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					RELATIONS
E
ANNUAL REPORT

to
December 31, 2009
                               Reports and
                                ANNUAL
                                REPORT
                     AS OF DECEMBER 31,
                     2009




Banca Popolare di
Ancona Limited Company
Part of the "Gruppo UBI Banca"
€ 122,343,580.00 fully paid-up share capital
Entry in the register of companies of Ancona, Tax Code and VAT 00078240421 05308.2
ABI; Register of Banks No. 301, Register of Banking Groups No 3111.2
Headquarters and Headquarters: Jesi (An), Via Don A. Battistoni n.4
Member of the Interbank Fund for Deposit Protection Fund and the National Guarantee

2
Index
 Our "Mission" ............................................. .................................................. ..... Positions
4 and Headquarters ............................................ ................................ 5 Spatial
Articulation of UBI Banca Group ........................................... ................ 6 The rating
............................................... .................................................. ....................... 7 Key
figures and indicators ............................................. ............................................ 1 0
Report.                ..................................................          .........................................   1
1page5page6page7page10page11
   The reference scenario .............................................. ............................................... 1 2 L
  activities of the Banca Popolare di Ancona in 2009 .......................................... .............. 2 2
  The system of internal control ............................. .................................................. ........ 3 6
  reclassified financial statements .................................... .............................................. 3 7 L
  activities Research and development .............................................. .........................................
  4 7 Contracts with Group companies. .................................................. More information
  ................................ .............. 4 8 .................................................. ....................... 4 9
  Significant events after the end of year ................ .................................. 6 1 outlook ..........
  .................................................. Proposals meeting all ................ 6 1 .............................
  ..................................................                                    ..................                                6
  2page22page36page37page47page48page49page61page61page62
Financial Statements ................................................ .................................................. ...
63
   Balance ................................................ .................................................. ...... 6 4 Income
  ........................................ .................................................. ............... 6 5 Statement of
  Comprehensive Income ............................. ............................................. 6 6 Statement of
  Changes             in       Shareholders'             Equity           ............................................... ..................
  ............................ 6 7 Cash Flow .................................................. ................... 6
  9page65page66page67page69
            The Notes ............................................... .................................................. ... 7 0 Part A -
  Accounting Policies ........................................ ............................................... 7 1 A .1 - General
   Part ............................................. .................................................. .... 7 1 Section 1 Statement
                 of Compliance with international accounting standards ............ 7 1 Section 2 Basis of
       preparation ............... ............................................... 7 1 Section 3 Events after the balance
  sheet date .......................... 7 3 Section 4 Other aspects ......... ..................................................
  ............................. 7 3 List of IAS / IFRS endorsed by the European ......... ................. 7 6 A.2 -
      the major budget items .................... ................................ 8 0 A.3 - Information on fair value
                                                             ........ .................................................. ..................... 10
                                              2page71page71page71page71page73page73page76page80page102
 Part B - Balance Sheet ........................................... ............. 10 5 Part C - Income
Statement ............................ ................................. 14 4 Part D - Comprehensive income
.......... .................................................. ................ 16 1 Part E - Information on risks and
hedging policies .................... 16 2page144page161page162
        Section 1 Credit Risk ............................................. ................................ 16 2 Section
       2 Market risks ........... .................................................. ................ 18 1 Section 3 of
       liquidity risk ........................... ................................................ 20 5 Section 4
       Operational              risk         ..............................................       ................................ 21
       2page181page205page212
 Part F - Information on capital ............................................ .......................... 21 8 Part G
- Business Combinations company or business ......... .... 22 3 Part H - Transactions with
related parties ..................................... .............................. 22 4 Part I - Share-based
payments Equity-....... ............ 22 9 Part L - Segment ..............................
.................................................     23      0      Attached          to      the      Financial          Statements
........................................... ...................................... 23 1 Report of the Independent
Review ..... .................................................. ................. 25 6 Report of the Board
...........................                               ..................................................                        7
.25page223page224page229page230page231page256page257
3
Our "Mission"




       We are an alliance of banks, rich in history, united by a
        federal model, integrated and multifunctional, capable of
        enhancing the strength of the distribution and sales
        network to deliver the market's potential synergy.



      We are strongly involved in the economic and social life of the
         territory where we operate, with a distinctive ability to
          interpret, serve and promote the development of local
                                economies.



          We pursue the goal of promoting progress and create
           value for all our stakeholders.




         We support the development of a healthy economy and
        business, we grow with our customers with products and
                         services of excellence.



    (From "The Charter of Values" of the UBI Banca Group, approved January 29,
    2008)

4
Company Officers and General Management

BOARD OF DIRECTORS

Chairman                         Dr. Corrado Mariotti (*)

Vice Chairman                    Mr. Antonio Martinez (*)

Deputy Chairman                  Dr. Pietro Paolo Petrelli (*)

Councillors                      Dr. Giampiero Auletta Armenise (*)
                                 Cav. Salvatore Fortuna
                                 Mr. Rodolfo Giampieri
                                 Mr. Pierangelo Gramignola (*)
                                 Dr. Paolo Leonardi
                                 Dr. Enrico Loccioni
                                 Prof. Silvio Mantovani (*)
                                 Lawyer Graziano Pambianchi
                                 Lawyer Piero Peppucci
                                 Mr. Renato Picciaiola
                                 Prof. Andrea Pisani Massamormile


(*)       Executive Committee members


BOARD OF STATUTORY AUDITORS

Chairman                         Dr. Roberto Barbieri

Statutory Auditor                Dr. Massimo Albonetti
                                 Dr. Maurizio Vicentini

Alternate Stat. Aud.             Dr. Giuseppe Mastri
                                 Dr. Pecuvio Rondini

GENERAL
MANAGEMENT

General Manager                  Rag. Luciano Goffi

Deputy General Manager           Dr. Nunzio Tartaglia

Deputy General Manager           Rag. Genesio Rispoli

INDEPENDENT
AUDITORS

KPMG SpA



      -   Situation on December 1, 2009 -


                                                                      5
Territorial structure of the UBI Banca Group




6
The rating
The following tables summarize the opinions of rating assigned to the Group by the
international agencies Standard & Poor's, Fitch Ratings, Moody's.

In March 2009, in relation to the deterioration of the economic scenario in place, Standard
& Poor's had brought the Outlook to Positive by UBI Banca Stabile. That same month, in
addition, the agency had made a general downward revision of ratings on a hybrid extension
to three or more notch rating differential with their issuers. As a result, S & P's rating on
the preference shares UBI Bank has increased from BBB to BBB, equivalent to just three
notches lower than the issuer rating A.

On 1 July 2009 Moody's, at the end of the process of reviewing credit ratings began May 18
and on 22 Italian banks, has announced the confirmation of the Bank Financial Strength
Rating of UBI Bank, equal to C, (and the associated BCA, Baseline Credit Assessment of at
A3) with Negative Outlook. The long-term rating, equivalent to A1 with a stable outlook, it
was confirmed on June 18, 2009.
Even Moody's in 2009 completed the process of reviewing its rating methodology of the
hybrid. The rating of these instruments has been released by the reference to "long-term
debt and deposit ratings, which also incorporates an assessment of the likelihood of
intervention of external support, but was directly related to
"Bank Financial Strength Rating" (and related to the "Baseline Credit Assessment") as an
expression of the inherent strength of the borrower.
Consequently, on November 18 have been placed under observation for possible
Downgrade 775 titles worldwide. On February 9, 2010 Moody's adjusted the rating of hybrid
instruments issued by Italian banks, bringing its rating on the preference shares
UBI Banca from A3 (equivalent to "long-term debt and deposit rating two notches less) to
Baa3 (corresponding to at least three notch BCA) 2, with negative outlook.
Finally, with regard Fitch Ratings, October 14, 2009 the agency has confirmed the value
judgments in place with a stable outlook.
At the beginning of 2010, Fitch has published a review of the rating methodology on
hybrids, in the context of which was provided for an expansion of the scale of application,
compared to notch rating of reference, the deafult Issuer Rating. This resulted in a general
downgrade of 592 bank instruments examined in the world - officially announced by
January 29, 2010 - to the extent of one notch for almost all cases. In detail, the rating on
the preference shares UBI Banca is increased from A to A-3.

In all cases of the hybrid above downgrade it was purely technical interventions, which have
nothing to do with the assessment of the intrinsic strength of UBI Banca.




Preference shares and subordinated long-term or perpetual (Upper Tier II) with payment of interest referred to it.


2   At the same time Moody's to issue Upper Tier II of UBI Bank in circulation, which expired on 23 February 2010,
    rose from A2 (equivalent to long-term rating one notch less) to Baa1 (equivalent to less than a BCA notch).
3   At the date of the press was still in place the issue of Upper Tier II UBI Banca expired February 23, 2010, whose credit rating was lowered by similar

    Fitch to A-.
                                                                                                                                                             7
    STANDARD & POOR'S
                                                          (I) Ability to repay debt maturing in less than 1
    Short-term Counterparty Credit            A-1
                                                               year
    Rating (s)                                                (A-1: best rating - D: worst rating)
    Long-term Counterparty Credit                         (ii) With reference to debt for a period
    Rating (ii)                                A               exceeding one year, means the capacity to
    Outlook                                  Stable            pay interest and repay principal, together
    REVIEWS ON EMISSIONS                                       with a sensitivity to the adverse effects of
    Senior unsecured debt                      A               any change of circumstances or
    Subordinated debt (lower tier II)          A-              to changing economic conditions (AAA: best
                                                               rating - D: worst rating)
    Tier III Subordinated debt               BBB+
    Preference shares                         BBB
    French Certificats de Dépôt
    Programme                                 A-1




    MOODY'S                                                       (I) capacity to repay foreign currency debt
    Long-term debt and deposit ratings (I)     A1               local       long term         (Maturing         or
    Short-term debt and deposit ratings                                                                        th
                                             Prime-1            more           a     1 year. Through             e
    (II)
                                                                methodolog
                                                                y                JDA (Joint Default Analysis)
    Bank Financial Strength Rating              C                           ratin associate
    (BFSR) (III)
                                                                this        g              d      TO strength
                                                                financial
                                                                planners         intrinsic    (Bank Financial
    Baseline Credit Assessment (BCA)           A3
                                                                Strength                   Rating) evaluation on
    Outlook (deposit ratings)                Stable
                                                                probability of intervention in case of
    Outlook (Bank Financial Strength
                                             Negative                           necessary, by external support
    Rating)
                                                                (Shareho
                                                                lders,       group        of membership or
    REVIEWS ON EMISSIONS                                              official institutions) (Aaa: first quality -
    Senior unsecured LT                        A1               Baa3 quality)
    Senior unsecured ST                        P-1
                                                                 (II) capacity to repay foreign currency debt
    Lower Tier II subordinated                 A2                      local short-term (maturity of less than
    Tier III Subordinated                      A2               1 year)
    Preference shares                         Baa3              (Top-1: top quality               - Not Prime:
    (Formerly BPB-CV and Banca
    Lombarda)
                                                                speculative grade)
    EUR Commercial Paper Programme           Prime-1
    French Certificats de Dépôt
                                             Prime-1    This rating does not relate to the ability
                                                        (III)
    Programme
                                                                         Debt
                                                        reimburs        securiti
    Covered Bond                         Aaa
                                                     of ement       of    es,    but takes      in
                                                                       t
                                                                       h    strengt     financial
                                                     account           e    h           planners
     bank's intrinsic (through the analysis of factors such as geographical locations, the
     diversification of activities, financial fundamentals), in the absence of external media (A:
     best rating - E: worst rating)




8
                                                      (1)    Capacity to repay debt in the short term
      FITCH RATINGS
                                                             (lasting less than 13 months) (F1: best
      Short-term Issuer Default Rating (1)    F1             rating - D: worst rating)
      Long-term Issuer Default Rating (2)     A+
                                                      (2) Ability   to deal with financial commitments
      Bank Individual Rating (3)             B/C
                                                            over the long term regardless of the maturity
      Support Rating (4)                       2            of individual bonds. This rating is an
      Support Rating Floor (5)               BBB            indicator of the probability of default of the
      Outlook for Long-term Issuer Default                  issuer (AAA: best rating - D: worst rating)
      Rating                                 Stable
                                                      (3)    Evaluation of the intrinsic soundness of the
      REVIEWS ON EMISSIONS                                   bank (profitability, balance the budget, the
      Senior unsecured debt                   A+             commercial network, capacity management,
      Lower Tier II subordinated               A             operational context and perspective), given
      Preference shares                       A-             in cases where the same can not rely on
      Tier III Subordinated debt              A-             external support (if any intervention of a
      EUR Commercial Paper Programme          F1             lender of last instance, support
      Covered bonds                           AAA


      shareholders, etc.).
      (A: best rating - E: worst rating)
(4)   Judgement on any chance, adequacy and timeliness of outside intervention
      (By the state or large institutional reference) if the bank was in difficulty (1: best rating -
      5: worst rating)
(5)   This rating gives additional information, which is closely related to the support rating, as
      it identifies, for each level of the Support rating, the minimum level that, in case of
      negative events, could reach the Issuer Default Rating.




                                                                                                        9
Key figures and indicators
(in millions of euro)




  Banca Popolare di Ancona SpA                                                    31/12/2009     31/12/2008



EQUITY, ECONOMIC, OPERATING AND STRUCTURAL FIGURES

Loans to customers                                                                       7.332          7.744

of which impaired                                                                         508             356

Direct customer deposits                                                                 7.996          8.528

Indirect deposits from customers, including insurance savings (at market value)          3.671          3.576

Total financial wealth                                                                  11.667         12.104

Shareholders’ equity (not including profit for year)                                      867             763

Current operating income before taxes                                                      22             188

Profit for the year                                                                        12             137

Average Number of Employees                                                              1.787          1.776

Number of operative banks (*)                                                             256             259


STRUCTURAL INDICATORS

Loans to customers and / deposits from customers                                        91,69%         90,81%

Managed deposits (including insurance)/indirect deposits                                52,79%         55,34%


PROFIT AND PERFORMANCE INDEXES'

ROE (Profit for year/Shareholders equity excluding profit for year)                      1,40%         18,02%

ROE net of non-recurring components                                                     -0,60%          8,76%

COST / INCOME 1 (operating expenses/operating revenue)                                  65,49%         53,40%
COST / INCOME 2 (operating expenses + value adjustments on loans/operating
revenue)                                                                                97,49%         74,20%

Tax rate                                                                                41,20%         23,67%

Normalized tax rate                                                                    195,56%         41,44%

Interest margin/operating revenue                                                       64,74%         66,79%

Net fees/operating income                                                               30,97%         29,43%

Net fees/personnel expenses                                                             87,43%         99,67%

Net adjustments on loans / Loans to customers                                            1,58%          1,22%


RISK INDEXES'

Non-performing/ loans to customers                                                       2,85%          1,61%

Impaired/ loans to customers                                                             6,93%          4,59%

% coverage non-performing                                                               53,76%         59,40%

% coverage total impaired loans                                                         36,75%         37,96%

% COVERAGE performing loans                                                              0,89%          0,85%


EQUITY COEFFICIENTS

Tier 1 capital/Weighted risk activity                                                   12,12%         10,84%

Regulatory capital / Weighted risk activity                                             12,48%         11,39%




The indicators have been reclassified using data reported in chapter
"Balance Sheet and Income Statement."


10
Report on
  Management




               11
The reference scenario
The most critical phase of the financial crisis, reached in September 2008 with the collapse
of Lehman Brothers, has been substantially depleted during the first quarter of 2009.
Improving economic prospects el abundant liquidity provided by central banks have in fact
reflected in a general recovery in prices of financial instruments: the diminished risk aversion
and the low level of interest rates in major economies have encouraged investment flows to
currencies and activities with higher expected returns, the risk premiums on corporate
bonds narrowed further, the interbank markets are almost back to normal.
In the area of credit, the major international banks have continued to strengthen their
capital structures through recapitalization, resorting to the market in most cases, while the
premiums on credit default swaps, which in October 2009, had already returned to values
observed eve of the bankruptcy of Lehman Brothers, have continued to fall in the last quarter
of the year, but still remain well above levels in the first half of 2007.

However, on the global economy continues to weigh a high uncertainty associated with the
transient nature of the main factors that have hitherto sustained and with the braking action
exerted by excess capacity, the high levels of unemployment and public debt, increased
appetite from savings by households.

On the monetary front, given the fragility of the recovery process, the major central banks
announced a gradual reduction of non-traditional measures adopted after the outbreak of
the financial crisis 4, it continues to provide the necessary degree of liquidity through the
temporary retention rates Reference levels in many cases close to zero 5.
In 2009 he opened the debate on reforms to be undertaken to prevent the recurrence of
financial crises in the future. In particular:
    in Europe, in May after the publication of a proposal to reform the supervision of the
       financial system, the European Commission presented in September, a draft of
       legislation that would give effect to the new architecture. The project envisages the
       establishment of a European Council which will oversee macro-prudential (European
       Systemic Risk Board) 6, while the supervision of individual institutions is attributable
       to the European system of financial supervisors (European System of Financial
       Supervisors), consisting of


4   At its meeting on 16 December 2009 the Federal Reserve, confirming the intention to maintain an expansionary
    direction for a period of time, said he did not believe more must be renewed, they expire at the beginning of
    February, most of the measures introduced during the crisis to provide liquidity to the markets and swap lines
    agreed with other major central banks also announced its intention to further reduce the amount of funding
    provided in the context of the Term Loan Facility Asset-Backed Securities.
    At its meeting in early December including the ECB, while confirming the commitment to provide the necessary
    liquidity to the banking system of the euro area, has taken some decisions to begin the gradual removal of the
    refinancing of an exceptional nature no longer considered essential. Among other things, the Council decided that
    the main refinancing operations will continue to be conducted as fixed rate tenders with full allotment required in
    each case at least until mid-April 2010. At the end of March 2010 will be carried out with the last operation lasted
    six months. In December, however the last auction was conducted at 12 months in which the rate was fixed at a
    value equal to the average of the minimum bid rate that will be used in the temples, a main span of the duration
    of operation. It also continued the purchase of bonds (covered bonds) issued in the area for a total of about 28
    billion of a total of 60 expected until July 2010 in the context of the program approved in June by the Council.
    After communicating, at the end of October, the intention not to extend some of the measures taken to create
    liquidity in a special meeting at the beginning of December, the Bank of Japan, to help bring down the long-term
    interest rates, has announced plans to enter new liquidity in the market for 10 trillion yen in loans secured by
    three months at a rate of 0.1%.
5   In the fourth quarter of 2009, only Australia, Israel and Norway have increased their benchmark interest rates. In
    February 2010, the Fed, while confirming the reference rate at very low levels, noted the continued improvement
    in financial market conditions, raising to 25 bp the official discount rate from 0.50% to 0.75%.
6   The Council has the mandate to monitor and identify the risks of the financial system as a whole and to report
    this to the finance ministers and other leaders of the countries of the Union.
12
        agencies and national supervisory authorities of three new committees will cover
        banks, insurance companies and financial markets 7;
        ocean on the other side of the U.S. administration announced in June a plan to
        reform the regulation and supervision of the financial system. In December, the
        House approved a bill while the Senate is still under discussion, a draft choice: the
        bill provides for the establishment of a
        Financial Stability Council, made up of regulatory authorities, including the Fed,
        which will identify and regulate financial institutions considered systemically
        important. The draft alternative, however, seriously limiting the powers conferred
        upon the Federal Reserve in terms of oversight and regulation;
        in December, the Basel Committee on Banking Supervision (CBSB) has published two
        consultation documents containing proposals for a strengthening of capital
        requirements and liquidity of banks operating internationally. The new measures,
        together with changes made in July 2009 to plant
        Basel II 8, should contribute to overcoming the deficiencies in regulatory oversight
        and risk management of the banking system highlighted by the financial crisis.


The macroeconomic framework
According to the International Monetary Fund in 2009, world GDP is expected to
modest 0.8% (versus +3% in 2008) thanks to a gradual
strengthening of the recovery in the second half of the year, albeit at different rates
between
  different countries: more moderate to advanced ones, the more accelerated for emerging
                                                                                       economies,
       particularly those in Asia. The recovery also extended to flows of international trade,
       has benefited from the expansionary policies and taken new force from the expected
      slowdown in some countries, the fall in stocks, as well as by the improved conditions
                                financial markets, accompanied, however, to a general increase in
unemployment and public debt.
      The inflation, after reaching negative levels in the summer, came back positive in the
                                                                                  months following
       reflecting on the one hand, of running out of the base effect of the decrease in prices
           energy that occurred in the second half of 2008 and, on the other hand, a rise in
                                                             Prices of some commodities.
Changes in the price of oil (Brent) in 2009         Graph 1
                                                             As      is            Graph 1 shows,
85
                                                                after declining in February 2009
                                                                    under $ 40 a barrel, the price
80
                                                             of oil         Brent           rapidly
75                                                           slope,       stabilizing        in last
70                                                                  quarter in the range between
                                                                               T
                                                                     DOLLA h             ha
65                                                           70-80 RS.         e Brent s Closed
                                                             the                       U.S. dollars
60                                                           year a 77,93               (+70.9% in
                                                                         month
                                                             twelve      s,             confirming
55
                                                                                            LEVEL
                                                             substantially       on these          S
50
                                                             banks in       first    weeks        of
45                                                           2010, in the presence of increasing
                                                                                            doubts
                                                                                             recove
40                                                           on       consistency of              ry
                                                             economic
35                                                           progress.
   G   F   M    A   M   G    L   A    S   O    N   D

                                                       In the second half of the year the
U.S. economy out of recession, but concerns remain about the estate recovery: in the fourth
quarter, GDP grew by 5.9% annualized (2.2% in the third), supported more by the restocking
that any actual increase in consumption, whose contribution was rather small compared to
the summer months, is back after nine quarters of positive, albeit marginal, the contribution
of fixed investment in the framework of which the component
7   The three authorities will be responsible for proposing new technical standards for prudential rules, to resolve
    disagreements between national supervisory authorities, to ensure the application of Community rules and play a
    coordinating role in emergency situations.
8   On 13 July 2009 CBSB has published three documents containing measures to strengthen capital requirements
    on the re-securitization trading book and a series of recommendations on risk management practices and
    disclosure, especially for securitization activities, trading and off-balance sheet exposures.
                                                                                                                 13
residential read more a     appear
weak, but also the exchange               Changes in the euro-dollar and dollar-yen in 2009           Chart No.2
                                                                                                                   10

business has improved.                   1,56                                                                      2



Overall, the average years of            1,52
                                                                                                                   10
                                                                                                                   0

                            reduce
GDP U.S.             is is d           of
2.4%, the stronger the contraction       1,48                                                                      98



1946.                                    1,44                                                                      96

                         th
On front currency, e graph             2
shows          as              to initial1,40                                                                      94


strengthenin
g                       of     currency  1,36                                                                      92

U.S.            respect     a       that
European Union was followed by an        1,32                                                                      90


impairment       up a share 1,51         1,28                                                                      88

U.S. dollars per euro, with a
subsequent
recovery       that      is        gone  1,24
                                                G   F   M    A    M      G    L     A     S   O   N      D
                                                                                                                   86


more pronounced in the first weeks
2010. In late December, the currency
Publicly traded U.S. $ 1.4316 per euro (2.4% compared with $ 1.3978 at the end
of 2008).
On the labor market, the unemployment rate has gradually risen from 7.4% in December
2008 to 10.1% in October, the highest level since June 1983 and remained at 10% in
November and December. In 2010 there were signs of improvement (9.7% in January).
The inflation - negative between March and October with a minimum in July (-2.1%) - is
rising rapidly in the last two months to 2.7% in December (-0.4% compared to the average
annual rate of 3 , 8% in 2008). The inflation "core" (excluding food and energy) remained
largely unchanged (1.8% in December, as twelve months before).
As for the "twin deficits", the federal deficit more than doubled to 1.4712 trillion dollars, from
680.5 billion in 2008, burdened by a number of measures to support economy launched by
the Obama administration to combat the crisis. On the contrary - despite a growing
dynamics of imports in the last months of the year - the negative balance of trade balance
was nearly halved 695.9000000000-380.7000000000 dollars, benefited from significant
reduction of debt to countries
OPEC (-115.8 billion).

Despite the danger of China, Japan was able to confirm in 2009 as a second world economy
due to the results of the last quarter when the GDP grew by 1.1% over the previous period,
driven primarily by exports - particularly to the euro area, the United States and emerging
countries of Asia - also benefit from a positive contribution of domestic demand, for the first
time since early 2008.
Resulted in the expansion of industrial production (1.9% in short-term in December, the
tenth consecutive improvement, 5.1% on an annual basis after the heavy falls in previous
months) and exports, helped by the depreciation of the yen against both the dollar (2.5%) of
both the euro (5.1%). In this first part of 2010, however, act in a strengthening of Japan's
currency compared to the major world currencies, which, if confirmed in the medium term,
could undermine the consolidation of the recovery.
On the labor market, after the peak in July (5.7%), the unemployment rate was reported at
5.1% in December (4.1% on average in 2008).
The Tankan report in December reported a further improvement compared with September,
the climate of business confidence, although lower than expected for large ones.
On the price front, the deflationary trend in place since February 2009 lasted until the end of
year (-1.7% in December), although in mitigation from their peak in October (-2.5%), (1, 4%
of the average change in prices in 2008).

With an average annual growth rate equal to 8.7% in gradual acceleration (10.7% in the
fourth quarter), China is now about to become the second world economy. The activity was
mainly driven by fixed investment (30.1% in twelve months), and private consumption
(15.5%). Industrial production grew an average of years of 11% (12.9% in 2008), showed a
strong recovery in the latest quarter (18% in terms of trend). The positive balance of trade
balance has been reduced to U.S. $ 196.1 billion (-33.6% from 295.5 billion in 2008),
reflecting a decrease of exports (-16%) more marked than that of the imports (-11.2%), but
foreign exchange reserves are still to climb
14
2.4 trillion dollars (23.3%) of which a significant proportion (about 750 billion), although
declining, invested in U.S. government bonds.
The yuan, pegged to the new value of the dollar, it is slightly devaluing against the euro
(2.4%), while inflation, years of negative media (-0.7%), returned to positive levels in the
latest two months (1.9% in December).
To counter the risk of speculative excesses in real estate and limit exposure to this sector in
the balance sheets of banks, the Chinese authorities have lifted a number of recently
introduced tax incentives. In addition, to curb the dynamics of credit,
People's Bank of China has increased by 50 basis points respectively in January and
February 2010, the ratio of reserve requirements of banks, now at 16.5%, and by increasing
the drainage of liquidity from the market through open market operations.

Even for the economies of the emerging countries the last months of the year have been
taught to her recovery.
In India, the cyclical upswing has gone beyond expectations (7.9% change in the trend of the
GDP in the third quarter after 6.1% the previous three months), due to conditions of
expansionary monetary and fiscal policy have argued that private demand and investment.
Have benefited in particular industrial activity and services sector while the recovery in world
trade has boosted exports, growing again in November after thirteen consecutive months of
negative changes. In parallel, inflation has also accelerated (7.3% in December), supported
by the price of food.
After three operations in January, March and April, with which the RBI had reduced the total
of "repurchase rate" from 6.50% to 4.75%, monetary policy has maintained a policy
accommodative, without further action on the rate reference.
Aided by the cyclical improvement and the rise in world oil prices and commodity prices, the
Russian economy seems to have passed the point of minimum. The most recent estimates
for the 2009 show, however, a sharp contraction in GDP of 7.9%, the sectors most affected
were those of construction (-16.4%), tourism (-15.4%) and manufacturing (-13.9%). In the
short term the outlook remains subject to passing a series of structural problems: the
weakness of consumption linked to low income, difficulties in the banking system to provide
loans, the high dependence on foreign manufacturing, inflation risks (10, 7% in September)
related to the abundant liquidity injections into the system, the high deficit of the state. In
the course of the year the Russian central bank has lowered in 10 circumstances, the
reference rate from 13% to a record low of 8.75%.

Actual and forecast
(Percentages)    DOMESTIC PRODUCT           Consumer prices or      UNEMPLOYMENT            SECTOR DEFICIT
                      GROSS                  (Annual average)       (Annual average)        (% Of GDP)                        Reference rates


                 2008    2009    2010(1)   2008   2009   2010(1)   2008   2009    2010(1)   2008    2009    2010(1)        Dec-08       Dec-09
UNITED STATES      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
JAPAN             -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
EURO AREA          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
ITALY             -1,3    -5,0    0,8       3,5    0,8     1,5      6,7    7,7     9,0       2,7     5,3     5,9                  -          -
GERMANY            1,3    -5,0    1,5       2,8    0,2     1,4      7,3    7,5     8,3       0,0     3,6     4,9                  -          -
FRANCE             0,4    -2,2    1,3       3,2    0,1     1,4      7,9    9,5     10,3      3,4     8,5     8,2                  -          -
SPAIN              0,9   -3,7     -0,4      4,1   -0,3     0,9     11,4   18,2     20,0      4,1    11,1     10,4                 -          -
UNITED KINGDOM     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
CHINA              9,6    8,7     8,6       5,9   -0,7     2,7      4,2    4,3     n.s.      n.s.    n.s.    n.s.             5,31       5,31
INDIA              7,4    6,5     6,0       8,4    3,6     5,9      9,1   10,7     n.s.      n.s.    n.s.    n.s.             6,50       4,75
                                                                                                                    Source: Prometeia and official
(1) Weather                                                                                                                             statistics



In Europe, unlike the United States, the resumption of economic activity is still uncertain: in
fact the fourth quarter GDP rose on short-term basis only 0.1% (0.4% in the summer after
five consecutive declines) reflecting the poor performance of the German economy became
stagnant after two quarters of growth, and other major countries except for France (0.6%).
Overall, the average years of GDP fell by 4%.
Support all activities came to a large extent by exports, helped by the gradual improvement of the
global economic cycle, while domestic demand remained weak in terms of both investment and
consumption, including the loss of tax incentives in different countries.
Industrial production is struggling to start a definite upward trend as shown by the negative
short-term change in December (-1.7%), after 1.4% in November, also the dynamic on-year (-
5%) is still negative, although an improvement over the previous months.
                                                                                                                                               15
One element of particular concern, shared with other major economies, involves the gradual
deterioration of the unemployment rate rose in December to 10%
(With a peak of 19.5% in Spain), 8.2% by end of 2008.
After five months of negative price changes with a minimum in July (-0.7%), even in
Europe, the Consumer Price Index has turned positive in the last two months up to 0.9% in
December and January 2010 to 1% (0.3% above the average of 2009). The adjusted index of
food and energy components, as well as alcohol and tobacco, which fell in the first half, then
remained essentially unchanged from summer (1.1% in December compared to 1.8% at end
2008).
In view of the difficult economic environment, during the first months of 2009
ECB continued to support the economy by cutting four times the main refinancing rate (50
basis points in January and March and 25 bp in April and May), declined from 2.50% as of
end 2008 to a record low of 1% . If the prospects for improving the economy are consolidated,
the monetary policy stance could change in the last quarter of 2010, though with a lag
compared to what is expected for the U.S., where rates are lower starting and expectations of
recovery more sustained.
As a result of substantial interventions to boost the development, even in Europe there has
been a serious deterioration of the national public accounting. Particularly critical is the
situation in Spain, Ireland and Greece for which the government deficit ratio to GDP in 2009
is estimated at well above 10%. Despite a greater tolerance for trespassing and content than
the temporary limit of 3% of GDP, the European Union launched in 2009 excessive deficit
procedure against almost all the member countries to euro area 9. In the first weeks of
2010, in the light of the alarming situation of the Greek government accounts, the accession
countries to the single currency have expressed a willingness to engage, if it be necessary,
coordinated and decisive action to ensure financial stability in the area. Greece was required
to initiate a determined fiscal consolidation under the monitoring of the European
Commission and the ECB.

For Italy the recovery from recession appears to be still far away: the cyclical upswing in GDP
during the summer months (0.6%, after five consecutive quarters of decline) was followed by
a decline between October and December (-0.2%) due mainly through the precarious context
of industry.
In years of average decline in GDP was 5% (-1.3% since the Revised 2008) and synthesized a
general reduction of demand for domestic consumption and investments, net foreign
demand.
After the first few months very negative, industrial production (seasonally adjusted) has not
yet been able to outline a trend of sustained recovery, closing the year down (-0.7% compared
to November). In comparison with December 2008 the index adjusted for working days shows
a variation still negative (-5.6%) but gradually improved. In terms of sectors, only the fields of
"chemistry" (7.8%), "mining" (5.6%), "Food" (3.6%) and "pharmaceuticals" (3.2%) showed
positive trends within twelve months.
The most recent monthly surveys indicate a further increase in the unemployment rate in
December at 8.5% (over 2 million people), from 7% a year earlier (6.7% on average since
2008) 10. The difficulties in the labor market have been partially contained by increased use
of social welfare: after reaching a peak in February, the dynamics of the monthly requests for
unemployment benefits has become more moderate, with temporary reversals in the course
of years, and remained stable in recent months. In
2009, the number of hours authorized a total of layoffs increased by 311.4% from 2008 by
clocking a record since 1970, the start of the series.
On the price front, the Italian, while reflecting the European trend, remained constant at
levels of higher inflation, recording in July, the only modest decrease (-0.1%). The recovery of
the last two months has led the Harmonised Index of Consumer Prices in December to 1.1%
(0.9% as the European).


9    On April 27, 2009 against France, Ireland, Greece and Spain, on July 7 against Malta on Dec. 2 against Austria,
     Belgium, Germany, Italy, Netherlands, Portugal, Slovenia and Slovakia.
10   During the autumn months of the ISTAT also initiated the dissemination of monthly data on employment and
     unemployment by filling an information gap that penalizes our relation to other major countries.
16
An average of the year inflation was 0.8% (3.5% in 2008), against 0.3% in Europe.
The trade deficit was reduced significantly 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 renewed
positive balance in the intermediate products, which more than offset the decreased surplus
of consumer goods and equipment. The dynamics of imports (-22%) and exports (-20.7%)
reflected the weakness of international trade for most of the year.
Finally with regard to public finance, the first preliminary estimates developed by ISTAT for
2009 confirm a general government net debt ratio to GDP and public debt ratios to GDP in
substantial increase, compared to 5.3%
(2.7% in 2008) and to 115.8% (105.7%), reflecting primarily the fall of economic activity.
In December, the Council of the European Union has therefore initiated even against Italy of
the excessive deficit procedure for requesting our country to bring its deficit below the limit
of 3% of GDP by 2012.


Financial markets
In 2009 there was a marked increase in the slope of the nominal yield curves in both Europe
and the United States, reflecting expectations of higher interest rates from current levels to a
minimum.

For maturities of less than 2 years this trend has
also accompanied with a downward shift of the
curve, more pronounced for European rates
during the first semester in relation to operations
on official rates by the ECB.

At the long end of the curve has instead
witnessed a shift towards higher, more
pronounced for the U.S., the prospect of a
recovery of production activities, but also as a
reflection of a gradual normalization of financial
markets, which has eased the aversion risk of
international investors also on the basis of
expectations of higher returns, both for the large
increase in supply of government securities, and
for an eventual resumption of inflation in the
medium to long term.

The trends described have therefore led to a
widening of the spread between short-and long-
term rates in both areas.

After a beginning marked by years of heavy
losses, the stock markets of major industrial
economies have touched on 9 March 2009 a
minimum point, followed by a rapid and
consistent rise which was followed by a
substantial stabilization of prices
in the latest quarter, mainly due to doubts about the consistency of the actual recovery and
expected to decrease current earnings of listed companies.
In last year fraction of the banking sector was among the hardest hit at the international
level, influenced by elements of uncertainty about the prospects of profitability in the
medium to long term.




                                                                                              17
                 Performance of the main short-term rates and long-term in 2009. 5
     5,25
     5,00
     4,75
     4,50
     4,25
     4,00
     3,75
     3,50
     3,25
     3,00
     2,75
     2,50
     2,25
     2,00
     1,75
     1,50
     1,25
     1,00
     0,75
     0,50
     0,25
     0.00 GFMAMGLASOND




In late 2009, marked increases in the indices by about 20% in twelve months (between 50
and 70% rather than the minimum in March), also insufficient to return to levels prior to the
start of the subprime crisis (August 2007).
The recovery in equity prices was much sharper in the major emerging economies: the MSCI
Emerging Market index in December it showed an increase of 74.5%.

The year 2010 started well, but in the weeks following concerns about the high level of public
debt of some 11 European countries have fueled widespread declines.

                         Performance of the main stock indexes in 2009               Graph 6
12.000                                                                                         26.000

                                                                                               25.000

11.000                                                                                         24.000

                                                                                               23.000

10.000                                                                                         22.000

                                                                                               21.000

     9.000                                                                                     20.000

                                                                                               19.000

     8.000                                                                                     18.000

                                                                                               17.000

     7.000                                                                                     16.000

                                                                                               15.000

     6.000                                                                                     14.000

                                                                                               13.000

     5.000                                                                                     12.000
             G      F    M      A       M       G          L   A   S   O    N        D




These developments over the 2009 main index in local currency, some of the most important
financial centers: 43.9% for the Nasdaq Composite, New York, 23.8% for the Xetra Dax in
Frankfurt; 23.5% for the S & P 500 in New York for 22.3% of the Cac 40

11   In particular, Greece, Ireland, Spain and Portugal.
18
Paris, 22.1% for the FTSE 100 in London, 20.3% for the Nikkei 225 in Tokyo, 19.2% for the
FTSE All-Share in Milan Italy, 18.8% for the DJ Industrial New York; 6.6% for the Topix of
Tokyo.

