 1.0 6 8
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Vo c i/ C o m po ne nt i re dditua li
The amounts indicated in point 3.2 represent the capital gains on the disposal of Centrale Bilanci (as at 31st December 2008) and the related adjustment (around 486 thousand euro)
in 2009.
148
Section 8 Net Adjustments/value recoveries due to impairment- Item 130 -
8.1 Net adjustments due to impairment on loans: composition
R e tt if ic he di v a lo re (1) R ipre s e di v a lo re (2 )
S pe c if ic he To ta le To ta le
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
D a inte re s s i A ltre ripre s e D a inte re s s i A ltre ripre s e
A. Crediti vers o banche - - - - - - - - -
- F inanziamenti - - - - - - - - -
- Tito li di debito - - - - - - - - -
B. Crediti vers o c liente la (25.469) (54.297) (8.764) 4.844 14.466 - - (69.220) (70.490)
- F inanziamenti (25.469) (54.297) (8.764) 4.844 14.466 - - (69.220) (70.490)
- Tito li di debito - - - - - - - - -
C . To ta le (2 5 .4 6 9 ) (5 4 .2 9 7 ) (8 .7 6 4 ) 4 .8 4 4 14 .4 6 6 - - (6 9 .2 2 0 ) (7 0 .4 9 0 )
D i po rta fo g lioOpe ra zio ni/ C o m po ne nt
i re dditua liD i po rta fo g lio
C a nc e lla z io ni A ltre
S pe c if ic he
8.2 Net adjustments due to impairment of available-for-sale financial assets: composition
C a nc e lla z io ni A ltre da inte re s s i a ltre ripre s e
A. Tito li di debito - - - - - -
B. Tito li di capita le - (94) X X (9 4 ) (6 .4 3 2 )
C. Quo te O.I.C.R. - - X - - -
D. Finanziamenti a banche - - - - - -
E. Finanziamenti a c liente la - - - - - -
To ta le - (9 4 ) - - (9 4 ) (6 .4 3 2 )
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8Ope ra zio ni/ C o m po ne nt i re dditua li
R e tt if ic he di v a lo re (1)
S pe c if ic he S pe c if ic he
R ipre s e di v a lo re (2 )
The amounts refer to the writedown of the Linea Più (2009) and Hopa (2008) positions.
149
8.4 Net adjustments due to impairment of other financial transactions: composition
C a nc e lla z io ni A ltre D a inte re s s i A ltre ripre s e D a inte re s s i A ltre ripre s e
A. Garanzie rilas c ia te - (1.052) (13) - - - - (1.0 6 5 ) 2 .2 7 0
B. Deriva ti s u c rediti - - - - - - - - -
C. Impegni ad ero gare fo ndi - - (189) - - - - (18 9 ) -
D. Altre o perazio ni - - - - - - - - -
E. To ta le - (1.0 5 2 ) (2 0 2 ) - - - - (1.2 5 4 ) 2 .2 7 0
S pe c if ic he
D i po rta fo g lio
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8Ope ra zio ni/ C o m po ne nt i re dditua li
R e tt if ic he di v a lo re ( 1 ) R ipre s e di v a lo re ( 2 )
S pe c if ic he D i po rta fo g lio
150
Section 9 Administrative Expenses – Item 150 -
9.1. Staff costs: composition
Tipo lo g ia di s pe s e / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1) P e rs o na le dipe nde nte (16 4 .4 2 5 ) (18 2 .6 4 0 )
a) Sa lari e S tipendi (114.196) (124.317)
b) Oneri s o c ia li (30.978) (34.426)
c ) Indennità di fine rappo rto - (173)
d) Spes e previdenzia li - -
e ) Accanto namento a l tra ttamento di fine rappo rto de l pers o nale (2.258) (3.782)
f) Accanto namento a l fo ndo di tra ttamento di ques c ienza e o bblighi s imili: - -
- a co ntribuzio ne definita - -
- a benefic i definiti - -
g) Vers amenti a i fo ndi di previdenza co mplementare es te rni: (13.794) (14.232)
- a co ntribuzio ne definita (13.794) (14.232)
- a benefic i definiti - -
h) Co s ti derivanti da acco rdi di pagamento bas a ti s u pro pri s trumenti pa trimo nia li - -
i) Altri benefic i a favo re de i dipendenti (3.199) (5.710)
2 ) A ltro pe rs o na le in a t t iv ità (2 7 0 ) (1.3 9 5 )
3 ) A m m inis tra to ri (1.8 0 0 ) (1.6 8 7 )
4 ) P e rs o na le c o llo c a to a ripo s o - -
5 ) R e c upe ri d i s pe s e pe r dipe nde nt i d is ta c c a t i pre s s o a ltre a z ie nde 5 .4 2 7 5 .0 6 1
6 ) R im bo rs i d i s pe s e pe r dipe nde nt i d i te rz i d is ta c c a t i pre s s o la s o c ie tà (4 .0 5 6 ) (2 .2 9 3 )
To ta le (16 5 .12 4 ) (18 2 .9 5 4 )
The “Directors” item includes the fees due to the Board of Statutory Auditors.
151
9.2 Average headcount by category
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1) P ER S ON A LE D IP EN D EN TE 2 .5 15 2 .5 9 5
a . dirigenti 52 59
b. to ta le quadri dire ttivi 876 864
c. res tante pers o nale 1.587 1.672
2 ) A LTR O P ER S ON A LE 2 6 5 5
Headcount includes employees seconded from other companies and excludes employees of
the Bank that have been seconded to other companies. The “Other personnel” item includes
directors, statutory auditors, workers with temporary agency contracts and other
professionals.
9.3 Defined-benefit company retirement funds: total costs
There were no defined-benefit company retirement funds.
9.4 Other benefits for employees
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Incentivi a ll'es o do e fo ndi s o s tegno a l reddito (12) (655)
Spes e re la tive a i buo ni pas to (1.778) (2.447)
Spes e as s icura tive (720) (626)
Spes e per partec ipazio ne a co rs i e fo rmazio ne de l pers o nale (146) (358)
Recupero fo rmazio ne pers o nale es erc izi precedenti 367 459
Altre s pes e (910) (2.083)
To ta le (3 .19 9 ) (5 .7 10 )
There were no cost items pursuant to IAS 19, sections 131, 141 and 142.
152
9.5 Other administrative expenses: composition
Tipo lo g ia s e rv iz i/ Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A . A ltre s pe s e a m m inis tra t iv e (13 1.2 3 7 ) (14 9 .0 3 6 )
Affitti pas s ivi (12.855) (11.772)
Servizi pro fes s io na li e co ns ulenze (4.919) (3.729)
Cano ni lo cazio ne hardware , s o ftware ed a ltri beni (3.262) (4.240)
Manutenzio ni hardware , s o ftware ed a ltri beni (2.305) (1.870)
Co nduzio ne immo bili (7.712) (8.433)
Manutenzio ne immo bili e impianti (3.401) (3.556)
Co ntazio ne , tras po rto e ges tio ne va lo ri (3.557) (3.820)
Co ntributi as s o c ia tivi (1.253) (1.041)
Info rmazio ni e vis ure (1.554) (1.320)
P erio dic i e vo lumi (271) (317)
P o s ta li (5.165) (5.088)
P remi as s icura tivi (8.607) (10.212)
P ubblic ità e pro mo zio ne (3.113) (3.152)
Rappres entanza (204) (153)
Te le fo niche e tras mis s io ne da ti (6.609) (8.456)
Servizi di o uts o urc ing (4.476) (4.049)
Spes e di viaggio (2.448) (3.167)
Cano ni s e rvice res i da s o c ie ta de l gruppo (53.130) (62.426)
Spes e per recupero c rediti (2.632) (2.301)
S tampati, cance lle ria e mat. Co ns umo (1.180) (1.331)
Tras po rti e tras lo chi (993) (1.057)
Vigilanza (1.537) (1.405)
Spes e o perazio ne di aggregazio ne UBI - (6.089)
Altre s pes e (54) (52)
B . Im po s te indire t te (2 6 .7 6 1) (2 7 .7 3 8 )
- Impo s te indire tte e tas s e (895) (499)
- Impo s te di bo llo (20.065) (20.786)
- Impo s te co munale s ugli immo bili (911) (926)
- Altre impo s te (4.890) (5.527)
To ta le (15 7 .9 9 8 ) (17 6 .7 7 4 )
With effect as from 1st January 2009, the VAT exemption regime was repealed, as envisaged
by Article 6 of Italian Law No. 133/1999, for services rendered within banking groups. The
income statement impact deriving from the application of the tax came to around 2,795
thousand euro.
153
Section 10 Net Provisions for Liabilities and Charges - Item 160 -
10.1 Net provisions for liabilities and charges: composition
A c c a nto na m e nti R ia ttribuzio niA c c a nto na m e nti
ne tt i
Co ntro vers ie legali 2.771 (620) 2.152
Oneri per il pers o nale 331 - 331
Altri fo ndi 2.084 (1.309) 775
di cui per azio ni revo cato rie 2.065 (557) 1.508
To ta le 5 .18 7 (1.9 2 9 ) 3 .2 5 8
Section 11 Net adjustments/value recoveries on tangible assets - Item 170 -
11.1. Net adjustments/value recoveries on tangible assets: composition
A tt iv ità / C o m po ne nte re dditua leA m m o rta m e nto
(a )
R e tt if ic he di v a lo re
pe r de te rio ra m e nto
(b)
R ipre s e di v a lo re
(c )
R is ulta to ne t to
(a +b-c )3 1/ 12 / 2 0 0 8
A. Attività materia li
A.1 Di pro prie tà (11.044) (20) - (11.0 6 4 ) (10.562)
- Ad us o funzio nale (10.033) (20) - (10 .0 5 3 ) (10.562)
- P er inves timento (1.011) - - (1.0 11) -
A.2 Acquis ite in leas ing finanziario (32) - - (3 2 ) (34)
- Ad us o funzio nale (32) - - (3 2 ) (34)
- P er inves timento - - - - -
To ta le (11.0 7 6 ) (2 0 ) - (11.0 9 6 ) (10 .5 9 6 )
With regard to the net adjustments on tangible assets held for investment, please see the
information provided in Section 11 of the Assets.
Section 12 Net adjustments/value recoveries on intangible assets - Item 180 -
12.1. Net adjustments/value recoveries on intangible assets: composition
A tt iv tà / C o m po ne nte re dditua leA m m o rta m e nto
(a )
R e tt if ic he di v a lo re
pe r de te rio ra m e nto
(b)
R ipre s e di v a lo re
(c )
R is ulta to ne t to
(a +b-c )3 1/ 12 / 2 0 0 8
A . A tt iv ità im m a te ria li
A.1 Di pro prie tà (9) - - (9 ) (18 )
- Genera te inte rnamente da ll'azienda - - - - -
- Altre (9) - - (9 ) (18 )
A.2 Acquis ite in leas ing finanziario - - - - -
To ta le (9 ) - - (9 ) (18 )
154
Section 13 Other Operating Income and Expense - Item 190 13.1 Other operating expense: composition
D e tta g lio A ltri o ne ri di g e s t io ne 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Oneri per co ntra tti di tes o reria agli enti pubblic i (2.896) (3.068)
Oneri per bo nific i co n valuta antergata (1.436) (7.519)
Ammo rtamento miglio rie s u beni di te rzi (963) (1.184)
Altri (5.925) (5.402)
To ta le (11.2 2 0 ) (17 .17 3 )
13.2 Other operating income: composition
D e tta g lio A ltri pro v e nt i d i g e s t io ne 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Fitti a ttivi s u immo bili 1.128 1.117
Recupero impo s ta di bo llo e impo s ta s o s titutiva 23.491 24.625
Recupero s pes e ed a ltri ricavi s u depo s iti e co nti co rrente 6.666 6.153
P ro venti per bo nific i co n va luta anterga ta 1.042 5.813
P ro venti da carto larizzazio ne - 226
Recupero di co s ti da s o c ie tà de l gruppo 801 6.023
Altri pro venti e recuperi di s pes e 21.361 18.865
To ta le 5 4 .4 8 9 6 2 .8 2 2
S bila nc io o ne ri/ pro v e nti di g e s t io ne 4 3 .2 6 9 4 5 .6 4 9
In 2008, the item “Recovery of costs from Group companies” included 5 million euro for the
recovery of charges from training and support activities related to migrating banks to the
target system.
155
Section 17 Profit (Loss) on Disposal of Investments – Item 240 -
17.1 Profit (loss) on disposal of investments: composition
C o m po ne nte re dditua le / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
A. Immo bili - 1.044
- Utili da ces s io ne - 1.044
- P erdite da ces s io ne - -
B . Altre a ttività (76) -
- Utili da ces s io ne - -
- P erdite da ces s io ne (76) -
R is ulta to ne t to (7 6 ) 1.0 4 4
156
Section 18 Income taxes for the Period on Continuing Operations - Item 260 -
18.1 Income taxes for the period on continuing operations: composition
C o m po ne nte / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Impo s te co rrenti (-) (89.853) (145.133)
2. Variazio ne delle impo s te co rrenti de i precedenti es erc izi (+/-) - -
3. Riduzio ne delle impo s te co rrenti de ll'es erc izio (+) - -
4. Variazio ne delle impo s te antic ipate (+/-) 4.863 (9.041)
5. Variazio ne delle impo s te differite (+/-) 13.403 55.337
6. Impo s te di co mpetenza dell'es erc izio (-) (-1+/-2+3+/-4+/-5) (71.587) (98.837)
For additional information, please refer to the Directors’ Report – Other information – Tax assets.
18.2 Reconciliation between the theoretical and actual tax burden
One re f is c a le IR ES te o ric o 2 0 0 .5 6 0 (5 5 .15 4 ) 2 7 ,5 0 %
Variazio ni in aum ento perm anenti
- s va lutazio ne tito li AFS no n deducibile 193 (53) 0,03%
- inte res s i pas s ivi no n deducibili 11.038 (3.036) 1,51%
- a ltri o neri no n deducibili 6.231 (1.714) 0,85%
- s pes e te le fo niche 280 (77) 0,04%
- impo s ta s o s titutiva ria llineamento quadro EC - (3.360) 1,68%
Variazio ni in dim inuzio ne perm anenti
- dividendi no n tas s a ti (1.614) 444 (0,22%)
- plus va lenze da ces s io ni tito li dis po nibili per la vendita (466) 128 (0,06%)
- inte res s i pas s ivi no n deducibili (2.051) 564 (0,28%)
- a ltre variazio ni in diminuzio ne (3.096) 851 (0,42%)
- c redito IRES per rimbo rs o IRAP 10% - 3.118 (1,55%)
- fis ca lità diffe rita rientro da quadro EC - 6.083 (3,03%)
One re f is c a le IR ES e f fe t t iv o 2 11.0 7 5 (5 2 .2 0 4 ) 2 6 ,0 3 %
One re f is c a le IR A P te o ric o 2 0 0 .5 6 0 (9 .6 6 7 ) 4 ,8 2 %
Variazio ni in aum ento perm anenti
- co s ti de l pers o na le no n deducibili a i fini IRAP 165.124 (7.959) 3,97%
- re ttifiche di va lo re s u c rediti no n deducibili a i fini IRAP 70.376 (3.392) 1,69%
- s va lutazio ne tito li AFS no n deducibile 193 (9) 0,00%
- accanto namenti a fo ndo ris chi 3.258 (157) 0,08%
- s pes e amminis tra tive e ammo rtamenti indeducibili 17.838 (860) 0,43%
- inte res s i pas s ivi indeducibili 12.008 (579) 0,29%
- recupero a tas s azio ne pro venti di ges tio ne 1.076 (52) 0,03%
- a ltri co s ti indeducibili 2.764 (133) 0,07%
Variazio ni in dim inuzio ne perm anenti
- plus va lenze es enti - - -
- dividendi (849) 41 (0,02%)
- deduzio ni Cuneo fis ca le (50.566) 2.437 (1,22%)
- a ltre variazio ni (175) 8 (0,00%)
- fis ca lità diffe rita rientro da quadro EC - 938 (0,47%)
One re f is c a le IR A P e f fe t t iv o 4 2 1.6 0 6 (19 .3 8 3 ) 9 ,6 6 %
To ta le o ne re f is c a le e f fe t t iv o IR ES e IR A P 2 0 0 .5 6 0 (7 1.5 8 7 ) 3 5 ,6 9 %
IR ES Im po nibile IR ES %
IR A P Im po nibile IR A P %
157
Section 21 Earnings Per Share
The Bank’s shares are not traded on financial markets, therefore disclosure relating to earnings per share is not provided.
Please note that the dividend per share for the 2008 financial year was 0.062 euro for each
of the 872,500,000 shares that make up the share capital. For 2009, the proposed
allocation, which is currently subject to approval, envisages a dividend distribution of 0.037 euro for each of the 872,500,000 shares.
158
Part D – Aggregate Profitability
Analytical statement of aggregate profitability
Importo LordoImposta sul
redditoImporto netto
10. Utile (perdita) di esercizio X X 128.973
Altre componenti reddituali
20. Attività finanziarie disponibili per la vendita: 3.017 (192) 2.826
a) variazioni di fair value 3.017 (192) 2.826
b) rigiro a conto economico - - -
- rettifiche da deterioramento -
- utile/perdite da realizzo -
c) altre variazioni -
30. Attività materiali -
40. Attività immateriali -
50. Copertura di investimenti esteri: - - -
a) variazioni di fair value -
b) rigiro a conto economico -
c) altre variazioni -
60. Copertura dei flussi finanziari: - - -
a) variazioni di fair value -
b) rigiro a conto economico -
c) altre variazioni -
70. Differenze di cambio: - - -
a) variazioni di valore -
b) rigiro a conto economico -
c) altre variazioni -
80. Attività non correnti in via di dismissione: - - -
a) variazioni di fair value -
b) rigiro a conto economico -
c) altre variazioni -
90. Utili (Perdite) attuariali su piani a benefici definiti 614 (169) 445
100.Quota delle riserve da valutazione delle partecipazioni valutate a
patrimonio netto: - - -
a) variazioni di fair value -
b) rigiro a conto economico - - -
- rettifiche da deterioramento -
- utile/perdite da realizzo -
c) altre variazioni -
110. Totale altre componenti reddituali 3.631 (360) 3.271
120. Redditività complessiva (Voce 10+110) X X 132.244
Voci
159
Part E – Information on Risks and the related Hedging Policies
In compliance with the prevailing regulations, the UBI Group has a risk management
system that fully integrates the guidelines of the Internal Control System, including the
organisational, regulatory and methodological framework to which the Group companies must conform so that the Parent Company can effectively and economically perform
strategic coordination and control, management and technical-operational activities.
The Bank proactively collaborates in identifying risks to which it is subject and defining the
relative measurement, management and control criteria.
The basic principles to which the Group’s risk analysis and management refer, in order to
pursue economic and regulatory capital allocations with increasing knowledge and
efficiency, are:
rigorous containment of financial and credit risk while actively guarding against all types of risk;
use of the logic of sustainable value creation in defining risk propensity and capital allocation;
decreasing risk propensity of the Group in reference to specific risk factors and/or specific activities in a body of legislative policy at Group level and for individual entities.
In this section, information is provided regarding the risk profiles listed below, the related
management and hedging policies used by the Bank, and operations on derivative financial
instruments:
a) credit risk;
b) market risk:
interest rates,
price,
exchange, c) liquidity risk;
d) operational risks.
For a complete overview of risks and uncertainties related to the Bank, refer to the specific
section in the Directors’ Report, prepared in compliance with Italian Legislative Decree No.
32 of 2nd February 2007, in implementation of Directive 2003/51/EC.
Section 1 Credit Risk
Qualitative information
1. General aspects
Strategies and policies for the assumption of credit risk and the related management
instruments are defined within the Parent Company by the Risk Capital and Policies Division along with the Credit Division. The Commercial Macro-Division, the Risk
Management Division and Research Services also collaborate in drafting the policies. In
developing credit policies, particular attention is paid to maintaining an adequate
risk/return profile and undertaking risks consistent with the risk propensity defined by
Senior Management and, more generally, with UBI Group’s mission. Lending policies are prioritised based on their support of local economies, households,
entrepreneurs, professionals, and small to medium-sized businesses. The specific attention
given to maintaining established relationships with customers and developing them over
time represents one of the Group’s strengths, reducing information mismatches and offering
continuity in relationships and support to customers over the long term. Even during the
complex economic conditions under way, the Banks ensures an adequate availability of
160
credit to the economy, while preserving the quality of its assets, complying among other
aspects with the “Agreements” entered into between the Italian Banking Association, the
Ministry of Finance and the Trade Associations.
Specific lending policies were defined for the Corporate and Small Business market to coordinate the development of the loan portfolio in terms of geographic distribution,
industry sectors and rating classes. Lending policies support the sales network in
evaluating the attractiveness of particular areas/sectors/counterparties in terms of value
creation and in evaluating the creditworthiness of counterparties.
Lending policies are developed based on:
macro-economic forecasts that allow the Bank to evaluate risk and growth expected in 2010 for various sectors and geographic areas;
loan development forecasts, through which expected growth rates are defined for each sub-portfolio, geographic area, sector and rating class;
a model for identifying geo-sectorial/risk clusters which are the most attractive.
Finally, specific attention is given to defining the handling of new products, developing
adequate reports to management regarding the compliance with the risk/return objectives,
calculation of minimum disbursement rates, borrower quality, guarantees received and expected recovery rates in the event of default.
2. Credit risk management policies
2.1 Organisational aspects
In performing standard credit intermediation activities, the Bank is exposed to the risk that loans disbursed may not be reimbursed by the borrower on maturity and may be partially or
entirely written down. More specifically, the risk profile of the loans is sensitive to the overall
performance of the economy, to deterioration in the financial position of the counterparties
(lack of liquidity, default, etc.) or changes in their competitive situation, structural or
technological changes in debtor businesses and other external factors (e.g., legislative changes, decline in value of the financial guarantees linked to market performance). An
additional risk element to which particular attention is paid is the level of diversification in
the loan portfolio among the various borrowers and the various sectors in which they
operate.
The organisational model used to structure the units in charge of lending is as follows:
Parent Company’s centralised control and coordination structures;
Head Offices of Banks and Subsidiaries, which oversee:
Credit Management divisions,
Decentralised Decision Centres,
Branches,
Corporate Business Unit (CBU),
Private Business Unit (PBU).
The characteristics of this organisational model, in addition to highly standardising the credit organisations within the Parent Company and the same structures in the network
banks, with the consequent process consistency and optimisation of information flows,
emphasise the clear distinction between the commercial functions and lending functions.
Loan disbursement is also differentiated by customer segment (Retail/Private and
Corporate) and specialised by the status of that segment: performing (managed by the
Retail, Private and Corporate Units) and problematic (managed by Problem Loan Units). Furthermore, the introduction of Decentralised Decision Centres (PDP) within the banks in
support of the Retail Branches and the structures for Private customers, guarantee the
effective coordination and liaison of the operating units on the relevant market. The Parent
Company, through the structures of the Credit Area, the Risk Control and Development and
161
Strategic Planning Macro-areas, the Loan Recovery Area and Audit Division of the Parent
Company and Group, oversees policy management, overall portfolio monitoring,
streamlining of evaluation systems, management of problem loans and compliance with
regulations.
With regard to all the parties (individuals or economic groups) with existing loans with Group banks and companies (including risk activities attributable to issuer risk and
derivative risk) totalling more than 50 million euro, the Parent Company must decide on an
Operating Limit, or a maximum loan limit for said counterparty at UBI Group level.
In addition, Group banks and companies must request a non-binding preliminary advisory
opinion from the Parent Company regarding: a) loan amounts and b) certain internal rating
classes.
Bank and product company structures carry out commercial and lending tasks and are
responsible for supervising both the activities carried out directly and through reporting
units. Specifically, responsibility for managing and monitoring performing loans lies, firstly,
with the Relation Managers, who maintain relationships with customers on a daily basis
and are the first to notice any signs of difficulty or deterioration in credit quality. However,
all employees of Group companies are expected to note, in a timely manner, any information that may signal the first signs of difficulty, or may advise other methods of relationship
management, thereby participating in the monitoring process.
Secondly, the organisational unit for monitoring credit risk – Credit Quality Monitoring Unit
– performs control, supervision and analysis of performing positions both in analytical and aggregate terms, with the intensity and depth based on the risk band of the counterparties
and the seriousness of the performance anomalies discovered. This unit, which is not
involved in the loan deliberation process, on its own initiative or upon request, evaluates
and prepares (or makes proposals to higher level decision-making bodies if the decision
exceeds its limits) appropriate downgrades of performing counterparties by requesting UBI
Banca’s Loan Division – Credit Services – Opinion Group for a preliminary, non-binding opinion in cases provided for under Loan Regulations. In UBI Banca’s Loan Division, the
Credit Quality Monitoring Unit coordinates and defines guidelines for monitoring loan
portfolios, supports the development of monitoring instruments, controlling credit policies
and preparing management reports.
2.2 Management, measurement and control systems
The Parent Company’s Credit Risk service is responsible for providing information on the
Bank’s credit risks, in order to monitor the risk trends in loans. The reports – submitted
quarterly to the Bank’s Board of Directors - describe loan run-off rate trends and illustrate the distribution by internal rating class, LGD and Expected Loss and therefore the average
risk trend of the loan portfolio, focusing on the Corporate Market and the Retail Market,
respectively for companies and individuals.
All the models which make up the Group’s Internal Rating System are handled by the
Parent Company’s Risk Management division and the Loan division. During 2009, the streaming of the internal rating systems in use on the target platform was
continued for the purpose of an increasingly more accurate measurement of the credit
worthiness both at individual counterpart level and aggregate level. In detail, steps were
taken to streamline some elements of the Corporate and Retail Business models, as well as
review the gauging of the PDs.
At present, the structures envisage the use of automated models for private customers and
smaller businesses, automated models integrating the qualitative questionnaire and the
geographical-sectorial module for medium and larger businesses, and a predominantly
subjective model for larger loans (or economic groups with loans greater than 20 million
euro).
Within the Bank, the processes that are generated or directly impacted by the introduction
of internal rating are:
162
identifying the rating calculation model for the counterparty;
assigning the first disbursement rating;
assigning the performance rating: assigning the rating to all counterparties based on variables relating to operations, risk, qualitative components and financial
statements, where available;
overriding the rating: request from the Relations Manager and the Network Banks’ central credit structure to change the rating calculated by the system;
monitoring the rating: verifying the performance rating, which is periodically recalculated after the first disbursement; annual rating verification: updating the
functional data for rating calculation by the parties concerned (Relations Manager).
The operating units involved in loan disbursement and renewal use the internal ratings, which are an essential and irreplaceable element of the valuations developed as part of loan
approval and revision. Proxies are defined by considering the risk profile of the customer or
transaction as represented by the rating, and managed by applying the Electronic Loan
Process (PEF). Ratings are used both in management reporting and in information flows
available to the Bank’s structures that are involved in the credit process.
A proposal may be made to override the rating class calculated by the Internal Rating System with another rating based on adopted models. These changes occur as a result of
evaluating information which is not considered by the rating model, not adequately weighted
by the model or whose future impact must be anticipated.
As indicated in the Bank of Italy Circular No. 263/2006 regarding new provisions for
banking oversight, the Group has adopted the standardised methodology to determine
supervisory capital. Specifically, with regard to the “Businesses and other subjects” supervisory exposure class, it was decided to use, where possible, external evaluations of
creditworthiness provided by Moody’s and Lince recognised as an External Credit
Assessment Institution (ECAI) by the Bank of Italy.
The method for calculating collective credit impairment – on a consistent basis with the
decisions made by the Parent Company – is based on the internal ratings and internal losses estimated in the event of default (LGD), aligning the calculation method for this risk
cost component to all the network banks.
Additionally, during 2009 activities continued for revising, updating and adopting policies
and regulations for managing credit risk. The current policies are listed below, with a summary of the main contents:
Credit Policy, which outlines the strategy for developing the Group’s Corporate loan
portfolio. The policy also includes the regulation of the single name concentration
risk, so as to limit risks of instability which could derive from high loan
concentration rates on larger borrowers;
Institutional Counterpart and Country Risk Policy, which establishes rules and
principles for managing credit granted to resident and non-resident institutional
customers, as well as ordinary customers in countries at risk;
Mortgages Offered Through Intermediaries Policy, which governs the methods of using
external networks to offer mortgages to non-captive customers, in order to contain
potential credit risks, operational risks and reputational risks; Policy on transfer, renegotiation, substitution and early redemption of mortgages for
direct customers of network banks, which provides UBI Group’s guidelines on active
and passive transfer transactions, renegotiations, substitutions and early
redemptions (partial or total) of mortgages, with a view to guaranteeing (also by defining minimum service levels) the greatest reduction in timescales, adjustments
and related costs, as well as providing the Group with the necessary processes and
tools for risk protection (in terms of loans, operations and reputation);
Policy on transfer, renegotiation, substitution and early redemption of intermediated mortgages, in reference to intermediated mortgage transactions based on agreements
between the Group’s companies/banks and specific distribution networks;
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Risk-adjusted Pricing Policy, which defines the definition and implementation process
for Risk-adjusted Pricing logic for the various products that include the assumption of credit risk;
Securitisation risk policy, which defines the guidelines which the Group sets itself
with reference to the handling of the risk from securitisation activities;
Residual risk policy, which defines the strategic approaches relating to the handling of the “residual risk” defining the control process on the acquisition and use of credit
risk mitigations techniques so as to mitigate said risk.
2.3 Techniques for mitigating credit risk
The Bank uses risk mitigation techniques typical of banking activities, acquiring secured,
property and financial guarantees, as well as unsecured guarantees, from counterparties for
each type of loan.
In determining the total amount of the loans to be granted to the same customer and/or legal and economic entity, the specific criteria for weighting the various risk categories and
guarantees is taken into consideration. Specifically, precautionary “spreads” are applied to
the estimates of secured guarantees, differentiated by type of guarantee (mortgage,
monetary pledges, financial instrument pledges).
So as to ensure the existence of the general and specific requisites for the prudent
recognition of the secured guarantees, counted among the Credit Risk Mitigation (CRM)
techniques – on accordance with the Bank of Italy Circular No. 263 dated 27th December
2006 and subsequent amendments - the UBI Group has:
redefined credit processes related to collecting and managing guarantees. With particular attention to mortgage guarantees, the Network Banks are obliged to
include, in the specific IT application available to managers, all the data relating to the property necessary for rendering the guarantee eligible. Special attention was
paid to the requirement for the surveyor’s report and the timeliness in recovery of
notary information (essential data of the notarial act) so that the guarantee can be
finalised.
collected all the necessary information for the mortgages guarantees, to ensure the admissibility of the same in line with Basel 2 conditions in terms of specific
requirements. These activities were concluded in 2009.
On a general note, during 2009 organizational and IT solutions were consolidated which
permit the handling of the guarantee in line with the defined processes, during the
finalization, valorization and monitoring stages.
2.4 Impaired financial assets
The classification of the problem loan portfolio complies with the provisions of legal
regulations and may be summarised as follows:
• credit limits continuously exceeded by more than 180 days (for some types of
exposure, the Supervisory provisions replace this period with a deadline of 90 days),
• restructured loans,
• impaired,
• non-performing.
In addition to the aforesaid classes, there are also problem loans associated with “country
risk” for non-guaranteed exposures towards both institutional and ordinary customers from the so-called "risk countries" as defined by the Regulatory Authority.
More specifically, impaired loans are effectively monitored by distinguishing, for
management purposes, positions that are expected to be resolved in the short term (9
months which may be extended for a further 3 months on an exceptional basis) hence
defined as “operating impaired loans” and positions that the bank wishes to eliminate and recover out-of-court over a longer period of time. In addition, ad hoc verifications are carried
out on credit limits continuously exceeded by more than 180 days to establish, within a
164
maximum of 60 days, the possibility of upgrading them or assigning them a different
problem loan status.
Problem loans are managed based on the relative risk level: “credit limits continuously
exceeded for more than 180 days", "operating impaired loans" and "restructured loans" are
monitored by the organisational structures in charge of the Banks' problem loans, whilst “impaired” and “non performing” loans are the responsibility of the Parent Company’s Loan
Recovery Area.
The adequacy of adjustments is valued analytically, for each position, assuring adequate
hedging levels for expected losses.
The analysis of impaired positions is constantly performed by the individual operating units
in charge of monitoring risk and by the Parent Company. The key factor for upgrading impaired loans to “performing” status is the ability of the
counterparty to resolve its temporary financial difficulties; this applies in particular to
"operating impaired loans" and positions where the “credit limit is continuously exceeded for
more than 180 days”.
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Quantitative Information
A. CREDIT QUALITY
A.1 Impaired and performing exposures: amounts, adjustments, dynamics, economic and geographical
distribution
A.1.1 Distribution of financial assets by portfolio and according to credit quality (carrying values)
P o rta fo g li / qua lità S o ffe re nze Inc a g liEs po s iz io ni
ris truttura te
Es po s iz io ni
s c a duteA ltre a t t iv ità To ta le
1. Attività finanziare de tenute per la nego ziazio ne 483 1.390 307 65 112.012 114 .2 5 7
2. Attività finanziarie dis po nibili per la vendita - - - - - -
3. Attività finanziarie de tenute s ino a lla s cadenza - - - - - -
4. Crediti vers o banche 20 - - - 7.442.052 7 .4 4 2 .0 7 2
5. Crediti vers o c liente la 132.276 250.789 72.923 76.008 13.646.745 14 .17 8 .7 4 1
6. Attività finanziarie va luta te a l fa ir va lue - - - - - -
7. Attività finanziarie in co rs o di dis mis s io ne - - - - - -
8. Deriva ti di co pertura - - - - 75.128 7 5 .12 8
To ta le 3 1/ 12 / 2 0 0 9 13 2 .7 7 9 2 5 2 .17 9 7 3 .2 3 0 7 6 .0 7 3 2 1.2 7 5 .9 3 7 2 1.8 10 .19 8
To ta le 3 1/ 12 / 2 0 0 8 10 8 .8 6 4 8 9 .10 9 6 1.7 9 5 2 8 .5 9 2 19 .6 7 5 .17 1 19 .9 6 3 .5 3 1
166
A.1.2 Distribution of financial assets by portfolio and according to credit quality (gross and net values)
Es po s iz io ne
Lo rda
R e tt if ic he
s pe c if ic he
Es po s iz io ne
N e tta
Es po s iz io ne
Lo rda
R e tt if ic he di
po rta fo g lio
Es po s iz io ne
N e tta
1. Attività finanziare de tenute per la nego ziazio ne 2.245 - 2.245 X X 112.012 114 .2 5 7
2. Attività finanziarie dis po nibili per la vendita - - - - - - -
3. Attività finanziarie de tenute s ino a lla s cadenza - - - - - - -
4. Crediti vers o banche 22 (2) 20 7.442.052 - 7.442.052 7 .4 4 2 .0 7 2
5. Crediti vers o c liente la 707.754 (175.758) 531.996 13.697.109 (50.364) 13.646.745 14 .17 8 .7 4 1
6. Attività finanziarie va luta te a l fa ir va lue - - - X X - -
7. Attività finanziarie in co rs o di dis mis s io ne - - - - - - -
8. Deriva ti di co pertura - - - X X 75.128 7 5 .12 8
To ta le 3 1/ 12 / 2 0 0 9 7 10 .0 2 1 (17 5 .7 6 0 ) 5 3 4 .2 6 1 2 1.13 9 .16 1 (5 0 .3 6 4 ) 2 1.2 7 5 .9 3 7 2 1.8 10 .19 8
To ta le 3 1/ 12 / 2 0 0 8 4 6 2 .14 1 (16 9 .9 7 3 ) 2 9 2 .16 8 19 .7 19 .5 3 7 (4 8 .17 4 ) 19 .6 7 1.3 6 3 19 .9 6 3 .5 3 1
P o rta fo g li / Qua lità
A tt iv ità de te rio ra te In bo nis
To ta le
(Es po s iz io ne
ne t ta )
167
A.1.3 On- and off-balance sheet exposures to banks: gross and net amounts
Tipo lo g ie e s po s iz io ni/ v a lo riEs po s iz io ne
lo rda
R e tt if ic he di
v a lo re s pe c if ic he
R e tt if ic he di
v a lo re di
po rta fo g lio
Es po s iz io ne
N e tta
A . Es po s iz io ne pe r c a s s a
a ) So fferenze 22 (2) X 20
b) Incagli - - X -
c ) Es po s izio ne ris truttura te - - X -
d) Es po s izio ne s cadute - - X -
e ) Altre a ttività 7.447.008 X - 7.447.008
To ta le A 7 .4 4 7 .0 3 0 (2 ) - 7 .4 4 7 .0 2 8
B . Es po s iz io ne fuo ri b ila nc io
a ) Deterio ra te - - X -
b) Altre 115.708 X - 115.708
To ta le B 115 .7 0 8 - - 115 .7 0 8
To ta le A +B 7 .5 6 2 .7 3 8 (2 ) - 7 .5 6 2 .7 3 6
168
A.1.4 On-balance sheet exposures to banks: change in gross impaired exposures
C a us a li/ c a te g o rie S o ffe re nze Inc a g liEs po s iz io ni
ris truttura te
Es po s iz io ni
s c a dute
A . Es po s iz io ne lo rda iniz ia le 2 2 - - -
- di cui: es po s izio ni cedute no n cance lla te - - - -
B . Va ria z io ni in a um e nto - - - -
B .1 ingres s i da es po s izio ni in bo nis - - - -
B .2 tras ferimenti da a ltre ca tego rie di es po s izio ni de terio ra te - - - -
B .3 a ltre variazio ni in aumento - - - -
C . Va ria z io ni in dim inuzio ne - - - -
C .1 us c ite vers o es po s izio ni in bo nis - - - -
C .2 cancellazio ni - - - -
C .3 incas s i - - - -
C .4 rea lizzi per ces s io ni - - - -
C .5 tras ferimenti ad a ltre ca tego rie di es po s izio ni de terio ra te - - - -
C .6 a ltre variazio ni in diminuzio ne - - - -
D . Es po s iz io ne lo rda f ina le 2 2 - - -
- di cui: es po s zio ni cedute no n cance lla te - - - -
169
A.1.5 On-balance sheet exposures to banks: changes in total net impairment adjustments
C a us a li/ C a te g o rie S o ffe re nze Inc a g liEs po s iz io ni
R is truttura te
Es po s iz io ni
s c a dute
A . R e tt if ic he c o m ple s s iv e in iz ia li (2 ) - - -
- di cui: es po s izio ni cedute no n cance lla te - - - -
B . Va ria z io ni in a um e nto - - - -
B .1 re ttifiche di va lo re - - - -
B .2 tras ferimenti da a ltre ca tego rie di es po s izio ni de terio ra te - - - -
B .3 a ltre variazio ni in aumento - - - -
C .Va ria z io ni in dim inuzio ne - - - -
C .1 ripres e di va lo re da va lutazio ne - - - -
C .2 ripres e di va lo re da incas s o - - - -
C .3 cancellazio ni - - - -
C .4 tras ferimenti ad a ltre ca tego rie di es po s izio ni de terio ra te - - - -
C .5 a ltre variazio ni in diminuzio ne - - - -
D . R e tt if ic he c o m ple s s iv e f ina li (2 ) - - -
- di cui: es po s izio ni cedute no n cance lla te - - - -
170
A.1.6 On- and off-balance sheet exposures to customers: gross and net amounts
Tipo lo g ie e s po s iz io ni/ v a lo riEs po s iz io ne
lo rda
R e tt if ic he di v a lo re
s pe c if ic he
R e tt if ic he di v a lo re
di po rta fo g lio
Es po s iz io ne
ne t ta
A . Es po s iz io ne pe r c a s s a
a ) So fferenze 268.591 (136.315) X 132.276
b) Incagli 280.583 (29.794) X 250.789
c ) Es po s izio ne ris truttura te 81.134 (8.210) X 72.924
d) Es po s izio ne s cadute 77.447 (1.439) X 76.008
e ) Altre a ttività 13.724.316 X (50.364) 13.673.952
To ta le A 14 .4 3 2 .0 7 1 (17 5 .7 5 8 ) (5 0 .3 6 4 ) 14 .2 0 5 .9 4 9
B . Es po s iz io ne fuo ri b ila nc io
a ) Deterio ra te 30.986 (1.616) X 29.370
b) Altre 2.289.417 X (2.288) 2.287.129
To ta le B 2 .3 2 0 .4 0 3 (1.6 16 ) (2 .2 8 8 ) 2 .3 16 .4 9 9
To ta le A +B 16 .7 5 2 .4 7 4 (17 7 .3 7 4 ) (5 2 .6 5 2 ) 16 .5 2 2 .4 4 8
171
A.1.7 On-balance sheet exposures to customers: change in gross impaired exposures
C a us a li/ C a te g o rie S o ffe re nze Inc a g liEs po s iz io ni
ris truttura te
Es po s iz io ni
s c a dute
A . Es po s iz io ne lo rda iniz ia le 2 2 7 .0 4 9 112 .2 0 4 8 8 .4 6 1 3 0 .112
- di cui es po s izio ni cedute no n cancella te - 289 - 217
B . Va ria z io ni in a um e nto 12 3 .2 8 6 3 7 6 .5 6 3 17 7 .7 5 9 3 17 .0 7 9
B .1 ingres s i da es po s izio ni c reditizie in bo nis 34.911 209.307 20.407 305.884
B .2 tras ferimenti da a ltre ca tego rie di es po s izio ni de terio ra te 80.116 134.697 33.938 1.051
B .3 Altre variazio ni in aumento 8.259 32.559 123.414 10.144
C . Va ria z io ni in dim inuzio ne (8 1.7 4 4 ) (2 0 8 .18 4 ) (18 5 .0 8 6 ) (2 6 9 .7 4 4 )
C .1 us c ite vers o es po s izio ni c reditizie in bo nis - (49.400) (33.572) (121.628)
C .2 cancellazio ni (45.658) - (23.617) -
C .3 incas s i (35.570) (18.844) (102.085) (921)
C .4 rea lizzi per ces s io ni - - - -
C .5 tras ferimenti ad a ltre ca tego rie di es po s izio ni de terio ra te - (108.025) (713) (141.064)
C .6 a ltre variazio ni in diminuzio ne (516) (31.915) (25.099) (6.131)
D . Es po s iz io ne lo rda f ina le 2 6 8 .5 9 1 2 8 0 .5 8 3 8 1.13 4 7 7 .4 4 7
- di cui es po s izio ni cedute no n cancella te 5.022 27.068 4.177 8.767
172
A.1.8 On-balance sheet exposures to customers: changes in total net impairment adjustments
C a us a li/ C a te g o rie S o ffe re nze Inc a g liEs po s iz io ni
ris truttura te
Es po s iz io ni
s c a dute
A .R e tt if ic he c o m ple s s iv e in iz ia li (118 .2 2 0 ) (2 3 .5 8 6 ) (2 6 .5 7 3 ) (1.6 9 0 )
- di cui: es po s izio ni cedute no n cance lla te - - - -
B . Va ria z io ni in a um e nto (7 7 .8 3 2 ) (2 3 .7 3 3 ) (5 .7 5 0 ) (1.5 4 9 )
B.1 re ttifiche di va lo re (56.993) (21.023) (4.700) (1.179)
B.2 tras ferimenti da a ltre ca tego rie di es po s izio ne de terio ra te (13.597) (687) (188) (20)
B.3 a ltre variazio ni in aumento (7.242) (2.023) (862) (350)
C .Va ria z io ni in dim inuzio ne 5 9 .7 3 7 17 .5 2 5 2 4 .113 1.8 0 0
C.1 ripres e di va lo re da va lutazio ne 5.213 918 99 146
C.2 ripres e di va lo re da incas s o 8.866 3.697 183 188
C.3 cance llazio ni 45.658 - 23.617 -
C.4 tras ferimenti ad a ltre ca tego rie di es po s izio ne de terio ra te - 12.910 116 1.466
C.5 a ltre variazio ni in diminuzio ne - - 98 -
D . R e tt if ic he c o m ple s s iv e f ina li (13 6 .3 15 ) (2 9 .7 9 4 ) (8 .2 10 ) (1.4 3 9 )
- di cui: es po s izio ni cedute no n cance lla te 1.453 1.315 - 78
207
A.2 Classification of exposures on the basis of external and internal ratings
A.2.1 Distribution of on- and off-balance sheet exposures by external rating class
C la s s e 1 C la s s e 2 C la s s e 3 C la s s e 4 C la s s e 5 C la s s e 6
A . Es po s iz io ni c re dit iz ie pe r c a s s a 5 8 9 .7 4 3 3 .7 9 5 .7 10 1.19 6 .6 11 1.6 8 0 .7 6 5 5 2 9 .2 8 9 17 .8 4 8 13 .8 4 3 .0 0 9 2 1.6 5 2 .9 7 5
B . D e riv a t i 2 .5 2 9 10 2 .9 4 0 11.6 2 3 8 .5 2 1 4 .8 7 7 10 2 6 .7 2 1 15 7 .2 2 1
B.1 Deriva ti finanziari 2.529 102.940 11.623 8.521 4.877 10 26.721 15 7 .2 2 1
B.2 Deriva ti c reditizi - - - - - - - -
C . Ga ra nzie rila s c ia te 5 3 .2 17 3 5 1.18 0 5 4 .5 3 5 3 3 .2 11 3 4 .7 5 6 9 2 5 2 8 .9 9 6 1.0 5 5 .9 8 7
D . Im pe g ni a e ro g a re fo ndi 3 9 6 .7 5 5 4 3 .10 1 8 7 .0 4 7 2 6 1.4 8 2 7 6 .16 3 2 .6 8 3 3 4 0 .9 4 2 1.2 0 8 .17 3
To ta le 1.0 4 2 .2 4 4 4 .2 9 2 .9 3 1 1.3 4 9 .8 16 1.9 8 3 .9 7 9 6 4 5 .0 8 5 2 0 .6 3 3 14 .7 3 9 .6 6 8 2 4 .0 7 4 .3 5 6
Es po s iz io ni
C la s s i d i ra t ing e s te rni
S e nza ra t ing To ta le
C la s s e 1 C la s s e 2 C la s s e 3 C la s s e 4 C la s s e 5 C la s s e 6
di c ui m utui c a rto la rizza t i 108.738 352.782 204.522 372.192 98.035 2.560 524.901 1.6 6 3 .7 3 0
Es po s iz io ni To ta leC la s s e 9
C la s s i di ra t ing e s te rni
174
A.2.2 Distribution of on- and off-balance sheet exposures by internal rating class
R a ting 1 R a t ing 2 R a t ing 3 R a t ing 4 R a t ing 5 R a t ing 6 R a t ing 7 R a t ing 8 R a t ing 9 R a t ing 10 R a t ing 11 R a t ing 12 R a t ing 13 R a t ing 14
A . Es po s iz io ni pe r c a s s a 195.297 30.179 1.101.938 1.310.690 779.245 2.879.638 510.153 1.216.429 2.313.868 1.036.714 1.002.945 162.795 534.023 189.353 8.389.705 2 1.6 5 2 .9 7 5
B . D e riv a t i 1.540 32 6.291 5.718 2.013 10.691 1.060 15.342 10.243 3.328 4.574 347 4.626 3.233 88.184 15 7 .2 2 1
B .1 Deriva ti finanziari 1.540 32 6.291 5.718 2.013 10.691 1.060 15.342 10.243 3.328 4.574 347 4.626 3.233 88.184 157.221
B.2 Deriva ti c reditizi - - - - - - - - - - - - - - - -
C . Ga ra nzie rila s c ia te 40.871 224 198.295 76.222 198.176 137.577 14.048 100.529 75.729 15.023 48.911 1.207 11.234 5.877 132.065 1.0 5 5 .9 8 7
D . Im pe g ni a e ro g a re fo ndi 24.822 325 54.984 90.704 4.950 234.335 54.242 78.368 70.512 48.602 79.413 630 44.788 2.945 418.552 1.2 0 8 .17 3
To ta le 2 6 2 .5 3 1 3 0 .7 6 0 1.3 6 1.5 0 8 1.4 8 3 .3 3 3 9 8 4 .3 8 4 3 .2 6 2 .2 4 1 5 7 9 .5 0 3 1.4 10 .6 6 9 2 .4 7 0 .3 5 2 1.10 3 .6 6 8 1.13 5 .8 4 2 16 4 .9 7 9 5 9 4 .6 7 1 2 0 1.4 0 8 9 .0 2 8 .5 0 6 2 4 .0 7 4 .3 5 6
Es po s iz io ni S e nza ra t ing To ta le
C la s s i d i ra t ing inte rni
R a ting 1 R a ting 2 R a ting 3 R a ting 4 R a ting 5 R a ting 6 R a ting 7 R a ting 8 R a ting 9 R a ting 10 R a ting 11 R a ting 12 R a ting 13 R a ting 14
di c ui m utui c a rto la rizza t i 47.162 27 136.882 275.614 133.599 249.722 116.865 217.926 125.263 72.129 152.037 - 47.291 48.671 40.542 1.6 6 3 .7 3 0
To ta leEs po s iz io ni
C la s s i di ra t ing inte rni
S e nza ra t ing
The Master Scale classes are made up of PD (Probability Default) intervals which contain the mapping of the specific PDs corresponding to the individual classes of the various internal rating models. This representation ensures the comparability of the exposures relating to
counterparts valued using different internal rating models.
The six least risky master scale classes have a concentration of 47.5% of the total of the on-balance sheet exposures with internal rating, while
5.5% is the concentration of the 2 most risky classes. Class 6 is the highest in terms of exposure.
The class without rating contains impaired exposures.
175
A.3 Distribution of guaranteed/secured exposures by type of guarantee
A.3.1 Guaranteed/secured exposures to banks
Im m o bili Tito li A ltre g a ra nzie re a li C LNGo v e rni e ba nc he
c e ntra li
A ltri Ent i
pubblic iB a nc he
A ltri
s o g g e tt i
Go v e rni e ba nc he
c e ntra li
A ltri Ent i
pubblic iB a nc he
A ltri
s o g g e tt i
1. Es po s iz io ni c re dit iz ie pe r c a s s a g a ra nt ite
1.1. to ta lmente garantite 2.711 - 2.711 - - - - - - - - - - 2.711
- di cui de terio ra te - - - - - - - - - - - - - -
1.2. parzia lmente garantite 360.611 - 359.911 - - - - - - - - - - 359.911
- di cui de terio ra te - - - - - - - - - - - - - -
2 . Es po s iz io ni c re dit iz ie "fuo ri b ila nc io " g a ra nt ite
2.1. to ta lmente garantite - - - - - - - - - - - - - -
- di cui de terio ra te - - - - - - - - - - - - - -
2.2. parzia lmente garantite - - - - - - - - - - - - - -
- di cui de terio ra te - - - - - - - - - - - - - -
Va lo re
e s po s iz io ne ne t ta
A ltri de riv a t i
Totale (1)+(2)
Ga ra nzie re a li (1)
Ga ra nzie pe rs o na li (2 )
D e riv a t i s u c re dit i C re dit i d i f irm a
A.3.2 Guaranteed/secured exposures to customers
Im m o bili Tito li A ltre g a ra nzie re a li C LNGo v e rni e ba nc he
c e ntra li
A ltri Ent i
pubblic iB a nc he
A ltri
s o g g e tt i
Go v e rni e ba nc he
c e ntra li
A ltri Ent i
pubblic iB a nc he
A ltri
s o g g e tt i
1. Es po s iz io ni c re dit iz ie pe r c a s s a g a ra nt ite
1.1. to ta lmente garantite 9.092.751 6.921.956 243.886 12.578 - - - - - - 14.423 11.548 1.602.489 8 .8 0 6 .8 8 0
- di cui de terio ra te 290.418 180.926 6.862 56 - - - - - - - - 99.221 2 8 7 .0 6 5
1.2. parzia lmente garantite 548.371 6.871 60.148 3.712 - - - - - - 2.218 12.944 194.338 2 8 0 .2 3 1
- di cui de terio ra te 16.317 101 1.335 3 - - - - - - - 204 8.838 10 .4 8 1
2 . Es po s iz io ni c re dit iz ie "fuo ri b ila nc io " g a ra nt ite
2.1. to ta lmente garantite 782.765 413.026 36.271 5.821 - - - - - - 180 347 167.320 6 2 2 .9 6 5
- di cui de terio ra te 11.618 3.761 377 1 - - - - - - - - 3.909 8 .0 4 8
2.2. parzia lmente garantite 106.867 - 5.977 6.727 - - - - - - - 28.283 6.761 4 7 .7 4 8
- di cui de terio ra te 822 - 520 14 - - - - - - - - 74 6 0 8
To ta le (1)+(2 )
D e riv a t i s u c re dit i C re dit i d i f irm a
A ltri de riv a t i
Va lo re
e s po s iz io ne ne t ta
Ga ra nzie re a li (1)
Ga ra nzie pe rs o na li (2 )
176
B. DISTRIBUTION AND CONCENTRATION OF CREDIT EXPOSURES
B.1 Distribution by business sector of on- and off-balance sheet exposures to customers (book value)
177
B.2 Geographical distribution of on- and off-balance sheet exposures to customers (book value)
Es po s iz io ne
ne t ta
R e tt if ic he v a lo re
c o m ple s s iv e
Es po s iz io ne
ne t ta
R e tt if ic he v a lo re
c o m ple s s iv e
Es po s iz io ne
ne t ta
R e tt if ic he v a lo re
c o m ple s s iv e
Es po s iz io ne
ne t ta
R e tt if ic he v a lo re
c o m ple s s iv eEs po s iz io ne ne t ta
R e tt if ic he v a lo re
c o m ple s s iv e
A . Es po s iz io ni pe r c a s s a
A.1 So fferenze 132.185 (136.196) 91 (111) - (7) - - - -
A.2 Incagli 250.665 (29.731) 121 (2) 3 (61) - - - -
A.3 Es po s izio ni ris truttura te 72.923 (8.210) - - - - - - - -
A.4 Es po s izio ni s cadute 76.004 (1.439) 4 (1) - - - - - -
A.5 Altre es po s izio ni 13.606.822 (20.011) 61.447 (318) 5.019 (20) 378 (1) 285 (13)
TOTA LE A 14 .13 8 .5 9 9 (19 5 .5 8 7 ) 6 1.6 6 3 (4 3 2 ) 5 .0 2 2 (8 8 ) 3 7 8 (1) 2 8 5 (13 )
B . Es po s iz io ni "fuo ri b ila nc io "
B.1 So fferenze 1.166 (31) - - - - - - - -
B.2 Incagli 16.092 (75) - - - - - - - -
B.3 Altre a ttività de terio ra te 12.112 (1.510) - - - - - - - -
B.4 a ltre es po s izio ni 2.283.178 (2.286) 3.595 - - - - - 356 (2)
TOTA LE B 2 .3 12 .5 4 8 (3 .9 0 2 ) 3 .5 9 5 - - - - - 3 5 6 (2 )
To ta le (A +B ) 3 1/ 12 / 2 0 0 9 16 .4 5 1.14 7 (19 9 .4 8 9 ) 6 5 .2 5 8 (4 3 2 ) 5 .0 2 2 (8 8 ) 3 7 8 (1) 6 4 1 (15 )
To ta le (A +B ) 3 1/ 12 / 2 0 0 8 16 .9 7 3 .8 2 6 (2 2 0 .3 3 5 ) 12 5 .4 7 7 (4 16 ) 3 .3 6 5 (3 6 ) - - - -
R ES TO D EL M ON D O
Es po s iz io ni/ A re e g e o g ra f ic he
ITA LIA A LTR I P A ES I EUR OP EI A M ER IC A A S IA
178
B.3 Geographical distribution of on- and off-balance sheet exposures to banks (book values)
Es po s iz io ne
ne t ta
R e tt if ic he v a lo re
c o m ple s s iv e
Es po s iz io ne
ne t ta
R e tt if ic he v a lo re
c o m ple s s iv e
Es po s iz io ne
ne t ta
R e tt if ic he v a lo re
c o m ple s s iv e
Es po s iz io ne
ne t ta
R e tt if ic he v a lo re
c o m ple s s iv e
Es po s iz io ne
ne t ta
R e tt if ic he v a lo re
c o m ple s s iv e
A . Es po s iz io ni pe r c a s s a
A.1 So fferenze 20 (2) - - - - - - - -
A.2 Incagli - - - - - - - - - -
A.3 Es po s izio ni ris truttura te - - - - - - - - - -
A.4 Es po s izio ni s cadute - - - - - - - - - -
A.5 Altre es po s izio ni 7.290.324 - 155.888 - 342 - 439 - 14 -
TOTA LE A 7 .2 9 0 .3 4 4 (2 ) 15 5 .8 8 8 - 3 4 2 - 4 3 9 - 14 -
B . Es po s iz io ni "fuo ri b ila nc io "
B.1 So fferenze - - - - - - - - - -
B.2 Incagli - - - - - - - - - -
B.3 Altre a ttività de terio ra te - - - - - - - - - -
B.4 a ltre es po s izio ni 102.017 - 8.582 - 215 - 1.568 - 3.326 -
TOTA LE B 10 2 .0 17 - 8 .5 8 2 - 2 15 - 1.5 6 8 - 3 .3 2 6 -
To ta le (A +B ) 3 1/ 12 / 2 0 0 9 7 .3 9 2 .3 6 1 (2 ) 16 4 .4 7 0 - 5 5 7 - 2 .0 0 7 - 3 .3 4 0 -
To ta le (A +B ) 3 1/ 12 / 2 0 0 8 5 .4 8 9 .3 2 7 (10 ) 7 7 .6 14 - 3 .18 0 - 4 .8 5 8 - 5 0 1 -
R ES TO D EL M ON D O
Es po s iz io ni/ A re e g e o g ra f ic he
ITA LIA A LTR I P A ES I EUR OP EI A M ER IC A A S IA
179
B.4 Large exposures
3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
Ammo ntare 978.326 735.623
Numero 4 4
180
C. SECURITISATION AND ASSET DISPOSAL TRANSACTIONS
C.1 Securitisation transactions Qualitative information
Objectives, strategies and processes underpinning securitisation transactions
During the first half of 2009, a securitisation transaction was carried out by means of the transfer of loans granted to small and medium sized companies, classified as performing, to
a special purpose vehicle, UBI Finance 2 S.r.l..
The transaction was completed in two stages:
- on 13th January 2009, but effective as of 1st January 2009, the deed of transfer was
signed between Banco di Brescia S.p.A. and the special purpose vehicle UBI Finance 2 S.r.l. for the transfer of the loans portfolio, for a value of around 2.1 billion euro,
- on 27th February 2009, UBI Finance 2 issued two classes of securitised securities,
which were fully subscribed by the Originator Banco di Brescia.
Due to the complete repurchase by the Originator of all the liabilities issued by the vehicle company, this transaction is not reported in this section of the Notes. So as to provide
complete information, a series of indications are however presented below relating to the
issue, the portfolio and the role played by Banco di Brescia in the transaction.
These are the primary characteristics of UBI Finance 2 securities:
Class A (Senior notes): 1,559,500,000.00 nominal value at a floating rate, with the highest Fitch rating; these securities were made available to the Parent Company
UBI Banca, through reverse purchase agreement transactions to use as collateral for
repo transactions with the ECB or as guarantees for infraday transactions with the
Bank of Italy;
Class B (Junior notes): 519,850,000.00 nominal value, unrated and with a return equal to the transaction’s additional return, they allow the Bank to benefit from the
excess spread of the underlying portfolios.
The securitised portfolio is entirely represented by assets transferred but not derecognised
from the balance sheet assets; the related book value as at 31st December 2009, as indicated at the bottom of the related tables in parts B and E of the Notes, amounts to
1,627.9 million euro (unit amount: 1,627,909,224)
As part of the securitisation transaction, the Parent Company UBI Banca undertook the role
of Italian Account Bank, Calculation Agent and Servicer (for the monitoring, supervisory notification and reporting activities), while Banco di Brescia was delegated, in its capacity as
sub-servicer, the collection activities and the handling of the securitised transactions (with
the exclusion of those which are now classified as non performing, which have been taken
over by the Parent Company’s Loan Division). The Bank received a fee for these activities
which, for 2009, totalled 791 thousand euro, against collections of around 490 million euro.
C.1.6 Interests in Special Purpose Vehicles
As at 31st December 2009, the Special Purpose Vehicle UBI Finance 2 srl was held 10% by
UBI Banca and 90% by Stichting Brixia (a Netherlands-based company).