The markets managed by the Italian Stock Exchange have collectively shown a recovery on
an annual basis: The main indicators are in fact improved by about 20 percentage points
showing increases of over 70% from lows in March.
Please note that from 1 June 2009, the indicators have migrated to the Milan Stock
Exchange on the new FTSE Italy 12.
The volatility, particularly strong in the second and third trimesters, has been progressively
weakened since the third week of October to register by the end of December fell by 19
percentage points, from 30.1% to 11.1% for the FTSE
Mib Italian town.
Both the number of contracts (63.9 million, -7.8%) and the total equity trading (673 billion
euro, -34.6%) were significantly reduced compared to 2008. Even in average daily trade in
shares decreased (252,000 contracts, -8.1%) recorded a decline even more sensitive in terms
of equivalent (2.6 billion, -34.8%). In 2009, the markets managed by the Italian Stock
Exchange, however, have identified several firsts: new highs to trade ETFs (Exchange Traded
Fund) and ETC (Exchange Traded Commodities), with 54.5 billion equivalent to 2.5 million
contracts, and for those on the MOT (228.9 billion and 3.5 million contracts) for equity
derivatives trading record of Idem, with a daily average of 168 000 standard contracts, the
European leader for contracts traded on electronic markets both trade on the MOT.
At year end, the companies quoted on the Italian Stock Exchange was 332, four less than
twelve months before, new admissions were 8 only partially offsetting the 12 companies
revoked. The total capitalization of listed companies at year end was reported to 457 billion
euro (30.1% of GDP), from 375 billion at the end of 2008 (23.9% of GDP) 13.
As a reflection of the contraction in trade in the presence of an increased capitalization, the
turnover velocity has almost halved to 14 147% 275% since 2008.
The asset management business has benefited from the general improvement of the financial
markets in the second quarter, breaking the heavy downsizing in the act
2006. For the mutual funds sector of the turnaround began in the second half, recovering
part of the divestment earlier this year.
In Italy, the open-ended mutual fund industry ended 2009 with a net negative even though
for only 0.7 billion (€ -143.7 billion in 2008) as a result of an opposite trend among the
Italian-based funds (-12.9 billion) - which continue to be penalized by an even more
unfavorable tax treatment - and foreign funds (12.2 billion) whose impact in terms of assets
has now surpassed 50%. The data also show that 15 Assogestioni contraction has affected
mainly hedge funds (-5.5 billion) and to a lesser extent the categories of cash funds (-0.9
billion) and balanced (-0.7 billion), while the new buoyancy in the financial markets has
helped to support the flexible (0.6 billion), but above all the stock (3.4 billion) and bonds (2.4
billion).
The revaluation of stock prices from the lows of March brought the total capital to 435.3
billion (8.1% from 402.7 billion at the end of 2008) showing a shift in favor of equity funds
(increased from 17% to 21 , 2%) and to a lesser degree of flexible funds (from 13% to 13.1%),
compared with a reduction in the share



12    The FTSE / Mib has maintained the continuity of levels of the previous S & P / Mib, as the FTSE Italy Mib Storico
      (formerly Eb town) and the FTSE Italy Star (formerly All Stars), the NASDAQ is the Midex were instead replaced
      by Italy FTSE All-Share (with a basket of 250 titles instead of 275) and the FTSE Mid Cap Italy (with a basket of
      60 instead of 30 titles). Mib sectoral indices have been replaced by new sectoral indicators developed by the
      international method ICB (Industry Classification Benchmark), and have introduced two new indices: Italy FTSE
      Small Cap and Micro Cap Ftse Italy The adoption of the new index series is tied at the entrance of the Milan Stock
      Exchange London Stock Exchange in the group whose performance is measured by indicators developed by FTSE
      Group (Financial Times Stock Exchange), recognized worldwide and used by international investors, in can offer a
      structured and integrated representation of market segments.
13   In calculating the ratio of market capitalization / GDP is the GDP value at current prices.
14     Indicator - comparing the turnover telematics market capitalization - indicates the rotation rate of the shares.
15   New Map of the assets under management (collective management and portfolio management) "on the 4 th quarter
     of 2009.
                                                                                                                     19
of cash funds (from 21.3% to 20%), hedge (from 5.3% to 3.7%), the balanced (from 4.4% to
3.9%) and bonds (from 39 % to 38.1%).


The banking system
In the course of years the Italian banking system was characterized by a dynamic always
supported, although at a slower rate than in 2008, customer deposits, compared to a gradual
slowdown of lending activity, which reached a low point in October, and a parallel
deterioration in credit quality.

Based on the findings of the Bank of Italy 16, direct deposits (residents' deposits and bonds)
in late December showed an annual change of 9.3% (12.4% in December 2008), always
driven, albeit with less intensity, bonds (11.2%), compared to a stable development of other
techniques (8%).

As for loans to residents in the private sector, their annual dynamics has been decelerating,
reaching a low point in October (0.1%), only to remain at 1.7% in December (4.9% at the end
of 2008).
The funding for family and non-financial corporations raised a total of 0.5%, still show a
positive dynamic in the segment due to more protracted (4%) compared to a reduction, in
place since July, for the segment due within the year (-7.5%).
In terms of recipients of loans, the data show a decline for firms (-2.3% compared to 6.7% at
end-2008) which contrasts with the dynamic recovery for families (5.9% compared to 0.9% in
December 2008), supported primarily by funds intended for house purchase (6.1%), but also
a new buoyancy to the various forms of consumer credit (5%).

From the standpoint of risk, the sufferings of the private sector to the gross writedowns were
increased annually by 42.9% (48.1%, information about enterprises and 34.4%, those linked
to households) and 20.7 % by the end of June (22.4% for business and
17.9% for families). The combined effect of this trend and the modest growth of loans has led to
an increase of more than one percentage point from 2.70% to 3.80% in December 2008, the ratio
of private sector gross NPLs / total loans to the private sector 17.
Net bad debts, but showed an annual increase of 66% and 36.2% from June. The report non-
performing loans / total loans has therefore stood at 2.02% (1.24% at end-2008), while the
ratio of non-performing loans / capital and reserves increased to 12.23% (7.84% at end-2008
).

As a reflection of the different dynamics that are characterizing the mediation with
customers, securities issued by residents in Italy in the portfolio of Italian banks in
December showed a trend increase of 29.5%, mainly due to the component "other securities"
(26.4 %), and in particular the bonds (which represent 72.3%), and measure the residual
government bonds over the medium to long term (CCT and BTP, 26.6%) and a shorter term (
BOT and CTZ, 94.6%), the latter almost doubled. Consequently, the ratio of securities / loans
to the private sector rose to 28.3% (22.2% at end 2008).

In a continuing downward trend in place for 14 months at year-end the average rate of bank
deposits from customers 18 (which includes the return of deposits, bonds and repos in the
euro for non-financial corporations and households) is was brought to 1.59% (3% at the end
of 2008), while the weighted average rate on loans to households and non-financial
corporations, in line with the trend of the conditions in the interbank market has been
progressively reduced to 3.76% (6.09% at end-2008), the lowest ever.

From a regulatory point, March 10, 2010 came into force on the Legislative Decree 21/2010,
which implemented the EU Directive 2007/44 on the communications market in case of
purchase of qualifying holdings in banks, insurance companies and

Bank of Italy, Supplement to the Statistical Bulletin "Money and Banks", March 2010.
are excluded from the calculation is the suffering that the uses on government. 18 Source:   ABI Monthly
Outlook, February 2010.
20
investment. Under the new measure the Article 19 of the Banking Act has been partially
reformulated where indicated in the first 5% of the voting rights limit beyond which requires
the approval of the Bank of Italy. In particular:
     will be subject to prior approval of the Central Bank as acquisitions in whatever capacity
        allocated a share of the voting rights or capital of at least 10% after the shares
        already owned, or allow the exercise of control or influence significant effect on the
        bank;
     are incorporated in the additional authorization thresholds (20%, 30% and 50%) in the
        event of changes in equity provided by the Directive and on top of which triggered the
        prior intervention of the central bank will, however, bound by the criteria set by the
        EU in terms of the financial standing of the potential buyer and the financial viability
        of the project.




                                                                                             21
The activities of the Banca Popolare di Ancona in 2009
The network and the internal organization

The network
The distribution of the Bank is divided into three markets: the retail market, divided into five
geographical areas, which depend on the branches and Retail Markets and Corporate
Private subdivided into "Banking Unit", with branch network.
Each market has, therefore, its own network structure organized on the basis of a
distribution chain, with units located throughout the area, at December 31, 2009 the Bank's
branch network is as follows:

                                                               PRIVATE       CORPORATE
                                              RETAIL
 GEOGRAPHICAL AREAS                                            BANKING        BANKING
                                              BRANCHES
                                                                UNIT            UNIT
 Brands Retail Centre - South                    82
 Retail Romagna and Northern
 Marche                                          41
 Retail Umbria                                   21
 Retail Lazio, Abruzzo and Molise                48
 Retail Campania                                 64
 Private                                                           5
 Corporate                                                                          6
 TOTAL                                          256                5                6

The number of points (no. 256) is decreased compared to December 31, 2008, in 2009 there were
no open 3 new branches (Caserta, dated 11.05.2009 - Caiazzo, on 13.07.2009, and Naples 18,
dated 10/05/2009) and - in implementing a project called "cost / income Branch", best illustrated
in later scope of the "organizational field" - was carried out at the end of No 6 branches (Avellino
1, dated 20.04.2009, Napoli-Città della Scienza, 2 Forlì, Ancona and Naples, 7 16, dated
08.06.2009, and Macerata, Piazza C. Battisti, dated 29.06.2009) is instead the same number of
branches operating for the management of treasury services to local authorities (no. 9), also
points out that since 2008 have been matched to the CBU No 6 Centres abroad, which refer to the
Retail Branches for specialized activities.

The clientele for its operations has at its disposal, in addition to the branch network, the so-
called "direct channels or virtual" represented by the home banking services for individuals
with the service "QUI UBI" interbank and corporate banking businesses.
They are also active No ATMs 340 and n. 9507 POS stations installed at retail outlets.


The organizational structure
Below is the organizational structure of the Bank dated at 31.12.2009, which implemented
the organizational changes consequent to adoption, after migrating to the target system, the
new Model of Bank Online




22
Key:                                                            COUNCIL
                                                             ADMINISTRATION
                    AREA
                                                                                                                                  Administration and
                    DIRECTION                                                                                                         Planning
                                                         EXECUTIVE COMMITTEE
                    Service
                                                                                                         STAFF                      Coordination and           (GOVERNME
                   Function                                                                             Direction                                              NT)
                                                                                                                                        Support
                                                                                                        General
                    Territorial Units                  GENERAL MANAGEMENT
                                                                                                                                    Corporate Affairs
 COMMITTEE                                                      Contact
 DIRECTION                                                      Auditing




                   RESOURCES            BUSINESS                     LOANS                                              AREA
                     HUMAN              LEGAL                                                                        COMMERCIAL

                    Resource
                    Management            Legal Advice                 Support
                                            Network                  Amm.vo Credits        MARKET                        MARKET                      MARKET
                                                                                          CORPORATE                      RETAIL                      PRIVATE
                                                                        Presidium
                                         Operational Staff              Monitoring
                                              AML                      Credit Quality
                                                                                                         External                   Support
                                                                      By Anomalous                     Commercial               Local Shops Retail


                                                                     Corporate Loans
                                                                                         Corporate                  Territorial Areas         Private Banking
                                                                                        Banking Unit                      Retail                    Unit
                                                                       Retail Loans



                                                                   Deliberative Poli                    Center
                                                                                                        s
                                                                                                        Extern
                                                                       Peripheral                       al          Retail Branches


       (SUPPORT)                                                                                                                                        BUSINESS)




                                                                                                                                                                       23
Within the organized sector, the most important commitments of 2009, then represented by
the following projects / actions:
        Project Cost / Income Branch "in order to support / complement the rationalization
        of the network, identifying the branches with a" cost / income ratio critical "(ie
        > 80%) in order to establish interventions for the management of repositioning
        themselves in terms of efficiency (increased revenue and / or reduce costs through
        staff reduction) or rationalization measures for distinguishing, in the context of the
        Branches to be rationalized between:

             BRANCHES OVERLAPPED, for which evaluate the closure / transfer; 

          BRANCHES LOCATED, for which evaluating the transformation in mini 
          
                                        door (Door posted a Branch
                                        "Mother");
                                                            the
                                                            hypothes
 ISOLATED BRANCH,       for     the which assess           is        of
                             sale / closure.

       From this project, developed in close coordination between Area Commercial Bank
       Network and Parent, it appeared that the Banca Popolare di Bergamo and Banca
       Popolare di Ancona network banks to "increased incidence" of efficient branches, in
       particular, for our No Bank have been identified 31 branches (12%) with "critical cost
       income (> 80%), to optimize, for which they have defined the following:
          for 20 branches, located on attractive market, have been attributed objectives
             of increasing revenues;
          for 4 branches have been established to achieve efficiencies in terms of
             reduction of staff;
          to 6 branches, was to be processed in mini-stop, with a consequent reduction
             in staff;
         for a branch office, was scheduled for closure;

       "Project Credit Quality" formally come to an end in late 2009, was characterized by
       the participation of the structures of the Bank, in close coordination with those of
       the parent company, the results show an improvement in indicators of credit quality
       and greater Consistency of classification and evaluation of the counterparties. In
       order to maximize the value achieved by the project, the activities hitherto carried
       out will continue during 2010 with the establishment of a special "Credit Monitoring"
       which will follow the logic and purpose of that project in order to monitor the full
       recovery an adequate capacity for the selection and management of credit risks, and
       the closure of the Control Room, with consequent recovery of 11 resources, partly
       used for the creation of a pole Stock Group in Jesi, following the decentralization of
       this activity at the UBISS.


The Real Estate
During 2009, were made the following major restructuring, construction and expansion on
property owned or leased:
    initiated and completed the following sites:
         Caserta, Via C. Battisti 42 / A - Opening Branch;
         Castelplanio (An), Via Pascoli 14 - Opening of Treasury;
         18 Naples, Piazza G. Bovio 6 - Opening Branch;
         Città di Castello (Pg), Via Buozzi 22 - Transfer Branch;
         Jesi (An), Via Don A. Battistoni 4 - Transfer to CBU and the Foreign Trade;
        Pietramelara (Ce), Piazza San Rocco 18 - Transfer to Private Corner Caserta Via
            Battisti 42 / A;
            ATR Abruzzo Molise Marche South - Opening at the administrative offices
            Pescara;



24
         Rome, Via dei Crociferi 44 - Transfer ATR in Tivoli (Rome) Piazza Santa Croce 15;
          Rome, Via dei Crociferi 44 - Transfer to PBU Buozzi Viale Roma 78;
          Sant Angelo in Vado (PU), Mar del Plata 6 Square - Transfer Branch;
         Todi (Pg), Piazza del Popolo - Transfer ATR in Tivoli (Rome) Piazza Santa Croce 15;
          Napoli 7, Victoria Square 7 - Restructuring Branch;
          Porto San Giorgio PA), Via Tasso - Restoration Branch;
        - Telese (Bn), Viale Minieri 143 - Restructuring
        branch, launched the following sites, still in
        progress:
        - 4 Roma, Via Cipro 4 / A - Restructuring Branch;
        - Nola 1 (Na) Via San Massimo 15 - Transfer Branch;
        projects to be undertaken in 2010:
        – Filottrano (An) - Opening Branch.


Human resources
The staff of the Bank consists of 31.12.2009 no. 1,805 employees, compared to no. 1845 of
December 31, 2008, as follows:

                                                           to 31.12.2009        on 31.12.2008
  Permanent employees                                         1.770               1.794
  Fixed-term employees                                          35                  51
  Employees with a contract for training and work                0                  0
  Total                                                       1.805               1.845

To these we must add another 95 workers with temporary contracts, compared to 67 units
in service in late 2008.
At the closing date of exercise, the composition of the workforce is resulting in the following
table:

              QUALIFIED "                   31/12/2009              31/12/2008
Executives                                  23                       24
Managers 3rd and 4th level                  340                     330
Managers 1 and Level 2                      415                     426
Other staff                                1.027                   1.065
Total                                      1.805                   1.845

Are seconded to 31/12/2009 c / o the Parent Company or other Group No 126 resources,
while 13 are on secondment to the Bank's resources, from other group companies.
Female staff to 31/12/2009 is 36.73% of the total, compared with an incidence of 36.53% at
the end of 2008. The average length of service is about 17.26 years, while the average age of
staff is about 44.11 years.

In terms of contract and trade unions, 2009 has been affected by the following initiatives:
     On 29 January, was signed with the unions an agreement that allowed the posting at
       UBI Sistemi e Servizi Scpa BPA employees who performed service work in favor of the
       same UBI Systems and Services;
     On February 20, has been signed an agreement on the reduction of the rates charged
       on fixed-rate loans to employees, for "buying a first home, tending to align the rates
       with the new market realities;
       On May 13, the agreements were signed on the company bonus for Diamonds


                                                                                               25
       Managerial and professional areas for the years 2008 and 2009.

The training of the year 2009 was mainly oriented to delivery of courses relating to the
insurance sector, with particular reference to training in accordance with Regulation ISVAP
5 of 16/10/2006, with a commitment equal to 3159 days / man and an incidence of the
same value of the training program of approximately 2009 to 33.5%.
In the second half of this year, also has started the project "Planning and Financial
Consulting" which involved the personal network, through the provision of
1,045 man / days.
Overall, the training in the "mandatory", which involved the legal framework (AML, Leg.
81/08, MiFID, etc. ..) and insurance accounted for approximately 51% of total funding, with
a commitment of about 4818 days / man.
Bank staff has also taken courses with external training, on matters of regulatory, tax, legal,
and accounting for 31 man-days with a number of shares equal to 21.


The corporate events
The Extraordinary Shareholders' Meeting held June 24, 2009 approved the amendments to
the bylaws, adopted for the implementation of the provisions contained in the Decision of
the Bank of Italy on March 4, 2008 concerning the organization and corporate governance of
banks. The provisions in question were enacted with the explicit aim of strengthening the
minimum standards of corporate governance and organization and these principles and
implementing guidelines that will ensure the creation of effective organizational structures
and corporate governance where there is "a clear distinction of roles and responsibilities "is
assured in the" balance of powers, the balanced composition of organs and the effectiveness
of controls, overseeing all business risks, the adequacy of information flows, which are
essential for achieving the objectives business conditions and to ensure sound and prudent
management.
The new text of the laws came into force on June 29, 2009, date of registration of the
minutes of meeting with the Register of Companies of Ancona.
The parent company also provided for the preparation of the Draft Corporate Governance
refers to UBI Bank and all banks in the Group, in accordance with the provisions of
Supervision in the organization and corporate governance of banks, and to send the same to
the Bank of Italy.

On the composition of corporate bodies, it should be noted that, with effect from 30 November
2009, Mr. Mattioli Argilo has resigned from the office of the Bank's Board of Directors, since the
art. 17 of the current bylaws provides that the body should be a minimum of 12 to a maximum
of
18 Members, has failed to replace co-opted within the meaning of art. 2386 cod. Civ. the
resigning director, referring to the Shareholders' Meeting decision.

During the year there have been no further changes in the composition of
Board of Directors or the Board of Auditors. But the changed attitude of the
Directorate-General, because, with effect from 1 September 2009, the Board of Directors has
appointed a Deputy General Manager, in the person of Dr. Nunzio Tartaglia, and a Deputy
Director General in the person of Rag. Genesio Rispoli, to replace Deputy General Rag.
Marco Castelli and Dr. Hercules Fimiani allocated in the context of a project to rationalize
and simplify the structure of
Parent UBI Bank, to other positions in other Group companies.



Commercial activity
The trade action
The severe recession that marked the 2009 has strongly influenced the Bank's trading
action, leading to noticeable effects at the level of assets under management that revenue.
In the course of the year the Bank has given further impetus to the "Project Credit Quality"


26
started in the second half of 2008, aimed at reinforcing control tools and risk management
of credit and at the same time to rehabilitate the loan portfolio in view of the desired
recovery of our economy. Such action to upgrade the portfolio has involved all three
markets, with particular focus on the retail market and the corporate market, it has
unfolded in two main directions:
     the systematic review of positions denoting characteristics of problem with the objective
        of their standards or, where necessary, their timely correct classification;
     the review, in light of development of the market share of counterparties with the
        highest credit quality.

The overall activity on the "credit" was inserted in a general context highly unstable, at least
through the first half of the year had the characteristics of emergency for significant layers
of fabric production. In this scenario, the Bank has failed to lend their support - even in the
context of enhanced synergy with
Associations and consortia with - when renegotiating the company liabilities, lengthen
maturities, transform positions from short to medium term. In this sense
- Before they take shape at the system level agreements for the suspension of the rate - the
Bank has started with the aim to maintain, despite the inevitable need for a more rigorous
selective nature of the closeness and sensitivity to the Territory that has always
characterized the action.
On trends in lending - marked by even a limited decrease compared to previous years -
mainly affected demand factors, given the sharp contraction of trade and production that
occurred in 2009, and the almost complete stagnation of business investment. The demand
for credit - which declined precisely in its overall size - originated mainly from imbalances in
cash for most of the year have characterized the management of companies with revenue
declining volumes, long delays in debt collection and inevitable temporal asymmetry
between these phenomena and results of cost reduction and reshaping of the schedule of
debt raised by companies in the field. This has led to the Network for the Credit Department
and the need for a strong selective action in optics, described above, management of high
credit risks of the market.
From the funding side, the trade action was influenced by the high degree of confusion and
widespread concern that permeated savers, especially in the period between 2008 and early
2009. The choices of asset allocation have focused on the positions at sight or short-term
and only with the thinning of the principal cloud over the overall tightness of the financial
system were later addressed also to issue bonds directly from their bank or other issuer of
total standing ; government securities have maintained an important role in allocation
decisions of households, while for the whole year has confirmed the reluctance to asset
management that had the greatest impact in previous years, only in the second half of the
year a moderate flow saving is once again move towards forms of equity or asset
management.
In the course of the year the monetary policy decisions - caused by the serious state of
prostration in which the real economy has come to see - have generated a rapid decrease in
market interest rates, triggering a difficult and often unpopular task of renegotiating the
terms applied to the positions of the collection and use. In terms of repricing the gradual
collection of items in the short term and a balanced pricing of bond issues have not been
sufficient to prevent the sharp decrease in the margin, partially offset by higher margins
from jobs held, where rates - even within effort to apply a spread reflecting the more rational
relationship between risk and return - they still below the trend in reduction in market
rates.
The increased complexity of the context in which it was deployed in 2009 the Bank's
activities and which have been mentioned above, has prevented the full achievement of
economic and trade attributed to the Net The impact on operating subsidiaries and Direction
Credits generated by the widening of credit risks, has resulted in both a complication of
processes and processing times in the practice of trust. This, albeit temporary, decline in the
levels of service in general was caught by the customers who


                                                                                             27
expressed, in the context of the permanent customer satisfaction, accurate signals of recall;
in the second part of the year between the synergistic actions and the Commercial Credit
Department allowed to initiate a progressive solution to this important aspect of
organization.
The incisive review of the loan portfolio, a reconciliation on physiological levels of risk
indicators (such as the spill, the delinquency rate of loan, the trust expired revisions, etc ...)
the timely classification of positions at higher risk and subsequent recording of adequate
funds amending the activities, this represented - in a particularly difficult year - equally
important objectives have been achieved with strong involvement of central and peripheral
structures of the Bank, made an extraordinary effort in 2009 which represents an
assumption of absolute importance of placing the Bank - in a scenario marked by signs of
recovery, albeit moderate - in terms of actions taken since 2010 to revitalize the business,
especially in view of supporting families is desirable in recovering the costs of durable goods,
that companies in their growth processes. Acting, as regards companies, the best part of the
production system
- Namely that through innovation and quality, development of human and organizational
capital, the gateway to new markets, is helping to improve their competitiveness and the
country - the Bank will be able to strengthen the close ties with its Territories settlement.
The following are detailed information of business in three distinct market segmentation of
our customers.

Markets
The data presented in this section are "management" and in particular:
    for assets under management - annual average balances for liquid and stock loans and
       direct funding for the annual average indirect;
       for economic data - the net interest spread is calculated using the internal transfer
       rate compared to operating income and takes into account not only of commissions,
       trading and hedging activities and the actual currency.

It also specifies that the data of the year 2008 in order to make them consistent with those
of 2009 have been restated, than indicated in the annual report of the budget for financial
year 2008 due to "re-portfolio" in the context of individual markets and the reclassification
of the Committee on the overdraft interest margin to net commissions.
The trend in total assets under management of the markets recorded a -3.2% to
17.754 million euro, compared to 18.35 billion euro in 2008. This result is the effect of the
decrease in direct funding (-1.1%), clerical (-2.8%), collecting insurance (-5.5%), asset
management (25.9%) and of increase in assets under administration (9.2%).
The following are the dynamics relating to the year 2009 broken down
Retail Markets, Corporate and Private, in terms of intermediate mass (average balances for
liquid progressive direct deposits and loans for stock average progressive indirect, in
thousands of euro), compared to December 31, 2008:

                          December 31, 2009             December 31, 2008
                          Intermediate Assets           Intermediate Assets         % Change
                        (Collection of total loans)   (Collection of total loans)
 Retail                      13.762.625                    14.129.319                -2,60%
 Corporate                    2.334.889                     2.488.179                -6,16%
 Private                      1.656.065                     1.732.932                -4,44%
 Total                       17.753.579                    18.350.430                -3,25%

From the economic point of view the net interest income recorded a decrease of 23.9%
compared to the previous year, as determined by the sharp fall in the spread on the
collection (-136 bp) was not compensated by the improvement in spreads on loans (50 bp).
This trend in spreads is due to the trend in interest rates related to the Euribor


28
1 month which fell from 2.67% of January 2, 2009 to 0.48% at December 31, 2009.
In general, the year just ended was marked by an unprecedented decline in market interest
rates because of the continuing economic crisis, the fragile expectations of recovery, the
resulting monetary policy moves by the ECB and from all major central banks. The policy of
reducing interest rates, already begun by the ECB in October 2008, involved the entire first
half of 2009, during which the European Central Bank has worked well four reductions of
the reference rate, taking it from 2.50% effective from December 10, 2008 to the current
1.00%, in place since May 2009.
In parallel, the market rates have followed the same trend, anticipating and effectively
making it even more accentuated.
Net commission income decreased by 19 million euro, equivalent to -14.2%, largely due to
lower fees on loans, on the management of c / c in the asset management.
In the course of the year the Bank has abolished the Commission on overdraft charges by
establishing a commission comprehensive provision of funds in terms of revenues only
partially offset the previous year.
Total revenues of approximately EUR 312 million is a decrease of
22.6% compared to previous years.
It should be noted that:
     Retail Market generates 77% of total net interest income of the market and 84.1% of net
        commissions, with an overall impact on total revenues of the Markets of 79.6%,
        (84.1% in 2008);
     the corporate market generated 21.8% of net interest income and 10.8% of net
        commissions, with an overall impact on total revenues of the Markets of 17.8%
        (13.2% in 2008);
     the private market generates 1.1% of net interest income and 5.1% of net commissions,
        with an impact on total revenues of Markets 2.6% (2.7% in 2008).

With regard to the depth on each market is specified as follows:

Retail Market
Retail Market in the context of the dynamics of the aggregate deposits and loans and the
Margins, show the following (in thousands of euro):

Volumes
                                                                                       %
                                    2009 (*)        2008 (*)       Change         change
BT uses                            1.453.987       1.631.277       -177.290      -10,87%
Jobs ML                            3.876.747       3.860.367         16.380        0,42%
Currency Loans                        6.002           8.060          -2.058      -25,53%
Total loans                        5.336.736       5.499.704       -162.968       -2,96%
BT Collection                      4.317.900       4.264.201         53.699        1,26%
ML Collection                      1.478.789       1.402.527         76.262        5,44%
Collection Rate                      19.909          25.255          -5.346      -21,17%
Total indirect deposits            5.816.599       5.691.983        124.616        2,19%
(*) Average balances off
progressively

Indirect deposits (**)             2.609.290       2.937.632       -328.342      -11,18%

(**) Stock average progressive




                                                                                           29
Margins
                                                                                      %
                                       2009           2008           Change           change
Margin lending                       127.428         104.461           22.967        21,99%
Gross Collection                      19.652         106.498          -86.846       -81,55%
Net interest income                  147.081         210.959          -63.879       -30.28%
Net commission                        98.638         117.215          -18.577       -15,85%
Operating income                     248.259         338.702          -90.442       -26,70%

With regard to employment, compared with a decline of industry in the short term,
amounting to 177 million euro, there is a fund held in the medium and long term (0.4%),
resulting in a reduction of the loan equal to 3 % compared to the previous year.
In the context of direct funding is an increase (1.3%) of items in the short term, which stood
at about 4.318 billion euro, resulting from the positive trend in average balances of c / c
creditors which offset the decrease in other assets Short-term (certificates of deposit and
repurchase agreements). The average balances of items in the collection liquid medium and
long-term record a good increase, positioned at about 1.479 billion euro (5.4% compared to
2008). The total direct deposits stood at 5.817 billion, registering a 2.2% over 2008.
From the economic point of view raising the margin on a decrease of 81.6% affected by the
decline in spreads (-153 bp), while the margin on loans increased by 22% due to the
increase in the spreads (49 bp).
Net commission income showed a decline compared to 2008 of EUR 18.6 million, or 15.8%.
This result is mainly driven by a decrease in commissions on loans to 8.8 million euro,
commissions on assets under management to EUR 2.7 million and commissions on current
accounts for 2.9 million euro.
Under the Retail Market, the Small Business customer segment generates 60.5% of net
interest income of the Market, 48.8% of net commissions, for a total impact on operating
income of 55.9% and the Mass-Market customer segment generates 29.4% of net interest
income of the market, 31% of net commissions and 29.9% of total revenues, the Affluent
segment generates 9.7% margin market interest, 15.5% of net commissions and impact on
revenues to 12%.
Compared to 2008 there was a decrease in operating income (-26.7%), respectively,
determined by the Small Business segment -8.6%, -39.2% of the mass-market segment and
a -49% of Affluent segment.
In response to the reduction in policy rates and market rates, the retail market, in 2009
made a series of actions and interventions in relation to rates charged to customers.
In relation to decisions of the Board of the ECB to implement monetary policy moves were
specifically activated several times the rate repricing initiatives, both active and passive,
acting in accordance with the rules in force, both maneuvers unilateral reductions in both
activities renegotiation of the bilateral conditions, in order to make the structure of interest
rates for the collection and use consistent with the rapid changes in market interest rates
and while seeking the necessary correlation of risk and return objectives.

In the course of the year the sales action has been addressed by the following major
campaigns:
   for the private sector:
         Country "collection" aimed at analyzing the financial position of the signers of the
            consultancy contract customers on investment for bringing the light of the profile
            resulting from the profiling questionnaire, the right tools to each customer;
         Campaign "Lending" to encourage the placement of personal loans, insurance
            policies BluCredit, revolving credit cards combined with Libra Extra MasterCard;
         Campaign "Protect": aims to promote the sale of non-life insurance policies
            Auto Safety Project, Home Safety Project, turtleneck and blue Ubi Family
            Insurance;
            Campaign "Retention" aims to increase customer loyalty with higher

30
          probability of abandonment;
        Campaigns MIFID Dossier "and" MiFID Consultancy Service "aimed at adaptation
          required by MIFID.
  for Small Business: Campaigns
     SMEs
       Campaign "Check Up Customer liquids": aimed at increasing the liquidity of
          intercepting the collection that show more potential customers (cyclical sectors)
          and / or hold collection from other banks;
       Campaign "Check Up Trust 1-6" aimed to intercept the need to finance investment
          in the first place considering the presence of trust dated (to be a warehouse and
          leasing operations MLT) and the need to finance working capital;
       Campaign "Check Up Trust 7-9" aimed to the analysis of credit risk expressed by
          the other party for its content, to be implemented through adequate management
          of pricing and audit of the trust expired;
       Campaign "Check Up Abroad" aims to investigate the business potential on the
          external sector;
       Campaign "Check Up Companies" aimed to explore the macrobisogni investment
          financing and protection;
       Country "Outstanding Requirements" aimed at continuously manned by our
          customers and have potential to increase the flow of payments for our Institute
          and therefore uses on-line self-liquidating short.
     Campaigns SMEs and POE
       Campaign "self-liquidating Monitor" aimed at continuously manned potential
          customers that do not allocate to our Institute but the entire share work and for
          maintaining the flow of payments for our Institute and therefore uses the self-
          liquidating short lines;
       Campaign "USEFUL - Special Affairs and Special SMEs" aimed at placing the new
          account package;
          Campaign "Order Acquisition" aimed at developing relationships with the names
          "prospect" of the sector "wholesale".
     Campaigns POE
       Country Trade and Services Star "," Services "," Industry Star, "" Industry "aims at
          meeting all macrobisogni counterpart belonging to the clustered index;
       Campaign "To be developed" aimed at deepening the knowledge of the POE
          counterparts belonging to the clustered index;
       Campaign "Retention" aims to revitalize the relationship with customers, which
          reduced the flow of movement and prevent the risk of abandonment.

At 31 December 2009 our Institute with the collaboration of 97 companies of the Group of
Financial Advisors UBI Banca Private Investment - Integrated Division, combined with our
affiliates and the collaboration of 17 Developers Insurance Company of UBI Assicurazioni
Spa
During the second half has redesigned the model of dedicated service to guarantee
institutions in order to make it more consistent with the standards expected by the market.
Have been defined with processing times of practices by setting minimum levels of service
for each stage of the investigation and resolution practices. At the same time opened a phase
of confrontation with the most representative consortia to identify areas for improvement
and actions / initiatives to re-launch of the report and the volumes with these guarantee
institutions. Tables have been set up to work with the top 10 quarterly consortia in terms of
guaranteed volumes, affiliated with the Bank in the framework of which will be monitoring
the actions proposed.
In order to further develop the relationship between our Network and Regional authorities of
guarantee, in conjunction with the Working Tables have planned a series of meetings
between the ATR, Owners, Branch Managers and SB spatial referents of credit guarantee
cooperatives contracted in order to pursue together and share the aforementioned


                                                                                          31
development schemes in respect of their associates, our customers, in order to facilitate
access to credit, monitor risks, help prevent difficult situations.
During the second half of this year we have supported various initiatives in the area, the
most significant:
     s accession to consolidate short-term liabilities of the Abruzzo Region;
     activities on the debt moratorium;
    agreements with several municipalities of Umbria to the support of local businesses;
    Announcement of the award by the Marche Region Tourism with the subsequent
        publication of the lists of eligible contributions in the time frame that will come until
        2011;
    Announcement of the award of the Marche Region for the management of a line of EIB
        loan of EUR 100 million which is accompanied by an additional 100 million equity
        capital in support of regional farms operating in the water sector with a majority
        public ownership.

Corporate Market
In the context of the Corporate Market dynamics related to the aggregate deposits and loans
and the margins, highlight the following (in thousands of euro):

Volumes
                                                                                       %
                                     2009 (*)         2008 (*)        Change           change
BT uses                             1.362.085        1.393.734         -31.649        -2,27%
Jobs ML                              659.641          669.589           -9.948        -1,49%
Currency Loans                        24.235           27.539           -3.304       -12,00%
Total loans                         2.045.961        2.090.863         -44.902        -2,15%
BT Collection                        231.776          323.947          -92.171       -28,45%
ML Collection                          4.092           13.337           -9.245       -69,32%
Collection Rate                       13.085           15.805           -2.720       -17,21%
Total indirect deposits              248.954          353.089         -104.135       -29,49%
(*) Average balances off
progressively

Indirect deposits (**)                39.974           44.227           -4.253        -9,62%

(**) Stock average progressive

Margins
                                                                                        %
                                       2009             2008          Change            change
Margin lending                        41.384           31.263          10.121          32,37%
Gross Collection                        316             3.070          -2.753         -89,69%
Net interest income                   41.700           34.333          7.367          21,46%
Net commission                        12.571           14.203          -1.632         -11,49%
Operating income                      55.358           53.078          2.281           4,30%

With regard to short-term loans are declining average balances of liquid of 2.3% compared
to 2008 (-31.6 million euro).
The long-term record a decrease in average balances liquid, about 10 million (-1.5%),
indicating that the EUR 179 million of payments (-13.8% compared to 2008) were not
sufficient to decalage cover the loans.
Net interest income the fund uses recorded a positive performance due to the constant
action of government in light of the conditions of effective risk-return relationship.
The direct funding side is characterized by a strong decrease in volumes, with the market in
2009 lost 104 million euro (-29.5%). The level of rates, which is much lower for much of the
year, and the strong competition on the system

32
segment has compressed significantly also the spread (-74 bp): the combination of the two
phenomena (reduction in volumes and spreads) results in a fund raising profit margins very
low (316 thousand euro compared with 3 million in 2008).
The amount of commission income in 2009 is 12.6 million euro (-11.5% compared to 2008).
The decrease is mainly due to a substantial reduction in fees from credit commitments (-600
thousand euro), of those derivatives (-350 thousand euro) and those on loans.
Gross income of the market reaches EUR 55.4 million in improvement of 4.3% compared
with 2008 (EUR 2.3 million).
Within the corporate market, the corporate customer segment generates 72.3% of the Lower
market interest margin, 73.3% of net commissions and 72.4% of total revenues, the segment
of corporate customers Mid generates 21.6% of net interest income of the market, 19.8% of
net commissions, with an incidence on revenues of 21.2%, and the Large Corporate
customer segment generates 5.8% of the margin market interest, 6.8% of net commissions,
with an incidence on revenues of 6.2%.
Compared to 2008 the increase in operating income (4.3%) is determined respectively by
4.6% in Lower Segment, segment 5.7% -3.8% from a Mid and Large segment.
In 2009 the business has focused on the development:
     short-term loans to both as regards volumes (recovery in market shares in companies
        already in the portfolio and are characterized by a good credit rating, and with
        percentages of limited use) that the spread (reduction / resetting the gap with the
        benchmark price );
     in medium / long term in order to anticipate possible financing needs of customers;
     Leasing in order to identify potential customers for leases that do not work for that
        product with the UBI;
     other initiatives, not borne by the parent, but internally by the Corporate and
        structured in accordance with the Company's product in order to identify a target
        sensitive to which direction to a commercial offer integrated, able to meet the needs
        of customers in all sectors in which make the operation of
        Group.