C.2 Disposal transactions
181
No disposal transactions took place.
C.3 Covered bond transactions
In September 2009, the Parent Company UBI Banca achieved its first public issue, for 1
billion euro, of Covered Bonds as part of the 10 billion euro maximum plan, launched in
July 2008 with the first transfers of the mortgage loans carried out by Banco di Brescia and the European Regional Bank.
At the end of 2009, Banca Popolare di Bergamo also joined the plan, while Banco di Brescia,
together with the European Regional Bank, transferred the last portion of its loan portfolio
to service the second public issue, again for 1 billion euro, achieved in December 2009. The features of the two issues are presented below:
Name Issue date Maturity date Nominal value Coupon
UBI BANCA 3.625% CB due 23 Sept. 2016
23rd Sept. 2009
23rd Sept. 2016
1,000,000,000.00 36,250,000.00
UBI BANCA 4.000% CB due 16 Dec. 2019
16th Dec. 2009
16th Dec. 2019
1,000,000,000.00 40,000,000.00
Both the issues received a rating of AAA/Aaa from Fitch and Moody’s.
The plan’s structure is as follows: a special purpose vehicle was set up, UBI Finance s.r.l.,
which acting as guarantor of the issues made by UBI Banca, took over a portfolio of
residential mortgage loans transferred by the Group’s network banks taking part in the plan
both as Originator Banks and Financing Banks. The role of Master Servicer, Calculation Agent and Cash Manager is performed by the Parent
Company, while that of Paying Agent is performed by the Bank of New York; UBI Banca then
delegated the Originator Banks, acting as Sub-servicers, with the servicing activities
associated with the handling of the collections and relations with the customers relating to
the portfolio transferred by each Originator.
At present, as indicated above, Banco di Brescia, the Regional European Bank and Banca
Popolare di Bergamo take part in the plan and also perform the role of swap counterparts in
the balance guarantee swaps entered into with the special purpose vehicle so as to
normalize the cash flows generated by the loan portfolio.
The portfolio guaranteeing the issues, which in the accounts has remained recorded under
the assets of each transferring bank, amounted as at 31st December 2009 to over 3.6 billion
euro in residual capital debt, of which 1.6 billion originated by Banco di Brescia.
During 2009, the portfolio pertaining to Banco di Brescia generated total collections for
around 184 million euro.
With regard to the subservicing activities, each bank receives a fee, in keeping with the
portfolio handled and the collections; this fee amounted to around 500 thousand euro in
2009 for Banco di Brescia.
182
D. MODELS FOR CREDIT RISK MEASUREMENT
As part of measuring credit risk, the UBI Group has developed a Portfolio Credit Risk model
using Algorithmics' PCRE calculation engine: it considers the total risk of a loan portfolio by
modelling and capturing the component deriving from the default correlation of the counterparties, calculating credit losses and risk capital at portfolio level. The model
included - among the various inputs - the PD and LGD variables used for supervisory
purposes.
Section 2 Market risk:
2.1 Interest rate and price risk – Supervisory trading portfolio
Qualitative information
A. General aspects
In preparing this section, only financial instruments included in the “supervisory trading
portfolio” are included, as defined by the regulations regarding supervisory notifications on
market risks. Therefore, any transactions allocated to the trading portfolio in the financial
statements, but not falling under the definition of “supervisory”, are excluded. These
transactions are included in the disclosure related to the “banking book”.
B. Processes for management and methods of measurement of interest rate and price
risk
Refer to the following section A “General aspects, procedures for management and methods
of measurement of interest rate risk”.
183
Quantitative Information
1.1. Supervisory trading portfolio: distribution by residual life (date of revaluation) of on-balance sheet financial assets and liabilities
and financial derivatives – in euro
Tipologia/Durata residua A vista Fino a 3 mesiDa oltre 3 mesi
fino a 6 mesi
Da oltre 6 mesi
fino a 1 anno
Da oltre 1 anno
fino a 5 anni
Da oltre 5 anni
fino a 10 anniOltre 10 anni
Durata
indeterminata
1. Attività per cassa - 4.957 27.436 - 2 - 89 -
1.1 Titoli di debito - 4.957 27.436 - 2 - 89 -
- con opzione rimborso anticipato - - - - - - - -
- altri - 4.957 27.436 - 2 - 89 -
1.2 Altre attività - - - - - - - -
2. Passività per cassa - - - - - - - -
2.1 P.C.T. passivi - - - - - - - -
2.2 Altre passività - - - - - - - -
3. Derivati finanziari - (1.784.536) 5.687 48.757 393.976 420.925 516.180 398.980
3.1 Con titolo sottostante - - - - - 1 - -
- Opzioni - - - - - 1 - -
- Posizioni lunghe - - - - - 1 - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
3.2 Senza titolo sottostante - (1.784.536) 5.687 48.757 393.976 420.924 516.180 398.980
- Opzioni - - - - - - - -
- Posizioni lunghe - 604.355 558.539 185.732 600.241 103.129 14.485 -
- Posizioni corte - 604.355 558.539 185.732 600.241 103.129 14.485 -
- Altri derivati - (1.784.536) 5.687 48.757 393.976 420.924 516.180 398.980
- Posizioni lunghe - 4.497.595 1.179.543 149.088 909.272 564.576 522.278 398.980
- Posizioni corte - 6.282.131 1.173.856 100.331 515.296 143.652 6.098 -
184
1.2. Supervisory trading portfolio: distribution by residual life (date of revaluation) of on-balance sheet financial assets and liabilities and financial derivatives – in USD
Tipologia/Durata residua A vista Fino a 3 mesiDa oltre 3 mesi
fino a 6 mesi
Da oltre 6 mesi
fino a 1 anno
Da oltre 1 anno
fino a 5 anni
Da oltre 5 anni
fino a 10 anniOltre 10 anni
Durata
indeterminata
1. Attività per cassa - - - - - - - -
1.1 Titoli di debito - - - - - - - -
- con opzione rimborso anticipato - - - - - - - -
- altri - - - - - - - -
1.2 Altre attività - - - - - - - -
2. Passività per cassa - - - - - - - -
2.1 P.C.T. passivi - - - - - - - -
2.2 Altre passività - - - - - - - -
3. Derivati finanziari - - - - - - - -
3.1 Con titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
3.2 Senza titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - 53.957 194.473 99.316 145.071 - - -
- Posizioni corte - 53.957 194.473 99.316 145.071 - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - 28.621 146.628 2.980 140.219 - - -
- Posizioni corte - 28.621 146.628 2.980 140.219 - - -
185
1.3. Supervisory trading portfolio: distribution by residual life (date of revaluation) of on-balance sheet financial assets and liabilities
and financial derivatives – in CHF
Tipologia/Durata residua A vista Fino a 3 mesiDa oltre 3 mesi
fino a 6 mesi
Da oltre 6 mesi
fino a 1 anno
Da oltre 1 anno
fino a 5 anni
Da oltre 5 anni
fino a 10 anniOltre 10 anni
Durata
indeterminata
1. Attività per cassa - - - - - - - -
1.1 Titoli di debito - - - - - - - -
- con opzione rimborso anticipato - - - - - - - -
- altri - - - - - - - -
1.2 Altre attività - - - - - - - -
2. Passività per cassa - - - - - - - -
2.1 P.C.T. passivi - - - - - - - -
2.2 Altre passività - - - - - - - -
3. Derivati finanziari - - - - - - - -
3.1 Con titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
3.2 Senza titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - 138 - - - - - -
- Posizioni corte - 138 - - - - - -
186
1.4. Supervisory trading portfolio: distribution by residual life (date of revaluation) of on-balance sheet financial assets and liabilities
and financial derivatives – in GBP
Tipologia/Durata residua A vista Fino a 3 mesiDa oltre 3 mesi
fino a 6 mesi
Da oltre 6 mesi
fino a 1 anno
Da oltre 1 anno
fino a 5 anni
Da oltre 5 anni
fino a 10 anniOltre 10 anni
Durata
indeterminata
1. Attività per cassa - - - - - - - -
1.1 Titoli di debito - - - - - - - -
- con opzione rimborso anticipato - - - - - - - -
- altri - - - - - - - -
1.2 Altre attività - - - - - - - -
2. Passività per cassa - - - - - - - -
2.1 P.C.T. passivi - - - - - - - -
2.2 Altre passività - - - - - - - -
3. Derivati finanziari - - - - - - - -
3.1 Con titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
3.2 Senza titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - 3.153 1.047 - - - - -
- Posizioni corte - 3.153 1.047 - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - 4.092 207 563 - - - -
- Posizioni corte - 4.092 207 563 - - - -
187
1.5. Supervisory trading portfolio: distribution by residual life (date of revaluation) of on-balance sheet financial assets and liabilities
and financial derivatives – in JPY
Tipologia/Durata residua A vista Fino a 3 mesiDa oltre 3 mesi
fino a 6 mesi
Da oltre 6 mesi
fino a 1 anno
Da oltre 1 anno
fino a 5 anni
Da oltre 5 anni
fino a 10 anniOltre 10 anni
Durata
indeterminata
1. Attività per cassa - - - - - - - -
1.1 Titoli di debito - - - - - - - -
- con opzione rimborso anticipato - - - - - - - -
- altri - - - - - - - -
1.2 Altre attività - - - - - - - -
2. Passività per cassa - - - - - - - -
2.1 P.C.T. passivi - - - - - - - -
2.2 Altre passività - - - - - - - -
3. Derivati finanziari - - - - - - - -
3.1 Con titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
3.2 Senza titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - 1.158 75 - - - - -
- Posizioni corte - 1.158 75 - - - - -
188
1.6. Supervisory trading portfolio: distribution by residual life (date of revaluation) of on-balance sheet financial assets and liabilities
and financial derivatives – in NOK
Tipologia/Durata residua A vista Fino a 3 mesiDa oltre 3 mesi
fino a 6 mesi
Da oltre 6 mesi
fino a 1 anno
Da oltre 1 anno
fino a 5 anni
Da oltre 5 anni
fino a 10 anniOltre 10 anni
Durata
indeterminata
1. Attività per cassa - - - - - - - -
1.1 Titoli di debito - - - - - - - -
- con opzione rimborso anticipato - - - - - - - -
- altri - - - - - - - -
1.2 Altre attività - - - - - - - -
2. Passività per cassa - - - - - - - -
2.1 P.C.T. passivi - - - - - - - -
2.2 Altre passività - - - - - - - -
3. Derivati finanziari - - - - - - - -
3.1 Con titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
3.2 Senza titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - 1.928 - - 1.928 - - -
- Posizioni corte - 1.928 - - 1.928 - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
189
1.7. Supervisory trading portfolio: distribution by residual life (date of revaluation) of on-balance sheet financial assets and liabilities
and financial derivatives – in PLN
Tipologia/Durata residua A vista Fino a 3 mesiDa oltre 3 mesi
fino a 6 mesi
Da oltre 6 mesi
fino a 1 anno
Da oltre 1 anno
fino a 5 anni
Da oltre 5 anni
fino a 10 anniOltre 10 anni
Durata
indeterminata
1. Attività per cassa - - - - - - - -
1.1 Titoli di debito - - - - - - - -
- con opzione rimborso anticipato - - - - - - - -
- altri - - - - - - - -
1.2 Altre attività - - - - - - - -
2. Passività per cassa - - - - - - - -
2.1 P.C.T. passivi - - - - - - - -
2.2 Altre passività - - - - - - - -
3. Derivati finanziari - 35 - - - - - -
3.1 Con titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
3.2 Senza titolo sottostante - 35 - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - 35 - - - - - -
- Posizioni lunghe - 35 - - - - - -
- Posizioni corte - - - - - - - -
190
1.8. Supervisory trading portfolio: distribution by residual life (date of revaluation) of on-balance sheet financial assets and liabilities
and financial derivatives – in OTHER CURRENCIES
Tipologia/Durata residua A vista Fino a 3 mesiDa oltre 3 mesi
fino a 6 mesi
Da oltre 6 mesi
fino a 1 anno
Da oltre 1 anno
fino a 5 anni
Da oltre 5 anni
fino a 10 anniOltre 10 anni
Durata
indeterminata
1. Attività per cassa - - - - - - - -
1.1 Titoli di debito - - - - - - - -
- con opzione rimborso anticipato - - - - - - - -
- altri - - - - - - - -
1.2 Altre attività - - - - - - - -
2. Passività per cassa - - - - - - - -
2.1 P.C.T. passivi - - - - - - - -
2.2 Altre passività - - - - - - - -
3. Derivati finanziari - - - - - - - -
3.1 Con titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
3.2 Senza titolo sottostante - - - - - - - -
- Opzioni - - - - - - - -
- Posizioni lunghe - - 1.074 - - - - -
- Posizioni corte - - 1.074 - - - - -
- Altri derivati - - - - - - - -
- Posizioni lunghe - - - - - - - -
- Posizioni corte - - - - - - - -
191
3. Supervisory trading portfolio: internal models and other sensitivity analysis
methodologies
Banco di Brescia’s supervisory trading portfolio principally consists of Government
securities (CCT). At the end of December, the total VaR of the trading portfolio was around
6,969 euro with a NAV of around 26.58 million euro (average VaR in 2009 was 47,101 euro).
192
2.2 Interest rate and price risk – Banking book
The banking book consists of all asset and liability financial instruments not included in the
trading portfolio described in section 2.1.
Qualitative information
A. General aspects, procedures for management and methods of measurement of
interest rate risk
The interest rate risk is defined as the current or forecast risk of a change in interest rate
margins and the economic value of the Bank, following unexpected changes in interest rates that impact the bank portfolio;
The measurement, monitoring and reporting of exposure to the interest rate risk is carried
out by the Parent Company’s Risk Management division, which on a monthly basis takes
steps to:
• analyse the sensitivity of the economic value (fair value risk) so as to measure the change in the value of the capital in reference rate curve parallel shock scenarios;
• to carry out, using static gap analysis (in other words assuming that the positions
are constant during the year), sensitivity analysis on the interest margin (cash flow risk), which focuses on the income changes over a period of twelve months valued in
reference rate curve parallel shock scenarios.
The economic value sensitivity analysis includes an estimate of the impacts deriving from
the phenomenon of early repayment of mortgages and loans, irrespective of the presence of
early repayment options established contractually. This estimate is supported by statistical and qualitative analysis carried out during 2008 on the main UBI Group banks.
The estimate of margin change includes both an estimate of the re-investment/refinancing
effects of the flows maturing and the effect linked to the elasticity and delayed adjustment of
the on-demand items. The elasticity factors and the delay in the adjustment of the
contractual rates are differentiated by commercial customer classification segment.
B. Fair value hedging
During 2009, Banco di Brescia performed specific and generic hedges with derivative financial instruments in order to reduce exposure to adverse changes in fair value (fair value
hedge) due to interest rate risk. In particular, fixed and mixed-rate loans with a duration of
more than one year (generic hedge) totalling around 448 million euro in nominal value, and
bonds issued (specific hedge) at a fixed rate and with a zero coupon totalling around 886
million euro in nominal value, were hedged. The derivative contracts used were interest rate
swaps. The Parent Company's Financial Risk Service performed effectiveness tests on the hedges.
The effectiveness tests were performed using prospective tests at the beginning of the hedge
followed by retrospective tests performed monthly, according to the approaches envisaged
by the international accounting standards.
C. Cash flow hedging
In Banco di Brescia’s financial statements there are no cash flow hedges.
193
Quantitative Information
1.1 Banking book: distribution by residual life (date of revaluation) of the financial assets and liabilities – currency: euro
Tipo lo g ia / D ura ta re s idua A v is ta F ino a 3 m e s iD a o ltre 3 m e s i
f ino a 6 m e s i
D a o ltre 6 m e s i
f ino a 1 a nno
D a o ltre 1 a nno
f ino a 5 a nni
D a o ltre 5 a nni
f ino a 10 a nniOltre 10 a nni
D ura ta
inde te rm ina ta
1. A tt iv ità pe r c a s s a - 6 .7 4 7 .12 9 9 .2 7 9 .8 0 1 3 .7 8 5 .8 0 3 6 1.3 8 9 2 6 6 .0 2 5 2 17 .2 15 9 18 .7 2 8
1.1 Tito li di debito - - - - 8.456 - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - 8.456 - - -
1.2 F inanziamenti a banche - 1.286.782 3.748.668 2.265.489 369 - - -
1.3 F inanziamenti a c liente la - 5.460.347 5.531.133 1.520.314 52.564 266.025 217.215 918.728
- c /c - 2.289.237 - - - - - -
- a ltri finanziamenti - 3.171.110 5.531.133 1.520.314 52.564 266.025 217.215 918.728
- co n o pzio ne di rimbo rs o antic ipa to - 647.316 5.499.909 1.505.707 18.827 243.948 195.900 918.728
- a ltri - 2.523.794 31.224 14.607 33.737 22.077 21.315 -
2 . P a s s iv ità pe r c a s s a - 13 .7 4 0 .2 8 2 4 .2 4 3 .7 7 2 1.0 0 4 .9 7 6 3 8 5 .6 7 7 8 7 5 .0 4 4 - 2 .0 9 2
2.1 Debiti vers o c liente la - 8.204.909 432.643 95.716 10 127 - -
- c /c - 7.871.228 - - - - - -
- a ltri debiti - 333.681 432.643 95.716 10 127 - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - 333.681 432.643 95.716 10 127 - -
2.2 Debiti vers o banche - 239.705 1.026.669 - 27.900 - - -
- c /c - 174.017 - - - - - -
- a ltri debiti - 65.688 1.026.669 - 27.900 - - -
2.3 Tito li di debito - 5.295.668 2.784.460 909.260 357.767 874.917 - 2.092
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - 5.295.668 2.784.460 909.260 357.767 874.917 - 2.092
2.4 Altre pas s ività - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
3 . D e riv a t i f ina nzia ri - 112 .3 2 5 (7 3 2 .6 0 6 ) 12 4 .2 9 1 1.17 3 .4 4 3 (2 4 9 .3 8 8 ) (4 2 5 .9 2 6 ) -
3.1 Co n tito lo s o tto s tante - - - - 2.140 - - -
- Opzio ni - - - - 2.140 - - -
+ P o s izio ni lunghe - - - - 2.140 - - -
+ P o s izio ni co rte - - - - - - - -
- Altri deriva ti - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
3.2 Senza tito lo s o tto s tante - 112.325 (732.606) 124.291 1.171.303 (249.388) (425.926) -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - 3.661 - 3.661 - - - -
+ P o s izio ni co rte - 3.661 - 3.661 - - - -
- Altri deriva ti - 112.325 (732.606) 124.291 1.171.303 (249.388) (425.926) -
+ P o s izio ni lunghe - 1.556.497 216.774 372.023 1.623.746 - 2.000 -
+ P o s izio ni co rte - 1.444.172 949.380 247.732 452.443 249.388 427.926 -
194
1.2 Banking book: distribution by residual life (date of revaluation) of the financial assets and liabilities – currency: USD
Tipo lo g ia / D ura ta re s idua A v is ta F ino a 3 m e s iD a o ltre 3 m e s i
f ino a 6 m e s i
D a o ltre 6 m e s i
f ino a 1 a nno
D a o ltre 1 a nno
f ino a 5 a nni
D a o ltre 5 a nni
f ino a 10 a nniOltre 10 a nni
D ura ta
inde te rm ina ta
1. A tt iv ità pe r c a s s a 7 1.9 4 8 10 4 .9 3 8 4 5 4 3 9 12 9 - - -
1.1 Tito li di debito - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
1.2 F inanziamenti a banche 60.505 74.484 124 - - - - -
1.3 F inanziamenti a c liente la 11.443 30.454 330 39 129 - - -
- c /c 546 - - - - - - -
- a ltri finanziamenti 10.897 30.454 330 39 129 - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri 10.897 30.454 330 39 129 - - -
2 . P a s s iv ità pe r c a s s a 13 8 .0 12 4 1.4 3 8 9 0 1 - - - - -
2.1 Debiti vers o c liente la 63.178 274 8 - - - - -
- c /c 63.176 274 8 - - - - -
- a ltri debiti 2 - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri 2 - - - - - - -
2.2 Debiti vers o banche 548 41.164 893 - - - - -
- c /c 1 - - - - - - -
- a ltri debiti 547 41.164 893 - - - - -
2.3 Tito li di debito 74.286 - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri 74.286 - - - - - - -
2.4 Altre pas s ività - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
3 . D e riv a t i f ina nzia ri - - - - - - - -
3.1 Co n tito lo s o tto s tante - - - - - - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
3.2 Senza tito lo s o tto s tante - - - - - - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
195
1.3 Banking book: distribution by residual life (date of revaluation) of the financial assets and liabilities – currency: CHF
Tipo lo g ia / D ura ta re s idua A v is ta F ino a 3 m e s iD a o ltre 3 m e s i
f ino a 6 m e s i
D a o ltre 6 m e s i
f ino a 1 a nno
D a o ltre 1 a nno
f ino a 5 a nni
D a o ltre 5 a nni
f ino a 10 a nniOltre 10 a nni
D ura ta
inde te rm ina ta
1. A tt iv ità pe r c a s s a 1.4 0 4 3 .0 4 0 10 5 16 .4 8 5 - - - -
1.1 Tito li di debito - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
1.2 F inanziamenti a banche 99 - - - - - - -
1.3 F inanziamenti a c liente la 1.305 3.040 105 16.485 - - - -
- c /c - - - - - - - -
- a ltri finanziamenti 1.305 3.040 105 16.485 - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri 1.305 3.040 105 16.485 - - - -
2 . P a s s iv ità pe r c a s s a 1.2 8 9 2 0 .0 5 3 - - - - - -
2.1 Debiti vers o c liente la 1.121 - - - - - - -
- c /c 1.059 - - - - - - -
- a ltri debiti 62 - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri 62 - - - - - - -
2.2 Debiti vers o banche 168 20.053 - - - - - -
- c /c 168 - - - - - - -
- a ltri debiti - 20.053 - - - - - -
2.3 Tito li di debito - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
2.4 Altre pas s ività - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
3 . D e riv a t i f ina nzia ri - - - - - - - -
3.1 Co n tito lo s o tto s tante - - - - - - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
3.2 Senza tito lo s o tto s tante - - - - - - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
196
1.4 Banking book: distribution by residual life (date of revaluation) of the financial assets and liabilities – currency: GBP
Tipo lo g ia / D ura ta re s idua A v is ta F ino a 3 m e s iD a o ltre 3 m e s i
f ino a 6 m e s i
D a o ltre 6 m e s i
f ino a 1 a nno
D a o ltre 1 a nno
f ino a 5 a nni
D a o ltre 5 a nni
f ino a 10 a nniOltre 10 a nni
D ura ta
inde te rm ina ta
1. A tt iv ità pe r c a s s a 5 .6 6 7 5 .0 2 3 8 8 - - - - -
1.1 Tito li di debito - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
1.2 F inanziamenti a banche 4.251 - - - - - - -
1.3 F inanziamenti a c liente la 1.416 5.023 88 - - - - -
- c /c 466 - - - - - - -
- a ltri finanziamenti 950 5.023 88 - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri 950 5.023 88 - - - - -
2 . P a s s iv ità pe r c a s s a 5 .0 0 3 5 .0 6 7 - - - - - -
2.1 Debiti vers o c liente la 5.003 - - - - - - -
- c /c 5.003 - - - - - - -
- a ltri debiti - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
2.2 Debiti vers o banche - 5.067 - - - - - -
- c /c - - - - - - - -
- a ltri debiti - 5.067 - - - - - -
2.3 Tito li di debito - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
2.4 Altre pas s ività - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
3 . D e riv a t i f ina nzia ri - - - - - - - -
3.1 Co n tito lo s o tto s tante - - - - - - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
3.2 Senza tito lo s o tto s tante - - - - - - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
197
1.5 Banking book: distribution by residual life (date of revaluation) of the financial assets and liabilities – currency: NOK
Tipo lo g ia / D ura ta re s idua A v is ta F ino a 3 m e s iD a o ltre 3 m e s i
f ino a 6 m e s i
D a o ltre 6 m e s i
f ino a 1 a nno
D a o ltre 1 a nno
f ino a 5 a nni
D a o ltre 5 a nni
f ino a 10 a nniOltre 10 a nni
D ura ta
inde te rm ina ta
1. A tt iv ità pe r c a s s a 2 3 6 1.9 4 1 - - - - - -
1.1 Tito li di debito - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
1.2 F inanziamenti a banche 236 - - - - - - -
1.3 F inanziamenti a c liente la - 1.941 - - - - - -
- c /c - - - - - - - -
- a ltri finanziamenti - 1.941 - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - 1.941 - - - - - -
2 . P a s s iv ità pe r c a s s a 16 3 6 4 - - 1.8 6 0 - - -
2.1 Debiti vers o c liente la 15 - - - - - - -
- c /c 15 - - - - - - -
- a ltri debiti - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
2.2 Debiti vers o banche 1 364 - - - - - -
- c /c 1 - - - - - - -
- a ltri debiti - 364 - - - - - -
2.3 Tito li di debito - - - - 1.860 - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - 1.860 - - -
2.4 Altre pas s ività - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
3 . D e riv a t i f ina nzia ri - (1.8 18 ) - - 1.8 18 - - -
3.1 Co n tito lo s o tto s tante - - - - - - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
3.2 Senza tito lo s o tto s tante - (1.818) - - 1.818 - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - (1.818) - - 1.818 - - -
+ P o s izio ni lunghe - - - - 1.818 - - -
+ P o s izio ni co rte - 1.818 - - - - - -
198
1.6 Banking book: distribution by residual life (date of revaluation) of the financial assets and liabilities – currency: OTHER
CURRENCIES
Tipo lo g ia / D ura ta re s idua A v is ta F ino a 3 m e s iD a o ltre 3 m e s i
f ino a 6 m e s i
D a o ltre 6 m e s i
f ino a 1 a nno
D a o ltre 1 a nno
f ino a 5 a nni
D a o ltre 5 a nni
f ino a 10 a nniOltre 10 a nni
D ura ta
inde te rm ina ta
1. A tt iv ità pe r c a s s a 2 .17 1 1.8 0 9 13 7 - - - - -
1.1 Tito li di debito - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
1.2 F inanziamenti a banche 1.065 - - - - - - -
1.3 F inanziamenti a c liente la 1.106 1.809 137 - - - - -
- c /c - - - - - - - -
- a ltri finanziamenti 1.106 1.809 137 - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri 1.106 1.809 137 - - - - -
2 . P a s s iv ità pe r c a s s a 1.4 2 6 2 .7 4 3 - - - - - -
2.1 Debiti vers o c liente la 1.166 - - - - - - -
- c /c 1.166 - - - - - - -
- a ltri debiti - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
2.2 Debiti vers o banche 260 2.743 - - - - - -
- c /c 260 - - - - - - -
- a ltri debiti - 2.743 - - - - - -
2.3 Tito li di debito - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
2.4 Altre pas s ività - - - - - - - -
- co n o pzio ne di rimbo rs o antic ipa to - - - - - - - -
- a ltri - - - - - - - -
3 . D e riv a t i f ina nzia ri - - - - - - - -
3.1 Co n tito lo s o tto s tante - - - - - - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
3.2 Senza tito lo s o tto s tante - - - - - - - -
- Opzio ni - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
- Altri - - - - - - - -
+ P o s izio ni lunghe - - - - - - - -
+ P o s izio ni co rte - - - - - - - -
199
2. Banking book: internal models and other sensitivity analysis methods
Banco di Brescia’s exposure to interest rate risk, measured by sensitivity analysis in a scenario of a parallel shift in the rate curve of +100 bps, was -35.91 million euro at the end
of the year, gross of the effect deriving from the phenomenon relating to early repayments (-
54.20 million euro as at 31st December 2008). The extent of risk, net of the impact deriving
from the phenomenon relating to the early repayments, came to -12.69 million euro (-32.61
million euro as at 31st December 2008), equal to 0.97% of the Supervisory Capital, compared with the threshold – defined by the Group’s Financial Risks Policy for Banco di
Brescia on this indicator – of 1% of the Supervisory Capital. The exposure included around -
2.52 million euro relating to firm commitment interest rate swaps on bond issues still in
placement as at 31st December 2009 excluded from the calculations. Net of this
contribution, the interest rate risk exposure would stand at -10.16 million euro, or 0.77% of
the Supervisory Capital. The table below reports the risk measures for the stated periods, for a standardised parallel
shift from the curve of +200 bps, consistent with the prudent legislative requirements,
compared to the supervisory capital at year end.
As at 31st December 2009, the impact on the interest margin in the hypothesis of a shift in
the reference interest rate curve of +100 bps is equivalent to +38.12 million euro, while with a lowering of the same (-100 bps) the impact on the interest rate margin is estimated at -
37.51 million euro. These exposure levels include the delayed adjustment effect (both in
terms of transfer elasticity of rate changes from the reference rates to internal rates, as well
as time delays in detecting these changes).
The capital profiles for repricing data and the sensitivity breakdown (+100 bps) by time band
are reported below.
- 6 000
- 4 000
- 2 000
0
2 000
4 000
6 000
ON-DEMAND 1M 3M 6M 1Y 2Y 3Y 4Y 5Y 7Y 10Y 15Y 20Y >20Y
M i l i o n i
Period gap profile
Asset/Liability imbalance Hedging derivatives Early repayments Overall gap
Cut-off - date: 31/12/2009
Risk indicators – yearly average
Parallel shift of +200 bp sensitivity/supervisory capital 1.6% 2.7%
Risk indicators – precise values 31/12/2009 31/12/2008
Parallel shift of +200 bp sensitivity/supervisory capital 1.6% 0.9%
2009 2008
200
Within the banking book, the main component is that classified as the IAS Loans and
Receivable category, mostly made up of municipal bonds.
For information purposes, it should be noted that at the end of December the total VaR of
Banco di Brescia’s banking book was around 302 euro (195 euro as at 30th June 2009) with a NAV of around 8.46 million euro (8.93 million euro as at 30th June 2009).
- 25 - 20 - 15 - 10
- 5 0 5
10 15 20 25
ON-DEMAND 1M 3M 6M 1Y 2Y 3Y 4Y 5Y 7Y 10Y 15Y 20Y >20Y
Milioni
Sensitivity bucket: scenario +100 bp
Asset/Liability imbalance Hedging derivatives Early repayments Total sensitivity
Cut-off - date: 31/12/2009
201
2.3 Exchange rate risk
The exchange rate risk represents the risk of undergoing losses, due to adverse changes in
the listed prices of foreign currencies, in all the currencies held by the Bank, irrespective of
the allocation portfolio.
Qualitative information
A. General aspects, management processes and methods for measuring exchange rate
risk
As part of the ALM analysis carried out by the Parent Company’s Risk Management division,
exchange rate risk exposure is determined on the basis of the method proposed by the Bank
of Italy and is quantified as 8% of the “net open position in exchange rates”, in the event
that the latter is higher than 2 percent of the supervisory capital.
The "net open position in exchange rates " is determined by:
1. calculating the net position in each currency and in gold;
2. converting the net positions into euro on the basis of the exchange rate or the gold
price;
3. adding together, separately, all the net long positions and all the net short positions;
The greater between the total of the net long positions and the total of the net short
positions represents the "net open position in exchange rates”.
B. Exchange rate risk hedging activity
Transactions on exchange markets are carried out the Group’s Cash Management Service
which uses instruments such as forward exchange transactions, forex swaps, domestic
currency swaps and exchange rate options, optimizing the profile of the risks originated by
the Group’s foreign currency positions.
202
Quantitative Information
Exchange rate risk exposure, determined on the basis of the above method, was non-
existent as at 31st December 2009.
1. Distribution by currency of assets, liabilities and derivatives
DOLLARO
USA
STERLINA
INGLESE
YEN
GIAPPONESE
FRANCO
SVIZZERO
CORONA
NORVEGESE
DOLLARO
HONG
KONG
ZLOTY
POLONIA
ALTRE
VALUTE
A. Attività finanziarie 177.372 10.807 2.794 21.128 2.164 - - 1.336
A.1 Titoli di debito - - - - - - - -
A.2 Titoli di capitale - - - - - - - -
A.3 Finanziamenti a banche 135.112 4.251 103 99 236 - - 962
A.4 Finanziamenti a clientela 42.260 6.556 2.691 21.029 1.928 - - 374
A.5 Altre attività finanziarie - - - - - - - -
B. Altre attività 932 233 15 309 11 - - 41
C. Passività finanziarie 180.208 10.066 2.791 21.341 2.160 - - 1.376
C.1 Debiti verso banche 42.572 5.067 2.741 20.221 363 - - 260
C.2 Debiti verso clientela 63.350 4.999 50 1.120 15 - - 1.116
C.3 Titoli di debito 74.286 - - - - - - -
C.4 Altre passività finanziarie - - - - 1.782 - - -
D. Altre passività 682 2 - 78 - - - 1
E. Derivati finanziari 1 - - - - - 35 -
E.1 Opzioni - - - - - - - -
E.1.1 Posizioni Lunghe 492.817 4.200 - - 3.855 1.074 - -
E.1.2 Posizioni Corte 492.817 4.200 - - 3.855 1.074 - -
E.1 Altri derivati 1 - - - - - 35 -
E.1.1 Posizioni Lunghe 318.449 4.861 1.233 138 1.818 - 35 -
E.1.2 Posizioni Corte 318.448 4.861 1.233 138 1.818 - - -
Totale attività 989.570 20.101 4.042 21.575 7.848 1.074 35 1.377
Totale passività 992.155 19.129 4.024 21.557 7.833 1.074 - 1.377
Sbilancio (2.585) 972 18 18 15 - 35 -
Voci
Valute
2. Internal models and other sensitivity analysis methods
Please refer to the description in the identical part relating to “interest rate and price risk”
(section 2.1-2.2).
207
2.4 Financial derivative instruments
A. FINANCIAL DERIVATIVES
A.1 Supervisory trading portfolio: notional, end of period and average figures
Ov e r the c o unte r C o ntro pa rt i C e ntra li Ov e r the c o unte r C o ntro pa rt i C e ntra li
1. Tito li di debito e tas s i d'inte res s e 10.591.889 - 13.077.764 -
a ) Opzio ni 2.133.123 - 6.945.374 -
b) Swap 8.458.766 - 6.132.390 -
c ) Fo rward - - - -
d) Futures - - - -
e ) Altri - - - -
2. Tito li di capita le e indic i azio neari - 1 204 11
a) Opzio ni - 1 204 11
b) Swap - - - -
c ) Fo rward - - - -
d) Futures - - - -
e ) Altri - - - -
3. Valute e o ro 520.281 - 785.499 -
a ) Opzio ni 435.304 - 534.937 -
b) Swap - - - -
c ) Fo rward 84.977 - 250.562 -
d) Futures - - - -
e ) Altri - - - -
4) Merc i 4.763 - 1.661 -
5) Altri s o tto s tanti - - - -
To ta le 11.116 .9 3 3 1 13 .8 6 5 .12 8 11
Va lo ri m e di 11.10 9 .8 3 4 1 13 .6 8 4 .3 0 4 11
To ta le 3 1/ 12 / 2 0 0 9 To ta le 3 1/ 12 / 2 0 0 8
A tt iv ità s o t to s ta nt i / Tipo lo g ie de riv a t i
204
A.2 Banking book: notional, end of period and average figures
A.2.1 For hedging
Ov e r the c o unte r C o ntro pa rt i C e ntra li Ov e r the c o unte r C o ntro pa rt i C e ntra li
1. Tito li di debito e tas s i d'inte res s e 3.780.181 - 4.135.822 -
a ) Opzio ni 7.322 - 7.322 -
b) Swap 3.772.859 - 4.128.500 -
c ) Fo rward - - - -
d) Futures - - - -
e ) Altri - - - -
2. Tito li di capita le e indic i azio neari - - - -
a ) Opzio ni - - - -
b) Swap - - - -
c ) Fo rward - - - -
d) Futures - - - -
e ) Altri - - - -
3. Valute e o ro - - - -
a ) Opzio ni - - - -
b) Swap - - - -
c ) Fo rward - - - -
d) Futures - - - -
e ) Altri - - - -
4) Merc i - - - -
5) Altri s o tto s tanti - - - -
To ta le 3 .7 8 0 .18 1 - 4 .13 5 .8 2 2 -
Va lo ri m e di 3 .9 8 6 .8 6 6 - 4 .3 7 1.0 6 8 -
To ta le 3 1/ 12 / 2 0 0 9 To ta le 3 1/ 12 / 2 0 0 8
A tt iv ità s o t to s ta nt i / Tipo lo g ie de riv a t i
205
A.2.2 Other derivatives
Ov e r the c o unte r C o ntro pa rt i C e ntra li Ov e r the c o unte r C o ntro pa rt i C e ntra li
1. Tito li di debito e tas s i d'inte res s e - - 5.103 -
a ) Opzio ni - - - -
b) Swap - - 5.103 -
c ) Fo rward - - - -
d) Futures - - - -
e ) Altri - - - -
2. Tito li di capita le e indic i azio neari 3.691 - 11.235 -
a ) Opzio ni 3.691 - 11.235 -
b) Swap - - - -
c ) Fo rward - - - -
d) Futures - - - -
e ) Altri - - - -
Attività s o tto s tanti/ Tipo lo gie deriva ti - - - -
a ) Opzio ni - - - -
b) Swap - - - -
c ) Fo rward - - - -
d) Futures - - - -
e ) Altri - - - -
4) Merc i - - - -
5) Altri s o tto s tanti - - - -
To ta le 3 .6 9 1 - 16 .3 3 8 -
Va lo ri m e di 3 .6 9 1 - 16 .4 3 3 -
To ta le 3 1/ 12 / 2 0 0 9 To ta le 3 1/ 12 / 2 0 0 8
A tt iv ità s o t to s ta nt i / Tipo lo g ie de riv a t i
206
A.3 Financial derivatives: gross positive fair value – breakdown by products
Ov e r the c o unte r C o ntro pa rt i C e ntra li Ov e r the c o unte r C o ntro pa rt i C e ntra li
1. P o rta fo glio di nego ziazio ne di vigilanza 82.092 1 111.081 1
a ) Opzio ni 4.430 1 5.669 1
b) Inte res t ra te s wap 75.899 - 98.033 -
c ) Cro s s currency s wap - - - -
d) Equity s wap - - - -
e ) Fo rward 1.172 - 7.119 -
f) Futures - - - -
g) Altri 591 - 260 -
2. P o rta fo glio bancario - di co pertura 75.128 - 93.702 -
a ) Opzio ni - - - -
b) Inte res t ra te s wap 75.128 - 93.702 -
c ) Cro s s currency s wap - - - -
d) Equity s wap - - - -
e ) Fo rward - - - -
f) Futures - - - -
g) Altri - - - -
3. P o rta fo glio bancario - a ltri deriva ti - - - -
a ) Opzio ni - - - -
b) Inte res t ra te s wap - - - -
c ) Cro s s currency s wap - - - -
d) Equity s wap - - - -
e ) Fo rward - - - -
f) Futures - - - -
g) Altri - - - -
To ta le 15 7 .2 2 0 1 2 0 4 .7 8 3 1
P o rta fo g li/ Tipo lo g ie de riv a t i
F a ir v a lue po s it iv o F a ir v a lue po s it iv o
To ta le 3 1/ 12 / 2 0 0 9 To ta le 3 1/ 12 / 2 0 0 8
207
A.4 Financial derivatives: gross negative fair value – breakdown by products
Ov e r the c o unte r C o ntro pa rt i C e ntra li Ov e r the c o unte r C o ntro pa rt i C e ntra li
1. P o rta fo glio di nego ziazio ne di vigilanza 81.138 - 106.580 -
a ) Opzio ni 4.430 - 5.669 -
b) Inte res t ra te s wap 74.968 - 93.493 -
c ) Cro s s currency s wap - - - -
d) Equity s wap - - - -
e ) Fo rward 1.167 - 7.161 -
f) Futures - - - -
g) Altri 573 - 257 -
2. P o rta fo glio bancario - di co pertura 51.429 - 50.101 -
a ) Opzio ni - - - -
b) Inte res t ra te s wap 51.429 - 50.101 -
c ) Cro s s currency s wap - - - -
d) Equity s wap - - - -
e ) Fo rward - - - -
f) Futures - - - -
g) Altri - - - -
3. P o rta fo glio bancario - a ltri deriva ti - - - -
a ) Opzio ni - - - -
b) Inte res t ra te s wap - - - -
c ) Cro s s currency s wap - - - -
d) Equity s wap - - - -
e ) Fo rward - - - -
f) Futures - - - -
g) Altri - - - -
To ta le 13 2 .5 6 7 - 15 6 .6 8 1 -
F a ir v a lue ne g a t iv o
To ta le 3 1/ 12 / 2 0 0 9 To ta le 3 1/ 12 / 2 0 0 8P o rta fo g li/ Tipo lo g ie de riv a t i
F a ir v a lue ne g a t iv o
208
A.5 OTC financial derivatives – supervisory trading portfolio: notional values, gross positive and negative fair values by counterparts – contracts not included under netting agreements
1) Tito li d i de bito e ta s s i d i inte re s s e
- va lo re no zio nale - 9.387 6.200.726 1.623.516 - 1.960.073 798.186
- fa ir va lue po s itivo - - 7.389 524 - 60.839 7.557
- fa ir va lue negativo - 5 74.377 - - 952 44
- es po s izio ne futura - 46 40.812 18.622 - 11.120 2.892
2 ) Tito li d i c a pita le e indic i e a z io na ri
- va lo re no zio nale - - - - - 1 -
- fa ir va lue po s itivo - - - - - 1 -
- fa ir va lue negativo - - - - - - -
- es po s izio ne futura - - - - - - -
3 ) Va lute e o ro
- va lo re no zio nale - - 260.123 562 - 254.672 4.923
- fa ir va lue po s itivo - - 2.015 66 - 3.085 25
- fa ir va lue negativo - - 3.171 - - 1.957 58
- es po s izio ne futura - - 2.803 6 - 2.746 49
4 ) A ltri v a lo ri
- va lo re no zio nale - - 2.380 - - 2.384 -
- fa ir va lue po s itivo - - 519 - - 73 -
- fa ir va lue negativo - - 65 - - 508 -
- es po s izio ne futura - - 238 - - 238 -
C o ntra tt i no n rie ntra nt i in a c c o rdi di c o m pe ns a zio neGo v e rni e B a nc he
C e ntra li
Im pre s e no n
f ina nzia rieA ltri s o g g e tt iA ltri e nt i pubblic i B a nc he S o c ie tà f ina nzia rie
S o c ie tà di
a s s ic ura zio ne
209
A.7 OTC financial derivatives – banking book: notional values, gross positive and negative fair values by counterparts – contracts not included under netting agreements
1) Tito li d i de bito e ta s s i d i inte re s s e
- va lo re no zio nale - - 3.780.181 - - - -
- fa ir va lue po s itivo - - 75.128 - - - -
- fa ir va lue negativo - - 51.429 - - - -
- es po s izio ne futura - - 20.631 - - - -
2 ) Tito li d i c a pita le e indic i e a z io na ri
- va lo re no zio nale - - - - - - 3.691
- fa ir va lue po s itivo - - - - - - -
- fa ir va lue negativo - - - - - - -
- es po s izio ne futura - - - - - - 295
3 ) Va lute e o ro
- va lo re no zio nale - - - - - - -
- fa ir va lue po s itivo - - - - - - -
- fa ir va lue negativo - - - - - - -
- es po s izio ne futura - - - - - - -
4 ) A ltri v a lo ri
- va lo re no zio nale - - - - - - -
- fa ir va lue po s itivo - - - - - - -
- fa ir va lue negativo - - - - - - -
- es po s izio ne futura - - - - - - -
C o ntra tt i no n rie ntra nt i in a c c o rdi di c o m pe ns a zio neS o c ie tà di
a s s ic ura zio ne
Im pre s e no n
f ina nzia rieA ltri s o g g e tt i
Go v e rni e B a nc he
C e ntra liA ltri e nt i pubblic i B a nc he S o c ie tà f ina nzia rie
210
A.9 Residual maturity of OTC financial derivatives: notional values
S o tto s ta nt i/ Vita re s idua F ino a 1 a nnoOltre 1 a nno e f ino a
5 a nniOltre 5 a nni To ta le
A ) P o rta fo g lio di ne g o zia z io ne di v ig ila nza
A.1 Deriva ti finanziari s u tito li di debito e tas s i d'inte res s e 5.561.812 3.161.591 1.868.486 10 .5 9 1.8 8 9
A.2 Deriva ti finanziari s u tito li di capita le e indic i azio nari - - 1 1
A.3 Deriva ti finanziari s u tas s i di cambio e o ro 510.577 9.704 - 5 2 0 .2 8 1
A.4 Deriva ti finanziari s u a ltri va lo ri 4.763 - - 4 .7 6 3
B ) P o rta fo g lio ba nc a rio
B.1 Deriva ti finanziari s u tito li di debito e tas s i d'inte res s e 1.002.859 2.078.008 699.314 3 .7 8 0 .18 1
B.2 Deriva ti finanziari s u tito li di capita le e indic i azio nari - 3.691 - 3 .6 9 1
B.3 Deriva ti finanziari s u tas s i di cambio e o ro - - - -
B.4 Deriva ti finanziari s u a ltri va lo ri - - - -
To ta le 3 1/ 12 / 2 0 0 9 7 .0 8 0 .0 11 5 .2 5 2 .9 9 4 2 .5 6 7 .8 0 1 14 .9 0 0 .8 0 6
To ta le 3 1/ 12 / 2 0 0 8 6 .9 0 5 .8 3 1 10 .0 4 9 .5 5 3 1.0 6 1.9 15 18 .0 17 .2 9 9
211
B. CREDIT DERIVATIVES There were no credit derivatives.
C. FINANCIAL AND CREDIT DERIVATIVES There were no financial or credit derivatives.
212
Section 3 Liquidity Risk Qualitative information
A. General aspects, management processes and methods for measuring liquidity risk
The liquidity risk refers to the Bank’s ability, or lack of, to meet its payment obligations and/or raise additional funds on the market (funding liquidity risk), or the possibility that
the value of any liquidation of certain assets differs significantly from current market values
(asset liquidity risk).
At consolidated and individual levels, the liquidity risk is disciplined via the Financial Risks
policy, which not only establishes the exposure limits and the related early warning thresholds, but also includes the rules aimed at pursuing and maintaining structural
balance for the network banks and the product companies, by means of co-ordinated and
efficient lending and funding policies.
The policy seeks to standardise both the methods of intervention as well as the identification
criteria for economic conditions, possibly recognising specific exceptions in advance, for all
Group companies. The liquidity risk supports on behalf of the network banks are concentrated within the
Parent Company and are the responsibility of:
• the Finance Macro division (1st level support) which takes steps to monitor the
liquidity each day and handle the risk within the limits of the defined limits;
• the Risk Management division (2nd level support), which is responsible for gauging
the summary risk indicators and periodically checking the observance of the limits.
With particular reference to the position in terms of structural balance, the liquidity risk is essentially monitored by means of a liquidity gap model where the timing evolution of the
net cash flows is determined, for the purpose of highlighting any criticalities in the expected
liquidity conditions. The total liquidity requirement is determined as the sum total of the
negative gaps (outgoing flows greater than incoming flows) detected for each individual time
band. Any positive gap detected in a band reduces the negative gaps relating to the
subsequent time bands. The liquidity requirement thus established is compared with the total available liquidity –
represented by assets which can immediately be made liquid and assets which can easy be
made liquid – so as to quantify the degree of coverage of the risk generated by the adopted
position.
213
Quantitative Information
1.1. Time distribution of the contractual residual maturity of financial assets and
liabilities - currency: EURO
Vo c i / S c a g lio ni te m po ra li A v is ta
D a o ltre 1
g io rno a 7
g io rni
D a o ltre 7
g io rni a 15
g io rni
D a o ltre 15
g io rni a 1 m e s e
D a o ltre 1 m e s e
f ino a 3 m e s i
D a o ltre 3
m e s i f ino a 6
m e s i
D a o ltre 6
m e s i f ino a 1
a nno
D a o ltre 1 a nno
f ino a 5 a nniOltre 5 a nni Inde te rm ina ta To ta le
A tt iv ità pe r c a s s a 5 .9 6 6 .8 4 6 6 4 9 .6 2 3 6 6 1.2 14 2 9 1.7 6 6 2 .9 4 7 .0 8 8 2 .5 8 0 .9 0 8 5 3 4 .17 7 3 .10 8 .5 0 1 4 .7 3 2 .9 2 6 - 2 1.4 7 3 .0 4 9
A.1 Tito li di s ta to - - - - - - - 26.601 - - 26.601
A.2 Tito li di debito quo ta ti - - - - - - - - - - -
A.3 Altri tito li di debito 8.458 - - 472 1.016 236 5.057 198 790 - 16.227
A.4 Quo te O.I.C.R. - - - - - - - 78 - - 78
A.5 F inanziamenti 5.958.388 649.623 661.214 291.294 2.946.072 2.580.672 529.120 3.081.624 4.732.136 - 21.430.143
- Banche 1.286.796 508.900 624.940 130.601 2.459.199 2.265.488 366 24.998 - - 7.301.288
- Cliente la 4.671.592 140.723 36.274 160.693 486.873 315.184 528.754 3.056.626 4.732.136 - 14.128.855
P a s s iv ità pe r c a s s a 13 .5 4 7 .8 0 1 4 3 .3 9 9 2 2 .4 5 6 1.3 2 1.8 2 4 6 2 2 .7 5 2 2 8 6 .9 4 5 5 9 1.5 3 9 2 .4 16 .6 6 7 1.3 9 9 .5 9 8 - 2 0 .2 5 2 .9 8 1
B.1 Depo s iti 8.373.140 8.578 - 136.417 25.210 467 28.166 - 660 - 8.572.638
- Banche 174.239 - - - - - 27.900 - - - 202.139
- Cliente la 8.198.901 8.578 - 136.417 25.210 467 266 - 660 - 8.370.499
B.2 Tito li di debito 5.174.484 723 1.061 116.263 413.677 189.590 552.180 2.385.417 1.392.503 - 10.225.898
B.3 Altre pas s ività 177 34.098 21.395 1.069.144 183.865 96.888 11.193 31.250 6.435 - 1.454.445
Ope ra zio ni "fuo ri b ila nc io " (14 .2 0 2 ) 13 .2 6 8 5 .0 16 17 .2 15 3 6 .5 4 6 2 7 1.2 9 0 (2 5 .16 0 ) 117 .9 3 5 5 9 1.8 5 2 9 .4 16 1.0 2 3 .17 6
C.1 Deriva ti finanzia ri co n s cambio di capita le - - - - (30) - - 2.141 - - 2.111
- P o s izio ni lunghe - 721 10.626 19.010 58.014 63.125 102.628 6.993 - - 261.117
- P o s izio ni co rte - 721 10.626 19.010 58.044 63.125 102.628 4.852 - - 259.006
C.2 Deriva ti finanzia ri s enza s cambio di capita le - 13.268 5.016 16.139 33.566 (488) (45.221) 2.123 - - 24.403
- P o s izio ni lunghe - 23.206 12.672 18.815 69.563 13.957 1.642 3.594 - - 143.449
- P o s izio ni co rte - 9.938 7.656 2.676 35.997 14.445 46.863 1.471 - - 119.046
C.3 Depo s iti e finanziamenti da ricevere - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.4 Impegni irrevo cabili a e ro gare fo ndi (1.001.449) - - 1.076 3.010 271.778 20.061 113.671 591.852 - (1)
- P o s izio ni lunghe 187.602 - - 1.076 3.010 271.778 20.061 113.671 591.852 13.746 1.202.796
- P o s izio ni co rte 1.189.051 - - - - - - - - 13.746 1.202.797
C.5 Garanzie finanzia rie rilas c ia te 987.247 - - - - - - - - 9.416 996.663
214
1.2. Time distribution of the contractual residual maturity of financial assets and
liabilities - currency: USD
Vo c i / S c a g lio ni te m po ra li A v is ta
D a o ltre 1
g io rno a 7
g io rni
D a o ltre 7
g io rni a 15
g io rni
D a o ltre 15
g io rni a 1
m e s e
D a o ltre 1
m e s e f ino a 3
m e s i
D a o ltre 3
m e s i f ino a 6
m e s i
D a o ltre 6
m e s i f ino a 1
a nno
D a o ltre 1
a nno f ino a 5
a nni
Oltre 5 a nni Inde te rm ina ta To ta le
A tt iv ità pe r c a s s a 6 8 .4 6 8 7 .17 1 4 .0 4 9 17 .4 6 1 7 9 .9 2 8 4 3 2 - - - - 17 7 .5 0 9
A.1 Tito li di s ta to - - - - - - - - - - -
A.2 Tito li di debito quo ta ti - - - - - - - - - - -
A.3 Altri tito li di debito - - - - - - - - - - -
A.4 Quo te O.I.C.R. - - - - - - - - - - -
A.5 F inanziamenti 68.468 7.171 4.049 17.461 79.928 432 - - - - 177.509
- Banche 60.433 74 - 8.114 66.369 123 - - - - 135.113
- Cliente la 8.035 7.097 4.049 9.347 13.559 309 - - - - 42.396
P a s s iv ità pe r c a s s a 13 2 .6 9 0 3 6 .5 7 7 4 6 5 4 1 6 .2 3 9 3 .7 5 7 5 0 1 - - - 18 0 .3 5 1
B.1 Depo s iti 57.410 36.577 46 541 5.104 2.893 476 - - - 103.047
- Banche 20 36.096 - - 3.471 - - - - - 39.587
- Cliente la 57.390 481 46 541 1.633 2.893 476 - - - 63.460
B.2 Tito li di debito 74.286 - - - - - - - - - 74.286
B.3 Altre pas s ività 994 - - - 1.135 864 25 - - - 3.018
Ope ra zio ni "fuo ri b ila nc io " 4 2 .9 9 8 - - 1 - 7 3 1 - - 3 0 5 4 3 .3 7 8
C.1 Deriva ti finanzia ri co n s cambio di capita le - - - - - - - - - - -
- P o s izio ni lunghe - 732 10.323 16.081 55.210 60.426 102.062 4.852 - - 249.686
- P o s izio ni co rte - 732 10.323 16.081 55.210 60.426 102.062 4.852 - - 249.686
C.2 Deriva ti finanzia ri s enza s cambio di capita le - - - 1 - 1 1 - - - 3
- P o s izio ni lunghe - - - 4 8.322 4 4 - - - 8.334
- P o s izio ni co rte - - - 3 8.322 3 3 - - - 8.331
C.3 Depo s iti e finanziamenti da ricevere - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.4 Impegni irrevo cabili a e ro gare fo ndi (72) - - - - 72 - - - - -
- P o s izio ni lunghe 166 - - - - 72 - - - - 238
- P o s izio ni co rte 238 - - - - - - - - - 238
C.5 Garanzie finanzia rie rilas c ia te 43.070 - - - - - - - - 305 43.375
215
1.3. Time distribution of the contractual residual maturity of financial assets and
liabilities - currency: CHF
Vo c i / S c a g lio ni te m po ra li A v is ta
D a o ltre 1
g io rno a 7
g io rni
D a o ltre 7
g io rni a 15
g io rni
D a o ltre 15
g io rni a 1
m e s e
D a o ltre 1
m e s e f ino a 3
m e s i
D a o ltre 3
m e s i f ino a 6
m e s i
D a o ltre 6
m e s i f ino a 1
a nno
D a o ltre 1
a nno f ino a 5
a nni
Oltre 5 a nni Inde te rm ina ta To ta le
A tt iv ità pe r c a s s a 12 4 1.4 0 2 9 7 1.112 1.7 10 10 4 16 .4 8 5 - - - 2 1.0 3 4
A.1 Tito li di s ta to - - - - - - - - - - -
A.2 Tito li di debito quo ta ti - - - - - - - - - - -
A.3 Altri tito li di debito - - - - - - - - - - -
A.4 Quo te O.I.C.R. - - - - - - - - - - -
A.5 F inanziamenti 124 1.402 97 1.112 1.710 104 16.485 - - - 21.034
- Banche 99 - - - - - - - - - 99
- Cliente la 25 1.402 97 1.112 1.710 104 16.485 - - - 20.935
P a s s iv ità pe r c a s s a 5 0 8 16 .5 4 8 - 1.6 9 1 2 .4 9 4 2 7 7 4 - - - 2 1.3 4 2
B.1 Depo s iti 508 16.548 - 1.691 2.494 27 74 - - - 21.342
- Banche 169 16.548 - 1.011 2.494 - - - - - 20.222
- Cliente la 339 - - 680 - 27 74 - - - 1.120
B.2 Tito li di debito - - - - - - - - - - -
B.3 Altre pas s ività - - - - - - - - - - -
Ope ra zio ni "fuo ri b ila nc io " 3 7 7 - - - - - - - - - 3 7 7
C.1 Deriva ti finanzia ri co n s cambio di capita le - - - - - - - - - - -
- P o s izio ni lunghe - - - - 138 - - - - - 138
- P o s izio ni co rte - - - - 138 - - - - - 138
C.2 Deriva ti finanzia ri s enza s cambio di capita le - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.3 Depo s iti e finanziamenti da ricevere - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.4 Impegni irrevo cabili a e ro gare fo ndi - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.5 Garanzie finanzia rie rilas c ia te 377 - - - - - - - - - 377
216
1.4. Time distribution of the contractual residual maturity of financial assets and
liabilities - currency: GBP
Vo c i / S c a g lio ni te m po ra li A v is ta
D a o ltre 1
g io rno a 7
g io rni
D a o ltre 7
g io rni a 15
g io rni
D a o ltre 15
g io rni a 1
m e s e
D a o ltre 1
m e s e f ino a 3
m e s i
D a o ltre 3
m e s i f ino a 6
m e s i
D a o ltre 6
m e s i f ino a 1
a nno
D a o ltre 1
a nno f ino a 5
a nni
Oltre 5 a nni Inde te rm ina ta To ta le
A tt iv ità pe r c a s s a 5 .8 8 6 2 7 1 12 8 4 .13 1 2 2 6 8 8 - - (4 9 ) - 10 .6 8 1
A.1 Tito li di s ta to - - - - - - - - - - -
A.2 Tito li di debito quo ta ti - - - - - - - - - - -
A.3 Altri tito li di debito - - - - - - - - - - -
A.4 Quo te O.I.C.R. - - - - - - - - - - -
A.5 F inanziamenti 5.886 271 128 4.131 226 88 - - (49) - 10.681
- Banche 4.251 - - - - - - - - - 4.251
- Cliente la 1.635 271 128 4.131 226 88 - - (49) - 6.430
P a s s iv ità pe r c a s s a 5 .114 2 1 3 4 .5 2 2 - 3 9 7 13 - - - 10 .0 7 0
B.1 Depo s iti 5.114 21 3 4.522 - 397 13 - - - 10.070
- Banche 567 - - 4.500 - - - - - - 5.067
- Cliente la 4.547 21 3 22 - 397 13 - - - 5.003
B.2 Tito li di debito - - - - - - - - - - -
B.3 Altre pas s ività - - - - - - - - - - -
Ope ra zio ni "fuo ri b ila nc io " - - - - - - - - - - -
C.1 Deriva ti finanzia ri co n s cambio di capita le - - - - - - - - - - -
- P o s izio ni lunghe - - 338 3.033 3.873 1.254 563 - - - 9.061
- P o s izio ni co rte - - 338 3.033 3.873 1.254 563 - - - 9.061
C.2 Deriva ti finanzia ri s enza s cambio di capita le - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.3 Depo s iti e finanziamenti da ricevere - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.4 Impegni irrevo cabili a e ro gare fo ndi - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.5 Garanzie finanzia rie rilas c ia te - - - - - - - - - - -
217
1.5. Time distribution of the contractual residual maturity of financial assets and
liabilities - currency: JPY
Vo c i / S c a g lio ni te m po ra li A v is ta
D a o ltre 1
g io rno a 7
g io rni
D a o ltre 7
g io rni a 15
g io rni
D a o ltre 15
g io rni a 1
m e s e
D a o ltre 1
m e s e f ino a 3
m e s i
D a o ltre 3
m e s i f ino a 6
m e s i
D a o ltre 6
m e s i f ino a 1
a nno
D a o ltre 1
a nno f ino a 5
a nni
Oltre 5 a nni Inde te rm ina ta To ta le
A tt iv ità pe r c a s s a 118 1.0 5 2 19 1.0 0 3 4 5 0 13 6 - - - - 2 .7 7 8
A.1 Tito li di s ta to - - - - - - - - - - -
A.2 Tito li di debito quo ta ti - - - - - - - - - - -
A.3 Altri tito li di debito - - - - - - - - - - -
A.4 Quo te O.I.C.R. - - - - - - - - - - -
A.5 F inanziamenti 118 1.052 19 1.003 450 136 - - - - 2.778
- Banche 103 - - - - - - - - - 103
- Cliente la 15 1.052 19 1.003 450 136 - - - - 2.675
P a s s iv ità pe r c a s s a 5 2 - 4 5 1 1.2 7 7 1.0 14 - - - - - 2 .7 9 4
B.1 Depo s iti 52 - 451 1.277 1.014 - - - - - 2.794
- Banche 2 - 451 1.277 1.014 - - - - - 2.744
- Cliente la 50 - - - - - - - - - 50
B.2 Tito li di debito - - - - - - - - - - -
B.3 Altre pas s ività - - - - - - - - - - -
Ope ra zio ni "fuo ri b ila nc io " - - - - - - - - - - -
C.1 Deriva ti finanzia ri co n s cambio di capita le - - - - - - - - - - -
- P o s izio ni lunghe - - - - 1.158 75 - - - - 1.233
- P o s izio ni co rte - - - - 1.158 75 - - - - 1.233
C.2 Deriva ti finanzia ri s enza s cambio di capita le - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.3 Depo s iti e finanziamenti da ricevere - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.4 Impegni irrevo cabili a e ro gare fo ndi - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.5 Garanzie finanzia rie rilas c ia te - - - - - - - - - - -
218
1.6. Time distribution of the contractual residual maturity of financial assets and
liabilities - currency: OTHER CURRENCIES
Vo c i / S c a g lio ni te m po ra li A v is ta
D a o ltre 1
g io rno a 7
g io rni
D a o ltre 7
g io rni a 15
g io rni
D a o ltre 15
g io rni a 1
m e s e
D a o ltre 1
m e s e f ino a 3
m e s i
D a o ltre 3
m e s i f ino a 6
m e s i
D a o ltre 6
m e s i f ino a 1
a nno
D a o ltre 1
a nno f ino a 5
a nni
Oltre 5 a nni Inde te rm ina ta To ta le
A tt iv ità pe r c a s s a 1.2 0 1 5 1 - - 2 .0 6 5 - - - - - 3 .3 17
A.1 Tito li di s ta to - - - - - - - - - - -
A.2 Tito li di debito quo ta ti - - - - - - - - - - -
A.3 Altri tito li di debito - - - - - - - - - - -
A.4 Quo te O.I.C.R. - - - - - - - - - - -
A.5 F inanziamenti 1.201 51 - - 2.065 - - - - - 3.317
- Banche 1.186 - - - - - - - - - 1.186
- Cliente la 15 51 - - 2.065 - - - - - 2.131
P a s s iv ità pe r c a s s a 8 8 3 16 6 - 10 3 6 5 119 3 3 1.8 3 8 - - 3 .4 14
B.1 Depo s iti 861 166 - 10 365 119 33 - - - 1.554
- Banche 214 - - - 361 - - - - - 575
- Cliente la 647 166 - 10 4 119 33 - - - 979
B.2 Tito li di debito 22 - - - - - - 1.838 - - 1.860
B.3 Altre pas s ività - - - - - - - - - - -
Ope ra zio ni "fuo ri b ila nc io " 4 .2 0 1 - - - 2 6 6 - - - - 4 4 .4 7 1
C.1 Deriva ti finanzia ri co n s cambio di capita le - - - - - - - - - - -
- P o s izio ni lunghe - - - - - 1.074 - - - - 1.074
- P o s izio ni co rte - - - - - 1.074 - - - - 1.074
C.2 Deriva ti finanzia ri s enza s cambio di capita le - - - - 266 - - - - - 266
- P o s izio ni lunghe - - - - 303 - - - - - 303
- P o s izio ni co rte - - - - 37 - - - - - 37
C.3 Depo s iti e finanziamenti da ricevere - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.4 Impegni irrevo cabili a e ro gare fo ndi - - - - - - - - - - -
- P o s izio ni lunghe - - - - - - - - - - -
- P o s izio ni co rte - - - - - - - - - - -
C.5 Garanzie finanzia rie rilas c ia te 4.201 - - - - - - - - 4 4.205
219
Section 4 Operational Risk
Qualitative information
A. General aspects, management processes and methods for measuring operational
risk
Operational risk refers to the risk of losses originating from inadequate or dysfunctional procedures, human resources or internal systems, or from external events. This type of risk
includes losses from fraud, human error, operational interruptions, system unavailability,
contractual breaches, and natural catastrophes.