At the same time are set, based on prior analysis aimed to identify the counterparties
concerned, a number of activities:
      the careful management of relationships characterized by greater risk;
     recovery of market share on loans, especially short term, on counterparties with good
        credit;
     Development of International Business, in cooperation with specialists of the Foreign
        Trade Center, designed the new vehicle trade and the operation of documentary
        credits;
     to repricing of systematic action aims to reduce / clear the gap between applied and
        margins expected margins.

It emphasizes the important effort in place for the redevelopment of the loan portfolio in
terms of risk manner, including close monitoring of the phenomenon of "boundless";
was also made for a renewal of loans to finance short-term (Italy and abroad) to verify the
timely closing of the same in terms of maturity, to verify media related to trade and improve
the pricing.
It was finally put a special attention to the phenomenon of the installments defaulted on
loans and identifying physiological them back in areas with good credit quality
counterparties on which to act and set an action to renegotiate funding to provide more
comprehensive financial support to customers.




                                                                                           33
Private Market
In the context of the private market dynamics related to the aggregate deposits and loans
and the margins, highlight the following (in thousands of euro):

Volumes
                                                                                   %
                                  2009 (*)         2008 (*)        Change          change
BT uses                           16.838           20.806          -3.968          -19,07%
Jobs ML                           27.008           27.738          -730            -2,63%
Currency Loans                    103              137             -34             -24,82%
Total loans                       43.949           48.682          -4.733          -9,72%
BT Collection                     515.373          602.920         -87.547         -14,52%
ML Collection                     205.170          211.395         -6.225          -2,94%
Collection Rate                   2.825            4.318           -1.493          -34,58%
Total indirect deposits           723.368          818.633         -95.265         -11,64%
(*) Average balances off
progressively


Indirect deposits (**)            888.748          865.617         23.131          2,67%

(**) Stock average progressive

Margins
                                                                                   %
                                  2009            2008             Change          change
Margin lending                    785             507              278             54,91%
Gross Collection                  1.343           5.025            -3.682          -73,27%
Net interest income               2.129           5.532            -3.403          -61,52%
Net commission                    6.042           5.295            748             14,12%
Operating income                  8.223           11.070           -2.847          -25,71%

The aggregate total deposits (representing the private market, 97.4% of total assets under
management), a decrease of 4.3% over 2008, reaching 1.612 billion euro. This decrease is
determined by the decrease in direct funding to a record -11.6% (-95.3 million euro) and the
growth of indirect (2.7% compared to previous year), reaching 888.7 million of euro, an
increase equal to
23.1 million euro for 2008.
In the context of indirect, against an increase in assets under administration
(100.6 million euro, equivalent to 29.5%), there was a decrease in both the asset
management (-16.1%, -76.4 million euro in absolute value) is collection of insurance (-2 ,
2% -1.1 million euro in absolute value).
Since the use side, the same, with 43.9 million euro, representing 2.6% of assets under
management and recorded a decline compared to 2008 (-9.7%), mainly due to the decrease
in short-term component term.
From an economic standpoint, the market showed a decrease in operating income (-25.7%),
amounting to EUR 8.2 million (-2.8 million euro compared to 2008).
This decrease is the effect, on the one hand, the decrease in net interest income of 3.4
million euro (-61.5% compared to 2008), mainly due to the reduction of spreads on direct
funding in 2009 (-42 bp) and, on the other hand, to increase in commission income, which
amounted to EUR 6 million (14.1%, 0.7 million euro in absolute value) due to the
component of Assets in custody ", which increases 1.7 million euro.
In the course of the year the private network was strongly involved in the placement of
bonds issued by our institute and the Parent UBI Banca. The strong decline in short-term
interest rates has encouraged the reallocation products with durations while increasing
financial liquidity preference that manifested itself in strong first quarter, in part resized.


34
In particular, they have received excellent feedback from our customers of the two issues of
subordinated loans Ubi Bank made in March and June. In light of portfolio diversification,
have been endorsed emissions are also third-party issuers identified by the most innovative
financial profiles, such as: "Inflation Link," "Fix to Float," "Step Up".
Assets under management has essentially stabilized after the sharp falls of 2008 and during
the latter part of the year has resumed the growth trend, allowing you to consolidate, for the
full year, net inflows of approximately EUR 22 million.
Our UBI Pramerica SGR has launched a streamlining of the offer range of mutual funds.
During the last quarter of the year, the private market has been particularly involved in the
operation of "Ter Tax Shield", contributing to about 78% of total assets returned by our
bank.
Customers interested in the return / adjustment of assets held abroad has received all the
necessary assistance to carry out such operations in accordance with rules and invest the
money returned.
In close collaboration with the Private Banking Area of the Parent, have been undertaken
several initiatives to complete the range offered to private customers higher-end, with the
reshaping of the financial counseling service called AWA (Active
Wealth Advisory) and through the structure of "Family Business" and "Asset Protection" for
advice on the subject of generational transitions, family and corporate governance, asset
protection and corporate vehicles.
It was also initiated during the month of November, a project aimed at extending a financial
counseling service aimed at the entire private clients, both retail and private.
The project, according to the guidelines laid down by MiFID, will grow especially in 2010
and is aimed at the formulation of investment proposals, both on individual securities and
complete portfolios in line with risk profile and objectives stable investment with individual
customers.
Finally, with regard to the activities dedicated to the customers, were held successfully and
interest, two meetings called "Time for Excellence" in Rimini and Naples in the framework of
which were also presented the new services of the private market among which the
agreement Collaboration with the American company of real estate consulting "Reag"
working with an all-oriented advice on valuing and managing individual assets or real
estate.




                                                                                           35
The system of internal control

Administrative financial governance model adopted in accordance with Law 262/05
Law 262 of December 28, 2005 (as amended) "Provisions for the protection of savings and
the regulation of financial markets" with the inclusion of art in TUF. 154 introduced in a
business organization of the companies listed in Italy, the figure of the Officer who is
entrusted with the responsibility to arrange for the preparation of accounting records. The
above-mentioned reform is proposed, among other objectives, to strengthen the system of
internal controls related to financial reporting produced by listed issuers.

Gruppo UBI Banca is required to implement the new regulatory provisions and to that end
is fitted with a methodological and organizational (administrative financial governance
model) which, when placed in a context of integrated compliance, allows you to adjust
continuously the activities related verification of the adequacy and effective implementation
of safeguards related to the risk of financial reporting and, consequently, a proper
assessment of the internal control system of reference.

The model adopted inter alia provides for the identification of the scope of application consists of
the UBI Banca Group company, from the accounts and processes are identified as significant for
the production of financial information. Based on its importance, the Bank
was included in the scope of design.

The verification activities carried out on the adequacy and effective implementation of
administrative and accounting procedures for the formation of the budget for fiscal 2009,
confirmed the positive assessment of the effectiveness and efficiency of synthesis of the
administrative and accounting internal control system of the Bank. This conclusion was
supported by specific internal claims, made by the executive bodies of the individual
Company / outsourcer of UBI Bank as required by the "system of claims cascade" model of
governance envisaged in the financial administrative defined.

Based on the work of the Directorate General of the Bank will issue a special certificate, as
delegated by the Board of Directors, the parent company that includes:
    statement on the accuracy, completeness and responsiveness of the accounting records
       of accounts and investments, economic and financial budget and additional
       information provided for individual preparation of consolidated financial statements
       and management report;
    assessing the adequacy and effective implementation of the period of administrative and
       accounting procedures.


Work Environment
With regard to adjustments arising from the rules of the Legislative Decree no. April 9,
2008, No 81 (Consolidated Security) should be found under "Principal risks and
uncertainties faced by the Bank.




36
Reclassified financial statements
Balance sheet and income statement
In order to facilitate the analysis of economic developments of the Bank and in compliance
with CONSOB DEM/6064293 of July 28, 2006, among the reclassified was added to a
separate statement to highlight the economic impact of major events and non-recurring
transactions - because its effects are not significant and financial - that can be summarized
thus:

       2009
       flat-rate deduction for credit IRAP years 2004-2007; 
       Income from divestment of UBI Assicurazioni; 
        integration costs resulting from all the business combination. 

       2008
          liberation of the differences between tax values and tax to December 31, 2007; 
         Income from divestment of UBI Pramerica; 
          modification of the criterion for determining the collective impairment losses on
           credit commitments; 
          integration costs resulting from all the business combination. 


The following tables are represented in the reclassified balance sheet and income
statement.




                                                                                          37
Reclassified balance sheet
(in thousands of EUR)


                                                                                                               Change in       % Change
                                           ASSETS                                  31/12/2009    31/12/2008
                                                                                                                Annual          Annual

     10.        Cash and cash equivalents                                               50.663        80.585       (29.922)         (37,1)
     20.        Financial assets held for trading                                       20.259        26.186        (5.927)         (22,6)
     40.        Financial assets available for sale                                     22.545        24.619        (2.074)          (8,4)
     60.        Due from banks                                                       1.392.357     1.556.711      (164.354)         (10,6)
     70.        Loans to customers                                                   7.332.080     7.744.033      (411.953)          (5,3)
     80.        Hedging derivatives                                                     33.704       149.360      (115.656)         (77,4)
     90.        Remeasurement adjustment on hedging financial activities                32.785        34.814        (2.029)          (5,8)
   100.         Investments in associates and companies subject to joint control        69.169        92.815       (23.646)         (25,5)
   110.         Property, plant and equipment                                          134.477       135.464          (987)          (0,7)
   120.         Intangible assets                                                       31.727        31.727               -          -
                  of which: goodwill                                                    31.727        31.727               -          -
   130.         Tax assets:                                                            121.891       135.338       (13.447)          (9,9)
   150.         Other assets                                                           135.436       116.869        18.567           15,9
                Total assets                                                         9.377.093    10.128.521     (751.428)           (7,4)




                                                                                                               Change in       % Change
                               LIABILITIES AND EQUITY                              31/12/2009    31/12/2008
                                                                                                                Annual          Annual
     10.        Due to banks                                                            78.050       210.965      (132.915)         (63,0)
     20.        Due to customers                                                     4.619.411     4.240.925       378.486            8,9
     30.        Securities issued                                                    3.377.011     4.286.704      (909.693)         (21,2)
 40.+ 50. Financial liabilities held for trading and measured at fair value             20.206        24.978        (4.772)         (19,1)
     60.        Hedging derivatives                                                     47.811        51.315        (3.504)          (6,8)
     80.        Tax liabilities                                                         14.963        62.917       (47.954)         (76,2)
   100.         Other liabilities                                                      287.509       295.059        (7.550)          (2,6)
   110.         Employee termination indemnities                                        34.477        36.616        (2.139)          (5,8)
   120.         Provisions for risks and charges:                                       18.169        19.121          (952)          (5,0)
                    b) other provisions                                                 18.169        19.121          (952)          (5,0)
   130.         Valuation reserves                                                      24.892        21.218         3.674           17,3
160.+170.+180   Capital, share premium and reserves                                    842.446       741.308       101.138           13,6
   200.         Operating profit                                                        12.148       137.395      (125.247)         (91,2)
                Total liabilities and equity                                         9.377.093    10.128.521     (751.428)           (7,4)




38
Reclassified income statement
(in thousands of EUR)

                                                                                                                                     Change in           % Change
                                       INCOME STATEMENT                                            31/12/2009       31/12/2008
                                                                                                                                     Annual             Annual


      10.- 20.         Net interest income                                                               234.174          302.265          (68.091)          (22,5)

         70.           Dividends and similar income                                                       16.437           10.982            5.455            49,7

      40. - 50.        Net fee and commission income                                                     112.008          133.205          (21.197)          (15,9)

  80.+ 90.+100.+110.   Net income from trading and hedging activities                                       (714)           4.428           (5.142)             ns

        190.           Other operating expenses/income                                                      (194)           1.669           (1.863)             ns

                       Operating income                                                                 361.711          452.549          (90.838)           (20,1)

       150a.           Personnel expense                                                                (128.113)        (133.649)           5.536            (4,1)

       150b.           Other administrative expenses                                                     (96.524)         (95.472)          (1.052)            1,1

    170. + 180.        Net value adjustments on 'tangible and intangible assets                          (12.262)         (12.552)               290          (2,3)

                       Operating expenses                                                              (236.900)        (241.673)           4.773             (2,0)

                       Profit (loss) from operations                                                    124.811          210.876          (86.065)           (40,8)

       130a.           Net adjustments/reinstatements for impaired loans                                (115.745)         (94.104)         (21.641)           23,0

   130b. + c.+d.       Net adjustments/reinstatements for impairment of other assets/liabilities            (324)             925           (1.249)             ns

        160.           Net accruals to provisions for risks and charges                                   (3.320)          (2.907)            (413)           14,2

    210. + 240.        Profit / loss from disposal of investments/holdings                                17.077           73.555          (56.478)          (76,8)

                       Profit / loss on current operations before taxes                                  22.498          188.345         (165.847)           (88,1)

            260.       Taxes on current operating income                                                  (9.269)         (44.583)          35.314           (79,2)

                       Integration expenses                                                               (1.081)          (6.367)           5.286           (83,0)

                       Of which personnel expenses                                                        (1.200)          (2.772)           1.572           (56,7)

                               Other administration expenses                                                    -          (6.192)           6.192                  -

                               Net value adjustments to tangible and intangible assets                      (311)            (246)               (65)         26,5

                               taxes                                                                         431            2.843           (2.412)          (84,9)

        280.           Profit / loss of 'non-current assets held for sale net of taxes                          -                -                  -               -
        290.           Net profit (loss) for the period                                                  12.148          137.395         (125.247)           (91,2)




Construction method in the reclassified
Main classification rules:
        -          the overdraft charges recorded in 10 - 20 "Net interest income (EUR 14.6 million and 29.892 million to 31/12/2009 to 31/12/2008)
                   are reclassified as 40 to 50" Net Commissions ";
        -          recoveries of 190 sets recorded under "Other net operating income (EUR 16.758 million and 17.579 million to 31/12/2009 to
                   31/12/2008) are reclassified as a reduction in indirect taxes included in other administrative expenses;



                                                                                                                                                                        39
     -   the valuation adjustments, net tangible and intangible assets includes items 170 and 180 of the key accounting and the amortization
         of costs incurred for leasehold improvements (EUR 1.815 million and 2.029 million at 31/12/2009 to 31 / 12/2008) are classified as
         a statutory statement 190;
     -   the recovery of expenses for services performed by the bank staff at our facility in Jesi, for the group are reclassified as a reduction in
         personnel expenses (EUR 526 000 4.366 million as at 31/12/2008 and at 31/12/2008) and reduction in other administrative
         expenses (EUR 175 thousand to 1.091 million at 31/12/2009 and 31/12/2008);
     -   the Other income / expenses include the item 190, net of reclassification mentioned above.




40
Reclassified income excluding major non-recurring items
(in thousands of EUR)


                                                                                                                 Non-recurring                                                                                        Non-recurring
                                                                                                                                                   31/12/2009                                                                                                   31/12/2008
                                                                                                                                                      net of                                                                                                       net of                     change in
                            INCOME STATEMENT                                      31/12/2009              Disposal of UBI                                           31/12/2008                                                                                                   change in
                                                                                                     IRAP Assicurazioni                                                              “EC
                                                                                                   refund     equity                               non-recurring                   section”                                                                     non-recurring
                                                                                                                                                                                                                                               Integratio
                                                                                                    years   investment                              components                    exemption                     Disposal of       Recovery                       components                       %
                                                                                                                                Integration                                                                                                             n
                                                                                                   IRAP                                                                                                             equity        of
                                                                                                   years                                                                                                        investment in signatory
                                                                                                                                    expenses                                                                                                     expenses
                                                                                                   2004-
                                                                                                                                                                                                BP Todi
                                                                                                    2007                                                                                                         Pramerica         loans
                                                                                                                                                                                                goodwill
                                                                                                                                                                                               substitute
                                                                                                                                                                                                  tax

   10.- 20.     Net interest income                                                    234.174                                                          234.174        302.265                                                                                        302.265      (68.091)       (22,5)
     70.        Dividends and similar income                                            16.437                                                           16.437         10.982                                                                                         10.982        5.455            49,7
   40. - 50.    Net fee and commission income                                          112.008                                                          112.008        133.205                                                                                        133.205      (21.197)       (15,9)
Net income from trading and hedging activities                                            (714)                                                            (714)         4.428                                                                                          4.428       (5.142)             ns
     190.       Other operating expenses/income                                           (194)                                                            (194)         1.669                                                                                          1.669       (1.863)             ns
                Operating income                                                      361.711            -                  -                 -         361.711        452.549             -                -                              -                -        452.549      (90.838)        (20,1)
    150a.       Personnel expense                                                     (128.113)                                                        (128.113)      (133.649)                                                                                      (133.649)       5.536            (4,1)
    150b.       Other administrative costs                                             (96.524)                                                         (96.524)       (95.472)                                                                                       (95.472)      (1.052)            1,1
 170. + 180.    Net value adjustments on 'tangible and intangible assets               (12.262)                                                         (12.262)       (12.552)                                                                                       (12.552)         290            (2,3)
                Operating costs                                                      (236.900)           -                  -                 -        (236.900)      (241.673)            -                -                              -                -       (241.673)        4.773         (2,0)
                Profit (loss) from operations                                         124.811            -                  -                 -         124.811        210.876             -                -                              -                -        210.876      (86.065)        (40,8)
    130a.       Net adjustments/reinstatements for impaired loans                     (115.745)                                                        (115.745)       (94.104)                                                                                       (94.104)     (21.641)           23,0
                Net adjustments/reinstatements for impairment of other
130b. + c.+d.   assets/liabilities                                                        (324)                                                            (324)           925                                                        (633)                               292         (616)             ns
     160.       Net accruals to provisions for risks and charges                        (3.320)                                                          (3.320)        (2.907)                                                                                        (2.907)        (413)           14,2
 210. + 240.    Profit / loss from disposal of investments/holdings                     17.077                    (17.044)                                   33         73.555                                        (73.577)                                            (22)          55              ns
                Profit / loss on current operations before taxes                       22.498            -        (17.044)                    -           5.454        188.345             -                -        (73.577)         (633)                 -        114.135     (108.681)        (95,2)
      260.      Taxes on current operating income                                       (9.269)    (1.629)            234                               (10.664)       (44.583)      (2.233)       (1.672)              1.012          174                            (47.302)      36.638        (77,5)
                Integration expenses                                                    (1.081)          -                  -           1.081                  -        (6.367)            -                -                 -            -         6.367                   -            -               -
                Of which personnel expensesr                                            (1.200)                                         1.200                   -       (2.772)                                                                      2.772                   -            -               -
                      Other administration expenses                                            -                                               -                -       (6.192)                                                                      6.192                   -            -               -
                      Net value adjustments to tangible and intangible assets             (311)                                          311                    -         (246)                                                                        246                   -            -               -
                      taxes                                                                431                                          (431)                   -        2.843                                                                      (2.843)                  -            -               -
     280.       Profit / loss of 'non-current assets held for sale net of taxes                -                                                               -              -                                                                                              -            -               -
     290.       Net profit (loss) for the period                                       12.148      (1.629)        (16.810)             1.081             (5.209)       137.395       (2.233)       (1.672)           (72.565)         (459)          6.367            66.833      (72.042)              ns




                                                                                                                                                                                                                                                                                                       41
Information on the group balance sheet

Loans and bank overdrafts
At December 31, 2009, the positive balance of interbank operations, net of repurchase
agreements made with the Parent Company for collecting customer repurchase agreements,
amounted to 1.2546 billion euro.
The change is due primarily to increased investment of liquidity, resulting from a positive
trend in the short term.

(in thousands of EUR)
                                                                                                      Change in December '09 and
                                                                                                                    December '08
                                                         31/12/2009        31/12/2008
                                                                                                  Absolute                      %
Due from banks                                                1.392.357         1.556.711                 (164.354)                 (10,6)
Due to banks                                                    78.050           210.965                  (132.915)                 (63,0)
                         NET INTERBANK POSITION               1.314.307         1.345.746                   (31.439)                 (2,3)
Repurchase agreements                                           (59.721)         (160.285)                  100.564                 (62,7)

NET INTERBANK POSITION                                        1.254.586         1.185.461                   69.125                    5,8




Loans to customers
In December 2009, loans to customers have reached 7.332 billion euro, a decrease of 5.3%
compared with the number of year-end.
The loans, which account for 61.3% of loans, an increase of 2.4%, while the other technical
provisions, net of impaired assets, fell by 15.4%.


Situation of loans at 31 December 2009
(in thousands of EUR)

                                                                 Exposures                   Losses               Exposures
                    Types of exposure/amounts
                                                               Gross exposure                 total              Net exposure

a) Non-performing                                                452.327                 243.149                      209.178
b) Substandard loans                                             319.818                 51.121                       268.697
c) Restructured loans                                            905                     42                           863
d) Past due loans                                                30.427                  987                          29.440
                                      Total impaired loans       803.477                 295.299                      508.178

e) Performing loans                                              6.885.164               61.262                       6.823.902

TOTAL                                                            7.688.641               356.561                      7.332.080




The Bank's net loans totaled 508.2 million euro, 42.9% more than the value of December
31, 2008.
In particular:
     the non-performing loans amounted to 209.2 million euro, increased by 67.4%
        compared to the value of the previous year, and their relationship to the total loans
       is 2.8%; 
  problem loans have increased from 201.2000000 to 268.7000000 euro, 
     the due exposure amounted to 29.4 million euro, in line with the previous year. The
        2009 figure includes about EUR 24 million overdraft facility between 90 and 180
        days relative to exposures secured by the property reclassified as impaired under the
        rules of supervision for banks which carry out the supervisory information in
        accordance with the standard method. 

The level of coverage of the suffering is past the end of 2008 from 59.4% to 53.8%, while
that for doubtful debts has increased from 14.1% to 16%.

42
The allocation of general reserves of the Bank (61.3 million euro) presented a level of
coverage of performing loans amounted to 0.89% (0.85% at end 2008).


Financial assets
.

At December 31, 2009, financial assets have the following dynamics:
              "financial assets for trading amounted to EUR 20.3 million and represent the
               positive fair value of derivatives trading;
              "financial assets available for sale" are past 24.6000000-22.5000000 euro, mainly
               for the sale of Meliorbanca SpA, which has led to the recognition of a gain of 367
              thousand euro; 
              the "hedging", amounting to € 33.7 million, fell 77.4% due mainly to the evaluation
              of DCS related to issuance of certificates of deposit in yen; 
              the "Fair value of financial assets in hedged" amounted to a positive € 32.8 million
               and represents the fair value of loans to customers covered in "macrohedging. 


Customer deposits
(in thousands of EUR)


                                                                                       Change in December '09 and
                                                                                                     December '08
                                                     31/12/2009       31/12/2008
                                                                                       Absolute             %
    Direct customer deposits                              7.996.422        8.527.629        (531.207)               (6,2)
    Indirect customer deposits                            3.670.730        3.576.283          94.446                 2,6
                 of which: Assets under management        1.937.870        1.978.948         (41.078)               (2,1)

    TOTAL ADMINISTERED CASH CUSTOMERS                   11.667.151        12.103.912        (436.761)               (3,6)




Direct revenues
The consistency of the direct deposits amounted to 7.9964 billion euro, or 6.2% less than
the figure recorded at the end of 2008.

Amounts due to customers stood at 4.6194 billion euro, representing an increase of 8.9%. The
growth was mainly due to the current accounts (12.6%), representing 97.6% of the total, partly
offset by the decline in repurchase agreements (-62.3%).

Securities issued, amounted to 3.377 billion euro, a decrease of 21.2% compared with the
number of year-end. The decrease is mainly due to entry
"Other securities" (composed mostly by short-term certificates of deposit in foreign
currencies, primarily Japanese yen), which has decreased over the period of about 879
million euro. The reduction is attributable to 857 million euro to volume effect, and EUR 22
million to effect change. With regard to bonds, notes that came to the natural expiration
subordinated loan (Lower Tier II) floating rate issued on December 14, 2001, lasting eight
years, for which the Bank had decided not to exercise the option repayment expected.
We would point out that in the aggregate are included EUR 1,145 million of bonds
underwritten by the parent company and aimed to put the structural balance of assets and
liabilities of the Bank.




                                                                                                                      43
Indirect revenues
(in thousands of EUR)

                                                                            Change in December '09 and
                                                                                          December '08
                                            31/12/2009      31/12/2008
                                                                            Absolute             %
Assets under custody                            1.732.860       1.597.335         135.525                 8,5
Assets under management                         1.937.870       1.978.948         (41.078)               (2,1)
     Asset management                             356.728         377.690          (20.962)              (5,6)
     Mutual funds                                 867.785         880.415          (12.630)              (1,4)
     Insurance policies and pension funds         713.357         720.843           (7.486)              (1,0)

TOTAL INDIRECT CUSTOMERS                        3.670.730       3.576.283          94.446                 2,6




At December 31, 2009, is the indirect, market values, was equal to 3.6707 billion euro, an
increase of 2.6% compared to the amount of end 2008 (3576300000). The increase is
primarily attributed to the fund assets under administration, is positively affected by the
rebalancing of portfolios of
Customers, both from supply of bonds, subordinated or otherwise, issued by the parent
company in 2009, and placed at their doors, for a total nominal value of 161.5 million euro.
Slight decrease in the stock of insurance (valued at market prices).

Shareholders’ equity

For more detailed information please refer to separate "Statement of changes in equity".




44
About the reclassified income statement

Net interest income at 31 December 2009 stood at 234.2 million euro, a decrease of 22.5%
compared to the corresponding value of the previous year, due mainly to the reduction of
the rate spread and evolution of all volumes intermediated.

Dividends amounted to EUR 16.4 million against 11 million euro of the previous year. The
increase was due mainly to collection of dividends from UBI Assicurazioni
SpA

Net commission income stood at EUR 112 million, down 15.9% compared to December 31,
2008. The decline has focused, in particular, the fees related to the asset management,
partly offset by the good performance of managed thanks to the placement of bonds of the
parent company (3.8 million) and third-party obligations (2.5 million ). Even the fees on
checking accounts, including the CMS, show a decrease of 13.9%.

The trading and hedging activities made a loss amounting to 714 thousand euro, analyzed
as follows:

                                                                                  31/12/2009            31/12/2008
net trading assets (*)                                                                          910               2.823
Net income from hedging activities (**)                                                     (1.015)               1.044
- Net sale / repurchase loans                                                                     -                (604)
 Profit-sale / repurchase activity since. disp. sale (***)                                      367                 170
good sale / repurchase financial liabilities                                                  (976)                 995
                                                                                              (714)               4.428

(*) The result is positively influenced by / valuation of domestic currency swaps related to certificates of deposit in
yen.

(**) Net income from hedging activities include the result of the negative effect of coverage on loans for market rate
developments, the lapses and re-negotiation of the fixed rate. Only partially offset by positive contribution of hedge
accounting on bond.

(***) The 2009 figure refers to the gain realized from the liquidation of Meliorbanca SpA



Other expenses / income showed a loss of approximately EUR 0.2 million. This item
includes the cost, amounting to EUR 3.6 million on the definition of a settlement agreement
with an important economic group.

As a result of these dynamics, operating income totaled 361.7 million share of the euro, with
a decrease of 20.1% compared to December 31, 2008.

On the cost side, the "staff costs" amounted to 128.1 million euro, down 4.1%. The decrease
is mainly attributable to lower provisions for the company bonus and incentive system and
changes in organic (-49 medium resources).
The "other administrative expenses, which amounted to 96.5 million euro, an increase of
1.1% compared to the December 31, 2008. It should however be noted that since 2009
include the negative impact of the VAT group, representing about 2 million euro, as
specified in the bottom of the table, "other administrative expenses: breakdown." Excluding
this effect the voice of suffering from a decline of 0.9%.

Value adjustments on tangible and intangible assets amounted to EUR 12.3 million.

Overall operating costs, together accounted for 236.9 million euro, 2% less compared to
same period in 2008. The cost / income ratio, calculated by dividing operating costs to
operating income, amounted to 65.5%.

                                                                                                                      45
The operating profit stood at 124.8 million euro, down 40.8% compared to December 2008.

The net adjustments to loans rose 94.1000000-115.7000000 euro for more write-downs on
loans in default and a general deterioration in credit quality related to the continuing
financial crisis and its substantial impact on real economy. The cost of credit amounted to
1.58%.

The adjustments to / recoveries on impairment of other assets and liabilities, show a loss
amounting to 324 thousand euro. Involves the evaluation of credit commitments, which
totaled 292.9 million euro, with a coverage level of 1.08%, and the assessment of
commitments, which amounted to EUR 106 million with a coverage level of 0.24 %. As
shown in the non-recurring items in 2008, was made the alignment method of calculating
depreciation on loans used to sign on to that cash credits performing with a positive effect of
about 0.6 million euro.


Net provisions for risks and charges amounted to EUR 3.3 million, compared to previous
years. Include appropriations for revocation for about 600 000 euro, compounding causes
and investments amounting to about 1.7 million euro, as well as claims for 442 000 euro.

The gain or loss on the disposal of equity investments consist essentially of the profit earned
from the sale, in 2009, participation in UBI Assicurazioni (17 million euro) for 2008
participation in UBI Pramerica (73.6 million euro) , both non-recurring items.

The gross profit from continuing operations, amounted to EUR 22.5 million.

Taxes amounted to EUR 9.3 million and include the positive impacts resulting from the
application of tax rules, as detailed in "Report on the Management - Tax Aspects" and
"Statement of non-recurring."

Integration costs, non-recurring items, 31 December 2009 amounted to EUR 1.1 million,
net of related taxes. At 31 December 2008 together accounted for 6.4 million euro, net of
related taxes, and consist primarily of charges related to migration to the new system to
target 4.2 million and EUR 2 million for charges related to training / coaching staff of the
bank.

The profit for the period amounted to EUR 12.1 million.


                                             *****




46
The research and development
A summary of the main design developed in 2009 by the Innovation and Design
Management Information Systems Architecture Division. They include, in some cases of
projects which, although not born from specific business needs, identify developmental
opportunities of the information system for the benefit of improved efficiency and
effectiveness of business processes, and in relations with customers.

In context of the "unified communications" (integration of telephone and workstation PCs),
which started in 2008, together with the progressive activation on the perimeter Parent
Network Banks of the VoIP platform 19, work continued on the evolutionary value services
added that take advantage of that platform.

On the subject of the search engine was conducted an evaluation of two types of engines on
the market, statistical and semantic: the first eligible to popular search optimization in
general areas, the latter ideal for how to search in more specialized and closer to natural
language . The resulting development activities in optical application was addressed to the
business sectors "Statement" and "Help Desk".

As for video conferencing systems - already widely used in the UBI installed with over 150
locations - in the perspective of further increase usage and improve the effectiveness of
communication is appropriate, in parallel with the gradual expansion of the number of
stations, to improve its quality solutions with the introduction of high definition. In addition
during the year was tested, for adoption on a large scale, the integration of video-
conferencing technology in the same workstation (PC). The proposal is of particular interest
to the Head Office and the Regional Network of individual banks, representing both a valid
instrument to support decision making and information sharing, is an enabler for reducing
costs and risks associated with the movement of people .

In light of an ongoing commitment to identify solutions to improve the relationship with
customers of retail banks, has started a project called "new workplace", which provides for
the adoption of an innovative user interface oriented to the simplification and efficiency
activities, particularly through leadership of the business process.  The first application
context will cover the provision of loans to retail customers and in this context is also
provided for the activation of a document management platform enabling the
dematerialisation of documents in optical paperless.

In the field of multi-channels have been explored new technologies and tools - based, for
example, systems of Virtual Assistant, semantic search and recognition of natural language
- Plug-in potentially different access channels available to customers (Internet and phone)
for facilitate their interaction.

Finally, in terms of technology architecture central department, in line with the strategic
guidelines regarding the evaluation of new technologies, was conducted the analysis of the
market scenario and the main development trends of the sector to identify an architecture
and platform that guarantee the same level of service of existing infrastructure, introducing
significant economic benefits. The final solution was achieved through the adoption as early
as 2009, operating systems and open standard hardware market with a better cost /
performance ratio.




Technology that allows you to make a phone call using an Internet connection.

                                                                                             47
Contracts with Group companies
In accordance with Circular No. 262, December 22, 2005 issued by the Bank of Italy, I °
Update November 18, 2009, remarks on relations with the Group companies and related
parties was included in the notes, part H, to which it refers.




48
OTHER INFORMATION
Information on shares of Parent and art. 2428 cc.
It is noted that the Bank has not carried out in respect of the securities portfolio, buying
and / or sale of treasury shares, or shares of the parent and at year end did not hold
treasury or treasury shares or shares of the parent.

Tax Shield
Tax Aspects
We have introduced a provision of amnesty for illegal detention abroad, as at December 31,
2008, any activity can produce income such as financial assets or real estate. The period for
use of the measure was fixed from 15 September 2009 to December 15, 2009, however
indirectly extended until December 31, 2010 where there were "any obstacles" at the
conclusion of the operation of emergence, however, be implemented by December 15.
This has meant that taxpayers addressees of that measure, typically individuals or entities
to those equivalent point in taxes, should pay the substitute tax of 5% by the above date
with the commitment to conclude the repatriation operation, or return legal regularization
by the next 31 December, 2010. The typical causes of impediments which are incurred by
taxpayers due to the existence of complex financial structures or foreign to the
incompatibility / criminalization of certain securities held abroad with the domestic tax
rules. Compared to previous similar amnesty has proved entirely new legal return of
property, precious works of art etc. which led to the solution of complex aspects of a
contractual nature.
At the end of the year the Government issued Decree December 30, 2009 No. 194 which was
further illustration of the amnesty which runs from December 30, 2009 and until April 30, 2010.
The substitute tax, still other aspects, was increased from 5% to 6% when the emergence occurs
before February 28 or 7% if made by April 30, 2010.
It is understood the highest end of December 31, 2010 in the presence of any obstacles that
prevent the improvement at the time of submission of the declaration.
It should be noted as included in the regulatory impact of art. 13 bis of DL 78/2009 has
been increasingly subject to legislative extensions and / or interpretations which have
imposed on intermediaries frequent review of its procedures. It cites, for example the
extension of amnesty to the holding of investments in tax havens (CFC) or, as mentioned
earlier, real estate companies (SCI).
The Group noted the central role of intermediaries in the implementation of this legislation,
has made its facilities available to customers of financial assistance, including legal and tax
advice on organizing conferences and meetings with professional associations.

Limits to the depreciation of new tax credits
It has been integrated discipline of the depreciation deduction for IRES purposes of
providing loans to customers, only for new loans disbursed from July 1, 2009 that exceeds
the average of the previous two years, raising the deductible in the year share, which passes
Ordinary 0.30% to 0.50%, and reduce the time period of the tax deduction of any excess
over this threshold percentage from 18 years to 9 years (art. 106, paragraph 3-bis, Income
Tax Code).
The rule is not enforceable, since the lack of coordination between the ordinary deductibility
the devaluation of receivables (art. 106, paragraph 3, Income Tax Code) and the new
forecast mentioned above, the latter uses normative expressions do not coincide with those
used for ordinary depreciation. This prevents the state not only an estimate of the economic
and financial effects of this legislation on current year but the same application of the
measure.
On this point it should be noted as the trade association is engaged in an intense discussion
with the Legislature in order to align more generally, the fiscal discipline of bad debts to the
standards of other EU countries. The domestic legislation as well as the application complexity
described above, also included in the scope of accounting standards IAS / IFRS, creates

                                                                                             49
a significant amount of deferred tax on large time periods - see 18 years.

VAT intragroup
As is known to make time from 1 January 2009 is fully operational the art. C.2 10
Presidential Decree 633/72, under certain conditions, exempts them from VAT the supply of
services made by consortia or joint venture companies for the benefit of its members. From
the same date, was repealed the art. 6 of L. 133/99 which exempted from VAT in general all
services rendered in the context of ancillary activities between persons of the same banking
group. In this changed context, the Group has transformed into a consortium owned UBISS
to send a series of free computer and administrative services primarily made from this to
other Group companies. Given the federal structure of UBI still remains a significant
penalty in terms of taxation on the amount due on a wide range of services provided by the
parent company.
Despite the positive gaps around the activities of consortia and the type of members that the
Internal Revenue Service has clarified with Circular No. 23 of 8 May 2009, there remains
the need for banking groups, insurance and all kind of businesses ready for implementation
in our sort of cd VAT single group that would send it free of charge transactions that occur
between individuals belonging to the same economic group.


Deductibility lump credit IRAP
Decree Law No. 185/2008 (so-called "anti-crisis decree") introduced with effect from the 2008 tax
period, the flat-rate deduction of 10% of IRAP to the IRES. The measure in question also provided
for the retroactive application of the tax deductibility to the periods from 2004 to
2007.
As for what concerns the tax year 2008 has already given the benefit of deductibility IRAP in
the payment of the balance IRES, for the years past have been electronic transmission, via
the Parent UBI, special requests for refunds.
In relation to each tax period is for the repayment of the Bank increased IRES and that even
with tax loss, in which case, the increased loss resulted in loss of income is counted in the
first period of profit after tax.
For the annual membership to the group tax amount to be reimbursed - as reported to the
total income from fiscal consolidation - Consolidation will be recognized at the UBI, which
will subsequently allocated to the individual companies of what is due because of the
individual income restated. Conversely, for the extra annual consolidated tax refund directly
to individual companies will be recognized instantly.
That said, it is reported that the total amount requested for reimbursement electronically for
the years 2004-2007 amounted to previous 1.629 million euro.
The total amount is, for individual annuities, allocated as follows:
     • year 2004 EUR 290 000;
     • EUR 349 000 in 2005;
     • EUR 487 000 in 2006;
     • 503 000 euro in 2007.