The definition also includes the legal risk of losses from violations of legislation or
regulations, of contractual or extra-contractual responsibilities or from other disputes, but does not includes reputational or strategic risk.
Operational risk is characterized by cause-effect relationships where, due to one or more
ensuing factors, a detrimental event, or effect, is generated leading directly to economic loss.
Therefore, operational losses are all the negative economic effects deriving from operating
events, recorded in the company accounts and such that they have an impact on the income
statement. In developing the operational risk management policy, the UBI Banca Group paid particular
attention to maintaining an adequate risk profile consistent with the risk propensity defined
by Senior Management. Group policy requires that operational risks be identified, measured
and monitored as part of the overall Operational Risk Management process with the
following objectives:
• identify the causes of detrimental events that generate operational losses and, as a
result, increase company profitability and improve management efficiency by
identifying critical areas, monitoring them and optimising the control system;
• optimise risk mitigation and transfer policies such as for example insurance policies
in light of the extent and actual exposure to risk;
• optimise the amount of capital assets allocated to and required for operational risk as well as the policies for providing against such risks in view of creating value for
the shareholders;
• support the decision-making process relating to the start-up of new businesses,
activities, products and systems.
• develop an operational risk culture at Business Unit level making the entire structure aware of the existence of such risk;
• satisfy the regulatory requirements of the New Basel Capital Accord on Supervisory
capital of Banks and banking groups.
In light of the regulatory context defined via publication of Circular No. 263 dated 27th
December 2006 by the Bank of Italy, the bank adopted the Standardized method (TSA) for the calculation of the capital requirement on Operational Risks and launched a procedure
aimed at requesting authorization from the Supervisory Authority for use of an Advanced-
type internal model (Advanced Measurement Approach-AMA) in combined use with the TSA
method (partial AMA, or by “partial” use ones means the adoption of the AMA method solely
for certain Business Lines), currently adopted for just management purposes.
Organisational model
The operational risk is present throughout the structures and resides in each division and organizational unit. An organizational model has therefore been defined for its handling; this
assigns tasks and responsibilities both at peripheral and central level of the individual legal
entities involved at Group level. An Operational Risk Committee was set up at the Parent
Company with the aim of guiding and verifying the overall Operational Risk Management
process whilst, within the Risk Management Area, a specific function (Operational Risk
Service) is already dedicated to planning, developing and maintaining business methodologies for recording, measuring, monitoring and verifying the effectiveness of
operational risk mitigation measures and related reporting systems. For planning and
220
developing the methodological framework and the structure of the AMA model, as well as
maintaining the calculation environment, the Operational Risk Service is supported by the
Methodologies and Models Service which is part of the Risk Management Division. The Risk
Capital and Policies Division also includes the Financial & Oprisk Policies Service, which is
responsible, along with other competent organisational units, for defining the management policy, controlling and mitigating operational risk including insurance risk management,
and Models and Processes Validation Services, which is responsible for the validation
process.
The Bank’s organisational model is structured according to four levels of responsibility:
Operational Risk Contact (RRO): this is the person responsible within the legal entity for implementing the total operational risk management framework;
Local Operational Risk Support (SROL): the principal support role to the Operational Risk Contact in governing the total operational risk management process for the legal entity;
Risk Champion (RC): operationally responsible for the operational risk management process to achieve full validation, for each business area, coordinating and
supporting the reference Risk Owners. It supports the risk monitoring process and
participates in defining and implementing mitigation strategies;
Risk Owner (RO): responsible for recognising and taking note of historical and/or potential operating loss events that occur or are discovered during daily activities.
Participates in implementing the corrective and improvement measures communicated from higher levels aimed at reducing the risk exposure level.
Management, measurement and control systems
The Operational Risk Management system comprises:
a decentralised process that collects data on operating losses (Loss Data Collection) aimed at the integrated and systematic recording of detrimental events that have
occurred and caused an actual loss; The operational losses detected are periodically
reconciled with the accounts and up-dated in real time by the Risk Owners and/or
Risk Champions via a procedure, available on the Group intranet, with separate indicate of the recoveries eventually obtained, also by means of the activation of
specific insurance policies;
a structured process for mapping and assessing the risk scenarios and operating context factors and the system of significant internal controls (Risk Assessment) in
place at the Group’s business areas, supported by an IT procedure for its integrated
management, with the aim of providing a critical self-diagnosis of operations as
concerns the potential risk of future losses, adequacy of controls and mitigation procedures in force.
a database of operating losses suffered by the Italian system starting from 2003. The Group supports the initiative undertaken by the DIPO Observatory launched by ABI
on the subject of operational risks for the exchange of system loss data since its
establishment;
an economic and regulatory capital measurement system, to determine the operational risk capital requirement by business unit using the Standardised and
AMA method. As regards the AMA operational risk measurement, the model, now achieved, periodically subject to a validation and internal review process, is of the
Loss Distribution Approach type and was developed centrally by the Parent
Company’s Risk Management division via the SAS OpRisk VaR and SAS calculation
engine supplementing – via the adoption of the Bayes method – disclosure sources
illustrated in the previous points (internal, external losses and risk assessment).
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Reporting
To support monitoring activities for operational risks, a reporting system was developed that
provides the information necessary for correctly managing, measuring and mitigating the
levels of risk borne by the Group.
This system reflects the same levels of responsibility envisaged by the organisational model to support the various information needs of the Group’s federal model with the aim of
guaranteeing the standardisation of information and allowing regular verification of
operational risks taken in preparation of defining strategies and management objectives that
are in line with the acceptable risk levels.
The reports for the corporate boards, the Parent Company’s Senior Management and the
Group’s main Network Banks as well as the Operational Risk Committee are prepared centrally, on a regular basis, by the Operational Risk Service and include, with different
levels of detail and frequency (monthly/quarterly) based on necessity, a trend analysis of
internal losses and related recoveries along with a comparison with external system data,
the results of the evaluation of risk exposure identifying any vulnerable areas and a
description of the action required to prevent and mitigate risk as well as the respective efficacy.
Risk transfer mechanisms
The UBI Banca Group has taken out adequate insurance policies covering the main
transferable operational risks taking into account the requirements under Prudent Supervisory Legislation (Circular No. 263/2006, Bank of Italy). The policies were stipulated
by UBI Banca Scpa in its own name and on behalf of the Group network banks and product
companies concerned.
Legal risk
Banco di Brescia is involved in a number of judicial proceedings of differing natures and
legal proceedings resulting from the ordinary performance of its activities. While it is not
possible to know the final outcomes of these proceedings with certainty, any unfavourable results would not have, either singularly or totally, a significant negative effect on the
Bank’s balance sheet or income statement.
Among the significant proceedings which involve the Bank, bankruptcy revocation action
brought by Giacomelli Sport Spa is currently pending, for a requested equivalent value of
1,102,233 euro, as well as by Formenti Seleco Spa, for a requested equivalent value of
1,447,453 euro currently in extraordinary administration. Furthermore, the extraordinary administration of Formenti Seleco Spa, in addition to the
revocation action summoned Banco di Brescia before the court along with another 18 legal
entities, for action concerning the abusive granting of credit for a requested equivalent value
of 45,608,320 euro. In this connection, it is appropriate to emphasise how the contents of
the three sentences of the Supreme Court of Cassation – Joint Sections dated March 2006 are known, relating to the inexistence of the legal standing of the official receiver to exercise,
vis-à-vis the banks, “action concerning liability deriving from the abusive granting of credit”
(sentences No. 7030, No. 7029 and No. 7031 dated 28th March 2006) confirmed in the
following Court case law (see Cassation, civil section I, 13th June 2008 No. 16031). It
should also be highlighted that the Monza Court – which is the same legal authority applied
to for the afore-mentioned suit – in a recent sentence (12th September 2007) definitely excluded that the disbursement of a mortgage loan under market conditions could represent
a source of damage compensable with regard to the financed company. In fact, damages
consisting of unjust injury to equity cannot be hypothesised: damage in a legal sense only
occurs if the injury of a legally relevant interest and the disbursement of the credit, even if
hypothetically abusive, does not create such damage”. Based on the requests received, the Bank deemed it appropriate to make provisions on the
basis of a reconstruction of the calculation of the amounts potentially at risk and taking into
account the more consolidated case law in this connection.
222
Quantitative Information
The graphics below show that the main sources of operational risk for the Bank between
January 2004 and December 2009 are "Processes" (60% of the impacts and 12% of the
frequencies) and "External Causes" (33% of the impacts and 87% of the frequencies). The “Processes” risk driver includes, among other things, unintentional errors, lack of
preparation of the staff, procedural and process inefficiencies, lack of observance of
procedures and internal controls. The “External Causes” risk driver includes human action
triggered by third parties and which the Bank cannot directly control, such as thefts and
robberies, credit card fraud, damages caused by natural disasters (earthquakes, floods, etc.) and other external events.
The trend in the impacts, before any insurance claims and other external recoveries,
discloses a stationary trend with respect to last year. In terms of the numerousness of the
events, in the last two years there has been an increase in payment card fraud in relation to
which suitable measures for preventing and reducing the risk have been set up.
0%
5%
10%
15%
20%
25%
2004 2005 2006 2007 2008 2009
Distribuzione delle perdite operative per anno di rilevazione (gennaio 2004 - dicembre 2009)
n° Eventi Impatti
223
List of the top five losses between
January 2004 – December 2009
Business Line
Retail Banking
Retail Banking
Retail Banking
Retail Brokerage
Retail Brokerage
Tipologia Evento (Liv. I) Impatti Recuperi
Esecuzione, consegna e gestione dei processi 2.269.539 0
Frode interna 1.265.273 0
Esecuzione, consegna e gestione dei processi 1.250.000 0
Clientela, prodotti e prassi professionali 686.230 0
Clientela, prodotti e prassi professionali 646.263 0
The analysis of the operating losses carried out on the data taken in the period between 1st
January 2004 and 31st December 2009 discloses a concentration of the phenomenon in the
“External fraud” event types (70% of the frequencies and 34% of the total impacts revealed)
and “Execution, delivery and handing of the processes” (10% of the frequencies and 31% of the total impacts revealed).
For the same analysis period, the banking system data (DIPO-ABI Association) showed a
higher concentration of operating losses corresponding to the "Customer products and
professional practices (21% of the frequencies and 29% of the total revealed) and "External
fraud (42% of the frequencies and 26% of the total impacts revealed) event types.
The UBI Banca Group contributes overall for 6.90% of the frequencies and 5.53% of the
impacts of the DIPO-ABI Association Database.
224
Capital requirement
In 2008 the Bank adopted the Standardized method (TSA) for the calculation of the capital requirement on Operating Risks (see Bank of Italy Circular No. 263 dated 27th December
2006 relating to the new prudent supervisory provisions for Banks). The capital requirement determined by the Standardized component (TSA) derives from the
multiplication of the intermediation margin (so-called “significant indicator” equating to item
120 in the income statement of the financial statements as per the Bank of Italy Circular
No. 262 dated 22nd December 2005), divided up by regulatory business line, for the specific beta factors defined by supervisory provisions (see Bank of Italy Circular No. 263 dated 27th
December 2006 and No. 155 dated 18th December 1991). The significant indicator by regulatory business line has been extrapolated from the management control figures,
applying the classification criteria defined by internal legislation and in observance of
regulatory provisions.
The capital requirements as at 31st December 2009, calculated as the average of the
requisites relating to the last three years, amounts to 87.8 million euro. It is 50% absorbed by the Retail banking business line, 28% by Commercial banking, 11% by Trading & Sales
and 9% by Retail brokerage. The average absorption factor with respect to the significant
indicator comes to 13%.
The capital requirements as at 31st December 2009 discloses a reduction of 6 million euro (-
6%) when compared with 31st December 2008, mainly due to the drop in the intermediation
margin.
225
Part F – Information on Shareholders’ Equity
Section 1 Shareholders’ equity A - Qualitative information
Shareholders’ equity comprises the share capital and reserves, set up under any basis. The
aggregate (see details in the tables below) covers all the business risks commented on earlier. The policies and processes adopted for the management of the equity concern all the
choices aimed at defining the dimension and the optimum combination between the various
capitalization instruments, so that the capital endowment is in keeping with the Bank’s
propensity to risk, in observance of the supervisory requirements.
In accordance with the supervisory provisions in force, banks belonging to banking groups can benefit from a reduction of 25% of the total capital requirement – applicable on an
individual basis – provided that the overall consolidated requirement is observed.
Since the latter condition is met, the Bank applies the afore-mentioned reduction. Belonging
to the UBI Group is a valid and constant guarantee that the capital requirements are always
complied with and, if need be, share capital increases may be carried out.
B - Quantitative information
B 1 Shareholders’ equity: composition
Vo c i / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
1. Capita le 593.300 593.300
2. So vrapprezzi di emis s io ne 120.000 120.000
3. Ris erve 423.226 264.785
- di utili 423.226 264.785
a) lega le 84.074 73.241
b) s ta tutaria - -
c ) azio ni pro prie - -
d) a ltre 339.152 191.544
- a ltre - -
4. S trumenti di capita le - -
5. (Azio ni pro prie ) - -
6. Ris erve da va lutazio ne 21.206 17.935
- Attività finanziarie dis po nibili per la vendita 9.779 6.953
- Attività materia li - -
- Attività immateria li - -
- Co pertura di inves timenti es te ri - -
- Co pertura de i flus s i finanziari - -
- Differenze cambio - -
- Attività no n co rrenti in via di dis mis s io ne - -
- Utili (perdite ) a ttuaria li re la tivi a piani previdenzia li a benefic i definiti (1.353) (1.798)
- Quo te de lle ris erve da va lutazio ne re la tive a partec ipa te va luta te a l P N - -
- Leggi s pec ia li di riva lutazio ne 12.780 12.780
7. Utile (perdita ) d'es erc izio 128.973 216.653
To ta le 1.2 8 6 .7 0 5 1.2 12 .6 7 3
226
B 2 Valuation reserves of available-for-sale financial assets: composition
R is e rv a po s it iv a R is e rv a ne g a t iv a R is e rv a po s it iv a R is e rv a ne g a t iv a
1.Tito li di debito - - - -
2. Tito li di capita le 9.471 - 6.657 -
3. Quo te di O.I.C.R. 308 - 296 -
4. F inanziamenti - - - -
To ta le 9 .7 7 9 - 6 .9 5 3 -
A tt iv ità / Va lo ri 3 1/ 12 / 2 0 0 9 3 1/ 12 / 2 0 0 8
B 3 Valuation reserves of available-for-sale financial assets: annual changes
1. Es is te nze in iz ia li - 6 .6 5 7 2 9 6 -
2 . Va ria z io ni po s it iv e - 2 .9 4 3 12 -
2.1 Incrementi di fa ir va lue - 2.943 12 -
2.2 Rigiro a co nto eco no mico di ris erve negative - - - -
da de terio ramento - - - -
da rea lizzo - - - -
2.3 Altre variazio ni - - - -
3 . Va ria z io ni ne g a t iv e - (13 0 ) - -
3.1 Riduzio ni di fa ir va lue - (130) - -
3.2 Rettifiche di de terio ramento - - - -
3.3 Rigiro a co nto eco no mico da ris erve po s itive : da rea lizzo - - - -
3.4 Altre variazio ni - - - -
4 . R im a ne nze f ina li - 9 .4 7 0 3 0 8 -
F ina nzia m e nt iTito li d i de bito Tito li d i c a pita le Quo te di O.I.C .R .
227
Section 2 Supervisory capital and Ratios
2.1 SUPERVISORY CAPITAL
A - Qualitative information
Supervisory capital was determined according to current legislation, as defined by the
provisions of the Supervisory Authority.
1. Tier 1 capital
Tier 1 capital is made up of share capital, retained earnings less intangible assets; there are
no “innovative capital instruments”.
2. Tier 2 capital
Tier 2 capital is made up of valuation reserves and subordinated loans.
3. Tier 3 capital
There is no Tier 3 capital.
B - Quantitative information
A. Patrimonio di base prima dell 'applicazione dei filtri prudenziali 1.211.027 1.116.793
B Filtri prudenziali del patrimonio di base: - -
- filtri prudenziali IAS/IFRS positivi (+) - -
- filtri prudenziali IAS/IFRS negativi (-) - -
C. Patrimonio di base al lordo degli elementi da dedurre (A+B) 1.211.027 1.116.793
D. Elementi da dedurre dal patrimonio di base - -
E. Totale patrimonio di base (TIER 1) (C-D) 1.211.027 1.116.793
F. Patrimonio supplementare prima dell 'applicazione dei filtri prudenziali 102.608 158.280
G. Filtri prudenziali del patrimonio supplementare (91) (149)
- filtri prudenziali IAS/IFRS positivi (+) - -
- filtri prudenziali IAS/IFRS negativi (-) (91) (149)
H. Patrimonio supplementare al lordo degli elementi da dedurre (F+G) 102.517 158.131
I. Elementi da dedurre dal patrimonio supplementare - -
L. Totale patrimonio supplementare (Tier 2) (H-I) 102.517 158.131
M. Elementi da dedurre dal totale patrimonio di base e supplementare - -
N. Patrimonio di vigilanza (E+L-M) 1.313.545 1.274.924
O. Patrimonio di terzo livello (TIER 3) - -
P. Patrimonio di vigilanza incluso TIER 3 (N+O) 1.313.545 1.274.924
Totale
31/12/2009
Totale
31/12/2008
228
2.2 Capital adequacy A. Qualitative information
The protection of the Bank’s capital adequacy is concentrated with the Parent Company UBI
Banca. The latter, carrying out policy and co-ordination activities for the Group companies –
assessed the capitalization requirements, both in a strict sense and via the issue of subordinated liabilities or hybrid instruments of the subsidiaries. The Parent Company’s
Senior Management formulated the intervention proposals to the Corporate Bodies who
decided accordingly. The proposal, once approved by the Parent Company’s bodies, is then
submitted to the competent bodies of the subsidiary companies. On the basis of the Group’s
growth plan, the associated risk profiles and the observance of the supervisory capital
restrictions, the Parent Company analyzes and co-ordinates the capitalization requirements, presenting itself as the privileged counterpart when accessing capital markets, with an
integrated view to the optimum scaling of the capital.
The approach adopted to evaluate the capital adequacy is based on two assumptions:
adequately sustain the Bank’s operations, also in relation to the defined strategic plans;
comply as and when necessary with the instructions of the Supervisory Authority as concerns capital requirement levels.
To this end, the trend of both the Capital Ratio [TIER 1] and the Total Capital Ratio are
constantly monitored. The growth strategy of lending is outlined taking account of the
remuneration and risk levels vis-à-vis the related capital requirement.
B. Quantitative information
To ta le
3 1/ 12 / 2 0 0 9
To ta le
3 1/ 12 / 2 0 0 8
To ta le
3 1/ 12 / 2 0 0 9
To ta le
3 1/ 12 / 2 0 0 8
A . A TTIVITA ' D I R IS C HIO
A.1 Ris chio di c redito e di co ntro parte - - - -
1. Meto do lo gia s tandardizza ta 35.654.453 34.483.433 10.320.529 10.820.218
2. Meto do lo gia bas a ta s ui ra ting interni - - - -
2.1 Bas e - - - -
2.2 Avanzate - - - -
3. Carto larizzazio ni - - - -
B . R EQUIS ITI P A TR IM ON IA LI D I VIGILA N ZA - - - -
B .1 Ris chio di c redito e di co ntro parte - - 825.642 865.617
B .2 Ris chio di merca to - - 6.524 2.693
1. Meto do lo gia s tandard - - 6.524 2.693
2. Mo delli inte rni - - - -
3. Ris chio di co ncentrazio ne - - - -
B .3 Ris chio o pera tivo - - 87.817 93.819
1. Meto do bas e - - - -
2. Meto do s tandardizza to - - 87.817 93.819
3. Meto do avanzato - - - -
B .4 Altri requis iti prudenzia li - - - -
B .5 Altri e lementi di ca lco lo (*) - - (229.996) (240.532)
B.6 To ta le requis iti prudenzia li - - 689.987 721.597
C . A TTIVITA ' D I R IS C HIO E C OEF F IC IEN TI D I VIGILA N ZA - -
C .1 Attività di ris chio po ndera te - - 11.499.788 12.026.620
C .2 P a trimo nio di bas e / a ttività di ris chio po ndera te (Tier 1 capita l ra tio ) - - 10,53% 9,29%
C.3 P atrimo nio di vigilanza inc lus o TIER 3 / Attività di ris chio po ndera te (To ta l capita l ra tio ) - - 11,42% 10,60%
Im po rt i po nde ra t i / re quis it i Im po rt i no n po nde ra t i
C a te g o rie / Va lo ri
229
(*) When calculating the total prudent requirements, the banks belonging to Italian banking
groups also take into consideration the 25% reduction in requirements indicated in point
“B.5 – Other calculation elements”.
The ratios indicated were prepared based on the new legislation included in the 2nd update
of Circular 263 of 27th December 2006 and the 12th update of Circular 155 of 5th February
2008 (Basel II), issued by Bank of Italy. Standardised methods were applied.
230
Part G – Business Combination Transactions Regarding Businesses
or Business Units
Section 2 - Transactions after the end of the financial year
With regard to the Territorial Optimization transaction, which took place in January 2010,
reference should be made to the matters fully illustrated in the “Directors’ Report – Other information” and in “Part A – Accounting policies – Section 3 – Events occurring after the
balance sheet date”.
231
Part H –Related Party Transactions 1. Information on the remuneration of senior managers with strategic responsibility
Remuneration of Senior Managers (1)
3 1/ 12 / 2 0 0 9
Benefic i a breve termine per i dipendenti (2) 3.451
Benefic i s ucces s ivi a lla ces s azio ne del rappo rto di lavo ro (3) 568
Indennità ces s azio ne del rappo rto di lavo ro 4
(1) “Senior Managers” refers to “managers with strategic responsibility belonging to the entity including its directors” (2) For example: wages, salaries, and related social contributions, payment of substitute indemnity for holidays and sick leave, and other similar benefits. The amount includes fixed and variable compensation to Directors relating to
the cost for their work and the company's social security payments for employees. (3) For example: pensions, other social security benefits, life and health insurance after the employment relationship ends.
As regards compensation paid during 2009 to Directors with strategic responsibility,
including the General Manager, in addition to the fixed retribution component defined
through individual contracts, there is a significant variable component related to achieving
the Group's strategic objectives. The full fixed remuneration package includes not only the usual monetary compensation,
but also an additional social security fund, health policy, accident policy and the use of a
company car. There are no medium/long term incentive plans.
Specifically, the following remuneration institutes are noted (please refer to the appropriate accounting principle for their definition):
a) Short-term benefits
Short-term benefits include wages and salaries, social contributions, substitute
indemnity for holidays not taken, sick leave, paid leave, other medical assistance
benefits and housing. Short-term benefits also include the variable compensation related to the qualitative
and quantitative objectives which are established annually in accordance with the
Business Plan. This component is, on average, 26.8% of the total remuneration that
the company bears in reference to the perimeter under consideration.
b) Benefits following the employment relationship
Benefits following the employment relationship include social security plans, pension
plans, insurance as well as staff severance indemnity.
For the senior managers in question, complementary life insurance and social
security insurance plans are in place with time lines that extend beyond the end of
the employment relationship.
2. Information on related party transactions
In compliance with the provisions in CONSOB Communications No. 97001574 of 20th
February 1997, 98015375 of 27th February 1998, 1025564 of 6th April 2001, 14990 of 14th
April 2005, DEM/6064293 of 28th July 2006 and 15519 of 28th July 2006, all transactions
by the Parent Company with its related parties were carried out with substantial and procedural correctness, in similar conditions to those applied to transactions carried out
with independent third parties.
232
Following the repeal of part of the aforementioned CONSOB Communication dated 14th April 2005, for the third section of Article 71 bis of CONSOB Regulation No. 11971/1999,
for which the prior Communication No. 2064231 of 30th September 2002 defined the notion
of related parties, since said definition no longer applies, as per International Accounting
Standard (IAS) N. 24, a related party to the issuer can be:
a) one that directly or indirectly controls, is controlled by, or is subject to common
control with the issuer; or the issuer holds an equity investment allowing it to
exercise significant influence or joint control;
b) a company related to the issuer (based on the definition in IAS 28 – Equity
investments in associated companies); c) a joint venture in which the issuer is an investor;
d) a senior manager with strategic responsibility for the issuer or its parent company,
intended as one who has the power and responsibility for planning, managing and
controlling activities for the issuer, including directors;
e) a close family member of one of the parties indicated in letters a) or d) (close family
members means those who could potentially influence the person related to the issuers, or be influenced, in their relations with the issuer);
f) a subsidiary, jointly controlled entity or is subject to significant influence by one of
the parties indicated in letters d) or e), or those parties hold, directly or indirectly, a
considerable number of voting rights in said entity;
g) a pension fund for employees of the issuer or of any entity related to it.
As regards the effect relating to the Parent Company’s management and coordination activities, as provided in Article 2497 bis of the Italian Civil Code, the Parent Company and
its subsidiary provide the various Group companies with services, governed by special
intragroup contracts drafted based on criteria of congruity, transparency and homogeneity,
consistent with the adopted organisational model that provides for the centralisation of strategic and management activities with UBI Banca and the centralisation of technical-
operational activities with UBI Sistemi e Servizi S.C.p.A. The agreed payments for services in
the contracts were determined at market conditions or, when there were no suitable
reference parameters on the market for the particular characteristics of the services
rendered, on the incurred cost basis.
The principal intragroup contracts in effect at year end include the centralisation of the governance and business activities within the Parent Company and those involving the
Parent Company and the primary Group banks in the implementation of the national tax
consolidation (Articles 117 to 129 of the Presidential Decree No. 917/1986 of the Income
Tax Consolidation Act) completed by the Parent Company. There are also the intragroup
contracts for centralising the support activities for all of the main UBI Group company with UBI Sistemi e Servizi.
In reference to Parent Company transactions carried out with all related parties, it should be
noted that there were no atypical or unusual transactions, nor were there any atypical or
unusual transactions with parties other than related parties.
Atypical or unusual transactions - as indicated by CONSOB Communication No. 98015375 of 27th February 1998 and No. 1025564 of 6th April 2001 – are those transactions that due
to the significance/relevance, nature of the counterparty, subject of the transaction (also in
relation to ordinary management), transfer price determination methodology and timing of
transaction (proximity to period closing) may give rise to doubts regarding: the
correctness/completeness of the financial statement information, conflicts of interest, protection of the company assets, or protection of minority shareholders.
Further information regarding transactions with related parties are reported in the following
tables.
233
Relationships with Group companies and companies under dominant influence
A tt iv ià / pa s s iv ità
f ina nzia rie de te nute
pe r la ne g o ziz io ne
A tt iv ità
f ina nzia rie
dis po nibili pe r
la v e ndita
A tt iv ità
f ina nzia rie
de te nute s ino
a lla s c a de nza
C re dit i v e rs o
ba nc he
C re dit i v e rs o
c lie nte la
D e riv a t i d i
c o pe rtura
D e bit i v e rs o
ba nc he
D e bit i v e rs o
c lie nte la
Tito li in
c irc o la z io ne
Ga ra nzie
rila s c ia te
C o ntro lla nte - - - 7.166.080 - - 1.291.974 - 1.487.230 -
C o ntro lla te - - - - - - - - - -
C o lle g a te - - - 71.543 186 - 382 20.771 - 5.913
J o int v e nture - - - - - - - - - -
C o ntro lla te / C o lle g a te da / a C a po g ruppo - - - 31.250 23.283 - 1.061 3.026.536 - 2.094
D irig e nt i - - - - 1.161 - - 24.442 1.260 -
A ltre pa rt i c o rre la te - - - - 166.299 - - 44.108 747 -
P a rte c o rre la ta
3 1/ 12 / 2 0 0 9
Relationships indicated in the line “Associated companies” are with UBI.S., Banca di Valle Camonica and UBI Banca International, while the
line “Subsidiaries/associated companies of the Parent Company” include other fully consolidated Group companies.
Inte re s s i a t t iv i e
pro v e nt i a s s im ila t i
D iv ide ndi e
pro v e nt i s im ili
C o m m is s io ni
a t t iv e
A ltri pro v e nt i
d i g e s t io ne
Inte re s s i pa s s iv i
e o ne ri
a s s im ila t i
S pe s e
a m m inis tra t iv e
C o m m is s io ni
pa s s iv e
A ltri o ne ri d i
g e s t io ne
C o ntro lla nte 113.893 - 8.301 74 (55.872) (16.275) (2.095) (89)
C o ntro lla te - - - - - - - -
C o lle g a te 66 1.611 13 307 (979) (36.397) - -
J o int v e nture - - - - - - - -
C o ntro lla te / C o lle g a te da / a C a po g ruppo 1.886 - 39.506 716 (38.455) (1.715) (212) (18)
P a rte c o rre la ta
3 1/ 12 / 2 0 0 9
The line “Subsidiaries/associated companies of the Parent Company” includes non-investee Group companies, however included in the line-
by-line consolidation perimeter.
234
Inte re s s i ne tt iC o m m is s io ni
ne tte
P ro v e nt i e
o ne ri da
o pe ra zio ni
f ina nzia ire
A ltri pro v e nt i
e d o ne ri di
g e s t io ne
S pe s e
a m m inis tra t iv e
D irig e nt i (260) 116 1 3 -
A ltre pa rt i c o rre la te 4.011 19.199 26 1.198 (475)
P a rte c o rre la ta
3 1/ 12 / 2 0 0 9
A tt iv ià / pa s s iv ità
f ina nzia rie de te nute
pe r la ne g o ziz io ne
A tt iv ità
f ina nzia rie
dis po nibili pe r
la v e ndita
A tt iv ità
f ina nzia rie
de te nute s ino
a lla s c a de nza
C re dit i v e rs o
ba nc he
C re dit i v e rs o
c lie nte la
D e riv a t i di
c o pe rtura
D e bit i v e rs o
ba nc he
D e bit i v e rs o
c lie nte la
Tito li in
c irc o la zio ne
Ga ra nzie
rila s c ia te
C o n pa rt i c o rre la te - - - 7.268.873 190.929 - 1.293.417 3.115.858 1.489.237 8.007
To ta le 33.121 26.339 - 7.442.072 14.178.741 23.700 1.370.705 8.870.849 10.300.310 1.055.987
Inc ide nza - - - 97,67% 1,35% - 94,36% 35,12% 14,46% 0,76%
P a rte c o rre la ta
3 1/ 12 / 2 0 0 9
Inte re s s i ne tt i D iv ide ndiC o m m is s io ni
ne tte
P ro v e nt i e
o ne ri da
o pe ra zio ni
f ina nzia ire
A ltri pro v e nt i e d
o ne ri di g e s t io ne
S pe s e
a m m inis tra t iv e
C o n pa rt i c o rre la te 24.290 1.611 64.827 27 2.192 (54.861)
To ta le 368.773 1.699 184.745 10.204 43.269 (323.123)
Inc ide nza 6,59% 94,83% 35,09% 0,26% 5,06% 16,98%
P a rte c o rre la ta
3 1/ 12 / 2 0 0 9
235
Part I – Share-based Payment Agreements
These types of transactions did not occur within the Bank.
236
Part L – Segment Reporting
The Bank is not obliged to prepare this section as segment reporting is provided as part of
the Consolidated Financial Statements of the Parent Company UBI Banca.
237
Attachments to the
Financial Statements
238
Summary Tables of the Key Data Relating to the Parent Company UBI Banca S.c.p.A. (pursuant to Article 2497 bis of the Italian Civil Code)
BALANCE SHEET (in thousands of euro)
31/12/2008
ATTIVITA'
Cassa e disponibilità liquide 246.459
Attività finanziarie detenute per la negoziazione 2.424.111
Attività finanziarie valutate al fair value 460.157
Attività finanziarie disponibili per la vendita 2.767.513
Attività finanziarie detenute fino alla scadenza 1.620.567
Crediti verso banche 29.298.338
Crediti verso clientela 10.446.768
Derivati di copertura 72.787
Partecipazioni 11.909.207
Immobilizzazioni 1.273.974
Attività fiscali 593.404
Attività non correnti e gruppi di attività in via di dismissione 13.931
Altre attività 856.101
TOTALE DELL'ATTIVO 61.983.317
31/12/2008
PASSIVITA'
Debiti verso clientela e titoli in circolazione 19.942.079
Debiti verso banche 28.732.514
Passività finanziarie di negoziazione 1.222.187
Derivati di copertura 74.820
Passività fiscali 411.849
Altre passività 1.186.374
Trattamento di fine rapporto del personale 44.483
Fondi per rischi e oneri 10.329
Patrimonio netto 10.334.796
Utile d'esercizio 23.886
TOTALE DEL PASSIVO 61.983.317
239
INCOME STATEMENT (in thousands of euro)
31/12/2008
Margine di interesse (250.789)
Commissioni nette 13.174
Margine di intermediazione 473.897
Risultato netto della gestione finanziaria (26.580)
Costi operativi (248.430)
Utile della operatività corrente al lordo delle imposte (257.468)
Imposte sul reddito 281.354
Utile d'esercizio 23.886
240
Disclosure of compensation for auditing of accounts and services other than auditing as per CONSOB Issuers’ Regulations Article 149 duodecies. In accordance with Article 149 duodecies of the CONSOB Issuers’ Regulations, the tables
that follow contain information regarding the compensation paid to Reconta Ernst & Young
S.p.A. auditing firm, and to companies belonging to its network, for the following services:
1) Auditing services that include:
auditing the annual accounts, in order to issue a professional opinion; auditing of the interim accounts.
2) Authentication services that include duties for which the auditors evaluate one specific element, whose measurement is performed by another party who is
responsible, with appropriate criteria, so that the auditor may express an opinion
that provides the recipient with a degree of reliability for said specific element.
3) Tax consultancy services.
4) Other services of a residual nature. The compensation shown in the table below, for 2009, is that agreed upon contractually,
including any index-linking (but does not include out-of-pocket expenses, any supervisory
contribution or VAT). Based on the regulations mentioned, the figures do not include compensation to any
secondary auditors or parties in the respective networks.
Type of service Party that provided the
service Recipient of services
Compensation (euro/thousand
)
Accounting audit Reconta Ernst & Young S.p.A Banco di Brescia S.p.A 365
Authentication services Reconta Ernst & Young S.p.A Banco di Brescia S.p.A 40
Tax consultancy services
Other services
Total 405
241
List of properties Investimenti
Rivalutazioni di
legge
Rivalutazioni di
fusioni
Rivalutazioni
IASValori lordi
Fondi
Ammortamenti
Altre
MovimentazioniVal. in bilancio
1 MILANO VIA SILVIO PELLICO 10/12 8.104.438,13 49.257.789,31 0,00 0,00 57.362.227,44 -10.879.007,43 0,00 46.483.220,01
2 BRESCIA VIA TRIESTE 2/4/6/8/9 1.487.698,16 31.981.509,95 0,00 0,00 33.469.208,11 -6.501.143,63 0,00 26.968.064,48
3 BRESCIA C.SO MARTIRI-C.DA S.CROCE-COND.LEONESSA 2.298.055,24 23.333.057,46 238.904,03 0,00 25.870.016,73 -8.104.243,78 242.639,16 18.008.412,11
4 MILANO VIA CARADOSSO, 16 5.721.993,91 13.444.695,00 0,00 0,00 19.166.688,91 -4.503.583,61 0,00 14.663.105,30
5 ROMA VIA FERDINANDO DI SAVOIA 8 5.591.772,01 3.540.310,12 0,00 0,00 9.132.082,13 -2.265.332,18 0,00 6.866.749,95
6 BRESCIA VIA S.MARTINO 2-ANG.C.SO ZANARDELLI 547.492,81 7.328.786,80 0,00 0,00 7.876.279,61 -1.518.464,34 0,00 6.357.815,27
7 BRESCIA VIA CALATAFIMI,67ANG. VIA TARTAGLIA, 22 2.980.256,92 4.057.467,91 0,00 0,00 7.037.724,83 -3.146.587,20 163.519,52 4.054.657,15
8 SALO' P.ZA VITT.EMANUELE 20 644.975,26 3.804.619,72 0,00 0,00 4.449.594,98 -1.184.406,52 0,00 3.265.188,46
9 TOLMEZZO PIAZZA XX SETTEMBRE 2 582.181,12 1.088.244,17 236.021,69 0,00 1.906.446,98 -743.804,05 0,00 1.162.642,93
10 ISEO LARGO DANTE ALIGHIERI 10 700.527,77 2.665.387,79 0,00 0,00 3.365.915,56 -915.273,21 0,00 2.450.642,35
11 PADOVA VIA TOMASEO, ANG.VLE CODALUNGA 8/BIS 1.180.793,48 1.365.477,94 0,00 0,00 2.546.271,42 -292.271,48 0,00 2.253.999,94
12 BORGOSA TOLLO-VIA IV NOVEMBRE 140 1.046.151,53 1.523.328,45 0,00 0,00 2.569.479,98 -875.891,88 0,00 1.693.588,10
13 VESTONE VIA PERLASCA,5 17.341,65 2.149.940,04 0,00 0,00 2.167.281,69 -432.281,59 0,00 1.735.000,10
14 DESENZANO VIA MARCONI, 97 479.788,46 2.030.526,00 0,00 0,00 2.510.314,46 -727.828,72 0,00 1.782.485,74
15 CHIARI PIAZZA ZANARDELLI 7 582.172,47 2.077.402,27 0,00 0,00 2.659.574,74 -855.519,48 0,00 1.804.055,26
16 BRESCIA VIA INDIPENDENZA 39 743.971,07 1.966.431,25 0,00 0,00 2.710.402,32 -1.174.038,70 0,00 1.536.363,62
17 VEROLANUOVA P.ZA LIBERTA' 2 412.112,11 1.813.240,05 0,00 0,00 2.225.352,16 -670.059,70 0,00 1.555.292,46
18 PALAZZO LO S/O VIA XX SETTEMBRE 22 622.081,92 1.717.463,91 0,00 0,00 2.339.545,83 -993.545,83 0,00 1.346.000,00
19 BRESCIA VIA ORZINUOVI 9/11 903.892,59 1.771.850,24 0,00 0,00 2.675.742,83 -1.408.342,85 0,00 1.267.399,98
20 CONCESIO VIA EUROPA, 203 705.174,24 1.240.606,49 0,00 0,00 1.945.780,73 -653.692,64 0,00 1.292.088,09
21 VITERBO CORSO ITALIA -VIA DELLA SAPIENZA 164.913,74 1.817.019,71 0,00 0,00 1.981.933,45 -751.024,34 0,00 1.230.909,11
22 PONTEVICO VIA MAZZINI 15 203.681,04 1.389.114,66 0,00 0,00 1.592.795,70 -364.195,73 0,00 1.228.599,97
23 MADERNO VIA MONTANA,1 -VIA AQUILANI 4 62,24 835.767,13 0,00 0,00 835.829,37 -215.126,92 0,00 620.702,45
24 LIMONE- VIA COMBONI, 24 170.842,50 1.218.333,83 0,00 0,00 1.389.176,33 -220.962,02 0,00 1.168.214,31
25 GUSSAGO VIA IV NOVEMBRE 112/A 80.050,82 1.460.840,36 0,00 0,00 1.540.891,18 -454.233,96 0,00 1.086.657,22
26 CASTELMELLA V.LE CADUTI D/LAVORO 56/A 966.187,56 1.244.044,96 0,00 0,00 2.210.232,52 -1.181.518,21 0,00 1.028.714,31
27 MANERBIO Via XX Settembre 21 46.713,38 1.240.608,29 0,00 0,00 1.287.321,67 -250.009,19 0,00 1.037.312,48
28 BOTTICINO VIA VALVERDE 1 414.198,43 807.244,96 0,00 0,00 1.221.443,39 -652.785,21 0,00 568.658,18
29 RONCADELLE VIA M.LIBERTA' 119/A 218.048,11 1.359.307,97 0,00 0,00 1.577.356,08 -566.168,54 0,00 1.011.187,54
30 FLERO VIA XXV APRILE 110 331.152,17 1.211.389,92 0,00 0,00 1.542.542,09 -565.167,09 0,00 977.375,00
31 LONATO VIA MARCONI 453.195,99 1.062.616,56 0,00 0,00 1.515.812,55 -607.898,29 0,00 907.914,26
32 CIVITA CASTELLANA VIA DELLA REPUBBLICA SN 531.698,51 1.035.082,75 0,00 0,00 1.566.781,26 -926.784,76 0,00 639.996,50
33 CREMONA VIA PO 33/35 873.178,50 409.165,44 0,00 0,00 1.282.343,94 -386.343,94 0,00 896.000,00
34 PISOGNE P.ZA UMBERTO I,11 54.130,84 1.018.572,89 0,00 0,00 1.072.703,73 -211.501,10 0,00 861.202,63
35 MANTOVA V.LE RISORGIMENTO, 33 1.046.935,24 241.650,94 0,00 0,00 1.288.586,18 -456.986,11 0,00 831.600,07
36 MONIGA P.ZA SAN MARTINO 289.215,86 1.063.263,22 0,00 0,00 1.352.479,08 -534.421,86 0,00 818.057,22
37 NAVE P.ZA S.M.AUSILIATRICE,6 297.840,70 772.568,81 0,00 0,00 1.070.409,51 -346.839,86 0,00 723.569,65
38 LOGRATO P.ZA ROMA,11 767.919,77 804.116,63 0,00 0,00 1.572.036,40 -785.379,25 0,00 786.657,15
39 ROVATO C.SO BONOMELLI 52/54 373.475,07 954.031,86 0,00 0,00 1.327.506,93 -596.506,93 0,00 731.000,00
40 REZZATO VIA IV NOVEMBRE 98 19.481,03 996.619,69 0,00 0,00 1.016.100,72 -297.850,68 0,00 718.250,04
41 CALCINATO VIA MARCONI, 51 171.980,15 940.775,33 0,00 0,00 1.112.755,48 -439.880,46 0,00 672.875,02
42 CASTREZZATO PIAZZA ZAMMARCHI 7 57.198,99 771.916,47 0,00 0,00 829.115,46 -153.915,45 0,00 675.200,01
43 CLUSANE VIA RISORGIMENTO 51/C 380.938,61 582.770,95 0,00 0,00 963.709,56 -322.897,05 0,00 640.812,51
44 CASTENEDOLO P.ZA MARTIRI D/LIBERTA'4 14.460,79 858.730,63 0,00 0,00 873.191,42 -253.905,69 0,00 619.285,73
45 REMEDELLO VIA ROMA 60 372.520,36 831.868,87 0,00 0,00 1.204.389,23 -602.189,26 0,00 602.199,97
46 BAGNOLO M. VIA XXVI APRILE, 56/A 17.559,54 842.764,18 0,00 0,00 860.323,72 -270.448,75 0,00 589.874,97
47 TOSCOLANO VIA STATALE TOSCOLANO, 114/A 247.796,02 706.140,46 0,00 0,00 953.936,48 -363.874,00 0,00 590.062,48
48 GOTTOLENGO P.ZZA 20 SETTEMBRE 17 216.995,17 565.101,27 0,00 0,00 782.096,44 -266.896,45 0,00 515.199,99
49 CAPRIANO VIA MORARI, 26 51.645,69 648.312,78 0,00 0,00 699.958,47 -188.770,90 0,00 511.187,57
50 ACQUAFREDDA VIA DELLA REPUBBLICA, 30 185.408,03 639.542,33 0,00 0,00 824.950,36 -340.550,36 0 484400
Ubicazione
242
InvestimentiRivalutazioni di
legge
Rivalutazioni di
fusioni
Rivalutazioni
IASValori lordi
Fondi
Ammortamenti
Altre
MovimentazioniVal. in bilancio
51 ODOLO VIA PRAES 13/BIS 561.073,35 49.020,36 0,00 0,00 610.093,71 -213.100,68 0,00 396.993,03
52 CALVISANO VIA DANTE,1 23.960,68 577.638,41 0,00 0,00 601.599,09 -163.359,11 0,00 438.239,98
53 PADERNO F.C. VIA ROMA, 32 189.281,46 577.937,41 0,00 0,00 767.218,87 -349.333,13 0,00 417.885,74
54 TIGNALE VIA APOLLO 11 162.014,82 434.117,11 0,00 0,00 596.131,93 -195.589,01 0,00 400.542,92
55 BOVEGNO VIA CIRCONVALLAZIONE 5 210.604,51 434.870,25 0,00 0,00 645.474,76 -261.160,44 0,00 384.314,32
56 DELLO P.ZA ROMA 36 3.289,89 342.547,63 0,00 0,00 345.837,52 -52.776,81 0,00 293.060,71
57 BAGOLINO VIA S.GIORGIO 66 116.084,44 239.519,07 0,00 0,00 355.603,51 -107.022,45 0,00 248.581,06
58 QUINZANO VIA CAVOUR 29/31 30,99 443.868,66 0,00 0,00 443.899,65 -85.613,96 0,00 358.285,69
59 ISORELLA VIA A.ZANABONI, 2 0,00 431.190,01 0,00 0,00 431.190,01 -108.190,04 0,00 322.999,97
60 MIRA VIA NAZIONALE 193 431.109,97 0,00 0,00 0,00 431.109,97 -155.824,28 0,00 275.285,69
61 PRALBOINO VIA M.D.LIBERTA' 52 361,52 330.676,25 0,00 0,00 331.037,77 -90.237,77 0,00 240.800,00
62 BRENO VIA MAZZINI, 72 25.564,62 1.811.953,50 0,00 0,00 1.837.518,12 -553.518,09 0,00 1.284.000,03
63 COLOGNO M. V.LE LOMBARDIA, 52 2.153.694,31 1.010.201,23 0,00 0,00 3.163.895,54 -1.288.076,59 0,00 1.875.818,95
64 DESENZANO VIA MARCONI 10 1.124.390,07 1.652.917,39 0,00 0,00 2.777.307,46 -724.957,43 0,00 2.052.350,03
65 DARFO VIA ROMA 2 24.276,42 911.153,95 0,00 0,00 935.430,37 -415.047,56 0,00 520.382,81
66 ORZINUOVI P.ZA V.EMANUELE 18 702.226,44 1.123.948,72 0,00 0,00 1.826.175,16 -443.101,10 0,00 1.383.074,06
67 ROMA VIA SABATINI 165 2.944.303,57 200.045,08 0,00 0,00 3.144.348,65 -1.438.321,67 0,00 1.706.026,98
68 TREZZANO ROSA PIAZZA SAN GOTTARDO 3 777.564,64 14.669,60 0,00 0,00 792.234,24 -298.234,24 0,00 494.000,00
69 VOBARNO VIA GARIBALDI, 17 10.561,55 332.568,46 0,00 0,00 343.130,01 -123.129,99 0,00 220.000,02
70 MONTALTO DI CASTRO FRAZ.PESCIA 10.597,65 182.718,52 0,00 0,00 193.316,17 -75.191,19 0,00 118.124,98
71 BERGAMO VIA D.PALAZZOLO,89 1.452.000,00 0,00 0,00 0,00 1.452.000,00 -156.543,75 0,00 1.295.456,25
72 AMPEZZO PIAZZALE AI CADUTI 3 30.274,36 155.281,04 95.810,03 0,00 281.365,43 -140.132,28 0,00 141.233,15
73 IDRO(TERRENO) 48.237,07 105.762,93 0,00 0,00 154.000,00 0,00 0,00 154.000,00
74 LUMEZZANE TERRENO VIA MONTINI,251 15.000,00 0,00 0,00 0,00 15.000,00 0,00 0,00 15.000,00
75 PRATO CARNICO 4.000,00 0,00 0,00 0,00 4.000,00 0,00 0,00 4.000,00
76 MILANO Via Bertolazzi, 20 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
77 TORINO C.SO RE UMBERTO 1,47-UFF.1'P.-BOX 1'INTER 2.369.925,48 0,00 0,00 0,00 2.369.925,48 -259.343,64 0,00 2.110.581,84
78 MILANO PIAZZA BORROMEO 1/3 1.859.160,47 13.180.480,36 0,00 0,00 15.039.640,83 -3.893.470,49 0,00 11.146.170,34
79 TREZZO S/A VIA BAZZONI 722.568,77 59.200,74 0,00 0,00 781.769,51 -294.342,44 0,00 487.427,07
80 BRESCIA VIA LECCO 1 519.757,50 3.400.683,21 0,00 0,00 3.920.440,71 -2.010.031,13 0,00 1.910.409,58
81 BRESCIA VIA BETTOLE,1 232.767,12 1.337.770,53 0,00 0,00 1.570.537,65 -696.441,47 0,00 874.096,18
82 LUMEZZANE VIA DE GASPERI,91 233.660,64 1.173.446,90 0,00 0,00 1.407.107,54 -461.343,40 0,00 945.764,14
83 SENIGA VIA ROMA 42 85.199,72 387.760,60 0,00 0,00 472.960,32 -185.720,00 0,00 287.240,32
84 SUMIRAGO VIA BRIOSCHI 2 173.036,32 109.544,46 0,00 0,00 282.580,78 -94.666,82 0,00 187.913,96
85 ROMA VIA VENETO 108 593.184,87 6.318.382,17 0,00 0,00 6.911.567,04 -2.464.837,25 0,00 4.446.729,79
86 BERGAMO VIA PALMA IL VECCHIO 113 3.964.354,42 1.793.641,50 0,00 0,00 5.757.995,92 -2.002.104,71 0,00 3.755.891,21
87 GARGNANO P.ZA FELTRINELLI, 26 15.570,54 1.672.354,14 0,00 0,00 1.687.924,68 -356.683,89 0,00 1.331.240,79
88 MILANO LARGO SCALABRINI, 1 1.631.538,99 1.045.879,93 0,00 0,00 2.677.418,92 -1.015.518,08 0,00 1.661.900,84
89 ROMA VIA FABIO MASSIMO 15/17 816.100,77 1.580.241,13 0,00 0,00 2.396.341,90 -913.600,63 0,00 1.482.741,27
90 BRESCIA C.SO MAGENTA, 73 ANG. VIA TOSIO 2.347.244,96 13.763,23 0,00 0,00 2.361.008,19 -1.027.849,76 0,00 1.333.158,43
91 ROE' VOLCIANO VIA S.PIETRO 119 691.933,46 1.390.871,27 0,00 0,00 2.082.804,73 -776.317,39 0,00 1.306.487,34
92 VARESE VIA VERATTI 10 93.951,28 1.245.910,89 0,00 0,00 1.339.862,17 -210.758,37 0,00 1.129.103,80
93 ROMA VIA EMILIA 65 93.665,91 1.643.334,13 0,00 0,00 1.737.000,04 -565.890,96 0,00 1.171.109,08
94 UDINE VIA F.DI TOPPO 87 1.364.894,68 432.083,22 0,00 0,00 1.796.977,90 -669.581,75 0,00 1.127.396,15
95 TORINO CORSO INGHILTERRA, 59/D 518.564,04 839.334,40 0,00 0,00 1.357.898,44 -263.017,89 0,00 1.094.880,55
96 BRESCIA VIA TRENTO 25/27 216.826,99 1.402.177,66 0,00 0,00 1.619.004,65 -549.104,78 0,00 1.069.899,87
97 GARDONE V.T. VIA MATEOTTI 212 86.081,03 1.477.863,43 0,00 0,00 1.563.944,46 -538.697,95 0,00 1.025.246,51
98 MONTICHIARI VIA TRIESTE,71 918.968,14 783.980,44 0,00 0,00 1.702.948,58 -512.533,39 0,00 1.190.415,19
99 LUMEZZA NE VIA MONTINI ,251 1.178.689,08 360.637,68 0,00 0,00 1.539.326,76 -556.178,29 0,00 983.148,47
100 GAVARDO VIA SUOR RIVETTA,1 700.656,22 1.298.981,32 0,00 0,00 1.999.637,54 -1.061.327,77 0,00 938.309,77
Ubicazione
243
101 MILANO VIA MAC MAHON 19 231.195,61 966.932,98 0,00 0,00 1.198.128,59 -251.070,41 0,00 947.058,18
102 SALO' PIAZZA VITTORIA 13 36.542,23 1.276.564,00 0,00 0,00 1.313.106,23 -394.074,74 0,00 919.031,49
103 RIVOLI VIA ROMBO' 25/E 1.447.006,66 142.734,31 0,00 0,00 1.589.740,97 -731.632,21 0,00 858.108,76
104 MILANO VIA WASHINGTON 96 477.558,41 741.281,62 0,00 0,00 1.218.840,03 -368.635,92 0,00 850.204,11
105 VILLAFRANCA VIA PACE, 58 609.881,38 667.323,84 0,00 0,00 1.277.205,22 -431.654,45 0,00 845.550,77
106 BRESCIA VIA VALLECAMONICA 6/B 108.183,97 1.266.361,72 0,00 0,00 1.374.545,69 -547.659,28 0,00 826.886,41
107 OSPITALETTO VIA PADANA SUPERIORE 56 159.013,39 1.042.375,10 0,00 0,00 1.201.388,49 -389.575,69 0,00 811.812,80
108 BRESCIA VIA CROCIFISSA DI ROSA 67 235.416,55 999.848,54 0,00 0,00 1.235.265,09 -428.264,20 0,00 807.000,89
109 CHIARI- VIA MAFFONI COMPL.S.GIACOMO 700.315,55 518.816,95 0,00 0,00 1.219.132,50 -403.160,81 0,00 815.971,69
110 SALO' VIA PIETRO DI SALO' 95 1.301.921,59 65.605,69 0,00 0,00 1.367.527,28 -582.526,65 0,00 785.000,63
111 MONTICHIARI VIA F CAVALLOTTI 21 604.197,76 521.313,25 0,00 0,00 1.125.511,01 -340.083,22 0,00 785.427,79
112 PORDENONE VIA S. CATERINA 4 998.284,44 400.090,52 0,00 0,00 1.398.374,96 -600.819,46 0,00 797.555,50
113 BRESCIA VIA SOLFERINO-VIA FERRAMOLA 1.033.705,63 162.498,31 0,00 0,00 1.196.203,94 -440.344,19 0,00 755.859,75
114 MILANO VIA PORPORA 65 754.442,38 293.257,06 0,00 0,00 1.047.699,44 -331.261,60 0,00 716.437,84
115 BOTTICINO VIA DON MILANI 3 229.736,20 914.204,70 0,00 0,00 1.143.940,90 -434.083,58 0,00 709.857,32
116 BASSANO DEL GRAPPA VIA PIO X 818.854,29 38.711,35 0,00 0,00 857.565,64 -114.296,43 0,00 743.269,21
117 NUVOLENTO VIA TRENTO 17 529.875,39 955.665,75 0,00 0,00 1.485.541,14 -787.140,89 0,00 698.400,25
118 VITERBO VIA SAPIENZA 6.471,82 1.050.337,95 0,00 0,00 1.056.809,77 -352.809,28 0,00 704.000,49
119 LEGNANO C.SO MAGENTA, 127 1.219.112,73 0,00 0,00 0,00 1.219.112,73 -531.614,27 0,00 687.498,46
120 EDOLO Via Marconi 36/A 627.175,83 878.848,29 0,00 0,00 1.506.024,12 -797.885,77 0,00 708.138,35
121 BUSTO ARSIZIO C.SO EUROPA-ANG.P.ZA VENZAGHI 941.108,28 0,00 0,00 0,00 941.108,28 -241.910,97 0,00 699.197,31
122 LATINA VIA ISONZO 3 COSTO STORICO 506.542,77 657.393,42 0,00 0,00 1.163.936,19 -492.678,79 0,00 671.257,40
123 BRESCIA VIA DUCA D'AOSTA,19 36.924,26 1.019.130,08 0,00 0,00 1.056.054,34 -397.083,90 0,00 658.970,44
124 BRESCIA V.VENETO 73 285.207,65 930.997,65 0,00 0,00 1.216.205,30 -554.202,68 0,00 662.002,62
125 LUMEZZANE VIA M.D'AZEGLIO, 4 99.004,79 976.455,20 0,00 0,00 1.075.459,99 -426.805,07 0,00 648.654,92
126 SAREZZO VIA ROMA 8 60.532,85 909.899,18 0,00 0,00 970.432,03 -333.173,32 0,00 637.258,71
127 BRESCIA VIA MILANO 21/B 82.829,09 912.793,84 0,00 0,00 995.622,93 -387.620,63 0,00 608.002,30
128 BEDIZZOLE VIA TRENTO 3/5 101.720,34 870.727,86 0,00 0,00 972.448,20 -361.706,22 0,00 610.741,98
129 GAVARDO VIA G.QUARENA, 145 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
130 MILANO VIA MONTEROSA 16 365.084,70 513.322,76 0,00 0,00 878.407,46 -267.205,38 0,00 611.202,08
131 GHEDI Piazza Roma, 1 3.615,20 805.950,63 0,00 0,00 809.565,83 -214.504,49 0,00 595.061,34
132 MERATE VIA MANZONI,56 712.030,66 0,00 0,00 0,00 712.030,66 -124.607,01 0,00 587.423,65
133 BRESCIA C.SO MAGENTA-ANG.VIA TOSIO-P.LE ARNALDO 2.239,07 732.503,51 0,00 0,00 734.742,58 -166.440,13 0,00 568.302,45
134 MILANO VIA PONCHIELLI 1 COSTO STORICO 45.922,55 645.392,74 0,00 0,00 691.315,29 -141.834,62 0,00 549.480,67
135 ALZANO L. VIA ROMA, 31 785.530,94 146.306,41 0,00 0,00 931.837,35 -426.122,58 0,00 505.714,77
136 GALLARATE VIA R. SANZIO 2 882.001,10 34.749,95 0,00 0,00 916.751,05 -422.227,45 0,00 494.523,60
137 ROMA P.ZA DEI TRIBUNI 58 609.938,86 0,00 0,00 0,00 609.938,86 -121.739,32 0,00 488.199,54
138 VENEGONO PIAZZA MONTE GRAPPA 8 411.897,34 347.192,51 0,00 0,00 759.089,85 -288.402,03 0,00 470.687,82
139 ADRO VIA ROMA 1 52.121,61 633.088,77 0,00 0,00 685.210,38 -233.650,25 0,00 451.560,13
140 TRAVAGLIATO P.ZA LIBERTA' 19.108,91 691.819,27 0,00 0,00 710.928,18 -261.115,90 0,00 449.812,28
141 LENO VIA DOSSI 2 1.526,02 652.210,72 0,00 0,00 653.736,74 -215.539,19 0,00 438.197,55
142 GARDONE R. VIA ROMA 8 23.292,21 641.546,99 0,00 0,00 664.839,20 -217.776,45 0,00 447.062,75
143 CARPENEDOLO P.ZA MARTIRI D/LIBERTA'1 0,00 666.781,96 0,00 0,00 666.781,96 -236.936,40 0,00 429.845,56
144 MANERBA DEL GARDA VIA V. GARSSMAN 1 522.531,13 35.848,53 0,00 0,00 558.379,66 -140.929,66 0,00 417.450,00
145 CELLATICA VIA BERTULLI 8 56.810,26 566.578,91 0,00 0,00 623.389,17 -224.638,33 0,00 398.750,84
146 LODRONE VIA CAMPINI 3/A -FRAZ STORO 159.585,18 359.290,39 0,00 0,00 518.875,57 -114.217,93 0,00 404.657,64
147 VILLA CARCINA VIA MARCONI 39/C 37.964,65 598.187,08 0,00 0,00 636.151,73 -246.650,40 0,00 389.501,33
148 MILANO VIA LOMELLINA 14 460.647,66 139.510,37 0,00 0,00 600.158,03 -218.359,83 0,00 381.798,20
149 BRESCIA VIA AMBARAGA 42 52.202,14 587.285,66 0,00 0,00 639.487,80 -282.489,55 0,00 356.998,25
150 BRESCIA VIA CHIUSURE 333/A 256.386,17 1.427.867,01 0,00 0,00 1.684.253,18 -549.647,99 0,00 1.134.605,19
244
151 GEMONIO VIA VERDI 24 689.888,86 15.219,16 0,00 0,00 705.108,02 -339.794,05 0,00 365.313,97
152 MANERBIO CENTRO COMM.LE LE ARCATE 564.384,10 49.862,65 0,00 0,00 614.246,75 -238.521,60 0,00 375.725,15
153 BRESCIA VIA R.ARGENTINA,90 639.641,59 0,00 0,00 0,00 639.641,59 -278.842,40 0,00 360.799,19
154 MILANO V.LE MARCHE 40 540.708,48 1.942,86 0,00 0,00 542.651,34 -184.852,91 0,00 357.798,43
155 LENO VIA GARIBALDI, 2 525.168,42 0,00 0,00 0,00 525.168,42 -181.938,82 0,00 343.229,60
156 NEMBRO VIA ROMA, 13 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
157 NOVATE MILANESE VIA DI VITTORIO 22 239.687,17 317.309,28 0,00 0,00 556.996,45 -226.795,62 0,00 330.200,83
158 TREVIOLO PIAZZA MONS.BENEDETTO 10 494.927,39 34.129,77 0,00 0,00 529.057,16 -212.620,92 0,00 316.436,24
159 COLLIO PIAZZA ZANARDELLI 32 118.896,52 347.042,08 0,00 0,00 465.938,60 -181.139,13 0,00 284.799,47
160 LUMEZZANE VIA MONTINI ,19 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
161 VERONA VIA XXIV MAGGIO ,16 486.068,89 37.292,12 0,00 0,00 523.361,01 -239.992,59 0,00 283.368,42
162 NUVOLERA VIA ITALIA 3/A. 60.115,58 394.136,86 0,00 0,00 454.252,44 -186.453,99 0,00 267.798,45
163 PREVALLE P.ZA DEL COMUNE 7 335.784,72 0,00 0,00 0,00 335.784,72 -64.234,31 0,00 271.550,41
164 SAN FELICE D/B VIALE ITALIA 9 120.222,49 326.748,00 0,00 0,00 446.970,49 -182.970,29 0,00 264.000,20
165 CEDEGOLO VIA NAZIONALE 105 25.813,58 325.655,49 0,00 0,00 351.469,07 -130.969,88 0,00 220.499,19
166 FABRICA DI ROMA V.LE DEGLI EROI 216.783,82 129.800,48 0,00 0,00 346.584,30 -126.185,47 0,00 220.398,83
167 TORINO C.SO UNIONE SOVIETICA 503 423.095,42 0,00 0,00 0,00 423.095,42 -209.694,95 0,00 213.400,47