Given that the repayments will be made by Inland Revenue in the spending limit set by
decree crisis (ie EUR 100 million in 2009, euro 500 million in 2010 and euro 400 million in
2011) is considered probable when the repayment of loans in question, although this can be
done in a manner in installments and a relatively long time.
From an accounting point of view, the balance sheet at December 31, 2009, was carried out
to inclusion of a claim for an amount equal to full amount shown above in return for lower
taxes to registration of the exercise.




50
Tax Consolidation
The Bank, in 2009, joined the so-called regime of "fiscal consolidation". This institution is
essentially the presentation by the Parent of a single tax return in which you add up the
taxable losses, and withholding and tax credits of each company participating in the
consolidation. The membership then allows the Bank to carry out the tax burden in a Group
perspective.


The draft Spatial Optimization of Network Banks Group
In January 2010 the project has been realized by optimizing the local retail banks approved
September 30, 2009, aimed to optimize, in the context of the Federal reference model, the
distribution of the Group through the specialization of individual banks by geographical
area, with focus on historical roots of 20 territories.
Have been attributed almost exclusively to cover every territorial Bank Network, through the
grouping of the Group's subsidiaries on the same territory under a single brand of reference,
to the advantage of increased market share and greater visibility for each individual Bank
Network and a parallel simplification of business development and credit management.

The operation involved the intercompany transfer of 316 branches and about 2,200
resources from the European Regional Bank (BCC), Banca Popolare Commercio e Industria
(BPCI), Banca Popolare di Bergamo (BPB), Banco di Brescia (BBS) and Banco di San George
(BSG). In detail:
    BRE Bank has become the reference for the Piedmont (with provision for transfer of the
        Directorate General from Milan to Turin);
    BPCI has become the bank of reference in the Lombard provinces of Milan and Pavia,
        and in the provinces of Emilia Bologna, Parma, Piacenza, Modena, Reggio Emilia and
        Ferrara;
    BPB has become a reference bank in the provinces of Bergamo, Varese, Como, Lecco
        and Monza-Brianza;
    BBS has become a reference bank in the provinces of Brescia, Lodi, Cremona, Mantua
        and Triveneto;
        BSG has finally become bank of choice in the region of Liguria.

It was however confirmed the current focus area of Banca Popolare di
Ancona, Carime Bank and the Bank of Vallecamonica.

Under the project, the Bank Group's network UBI now operate with a single brand in 74 of
the 78 provinces where they operate.


Adaptation to the new provisions on transparency
On 1 January 2010 came into force the new provisions on transparency of transactions and
banking and financial services issued by the Bank of Italy, by decision of 28 July 2009.
They apply to all transactions and a banking and financial services, including consumer
credit, with the exception of services and activities as well as the placement of financial
products.
In terms of transparency must be recalled, however, the implementation in Italy, with D.
Legislative Decree No. 11 of 27 January 2010 entered into force on 1 March 2010, 2007/64
of the European Directive on payment services, the so-called PSD - Payment Services
Directive.
The Decree of objectives of transparency and customer protection, identifying terms of
service and charges for the bank and, by differentiating the rules that must be bound in the
same performance of the services offered. At the same time introduces a new framework for


20 The transaction was completed effective January 25, 2010 after obtaining the required authorizations from the competent authority and after the
signing on January 23, 2010, the Memorandum of Understanding with the

Trade Unions.

                                                                                                                                                     51
the market access for online payment of legal persons other than banks and electronic
money institutions.
The main change concerns the obligation, January 1, 2012, to prove the value of
transactions on behalf of the beneficiary by the end of the business day following that on
which the order was received. Until that date, the parties may agree to apply a different
term, which may not exceed three business days. In this regard, the UBI provides two days
for domestic credit transfers and SEPA on the network for three days in the field of foreign
PSD.


Interventions "Anti-crisis" in support of small and medium-sized enterprises and families
In the course of the year the Group's banks have set up a series of interventions to support
families and the realities of their economic and productive areas of reference, working with
public institutions (Chambers of Commerce, Regions and Provinces) and the Government
Guarantee 22.

At the same time the Group has adhered to the major initiatives at the system level by the
Italian Banking Association. On 12 August the UBI has adhered to the "Agreement for the
suspension of debts of small and medium-sized enterprises to the banking system" (and
subsequent additions) signed on August 3 by the Ministry of Economy and Finance, from
ABI and other associations of Monitoring bank-firm, to support SMEs that are in temporary
financial difficulties but having a reasonable chance of economic and business continuity.
A further condition is that these companies as of September 30, 2008 positions were
classified by the bank only "performing" and that at the time of submission of application
does not present positions "refurbished" or "suffering", or enforcement proceedings under
way.

The agreement, made operational Sept. 28, 2009, provides four measures: i) suspended for 12
months of the principal portion of loan installments ii) suspension for 12 or for six months of
the principal amount of the fees or real estate leases, respectively security; iii) elongation at
270 days of the maturity of bank loans on short-term iv) provision of special funding aimed at
supporting the strengthening sheet 23.

In order to allow a more streamlined operational management of all applications for
membership agreement, a procedure has been prepared specifically for the resolution of
applications for admission to the benefits of the moratorium.

According to the definition of the legislation are considered small and medium entities engaged in economic activities, irrespective of legal
  form, employing fewer than 250 people, with annual turnover not exceeding EUR 50 million or total assets less to 43 million euro.
the 'Trust Agreement' with the Chamber of Commerce of Bergamo, the "Protocol with the Province of Brescia for SME support, the agreement
  with Federfidi Lombardia for the management of the product" Confiducia, the efforts of local Chambers of Commerce and the Region of
  Lombardy Lombardia for the consortia in the field of trade, the "Solidarity Fund" established by the Region Marche to support access to
  credit for SMEs Marche, the "Memorandum of Understanding - together to overcome the crisis and boosting development "with Coopfidi
  Rome, the project of the Calabria region for the provision of soft loans for young women and initiatives for self employment and starting
  micro-enterprises in Calabria.

  With reference to the families each Bank Network has signed agreements with various local authorities (eg.
  Province of Milan, Varese Province), to support those customers, holders of mortgages and / or personal loans,
  redundancy, to which was given the opportunity to request the suspension of depreciation rate in the same
  queue with the natural expiration of the original loan. Also at the local level initiatives have been aimed at
  anticipating the extraordinary layoff to assist families in need.
By October 23, 2009 circular of the ABI has been expanded the scope of financing transactions to be assisted, in particular the eligibility has
  been clarified, with regard to the lengthening of maturities, including lines of credit for short-term advances on loans not secured by
  "notification" and "confirmation".
                               ABI By circular dated 14 January 2009 was also supplemented the list of measures
  that banks may take the benefit of businesses in temporary financial difficulty to be operational within thirty
  days from the date of enactment of the Circular (ie by February 13): elongation at 120 days of the expiry of
  agricultural loans of tenure, improved with or without the use of agricultural bills, extension of operation of the
  suspension of 12 months of the share capital of the depreciation rate of MLT loans secured by issuance of
  promissory notes, extension of the scope of application of benefits with a contribution to funding public interest
  or capital.

52
As regards, in particular, the offer provided for by agreement of actions to strengthen
financial position of SMEs, the UBI has provided the credit line "200% immediate
Recapitalization, which provides funding equal to two times the increase capital actually
paid by the members of the company, up to a maximum of EUR 4 million.
The supply of commercial banks in the Group also provides the following two additional
lines of credit backed by collateral arrangement of the major consortia, which have better
features than as provided by agreement:
"400% Support and Development, funding of up to four times the capital injection by
shareholders of the company (for a maximum of 500 000 euro), to support growth plans
through the implementation of fixed investment;
"200% Increase in the capital structure, funding amounting to double the capital injection
by shareholders of the firm (corporation, persons or businesses), for a maximum of EUR 1
million, aimed at supporting processes capitalization and re-balancing of sources of
financial firms. The disbursement of these funds is also foreseen in case of delayed
payments of capital or destination in time to reserve for future operating profits.

Also in optical trigger action "anti-crisis", August 6 UBI Group has signed a loan agreement
with the Bank for Deposits and Loans (CDP) pursuant to the agreement by the ABI and the
CDP 28 May 2009 to offer new funding opportunities at favorable conditions for small and
medium enterprises through the use of CDP funding earned from savings accounts.
UBI Group was provided a credit line of EUR 156 million (in the context of a first tranche of
3 billion expected at the system level 24) to finance investments to be made and / or being
or the increase in working capital SME
(As defined in the Community).
The action allows the network banks of the Group to provide financing to SMEs on better
terms, taking into account the reduction in cost of funds made by the Cassa provided for in
that Convention for banks with a Tier I ratio above 7% , in which the Group can benefit
from UBI.
The term of repayment of the loan granted by the Cassa to member banks at the beginning
is set at a maximum of 5 years with a grace period of 3 years at a rate equal to six-month
EURIBOR plus a spread of 70 to date basis points for banks with a Tier I ratio less than or
equal to 7% or 50 basis points for banks with a Tier I ratio greater than 7%.

For households, January 20 the UBI has acceded to the agreement to suspend repayments
of loans in relation to families in difficulties as a result of the crisis, signed by ABI and
thirteen consumer associations 25. It is one of the initiatives of the "Family Plan" ABI, which
aims to enhance the sustainability of the market for retail loans.
The measure, unique in the European mortgage market, is a solution similar to the
"Agreement for the suspension of debts of small and medium-sized enterprises to the
banking system" described above.

The UBI has also acceded to the Framework Agreement signed in May 2009 by ABI and the
CEI (Italian Episcopal Conference), providing the "Loan of hope" for the families who have
lost all earned income, are not granted pensions or outside income, other than that
generated by the properties of the dwelling house or


On 17 February 2010, the Cassa ABI signed a new Convention that establishes the distribution and use of the second tranche of 5 billion euro.
In summary, the agreement provides for the suspension for at least 12 months of repayment of loans up to 150,000 euro on for the purchase,
   construction or renovation of the main, even with late payments of up to 180 consecutive days, to customers :
  - with taxable income up to 40,000 euro per year;
  - who suffer or have suffered particularly badly in 2009-2010 events (death, loss of employment, conditions of
    occurrence of long-term care, access to the layoff).

       53
allowance of layoff Ordinary or Extraordinary and aimed at the realization of projects for the
start of a re-employment ol business.
The disbursement of these loans, available from September and up to 2012, has been
centralized in Banca 24-7.


Consortium PattiChiari: the commitment to quality
As is known, in the context of a wider project to improve relations with retail customers, in
2008 the Italian banking industry has entrusted to the Consortium PattiChiari the new role
of "vehicle segment" for the implementation of a broad plan of action provides for the
production, management and dissemination tools of simplicity, clarity, comparability and
mobility of customers (the "Commitment to Quality") and financial education programs of
the community.

Banks UBI Group, already present in PattiChiari Consortium since its inception (September
2003), have readily confirmed their participation in sharing the importance of a renewed
commitment to the field in offering high standards of customer service.

The project activities were therefore primarily aimed at the gradual establishment
Commitment to quality and other initiatives promoted by the Consortium, in accordance
with "implementation plan" as defined in associations and in line with the constant
evolution of the regulatory context.

In this regard, it highlights the fact that, confirming the positive recognition of self-
regulatory industry, the recent review of public regulation on transparency adopted by the
Bank of Italy has implemented various elements internally designed and developed by
intermediaries at the level of self-discipline, thus inducing the Consortium to bring the
scope of its intervention to avoid duplication of effort.
Commitments to quality "summary information sheets" (commitment phase 1) and "Easy
Account Statement" (commitment phase 2), initially under the Statute PattiChiari were
therefore excluded from self-contained in what has been inside the new Bank of Italy rules
on transparency.

In 2009, the Bank has started all fourteen Commitment to Quality Phase 1 26, ten
commitments to the quality of phase 2 27, and four additional 28 voluntary steps.


Code for the Protection of Personal Data
In compliance with Rule 19 of the Technical Regulations, Annex B to the decree. 196/2003,
was completed within the terms of Law 29 of the annual update document

26 Commitments for the Quality of Phase 1 activities are: current accounts comparison engine to packet engine comparing current accounts;
composite indicator price for current account package; composite indicator price for current accounts; driving "change account" guide "mutual
exchange" informed investment; automatic transfer RID, published in the average time to close the current account data portability Auto
loans, monitoring of the times of closure of accounts and information on ATM fees on ATM terminal ; monitoring the quality of indirect
channels of employment and credit management through brokers, the timing of reimbursement objections wrong / not allowed on the cards.

27 Commitments for the Quality of Phase 2 activities: comparison engine for the Financial Inclusion Service
(formerly Basic banking services) composite indicator price for the service of financial inclusion, driving safety, auto
Ri.Ba. portability; Automatic transfer rate mortgage charges and / or loan monitoring service levels FARO, FARO
centralized call center, financial inclusion service, attesting to the tax deductibility of interest on loans, online
banking security. The commitments for which has yet to be completed during the activation or release of such
standards by the Consortium are: protection card misuse, automatic transfer credit, automatic transfer securities
portfolios; automatic transfer credit card statements.
28 General criteria for assessing the credit worthiness of SMEs, average response times on lending to small
businesses, certain times of availability of funds paid by check; availability of the list of regulated services to the
account.


54
Security Planning (DSP) required by art. 34, paragraph 1, letter g) of the above decree.
Regarding in particular the processing carried out by computer, the Bank has outsourced at
UBI Sistemi e Servizi ScpA latter ensure, in the context of the contract of service,
compliance with the law in el adoption of security measures by law.


Social and Environmental Responsibility
The social responsibility of the UBI Banca Group is based on a system of values which has
its main references in the Charter of values and principles of the Global Compact and find
concrete implementation through the Plan for Social Responsibility. The Charter of Values -
came after a thorough process of analysis and sharing, which involved 120 managers of the
Parent Company and the various banks and companies of the Group - sets out the mission,
vision and the nine values that guide the strategic choices el daily operations. The Global
Compact - signed in September 2002 - is an appeal launched in 2000 by then UN Secretary
General Kofi Annan to all actors of society to work together to build a more equitable and
sustainable global economy.
In 2007, with the establishment of the Group, has started a process of identifying and
formalizing a working plan which aims to seek a government system of social responsibility
in a perspective of integration of goals and specific projects in the industrial plan of the
Group.

The Plan for Social Responsibility
The Plan for Social Responsibility - is consistent with the time horizon of the Business Plan
which will gradually integrate with - identifies four broad areas (Corporate Governance,
Business Management, Management of social intervention, reporting and monitoring), a
series of objectives and mechanisms / tools (eg Code of Ethics, Policy on CSR issues) needed
to achieve these objectives. All corporate structures are involved in defining and achieving
the objectives of the Plan of CSR, with the support staff Corporate Social Responsibility,
which formulates proposals for policies and guidelines, assist in the management and
control, supports the involvement of stakeholders, and oversees the work of reporting.
Through the gradual integration of the objectives of social responsibility in the Business
Plan, UBI Bank follows the convergence of strategies, policies and business goals with the
values and principles of reference and with public expectations for value creation through
sustainable reputational risk control, the affirmation of a distinctive corporate identity and
the pursuit of a climate of trust of the staff, the social base and the market.

In the field of Corporate Governance was launched in 2008, with the involvement of all our
company, the network banks and major product companies, the drafting of the new Code of
Ethics, a work of mapping stakeholders and ethical issues relevant . The Code identifies the
bundle of rights, duties and responsibilities of business in respect of all its stakeholders and
accept them into concrete commitments to each of them. There is currently integrating the
specific rules of conduct aimed at all those working with and / or on behalf of the Company both
inside and outside the organization to corporate management to ensure compliance not only with
the values and principles of reference, but also to laws, regulations and voluntary codes of
conduct adopted. Parallel to the drafting of the Code of Ethics, in 2008, besides the adoption of
specific policies, was launched in collaboration with Vigeo Italy, a review of all company policies
in relation to relevant social responsibility issues.
With regard to environmental responsibility, the Group, in addition to pursuing full and
substantial compliance with environmental, aims at contributing to sustainable economic
development and the achievement of targets under the Kyoto Protocol, thus giving concrete
effect to the principles endorsed by Global Compact.


29 The update of the DPS for the year will be approved by the Board of Directors March 12, 2010.

                                                                                                   55
In December 2008, was formally adopted the policy environment (in addition to the weapons
policy adopted in 2007) which identifies how the UBI Banca Group intends to manage its
environmental responsibilities, both to the community in which it operates and towards the
future generations in a medium-to long-term.
With the policy environment, the Group is committed to reducing its environmental impact
through intelligent management and is responsible for the impacts generated by the
activities of business, eg in terms of resource consumption, waste production and emission
of harmful substances (direct impact ) as well as those generated by the conduct adopted by
third parties with which the Bank shall cooperate and face each day as customers and
suppliers (indirect impacts).
The adoption of an environmental management system provides for the direct impacts, the
rational use of el eliminating waste, the use of renewable energy and / or low emission,
reduction and disposal of waste, the use of products and services with lower environmental
impact, sustainable mobility and to prepare for emergencies.
With regard to indirect impacts, the Group's objective is to encourage customers to run their
business in a sustainable manner, providing appropriate products and banking services,
financial and risk management.

In addition to controlling the direct and indirect impacts of their business operations, the
Group is committed to eventually bring about a greater environmental awareness,
promoting responsible involvement not only of its staff, but also interacts with all
stakeholders and the community at large.


Principal risks and uncertainties faced by the
Bank's Risks
The Bank attaches primary importance to measure, manage and control risks, such
activities are necessary to ensure sustainable value creation over time and to consolidate its
reputation on the markets.

In compliance with new provisions for the prudential supervision of banks (Circular
263/2006 of the Bank of Italy), the Bank has set up a process to determine the total
adjusted capital - in terms of current and prospective - to address all material risks that it is
or might be exposed, according to its operations (process ICAAP - Internal Capital Adequacy
Assessment Process).

In this context, the Bank has undertaken a thorough identification of risks to be assessed in
accordance with its operations, to their characteristics and markets.
The task of risk identification is carried out continuously. It is aimed at verifying the
relevance of the risks of the Bank already being evaluated and pick up the signals of the
occurrence of other risks. The identification provides a precise conceptual definition of risk
to which the Bank is exposed, the analysis of the factors that contribute to generation, and
the description of their mode of manifestation. This activity was conducted through a
centralized analytical process, complemented by a self-assessment conducted in relation to
all entities of the Bank.

Once you have completed the task of identifying the relevant risks, the ICAAP requires an
assessment of the risks identified and the determination of the total capital suitable to face
them (capital adequacy), and in optical current and prospective. For a better assessment of
exposure to risk mitigation and control systems and adequacy of capital, the Bank also uses
stress testing specifications (by which we assess the impacts on a single risk) and global (via
the which assess the impacts of all risks together).

The Bank has adopted a system of governance and risk management covering the areas of
organization, regulations and methodology to ensure consistency of operation to their risk
tolerance.

56
Consider the mission el Bank's operations and the market environment in which it operates,
the risks have been identified for evaluation in the ICAAP, categorized Pillar and Pillar, as
indicated in the reference standard.

The risks of Pillar - already has a presence required by the regulatory requirement
Surveillance - are:
     credit risk (including counterparty risk), risk of losses arising from default by a party
         against whom a credit exposure exists;
     market risk: the risk of changes in market value of positions in the trading book for
         regulatory purposes to unexpected changes in market conditions and merits credit;
         it includes risks arising from unexpected changes in exchange rates and prices
         goods that relate to the positions of the entire budget;
     Operational risk: the risk of incurring losses resulting from inadequate or failed
         internal processes, people and systems or from external events, fall into this
         category losses arising from fraud, human errors, interruptions of operations,
         unavailability of systems, breach of contract , natural disasters, including the risk
         is legal.

In addition to the risks of Pillar, were identified measurable risk of second pillar, for which
formal quantitative methods that lead to the determination of an internal capital, and risk of
non-measurable second pillar, which shall be evaluated by qualitative (policy, control
measures, mitigation or mitigation).

The risks of second pillar of the Bank under analysis are the following:
   1) Measurable risks:
            concentration risk: risk arising from exposures in the portfolio 
               bank counterparties or groups of counterparties in the same industry or
               engaged in the same activities or belong to the same geographic area, the
               concentration risk can be divided into subtypes single name concentration
               risk and sector concentration risk;
           current or prospective risk of a change in net interest income and economic
               value of companies as a result of unexpected changes in interest rates that
               impact the banking book;
           the risk of adverse changes and unexpected earnings / margins than expected
               data, linked to volatility in volumes due to competitive pressures and market
               situations.
           risk of losses arising from the investment portfolio.
   2) Risks cannot be measured:
            risk arising from securitization means the risk that the economic substance 
               the risk that the economic substance of the securitization is not fully reflected
               in pricing decisions and risk management;
           the risk of incurring legal or administrative sanctions, financial loss or
               significant damage to reputation as a result of violations of mandatory rules
               (of law or regulations) or self (statutes, codes of conduct, Codes of Conduct);
           the risk of failure to fulfill its payment obligations that may be caused by
               inability to raise funds or to get them to cost more than the market (funding
               liquidity risk) or the presence of limits on realization of assets (market
               liquidity risk) incurring a capital loss;




                                                                                             57
           the risk of incurring losses resulting from a negative perception of the image of
              the bank by customers, counterparties, shareholders of the bank, investors,
              regulators and other stakeholders;
           risk of incurring losses resulting from unforeseen ineffectiveness of accepted
              techniques for mitigating the credit risk used by the company (eg
              mortgage);
           current or prospective risk of a decline in earnings or capital arising from
              changes in the business environment, inadequate implementation of
              decisions, lack of responsiveness to changes in the competitive
              environment.

Credit risk is the risk most important characteristic of the Bank on a historical basis it
absorbs about 90% of regulatory capital at risk. The continuation of the difficulties is the
production system in general and the consumption crisis - generated by the reduction in
household disposable income - has negatively affected the ability of businesses and
individuals to meet their commitments, leading to an increased risk credit, resulting in
increased credit flows and abnormal accruals.

With reference to the areas of stock broking and placement of financial instruments (funds,
policies, etc..), Developments in financial markets have led to major reductions in the
expectations of fee income (business risk).

Finally, with regard to liquidity risk, tensions have eased considerably in the financial
markets - especially in the latter part of 2009 - while still keeping the high cost of
institutional funding.

The marginal significance of risks other than those mentioned is not expected to be adjusted
during the year.


Uncertainties
The uncertainty can be defined as an event whose potential impact, due to one of the risk
categories identified above, is not determinable at the time, and then quantified.

The context in which the Bank is to operate is affected by the fragile recovery that
characterizes the advanced economies and in particular of the euro area. In particular it is
expected - to be part of international agencies - a slow recovery, with large uncertainties
associated with developments in world economy and the continuing deterioration of the
labor market.
The tensions in financial markets have weakened compared to last year, in the latest period,
however, increased volatility in the markets.

The uncertainties identified impacts might occur, mainly due to credit risk, interest rate,
and residual business. In particular, the main uncertainties identified for the financial year
2010 related to:
    evolution of the macroeconomic framework. Uncertainties remain about the
       development of the macro linked to the system's ability to initiate a phase of growth
       is not linked to the expansionary policies - both monetary and fiscal - in place to
       deal with the recession. It is also noted that the labor market is still in a state of
       weakness, even with negative impacts on the quality of assets of the banking system.
       A brake on development might also be generated by tightening the tax burden and
       measures to curb public spending in individual countries to fall by excessive
       government debt generated during the economic crisis;
    financial markets and the curve of interest rates. The level of sustained low interest
       rates has kept pressure on bank margins, which, in turn, would benefit from any
       increase thereof. In this sense, the uncertainties are related to the timing of return
       from maneuvers expansionary monetary policy used during the recession. Assume
       therefore

58
       particular emphasis on the dynamics of future inflation and, in this regard, the
       current information available does not indicate the presence of endogenous
       pressures in keeping with the high output gap, which characterizes the Italian
       economy and of the entire euro area. Are not possible, however, potential adverse
       effects resulting from a possible rise in commodity prices - with special reference to
       the sector of energy - amplified by any disorderly movements of the euro on foreign
       exchange markets. For the securities portfolio, a shock to the rate hike would have a
       negative impact, also increased the uncertainties related to the solvency of certain
       sovereign debt and possible further enlargement of the yield spread. Finally, the
       stable flow of ransom and the resumption of fund performance - combined with the
       stabilization of financial markets - may reduce the risk of exposure to business;
       performance of the property market. In reference to the assets taken as collateral for
       transactions and credit and leasing to customers, the combination of high prices
       recorded in the previous period with the potential decrease of the same in the future,
       could affect the caution inherent in the operations to be;
       changes in the regulatory environment. In general, the introduction of new laws or
       conventions / agreements at the system level, could change the economic pricing of
       some items, resulting in lower margins and commissions on financial services, at the
       time not yet quantifiable. In particular, we report the implementation of Directive
       2007/64/EC on payment services in the Internal Market (cd Payment Services
       Directive), where the rules - however - could be subject to future additions, following
       the enactment of the implementing instructions from the Bank of Italy. Finally, the
       proposals to amend the prudential regulation - out for consultation by the Basel
       Committee (known as Basel 3) - would require banks to management actions are not
       negligible. More specifically, the most significant impacts could result from the
       proposal to deduct from the calculation of core tier 1 capital of the third and deferred
       tax assets, together with the introduction of quantitative requirements designed to
       contain the liquidity risk.

                                            *****

The risks and uncertainties described above were the subject of an evaluation process also
aims to highlight the impact of parameter variations and market conditions on business
performance. The Bank is in fact equipped with instruments to measure potential impacts of
risks and uncertainties about its operations (particularly through sensitivity analysis and
stress tests), which allow, in time and continuity, adapting their strategies - in terms of
distribution model, organizational and management / rationalization of costs - compared to
the changes of context. The risks and uncertainties are also subject to continuous scrutiny by
the regulatory body of policy risk taken by the Bank's policies are updated in relation to
changes of strategy, context and expectations of the market. The monitoring periods of the
same aims at the verification of their implementation and their adequacy. The analysis carried
out indicate that the Bank is able to cope with the risks and uncertainties to which it is
exposed, thus confirming the conditions of its continuity.


Other events
The Bank has joined with its share (0.59%) at full voluntary takeover bid launched by
Banca Popolare dell Emilia Romagna Soc. coop on Meliorbanca SpA ordinary shares at a
price of 3.20 euro each. The accession to the OPA, which ended February 24, 2009, the
Bank has generated a revenue (as of March 3, 2009) of approximately 2.4 million euro, of
which 367,000 as a capital gain.


On September 17, 2009 UBI Bank announced the creation of a bancassurance joint venture
in damages. The operation has resulted in the sale by the Group

                                                                                            59
UBI, a 50% share of UBI Assicurazioni a new company, and with the signing of a long-term
distribution agreement with the Group's branches. The new partnership will allow, among
other things, to increase and diversify the current range in damage through the distribution
of products with high added value, further expanding the Group's commercial UBI Banca.
The sale of the stake held by the Bank in UBI Assicurazioni (equal to n. 9,645,000 shares),
which took place in December, led to the creation of a profit of about EUR 17 million, shown
as non-recurring.




60
Significant events after the balance sheet
It refers to what is stated in "Accounting Policies - Section 3 - Events after the balance sheet
date.


Business Outlook
Despite the signs of economic recovery, forecasting development of operations are still
subject to considerable uncertainty. The impacts of the crisis, it still appears with significant
and widespread negative effects on corporate profitability mainly due to the level of interest
rates historically low and the deterioration of credit quality. In this context, the Bank
approved in January, the budget for the year 2010 and is establishing guidelines for the
industrial plan 2010-2012.




                                                                                              61
Proposals to

Dear Shareholders,
We submit for your approval the budget for the year 2009 in all its components.


Also submit for your approval, the allocation of operating income as follows:



         PLAN OF ALLOCATION OF PROFITS


Net income for 2009                                                       12.148.418,68
Profit to be distributed:
- 5% to legal reserves                                                                -

- A fund available to the Board                                             430.000,00
- Dividend to shareholders                                                 3.034.120,78
- Extraordinary reserve                                                    8.684.297,90
0                                                                                     -




If the present proposals are approved by you, will be paid a dividend of 0.124 euro for each
n. 24,468,716 shares entitled to dividend for the year 2009.


Jesi, March 12, 2010


                                                             The Board of Directors




62
Financial Statements




                       63
BALANCE SHEET
(In euro)


                                                                                                        Change in          % Change
ASSETS                                                                  31/12/2009      31/12/2008
                                                                                                         Annual             Annual

10. Cash and cash equivalents                                              50.662.716      80.585.333     (29.922.617)          (37,13)
20. Financial assets held for trading                                      20.259.300      26.186.364       (5.927.064)         (22,63)
40. Financial assets available for sale                                    22.544.926      24.618.619       (2.073.693)           (8,42)
60. Due from banks                                                      1.392.357.089   1.556.710.743   (164.353.654)           (10,56)
70. Loans to customers                                                  7.332.080.441   7.744.033.411   (411.952.970)             (5,32)
80. Hedging derivatives                                                    33.703.612     149.359.655   (115.656.043)           (77,43)
90. Re-measurement adjustment on hedging financial activities              32.785.212      34.813.601       (2.028.389)           (5,83)
100. Investments in associates and companies subject to joint control      69.168.787      92.814.697     (23.645.910)          (25,48)
110. Property, plant and equipment                                        134.477.294     135.464.326         (987.032)           (0,73)
120. Intangible assets                                                     31.727.126      31.727.126                 -                -
      of which:
          goodwill                                                          31.727.126     31.727.126                -                 -
130. Tax assets:                                                           121.890.892    135.337.592     (13.446.700)            (9,94)
     a) current                                                             37.254.814     70.682.665     (33.427.851)          (47,29)
     b) prepaid                                                             84.636.078     64.654.927      19.981.151             30,90
150. Other assets                                                          135.436.018    116.869.321      18.566.697             15,89
Total assets                                                            9.377.093.413 10.128.520.789    (751.427.376)            (7,42)




                                                                                                        Change in          % Change
LIABILITIES AND EQUITY                                                  31/12/2009      31/12/2008
                                                                                                         Annual             Annual
10. Due to banks                                                            78.050.234    210.965.328    (132.915.094)          (63,00)
20. Due to customers                                                     4.619.410.940  4.240.924.979     378.485.961              8,92
30. Securities issued                                                    3.377.010.793  4.286.704.154    (909.693.361)          (21,22)
40. Financial liabilities held for trading                                  20.205.655     24.978.264        (4.772.609)        (19,11)
60. Hedging derivatives                                                     47.811.197     51.314.503        (3.503.306)          (6,83)
80. Tax liabilities:                                                        14.963.070     62.917.290      (47.954.220)         (76,22)
       a) current                                                           12.131.521     59.493.190      (47.361.669)         (79,61)
       b) deferred                                                           2.831.549      3.424.100          (592.551)        (17,31)
100. Other liabilities                                                     287.508.617    295.058.495        (7.549.878)          (2,56)
110. Employee termination indemnities                                       34.476.988     36.615.724        (2.138.736)          (5,84)
120. Provisions for risks and charges:                                      18.169.131     19.121.250          (952.119)          (4,98)
      b) other provisions                                                   18.169.131     19.121.250          (952.119)          (4,98)
130. Valuation reserves                                                     24.892.082     21.218.313         3.673.769           17,31
160. Reserves                                                              236.548.229    135.409.922     101.138.307             74,69
170. Share premium reserves                                                483.554.478    483.554.478                  -               -
180. Share capital                                                         122.343.580    122.343.580                  -               -
200. Income for the period                                                  12.148.419    137.394.510    (125.246.091)          (91,16)
Total liabilities and equity                                            9.377.093.413 10.128.520.789    (751.427.376)            (7,42)




64
Income statement
(In euro)


                                                                                                                      Change in       % Change
                                                                                   31/12/2009       31/12/2008
                                                                                                                       Annual         Annual

10. Interest income and similar income                                              385.454.531      583.374.457     (197.919.926)        (33,93)
20. Interest expense and similar expense                                           (136.680.634)    (251.217.184)     114.536.550         (45,59)
30. Interest margin                                                                 248.773.897      332.157.273      (83.383.376)        (25,10)
40. Fee and commission income                                                       104.460.192      111.402.493        (6.942.301)        (6,23)
50. Fee and commission expense                                                        (7.052.306)      (8.090.104)       1.037.798        (12,83)
60. Net fee and commission income                                                    97.407.886      103.312.389       (5.904.503)         (5,72)
70. Dividends and similar income                                                     16.437.059       10.981.559         5.455.500         49,68
80. Profits (losses) on trading activities                                               910.105        2.822.660       (1.912.555)       (67,76)
90. Fair value adjustments in hedge accounting                                        (1.015.583)       1.044.102       (2.059.685)      (197,27)
100. Profit/loss from disposal or repurchase of:                                       (608.637)          560.837       (1.169.474)      (208,52)
     a) loans                                                                                   -       (604.232)          604.232               -
     b) financial assets available for sale                                              366.912          169.625          197.287        116,31
     d) financial liabilities                                                          (975.549)          995.443       (1.970.992)      (198,00)
120. Net interest and other banking income                                          361.904.727      450.878.819      (88.974.092)        (19,73)
130. Net impairment adjustments/ write-backs:                                      (116.069.405)     (93.179.228)     (22.890.177)         24,57
     a) loans                                                                      (115.745.345)     (94.104.066)     (21.641.279)         23,00
     b) financial assets available for sale                                            (249.356)                 -       (249.356)               -
     d) other financial activities                                                       (74.704)         924.838        (999.542)       (108,08)
140. Net income from banking activities                                             245.835.322      357.699.591     (111.864.269)        (31,27)
150. Administrative expenses                                                       (243.295.971)    (261.120.568)      17.824.597          (6,83)
     a) personnel expenses                                                         (129.839.503)    (140.786.546)      10.947.043          (7,78)
     b) other administrative expenses                                              (113.456.468)    (120.334.022)        6.877.554         (5,72)
160. Net provisions for risks and charges                                             (3.320.442)      (2.906.871)       (413.571)         14,23
170. Net adjustments to/recoveries on property, plant and equipment                 (10.758.468)     (10.768.298)            9.830         (0,09)
190. Other operating expenses/income                                                 15.449.333       22.676.124        (7.226.791)       (31,87)
200. Operating expenses                                                            (241.925.548)    (252.119.614)      10.194.066          (4,04)
210. Profit (losses) on investments in associates and companies subject to joint     17.044.145       73.577.088      (56.532.943)        (76,83)
240. Gains (losses) on disposal of investments                                            32.785          (21.896)          54.681       (249,73)
250. Operating profit (loss) from ordinary activities before taxes                   20.986.704      179.135.169     (158.148.465)        (88,28)
260. Income taxes for the year                                                        (8.838.285)    (41.740.660)      32.902.375         (78,83)
270. Profit (Loss) for the year                                                      12.148.419      137.394.510     (125.246.091)        (91,16)
290. Net profit (loss) for the period                                                12.148.419      137.394.510     (125.246.091)        (91,16)




                                                                                                                                             65
OVERVIEW OF THE OVERALL PROFITABILITY
(In euro)




                                            Items                   31/12/2009      31/12/2008


10. Income (loss) for the period                                      12.148.419     137.394.510
     Other comprehensive income to net of tax

20. Financial assets available for sale                                  (29.106)        (576.404)

60. Cash flow hedges                                                    3.478.407      (3.964.222)

90. Actuarial gains (losses) on defined benefit plans                    224.468         (738.981)

110. Total other income items after tax                                3.673.769      (5.279.607)
120 Comprehensive income (item 10110)                                 15.822.188     132.114.903




Following the amendments to IAS 1 and IAS 34 by the Commission Regulation (EC) No
1274/2008 issued December 18, 2008 in the Official Journal of the European Union, is
published the "Statement of Comprehensive Income" which highlights the aggregate
"Comprehensive income" as the sum of the result for the period (net income / loss) and the
cost components and of income that are not recognized in the income statement, but in
equity, as a result of a specific provision of IAS / IFRS.
In essence this new prospect joins the income statement in order to provide enhanced
disclosure of the overall company profitability through the identification of a pool that,
unlike the profit / loss of the year, expressed in more broadly, the wealth generated / input
from business operations also include those components of cost and revenue, for the period,
which are accounted for in equity and therefore gave rise to changes in valuation reserves.




66
Statement of changes in equity
AS OF DECEMBER 31, 2009
(In euro)


                                                                                             Allocation of profit                                     Changes during the period
                                                                                 from previous period                                                   Shareholders’ equity
                                                                                                                                                           transactions
                                                  Change in
                                                                                                                                                                                                                                  Shareholders'
                                                   opening
                                 Balance at                     Balance at                                                                                                                                          Total          equity as of
                                                   balances                                                         Changes in
                               31/12/2008                     01/01/2009                                                                                                           Derivative                                    31/12/2009
                                                                                                    dividends and                         Purchase  Payment of Change in              s on                          profit
                                                                                                            other   reserves        Issue                                                          Stock
                                                                                                                                             of                                                                 for the period
                                                                                                                                   of new treasury extraordinary
                                                                                  reserves                                                                         equity          treasury                          (2009)
                                                                                                            uses                   shares                                                         options
                                                                                                                                                                 instrument
                                                                                                                                           shares    dividends        s             shares


Share capital:                  122.343.580                    122.343.580                      -                                       -         -                                                                               122.343.580

    a) Ordinary shares           122.343.580                    122.343.580                                                                                                                                                        122.343.580

    b) other shares                           -                              -                                                                                                                                                                -

Share premium reserve           483.554.478                    483.554.478                                                                                                                                                        483.554.478

Reserves:                       135.409.922               -    135.409.922       101.138.307                                   -        -         -              -                            -             -                     236.548.229

    a) profits                   135.643.959              -     135.643.959       101.138.307                                                                    -                                                                 236.782.266

    b) other                       (234.037)              -        (234.037)                    -                                                                -                                                                    (234.037)

Valuation reserves               21.218.313                     21.218.313                                                                                                                                         3.673.769        24.892.082

Equity instruments                            -                              -                                                                                                                                                                -

Treasury shares                               -                              -                                                                                                                                                                -

Income (loss) for the period    137.394.510               -    137.394.510 (101.138.307)             (36.256.203)                                                                                                 12.148.419        12.148.419

Shareholders’ equity            899.920.803                    899.920.803                      -    (36.256.203)              -        -         -              -             -              -             -     15.822.188      879.486.788




The statement of changes in equity used for the purpose of preparing this budget incorporates the changes resulting from introduction of
Regulation (EC) No 1274/2008, in particular, is engaged - to replace income for the period - the column
"Comprehensive income" - and the aggregate level of disclosure in line "Revaluation reserves" in the more detailed "statement of comprehensive
income."



                                                                                                                                                                                                                                                  67
Statement of changes in equity
AS OF DECEMBER 31, 2008
(In euro)


                                                                                                Allocation of profit                                         Changes during the period

                                                                                     from previous period                                                         Shareholders’ equity
                                                                                                                                                                         transactions
                                                  Change in                                                                                                                                                                                      Shareholders’
                                 Balance at                         Balance at                                                                                                                                                    Total                 equity
                               31/12/2007                         01/01/2008                                           Changes in                                                                                                              to 31/12/2008
                                                  opening                                                                                  Purchase                                             Derivatives
                                                                                                      dividends and                           of           Payment of          Change in            on                             profit
                                                  balances                                                    other       reserve    Issue                                                                      Stock
                                                                                                                                                                                                                              for the period
                                                                                     reserves                                       of new treasury       extraordinary                          treasury                          (2008)
                                                                                                               uses                 shares                                       Equity                         options
                                                                                                                                             shares        dividends          instruments         shares


Share capital:                  122.343.580          X             122.343.580                   -                                       -            -                                                                                           122.343.580

     a) Ordinary shares          122.343.580                        122.343.580                                                                                                                                                                   122.343.580

     b) other shares                          -                                  -                                                                                                                                                                           -

Share premium reserve           483.554.478                        483.554.478                                                                                                                                                                    483.554.478

Reserves:                       131.828.093                   -    131.828.093         3.581.829                                -        -            -                   -                                 -             -                       135.409.922

     a) profits                  132.062.130                  -     132.062.130         3.581.829                                                                         -                                                                       135.643.959

     b) other                       (234.037)                 -        (234.037)                 -                                                                        -                                                                          (234.037)

Valuation reserves                26.497.921                         26.497.921                                                                                                                                                  (5.279.608)       21.218.313

Equity instruments                            -                                  -                                                                                                                                                                           -

Treasury shares                               -                                  -                                                                                                                                                                           -

Income (loss) for the period      53.519.260                  -      53.519.260       (3.581.829)       (49.937.432)                                                                                                           137.394.511        137.394.510

Shareholders’ equity            817.743.332                        817.743.332                   -      (49.937.432)            -        -            -                   -                 -               -             -    132.114.903        899.920.803




The statement of changes in equity used for the purpose of preparing this budget incorporates the changes resulting from introduction of
Regulation (EC) No 1274/2008, in particular, is engaged - to replace income for the period - the column
"Comprehensive income" - and the aggregate level of disclosure in line "Revaluation reserves" in the more detailed "Statement of
Comprehensive income.




68
CASH FLOW STATEMENT
(In euro)


                                             INDIRECT METHOD                        31/12/2009         31/12/2008

A. OPERATING ACTIVITIES
1. Management                                                                        181.851.081         139.194.974
- profit (loss) for the period (+/-)                                                   12.148.419         137.394.510
- gains/losses on financial assets held for trading and
valued at fair value)                                                                  31.906.264        (144.544.633)
- caital gains/losses on hedging activities (-/+)                                       1.015.583            (1.044.102)
- net impairment adjustments (+/-)                                                    128.006.074          100.199.228
- net adjustments to property, plant and equipment and )                               10.758.468           10.768.298
- Net provisions for risks and charges and other costs / income (-)                   (10.822.013)           (5.318.987)
- taxes and duties not paid (+)                                                         8.838.285           41.740.660
- Adjustments / write-backs from discontinued operations, net of tax (-)                                               -
- other adjustments (+/-)                                                                                              -
2. Cash flow generated/absorbed by financial assets                                  419.370.307      (1.224.926.182)
- financial assets held for trading                                                   (25.979.201)         138.023.116
- financial assets designated at fair value through profit and loss                                                    -
 - financial assets available for sale                                                  1.844.895          (15.483.404)
- due from banks: repayable on demand                                                 164.353.654      (1.006.043.526)
- due from banks: other                                                                                                -
- loans to customers                                                                  284.270.956        (321.199.326)
- other assets'                                                                         (5.119.996)        (20.223.042)
3. Cash flow generated/absorbed by financial liabilities                            (624.569.136)      1.069.868.289
- Due to banks having                                                                (132.915.094)       (162.211.691)
- Due to banks other payables                                                                                          -
- Due to customers                                                                   378.485.961         (193.557.705)
- securities issued                                                                 (913.631.275)       1.502.744.050
- Financial liabilities - trading                                                      (4.772.609)         (12.312.704)
- Pass.finanz.valutate at FV                                                                                           -
- other liabilities                                                                    48.263.881          (64.793.661)
Net cash flow generated/absorbed by operating activities                             (23.347.748)         (15.862.919)
B. INVESTMENT ACTIVITIES
1. Cash flow generated by                                                             40.124.372           88.258.083
- sale of investments in associates and companies subject to joint control             18.851.454           77.114.526
- dividends from investments in associates and companies subject to joint control      21.231.515           10.981.559
- Sales of assets held to maturity                                                                                   -
- Sales of assets                                                                          41.403              161.998
- Sales of intangibles                                                                                               -
- sale of business lines                                                                                             -
2. Cash flow utilized by:                                                            (10.443.039)        (28.323.256)
- purchase of investments in associates and companies subject to joint control                            (16.874.866)
- Purchases of assets held to maturity                                                                               -
- Purchases of assets                                                                 (10.443.039)        (11.448.390)
- Purchase of intangibles                                                                                            -
- purchase of business lines                                                                                         -
Net cash used in investing activities                                                 29.681.333           59.934.827
C. FUNDING ACTIVITIES
- issue/purchase of treasury shares                                                                                  -
- issue/purchase of equity instruments                                                                               -
- dividend distribution and other                                                     (36.256.203)        (49.937.432)
Net cash flow generated/absorbed by funding activities                               (36.256.203)        (49.937.432)
NET CASH FLOW GENERATED/ABSORBED DURING THE PERIOD                                   (29.922.617)          (5.865.524)



Legend: (+) generated (-) utilized



Reconciliation of financial statements

                                                 BALANCE SHEET ITEMS                31/12/2009         31/12/2008


Cash and cash equivalents at beginning of year                                        80.585.333           86.450.858
Net liquidity generated / used during the year                                        (29.922.617)         (5.865.524)
Cash and cash equivalents: foreign exchange effect                                                                  -
Cash and Cash equivalents at the end of the year                                      50.662.716           80.585.333




                                                                                                                     69
     The Notes




70
The Notes
The notes are divided into the following parts:

      1)     PART A - ACCOUNTING POLICIES
      2)     Part B – Notes to the Balance sheet
      3)     Part C – Notes to the Income statement
      4)     PART D - TOTAL EARNINGS
      5)     Part E - Information on risks and hedging policies
      6)     Part F – Information on consolidated equity
      7)     Part G - Business Combinations or business branches of business
      8)     Part H - Transactions with related parties
      9)     Part I - Share-based payments Equity-
      10)    Part L - Segment reporting




PART A - ACCOUNTING POLICIES
A.1 - General Part

Section 1 Statement of Compliance with International Accounting Standards
These financial statements have been prepared in accordance with international accounting
standards issued by the International Accounting Standards Board (IASB) and endorsed the
date of preparation thereof and the related interpretations of International Financial
Reporting Interpretations Committee (IFRIC) 30.
The budget shall consist of a balance sheet, income statement, statement of comprehensive
income, statement of changes in equity, cash flow statement and notes.

The financial statements are audited by KPMG
SpA, in accordance with art. 155, D. Decree of 24 February 1998 58 and in execution of the
resolution of April 11, 2007, which assigned the task to the preparation of financial
statements for the year 2010.

The balance sheet at 31 December 2009 was drawn up clearly and give a true and fair view
of the balance sheet, financial condition, results of operations of the period, the change in
equity and cash flows.


Section 2 Basis of preparation
These financial statements are prepared in accordance with the general principles of IAS 1
"Presentation of Financial Statements" and therefore gives all the information in light of
business continuity and to impute costs and revenues under the accrual thereof, without
offsetting assets and liabilities, income and expenses.
In preparing this annual report has also noted the Bank of Italy document / Consob / Isvap
No 4th of March 3, 2010 that, following the previous joint paper issued by the same
authorities No 2 of 6 February 2009, recommended that financial reports are adequate to
represent in a clear, complete and timely risks and uncertainties which the company is
exposed, the assets at its disposal to deal with and its actual ability to generate income. The
document, like the previous one,

30 See in this regard, the "List of IAS / IFRS endorsed by the European Commission, published in Part

A.1 of the Notes to the financial statements. The principles listed therein, and related interpretations are applied
depending on the occurrence of these events by discipline and year will be applicable.

                                                                                                                       71
is non-self-perception because it introduces additional disclosure requirements beyond
those already provided by international accounting standards, recommending the timely and
complete application. However identifies the following information areas in which companies
must provide a higher degree of transparency:
   1. evaluation (impairment test IAS 36) of goodwill, other intangible assets with indefinite
       useful lives and investments;
   2. valuation of equity securities classified as available for sale financial assets (IAS 39);
   3. Classification of financial liabilities when they are not respected the contractual
       clauses pertaining to the loss of the benefit of the term.

The word document also provides details regarding the accounting treatment to be taken in
situations of debt restructuring in exchange for shares. Finally, it invokes the importance of
proper definition, and related disclosure, the three levels of fair value ("fair value hierarchy")
introduced by IFRS 7.

In this annual report the contents of the document cited above are applicable to the
following themes:
     1. Impairment test of goodwill. It is particularly requested that, especially in the
        absence of appropriate business plans, it is essential to proceed to a formal approval
        and informed, independent and earlier than at the time of approval of financial
        reports and on the part of board, the procedure provided for by the impairment test
        IAS 36. The process of impairment testing, as well as the information requirements
        required by IAS 36, are the subject of disclosure in section 13 "Intangible Assets" of
        Notes to which it refers. In the same section are also published reports of such
        impairment tests performed on other assets with indefinite useful lives.
     2. Assessment equity securities classified as "Financial assets available for sale." The
        policy assessment in which the Group has adopted is set out in Part A.2 "The Main
        balance sheet items" in paragraph 2, "Financial assets available for sale.
     3. Fair value hierarchy. The disclosures required by IFRS 7 is provided with details of
        qualitative and quantitative information in the Notes to Part A.3 "Information on Fair
        value" as required by the Bank of Italy Circular 262/2005 updated
        November 2009.
Finally, with specific reference to information on business continuity, risks and
uncertainties that the Bank is exposed, please refer to the considerations made in the
Report on Operations under "Principal risks and uncertainties faced by the Bank."

The information in this document, unless otherwise specified, are expressed in euro as their
currency and financial situations, equity, economic, notes / remarks and explanatory tables
are in thousands of euro. Its rounds were carried out taking into account the provisions set
by Bank of Italy. Entries that do not report values for the current period and previous year
are omitted.

The financial statements used in this budget are consistent with those defined by the Bank
of Italy Circular No 262/2005 as amended by the First Update of November 18, 2009; they
provide, as well as the amount at 31 December 2009, the same comparative information at
31 December 2008.

On November 18 the Bank of Italy issued the 1st update of Circular 262/05 "The budget
transfer: patterns and rules for compilation; such action consists of a complete revision of
this Circular governing the preparation of the bank.
This evolution law, which shall have effect as from the already preparing the financial
statements as at December 31, 2009, has set itself the objective of:
     incorporate changes in the Circular in the meantime the international accounting
        standards (see but not limited to IAS 1 and
        "Statement of Comprehensive Income", IAS 39 as amended in 2008 following the
        financial crisis to permit some reclassifications between assets

72
          funding, the new version of IFRS 7, which introduced the provision of new
          information on the so-called "fair value hierarchy");
          make some rationalization of the tables in the notes to the financial statements, in
          light of application experience gained so far and more to bring the financial
          statements to those of banking supervision of IAS / IFRS standards harmonized at
          European level (FINREP);
          incorporate some clarifications and explanations already provided to the system with
          previous administrative messages 31.
Following the enactment of the 1st update certain reclassifications were necessary, for the
UBI, however, have merely focused on details of the notes, because it is inside the same
heading

Management Report A review of the main changes in the balance sheet / financial during
the period under review.


ACCOUNTING

The accounting policies set out in Part A.2, with respect to the classification, measurement
and derecognition, are essentially the same used for the preparation of financial statements
for all of 2008.

The accounting policies used are basically directed to the application of cost except for the
following financial assets and liabilities whose value was determined by applying the fair
value: financial instruments held for trading (including derivatives) and financial
instruments available for sale .

For completeness we note that non-current assets held for sale (and liabilities associated
with them) are stated at the lower of carrying amount and fair value (net of selling costs).


Events after the balance sheet date
There has been no material events subsequent to the balance sheet date.


Section 4: Other issues
Use of estimates and assumptions in preparing financial statements
The balance-sheet aggregates are evaluated according to the principles in Part A.2 declined
"The Main balance sheet items" of accounting policies.
The application of these principles, in the inability to accurately assess some elements of
the budget, sometimes involves the adoption of estimates and assumptions that can also
impact significantly on the values of the balance sheet and income statement.
Reaffirming that the use of reasonable estimates is an essential part of preparing the
budget, indicate below the budget items where the most significant use of estimates and
assumptions:
     credit rating;
     valuation of financial assets not quoted in active markets;
     evaluation of intangible assets and investments;
    quantification of the provisions for risks and charges;
       quantification of deferred tax assets;

31   The reference is to the following administrative messages. 222 359 of 22 February 2008 concerning the financial
     reporting of leases in the building, No 1354714 of 22 December 2008 on the rescheduling of loans and No
     1379882 31 December 2008 (released to the banks through the so-called
     "Roneata" of January 2009) on certain amendments and clarifications of the Circ. BI 262/05.

                                                                                                                 73
       definition of the depreciation of tangible and intangible assets with finite useful lives.

In this regard, it also shows, as the correction of an estimate may be a result of changes in
circumstances over which it was based or as a result of new information, or even more
experience. The possible change of the estimate is applied prospectively, and thereby impact
on the income statement of the year in which change occurs and, if applicable, on future
periods.

This exercise is characterized by a significant change in estimate criteria were applied to the
financial statements at December 31, 2008.


Collective impairment losses on performing loans
As stated in the context of the balance sheet at 31 December 2008, in the year 2009 actions
continued alignment of management and monitoring of credit from the banks of the Group
network.
Value adjustments on performing loans are estimated by the adoption of the evaluation
methodology based on the Basel 2 regulations.
In particular, the PD (probability of default) and LGD (loss given default) are determined on
the basis of aggregate time series calculated on the total network banks. While this method
provides an accurate representation of the overall credit risk inherent in the loan portfolio,
from other yet not adequately reflect the specific characteristics of individual network
banks. In fact, in the context of the current UBI the cost of credit quality and default rates
are not yet uniform mainly because of differences in practices and processes for managing
and monitoring the credit. Therefore, in order to better represent the specific characteristics
of individual banks in line with the actual portfolio risk, a methodology is adopted for the
allocation of total adjustments, based on different individual represented by the series of
losses and decay rates.
During 2010 the action will continue the alignment of management and monitoring of credit
from the banks of the Group network.


Commission for making available funds (former Commission overdraft)
As indicated in the Interim Report to 30 September 2009, to make time from 1 July 2009
the UBI, following the introduction of a new commission regime, introduced the Commission
made funds (CDF). The commission has comprehensive nature and replace, in addition to
the fees charged to current accounts and credit lines assigned to it, the "overdraft."
Therefore, the CDF committee has a nature and logic of determination other than that
which characterized the overdraft charges, then the same is recognized in the income
statement under "Commission income" and not "Interest and similar income" that upheld
the overdraft charges.

With respect to the reference period, the income statement was interested in heading
"Interest and similar income" for the detection of the Commission to Massimo
Discovered a total of euro 14.6 million, and under "Commission income" for the recognition
of income attributable to the Commission for making available funds with regard to the
second half of 2009, totaling EUR 10.8 million.

Depending on the different nature and different modes of determination, which characterize
the overdraft charges with respect to the Commission for making available funds, the
amounts relating to prior periods, shown for comparative purposes, the income statement in
the former Bank of Italy Circular 262/05, were not reclassified and therefore as due to
overdraft charges, equal to 31 December 2008 to EUR 29.9 million, is integral place in the
"Interest and similar income".


74
The amendments to IAS 39
On 12 November the International Accounting Standards Board (IASB) has approved the
final version of IFRS 9 "Financial Instruments", the new standard intended to replace the
requirement for the classification and measurement of financial assets, the estimates of IAS
39 "Financial instruments: measurement and classification", bringing out the first phase of
the overhaul of the aforementioned accounting standard.
However, the IFRS 9 has not been approved by the European Commission and is therefore
not currently applicable to the budgets of European companies. The process of approval,
called "endorsement, was postponed indefinitely with the consequence of any significant
shift of the probable date for the implementation of the new principle and a possible
modification of the contents are now known.

The ninth version of IFRS adopted by the IASB does not provide substantial new compared
to what is already detailed in the information provided in the Interim Report as at 30
September 2009, which refers to a full reading.

To confirm what we already anticipated as a hypothesis in the previous information, the
following is noted:
     the initial classification of financial assets must be done according to the so-called
        "business model" adopted by enterprises that the objective characteristics of
        financial instruments, without providing a hierarchy between the two drivers;
     with regard to the optional category FV-OCI, a category likely to receive equity
        instruments other than held for trading and those which constitute qualified
        investments, which is associated with the fair value of financial assets with
        attribution of changes in value equity in the "Statement of Comprehensive Income",
        it is stated that the components related to the dividends are subject to inclusion in
        the income statement, unlike the other components of the evaluation /
        implementation for which it is expected their detection even in the income statement
        under discontinued operations the financial instrument, such components will last
        forever charged to equity.

Post the situation described above, the UBI remains actively engaged in the participation of
working groups established in the ABI, in conjunction with the major Italian banking
groups, in order to monitor the process of approval of IFRS 9 and deepen the content
introduced by other Recent documents which represent the revision of other issues
currently dealt with under IAS 39 (so-called second phase of the project)
In this regard, we note that on November 5 last, the IASB published for the usual consultation,
which ends June 30, 2010, the Exposure Draft Financial Instruments; Amortised Cost and
Impairment ". This document provides a review of methods for determining impairment of all
financial assets at amortized cost (see, in particular, loans for the banking sector). The most
significant change that lies ahead is the change of mode determinaizone of expected cash flows
from assets subject to assessment: the purpose of this change lies in an attempt to avoid the
application of a model pro cycling, which is currently in use
(Cd incurred loss), which determines the inclusion of losses only in the event of the
occurrence of the event of loss. The proposed new model, called expected loss, expected loss
provides for the detection along the entire contract period of activity. In the initial stage,
these expected losses are taken into account in determining the effective interest rate of
activity, in subsequent stages of evaluation, any change in expected cash flows (than at the
time of registration of assets) results in a loss of value to the income statement. In this way,
a change in expected future cash flows results in a loss of value in the present, without it
being necessary to wait for the occurrence of the event.
As a result of the above, the UBI is considering the scope of possible future developments in
an attempt to identify early changes that will be necessary in terms of procedures and
processes and to determine an estimate of the impacts resulting from implementation of the
new methodology described.

                                                                                             75
List of IAS / IFRS endorsed by the European Commission
Given that listed under international accounting standards were adopted by a number of
amending regulations in order to simplify the legislation on accounting standards and to
improve clarity and transparency, the European Commission adopted on 3 November 2008
Regulation (EC) No 1126/2008 32 which replaces all previous Regulations 33 and combines
them into one text the principles described in those regulations.

   IAS / IFRS                                    ACCOUNTING                                                  APPROVAL

                                                                                                         Reg 1274/2008, Reg
 IAS 1            Presentation of the Financial Statement                                                53/2009, Reg 70/2009,
                                                                                                         Reg 494/2009
 IAS 2            Stocks                                                                                 Reg 1126/2008
                                                                                                         Reg 1126/2008, Reg
 IAS 7            Statement of Cash Flows                                                                1274/2008, Reg 70/2009,
                                                                                                         Reg 494/2009
                                                                                                         Reg 1126/2008, Reg
 IAS 8            Accounting Policies, Changes in Accounting Estimates and Errors
                                                                                                         1274/2008, Reg 70/2009
                                                                                                         Reg 1126/2008, Reg
 IAS 10           Events after the balance sheet date                                                    1274/2008, Reg 70/2009,
                                                                                                         Reg 1142/2009
                                                                                                         Reg 1126/2008, Reg
 IAS 11           Construction Contracts
                                                                                                         1274/2008
                                                                                                         Reg 1126/2008, Reg
 IAS 12           Income Taxes
                                                                                                         1274/2008, Reg 495/2009
                                                                                                         Reg 1126/2008, Reg
 IAS 16           Property, plant and equipment                                                          1274/2008, Reg 70/2009,
                                                                                                         Reg 495/2009
 IAS 17           Leasing                                                                                Reg 1126/2008
                                                                                                         Reg 1126/2008, Reg
 IAS 18           Revenues
                                                                                                         69/2009
                                                                                                         Reg 1126/2008, Reg
 IAS 19           Employee Benefits
                                                                                                         1274/2008, Reg 70/2009
                  Accounting for Government Grants and Disclosure of Public                              Reg 1126/2008, Reg
 IAS 20
                  Public                                                                                 1274/2008, Reg 70/2009
                                                                                                         Reg 1126/2008, Reg
 IAS 21           The Effects of Changes in Foreign Exchange Rates                                       1274/2008, Reg 69/2009,
                                                                                                         Reg 494/2009
                                                                                                         Reg 1260/2008, Reg.
 IAS 23           Borrowing Costs
                                                                                                         70/2009
                                                                                                         Reg 1126/2008, Reg
 IAS 24           Disclosures on related party transactions
                                                                                                         1274/2008
 IAS 26           Pension funds                                                                          Reg 1126/2008
 IAS 27           Consolidated and Separate                                                              Reg 494/2009
                                                                                                         Reg 1126/2008, Reg
                                                                                                         1274/2008, Reg 70/2009,
 IAS 28           Investments in associates
                                                                                                         Reg 494/2009, Reg
                                                                                                         495/2009
                                                                                                         Reg 1126/2008, Reg
 IAS 29           Financial reporting in hyperinflationary economies
                                                                                                         1274/2008, Reg 70/2009
                                                                                                         Reg 1126/2008, Reg
 IAS 31           Interests in Joint Ventures
                                                                                                         70/2009, Reg 494/2009


32 Entry into force by publication in the Official Journal of the European Union No   320, November 29
2008.
33 Ref. Regulation (EC) No   1725/2003 and subsequent amending acts.
76
                                                                                Reg 1126/2008, Reg
                                                                                1274/2008, Reg 53/2009,
IAS 32    Financial instruments: disclosure
                                                                                Reg 70/2009, Reg
                                                                                495/2009, Reg 1293/2009
                                                                                Reg 1126/2008, Reg
IAS 33    Earnings per share
                                                                                1274/2008, Reg 495/2009
                                                                                Reg 1126/2008, Reg
IAS 34    Interim reports                                                       1274/2008, Reg 70/2009,
                                                                                Reg 495/2009
                                                                                Reg 1126/2008, Reg
                                                                                1274/2008, Reg 69/2009,
IAS 36    Impairment of assets
                                                                                Reg 70/2009, Reg
                                                                                495/2009
                                                                                Reg 1126/2008, Reg
IAS 37    Provisions, Contingent Liabilities and Contingent Assets
                                                                                1274/2008, Reg 495/2009
                                                                                Reg 1126/2008, Reg
IAS 38    Intangible assets                                                     1274/2008, Reg 70/2009,
                                                                                Reg 495/2009
                                                                                Reg 1126/2008, Reg
                                                                                1274/2008, Reg 53/2009,
                                                                                Reg 70/2009, Reg
IAS 39    Financial Instruments: Recognition and Measurement
                                                                                494/2009, Reg 495/2009,
                                                                                Reg 824/2009, Reg
                                                                                839/2009, Reg 1171/2009
                                                                                Reg 1126/2008, Reg
IAS 40    Investment Property
                                                                                1274/2008, Reg 70/2009
                                                                                Reg 1126/2008, Reg
IAS 41    Agriculture
                                                                                1274/2008, Reg 70/2009
                                                                                Reg 1136/2009, Reg.
IFRS 1    First-time Adoption of International Accounting Standards
                                                                                1164/2009
                                                                                Reg 1126/2008, Reg
IFRS 2    Share-based payments
                                                                                1261/2008, Reg. 495/2009
IFRS 3    Business Combinations                                                 Reg 495/2009
                                                                                Reg 1126/2008, Reg
IFRS 4    Insurance Contracts                                                   1274/2008, Reg
                                                                                1165/2009
                                                                                Reg 1126/2008, Reg
          Non-current Assets Held for Sale and Discontinued Operations
          Discontinued                                                          1274/2008, Reg 70/2009,
IFRS 5
          Discontinued                                                          Reg 494/2009, Reg
                                                                                1142/2009
IFRS 6    Exploration for and Evaluation of Mineral Resources                   Reg 1126/2008
                                                                                Reg 1126/2008, Reg
                                                                                1274/2008, Reg 53/2009,
IFRS 7    Financial Instruments: Disclosures                                    Reg 70/2009, Reg
                                                                                495/2009, Reg 824/2009,
                                                                                Reg 1165/2009
                                                                                Reg 1126/2008, Reg
IFRS 8    Operating Segments
                                                                                1274/2008



SIC /
IFRIC                          PAPERS BY                                            APPROVAL

          Changes in liabilities for decommissioning, restoration and Similar
          Liabilities                                                           Reg 1126/2008, Reg
IFRIC 1
          Similar Liabilities                                                   1274/2008
                                                                                Reg 1126/2008, Reg
IFRIC 2   Members' Shares in Cooperative Entities and Similar Instruments
                                                                                53/2009
                                                                                Reg 1126/2008, Reg
IFRIC 4   Determining whether an arrangement contains a lease
                                                                                70/2009




                                                                                                      77
           Rights to Interests arising from Decommissioning, Restoration and
           environmental remediation
IFRIC 5                                                                           Reg 1126/2008
           environmental remediation
           Liabilities arising from Participating in a Specific Market - Waste
IFRIC 6                                                                           Reg 1126/2008
           electrical and electronic
           Applying the Restatement Approach under IAS 29                         Reg 1126/2008, Reg
IFRIC 7
           "Financial reporting in hyperinflationary economies"                   1274/2008

IFRIC 8    Scope of IFRS 2                                                        Reg 1126/2008

                                                                                  Reg 1126/2008, Reg
IFRIC 9    Reassessment of Embedded Derivatives
                                                                                  495/2009, Reg 1171/2009
                                                                                  Reg 1126/2008, Reg
IFRIC 10   Interim Financial Reporting and Impairment
                                                                                  1274/2008

IFRIC 11   IFRS 2 - Group and Treasury Share Transactions Group                   Reg 1126/2008

IFRIC 12   Service Concession Agreements                                          Reg 254/2009

IFRIC 13   Customer Loyalty Program                                               Reg 1262/2008

           IAS 19 - The Limit on assets of a benefit plan                         Reg 1263/2008, Reg.
IFRIC 14
           defined, Minimum Funding Requirements and their Interaction            1274/2008

IFRIC 15   Agreements for the construction of buildings                           Reg 636/2009

IFRIC 16   Hedges of a net investment in foreign operations                       Reg 460/2009

           Distributions to shareholders of activities Non-cash liquid
IFRIC 17                                                                          Reg 1142/2009
           liquid

IFRIC 18   Transfers of assets from customers                                     Reg 1164/2009

                                                                                  Reg 1126/2008, Reg
SIC 7      Introduction of the Euro
                                                                                  1274/2008, Reg 494/2009
                                                                                  Reg 1126/2008, Reg
SIC 10     Government Assistance - No Specific Relation to Operating Activities
                                                                                  1274/2008

SIC 12     Consolidation - Special Purpose Company (SPV)                          Reg 1126/2008

           Joint ventures - Contributions in kind by Venturers                    Reg 1126/2008, Reg
SIC 13
           Venturers                                                              1274/2008
                                                                                  Reg 1126/2008, Reg
SIC 15     Operating Leases - Incentives
                                                                                  1274/2008
           Income Taxes - Recovery of revalued non- depreciable
SIC 21                                                                            Reg 1126/2008
           depreciable
           Income Taxes - Changes in the tax status of a company or its
           shareholders                                                           Reg 1126/2008, Reg
SIC 25
           its shareholders                                                       1274/2008
           Evaluating the Substance of Transactions Involving the Legal Form of
           leasing
SIC 27                                                                            Reg 1126/2008
           leasing
                                                                                  Reg 1126/2008, Reg
SIC 29     Disclosure - service concession arrangements
                                                                                  1274/2008, Reg 70/2009

SIC 31     Revenue - barter transactions involving advertising services           Reg 1126/2008

                                                                                  Reg 1126/2008, Reg
SIC 32     Intangible Assets - Web Site Costs
                                                                                  1274/2008


For completeness, in addition to those already described in the interim reporting period, the
following is a brief description of the publication of new accounting standards or changed as
a result of the enactment, which occurred in the fourth quarter of certain EU regulations.




78
The Reg EC No 1136/2009 34 introduces a new version of IFRS 1 in order to simplify the
future is the first application by the companies and to eliminate certain transitional
provisions have been superseded.

The Reg EC No 1142/2009 35 introduces the interpretation IFRIC 17 "distributed to
members of non-cash" to provide clarification and guidance on the accounting treatment for
the distribution of such activities including, without limitation, tangible assets or ownership
interests in other entities.

The Reg EC No 1164/2009 36 introduces the interpretation IFRIC 18 "Transfers of Assets
by customers" whose goal is to provide clarification and guidance on the accounting for
sales of tangible items that companies receive from their customers and to be used to
connect the customer to a network or to ensure ongoing access to a supply of goods and
services. The principle provides guidelines to determine if they meet the definition of
elements and activities, if that definition is met, such activities should be assessed.

The Reg EC No 1165/2009 37, amend the provisions of IFRS 7 "Financial Instruments:
Disclosures" and the IFRS 4 "Insurance Contracts" introduces the need to provide more
detail information on the measurement of fair value and liquidity risk related to financial
instruments.
In particular, the Regulation in question introduces disclosure requirements relating to the
cd
"Hierarchy of fair value of financial instruments, whose purpose is to reflect the relevance of
the data used in carrying out assessments. The fair value hierarchy consists of the following
levels:
       • Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
       • Level 2 - data input other than quoted prices in Level 1 that are observable for the
           entity or liability, either directly (as in price) or indirectly (ie, derived from prices);
       • Level 3 - input data relating to assets or liabilities that are not based on observable
           market data (unobservable inputs).

The Reg EC No 1171/2009 38 makes changes to IFRIC 9 'Reassessment of embedded
derivatives "and IAS 39" Financial Instruments: Recognition and Measurement "in order to
clarify the treatment of financial derivative instruments embedded in other contracts as a
financial asset is reclassified hybrid out of the category of financial assets held for trading
with the impact of changes in value recognized in earnings. The new provisions require that,
if the reclassification application to the entity is not able to evaluate separately the
embedded derivative should be separated, the reclassification is not allowed and the hybrid
contract continues to be classified as "financial assets held for trading" .

The Reg EC No 1293/2009 39 which introduces an amendment to IAS 32 "Financial
Instruments: Presentation" in order to clarify how to account for certain rights when issued
instruments are denominated in a currency other than the functional currency of the
issuer. In essence, through an integration in par. 11 is now scheduled to be entitled to
acquire a specified number of equity instruments of entities in exchange for a specified
value, denominated in any currency, is an equity instrument if the entity has the right pro
rata to all shareholders of a same class of equity instruments. Previous forecasts have led to
classify as liabilities (derivative), and not as equity, that right is denominated in a currency
other than the functional classification because it did not reflect the ratio of 'fixed against
fixed "(because of exchange rate fluctuations) needed to the classification in the capital.

34 mandatory adoption by financial year 2010.
35   mandatory   adoption   by   financial year 2010.
36   mandatory   adoption   by   financial year 2010.
37   mandatory   adoption   by   year 2009.
38   mandatory   adoption   by   year 2009.
39 year mandatory adoption by 2011.

                                                                                                   79
The Main budget items

Here are, for the main budgetary aggregates, the criteria for recognition, classification,
assessment and cleanup.

Financial assets and liabilities held for trading
Financial assets and liabilities held for trading
An asset or a financial liability is classified as held for trading (cd Fair Value Through Profit
or Loss - FVPL), and registered in "20 Financial assets held for trading" or under "40
Financial liabilities held for trading", if it is:
     acquired or incurred principally for the purpose of selling or repurchasing in the short;
    part of a portfolio of identified financial instruments that are managed together and for
       which there is evidence of a recent actual pattern directed to obtaining a profit in the
       short term;
    a derivative (except for a derivative that is designated and effective hedging instrument -
       see specific next paragraph).

The Bank has listed the "Financial assets held for trading" where these debt securities held
for trading and PCT.

Financial derivatives
We define "derivative" of a financial instrument or other contract with the following features:
    its value changes in relation to changes in interest rate, the price of a financial
       instrument, the price of a commodity, foreign currency exchange rate, index of prices
       or rates, credit or credit index or other variable;
    does not require an initial net investment or requires an initial net investment smaller
       than would be required for other types of contracts that one would expect a similar
       response to changes in market factors;
       is set at a future date.

The Bank holds derivative financial instruments for trading or for hedging purposes (see
them at the next special section). All trading derivatives are recognized in the industry to an
initial value equal to fair value which generally coincides with the cost. Subsequently, the
derivative contracts are valued at fair value, equal to the value that the Bank would pay
cash or in cases to terminate at the time of evaluation, the derivative contract. Each
variation found in the fair value is charged to the income statement under "Net income of 80
trading activity."
The fair value of derivatives is determined by the application of the methods described in the
section "assessment criteria".

Embedded derivative financial instruments
An "embedded derivative" 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 way similar to the derivative of its own. The embedded derivative is
separated from the host contract and accounted for as a stand-alone derivative if and only
if:
     the economic characteristics and risks of the embedded derivative are not closely
        related 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) is not shown as assets or financial liabilities held for trading.


80
The fair value of derivatives is determined according to a separate component of the
methodologies described in the section "assessment criteria".

Criteria for inclusion
Financial instruments "financial assets and liabilities held for trading are recognized at the
time of regulation, whether debt or equity, or the date of execution, if the derivative
contracts, at a value equal to the cost defined as the fair value of the instrument, regardless
of any costs or income directly attributable to the instruments themselves.

Evaluation criteria
Subsequent to initial recognition, financial instruments in question are valued at fair value
and the variations observed in the income statement under "Net income of 80 trading
activity." The fair value of assets or liabilities of a trading book is based on prices in active
markets or internal valuation models generally used in financial and described below.

Methods of determining the fair value
securities: listed and unlisted
In the case of securities listed on active markets, the determination of fair value is based on
prices quoted by market (ie the one that are experiencing the greatest volume of trading)
may be drawn from international providers and found the last day of reference of the
exercise or period. A market is defined as active if the prices reflect normal market
operations, are readily and regularly available and express the price of actual and regularly
occurring market.
In the case of unlisted securities, fair value is determined using valuation techniques aimed
at determining the price that the instrument would have on the valuation date in a free
exchange motivated by normal business considerations. The fair value is obtained through
the application of methodologies with broad international markets and internal valuation. In
particular, unlisted bonds apply models of discounting expected future cash flows - using
structures of interest rates that appropriately take into account the sector's activities and
membership of the issuer's credit rating, if available - and models price of the options. For
equity prices are used can be derived from comparable transactions, market multiples of
comparable companies directly, as well as model type evaluation sheet, income and mixed.

Derivatives: listed and unlisted
In the case of listed derivatives to determine the fair value is based on prices derived from
active markets. For unlisted derivatives, fair value is determined by applying models of
discounting future cash flows that also ponder the credit risk associated with the financial
instrument. In the case of derivative transactions with institutional counterparties, taking
into account netting agreements (cd CSA) aimed at mitigating credit risk, it is considered
that this risk could be considered virtually nil.

Cancellation Policy
The "financial assets and liabilities held for trading" are derecognised when the contractual
rights on cash flows from financial assets or liabilities, or when the financial asset or
liability is transferred with the transfer of substantially all the risks and benefits of
ownership them. The result of the sale of assets or financial liabilities held for trading are
recognized in the income statement under "Net income of 80 trading activity."




                                                                                              81
Financial assets available for sale
Definition
We define available for sale (cd Available for Sale - AFS) those non-derivative financial assets
that are designated as such or are not classified as:
    (1) credits and loans (see next paragraph);
    (2) Financial assets held to maturity (see next paragraph);
    (3) financial assets held for trading and measured at fair value through profit or loss
        (see previous paragraph).

These financial assets are posted to the "40 Financial assets available for sale."

Criteria for inclusion
The financial instruments available for sale are initially recognized when, and only when,
the company became part of the contractual terms of the instrument, ie the time of
settlement, to a value equal to fair value which generally coincides with the cost of the
same. This figure includes the costs or revenues directly related to the instruments
themselves.
The inclusion of financial assets available for sale may also result from reclassification by
the sector "Financial assets held to maturity" or it only in rare circumstances and in any
case only if the activity is no longer held for the purpose of selling or repurchasing in the
short , the segment "Financial assets held for trading" under these circumstances the
carrying value is equal to the fair value of assets at the time of transfer.