168 VITERBO VIA MONTE S.VALENTINO 362.459,27 20.462,96 0,00 0,00 382.922,23 -170.515,34 0,00 212.406,89
169 SULZANO VIA C.BATTISTI, 85 59.392,53 135.474,73 0,00 0,00 194.867,26 -82.698,16 0,00 112.169,10
170 SERIATE (BG) VIA PADERNO 25 254.419,39 1.478,37 0,00 0,00 255.897,76 -61.198,30 0,00 194.699,46
171 VISANO VIA MARCONI 2 75.507,14 177.144,97 0,00 0,00 252.652,11 -59.851,39 0,00 192.800,72
172 MONTEFIASCONE P.LE ROMA 166.940,35 367.093,11 0,00 0,00 534.033,46 -342.334,23 0,00 191.699,23
173 PAVONE MELLA VIA UMBERTO I° 219.594,96 228.309,35 0,00 0,00 447.904,31 -279.954,66 0,00 167.949,65
174 MAIRANO P.ZA EUROPA 1 446.479,10 0,00 0,00 0,00 446.479,10 -66.084,19 0,00 380.394,91
175 MAIRANO VIA DELLA LIBERTA', 22 8.453,45 256.305,85 0,00 0,00 264.759,30 -95.702,16 0,00 169.057,14
176 REZZATO VIA ZANARDELLI 5 226.332,56 31.356,87 0,00 0,00 257.689,43 -99.974,81 0,00 157.714,62
177 BERGAMO VIA TREMANA 13 188.584,24 89.455,85 0,00 0,00 278.040,09 -121.040,69 0,00 156.999,40
178 MONTALTO DI CASTRO VIA AURELIA 5/7 212.683,59 0,00 0,00 0,00 212.683,59 -58.684,24 0,00 153.999,35
179 S.GIOVANNI BIANCO P.ZZA VISTAGLIO ZIGNONI 31/33 220.526,83 0,00 0,00 0,00 220.526,83 -63.069,52 0,00 157.457,31
180 RONCIGLIONE CORSO UMBERTO 78 192.841,03 9.548,20 0,00 0,00 202.389,23 -66.732,41 0,00 135.656,82
181 SAN GERVASIO BRESCIANO Piazza Antica Piazza 176.953,55 0,00 0,00 0,00 176.953,55 -45.437,52 0,00 131.516,03
182 ARTA TERME VIA ROMA 2/C 96.332,19 99.523,38 5.225,01 0,00 201.080,58 -70.180,27 0,00 130.900,31
183 OFFLAGA VIA MAZZINI 2 32.512,71 155.562,83 0,00 0,00 188.075,54 -64.418,69 0,00 123.656,85
184 VIGNANELLO VIA OLIVIERI 1/A 129.431,98 112.870,59 0,00 0,00 242.302,57 -138.635,92 0,00 103.666,65
185 SORIANO DEL CIMINO PIAZZA XX SETTEMBRE,1 98.768,40 141.729,51 0,00 0,00 240.497,91 -137.797,97 0,00 102.699,94
186 BOLSENA Via Antonio Gramsci,27 161.578,86 130.470,24 0,00 0,00 292.049,10 -201.299,10 0,00 90.750,00
187 PAULARO VIA NASCIMBENI 5 9.513,67 126.256,59 10.145,02 0,00 145.915,28 -54.014,86 0,00 91.900,42
188 SUTRIO PIAZZALE XXII LUGLIO 44 19.149,79 102.169,57 12.848,52 0,00 134.167,88 -50.967,86 0,00 83.200,02
189 VITERBO VIA CATTANEO 47/F 110.666,12 3.888,72 0,00 0,00 114.554,84 -36.954,71 0,00 77.600,13
190 VASANELLO P.ZA REPUBBLICA,55 AG.538 116.202,80 199,78 0,00 0,00 116.402,58 -39.830,96 0,00 76.571,62
191 GRADOLI PIAZZA V. EMANUELE 15/A 0,00 107.468,26 0,00 0,00 107.468,26 -33.568,49 0,00 73.899,77
192 MONTEROSI VIA ROMA 36 21.918,11 114.317,10 0,00 0,00 136.235,21 -64.035,57 0,00 72.199,64
193 SAN GERVASIO VIA IV NOVEMBRE 11 342,93 102.818,78 0,00 0,00 103.161,71 -35.661,65 0,00 67.500,06
194 PRATO CARNICO VIA PIERIA 91/D 11.493,86 74.693,46 16.127,88 0,00 102.315,20 -44.915,16 0,00 57.400,04
195 PIANSANO VIA SANTA LUCIA 52 40.976,72 8.243,04 0,00 0,00 49.219,76 -15.619,78 0,00 33.599,98
196 Medolago Via Europa, 19/b 444.000,00 0,00 0,00 0,00 444.000,00 -53.298,97 0,00 390.701,03
197 Castelcovati Via A.De Gasperi 48 470.400,00 0,00 0,00 0,00 470.400,00 -56.468,10 0,00 413.931,90
198 Chiari Via XXVI Aprile, 61 6.000,00 0,00 0,00 0,00 6.000,00 -597,71 0,00 5.402,29
199 ROMA Via Troilo il Grande, 52/54/64-Via Crescenzio 250.031,73 8.081,09 0,00 254.847,50 512.960,32 -66.598,97 0,00 446.361,35
200 CORCHIANO BORGO UMBERTO I, 54 6.080,16 190.842,46 0,00 0,00 196.922,62 -84.065,46 0,00 112.857,16
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201 BRESCIA VIA DELLA CHIESA 72-URAGO 540.073,48 0,00 0,00 0,00 540.073,48 -228.728,15 0,00 311.345,33
202 CASTELFRANCO VENETO Via Forche, 2 492.137,61 0,00 0,00 252.351,56 744.489,17 -103.463,89 0,00 641.025,28
203 CONCESIO (BS) Via Europa N. 197 265.718,78 0,00 0,00 0,00 265.718,78 -873,46 0,00 264.845,32
204 MILANO Via Bertolazzi,20 562.533,76 0,00 0,00 89.688,05 652.221,81 -82.760,92 0,00 569.460,89
205 MILANO Via Bertolazzi,20 32.705,72 0,00 0,00 5.214,47 37.920,19 -3.169,24 0,00 34.750,95
108.735.222,03 274.978.855,38 615.082,18 602.101,58 384.931.261,17 -114.073.194,93 406.158,68 271.264.224,92
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GLOSSARY
247
ABF (FINANCIAL BANKING ARBITRATION BODY)
The Financial Banking Arbitration Body (ABF) is a body which decides the out-of-court settlement of the disputes envisaged by Article 128 bis of the TUB (Consolidated Banking Law), introduced by
the savings’ law (Italian Law No. 262/2005). The organization and the functioning of the ABF are
disciplined by the “Provisions on the out-of-court settlement systems for disputes regarding
banking and financial transactions and services” issued by the Bank of Italy on 18th June 2009.
Compliance is obligatory for all the banks and other financial intermediaries.
The ABF, operative since 15th October 2009, can be submitted all the disputes concerning the
assessment of rights, obligations and faculties, irrespective of the value of the relationship to which they refer. If the applicant’s request concerns the payment of a sum of money for any
reason, the dispute falls within the sphere of competence of the ABF provided that the amount
requested is no higher than 100,000 euro.
Disputes pertaining to investment services/activities and the placement of financial products as
well as the transactions and services which are components of financial products are excluded; in relation to the latter, at present one can apply to the Banking Ombudsman Jury at the Financial
Banking Conciliation Body (see definition) and in the future the Chamber of conciliation and
arbitration soon to be set up within the Consob41.
The accomplishment of the claim stage care of the intermediary is a preliminary and necessary
condition for applying to the ABF, to which recourse can be made in cases of unsatisfactory
outcome of the claim or failure to reach a settlement on the claim within thirty days of receipt of the same by the bank.
Recourse is free-of-charge, except for the payment of 20 euro as a contribution towards the costs
of the proceedings which must be reimbursed by the bank to the applicant if the board upholds
the request in full or in part.
In contrast to the conciliation instrument, which aims to encourage the reaching of an agreement between the parties. The ABF expresses a decision on the appeals received by means of a
judgment body, without prejudice to the faculty of the parties to resort to the Legal Authorities or
any other means envisaged by the legal system protecting their interests.
The ABF is made up of a decision-making body divided up into three boards (Milan, Rome and
Naples) and a technical secretarial service carried out by the Bank of Italy. Within each board, the
decision-making body is made up of five members, three of which (including the chairman) appointed by the Bank of Italy, one by the intermediary associations and one by the associations
which represent the customers.
ABS (ASSET BACKED SECURITIES)
Financial instruments issued in securitisation transactions (see definition) whose return and
reimbursement are guaranteed by the originator's assets (see definition), exclusively designed to
satisfy the rights incorporated in the financial instruments themselves. Technically, debt
securities are issued by SPV (Special Purpose Vehicles – see definition). The portfolio underlying
the securitisation transaction may consist of property mortgages, loans, bonds, commercial loans, credit card loans or other credit types. Based on the type of underlying asset, ABSs may be
classified as:
• CLO - credit loan obligations (the portfolio consists of bank loans);
• CBO - collateralised bond obligations (the portfolio consists of bonds);
• CDO - collateralised debt obligations (the portfolio consists of bonds, debt instruments and
securities in general); • RMBS – residential mortgage-backed securities (the portfolio consists of mortgages on
residential properties).
• commercial mortgage-backed securities (the portfolio consists of mortgages on commercial
properties).
ACQUISITION FINANCE
Loans to finance the company’s acquisition transactions.
41 Under Resolution No. 16763 dated 29 December 2008, Consob approved the Regulations implementing Italian
Legislative Decree No. 179 dated 8th October 2007, concerning the Chamber of conciliation and arbitration and the
related procedures. The Chamber will become fully operative once the necessary fulfillments have been performed. All the disputes regarding investment services, without limits as to the amount, can be submitted to the same, on the investor’s initiative, provided that a claim has been presented care of the intermediary.
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ADR (ALTERNATIVE DISPUTE RESOLUTION)
This abbreviation indicate all the out-of-court methods, instruments, and techniques for resolving disputes: one or both of the parties entrust an impartial third party to settle a dispute, without
applying to the legal authorities.
ALM (ASSET & LIABILITY MANAGEMENT)
Integrated management of assets and liabilities, allocating resources to optimise the risk-return
relationship.
ALTERNATIVE INVESTMENT
Range of investment forms which include, among other aspects, private equity investments (see
definition) and investments in hedge funds (see definition).
ASSET MANAGEMENT
Managing third party financial investments.
ATM (AUTOMATED TELLER MACHINE)
Automated machines used by customers to carry out transactions such as withdrawing cash, depositing cash or checks, requesting account information, paying utility bills or recharging
mobile phone cards, etc. The customer activates the terminal by inserting a card and entering a
personal identification code.
RISK-WEIGHTED ASSETS
The amount obtained by multiplying the total required supervisory capital (credit risks, market
risks, and other prudential requirements) by a factor of:
14.3 for companies belonging to banking groups;
12.5 for consolidated banking groups and companies not belonging to banking groups.
AUDIT
Audit process on the business activities and the accounts which is carried out both by internal
structures (internal audit – see definition) and by third parties (external audit).
BACKTESTING
Retrospective analysis to verify the reliability of risk measurements associated with asset portfolio
positions.
BANCASSURANCE
Term that refers to offering typical insurance products through the operating network of credit
companies.
BANKING BOOK
Usually identifies part of a securities portfolio, or financial instruments in general, that are meant to be held to maturity.
BASEL II
New International agreement on capital used to redefine the guidelines for determining the minimum capital requirements of banks42.
42 The first version of the agreement, known as Basel 1, dates back to 1988 and was also signed in the Swiss city where
the Bank for International Settlements (BIS) is located, an organization which since 1930 furthers monetary and
financial co-operation on a global scale, known in Italy as the Banca per i Regolamenti Internazionali (BRI). Within the same, the Basel Committee operates, set up by the governors of the central banks of the ten most industrialized countries (G10) at the end of 1974, which is responsible for drafting the agreement. The representatives of Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, the UK and the
USA form part of the same. The Basel Committee does not have supranational authority: the member nations can decide to comply with the
agreement but are not bound to accept the committee’s decisions. The obligatory nature of the matters envisaged by
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The new prudent regulations are based on three pillars.
Pillar 1: without prejudice to the objective of a capitalization level equating to 8% of the risk
weighted exposures, a new system of rules has been outlined for the gauging of the risks
typical to banking and financial activities (credit, counterpart, market and operational)
which envisages alternative calculation methods characterized by different levels of complexity with the possibility of using, subject to the authorization of the Supervisory
Body, internally developed models; Pillar 2: the banks must endow themselves with processes and instruments for determining
the overall internal capital level (Internal Capital Adequacy Assessment Process – ICAAP)
suitable for dealing with any type of risk, also other than those overseen by the total capital
requirement (first pillar). The Supervisory Authority is responsible for the task of examining the ICAAP process, formulating an overall opinion and activating, where necessary, the
appropriate corrective measures; Pillar 3: introduces publication obligations for the information regarding the capital
adequacy, exposure to the risks and the general features of the systems assigned with the
identification, gauging and management of these risks.
BASIS POINT
Corresponds to one one-hundredth of a percentage point (0.01%).
BASIS SWAP
Contract between two counterparties to exchange payments linked to variable rates based on
different indices.
BENCHMARK
Reference parameter for financial investments: may represent the more important market indices
or other indices deemed more representative of the risk/return profile.
BEST PRACTICE
Behaviour commensurate with the most important experience and/or best level achieved for skills
in reference to a certain technical/professional area.
CAGR - COMPOUND ANNUAL GROWTH RATE
Annual growth rate applied to an investment or other assets for a multi-year period. The formula
to calculate CAGR is (current value/base value)^(1/No. of years).
CAPITAL ALLOCATION
Process that results in a decision on the distribution of the investment among the various
financial asset categories (in particular, bonds, equity securities and liquidity). The capital allocation choices are determined by the need to optimise the risk/return ratio in relation to the
time horizon and investor expectations.
CAPTIVE
Generic term that refers to “networks” or companies that operate exclusively with company or
Group customers
SECURITISATION
Transferring loans or other non-negotiable financial assets to a qualified company (SPV – see
definition) whose exclusive purpose is to realise the transactions and convert the loans or assets
into negotiable securities on a secondary market.
Basel 2 for the EU nations in fact derives from a European Parliament Directive which was assimilated in September 2005.
The first Basel agreement, signed by the central authorities of more than 100 countries, established the obligation for the member banks to set aside a portion of capital corresponding to 8% of the loans disbursed irrespective of the valuation, via rating procedures, of the reliability of the applicant companies.
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CAPITALISATION (INSURANCE) CERTIFICATES
Capitalisation contracts are governed as direct life insurance as per Italian Legislative Decree No. 174 of 17th March 1995. As defined in Article 40 of said decree, under these contracts an
insurance company commits to pay, as compensation for the instalment of single or periodic
premiums, a capital amount equal to the premium paid, periodically revalued based on the return
of a separate internal management of financial assets or, if higher, a minimum guaranteed return.
They cannot have a duration of less than 5 years and the contracting party has the right to redeem the contract from the beginning of the second year. In accordance with Article 31 of the
aforementioned Italian Legislative Decree No. 174, financial assets to hedge technical reserves are
reversed exclusively to fulfil obligations connected with capitalisation contracts (separate
management). Thus, in the event the insurance company went into liquidation (Art. 67), the
beneficiaries of these policies become the owners of assisted credit positions with special
privileges.
COMMERCIAL PAPER
Short-term securities issued to raise funds of third party subscribers as an alternative to other
forms of borrowing.
FINANCIAL BANKING CONCILIATION BODY
The “Financial Banking Conciliation Body – Association for the settlement of banking, financial and corporate disputes – ADR” is an initiative furthered with ABI backed by the ten leading banking
groups, including the UBI Banca Group, so as to provide customers with rapid and efficient
services for the settlement of disputes, as an alternative to legal proceedings (ADR: Alternative Dispute Resolution – see definition). The services offered are:
Conciliation: this involves the attempt to settle a dispute entrusting an expert and
independent individual (the conciliator) with the task of facilitating the reaching of an
agreement between the parties for the purpose of avoiding recourse to a judge. The agreement reached is binding between the parties and can be ratified by the Court thereby
becoming executive. The conciliation service at the Financial Banking Conciliation Body is
carried out by the “Banking Conciliation Body”, enrolled in the register of bodies appointed to
handle conciliation attempts as per Article 38 of Italian Legislative Decree No. 5 dated 17th
January 2003;
Arbitration: procedure where the parties submit a dispute to an arbitrator or a board of
arbitrators, recognising their power to decide in this connection;
Banking Ombudsman Jury: body set up in 1993 within the ABI which can be turned to by
customers, who are unsatisfied with the bank’s complaints department’s decisions or for disputes which have not been dealt with by the prescribed deadline, free of charge on a
secondary basis. The management of the Ombudsman was transferred to the Financial
Banking Conciliation Body as from 1st June 2007.
The Ombudsman can be submitted the disputes concerning investment services relating to the assessment of rights, obligations and faculties, irrespective of the value of the
transaction to which they refer. If the request concerns the payment of a sum of money, the matter becomes the responsibility of the Ombudsman as long as the amount requested
is no higher than 100,000 euro. The Ombudsman decides within 90 days of the date of
receipt of the request for intervention. Recourse to the Ombudsman does not preclude the
customer from the faculty of applying to the Legal Authorities, a conciliation body or
arbitration board at any time, while the decision is binding for the intermediary.
CONDUIT
In this connect, see the item SPE/SPV.
CONSUMER FINANCE
Financing to households for personal use linked to the consumption of goods and services.
CONTRACT WORK AGREEMENT
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Temporary employment relationship, disciplined by Italian Legislative Decree No. 276 dated 10th
September 2003 (so-called Biagi law, on the basis of Italian Law No. 30 dated 14th February
2003), by means of which a legal entity avails itself of the work services of a worker taken on by a
temporary employment agency authorized by the Department of Labour. The relationships
between the user and the employment agency are disciplined by a contract which also disciplines the remuneration and contribution aspects (social security and welfare contributions).
This contractual form replaced the temporary employment relationship established by Italian Law
No. 196 dated 24th June 1997 (so-called Teu reform).
CORE TIER 1 RATIO
Ratio between the Tier 1 capital (see definition) net of the innovative capital instruments and the
total of the risk weighted assets (see definition).
CORPORATE GOVERNANCE
Through the composition and functioning of the internal and external corporate boards, the
corporate governance structure defines the distribution of rights and responsibilities among those
involved in the company, in reference to dividing up tasks, assuming responsibility and decision-
making power. The fundamental objective of corporate governance is to maximise value for the shareholders, with positive results, over the medium-long term, for other stakeholders, such as
customers, suppliers, employees, creditors, consumers and the community.
COST INCOME RATIO
Economic indicator defined by the ratio between operating costs and the intermediation margin.
COVERED BONDS
Special bank bonds which, besides guaranteeing the issuing bank, may also avail of the
guarantee of a portfolio of mortgage loans or other loans of a high quality transferred, for said
purpose, to a special purpose company43.
The banks which intend to issue covered bonds must avail of equity of no less than 500 million
euro and an overall capital ratio at consolidated level of no less than 9%. With regard to the assets
which can potentially be used as collateral, the portion transferred cannot exceed the following limits, established in relation to the capitalization level:
25% in cases of a capital factor 9% and 10% with Tier I ratio 6%;
60% in cases of a capital factor 10% and 11% with Tier I ratio 6.5%;
No limit in the cases of a capital factor 11% with Tier I ratio 7%.
CPI (CREDIT PROTECTION INSURANCE)
Credit protection insurance policies which can be taken out by those taking out financial loans
(personal loans, mortgages and credit cards) so as to guarantee them (in the capacity as insured party) the payment of the residual debt and/or a set number of instalments in the case of
temporary or definitive negative events (involuntary loss of employment, illness, accident,
permanent invalidity or death). These policies can also be combined with loans to businesses,
with insurance coverage of the events which may affect shareholders, directors or key company
figures.
CREDIT CRUNCH
Significant drop (or sudden deterioration of the conditions) in the supply of credit to businesses at
the end of a prolonged period of expansion, capable of accentuating a period of recession.
CREDIT DEFAULT SWAP
43 In the Italian legal system, Law No. 130 dated 30th April 1999, disciplined the case of covered bank bonds (Article 7 bis).
The operating scheme envisages the transfer by the bank of high quality assets (mortgages loans and public authority loans) to a special purpose company and the issue by a bank, also other than the transferor, of bonds guaranteed by the
special purpose company availing of the assets acquired and established as separate equity. The applicative profiles of the discipline are contained in Ministerial Regulation No. 310 dated 14th December 2006 and in the supervisory provisions of the Bank of Italy dated 15th May 2007.
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Contract under which a party, after paying a periodic premium, transfers to another party the
credit risk inherent in a loan or a security, after an established event occurs that is linked to the
solvency level of the debtor.
RESTRUCTURED CREDIT
Position for which the Bank has agreed to a payment deferral with the debtor, renegotiating the
exposure at tax rates lower than the market.
DEFAULT
Identifies the condition of declaring the inability of honouring owns debts and/or the payment of
related interest.
OTC DERIVATIVES TRADED WITH CUSTOMERS
Activities supporting the customer for the handling of financial risks, in particular those deriving
from fluctuations in exchange rates, interest rates and commodities prices (raw materials).
GEOGRAPHIC DISASTER RECOVERY
A collection of technical and organisational procedures in the event of a catastrophic event which
causes the data processing site to be unavailable. The objective is to reactivate the essential company applications in a secondary site (called recovery). The disaster recovery system is defined
as “geographic” when it is located at least 50 km from the original system. The primary objective
is to reduce risks from disastrous events that could possibly impact an entire metropolitan area
(e.g., earthquakes, floods, acts of war, etc.) as prescribed by international security standards.
DURATION
Referring to a security or a bond portfolio, this is the indicator usually calculated as the weighted
average of the maturities of the payments for interest and principle associated with said security.
EAD (EXPOSURE AT DEFAULT)
Estimate of the future value of an exposure at the time of default (see definition) of the related
debtor.
ETF (EXCHANGE TRADED FUNDS)
Particular type of investment funds traded on the stock market like a share, the sole investment
aim of which is to replicate the index to which it refers (benchmark) by means of totally passive
handling. The ETF summarizes the particular characteristics of a fund and a share, permitting investors to exploit the strong points of both the instruments by means of the diversification and
reduction of the risk of the funds, at the same time guaranteeing the flexibility and disclosure
transparency of trading in real time on the shares.
ETC (EXCHANGE TRADED COMMODITIES)
Financial instruments issued against the investment of the issuer in raw physical materials (in this case they are defined as physically-backed ETC) or in derivative contracts on raw materials.
The price of the ETCs is, therefore, directly or indirectly linked to the underlying element. On a
similar basis to ETFs (see definition), ETCs are traded like shares, passively replicating the
performance of the raw material or the raw material indices to which they refer.
EURIBOR (EURO INTERBANK OFFERED RATE)
Interbank interest rate at which leading banks exchange deposits in euro on various maturity
dates. It is calculated daily as the simple average of the listed prices struck at eleven o’clock on a
sample of banks with high credit rating selected periodically by the European Banking Federation. Various floating rate loan contracts are linked to the Euribor (for example home mortgage loans).
FACTORING
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Contract to sell, without recourse (with credit risk borne by the transferee) or with recourse (with
credit risk born by the transferor) of commercial loans to banks or specialised companies, in order
to manage and collect, and may involve a loan to the transferor.