Evaluation criteria
After initial recognition, financial assets available for sale continue to be valued at their fair
value through profit or loss of share interests (such as resulting from application of the
amortized cost) and charged to equity under "Revaluation reserves 130" of changes in fair
value, except for impairment losses, until the financial asset is derecognised, at which time
the overall gain or loss previously recognized in equity is recognized in earnings. Equity
securities that can not be defined reliably the fair value, according to the methods shown
are recorded at cost.

At each annual or interim financial statements is carried out verification of the existence of
objective evidence of impairment that, in the case of equity securities, we also consider it
significant or prolonged.
With reference to the significance of impairment, it was in the presence of significant signs
of impairment when the market value of the stock is lower by more than 35% compared to
historical cost, while in the case of impairment are lower to account for the impairment only
if the assessment of the security on the basis of its fundamental not confirm the soundness
of the company or its future earnings prospects.
With reference to the durability of the reduction in value, this is defined as prolonged if the
fair value remains continuously below the value of the historical cost of purchase for a
period exceeding 18 months: in that case the accounting for impairment in the income
statement without further analysis. In the event of continuous stay in the fair value below
the value of historical cost for periods of less than 18 months, the reference time period is
found most suitable in view of the fact that the impairment is attributable to a general
downward trend in stock market rather than the specific performance of the single party.

In the presence of impairment, the cumulative variation, including those previously
recorded in the shareholders' voice in the aforementioned, is recognized directly in the
income statement

82
item "130 losses / recoveries on impairment of b) financial assets available for sale."
The impairment loss is recorded when the cost of acquisition (net of any repayment of capital
and depreciation) of an available for sale financial asset exceeds its recoverable amount. Any
write-backs, possible only after the removal of the reasons which had given rise to the loss of
value, are thus accounted for:
    if they refer to investments in equity instruments with a direct exchange reserve assets;
    if they refer to investments in debt instruments, are recorded in the income statement
        under "130 losses / recoveries on impairment of b) financial assets available for
        sale."

In any case, the strength of the recovery of value can not exceed the amortized cost of the
instrument, in the absence of previous adjustments, would have had to that point.

In light of the fact that the Bank applies IAS 34 "Interim Financial Reporting" to the yearly
financial statements, resulting in identification of an "interim period" every six months, any
reductions in value are historicized in the end of the semester.

Methods of determining the fair value
Please refer to the section on financial assets and liabilities held for trading ".

Cancellation Policy
Financial assets available for sale are derecognised when the contractual rights on cash
flows from financing activities or when the financial asset is transferred with the transfer of
substantially all the risks and benefits of ownership of the assets themselves. The result of
the sale of financial assets available for sale is charged to the income statement under "100
Profit (loss) on disposal or repurchase of b) financial assets available for sale." At the time of
cancellation shall also to zero, against the income statement corresponding to the case
where part of what was previously charged in reserve assets
"130 Revaluation reserves".


Credits and Loans
Definition
Loans and receivables are defined as (cd Loans and Receivables - L & R) non-derivative
financial assets, with fixed or determinable payments that are not quoted in an active
market. Exceptions:
   a) those who intend to sell immediately or in short, that are classified as held for
      trading, and those that may be entered at initial recognition at fair value through
      profit or loss;
   b) those initially recorded as available for sale;
   c) those for which the holder may not recover substantially all of the initial investment
      for reasons other than deterioration of credit, in which case they are classified as
      available for sale.

The Loans and receivables are recorded under "60 Due to banks" and "70 Loans to
customers".
The Bank includes loans between loans to customers and banks, whether provided directly
or purchased from third parties also fall into this category commercial loans, repurchase
agreements, loans originated by financial leasing and factoring and postal savings.




                                                                                               83
Criteria for inclusion
The loans and receivables are recognized initially when the company becomes part of a
financing contract that is when the creditor acquires the right to pay the amounts
contractually agreed. That date is the date of disbursement of the loan.
The inclusion in this category may also result from reclassification by the sector "Financial
assets available for sale" or, only in rare circumstances and only if the activity is no longer
held for the purpose of selling or repurchasing in the short, the "Financial assets held for
trading ".
The initial carrying value is equal to the fair value of financial instrument that relates to the
amount paid including transaction costs and income directly attributable to it and
determined from the outset, regardless of when they are liquidated. Not included in the
initial carrying value of all charges which are reimbursed by the debtor or counterparty
which are based on internal administrative costs.
If the registration resulting from reclassification, the fair value of assets recorded at the time
of transfer, shall be employed as a new measure of the amortized cost of the activity itself.
In the case of credits and loans to non-market conditions, the initial fair value is calculated
by the application of appropriate valuation techniques illustrated below, in such
circumstances, the difference between the fair value, fixed amount so paid is charged to the
income economic interest in the item.
The contango contracts and repurchase transactions with repurchase or repo transactions
are recognized as the collection or use. In particular, the sales transactions in cash and
repurchase agreements are recorded as liabilities in the budget for the amount received
spot, while the repo transactions and repo transactions are recorded as a credit for the
amount paid spot.

Evaluation criteria
The loans and receivables are measured at amortized cost using the effective interest
criterion.
The amortized cost of a financial asset or liability is the amount at which it was measured at
initial recognition less principal repayments, plus or minus the total depreciation by using
the criterion of effective interest on any difference between the initial value and the maturity
amount and minus any reduction (due to an impairment or recoverability).
The criterion is the effective interest method of calculating the amortized cost of a financial
asset or liability (or group of financial assets and liabilities) and of allocating the interest
income or interest expense over its duration. The effective interest rate is the rate that
exactly discounts estimated future cash payments or receipts through the expected life of
the financial instrument. In the determination of the effective interest rate is necessary to
evaluate cash flows considering all contractual terms of the financial instrument (for
example, prepayment, an option to purchase or similar), but should not be considered for
future losses on loans. The calculation includes all fees and points paid or received between
parties to a contract that are an integral part of effective interest rate, transaction costs, and
all other premiums or discounts.

At each balance sheet date or interim financial statements will be assessed if the objective
evidence that a financial asset or group of financial assets has been impaired in value. This
circumstance occurs when it is foreseeable that the company is unable to collect the
amount due, according to the contractual terms that, for example, in the presence of:
    a) significant financial difficulties of the issuer or obligor;
    b) a breach of contract, such a default or failure to pay interest or principal;
    c) the fact that funding for economic or legal reasons relating to the financial
       difficulties of the beneficiary, the beneficiary extends a concession that the lender
       would not otherwise consider;


84
   d) the likelihood that the recipient state financial reorganization;
   e) the disappearance of an active market for financial assets because of financial
      difficulties;
   f) of observable data indicating that the existence of a measurable decrease in
      estimated future cash flows for a group of similar financial assets since the initial
      recognition of those assets, although the decrease can not yet be identified with the
      individual financial assets in the Group.

The evaluation of non-performing loans (loans that, according to the definitions assigned by
the Bank of Italy, are in a state of distress, substandard, restructured due exposure,
including exposures from 90 to 180 days overdrafts secured by real estate) occurs in a
manner analytical . The evaluation of the remaining credits shall be according to technical
group through grouping into classes of risk.

The criteria for the determination of the impairment to be made to non-performing loans are
based on discounting expected cash flows of principal and interest, taking into account any
guarantees securing positions and any advances received. In determining the present value
of cash flows, the key elements are represented by identification of the estimated collections,
the timing of payments and the discount rate to apply. The extent of loss is equal to the
difference between the carrying amounts of assets and the present value of expected future
cash flows discounted at original effective interest rate.

The evaluation of the performing loans (positions performing and country risk exposures) of
loans for which no indicators of impairment were found and therefore are subject to a
collective assessment. For the estimated cash flows of the assets, aggregated into classes
with similar characteristics in terms of credit risk, loss rates are applied can be derived from
historical statistical series.

Value adjustments on performing loans are estimated by the adoption, for banks the
Group's network, the evaluation methodology based on the Basel 2 regulations.
In particular, the PD (probability of default) and LGD (loss given default) are determined on
the basis of aggregate time series calculated on the total network banks. While this method
provides an accurate representation of the overall credit risk inherent in the loan portfolio,
from other yet not adequately reflect the specific characteristics of individual network banks.
In fact, in the context of the current group UBI the cost of credit quality and default rates
are not yet uniform mainly because of differences in practices and processes for managing
and monitoring the credit. Therefore, in order to better represent the specific characteristics
of individual banks in line with the actual portfolio risk, a methodology is adopted for the
allocation of total adjustments on the sub-network banks, based on different individual
represented by the series of losses and decay rates.

The collective mode is also applied for loans subject to country risk that unsecured loans to
residents of countries with debt servicing difficulties. Such claims do not include impaired
loans for which you apply the analytical evaluation mentioned above.

Impairment losses are recognized immediately reported to the income statement under
"130 losses / recoveries on impairment of a) loans" as well as recovery of any and all
amounts subject to impairments. The backs are recorded and compared to an improved
credit quality that can render a reasonable assurance of timely recovery of principal and
interest, according to the contractual terms of credit, both at the front of the progressive
disappearance of the discount calculated time of entry of the value adjustment. In the case
of collective evaluation, any additional adjustments or write-backs are recalculated
differentially with respect to each claim in performing the valuation date.


                                                                                             85
Methods determining Fair Value
The fair value of loans and is determined by considering the future cash flows, discounted
at the rate of substitution that is at the market rate at the date of assessment to a position
with similar characteristics to credit being evaluated. The fair value is determined for all
claims for the sole purpose of information. In the case of loans and receivables subject to
effective hedges, fair value is calculated in relation to the hedged risk for evaluation
purposes.

Cancellation Policy
The loans and receivables are derecognised when the contractual rights on cash flows
arising from the same or where those assets are transferred with the transfer of
substantially all the risks and benefits of ownership. Otherwise, the loans and continues to
be recognized in the financial statements, although their legal ownership is transferred to a
third party for an amount equal to the continuing involvement.
The activities in question are derecognised when the bank also maintains a contractual
right to receive cash flows from the same, but takes on the same contractual obligation to
pay the same flows to a third party.
The economic result of the transfer of credits and loans is charged to the income statement
under "100 Profit (loss) on disposal or repurchase of a) loans."


Hedging derivatives
Definition
Hedging transactions are intended to counteract the losses on a particular item (or group of
items) attributable to a particular risk through profits detectable on a different element (or
group of elements) if that risk should actually occur .
The Bank gives rise to the following hedging relationship, which is consistent accounting
treatment, and which is described hereinafter:
     Fair Value Hedge: the goal is to counteract adverse changes in the fair value of the
        hedged asset or liability;
        Cash Flow Hedge: The goal is to counteract the variability of expected cash flows
        from an asset or liability recorded in the budget;
Derivatives entered into with counterparties outside company to be designated as hedging
instruments.

Criteria for inclusion
The instruments of hedging, like all derivatives, are initially recognized and subsequently
measured at fair value and are classified under the budget item of assets "80 Derivatives
hedging and balance sheet liabilities" 60 Hedging derivatives.

A relationship qualifies for hedge accounting, and accounting treatment is consistent, if and
only if all the following conditions are met:
     at the beginning of the cover there is a formal designation and documentation of the
        hedging relationship, the objectives of the companies in risk management and
        strategy in undertaking the hedge. This documentation includes the identification of
        the hedging instrument, the ol element covert operation, the nature of risk covered
        and how the company evaluates the effectiveness of the hedging instrument in
        offsetting the exposure to changes in fair value of the hedged item or cash flows
        attributable to hedged risk;
      coverage is expected to be highly effective;
      the hedged forecast transaction, for cash flow hedges,
        is highly probable and presents an exposure to changes in cash flows that could
        affect profit or loss;
        the effectiveness of the hedge can be reliably measured;


86
       the hedge is assessed on the basis of a policy of continuity and is considered highly
       effective for all periods of reference for which the hedge was designated.


Methodology of test effectiveness
The hedging relationship is deemed effective, and as such is consistent accounting
treatment, if at the beginning and during his life changes in the fair value or cash flows of
the hedged item related to the hedged risk, are almost completely offset by changes in fair
value or cash flows of the hedging derivative.
This conclusion is reached when the actual outcome falls inside a range between 80% and
125%.
The assessment of hedge effectiveness is in its early stages through the implementation and
testing perspective when preparing the annual budget through the implementation of the
backtesting, the outcome of this test justifies the application of hedge accounting as it
demonstrates its effectiveness pending .
On a monthly basis is also conducted testing on a cumulative basis which puts the target to
measure the degree of effectiveness of the coverage achieved during the reporting period,
and then verify that in the period the hedging relationship has actually been effective.
Derivative financial instruments that are considered to hedge the economic point of view,
but do not meet the requirements for being considered as effective hedging instruments, are
recorded in "20 Financial assets held for trading" or "40 Financial liabilities held for trading
and economic effects in the corresponding entry "80 Net income from trading activities."
For a description of the methods used in calculating the fair value of derivatives, please refer
to what is written in "financial assets and liabilities held for trading".

Evaluation criteria
Coverage of Fair Value
The fair value hedges are recorded as follows:
    the gain or loss resulting from the measurement of the hedging instrument at fair value
        is recognized in the income statement under "Net income of 90 hedging activities;
    the gain or loss on the hedged item attributable to the hedged risk adjusts the carrying
        amount of hedged item and is recognized immediately, regardless of the category of
        assets or liabilities in the income statement as described above.

The cease hedge accounting prospectively when:
   1. the hedging instrument expires or is sold, terminated or exercised;
   2. the hedge no longer meets the criteria for hedge accounting on these;
   3. the company revokes the designation.

In the case sub 2, where the assets or liabilities measured at amortized cost is covered, the
greater or lesser value arising from the evaluation will result in fair value of hedging has
become ineffective is recognized in the income statement on an effective interest rate method
current at the time of lifting of the cover.
The methods used in the determination of the fair value of the hedged risk in the hedged
asset or liability are described in the paragraphs of commentary on financial assets
available for sale, loans and receivables.

Cash flow hedges
When a derivative financial instrument is designated to hedge the variability of expected
cash flows from an asset or liability recorded in the financial statements or transaction



                                                                                             87
considered highly probable future, the hedge accounting is as follows:
    gains or losses (the assessment of the hedging derivative) linked to the effective portion
       of the hedge are recorded in a special reserve of assets called "130 Revaluation
       reserves";
    gains or losses (the assessment of the hedging derivative) linked to the ineffective
       portion of hedges are recorded directly in the income statement under
       "90 Net income from hedging activities;
    the asset or liability being hedged is valued according to the criteria of class
       membership.

If a future transaction occurs resulting in the inclusion of a non-financial assets or
liabilities, the corresponding gains and losses initially recognized in "130 Revaluation
reserves" are simultaneously transferred from the reserve and charged as a cost to the
initial recognition of assets or liabilities being . If the hedged future transaction
subsequently results in the inclusion of a financial asset or liability, the gains or losses
associated with that were initially recognized directly in "130 Revaluation reserves" are
reclassified to the income statement in the same period or periods during the which the
assets acquired and liabilities assumed has an effect on the income statement. If some of
the profits or losses resulting from that reserve is not considered recoverable, is reclassified
to the income statement under "Net income of 80 trading activity."

In all cases other than those described above, the gains or losses initially recognized in "130
Revaluation reserves" are written off and expensed in the same manner and the same dates
by which the future transaction affects the income statement .

In each of the following circumstances a company must prospectively cease hedge
accounting:
     a) the hedging instrument expires or is sold, terminated or exercised (for this purpose,
        the replacement or carry-over of a hedging instrument with another hedging
        instrument is not a conclusion or termination if such replacement or deposition is
        part of the documented hedging strategy of the enterprise). In this case, the profit (or
        loss) of the hedging instrument is recognized directly in equity until the financial
        year in which the hedge was effective and remains separately recognized in equity
        until the forecast transaction, the subject of coverage, there ;
     b) the hedge no longer meets the criteria for hedge accounting. In this case, the overall
        gain or loss on the hedging instrument is recognized directly in equity by starting
        year in which the hedge was effective remains separately recognized in equity until
        the forecast transaction occurs;
     c) no longer considered that the proposed transaction should occur, in which case any
        related gain or overall loss on the hedging instrument is recognized directly in equity
        since the financial year in which the hedge was effective must be recorded in the
        income statement;
     d) the company revokes the designation. For hedges of a forecast transaction, the
        overall gain or loss on the hedging instrument is recognized directly in equity by
        starting year in which the hedge was effective remains separately recognized in
        equity until the forecast transaction occurs or you waiting should no longer happen.

If it is expected that the operation should not happen again, the profit (or loss) that was
recognized directly in equity is reversed to income.




88
Hedging portfolios of assets and liabilities
The hedging of portfolios of assets and liabilities (the "macrohedging") and consistent
accounting treatment is possible after:
    identification of the hedged portfolio and the division of the same maturity;
     designation of the hedged item;
     identification of the risk of interest rate hedges;
    designation of hedging instruments, the
       determination of effectiveness.

The portfolio hedging of interest rate can contain both activity and passivity. This portfolio is
divided according to the schedule of collection or
Repricing of rate after an analysis of the structure of cash flows.
Changes in fair value recorded on the hedged item are recognized in the income statement
under "Net income of 90 hedging activities" and in the balance sheet item "90 Fair value of
financial assets in hedged" or "70 Fair value financial liabilities hedged. "
Changes in fair value recorded on the hedging instrument are recognized in the income
statement under "Net income of 90 hedging and balance sheet in the active voice" 80
Derivatives hedging or heading of the balance sheet liability "60 derivatives coverage.


Investments in associates and companies subject to joint control
Definition
Subsidiaries
Is defined as "controlled" society in which the Bank exercises control. This condition exists
when the latter has the power to determine, directly or indirectly, to govern the financial
and managerial aspects of business so they can get their benefits. To determine the
presence of control, assessed the presence of potential voting rights exercisable immediately.
Investments in subsidiaries are included in the budget from the date when you start to
exercise control and as long as it remains outstanding. Investments in subsidiaries are
accounted for using the cost method.

Associates
An "connected" society in which the Group holds at least 20% of the voting rights or where
the investor exercises significant influence and which is neither a subsidiary nor a joint
subsidiary for the participant. The significant influence is the power to participate in the
determination of financial and operating policies of the investee but is not control or joint
control. Investments in associates are accounted for using the equity method.

Participation in jointly controlled
Is defined as "jointly controlled" society governed by a contractual arrangement whereby two
or more parties undertake an economic activity subject to joint control.
Investments in joint ventures are recognized in the accounts by adopting the equity method
or the proportional method.

Recognition and evaluation
The item includes investments in companies directly controlled by and / or affiliates and
minority interests in subsidiaries and / or connected to / from other companies within the
Group, entered in the balance sheet at cost. Minority interests held by the Bank are
included in "Financial assets available for sale" accounting treatment which has been
previously described.
If there is evidence that the value of an investment may be impaired, you

                                                                                              89
shall estimate the recoverable amount of the investment, taking into account the present
value of future cash flows that may be generated, including the final disposal value of the
investment. Where the recoverable amount is less than book value, the difference, if
considered of a permanent character, is recognized in the income statement. If the reasons
for impairment cease to exist following an event occurring after the recognition of
impairment, are carried out with charge-backs to the income statement, as far as historical
cost.

Cancellation Policy
Investments are derecognised when the contractual rights to cash flows from the assets
expire or when the financial asset is disposed of by transferring substantially all the risks
and benefits associated with it.


Property, plant and equipment
Assets used in the definition
They are called "Operating assets" tangible assets held for use for the purpose of carrying
out social activities and the use of which has been assumed over a period of increased
exercise.

Assets held for investment purposes
Are defined as "Assets held for investment" properties held with the aim to earn rentals or
for capital appreciation. Consequently, an investment property is distinguished from assets
held for use by the owner to the fact that cash flows largely differentiated from other assets
held by the Bank.

Criteria for inclusion
Tangible assets, equipment or not, are recognized initially at an amount equal to the cost
(In "110 Activities Materials"), inclusive of all costs directly related to the operation of the
property, and taxes and fees non-refundable purchase. This value has subsequently
increased its expenses incurred which are expected to enjoy the future benefits. The costs of
routine maintenance activities are carried on in the income statement when they occur
against the costs of maintenance (improvements) from which future economic benefits are
capitalized to the value of the related assets.
Improvements and incremental expenses incurred on leased assets from which benefits are
expected to come are registered:
     if equipped with self-identifiability and separability in "110 Tangible assets" in the
         category most appropriate, whether they relate to third-party assets used pursuant
         to a lease that property held under a finance lease;
     if not equipped with self-identifiability and separability in "110 Property and equipment,
         to increase the activities it supports, if used under a finance lease or under the item"
         150 Other assets "when referring to assets used to effect a lease.

The cost of an asset is recognized as an activity if and only if:
    it is probable that future economic benefits associated with good flow to farm, the
        cost of the asset can be reliably determined.

Evaluation criteria
Subsequent to initial recognition, tangible equipment are stated at cost, as defined above,
net of accumulated depreciation and any accumulated impairment losses. The depreciable
amount, equal to the cost less the residual value (ie

90
the expected amount that would normally on the disposal, after deducting the expected
costs of disposal if the asset were already in the conditions, even in old age, provided at the
end of its useful life), is recognized systematically over the useful life of tangible assets such
as adopting depreciation on straight-line method. The useful life, subject to periodic review
in order to detect possible differ significantly from previous estimates, is defined as:
     the period of time in which it is expected that a work is usable by the company or,
     the number of production or similar units that the company expects to obtain from the
        use of the same activities.

In view of the fact that tangible assets can cover different parts of life, land, whether alone
or included in the value of the building, are not subject to depreciation as assets which it is
associated with indefinite useful lives. The spin-off of the value attributable to the land from
the total value of property is, for all buildings in proportion to the percentage of ownership.
Buildings are depreciated against the above criteria.
Works of art are not subject to amortization because their value is generally set to increase
with the passage of time.
The depreciation of an asset begins when the camera is available for use and ceases when
the asset is derecognised when the relevant date is the latest in which the asset is classified
for sale and the date of derecognition. Consequently, the depreciation does not cease when
the activity becomes idle or is retired from active use, unless the activity is not fully
depreciated.
Improvements and incremental expenses are amortized:
     if equipped with self-identifiability and separability, according to the assumed life as
         described above;
     if not equipped with self-identifiability and separability in the case of property used
         under a lease, as the shorter period from that in which improvements and
         expenditures can be used and the residual duration of the lease taking into account
         any single renewal, or in the case of property used under a finance lease, according
         to the expected useful life of assets to which they relate.

The depreciation of the improvements and incremental expenses leasehold found in the
"150 Other Activities" is entered in the "190 Other net operating income".

At each balance sheet date or you shall check to see whether there are indications showing
that the loss of value suffered by a business. The loss resulting from the comparison
between the carrying value of tangible assets and the lower recovery value. The latter is the
greater of fair value, net of any costs to sell and value of its intended use as the present
value of future cash flows generated by the asset. The loss is recorded immediately in the
income statement under "170
Impairment / write-backs on property and equipment "is a residual including the possible
future return of value if the reasons giving rise to the previous devaluation.

Defining and determining the fair value of
property
The fair value is determined by reference to market value defined as the lowest possible
price at which the sale of a property can reasonably be regarded as unconditionally ended
against monetary compensation to the date of valuation, assuming:
     the seller and buyer are independent parties;
     that the vendor has the intention to dispose of real property;
    that there is a reasonable period of time (considering the type of asset and the market
        situation) to make a proper marketing, agree the price and conditions necessary to
        complete the sale;

                                                                                               91
       the market trends, the level of value and other economic conditions on the date of
       signing of the preliminary purchase agreement are identical to those existing at the
       date of valuation;
       that any offers from buyers for whom the property has characteristics that it
       considered "off-market" are not taken into account.

The methods used for determining market value are based on the following methods:
    comparative method or the direct market, based on a comparison between the property
       in question and similar ones being sold or currently offered on the same competitive
       market or in squares;
    earnings method based on the present value of the income potential of the market of a
       similar property, obtained by capitalizing the income at a market rate.

The methods mentioned above were performed separately and the values obtained with each
properly mediated.

Determination of land value
The methodology used for identifying the percentage of market value attributable to land
was based on analysis of the location of the property, taking into account the type of
construction, the state of conservation and the cost of new construction of the entire
property.

Tangible assets acquired under finance leases
A finance lease is a contract that transfers substantially all risks and rewards of ownership
of the property. The right to property can be transferred or less at the end of the contract.

The commencement of the lease is the date from which the lessee is entitled to exercise its
right to use the leased asset and therefore corresponds to the date of initial recognition of
the lease.
At the time of the contract period, the lessee accounts for the transactions to finance lease
as assets and liabilities on its balance sheet at amounts equal to the fair value of the leased
property or, if lower, the present value of minimum lease payments. In determining the
present value of minimum lease payments the discount rate used is the interest rate
implicit contract, if ascertainable, otherwise use the interest rate of the lessee's incremental
borrowing. Any initial direct costs incurred by the lessee are added to amount recognized as
an asset.

The minimum lease payments are divided between the finance charge and reduction of
outstanding debt. The first are allocated over the contract period to determine a constant
interest rate on the residual liability.
The finance lease involves the inclusion of the amortization of assets under contract and
financial expenses for each financial year. The depreciation method used for assets acquired
in rent is consistent with that for owned assets to which paragraph reference is made for a
more detailed description.

Cancellation Policy
The asset is derecognised upon disposal or when the same is permanently withdrawn from
use and from its disposal are not expected future economic benefits. Any gains or losses
from the retirement or disposal of tangible assets, the difference between the estimated net
disposal proceeds and the book value of assets, are recognized in the income statement
under "240 Profit (loss) on disposal of investments" .




92
Intangible assets
Definition
It defined an intangible non-monetary assets, identifiable, without physical substance and
used in the accomplishment of social activity.
The asset is identifiable when:
     is separable, ie capable of being separated or divided and sold, transferred, licensed,
         rented or exchanged;
     arises from contractual or other legal rights regardless of whether those rights are
         transferable or separable from other rights and obligations.

The activity is characterized by the fact of being controlled by the company as a result of
past events and the assumption that through its use economic benefits to business. The
Bank has control of an activity if it has the power to take advantage of future economic
benefits arising from the resource and can also restrict access to these benefits from third
parties.
The future economic benefits arising from an intangible asset may include revenue from the
sale of products or services, cost savings or other benefits resulting from the use of assets
by the Bank.

An intangible asset is recognized if, and only if:
    a) are probable future economic benefits expected to venture attributable to the
       activity;
    b) the cost of activity can be measured reliably.

The likelihood of future benefits is evaluated using reasonable and supportable assumptions
that represent the best estimate of the set of economic conditions that exist over the useful
life of assets.
The degree of certainty attached to the flow of economic benefits attributable to the use of
assets is valued on the basis of the sources of information are available at the time of initial
recognition, giving greater weight to external sources of information.

The Bank considers the intangible goodwill.

Intangible assets with finite useful life
It defined a finite useful life the activities for which you can estimate the time limit within
which it is expected the production of the related economic benefits.

Intangible assets with indefinite useful lives
It defined the assets with indefinite useful lives so it is not possible to estimate a foreseeable
limit to the period during which the activity is expected to generate economic benefits for the
company. The award of an indefinite useful life of the asset does not arise from future
expenses that have already been programmed over time going to restore their standard of
performance of activities, extending the useful life.
The goodwill is considered an indefinite useful life.

Criteria for inclusion
The activities outlined in the balance sheet item "120 Intangible Assets", is stated at cost
and any costs subsequent to initial recognition are capitalized only if it can generate future
economic benefits and if those costs can be determined and allocated to activities in reliably.
The cost of an intangible asset includes:
    the purchase price including any taxes and taxes on purchases is not recoverable after
       deducting trade discounts and rebates;
       any direct cost to prepare the business to use.



                                                                                                  93
Evaluation criteria
Subsequent to initial recognition, intangible assets with finite useful lives are stated at cost
less amortisation and total impairment may have occurred. The amortisation is calculated
on a systematic basis over the best estimate of the useful life of fixed assets (see definition
included in the section "Tangible Assets") using the straight-line method of distribution.

The amortisation process begins when the asset is available for use and ceases at the date
on which the asset is derecognised.

Intangible assets with indefinite useful lives (see start-up, as defined in the following
paragraph if positive) are stated at cost less any impairment losses identified in the
application of the tests conducted periodically to verify the adequacy of the carrying value of
assets ( see next paragraph). For these activities, therefore, does not proceed to the
calculation of depreciation.

No intangible asset arising from research (or from the research phase of an internal project)
is the subject of detection. Expenditure on research (or research phase of an internal
project) is recognized as an expense when incurred.

An intangible asset arising from development (or from the development phase of an internal
project) is recognized if, and only if, it can be shown that:
     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 and use or sell;
     c) the company's ability to use or sell the intangible asset.

At each balance sheet date or proceed to the verification of the existence of any impairment
losses on intangible assets. These losses result from the difference between the value of
recognition of the assets and the recoverable amount and are recorded as any write-backs,
in "180 Impairment / write-backs on intangible assets" excluding impairment losses relating
to goodwill which are posted to the "230 Adjustments of goodwill".

Goodwill
It defines the difference between starting the acquisition cost and the fair value of assets
and liabilities acquired in course of a business combination which consists of union of
companies or businesses into a single company is required to prepare financial statements.
The result of nearly all business combinations is the fact that only one company, the
acquirer, obtains control of one or more separate business activities related to acquired.
When a company acquires a group of assets or net assets that do not constitute a business
activity that allocates the cost of assembly to the individual identifiable assets and liabilities
based on their fair value at the acquisition date.
A business combination may result in a participatory relationship between parent and
subsidiary in which the buyer is the parent company acquired a subsidiary of El buyer.

All business combinations are accounted for using the method of purchase (so-called
purchase method).
The method of acquisition includes the following steps:
     a) identification of the buyer (the buyer is the company aggregating to obtain control of
        the other companies or businesses aggregate);
     b) Cost of business combination;
     c) allocating, at the acquisition date, the cost of business combination to the assets
        acquired and liabilities and contingent liabilities assumed.

94
With the purchase method of determining the cost of acquiring a business combination as
the aggregate:
    a) the fair value at the date of exchange, of assets given, liabilities incurred or assumed
       and equity instruments issued by the acquirer, in exchange for control of the
       acquiree;
    b) any costs directly attributable to business combination.

The combination transactions made with companies or subsidiaries of the same group are
accounted for in accordance to the finding of significant economic substance of the same.
Under that principle, the goodwill arising from such operations, is entered:
   a) to item 120 of active balance sheet assumptions reflected in the significant economic
      substance;
   b) a deduction from equity otherwise.


Allocating the cost of a business combination to the assets acquired and liabilities and
contingent liabilities assumed
The buyer:
    a) notes the goodwill acquired in a business combination as assets;
    b) measure that goodwill at its cost, as it represents the excess of the cost of business
        combination over the acquirer of the buyer interest in the fair value of assets,
        liabilities and contingent liabilities.

The goodwill acquired in a business combination represents a payment made by Buyer in
anticipation of future economic benefits from assets that can not be individually identified
and separately recognized.
After initial recognition, the purchaser shall evaluate the goodwill acquired in a business
combination at cost less accumulated impairment losses.
The goodwill acquired in a business combination should not be amortized. The buyer,
however, shall annually review whether it has suffered an impairment loss, or more
frequently if events or changes in circumstances indicate that might be impaired in value,
as listed by the standard.
The principle states that an activity (including the starter) has been reduced in value when
the carrying amount exceeds the recoverable amount, being defined as the higher of fair
value less costs to sell and the value of use, defined by par. 6 of IAS 36.
For the purpose of impairment testing of goodwill must be allocated to the cash-generating
units or groups of units, subject to the constraint that maximum aggregate can not exceed
the identified segment under IFRS 8.


Negative goodwill
If the share the buyer's interest in the fair value (fair value) in cash and assets, liabilities
and contingent liabilities exceeds the cost of business combination, the acquirer:
   a) review the identification and measurement of assets, liabilities and contingent
      liabilities of the acquiree and the determination of the cost of aggregation;
   b) Notes to the income statement immediately any excess remaining after the re-
      measurement.

Cancellation Policy
The intangible asset is derecognised as a result of disposal or when no future economic
benefits are expected from its use or disposal.



    95
Loans, securities in circulation (and subordinated debt)
The various forms of interbank and customers are represented in the balance sheet items
"10 Due to banks", "20 Due to customers", "30 Securities issued. These items are also
included in the liabilities listed in the tenant area of finance leases.

Criteria for inclusion
The liabilities in question are budgeted at the time corresponding to the note of the receipt
of all sums collected or issuance of debt securities. The value to which they are registered
is equal to its fair value including any costs and income directly attributable to operating
activities is determined from the outset, regardless of when they are liquidated. Not included
in the initial carrying value of all charges which are reimbursed by the creditor, or which are
based on internal administrative costs.


Evaluation criteria
After initial recognition financial liabilities are measured at amortized cost using the
effective interest rate method as defined above.

Cancellation Policy
Financial liabilities are derecognised when settled or expired.
The repurchase of securities in issue leads to the cancellation of the same amount resulting
in a redefinition of the debt securities issued. The possible difference between the value of
its share repurchase and the corresponding amount of the liability is recognized in the
income statement under "100 Profit (loss) on disposal or repurchase of d) financial
liabilities". The next possible relocation of its securities, subject to earlier cancellation
accounting is, reversed, resulting in a new issue subscription to the new IPO price, with no
effect on the income statement.


Tax assets and liabilities
The assets and tax liabilities are shown in the balance sheet under "130 Tax assets" and "80
Tax liabilities."

Tax assets and liabilities
The current setting of the year and the previous ones, to the extent that they have not been
paid, are recorded as a liability due to the possible surplus is recorded as an asset.

Liabilities (assets) Current tax of the current year and prior periods are measured at the
amount expected to be paid / recovered in respect of the taxation authorities, using tax
rates and tax laws in force.
Current tax assets and liabilities are cleared in the year in which the assets are realized or
liabilities are settled.

Tax assets and liabilities
For all taxable temporary differences is recorded a deferred tax liability, unless the deferred
tax liability arises from:
      goodwill for which amortization is not deductible for tax purposes or
     the initial recognition of an asset or a liability in a transaction that: not a
        business combination and


96
          at the time of the transaction does not affect either accounting profit nor taxable
           profit. 

Deferred taxes are not calculated in relation to the increased value of assets under
suspension of taxes relating to investments in stocks and suspension of tax as is believed,
at present, there are no reasonable assumptions for future charging.

Deferred tax liabilities are recognized in the balance sheet item "80 Tax liabilities b)
deferred."
For all deductible temporary differences is recorded a deferred tax asset if it is probable that
taxable profit will be used against which can be used the deductible temporary difference,
unless the deferred tax asset arises from:
     negative goodwill which is treated as deferred income;
        initial recognition of an asset or a liability in a transaction that:
        not a business combination and 
         at the time of the transaction affects neither accounting profit nor taxable profit. 

Deferred tax assets are recognized in the balance sheet item "130 Tax assets b) assets".

Deferred tax assets and deferred tax liabilities are continually monitored and quantified
according to the tax rates that are expected to apply in the period in which the tax asset will
be realized or the liability is settled tax, taking account of tax law resulting from action
currently in force.

Deferred tax assets and deferred tax liabilities are cleared in the year in which:
    temporary difference that gave rise to become taxable in respect of deferred tax
       liabilities or implied with respect to deferred tax assets;
       temporary difference that gave rise to tax loses relevance.

Deferred tax assets and deferred tax liabilities are not discounted and even, in principle,
offset each other.


Provisions for risks and charges
Definition
The provision is defined as a liability of uncertain timing or amount.

On the other hand, is defined as contingent liability:
    a possible obligation that arises from past events and whose existence will be confirmed
       only by the occurrence or absence of one or more future events not wholly within the
       control of the Bank;
    a present obligation that arises from past events but is not recognized because:
        is not likely to pay off the debt will have the use of financial resources;
        the amount of the obligation can not be determined with sufficient reliability.

Contingent liabilities are not being recognized, but only information, unless they are
considered remote.

Recognition and evaluation
The provision is recognized in the accounts if and only if:

                                                                                              97
           there is an obligation (legal or constructive) as a result of a past event and it is likely
           that debt will be required to meet the outflow of resources embodying economic
           benefits, and
           can be a reliable estimate of the amount resulting from implementation of the
           obligations.

The amount recognized as a provision is the best estimate of the expenditure required to
settle all debt existing on the date of the balance sheet and reflects risks and uncertainties
that inevitably characterize a number of facts and circumstances.
The amount of provision is the present value of expenses that are supposed to be necessary
to settle the debt if the effect of the present value is material. Future events that may affect
the amount required to settle the debt are taken into consideration only if there is sufficient
objective evidence that the same will occur.
Provisions for risks and charges include the risk arising from possible litigation.

Cancellation Policy
The provision is reversed when it became the unlikely use of resources embodying economic
benefits to meet the obligation.


Foreign currency transactions
Definition
Foreign currency is a currency other than the functional currency of the Bank, which in
turn is the currency of the primary economic environment in which the Bank operates.

Criteria for inclusion
A foreign currency transaction is recorded, on initial recognition in the functional currency
by applying to the foreign currency amount the spot exchange rate between the functional
currency and the foreign currency at the date of the transaction.

Evaluation criteria
At each balance sheet date:
     a) 40 monetary items in foreign currencies are translated using the closing rate;
     b) 41 non-monetary items that are valued at historical cost in foreign currency are
        translated using the exchange rate at the date of the transaction;
     c) non-monetary items that are measured at fair value in a foreign currency are
        translated using the exchange rates at the date when the fair value is determined.

Exchange differences arising from settlement of monetary items or on translating monetary
items at rates different from those at which they were converted to initial recognition during
the year or in previous financial statements, are recognized in the income statement of the
year in which they originate .
When a gain or loss on a non-monetary item is recognized directly in equity, any exchange
component of that gain or loss is recognized directly in equity. Conversely, when a gain or
loss on a non-monetary item is recognized in the income statement, each exchange
component of that gain or loss is recognized in the income statement.




40 are defined as "monetary" elements represented by specific amounts or currency assets and liabilities to be received or paid for a set
   amount of currency.
                    The characteristic of a monetary item is therefore entitled to receive or obligation to pay a fixed
   or determinable number of units of currency.
41 See, on the contrary, the references to the items "monetary".

98
OTHER INFORMATION
- Provisions for guarantees and commitments
Provisions on individual and collective basis to estimate the potential payments related to
acquisition of credit risk inherent in guarantees and commitments made in pursuance
thereof shall be determined on criteria set by reference to a claim.
These provisions are recorded under item 100 "Other liabilities" in return for the income
statement 130d "Impairment / write-backs for impairment of: other financial transactions."

- Employee Benefits
Definition
Employee benefits are defined as all forms of consideration paid by the company in
exchange for work performed by employees. Employee benefits are divided between:
    short-term benefits (other than benefits payable to employees upon termination of
       employment and compensation benefits in the form of equity participation) due
       wholly within twelve months after the end of the year in which the employees render
       the work;
    Post-employment benefits payable after the conclusion of the employment relationship;
    benefit plans after the end of the employment relationship or agreements under which
       the company provides benefits after termination of employment;
    long-term benefits, other than the above, due wholly within twelve months of the term
       of the year in which the employees have performed work on.

Indemnity Policy Registration
The indemnities entered is regarded as a defined benefit plan and as such requires the
determination of the value of bonds on the basis of actuarial assumptions el on a
discounted basis as the debt can be paid off significantly after the employees render the
activity working on.
The amount recorded as a liability shall be:
   a) the present value of defined benefit obligation at the balance sheet date;
   b) plus any actuarial gains (less any actuarial losses) recognized in a special reserve in
      shareholders' equity;
   c) less any pension charges relating to past service not yet recognized;
   d) less the fair value at the date of the balance sheet of any business carried on plan.

Evaluation criteria
The Bank, in relation to accounting for actuarial gains and losses, has opted for the direct
detection in equity valuation reserves between these components.
The "Actuarial gains / losses" include the effect of adjustments resulting from the
reformulation of the previous actuarial assumptions as a result of actual experiences or due
to modifications of the same assumptions.

For the purposes of discounting method is used the "Projected Unit Credit" which considers
each period of service as giving rise to an additional unit of severance pay measured as
each unit separately to build up the final obligation. This additional unit is obtained by
dividing the total expected performance for number of years elapsed from the time of
recruitment to the expected date of liquidation. The application of this method involves the
projection of future payments based on historical analysis

    99
statistics and the demographic curve el financial discount these flows using a market
interest rate. The rate used for the purpose of discounting is determined as the average
interest rate swap bid and ask at the reference date of the assessment appropriately
interpolated for intermediate maturities.


Revenues
Definition
Revenues are gross inflow of economic benefits arising from the performance of ordinary
activities of the enterprise when those inflows result in increases in equity, other than
increases relating to contributions by the shareholders.

Criteria for inclusion
Revenues are measured at fair value of the consideration received or receivable and are
recognized in the accounts when they can be reliably estimated.

The result of an operation to provide services can be estimated reliably when all the
following conditions are met:
      the amount of revenue can be measured reliably;
      it is probable that economic benefits will flow from operations to the company;
     the stage of completion of the transaction on the date of the balance sheet can be
         reliably measured;
     costs incurred for the operation and the cost to complete can be reliably calculated.

Revenues recorded against the provision of services are recognized consistent with the stage
of completion of the transaction.
Revenue is recognized when it is probable that economic benefits will flow from operations
by the Bank. However, when the collectability of an amount already included in revenue is
characterized by uncertainty, the uncollectable amount, or the amount for which recovery is
no longer probable, is recognized as an expense rather than as an adjustment of revenue
originally recognized.

Revenue arising from use by others of the company's assets that generate interest or
dividends are recognized when:
     it is probable that economic benefits will flow from operations by business;
         the amount of revenue can be measured reliably.

Interest is recognized on an accrual basis that considers the actual performance of the
property. In particular:
    Interest income includes amortization of the value of any waste, premium or other
        differences between the initial carrying amount of a security and its value at
        maturity.
    interest payments are recorded in item 10 "Interest income and similar revenues" for
        the party deemed recoverable.

Dividends are recorded in accounting at the shareholders' right to receive payment.

Costs or revenues from the sale of securities, determined by the difference between paid or
received in the transaction and the fair value of the instrument are recognized in earnings at
entry only because of the financial instrument fair value is determined:
    by reference to observable current market transactions in the same instrument;


100
          using valuation techniques that use such variables, only data from observable
          markets.


- Costs
Costs are recognized for accounting purposes when they are incurred in accordance with
the principle of the correlation between costs and revenues that result directly and jointly
from the same transactions or events. Costs that can not be associated revenues are
recognized immediately in income.
Costs directly attributable to financial instruments measured at amortized cost determined
from the outset, regardless of when they are cleared, flooding in the income statement by
applying the effective interest rate for the definition of which can be found under "Loans and
receivables" .
Impairment losses are recognized in income in the year in which they are discovered.




   101
Information on fair value

Section A.3
Information on fair value
A.3.1 Transfers between portfolios
There were no reclassified portfolio of financial assets from categories measured at fair
value to amortized cost categories.


A.3.2 Hierarchy of fair value
The fair value used for the measurement of financial instruments is determined on the basis
of criteria set out below hierarchy, taking the use of so-called observable or unobservable
inputs.
The inputs are observable parameters developed based on market data available and reflect
the assumptions market participants would use when price the financial instrument,
otherwise unobservable inputs are parameters for which data are not available to the
market and are therefore developed based on best available information on the assumptions
that market participants would use when price the financial instrument.

Fair value determined on the basis of input level 1:
The assessment is based on observable inputs which is quoted prices in active markets for
identical securities to which the entity can access the valuation date of the instrument. The
market is defined as active when prices are expressed reflecting normal market
transactions, are regularly and readily available, and whether those prices represent actual
and regularly occurring market transactions.

Fair value determined on the basis of input level 2:
The evaluation is done through methods that are used if the instrument is not quoted in an
active market and relies on inputs other than Level 1. The assessment of the financial
instrument is based on prices can be derived from market prices for similar assets or by
means of assessment for which all the relevant factors - credit spreads and liquidity - are
derived from observable market parameters. Although this is a technical evaluation of the
application, the resulting price is substantially devoid of discretion as the most important
parameters used are drawn from the market and the estimation methods used replicate
quotes on active markets.

Fair value determined on the basis of input level 3
The evaluation is done through methods that involve the exploitation of the instrument is
not listed by use of inferable significant input from the market and therefore does not
involve the adoption of estimates and assumptions by management.




102
Accounting portfolios: breakdown levels of fair value



                                                        31/12/2009                                               31/12/2008
   Financial assets / liabilities
          measured at
              fair value
                                          Level 1          Level 2                 Level 3             Level 1       Level 2            Level 3


1.- financial assets held for trading               -              20.259                     -                  -            26.183               3
  Financial assets designated at
2.fair value                                        -                       -                 -                  -                 -                -
3.Financial assets available for sale         12.538                        -           10.007             14.563                  -         10.056
4.Hedging derivatives                               -              33.704                     -                  -           149.360                -
                                  Total      12.538                53.963              10.007              14.563        175.543            10.059
  Financial assets and liabilities held
1.for trading                                       -              20.206                     -                  -            24.978                -
  Financial liabilities designated
2.at fair value                                     -                       -                 -                  -                 -                -
3.Hedging derivatives                               -              47.811                     -                  -            51.315                -
                                 Total              -              68.017                     -                  -           76.293                    -




A.3.2.2 Annual changes in financial assets at fair value)

                                                                                             FINANCIAL ASSETS



                                                        held for                                             available for
                                                                                valued at fair value                                   hedging
                                                        trading                                                   sale


1. Opening balance                                                     3                           -                 10.056                        -
2. Increases                                                            -                          -                    376                        -
2.1. Purchases                                                          -                          -                    272                        -
2.2. Profit allocated to:                                               -                          -                    104                        -
2.2.1. Income Statement                                                 -                          -                          -                    -
    - Of which capital gains                                            -                          -                          -                    -
2.2.2. Shareholders’ equity                                X                             X                              104                        -
2.3. Transfers from other levels                                        -                          -                          -                    -
2.4. Other increases                                                    -                          -                          -                    -
3. Decreases                                                          (3)                          -                   (425)                       -
3.1.Vendite                                                             -                          -                          -                    -
3.2. Reimbursement                                                      -                          -                          -                    -
3.3. Losses allocated to:                                             (3)                          -                   (276)                       -
3.3.1. Income Statement                                               (3)                          -                   (249)                       -
    - Of which capital losses                                           -                          -                   (249)                       -
3.3.2. Shareholders’ equity                                X                             X                              (27)                       -
3.4. Transfers to other levels                                          -                          -                          -                    -
3.5. Other decreases                                                    -                          -                   (149)                       -
4. Closing balance                                                      -                          -                 10.007                        -




A.3.2.3 Annual changes in financial liabilities at fair value)

For the Bank there is no such case.



                                                                                                                                                  103
A.3.3 Information on the so-called "day one profit / loss"

The information referred to in paragraph 28 of IFRS 7, which is any difference between the
transaction price and the value obtained through the use of valuation techniques that
emerge from the initial recognition of a financial instrument and not immediately recognized
in income the basis set out in paragraphs AG76 and AG76A IAS 39.
Where you should submit the case to be referred to the accounting policies adopted by the
Bank to allocate to the income statement, after the first registration of the instrument, the
differences so determined.
Taking also into account the view expressed in paragraph fiscal policies, the Bank has
established operations for which emerge at the time of first registration of a financial
instrument, the difference between the transaction price and the value obtained by the
instrument a technique of internal evaluation.




104
Part B – Notes to the Balance sheet
ASSETS

Section 1                Cash and cash equivalents - Item 10 -

Cash and cash equivalents


                                          31/12/2009       31/12/2008

a) Cash                                          50.663            80.585
demand deposits with central banks                     -                -
Total                                            50.663           80.585




    105
Section 2 Financial assets held for trading - Item 20 -

2.1 Financial assets held for trading: product breakdown


                                                       31/12/2009                                   31/12/2008
                Items / Values
                                         Level 1        Level 2         Level 3       Level 1        Level 2         Level 3
A. Cash assets
1
. Debt securities                                  -               50             -             -                -             -
  1.1 Structured securities                        -                -             -             -                -             -
  1.2 Other debt securities                        -               50             -             -                -             -
1
. Equity securities                                -                -             -             -                -             3
3
. UCITS amount                                     -                -             -             -                -             -
4
. Loans                                            -                -             -             -                -             -
  4.1. Repurchase agreements                       -                -             -             -                -             -
  4.2 Other                                        -                -             -             -                -             -
Total A                                            -              50              -             -                -             3
B. Derivative instruments
1
. Financial derivatives:                           -         20.209               -             -         26.183               -
  1.1 held for trading                             -         19.993               -             -          26.058              -
  connected with the fair value option             -                -             -             -                -             -
  1.3 other                                        -              216             -             -              125             -
2
. Credit derivatives:                              -                -             -             -                -             -
  2.1 trading                                      -                -             -             -                -             -
  connected with the fair value option             -                -             -             -                -             -
  2.3 other                                        -                -             -             -                -             -
Total B                                            -         20.209               -             -         26.183               -
Total A+B                                          -         20.259               -             -         26.183               3




106
2.2 Financial assets held for trading: breakdown by debtors / issuers



                          Items / Values                                 31/12/2009                                31/12/2008


A. CASH ASSETS
Debt securities                                                                                    50                                -
     a) Governments and Central Banks                                                                -                               -
     b) Other public entities                                                                      49                                -
     c) Banks                                                                                        -                               -
     d) Other issuers                                                                               1                                -
2. Equity securities                                                                                 -                              3
     a) Banks                                                                                        -                               -
     b) Other issuers:                                                                               -                               3
        - insurance companies                                                                        -                               -
        - financial companies                                                                        -                               3
        - non-financial companies                                                                    -                               -
        - other                                                                                      -                               -
3. UCITS units                                                                                       -                               -
4. Loans                                                                                             -                               -
     a) Governments and central banks                                                                -                               -
     b) Other public entities                                                                        -                               -
     c) Banks                                                                                        -                               -
     d) Other counterparties                                                                         -                               -
Total A                                                                                            50                               3
B. DERIVATIVES
     a) Banks
       - fair value                                                                              4.006                          12.772
     b) Customers
       - fair value                                                                          16.203                             13.411
Total B                                                                                      20.209                             26.183
                                           Total (A+B)                                       20.259                             26.186




2.3 Financial assets held for trading: annual changes


                                                  Debt securities        Equity securities       UCITS units        Loans                Total


Opening balance                                                      -                       3                 -                -                  3
B.   Increases                                             244.625                     579                     -                -           245.204
B.
1    Purchases                                             244.120                      575                    -                -           244.695
B.
2    Positive changes in fair value                                 50                       -                 -                -                 50
B.
3    Other changes                                             455                           4                 -                -                459
C.   Decreases                                            (244.575)                   (582)                    -                -          (245.157)
C.
1    Sales                                                (244.575)                    (571)                   -                -          (245.146)
C.
2    Reimbursement                                                   -                       -                 -                -                   -
C.
3    Negative change in fair value                                   -                       -                 -                -                   -
C.
4    Transfers to other portfolios                                   -                       -                 -                -                   -
C.
5    Other changes                                                   -                  (11)                   -                -                (11)
D. Closing balance                                              50                           -                 -                -                 50




        107
Section 3 Financial assets at fair value - Item 30 -

For the Bank there is no such case.



Section 4                    - financial assets available for sale-item 40
Financial assets available for sale: breakdown


                                                       31/12/2009                                               31/12/2008
             Item/Amounts

                                         Level 1        Level 2         Level 3              Level 1             Level 2               Level 3

1. Debt securities                            12.538                -             3.757                12.389                  -                 3.814
   1.
   1 Structured securities                         -                -                 -                     -                  -                     -
   1.
   2 Other debt securities                    12.538                -             3.757                12.389                  -                 3.814
2. Equity instruments                              -                -             6.250                 2.174                  -                 6.242
   2.
   1 Valued at fair value                          -                -             1.309                 2.174                  -                 1.273
   2.
   2 Valued at cost                                -                -             4.941                     -                  -                 4.969
3. Quotas of UCITS                                 -                -                 -                     -                  -                     -
4. Loans                                           -                -                 -                     -                  -                     -
                               Total          12.538                -         10.007               14.563                          -         10.056




Financial assets available for sale: breakdown by debtors 4.2 issuers



                             Items / Values                             31/12/2009                        31/12/2008



Debt securities                                                                      16.295                           16.203
  a) Governments and Central Banks                                                   12.538                           12.389
  b) Other public entities                                                                    -                                -
  c) Banks                                                                                    -                                -
  d) Other issuers                                                                        3.757                            3.814
2. Equity securities                                                                  6.250                            8.416
  a) Banks                                                                                    -                            2.174
  b) Other issuers:                                                                       6.250                            6.242
      - insurance companies                                                                   -                                -
      - financial companies                                                               2.558                            2.826
      - non-financial companies                                                           3.678                            3.325
      - other                                                                               14                               91
3. UCITS units                                                                                -                                -
4. Loans                                                                                      -                                -
  a) Governments and central banks                                                            -                                -
  b) Other public entities                                                                    -                                -
  c) Banks                                                                                    -                                -
  d) Other counterparties                                                                     -                                -
                                                          Total                      22.545                           24.619




108
4.3 Financial assets available for sale to customers with specific

Have not been put in place hedging of financial assets available for sale.



Financial assets available for sale: annual changes


                                            Debt securities        Equity securities       UCITS units       Loans       Total


Opening balance                                       16.203                    8.416                    -           -       24.619
B. Increases                                             195                      733                    -           -           928
B.1 Purchases                                                 10                  262                    -           -            272
B.2 Positive changes in fair value                       185                      104                    -           -            289
B.3 Write-backs                                                -                       -                 -           -               -
  - Through profit or loss                                     -           X                             -           -               -
  - Shareholders' equity                                       -                       -                 -           -               -
B.4 Transfers from other portfolios                            -                       -                 -           -               -
B.5 Other changes                                              -                  367                    -           -            367
C. Decreases                                            (102)                  (2.899)                   -           -       (3.001)
C.1 Sales                                                      -               (2.382)                   -           -       (2.382)
C.2 Reimbursement                                              -                       -                 -           -               -
C.3 Negative changes in fair value                             -                  (27)                   -           -            (27)
C.4 Write-downs due to impairment                              -                 (249)                   -           -           (249)
  - Through profit or loss                                     -                 (249)                   -           -           (249)
  - Shareholders' equity                                       -                       -                 -           -               -
C.5 Transfers to other portfolios                              -                       -                 -           -               -
C.6 Other changes                                       (102)                    (241)                   -           -           (343)
D. Closing balance                                    16.296                    6.250                    -           -       22.546




Section 5                      Financial assets held to maturity

For the Bank there is no such case.




                                                                                                                                 109
Section 6                Due from banks - Item 60 -

6.1 Due to banks: product breakdown



                           Type of transaction/Amounts                         31/12/2009       31/12/2008


A. Deposits with Central Banks
1. Restricted deposits                                                                      -                -
2. Compulsory reserve                                                                       -                -
3. Repurchase agreements                                                                    -                -
4. Other                                                                                    -                -
B. Due from banks
1. Current accounts and unrestricted deposits                                         251.124          189.516
2. Restricted deposits                                                                840.102          993.560
3. Other loans:                                                                       301.131          373.635
  3.1 Repurchase agreements                                                            59.721          160.285
  3.2 Finance lease                                                                         -                -
  3.3 Other                                                                           241.410          213.350
4. Debt securities                                                                          -                -
  4.1 Structured securities                                                                 -                -
  4.2 Other debt securities                                                                 -                -
                                                         Total (book value)         1.392.357        1.556.711
                                                          Total (fair value)        1.392.357        1.556.711



The decrease is mainly due to:
          Restricted deposits. The item included € 180 million arising from the Group policy
           aimed at structural readjustment, and a fixed deposit of EUR 200 million
           subordinated made at the parent company. 

          Repurchase agreements. Approximately 60 million euro have been concluded only
           with the parent company is closely related to similar harvesting operations carried
           out with customers. 

The item "deposits" includes the mandatory reserve paid indirectly, amounting to EUR
108.4 million.



6.2 Loans to banks: activities covered by specific

There are no loans to banks covered by specific.



6.3 Finance lease

There are no loans to banks to finance leases.




110
Section 7                      Receivables from customers - Item 70 -

7.1 Loans to customers: product breakdown

                                                                                                 Total                                            Total
                      Type of transaction/Amounts                                         31/12/2009                                         31/12/2008
                                                                              Perfor                                             Perfor
                                                                              ming                          Impaired             ming                      Impaired

1. Current accounts                                                                  1.520.175                      126.334          1.805.042                   92.821
2. Repurchase agreements                                                                         -                           -                    -                      -
3. Mortgages                                                                         4.258.304                      215.711          4.207.623                 149.696
4. Credit loans cards, personal and salary-backed loans                                 20.168                        1.266                 32.644                2.740
5. Finance lease                                                                                 -                           -                    -                      -
6. Factoring                                                                                     -                           -                    -                      -
7. Other transactions                                                                1.017.261                      164.867          1.335.397                 110.408
8. Debt securities                                                                       7.994                               -               7.662                       -
   8.1 Structured                                                                                -                           -                    -                      -
   other debt securities                                                                 7.994                               -               7.662                       -
                                                   Total (book value)               6.823.902                   508.178              7.388.368                 355.665
                                                    Total (fair value)              7.046.349                   500.418              7.655.455                 350.233




The "other operations" mainly includes advances on bills and documents sbf, financing
imports and exports subsidies and other non-regulated in c / c customers.




7.2 Loans to customers: breakdown by debtors / issuers

                                                                                         Total                                                    Total

                     Type of transaction/Amounts                                      31/12/2009                                              31/12/2008
                                                                         Perfor                                                  Perfor
                                                                         ming                            Impaired                ming                       Impaired

1. Debt securities                                                                    7.994                              -                    7.662                           -
a) Governments                                                                            -                              -                        -                           -
b) Other public entities                                                                  -                              -                        -                           -
c) Other issuers                                                                      7.994                              -                    7.662                           -
   - non-financial companies                                                              -                              -                        -                           -
   - financial companies                                                              7.994                              -                    7.662                           -
   – insurance companies                                                                  -                              -                        -                           -
   - other                                                                                -                              -                        -                           -
   2. Loans to:                                                                   6.815.907                     508.178                   7.380.706                355.665
a) Governments                                                                        2.622                              -                   13.940                           -
b) Other public entities                                                             16.567                             6                    20.709                          41
c) Other issuers                                                                  6.796.718                     508.172                   7.346.057                355.624
   - non-financial companies                                                      4.764.871                     408.375                   5.288.617                270.939
   - financial companies                                                             55.679                          4.725                   79.282                     4.656
   – insurance companies                                                              3.153                              -                    2.754                           -
   - other                                                                        1.973.015                         95.072                1.975.404                    80.029
                                                         Total                    6.823.901                    508.178                    7.388.368                355.665




7.3 Loans to customers covered by specific activity

There are loans to customers with specific hedges.


7.4 Finance lease

There are no loans to banks to finance leases.




                                                                                                                                                                   111
Section 8                         Hedging derivatives - Item 80

Hedging derivatives: breakdown by type of coverage and levels

                                            PV 31/12/2009                  PV                    PV 31/12/2008                  PV

                                   L1            L2             L3       31/12/2009         L1        L2             L3       31/12/2008

A. Financial derivatives                -             33.704         -       2.054.107           -         149.360        -          1.566.867
  1)Fair value                          -             32.421         -          1.936.877        -          18.247        -            735.950
  2)Cash flows                          -              1.283         -           117.230         -         131.113        -            830.917
  3)Foreign investments                 -                   -        -                  -        -               -        -                  -
B. Credit derivatives                   -                   -        -                  -        -               -        -                  -
  1)Fair value                          -                   -        -                  -        -               -        -                  -
  2)Cash flows                          -                   -        -                  -        -               -        -                  -
                          Total         -             33.704         -       2.054.107           -         149.360        -          1.566.867




112
8.2 Hedging derivatives: breakdown by hedged portfolio and type of coverage

                                                                                    Fair Value                                                            Cash flow

                                                                         Specific                                                                                              Investments
Transaction / Type of cover
                                                                                                                                                                                 Foreign
                                                                                                                             Generic       Specific              Generic
                                Interest rate risk Exchange rate risk   Credit risk        Price risk       Multiple risks


1. Financial assets available
                                                -                   -                  -                -               -      X                      -               X             X
available for sale
2. Loans                                        -                   -                  -            X                   -      X                      -               X             X
3. Financial assets held
                                       X                            -                  -            X                   -      X                      -               X             X
to maturity
4. Portfolio                           X                            X                  X                X               X          1.446              X                    -        X

5, Other operations                             -                   -                  -                -               -              -              -                    -                 -

Total assets                                    -                   -                  -                -               -          1.446              -                    -                 -

1. Financial liabilities                   30.975                   -                  -            X                   -      X                  1.283               X             X

2. Portfolio                                    -                   -                  -                -               -              -              -                    -        X

Total liabilities                          30.975                   -                  -                -               -              -          1.283                    -                 -

1. Expected transactions               X                   X                X                       X           X              X                      -               X             X
2. Portfolio of assets and
                                       X                   X                X                       X           X                      -      X                            -                 -
financial liabilities




                                                                                                                                                                                                 113
Section 9 Fair value of financial assets in hedged - Item 90 -
9.1 Fair value of hedged assets: breakdown by hedged portfolio



               Adjustment of hedged asset value       31/12/2009             31/12/2008


1. Positive adjustment

1.1 of specific portfolios:                                      32.785                35.601
  a) loans                                                       32.785                35.601
  financial assets available for sale                                 -                         -
1.2 overall                                                           -                         -
2. Negative adjustment
2.1 of specific portfolios                                            -                     (787)
  a) loans                                                            -                     (787)
  financial assets available for sale                                 -                         -
2.2 overall                                                           -                         -
Total                                                            32.785                34.814




9.2 Activities of the hedged interest rate risk


                               Hedged asset         31/12/2009            31/12/2008

1. Loans                                                 1.057.147               804.732
2. Financial assets available for sale                            -                     -
3. Portfolio                                                      -                     -
Total                                                    1.057.147              804.732




114
Section 10 Investments - Page 100 -

Equity investments in subsidiaries, jointly controlled or under significant influence:


                                                                                                                       Share
                                   Names                                               Registered office
                                                                                                                  Participation%

A. Exclusively held subsidiaries


B. Jointly held subsidiaries


Companies subject to significant influence


UBI Leasing SpA                                                                              Brescia                  18,996
UBI Sistemi e Servizi SCpA                                                                   Brescia                   2,96
Centrobanca SpA                                                                              Milano                    5,47
Arca SGR SpA                                                                                 Milano                    3,58
SPF Studio Projects and Financial Services Ltd                                                Rome                     25,00




Equity investments in subsidiaries, jointly controlled or under significant influence:

                                                                                                           Shareholders’
                    Names                              Total           Total revenue       Profit (loss)      equity     Book value
                                                     ASSETS                   (*)                               (**)


A. Exclusively held subsidiaries


Jointly held subsidiaries
                                                 0                 -                   -                   -             -                -
C. Companies subject to significant influence


UBI Leasing SpA                                        10.765.142               91.753               11.578        300.682         34.645
UBI Sistemi e Servizi                                     214.254                  680                     -        52.076            1.565
Centrobanca SpA                                         8.806.074              195.032               28.042        602.595         31.757
Arca SGR SpA                                              162.605               59.104               10.008        112.447            1.176
SPF Studio Projects and Financial Services Ltd                 1.047                   7                   -          137               26
                        # REF!

Total                                                 19.949.122              346.576                49.628      1.067.937         69.169




(*) The amounts represent the gross income.
(**) Shareholders' equity includes the profit arising from the draft budget for 2009.




                                                                                                                                      115
10.3 Equity investments: annual changes


                                               Total              Total
                   Causal / Categories
                                            31/12/2009         31/12/2008

A. Opening balance                                   92.815            75.940
B. Increases                                               -           16.875
B.1 Purchases                                              -           16.875
B.2 Write-backs                                            -                -
B.3 revaluations                                           -                -
B.4 Other changes                                          -                -
C. Decreases                                         23.646                 -
C.1 Sales                                            18.851                 -
C.2 Write-downs                                            -                -
C.3 Other changes                                     4.794                 -
D. Closing balance                                   69.169            92.815
E. Total revaluations                                      -
F. Total adjustments                                       -                -



The item B.1 "Purchases" 2008 is the increase in participation in UBI Leasing
SpA (about 15,309 thousand euro) and the purchase of the investment in systems and UBI
Services (about 1,565 thousand euro). The changes recognized in 2009 relates to the sale of
its stake in UBI Assicurazioni SpA




10.4 Commitments relating to investments in subsidiaries

There are no investments classified as subsidiaries.


10.5 Commitments relating to investments in subsidiaries, jointly

There are classified as jointly controlled subsidiaries.


10.6 Commitments relating to investments in companies under significant influence

There are no commitments or contingent liabilities related to companies under significant
influence.




116
Section 11                Tangible assets - Item 110 -
11.1 Tangible assets: breakdown of assets carried at cost


                             Assets/Amounts                     31/12/2009         31/12/2008


A. Assets used in business
  1.1 owned                                                            120.195            120.047
  a) land                                                               29.953             26.040
  b) buildings                                                          72.825             76.480
  c) furniture                                                           3.877              4.823
  d) electronic systems                                                  4.183              4.452
  e) other                                                               9.357              8.252
  1.2 acquired through a finance lease                                   1.743              2.410
  a) land                                                                    552                552
  b) buildings                                                           1.110              1.126
  c) furniture                                                                 -                  -
  d) electronic systems                                                        -                  -
  e) other                                                                    81                732
Total A                                                                121.938            122.457
B. Assets held for investment purposes
  2.1 owned                                                             12.539             13.007
  a) land                                                                5.497              5.497
  b) buildings                                                           7.042              7.510
  2.2 acquired through a finance lease                                         -                  -
  a) land                                                                      -                  -
  b) buildings                                                                 -                  -
Total B                                                                 12.539             13.007
Total (A+B)                                                            134.477            135.464




11.2 Tangible assets: breakdown of assets measured at fair value or revalued
Tangible assets are valued at cost, so there is not the case.




    117
11.3 Property and equipment used in operations: annual changes

                                                                                                                   Electronic
                                                              Land           Buildings         Furniture                             Other           Total
                                                                                                                    equipment

A. Opening gross balance                                        26.592            260.889              26.853             16.199         50.386        380.919
Total net reductions in value                                            -       (183.283)            (22.030)           (11.747)       (41.402)      (258.462)
A.2 Net                                                         26.592             77.606                  4.823           4.452             8.984     122.457
B. Increases                                                     3.913              1.465                   188            1.187             3.693       10.446
B.1 Purchases                                                        3.913          1.465                   188             1.187            3.657       10.410
B.2 Capitalized expenditure on improvements                              -                 -                   -                 -               -               -
B.3 Write-backs                                                          -                 -                   -                 -               -               -
B.4 Positive fair value changes recognized in:                           -                 -                   -                 -               -               -
  a) shareholders' equity                                                -                 -                   -                 -               -               -
  b) income statement                                                    -                 -                   -                 -               -               -
B.5 Positive exchange differences                                        -                 -                   -                 -               -               -
B.6 Transfer from assets held for investment                             -                 -                   -                 -               -               -
B.7 Other changes                                                        -                 -                   -                 -             36              36
C. Decreases                                                             -         (5.136)             (1.134)            (1.456)        (3.240)       (10.966)
C.1 Sales                                                                -                 -                   -                 -            (41)            (41)
C.2 Depreciation                                                         -         (5.135)             (1.134)             (1.456)       (2.533)       (10.258)
C.3 Value adjustments to re date improvement attributed to:              -                 -                   -                 -               -               -
  a) shareholders' equity                                                -                 -                   -                 -               -               -
  b) income statement                                                    -                 -                   -                 -               -               -
C.4 Negative fair value changes recognized in:                           -                 -                   -                 -               -               -
  a) shareholders' equity                                                -                 -                   -                 -               -               -
  b) income statement                                                    -                 -                   -                 -               -               -
C.5 Negative exchange differences                                        -                 -                   -                 -               -               -
C.6 Transfers to:                                                        -                 -                   -                 -               -               -
      a) tangible assets held for investment purposes                    -                 -                   -                 -               -               -
  b) assets being disposed                                               -                 -                   -                 -               -               -
C.7 Other changes                                                        -               (1)                   -                 -           (666)           (667)
D. Closing net balance                                          30.505             73.935                  3.877           4.183             9.437     121.937
Total net reductions in value                                            -       (188.417)            (23.163)           (12.342)       (42.301)      (266.223)
D.2 final gross                                                 30.505            262.352              27.040             16.525         51.738        388.160
E. Valuation at cost                                                     -                 -                   -                 -               -               -




118
Depreciation is calculated on the basis of estimated useful life of the asset from the date of
entry into operation.
The estimated useful life in months for the major asset classes are shown below


                       Description             Amortization                        Useful life

Land for buildings                                 NO                          Unamortized
Real Estate Leased property                        YES                   On the basis of expertise
Lifting and weighing equipment                     YES                          160 months
Light-weight constructions and shelving            YES                          120 months
Furniture and other furnishings                    YES                          120 months
Furniture and office machinery                     YES                          100 months
ATM Equipment                                      YES                           96 months
Safes and prefabricated security doors             YES                           80 months
Machinery, appliances and other equipment          YES                           80 months
Various machinery, furniture and fixtures          YES                           80 months
Security counters or with bullet-proof glass       YES                           60 months
Personal Computers                                 YES                           60 months
Canteen equipment                                  YES                           48 months
Special internal systems of communication          YES                           48 months
Alarm system                                       YES                           40 months
Firefighting equipment                             YES                           40 months
Electric and electronic office machines            YES                           30 months
Transport vehicles                                 YES                            30 months
Cars                                               YES                           24 months
Leased Cars                                        YES               On the basis of the contract period




11.4 Tangible assets held for investment: annual changes

                                                                          31/12/2009

                                                              Land                          Buildings

A. Opening balance                                                       5.497                     14.382
A.1 Total net impairment                                                      -                     (6.872)
A.3 Initial net                                                          5.497                      7.510
B. Increases                                                                   -                          32
B.1 Purchases:                                                                -                            23
  B.1.1 Purchases                                                             -                            23
  Company aggregation transactions                                            -                             -
B.2 Capitalized expenditure on improvements                                   -                             9
B.3 Positive changes in fair value                                            -                             -
B.4 Write-backs                                                               -                             -
B.5 Positive exchange rate differences                                        -                             -
B.6 Transfer from function use assets                                         -                             -
B.7 Other changes                                                             -                             -
C. Decreases                                                                   -                        (500)
C.1 Sales                                                                     -                             -
C.2 Depreciation                                                              -                         (500)
C.3 Negative fair value changes                                               -                             -
C.4 Write-downs for impairment                                                -                             -
C.5 Exchange losses                                                           -                             -
C.6 Transfers to other asset portfolios:                                      -                             -
  a) Buildings - Used in the business                                         -                             -
  b) non-current assets being disposed                                        -                             -
C.7 Other changes                                                             -                             -
D. Closing balance                                                       5.497                      7.042
Total net impairment                                                          -                     (7.042)
D.2 final gross                                                          5.497                     14.084
E. Fair Value measurement                                                 3.375                     13.166




                                                                                                                119
11.5 Commitments for the purchase of tangible assets (IAS 16/74.c)


                         Assets / Values            31/12/2009         31/12/2008

A. Assets used in business
1.1 owned:                                                   1.226                  118
  - Land                                                           -                  -
  - Buildings                                                      -                  -
  - Furniture                                                    121                  -
  - Electronic systems                                             -                  -
  - other                                                    1.105                  118
Under finance lease:                                               -                  -
  - Land                                                           -                  -
  - Buildings                                                      -                  -
  - Furniture                                                      -                  -
  - Electronic systems                                             -                  -
  - other                                                          -                  -
Total A                                                      1.226                  118
B. Assets held for investment purposes
2.1 owned:                                                         -                  -
  - Land                                                           -                  -
  - Buildings                                                      -                  -
Under finance lease:                                               -                  -
  - Land                                                           -                  -
  - Buildings                                                      -                  -
Total B                                                            -                  -
Total A+B                                                    1.226                  118



The above commitments are within normal planning activities of the company, it is not yet
done that orders will be delivered in early 2010.




120
Section 12                          Intangible assets - Item 120 -

12.1 Intangible assets: breakdown by type of activity


                                                               31/12/2009                                        31/12/2008
                       Assets/Amounts

                                                 Definite duration       Indefinite duration       Definite duration       Indefinite duration

A.1 Goodwill                                            X                             31.727                X                           31.727
A.2 Other intangible assets                                          -                         -                       -                         -
A.2.1 Assets measured at cost:                                       -                         -                       -                         -
  a) Internally generated intangible assets                          -                         -                       -                         -
  b) Other assets                                                    -                         -                       -                         -
A.2.2 Assets designated at fair value:                               -                         -                       -                         -
  a) Internally generated intangible assets                          -                         -                       -                         -
  b) Other assets                                                    -                         -                       -                         -
Total                                                                -                31.727                           -                31.727




 The goodwill balance sheet represents the payment made in advance by the Bank for future
 economic benefits arising from business combination.

 Goodwill represents the amount paid by the Banca Popolare di Ancona in front of the
 capacity of units subject to aggregation, to generate future economic benefits to society
 "aggregator". The following are reported in detail:


 MERGER BANCA POPOLARE DI NAPOLI: Share of
 merger deficit resulting from cancellation of participation in
 Built Bank of Naples, imputed                             to goodwill                                           (Fusion            5.245
 occurred in 1999) to EUR 5,393 thousand net of 148 thousand euro
 transferred following the sale of two branches in the area of operation
 "ATM switch intercompany"
                                                                the
 BRANCH OF ACQUISITION COMPANY: ZIP               paid      for acquisition                                        of        8 10.365
 ATM Banco di Napoli (2002)
                                                                the
 BRANCH OF ACQUISITION COMPANY: ZIP               paid      for acquisition                                        of        2      5.874
 stop San Paolo Imi (2002)
 MERGER BANCA POPOLARE DI Todi: deficit
 cast aside by the investment in the built-Bank                                                                                   10.243
 Todi, who was charged to goodwill (the merger in 2006)
 Total goodwill                                                                                                                   31.727


 As stated by IAS 36, a company must assess at each balance sheet date whether there is
 any indication that an asset has been impaired (impairment test). With reference to
 goodwill, regardless of whether there are any indications of impairment is necessary to
 perform the above verification at least annually. Within the meaning of IAS 36, a business
 has suffered an impairment in value when its carrying amount exceeds its recoverable
 amount ie the higher of its fair value less costs to sell and its value of use.
 The goodwill has been allocated to the whole legal entity which the total cash-generating units.
 Therefore the verification of impairment of goodwill recorded in the balance sheet at 31 December
 2009 was performed by comparing the value of use of whole business
 (Which is a single cash generating unit) with its book value.
 The estimated value of use has been made on the basis of discounted cash flow income,
 determined on the basis of the budget for 2010 and extrapolated on the basis of growth
 rates 2009-2012 of the main key components, described below, approved by the Board of
 Directors of the Bank :
        121
              Loans to customers                   CAGR%   2009-2012
              RWA Jobs                             CAGR%   2009-2012
              Direct deposits                      CAGR%   2009-2012
              Managed savings                      CAGR%   2009-2012
              Assets under custody                 CAGR%   2009-2012

              Operating Income                     CAGR% 2009-2012
              Net fee and commission income        CAGR% 2009-2012
              Operating costs                      CAGR% 2009-2012
              Cost income                          CAGR% 2009-2012
              Cost of credit                       CAGR% 2009-2012
              Mark up time                         2011-2012
              Mark down the average                2011-2012
              Spread indirect                      2011-2012


The growth rate of earnings used is 0.80% and is considered stable and does not exceed the
rates of long-term growth of the entire banking sector.
The discount rate after tax net profits amounted to 7.75%. This rate together with the
growth rate over the period of the forecast of 0.80% helps to define a capitalization rate to
estimate the terminal value equal to 6.95%. The capitalization rate is aligned to that used by
equity analysts who follow the UBI.