FAIR VALUE
Amount for which an asset can be exchanged, or a liability extinguished, in a free market between
informed and available parties. It is often identical to the market price. Based on IAS standards
(see definition), banks apply fair value in measuring financial instruments (assets and liabilities) for trading and available for sale as well as derivatives and may use the fair value method to value
the equity investments and tangible and intangible assets (with various methods of impact on the
income statement for the different assets in consideration).
FLOOR
Derivative contract on interest rates, negotiated outside regulated markets, under which a
lowermost limit for the reduction of the creditor interest rate is fixed.
FRA (FORWARD RATE AGREEMENT)
Contract under which the parties agree to receive (pay) at maturity the difference between the
value calculated by applying a fixed interest rate to the amount of the transaction and the value
obtained based on the assumed level of a reference rate fixed in advance by the parties.
FUNDING
Provisioning the funds necessary for financing the company activities or specific financial
transactions, in all its various forms.
FUTURE
Standardised forward contracts, under which the parties agree to exchange securities or goods at
a fixed price and future date. These contracts are normally negotiated on organized markets,
where their execution is guaranteed. In contrast to options (see definition) which grant the right but not the obligation to buy, the futures oblige two contracting parties to sell or purchase.
GOODWILL
Identifies the goodwill paid to purchase an equity share, equal to the difference between the cost
and the corresponding share of shareholders’ equity, for the part not attributable to asset
elements of the company purchased.
HEDGE FUND
Mutual investment fund that has the possibility, not available to traditional funds, to use
sophisticated investment instruments or strategies such as short selling, derivatives (options or
futures, even beyond 100% of the assets), hedging (hedging the portfolio from market volatility through short selling and use of derivatives) and financial leverage (indebtedness to invest
borrowed money).
IAS/IFRS
International accounting standards issued by the International Accounting Standard Board
(IASB), a private international entity established in April 2001, to which accounting professionals
in the largest countries belong, as well as the European Union IOSCO (International Organization
of Securities Commissions) and the Basel Committee, in the capacity of observers. This entity is
the successor to the International Accounting Committee (IASC), established in 1973 to promote standardisation of rules in preparing corporate financial statements. When the IASC was
transformed into the IASB, it was decided to call the new accounting standards “International
Financial Reporting Standards” (IFRS).
At International level, an endeavour to harmonise the IAS/IFRS with the US GAAP is underway
(see definition).
IBAN (INTERNATIONAL BANK ACCOUNT NUMBER)
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International standard used to identify a bank. As from 1st July 2008, the use of the IBAN code –
made up of 27 characters – became obligatory not only for foreign payments, but also those made
in Italy.
IDENTITY ACCESS MANAGEMENT
Technical-organisational solution that administers and controls the entire life cycle of assigning,
managing and revoking access privileges to information resources and to company information by
each user.
IMPAIRMENT
IAS defines impairment as the loss of value in a balance sheet asset, recognised when the carrying
value is greater than the recoverable value or the amount that can be obtained by selling or using the asset. The impairment test must be performed on all assets, with the exception of those
carried at fair value, for which any losses (or gains) in value are implicit.
IMPAIRED LOANS
Loans at nominal value for parties in situations of objective difficulty, that it is believed will be
overcome in a reasonable period of time.
INDEX LINKED
Life insurance policy whose benefit at maturity depends on the performance of a reference
parameter that can be a share index, a basket of securities or another indicator.
TANKAN INDEX
Japanese economy indicator established on the basis of the results of a survey carried out by the
Bank of Japan in the last month of each quarter. Both the manufacturing sector and the services
sector are surveyed, with a segmentation in relation to the size of the businesses (large, medium,
small).
INTERNAL AUDIT
Department to which the internal audit activities are assigned (see definition).
REAL ESTATE PROPERTY INVESTMENT
Property held for the purpose of obtaining income or benefiting from the related increase in value.
INVESTMENT BANKING
Investment banking is a highly specialised area of finance that is, specifically, involved in helping companies and governments issue securities and, more generally, in procuring funds on capital
markets.
INVESTMENT GRADE
High quality bond securities with a medium-high rating (see definition) (for example, not less than
BBB in the Standard & Poor's scale).
INVESTOR
Party, other than the originator (see definition) and the sponsor (see definition), who has an
exposure vis-à-vis a securitisation (see definition).
IRB (INTERNAL RATING BASED)
Internal rating approach (see definition) within the sphere of Basel 2 (see definition), divided up
into basic and advanced methods. The advanced method can only be used by the banks which
satisfy the most stringent minimum requirements and envisages that all the estimates of the
inputs for the valuation of the credit risk (PD, LGD, EAD, Maturity – see definition) are achieved internally. Otherwise, according to the basic method, just the PD is estimated by the bank.
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JOINT VENTURE
Agreement between two or more companies to perform an established economic activity, usually by setting up a joint-stock company.
JUNIOR
In a securitisation transaction (see definition), it is the most subordinated tranche of the issued securities, which firstly supports the losses that may occur during recovery of the underlying
assets.
LEASING
Contract under which one party (lessor) grants the other (lessee) the use of an asset for a fixed
period of time, purchased or built by the lessor at the option and indication of the lessee, with the
right of the latter to purchase the asset at predetermined conditions at the end of the leasing
contract.
LGD (LOSS GIVEN DEFAULT)
Estimated loss rate in the event of default (see definition) of the debtor.
LOWER TIER II
Subordinated liabilities that are part of the additional, or Tier II, capital (see definition) on the
condition that the contracts that govern the issue expressly provide that:
a) if the issuing entity goes into liquidation the debt is reimbursable only after all other creditors not equally subordinated are repaid;
b) the duration of the relationship is equal or greater than 5 years, and if the maturity is not
fixed, at least 5 years notice must be given for reimbursement;
c) early reimbursement of the liability occurs only on the initiative of the issuer and with a
waiver from Bank of Italy.
The amount of subordinated loans admitted in additional capital is reduced by one-fifth each year
during the 5 years prior to the maturity of the relationship, unless there is an amortisation plan
in place that produces a similar effect.
MARK TO MARKET
Valuation of a portfolio of securities and other financial instruments based on prices expressed on
the market.
MARK DOWN
Difference between the average borrowing rate of the technical form of direct funding in
consideration and the Euribor.
MARK UP
Difference between the average lending rate of the technical form of lending in consideration and
the Euribor.
MATURITY
Residual life of an exposure, calculated according to prudent regulations.
MERCHANT BANKING
This term includes all activities in subscribing securities – equity or debt – for corporate
customers to be then placed on the market, assumption of equity investments of a more
permanent nature but with the objective of being sold at a later date, and business consultancy
services for mergers and acquisitions or restructuring.
MEZZANINE
In a securitisation transaction (see definition), it is the intermediate subordination tranche between the junior tranche (see definition) and senior tranche (see definition).
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MONOLINE
Insurance companies whose sole line of business is financial insurance. Their activities include the insurance of bonds (ABS and MBS type) whose underlying components are debts of private
individuals and real estate mortgage loans. In exchange for commission, the insurance guarantees
the reimbursement of the bond directly undertaking the risk of the debtor’s insolvency.
SUBPRIME MORTGAGES
The concept of subprime does not refer to the mortgage transaction itself, rather to the buyer
(borrower). Technically, subprime means a borrower who does not have an entirely positive credit
history, or has one characterised by negative credit events, such as: instalments not paid on
previous loans, unpaid or rejected cheques, etc. These past events are symptomatic of a greater intrinsic risk of the counterparty, who must pay a higher remuneration required by the
intermediary that grants the mortgage.
Transactions with subprime customers are particularly developed on American financial markets,
where, after stipulating these loans, there is usually a corresponding securitisation transaction
and securities issue.
Loans disbursed on the basis of incomplete or inadequate documentation are defined as Alt-A mortgage loans.
NON PERFORMING
Term generally referring to loans with irregular performance.
NUTS - NOMENCLATURE FOR TERRITORIAL UNITS FOR ITALIAN STATISTICS
Used for statistical purposes at a European level (Eurostat) and divided as follows: Northern Italy: Piedmont, Valle d’Aosta, Liguria, Lombardy, Trentino Alto Adige, Veneto,
Friuli Venezia Giulia, Emilia Romagna; Central Italy: Tuscany, Umbria, Marche, Lazio;
Southern Italy: Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sicily, Sardinia.
STRUCTURED BONDS
Bonds whose interest and/or reimbursement value depends on a parameter of a real nature
(connected to the price of a commodity) or the performance of indices. In these cases the implicit
option is unincorporated from the host contract for accounting purposes.
When the bond is parameterised to interest rates or inflation (for example treasury bills), the implicit option is not unincorporated from the host contract for accounting purposes.
OPTIONS
Represent the right, but not the commitment, purchased with a premium, to purchase (call option) or sell (put option) a financial instrument at a fixed price (strike price) within (American
option) or at (European option) at a future date.
OICR (COLLECTIVE INVESTMENT UNDERTAKINGS)
This item also includes OICVM (see definition) and other mutual investment funds (real estate
mutual funds and closed mutual funds).
OICVM (COLLECTIVE INVESTMENT UNDERTAKINGS IN TRANSFERABLE SECURITIES)
This item includes open-end mutual funds, Italian and foreign, and SICAVs.
ORIGINATOR
Party that sells its asset portfolio of receivables to the Special Purpose Vehicle (see definition) for
securitisation.
OVER THE COUNTER (OTC)
Transactions concluded directly between the parties, without going through a regulated market.
PAST DUE
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Exposures that are overdue and/or exceeded for more than 180 days, based on the definition in
the existing Regulatory Instructions.
SUPERVISORY CAPITAL
Consists of the sum of core capital (Tier I) - included without any limitations – and additional
capital (Tier II), which is included to the maximum amount of the core capital.
Equity investments, innovative capital instruments, hybrid capital requirement instruments and
subordinated assets held at other banks and finance companies are deducted at 50% for Tier I capital and 50% for Tier II capital (specifically, equity investments in banks and finance
companies at more than 10% unconsolidated are deducted, as well as the total of equity
investments in banks and finance companies at less than 10% and subordinated assets with
banks, considered at the share exceeding 10% of the Tier I and II capital).
Equity investments in insurance companies and subordinated liabilities issued by said insurers
are deducted, as well as securitised positions.
PAYOUT RATIO
This identifies the percentage of net profit distributed by the company to its shareholders.
PLAIN VANILLA SWAP
Interest rate swap (see definition) in which a counterpart receives a variable payment linked to the
LIBOR (generally, the six-month LIBOR) and pays another counterpart a fixed interest rate, obtained by adding a spread to the return of a specific type of government bond.
PD (PROBABILITY OF DEFAULT)
Probability that the debtor defaults (see definition) within a year.
CAPITALISATION POLICIES
See the definition for “Capitalisation (insurance) certificates”.
POS (POINT OF SALE)
Automated equipment with which it is possible to perform payment for goods or services to the
supplier using a debit, credit or prepaid card.
PREFERENCE SHARES
Innovative capital instruments, issued by foreign subsidiaries of the banking group, which
associate remuneration forms anchored to market rates characteristic of particularly accentuated
subordination, for example, interest not paid by the parent bank and not recovered in subsequent
years and the share of losses in the bank itself if the losses result in a significant reduction of capital requirements. The essential conditions on which preference shares are computed in the
core capital of banks and banking group are established by the Supervisory Instructions issued
by Bank of Italy.
SUBORDINATED LOANS
Financial instruments whose trading scheme envisages that the holders of the documents
representative of the loan are satisfied after the other creditors in the event of liquidation of the
issuer.
PRICE SENSITIVE
Term that generally refers to information or data that is not in the public domain, which, if it were
to be made public, would have a marked influence on the share price.
PRIVATE EQUITY
Activities related to purchasing equity interests and subsequently selling them to specific
counterparties, without public placement.
PROJECT FINANCE
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Financing of projects based on their cash flow projections. As opposed to the ordinary credit risk
analysis, the project finance technique involves not only the projected future cash flows, but also
specific elements such as the project's technical characteristics, the sponsors’ qualifications for
completing the project and the product’s placement market.
RATING
Evaluation of a company's quality or the quality of its debt securities based on its financial
solidity and its prospects
SECURITISATION RISK
Risk that the economic substance of the securitisation transaction is not fully reflected in the
measurement decisions and risk management;
BUSINESS RISK
Risk of averse and unexpected changes in profits/margins with respect to forecast data, linked to
volatility in volumes due to competitive pressures and market situations;
CONCENTRATION RISK
Risk deriving from exposures on the banking book vis-à-vis counterparts, groups of counterparts from the same economic sector or which carry out the same activities or belong to the same
geographic area. The concentration risk can be divided up into two types:
single name concentration risk;
sector concentration risk.
CREDIT RISK
Risk of suffering losses from the default of a counterparty with which a credit exposure exists;
COMPLIANCE RISK
Risk of incurring judicial or administrative sanctions, significant financial losses or damages to reputation resulting from violations of mandatory rules (legislative or regulatory) or self-regulation
(statutes, codes of conduct, self-governance codes);
LIQUIDITY RISK
Risk of non-fulfilment of payment obligations that could cause an inability to raise funds or to
raise them at costs higher than the market (funding liquidity risk) or from the presence of limits to
unfreezing assets (market liquidity risk) resulting in losses in the capital account;
MARKET RISK
Risk of changes in the market value of the positions in the trading portfolio for supervisory
purposes due to unexpected changes in the market conditions and the credit worthiness.
It also contains the risks deriving from unexpected changes in exchange rates and prices of goods
which refer to the position in the entire financial statements.
REPUTATION RISK
Risk of suffering losses from a negative perception of the Bank’s image by customers,
counterparties, Bank shareholders, investors, supervisory authorities or other stakeholders;
INTEREST RATE RISK
Current or forecast risk of a change in interest rate margins and the economic value of the company, following unexpected changes in interest rates that impact the bank portfolio;
OPERATIONAL RISK
Risk of suffering losses deriving from the inadequacy or dysfunction of procedures, human resources and internal systems, as well as exogenous events. This type of risk includes losses
from fraud, human error, operational interruptions, system unavailability, contractual breaches,
and natural catastrophes. The legal risk is included.
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EQUITY INVESTMENT RISK
Risk of losses in the Equity Investments portfolio.
RESIDUAL RISK
Risk of suffering losses from unexpected inefficiency of techniques used by companies to mitigate
credit risk (e.g. mortgage guarantees);
STRATEGIC RISK
Current or forecast risk of a drop in profit or the capital deriving from:
changes in the operating context;
inadequate implementation of decisions;
scant reactivity to changes in the competitive sphere.
SENIOR
In a securitisation transaction, it is the tranche with the highest level of privileges in terms of
remuneration and reimbursement priority.
SENSITIVITY ANALYSIS
System of analysis that measures the changes in certain assets or liabilities in relation to
fluctuations in interest rates or other reference parameters.
SEPA (SINGLE EUROPEAN PAYMENTS AREA)
Single Euro Payments Area which came into force on 1st January 2008 within which one can
gradually make and receive payments in euro with basic conditions, rights and obligations which are uniform. 31 European countries have complied (in addition to the 27 European countries also
Switzerland, Norway, Iceland and Liechtenstein). The introduction of the new consolidated
banking code IBAN (see definition) is one of the instruments used to standardise banking
transactions.
SERVICER
In securitisation transactions, this is the party that, based on a special servicing contract,
manages the loans or assets being securitised after they are sold to the special purpose vehicle
assigned to issue the securities.
SIDE POCKET
This is a measure protecting all the participants in a hedge fund (see definition), which is only
activated in exceptional cases where the sudden reduction on the degree of liquidity of the assets held in fund portfolios, associated with the elevated requests for reimbursement of the holdings,
may have negative consequences for the management of said funds. In order not to prejudice the
interest of the participants in the hedge fund, in the event that it becomes necessary to unfreeze
the assets which have become illiquid, in the absence of a market which ensures the formation of
reliable prices, the creation of the side pockets makes it possible to transfer the illiquid assets to a closed-end type mutual investment fund set up specifically (so-called closed-end side pocket).
The transaction is achieved by means of the partial spin-off of the hedge fund following which the
liquid assets continue to be held in said fund, while the illiquid ones are transferred to the side
pocket closed-end fund. The hedge fund, streamlined but liquid, continues to carry out its
activities as per the investment policy envisaged in the management regulations, while the side
pocket closed-end fund (which cannot issue new holdings) is managed with a view to the freeing up of the illiquid assets held, proceeding with the reimbursements of the holdings gradually as
the assets are liquidated.
NON PERFORMING LOANS
Loans with parties that are insolvent (even if not legally confirmed) or similar situations.
SPONSOR
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Party, other than the originator (see definition), which establishes and manages a structure of
conduits (see definition) within the sphere of a securitisation transaction (see definition).
SPREAD
This term usually refers to:
the difference between two interest rates;
the difference between the bid and ask price in securities trading;
the mark-up that the securities issuer recognises in addition to the reference rate.
SPE/SPV
The Special Purpose Entities (SPE) or Special Purpose Vehicles (SPV) – also known as “conduits” –
are bodies (companies, trusts or another entity) which are specifically set up for the achievement
of a specific, well-defined and marked out objective, or for the performance of a specific
transaction. The SPEs/SPVs have a legal structure which is independent from the other parties involved in the
transaction and, generally, do not have their own operating and management structures.
STAKEHOLDER
Individuals or groups, with specific interests in the company, or dependent on it in order to
achieve their objectives or who experience considerable positive or negative effects related to its
activities.
STOCK OPTIONS
Term used to indicate the options offered to managers in a company to purchase shares in the
company based on a fixed exercise price.
STRESS TEST
Simulation procedure used to assess the impact of “extreme” but plausible market scenarios on
the exposure to the banks’ risk.
SUBROGATION
Procedure by means of which the borrower (in other words the party who has stipulated the loan)
contracts a new mortgage loan with another bank to pay off the original loan transferring the
same guarantees to the new financing bank (in particular the mortgage) which already backed the “original” bank.
SWAPS (INTEREST RATE SWAPS AND CURRENCY SWAPS)
Transactions consisting of the exchange of cash flows between parties based on set contractual
conditions. In an interest rate swap, the counterparties exchange interest payment flows
calculated on a notional reference principal amount based on differentiated criteria (for example, a
counterpart pays at a fixed rate, the other at a variable rate). In a currency swap, the
counterparts exchange specific amounts of two different currencies, repaying them in the
established manner for both principal and interest.
RISK FREE RATE
Interest rate for an asset without risk. Used to indicate interest rates on short-term government
securities, that technically cannot be considered risk-free.
TIER I (CORE CAPITAL)
Consists of capital paid, from reserves (including share premium reserves), from innovative capital instruments (only under conditions that fully guarantee the bank’s stability)44, from profit for the
44 Innovative capital instruments can be calculated in the Tier I capital within a limit of 20 percent of the amount of the
Tier I capital, inclusive of said instruments. Within the sphere of this limit, the instruments which envisage automatic return rate review clauses (so-called step-up) associated with the faculty to reimburse or clauses of another kind aimed at encouraging the reimbursement by the issuer must be contained within the limit equating to 15 percent of the
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period, and positive prudential filters on core capital. Own shares, goodwill, intangible fixed
assets, losses for prior years and the current years, impairment calculated on the supervisory
trading portfolio and negative prudential filters on core capital are deducted.
TIER II (ADDITIONAL CAPITAL)
Consists of valuation reserves, innovative capital instruments not included in core capital, hybrid capital requirement instruments (irredeemable liabilities and other instruments reimbursed at the
issuer’s request with preliminary approval from the Bank of Italy), subordinated liabilities
(reduced by 1/5 during the five years prior to maturity), net gains on equity investments, positive
prudential filters on additional capital, any surplus of total net impairment compared to expected
losses, and positive exchange rate differences. The following negative components are deducted
from the above: net losses on equity investments, negative prudential filters on additional capital, and other negative elements.
TIER III (3RD LEVEL SUBORDINATED DEBT)
Subordinated debt that satisfies the following conditions:
they are fully paid;
they are not included in the calculation for additional capital (see definition);
they have a duration equal to or greater than 2 years, and if the maturity is not fixed, at least 2 years notice must be given for reimbursement;
they meet the conditions for similar liabilities calculated in additional capital, with the obvious exception of those related to the duration of the debt;
they are subject to lock-in clauses, based on which the principal and interest cannot be repaid if the total amount of the bank’s capital funds are less than 100% of the total
capital requirements.
TRADING BOOK
Usually identifies part of a securities portfolio, or financial instruments in general, intended for
trading purposes.
TROR (TOTAL RATE OF RETURN SWAP)
A contract under which the protection buyer (or total return payer) commits to grant all cash
flows generated by the reference obligation to the protection seller (or total return receiver), who
transfers to the protection buyer cash flows associated with a reference rate. On the coupon cash flow’s payment date (or on the contract’s expiration date), the total return payer compensates the
total return receiver any appreciation in the reference obligation. If the reference obligation has
depreciated, the total return receiver compensates the relative countervalue to the total return
payer. Essentially the TROR is a structured finance product, consisting of the combination of a
credit derivative and an interest rate derivative (or interest rate swap – see definition).
ON LINE TRADING
System for buying and selling financial assets on the stock exchange, usually via screen-based
means.
TRIGGER EVENT
Predefined contract event that, if occurs, gives certain powers to the counterparties.
UNIT-LINKED
Life insurance policies connected to investment fund values.
UPPER TIER II
Hybrid capital requirement instruments that are included in additional, or Tier II, capital (see
definition) when the contract provides that:
amount of the Tier I capital inclusive of said instruments. Any surpluses must be calculated in the Tier II capital, in the same way as hybrid capitalization instruments.
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a) in the event of financial losses that result in a reduction in capital paid and reserves that
are lower than the minimum capital levels required for banking activities, the repayment
amounts for these liabilities and interest accrued may be used to offset the losses, so that
the issuing entity can carry on its business;
b) in the event of negative management performance, the repayment right may be suspended as is necessary to avoid or limit losses to the extent possible;
c) if the issuing entity goes into liquidation the debt is repayable only after all other creditors
not equally subordinated are repaid;
Redeemable hybrid capital requirement instruments must have a duration equal to or greater than 10 years. The contract must have an explicit clause that subordinates repayment of the loan
upon permission from the Bank of Italy.
US GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES)
Accounting standards issued by the FASB (Financial Accounting Statement Board), generally
accepted in the USA.
VAR (VALUE AT RISK)
Measures the maximum potential loss that a position in a financial instrument or portfolio would
sustain under a defined probability (confidence level) in a fixed time period (reference period or
holding period).
WARRANT
Negotiable instrument that grants the bearer the right to purchase from the issuer or sell to the
issuer fixed-income securities or shares based on precise conditions.
ZERO-COUPON
Bonds without coupon payments, whose return is determined by the difference between the issue
price (or purchase price) and the repayment value.
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Independent Auditors’ Report
264
Report of the Board of Statutory Auditors UBI Banco di Brescia REPORT OF THE BOARD OF STATUTORY AUDITORS IN ACCORDANCE WITH ARTICLE 2429 OF THE ITALIAN CIVIL CODE Dear Shareholders,
Since Banco di Brescia San Paolo CAB S.p.A. is fully controlled by Unione di Banche Italiane
S.c.p.a. (UBI Banca S.c.p.a.), a company listed on the Borsa Italiana stock exchange, Article 165
of Legislative Decree No. 58 of 24th February 1998 applies, which delegates the controls pursuant
to Article 155 concerning auditing of the accounts and of the annual statutory financial statements to the independent auditors and this is also implemented by Article 21 of the Articles
of Association. Moreover, the Board of Auditors has overseen the overall preparation of the
financial statements and their general compliance with the law with regard to their compilation
and structure.
The financial statements for the year ended 31st December 2009 were drawn up in accordance with the international accounting standards issued by the International Accounting Standards
Board (IASB) as approved as of the date of drafting of the same as well as the related
interpretations of the International Financial Reporting Interpretation Committee (IFRIC). The
results in the balance sheet and the income statement for the year ended 31st December 2009
taken from the financial statements are summarised as follows:
Assets € 22,680,420,333 Liabilities and provisions € 21,393,715,197
Shareholders’ equity € 1,157,732,268
Profit for the year € 128,972,868
The income statement confirms the balance sheet results given above and is composed of the
following principal items: Net financial operating income € 494,852,607
Profit on continuing operations before tax € 200,559,665
Taxes on operating income for continuing operations € - 71,586,797
After tax profit on continuing operations € 128,972,868
After tax profit on discontinued operations € 0
Profit for the year € 128,972,868 The Board of Statutory Auditors reports that it has examined the Independent Auditors’ Report on
the financial statements for the year ended 31st December 2009 in accordance with Articles 156
and 165 of Italian Legislative Decree No. 58 of 24th February 1998 issued by the Independent
Auditors Reconta Ernst & Young S.p.A. from which no irregularities emerged.
In the opinion of the Independent Auditors, the financial statements for the year comply with the regulations governing their preparation and therefore they are clearly stated and provide a true
and fair view of the capital and financial position, the operating results, the cash flows, and the
Director’s report is consistent with the financial statements.
The Board of Statutory Auditors in agreement with the Independent Auditors has found that the financial statements for the year and the Directors’ report contain “Information to be provided in the financial reports on a „going concern‟ basis of the company, on financial risks, on testing assets for impairment and on uncertainties in the use of estimates” required pursuant to the Bank of Italy,
Consob (the Italian Stock Exchange Regulatory Agency) and Isvap (insurance authority) document No. 2 of 6th February 2009. The statements and report also contain the “Information to be provided in the financial reports for asset impairment tests, the contractual clauses of financial payables, the restructuring of debt and the Hierarchy of the fair value” envisaged by the Bank of Italy, Consob
(the Italian Stock Exchange Regulatory Agency) and Isvap (insurance authority) document No. 4 of
3rd March 2010. In accordance with Article 2429.2 of the Italian Civil Code, the statutory auditors report that it
was not necessary to adopt the exception pursuant to Article 5.1 of Italian Legislative Decree No.
38/2005 in the preparation of the annual financial statements. More specifically, the Statutory
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Board of Auditors notes that in preparing the financial statements, the Bank did not consider it
necessary to take advantage of the options granted by “EC Regulation No. 1004/2008” of the European Commission on amendments to IAS 39 “Financial instruments: recognition and measurement” and therefore it has not performed any reclassifications of financial assets
currently held in the portfolio pursuant to the new provisions contained in IAS 39.
The annual financial statements and the report on operations which accompanies it fully illustrated the company’s situation, its performance during the last year and the outlook for its
business activities. Banco di Brescia S.p.A. is subject to the management and co-ordination
activities of Unione di Banche Italiane S.c.p.a. and the relative information required by current
regulations is contained in the notes to the financial statements and in the Directors’ report.
During the course of the year the Board of Statutory Auditors performed its supervisory activities as required by law and by Bank of Italy instructions, also taking account of the standards of conduct recommended by the Italian Accounting Profession (Consiglio Nazionale dei Dottori Commercialisti ed Esperti Contabili). In detail the Board of Statutory Auditors:
. attended shareholders’ meetings (2) and meetings of the Board of Directors (19) and of the
executive committee (13) in which it acquired information from these authorized bodies on the
general performance of operations and on the outlook for business as well as on the most
important transactions in terms of size or nature performed by the company; . performed periodic inspections (19), also making use of those organisational units which perform
functions of control, mainly the internal auditing division. Systematic and continuous relations
were established with this division by means of the examination of the reports that it made to the
auditors, periodic meetings and specific checks requested by the auditors. The Board of Statutory
Auditors also held meetings during the year with other second level control divisions (Compliance, Risk Management, CFO);
. acquired information on organisational developments in the Bank in light of the merger between
the Banche Popolari Unite Group and the Banca Lombarda e Piemontese Group, with particular
reference to the effects deriving from the internal control system adopted by the UBI Group;
. held periodic meetings with the independent auditors designed to exchange significant
information and data for the performance of our respective duties, and the results of the work performed by the independent auditors was also analysed. The independent auditors also
informed the Board of Statutory Auditors that it had found no irregularities;
. performed the required inspections concerning the foreign Luxembourg branch;
. oversaw compliance with the law and with anti-money laundering and anti-money lending
regulations in particular, as well as compliance with the Bank of Italy regulations related to its specific business;
. acquired information on the implementation of credit, market, liquidity and operational risk
management policies, assisted by meetings with the risk management divisions, also in light of
the integration of the Bank within the UBI Banca Group. The Board of Statutory Auditors reports
that information has been provided in the notes to the accounts on policies to monitor and hedge
risks adopted by the Bank, also in compliance with Bank of Italy Circular No. 262 of 22nd December 2005;
. acquired information on the update of the organisational model pursuant to Italian Legislative
Decree No. 231/2001 and attended meetings with and followed the activities of the related
supervisory body;
. acquired information on the action undertaken to implement EC Directive No. 2004/36/EC (known as the MIFID Directive);
. did not issue any opinions;
Following the activity performed, the Board of Statutory Auditors:
. found that the principles of proper administration had been observed and that the law and the
Article of Association had been complied with. It can also reasonable state that the action resolved
by the governing body was not manifestly imprudent, risky or in conflict of interest or such as to compromise the integrity of the company’s assets;
. assessed the adequacy of: the organisational structure, within the scope of its responsibilities;
the system of internal controls, with particular regard to monitoring credit, market, interest rate
and operational risk; the administrative and accounting systems; the reliability of the latter in
accurately recording operating events. In this respect the Board of Statutory Auditors also oversaw the progress of the Compliance Division’s structure and monitored the action for making
the organizational set-ups and internal audit procedures efficient.
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The Board of Statutory Auditors did not receive any complaints pursuant to Article 2408 of the
Italian Civil Code.
In conclusion, in the course of its supervisory activities as described above, the Board of Statutory
Auditors found no additional significant events of a nature sufficient to require mention in this
report. Dear shareholders,
As the outcome of the matters reported above, the Board of Statutory Auditors expresses its
opinion in favour of approving the annual financial statements, accompanied by the Director’s
report, and the proposal for the allocation of the profit for the year which has been submitted to
you by the Board of Directors. Brescia, 22nd March 2010.
The Board of Statutory Auditors s/ Paolo Golia (Chairman of the Board of Statutory Auditors)
s/ Eugenio Ballerio (Standing Auditor)
s/ Angelo Antonio Bertoni (Standing Auditor)
s/ Alessandro Masetti Zannini (Standing Auditor)
s/ Antonio Minervini (Standing Auditor)