The methodology described above and the quantitative information in support were adopted
in an autonomous and formal adoption by the Board of Directors of the Bank.
The analysis performed allowed us to detect the absence of impairment losses (impairment
losses) of goodwill recorded in the Bank's balance sheet at 31 December 2009.




122
12.2 Intangible assets: annual changes

                                                                      Other assets Intangible: generate
                                                                                                                    Other intangible assets: other
                                                                                internally
                                                   Goodwill                                                                                                     31/12/2009
                                                                      Definite            Indefinite
                                                                      duration            duration            Definite duration       Indefinite duration

A. Opening balance                                          31.727                    -                   -                       -                         -         31.727
Total net impairment                                              -                   -                   -                       -                         -                -
A.2 Net                                                    (31.727)                   -                   -                       -                         -        (31.727)
B. Increases                                                      -                   -                   -                       -                         -                -
B.1 Purchases                                                     -                   -                   -                       -                         -                -
  B.1.1 Purchases                                                 -                   -                   -                       -                         -                -
   Company aggregation transactions                               -                   -                   -                       -                         -                -
    Increases in internally generated intangible
B.2 assets                                             X                              -                   -                       -                         -                -
B.3 Write-backs                                        X                              -                   -                       -                         -                -
B.4 Positive changes in fair value                                                    -                   -                       -                         -                -
  - shareholders’ equity                               X                              -                   -                       -                         -                -
  - income statement                                   X                              -                   -                       -                         -                -
B.5 Positive exchange differences                                 -                   -                   -                       -                         -                -
B.6 Other changes                                                 -                   -                   -                       -                         -                -
C. Decreases                                                      -                   -                   -                       -                         -                -
C.1 Sales                                                         -                   -                   -                       -                         -                -
C.2 Write-downs                                                   -                   -                   -                       -                         -                -
  - Amortization                                       X                              -                   -                       -                         -                -
  - WRITEDOWNS                                                    -                   -                   -                       -                         -                -
     + shareholders’ equity                            X                              -                   -                       -                         -                -
     + income statement                                           -                   -                   -                       -                         -                -
C.3 Negative change in fair value                                                     -                   -                       -                         -                -
  - shareholders’ equity                               X                              -                   -                       -                         -                -
   - income statement                                  X                              -                   -                       -                         -                -
     Transfers to non-current assets being
C.4 disposed
                                                                  -                   -                   -                       -                         -                -
disposal
C.5 Exchange losses                                               -                   -                   -                       -                         -                -
C.6 Other changes                                                 -                   -                   -                       -                         -                -
D. Closing net balance                                      31.727                    -                   -                       -                         -         31.727
Total net value adjustments                                       -                   -                   -                       -                         -                -
E. Closing gross balance                                    31.727                    -                   -                       -                         -         31.727
F. Measurement at cost                                            -                   -                   -                       -                         -                -




12.3 Other information
We provide the following information:
   a) there is no impediment to the distribution to shareholders of capital gains on
      revalued intangible assets;
   b) There are no intangible assets acquired by government grant;
   c) There are no intangible assets pledged as collateral for its debts;
   d) There are no commitments for the purchase of intangible assets;
   e) There are no intangible assets subject to leases.




                                                                                                                                                                       123
Section 13 Tax assets and tax liabilities - Item 80 and Item 130 of
liability -
13.1 Deferred tax assets: breakdown


                                                                                               Total                                  Total
                                                                                           31/12/2009                             31/12/2008


                                                                                                         Tax effect                            Tax effect
                                                                                   Amount of                              Amount of
                                                                                                         (IRES rate                            (IRES rate
                                                                                   differences                            differences
                                                                                                       27,5%, 4,82%                          27,5%, 4,82%
                                                                                   temporary                              temporary
                                                                                                            IRAP                                  IRAP
                                                                                                        (DIFFERENT                            (DIFFERENT
                                                                                                       FISCAL LAWS)                          FISCAL LAWS)

Prepaid tax assets with contra-entry in income statement                                  299.915              84.404            218.707             62.724
- Loans                                                                                   234.697              64.542            152.836             42.030
- Financial instruments                                                                            -                  -                  -                  -
- Tangible assets                                                                          17.107               5.451             16.769              5.358
- Provisions for risks and charges                                                         15.931               4.381             17.086              5.255
signatory credit                                                                            3.403                 936              3.329               915
- Personnel expenses                                                                        2.280                 627              2.077               571
- Goodwill                                                                                 10.243               3.311             10.243              3.311
- Other minor                                                                               2.292                 644              1.476               471
- Starting (reclassified from equity to the income statement)                              13.962               4.513             14.892              4.813
Prepaid tax assets with contra-entry in shareholders’ equity                                 718                 232               5.975              1.931
- Assessment of shares / available for sale                                                      718              232              5.975              1.931
- Other minor                                                                                      -                  -                  -                  -
Total deferred tax assets recognized                                                      300.632              84.636            224.682             64.655
- Timing differences excluded from the determination of deferred tax assets                        -                  -                  -                  -
                                                                                                   -                  -                  -                  -
Total deferred tax assets inscribed                                                       300.632              84.636            224.682             64.655




13.2 Deferred tax liabilities: breakdown

                                                                                               Total                                  Total
                                                                                           31/12/2009                             31/12/2008


                                                                                                         Tax effect                            Tax effect
                                                                                   Amount of                              Amount of
                                                                                                         (IRES rate                            (IRES rate
                                                                                   differences                            differences
                                                                                                       27,5%, 4,82%                          27,5%, 4,82%
                                                                                   temporary                              temporary
                                                                                                            IRAP                                  IRAP
                                                                                                        (DIFFERENT                            (DIFFERENT
                                                                                                       FISCAL LAWS)                          FISCAL LAWS)

Deferred taxes recognized through profit or loss                                            8.958               2.666             10.395              3.000
- Property and equipment leased                                                                    -                  -                  -                  -
- Financial instruments                                                                            -                  -                  -                  -
- Tangible assets                                                                           3.065                853               4.904              1.361
- Goodwill                                                                                  3.418               1.105              1.709                552
- Provisions for loan losses                                                                       -                  -                  -                  -
- Gains in installments                                                                      563                 180                942                 302
- Personnel expenses                                                                               -                  -                  -                  -
- Other minor                                                                                    58               19                    58               19
- Gain on disposal of branches (reclassified from equity to the income statement            1.854                510               2.782                765
Deferred tax on shareholders' equity                                                         657                 165               1.739               424
- Valuation of securities available for sale                                                 155                  27                252                  16
- Personnel expenses                                                                         502                 138               1.486                409
- Gains on sales of branches                                                                       -                  -                  -                  -
Total deferred members                                                                      9.615               2.832             12.134              3.424
- Timing differences excluded from the determination of deferred tax                               -                  -                  -                  -
Total deferred tax inscribed                                                                9.615               2.832             12.134              3.424




124
Changes in deferred tax assets (income statement)


                                                       31/12/2009          31/12/2008

1. Opening balance                                            57.911              41.951
2. Increases                                                  32.360              23.746
2.1 prepaid taxes recognized in year                          27.547               23.745
     a) relating to previous periods                                   -                 -
     b) due to change in accounting policy                             -                 -
     c) write backs                                                    -                 -
     d) other                                                 27.547               23.745
  2.2 New taxes or increase in tax rates                               -                 -
  2.3 Other increases                                          4.813                    1
3. Decreases                                                  (5.867)             (7.786)
  3.1 Prepaid taxes derecognized during the year              (5.825)              (7.786)
     a) reversals                                             (5.825)              (7.786)
     b) write-downs due to non-recoverable amounts                     -                 -
     c) change in accounting policy                                    -                 -
     d) other                                                          -                 -
  3.2 Reduction in tax rates                                           -                 -
  3.3 Other reductions                                              (42)                 -
4. Closing balance                                            84.404              57.911




13.4 Changes in deferred taxes (income statement)


                                                       31/12/2009          31/12/2008

1. Opening balance                                             2.235               5.207
2. Increases                                                   1.319               1.384
2.1 Deferred taxes recognized during the year                       554             1.375
  a) relating to previous periods                                      -                 -
  b) due to change in accounting policy                                -                 -
  c) other                                                          554             1.375
2.2 New taxes or increase in tax rates                                 -                9
2.3 Other increases                                                 765                  -
2.4 Company aggregation transactions                                   -                 -
3. Decreases                                                    (888)             (4.356)
3.1 Deferred taxes derecognized during the year                 (888)               (333)
  a) reversals                                                  (381)               (333)
  b) due to change in accounting policy                                -                 -
  c) other                                                      (507)                    -
3.2 Reduction of tax rates                                             -                 -
3.3 Other decreases                                                    -           (4.023)
4. Closing balance                                             2.666               2.235



For more information on what was stated in paragraph 3.3 Other reductions, please refer to
the detail in the Report on Operations - Other Information-Tax Aspects.




     125
13.5 Changes in deferred tax assets (shareholders' equity)


                                                        31/12/2009             31/12/2008

1. Opening balance                                                  6.744               5.101
2. Increases                                                         232                1.931
2.1 Prepaid taxes recognized in the year                                   -            1.931
  a) relating to previous periods                                          -                    -
  b) due to change in accounting policies                                  -                    -
  c) other                                                                 -            1.931
2.2 New taxes or increase in tax rates                               232                        -
2.3 Other increases                                                        -                    -
3. Decreases                                                    (6.744)                 (288)
3.1 Prepaid taxes derecognized during the year                  (1.931)                     (288)
  a) reversals                                                  (1.931)                     (288)
  b) write-downs due to non-recoverable amounts                            -                    -
  c) due to change in accounting policies                                  -                    -
  d) other                                                                 -                    -
3.2 Reduction in tax rates                                                 -                    -
3.3 Other decreases                                             (4.813)                         -
4. Closing balance                                                   232                6.744




13.6 Changes in deferred taxes (in return of equity)


                                                       31/12/2009              31/12/2008


1. Opening balance                                              1.189                   1.448
2. Increases                                                         22                       26
2.1 Deferred taxes recognized during the year                          -                        -
  a) relating to previous periods                                      -                        -
  b) due to change in accounting policy                                -                        -
  c) other                                                             -                        -
2.2 New taxes or increase in tax rates                                 -                        -
2.3 Other increases                                                  22                       26
2.4 Company aggregation transactions                                   -                        -
3. Decreases                                                   (1.045)                  (285)
3.1 Deferred taxes derecognized during the year                  (280)                      (285)
  a) reversals                                                   (280)                      (285)
  b) due to change in accounting policy                                -                        -
  c) other                                                             -                        -
3.2 Reduction in tax rates                                             -                        -
3.3 Other decreases                                              (765)                          -
4. Closing balance                                                  166                 1.189



13.7 Other information


                                                           Total                  Total
                                                         31/12/2009            31/12/2008

Advances paid to tax authorities                                15.247                 64.419
Tax credit                                                      22.008                  6.264
                                                                37.255                 70.683




126
Section 14 Non-current assets held for sale and related liabilities - Item
140 -
For the Bank there is no such case.




Section 15              Other assets - Item 150 -

15.1 Other assets: breakdown


                                                            31/12/2009           31/12/2008

Leasehold improvements                                                   9.014            8.897
Items in transit                                                         4.589           14.121
Fees to collect                                                      23.416               9.481
Value range on transaction in exchange portfolio                         3.824                81
Items being processed                                                20.727               5.093
Tax assets                                                           13.157              10.930
Other assets fiscal consolidation                                    44.018                    -
Other items                                                          16.691              68.266
TOTAL                                                              135.436              116.869




Deferred tax consolidation loans and advances are the direct taxes transferred to the Parent
Company in accordance with the regulations of the national fiscal consolidation.
The other matches comprise accruals not brought back for a total of EUR 5.4 million.
It is recalled that the Bank, in 2008, has not exercised the option to tax consolidation
regime.




     127
LIABILITIES

Section 1              Due to banks - Item 10 -

1.1 Due to banks: breakdown



                            Type of transaction/Amounts                       31/12/2009       31/12/2008


1. Deposits from Central Banks                                                             -                -
2. Due to banks                                                                       78.050         210.965
  2.1 Current accounts and unrestricted deposits                                      61.743          181.825
  2.2 Restricted deposits                                                              7.966           19.338
  2.3 Loans                                                                            4.328            5.636
      2.3.1 repurchase agreements                                                          -                -
      2.3.2 Other                                                                      4.328            5.636
  2.4 Payables for commitments to repurchase own equity instruments                        -                -
  2.5 Other payables                                                                   4.013            4.166
                                                                      Total           78.050         210.965
                                                                  Fair
                                                                  Value              78.050          210.965



"Other debts" is operating payables.


1.2 Details of item 10 "Due to banks: subordinated debt

There are no subordinated debt from banks.


1.3 Details of item 10 "Due to banks": structured debts

There are no structured debts to banks.


1.4 Due to banks covered by specific

There are no debts covered by specific banks.


1.5 Finance lease payables

Nono are due to banks, financial leasing.




128
                            Deposits from customers - Item
Section 2                                              20 -

2.1 Due to customers: product breakdown


                              Type of transaction / Value                        31/12/2009             31/12/2008


1. Current accounts and unrestricted deposits                                          4.510.677              4.007.429
2. Restricted deposits                                                                   10.719                     3.847
3. Loans                                                                                 58.181                155.230
  3.1 Repurchase agreements                                                              58.095                154.183
  3.2 Other                                                                                    86                   1.047
4. Payables for commitments to repurchase own equity instruments                                   -                    -
5. Other payables                                                                        39.834                 74.419
                                                                       Total          4.619.411              4.240.925
                                                                   Fair Value         4.619.411              4.240.925



"Other debts" is mainly the cashier.


2.2 Details of item 20 "Due to customers': subordinated debt


There are no subordinated debt to customers.


2.3 Details of item 20 "Due to customers": structured debts


There are no structured debts from customers.


2.4 Due to customers covered by specific


There are no debts covered by specific to customers.


2.5 Obligations under finance leases


                                                                                31/12/2009             31/12/2008

Outstanding debt to leasing companies
  - Within one year                                                                            -                       -
  - Between 1 and 5 years                                                                     86                 1.047
  over 5 years                                                                                 -                       -




     129
Section 3                     Debt securities in issue - Page 30 -

3.1 Debt securities in issue: product breakdown


                                                   Total 31/12/2009                                            Total 31/12/2008

      Type of securities /
      Values                       Value                      Fair Value                      Value                       Fair Value

                                  ANNUAL                                                     ANNUAL
                                  REPORT        Level 1        Level 2         Level 3       REPORT         Level 1           Level 2          Level 3

A. Securities
        1. bonds                    2.947.459             -       2.956.795              -      2.978.656             -           2.983.796                  -
         1.1 structured             1.572.275             -       1.580.635              -      1.709.616             -           1.711.009                  -
       1.2 Other                    1.375.184             -       1.376.160              -      1.269.040             -           1.272.787                  -
        2. other                      429.552             -
        securities                                                  429.552              -      1.308.048             -           1.308.048                  -
           2.1                              -             -
           structured                                                      -             -              -             -                    -                 -
           2.2 other                  429.552             -         429.552              -      1.308.048             -           1.308.048                  -
                          Total    3.377.011              -       3.386.347              -     4.286.704              -           4.291.844                  -




                             structured, located near the
Bonds                                         customers,    are predominantly of the type step
up, step down, constant maturity swaps, inflation-linked, index linked. Also include
loans signed by the parent company for the improvement of structural balance (to 1.145
billion callable).
The significant decrease in the item other securities is essentially linked to short-term
certificates of deposit denominated in foreign currencies, primarily Japanese yen and the
decline is attributable to the 97% to a contraction of the masses.




3.2 Breakdown of item 30 "Outstanding": subordinated securities

On December 14, 2009 has reached the natural end to a floating rate subordinated bonds
(Lower Tier II) issued on December 14, 2001 for a nominal value of EUR 100 million.




3.3 Securities issued to customers with specific



                                                                                                      31/12/2009                        31/12/2008


1. Security covered by specific fair value hedge:                                                             1.438.623                          599.303
      a) interest rate risk                                                                                   1.438.623                          599.303
      b) exchange risk                                                                                                    -                              -
      c) other risks                                                                                                      -                              -
2. Security covered by specific cash flow hedge:                                                                379.191                        1.240.840
      a) interest rate risk                                                                                               -                              -
      b) exchange risk                                                                                          379.191                        1.240.840
      c) other risks                                                                                                      -                              -




130
Section 4                   Financial liabilities held for trading - Item 40 -

4.1 Financial liabilities held for trading: product breakdown

                                                    31/12/20
                                                          09                                            31/12/2008
      Type of
      transaction/Amounts                              FV                                                  FV
                                  PV                                       FV *       PV                                      FV *
                                           L1         L2          L3                           L1         L2         L3
A. Cash liabilities
 1. Due to banks                       -        -             -        -          -        -        -            -        -          -
 2. Due to
 customers                             -        -             -        -          -        -        -            -        -          -
 3. Debt securities                    -        -             -        -          -        -        -            -        -          -
  3.1Bonds                             -        -             -        -          -        -        -            -        -          -
    3.1.1
    structured                         -        -             -        -    X              -        -            -        -    X
      3.1.2 Other                      -        -             -        -    X              -        -            -        -    X
     Other
  3.2securities                        -        -             -        -          -        -        -            -        -          -
    3.2.1
    Structured                         -        -             -        -    X              -        -            -        -    X
      3.2.2 Other                      -        -             -        -    X              -        -            -        -    X
                       Total A         -        -             -        -          -        -        -            -        -          -
B. Derivatives
 1. Financial
 derivatives                       X            -      20.206          -              X             -       24.978        -
  1.1Trading                       X            -      20.026          -    X         X             -       24.897        -    X
       Connected with the fair
  1.2value option                  X            -             -        -    X         X             -            -        -    X
  1.3Other                         X            -           180        -    X         X             -           81        -    X
 2. Credit
 derivatives                       X            -             -        -              X             -            -        -
  2.1Trading                       X            -             -        -    X         X             -            -        -    X
     Connected with the fair
  2.2value option                  X            -             -        -    X         X             -            -        -    X
  2.3Other                         X            -             -        -    X         X             -            -        -    X
                       Total B     X            -     20.206           -    X         X             -      24.978         -    X
                    Total (A+B)        -        -     20.206           -          -        -        -      24.978         -          -




4.2 Breakdown of item 40 "Financial liabilities held for trading": subordinated
     liabilities

There are no subordinated debt.



4.3 Details of item 40 "Financial liabilities held for trading": structured debts

There are no structured debts.




4.4      Financial liabilities (excluding "short selling") for trading: annual changes

There are no liabilities for cash.




                                                                                                                                   131
Section 5       Financial liabilities designated at fair value-

For the Bank there is no such case.




132
Section 6                 Hedging derivatives - Item 60 -

Hedging derivatives: breakdown by type of coverage and levels

                                 Fair    31/12/20                                  Fair    31/12/20
                                 Value         09                PV                Value         08                   PV


                            L1           L2         L3       31/12/2009       L1           L2            L3       31/12/2008

A. Financial
derivatives                       -       47.811         -      1.199.959           -       51.315            -      1.359.670
 1) Fair value                    -       37.797         -        937.948           -           34.105        -        950.215
 2) Cash flows                    -       10.014         -        262.011           -           17.210        -        409.455
 3) Foreign investments           -            -         -                -         -                -        -                -
B. Credit derivatives             -            -         -                -         -                -        -                -
 1) Fair value                    -            -         -                -         -                -        -                -
 2) Cash flows                    -            -         -                -         -                -        -                -
                  Total           -       47.811         -      1.199.959           -       51.315            -      1.359.670




     133
6.2 Hedging derivatives: breakdown by hedged portfolio and type of coverage

                                                                                    Fair Value                                                  Cash flow


                                                                         Specific                                                                                         Investments
Transaction / Type of cover                                                                                                                                                 Foreign
                                                                                                                             Generic        Specific        Generic
                                Interest rate risk Exchange rate risk   Credit risk        Price risk       Multiple risks


1. Financial assets available
                                                -                   -                  -                -               -      X                        -      X               X
available for sale
2. Loans                                        -                   -                  -            X                   -      X                        -      X               X
3. Financial assets held
                                       X                            -                  -            X                   -      X                        -      X               X
to maturity
4. Portfolio                                    x                   x                  x                x               X          37.564              X              -        X

5. Other transactions                           -                   -                  -                -               -              X                -             X                 -

Total assets                                    -                   -                  -                -               -          37.564               -             -                 -

1. Financial liabilities                     233                    -                  -            X                   -      X                   10.014      X               X

2. Portfolio                                    -                   -                  -                -               -               -               -             -        X

Total liabilities                            233                    -                  -                -               -          37.564          10.014             -                 -

1. Expected transactions               X                   X                X                       X           X              X                        -      X               X
2. Portfolio of assets and
                                       X                   X                X                       X           X              X               X                      -                 -
financial liabilities




134
Section 7 Fair value of financial liabilities in hedged-Item 70 -
For the Bank there is no such case.

Section 8                     Tax liabilities, Item 80 -

                                                         Fund
                                                      indirect taxes


Balance 31/12/2008                                               59.493
Accrual                                                          11.361
Uses to pay taxes                                               (59.230)
Other changes                                                          507
Balance
31/12/2009                                                      12.132



The table above represents the movement of the current tax liabilities occurred in the
performance. We emphasize that, as mentioned in the Management Report, the bank
adheres to the so-called "national fiscal consolidation" within the meaning of art. 117 et seq
DPR 917 of 22 December 1986 and subsequent amendments and additions, so all credits
and debits IRES were transferred to the parent company and are budgeted in other assets
and liabilities, and the movements of the table refer to IRAP.
The composition of and changes in deferred tax liabilities are exposed with the deferred tax
assets under section 13 of the activities of this note.


Section 9 Liabilities associated with assets held for sale-Item 90 -

For the Bank there is no such case.

Section 10               Other liabilities - Item 100 -

10.1 Other liabilities: breakdown


                                                                       31/12/2009        31/12/2008


Due to tax authorities for withholding to pay                                 (12.098)         (15.539)
Other liabilities fiscal consolidation                                        (20.908)                -
Fees and contributions related to personnel                                   (28.368)         (37.545)
Amounts available to customers                                                (45.364)         (34.599)
Items being processed                                                         (14.520)         (35.078)
Other creditors                                                               (50.618)          (9.492)
Currency ranges on trading portfolio transactions                             (64.695)         (98.840)
Items in transit with branches                                                 (3.193)          (9.613)
Impairment of issued sureties and commitments                                  (3.403)          (3.329)
Other                                                                         (44.341)         (51.025)
Total                                                                        (287.509)        (295.059)



Payables consist of the consolidated tax debt to the parent for income tax transferred to the
Company pursuant to the laws on "national fiscal consolidation."
It is recalled that the Bank, in 2008, has not exercised the option to tax consolidation
regime.


                                                                                                          135
 Section 11 Provision for employee - Page 110 -

 11.1 Provision for employee severance pay: annual changes


                                                           31/12/2009          31/12/2008


A. Opening balance                                                 36.616               39.162
B. Increases                                                        1.138                  2.756
  B.1 Accrual in the year                                                -                       -
  B.2 Other changes                                                 1.138                   2.756
C. Decreases                                                       (3.277)              (5.302)
  C.1 Severance payments                                           (2.967)                 (5.302)
  C.2 Other decreases                                                (310)                       -
D. Closing balance                                                 34.477               36.616



 The other increases / decrease in addition to contributions include:
  financial expenses for 1,028 thousand euro recorded in the income statement; 
     gains / losses accounted for 310 thousand euro, net of related tax effect in valuation
        reserves. 



 11.2 Other information
 Prospectus summary of the technical basis adopted for assessing the Fund's
 severance pay and bonuses



 31/12/2009

 Mortality Rate                RGS48 tables were used appropriately modified
                               on the basis of historic data business.

 Rate of turnover              It was used a special table made from appropriate
                               averaging of historical data business in recent years.

 Advances in TFR               The probability of anticipation has been set equal to 100%, while
                               the average amount required, calculated on the basis of the
                               standard
                               civil introduced by the Finance Act 2007, it was estimated
                               equal to 100%.

 Inflation rates               The inflationary scenario which is expected to testify in
                               Long-term use led to a rate of 2% annually.

 Discount rates                For the evaluation to 31/12/2009 was used a rate equal to
                               4.871% obtained as the average rate of the composite curve EUR A
                               AS OF DECEMBER 30, 2009: Bloomberg) Weighted
                               relationship between the amount paid / total amount to be
                               anticipated and
                               pay / advance for each maturity until the extinction of
                               population considered.




 136
31/12/2008

Mortality Rate
                   Tables were used appropriately Istat 1999 and RGS48
                   modified on the basis of historical data
                   business
Rate of turnover
                   Table obtained by appropriate averaging of historical data business
                                 years          accou                  output
                   of    last    ,      held    nt      banks of       s       provided
                   update from the Business Plan approved.
Advances in TFR
                   The probability of anticipation, determined on the basis of data
                   business historians, stands between 1% and 4.2% while the amount
                   required average is between 40% and 70%.
Inflation rates
                   The inflationary scenario which is expected to testify in
                   long-term use has led to rates between 1.7% and 2%.
Discount rates
                   For the evaluation to 31/12/2008 was used curve
                   Euro Swap rates, given the turmoil
                   financial risk of default of corporate and government bonds, has
                   considered appropriate to add the Euro swap curve,
                   properly "bootstrappata," the Credit Spread Curve
                   "Cash_Govtof_Italy_31122008"




    137
Section 12 Provisions for risks and charges - Page 120 -

12.1 Provisions for risks and charges: breakdown


                                 Items / Values                        31/12/2009                 31/12/2008

1. Company pension fund                                                                   -                        -
2. Other provisions for risks and charges                                        18.169                       19.121
  2.1 legal disputes                                                              7.829                        6.643
2.2 Payroll costs                                                                 2.634                        2.387
  2.3 other                                                                       7.706                       10.091
Total                                                                            18.169                       19.121




12.2 Provisions for risks and charges: annual changes


                                                    Pensions       Other provisions                   Total


A. Opening balance                                             -                  19.121                       19.121
B. Increases                                                   -                      7.061                     7.061
B.1 Accrual in the year                                        -                       6.210                    6.210
B.2 Changes due to the passage of time                         -                         498                      498
B.3 Changes due to modifications in discount rate              -                         353                      353
B.4 Other increases                                            -                              -                        -
B.5 Company aggregation transactions                           -                              -                        -
C. Decreases                                                   -                  (8.013)                      (8.013)
C.1 Changes in the year                                        -                      (5.778)                  (5.778)
C.2 Changes due to modifications in discount rate              -                              -                        -
C.3 Other decreases                                            -                      (2.235)                  (2.235)
C.5 Company aggregation transactions                           -                              -                        -
D. Closing balance                                             -                  18.169                       18.169




12.3 Company pension funds to defined benefit

With reference to the item company pension funds, shows that the pension funds of staff
"section defined contribution" and "Section defined benefit" have been outsourced to the
insurance fund in 2004 called "Pension Fund for the Staff of the People's Bank Ancona and
its subsidiaries. " The fund is registered, from 1 October 2009, the Register of Legal Entities
- Pension funds, held by the Commission for Supervision of Pension Funds under article 4,
paragraph 1, letter b) of Legislative Decree no. No 252/2005, with the number 92. The same
fund is also writing to register with the number of pension funds 1639. The Bank provides,
with reference to "Section defined benefit" through annual payments made to any pension
fund, the balance of technical and actuarial verified annually by the fund valuation
prepared by external actuary.




138
Other provisions for risks and charges

                                           Increases                            Decreases

                                                               Other               Other
                             31/12/2008        Accruals      changes   Uses      changes 31/12/2009


Legal disputes                     6.643           2.758        384     1.170        786       7.829

Payroll costs                      2.387           1.770          15    1.307        230       2.634

Other provisions                  10.091           1.682        452     3.300       1.219      7.706
   of which for bankruptcy
   revocatory                      5.127               630      303     1.611        333       4.115
Total                             19.121           6.210        851    5.778       2.235      18.169




Provisions for liabilities and charges - additional information
The Banca Popolare di Ancona is involved in several legal proceedings of various kinds and
legal process arising from the ordinary course of business. While it is not possible to predict
with certainty the final outcome, it is considered that any adverse outcome of these
proceedings would not, individually or together, a significant negative effect on financial and
economic situation of the Bank.
At December 31, 2009 are quantifiable contingent liabilities, the same as defined in IAS 37,
for approximately EUR 1.5 million, consisting primarily of 500,000 euro for complaints, and
about 800 000 euro for other litigation.




    139
Section 14 Heritage Business
            - Items 130, 150, 160, 170, 180, 190 and 200 -
14.2 15.1 “Share capital” and “Treasury shares”: breakdown


                                                           31/12/2009          31/12/2008

Number of ORDINARY SHARES                                      24.468.716          24.468.716
nominal Euro each                                                       5,00                5,00

Number of treasury shares                                                  -                   -
nominal Euro each                                                          -                   -




Capital 14.2 - Number of shares: annual changes

In 2009, there were no changes in share capital.



14.3 Share capital: Other information
The share capital is composed by 24,468,716 ordinary shares with a nominal 5 euro each.
In no year has been no movement on the capital.

Rights, preferences and restrictions on shares

On the actions of the bank there are no privileges or liens and, with regard to the
constraints on dividend distributions and repayment of capital, see the prospectus
summary of shareholders' equity according to the different origin and with the indication of
the possibility of using and for distribution within the meaning of art. 2427 paragraph 1, no
7 reported a cc at the end of the next item.



14.4 Retained earnings: more info
The reserves amount to 236,548 thousand euro and are as follows:
   Legal reserve 77,059 thousand euro;
   Reserve of 48,632 thousand euro;
   Depreciation reserve transfer prior FTA 7,799 thousand euro;
   Other:
        reserve utility rate of 108,843 thousand euro, the increase of 101,138 euro
          corresponds to the decisions of the shareholders' meeting last year, when an
          apportionment of profits,
        Special Reserve L.218/90 art.7 c.3 1,392 thousand euro, 
       reserve TFR complementary pension reform before 288 thousand euro, 
       capital gains reserve application OPI1 3,268 thousand euro 
        reserves set aside to launch application OPI1 -11,301 thousand euro 
        Melting scrap of 554 thousand euro, 
        Other reserves of 14 thousand euro. 




140
Composition of shareholders’ equity based on origin, availability, and possibility of
distribution to 31/12/2009

                                                                                                                      Summary of use carried out in
                                                                 POSSIBILITY 'OF   SHARE                 TAX             three previous years
                                                  AMOUNT
                                                                                                   CONSTRAINT
                                                                      USE          AVAILABLE               (1)                         for other reasons
                                                                                                                      to cover                (4)
                                                                                                                       losses                 (5)
A) CAPITAL
Share capital                                        122.344            -                      -          10.424         NO                   NO


B) Equity reserves
Share premium reserve                                483.554          ABC              483.554                    -      NO                   NO


C) Retained earnings reserves
Legal reserve                                         77.059          ABC               52.590                    -      NO                   NO
Statutory reserve                                     48.632          ABC               48.632            39.432         NO                   (3)
-Extraordinary reserve                               101.138          ABC              101.138                    -      NO                   NO
Reserve-ex D. Lgs. N.218/1990                          1.392           AB                1.392             1.392         NO                   NO
Reserve-ex D. Lgs. N.124 / 1994                            14         ABC                      -                 14      NO                   NO
-Merger surplus reserve                                    554        ABC                  554                    -      NO                   NO
-Reserve from OPI application capital gain             3.268          ABC                3.268                    -      NO                   NO
Reserve from derecognition OPI appl goodwill         (11.301)         ABC              (11.301)                   -      NO                   NO
Taxed profit reserve                                   7.705          ABC                7.705                    -      NO                   NO
Reserves fromreversal of past FTA depreciation         7.799          ABC                7.799                    -      NO                   NO
                                                             -                                 -                  -
D) OTHER RESERVES                                            -                                 -                  -
Reserve from held for sale financial instrument
measurement                                                31           -                      -                  -      NO                   NO
Reserve from IAS measurement                               300          -                      -                  -      NO                   NO
Reserve from fair value measurement for cost          25.047           AB               25.047            25.047         NO                   (2)
Reserve from Cash Flow Hedging measurement              (486)           -                      -                  -      NO                   NO
Employee benefit reserve as per Legislative
Decree N.252/2005                                          289          -                      -                  -      NO                   NO



TOTAL                                              867.338                           720.378             76.309

Profit for the year-2009                              12.148            -                      -                  -                -                       -

TOTAL EQUITY (6)                                   879.487                           720.378             76.309


Key:
A: a: for capital increase
B: to cover losses
C: c: for distribution to shareholders


Notes:
(1) Amount of tax suspension.
(2) In 2006 was used to 39.472 million euro for the share capital increase.
(3) In 2006 was used to 17.151 million euro in order to defray part of the negative reserves, which have originated
    in the transition to international accounting standards.
(4) In 2006, in order to cover the negative reserves, which have originated in the transition to IFRS, were reset
    following reserves for a total of 16.868 million euro: Statutory reserve (IAS 84 000 euro), Reserve az purchase
    shares (3.184 million euro) profit rate reserve (2,321 thousand euro), remains of former Bank Merger Tiburtina
    (563,000 euro), Advanced Melting former People's Bank of Naples ( 98 000 euro), former National Bank merger
    surplus Monforte (2.412 million euro), DL 153/99 Article 22 (L. Ciampi) (8,206,000 euro).
(5) During 2006, were fully used to increase the capital the following reservations for a total of 19.698 million
    euro: Law 576/75 valuation reserve (166,000 euro), Law 72/83 Valuation reserve (9,816,000 euro), Law
    413/91 Valuation reserve (9,716,000 euro).
(6) The share of equity bound under Article. 109, paragraph 4, letter b) DPR 917/86 is equal to 96 000 euro.

14.5 Equity instruments: composition and annual changes
There are no equity instruments.

14.6 OTHER INFORMATION

For the Bank should not be given any information as prescribed by IAS 1, paragraph 136A,
137 and 80A.

                                                                                                                                                      141
OTHER INFORMATION

1. Guarantees and commitments


                                        Transaction                 31/12/2009         31/12/2008

1) Financial guarantees                                                    25.311              27.789
  a) Banks                                                                 11.745              12.068
  b) Customers                                                             13.566              15.721
2) Commercial guarantees                                                  276.247             338.215
  a) Banks                                                                  3.531               8.643
  b) Customers                                                            272.716             329.572
3) Irrevocable commitments to payout funds                                259.454             342.564
  a) Banks                                                                 10.227              22.525
      i) certain to be called                                              10.227              22.525
      ii) not certain to be called on                                              -                -
  b) Customers                                                            249.227             320.039
      i) certain to be called                                                    776            1.341
      ii) not certain to be called on                                     248.451             318.698
4) Commitments underlying credit derivatives: sales of protection                  -                -
5) Assets as collateral for third party bonds                                      -                -
6) Other commitments                                                             298                -
Total                                                                     561.310            708.568



The credit risk associated with guarantees issued and commitments is evaluated in a
similar way to cash loans. The part is rated doubtful exposure under "Other liabilities".
The share of commitment to the Interbank Deposit Protection Fund was reclassified from
"Other commitments" to "guarantees given to financial, point a) Banks."



2. Assets pledged as collateral for own liabilities and commitments

On its liabilities and commitments are lacking as collateral.



3. Operating leases
There are no transactions of this type.




142
4. MANAGEMENT AND BROKERAGE ON BEHALF THIRD PARTIES



                                               Type of service                             31/12/2009


1. Execution of order for customers
  a) Purchases                                                                                          -
    1. Regulated                                                                                        -
    2. Unregulated                                                                                      -
  b) Sales                                                                                              -
    1. Regulated                                                                                        -
    2. Unregulated                                                                                      -
2. Portfolio management:                                                                                -
  a) Individual                                                                                         -
  b) collective                                                                                         -
3. Custody and administration of securities                                                     8.103.906
  third-party securities held on deposit: when acting as custodian bank (excluding asset
  management)                                                                                           -
    1. Securities issued by the reporting bank                                                          -
    2. other securities                                                                                 -
  other third-party securities held on deposit (excluding asset management): other              4.010.823
    1. Securities issued by the reporting bank                                                          -
    2. other securities                                                                         4.010.823
  third-party securities deposited with third parties                                           3.943.717
  portfolio securities deposited with third parties                                               149.366
4) Other operations                                                                             2.034.746
Total                                                                                          10.138.652




Under "other transactions" are given the volumes related to the activities of collecting orders
for securities trading.




     143
Part C – Notes to the Income statement
                             SECTION 1 – Interests – Items
Section 1                                      10 and 20-

1.1 Interest income and similar revenues


                          Items/Technical forms                 Debt securities       Loans            Other transactions       31/12/2009       31/12/2008


1
.   Financial assets held for trading                                             -                -                        -                -                -
2
.   Financial assets available for sale                                      311                   -                        -            311              355
3
.   Financial assets held to maturity                                             -                -                        -                -                -
4
.   Due from banks                                                                -           29.459                        -          29.459          64.710
5
.   Loans to customers                                                       332            355.302                     11            355.645         518.203
6
.   Financial assets designated at fair value                                     -                -                        -                -                -
7
.   Hedging derivatives                                               X                 X                                   -                -                -
8
.   Other assets                                                       x                x                              40                  40             106
                                                        Total                643            384.761                    51             385.455         583.374




Interest on non-performing loans amounted to 28,931 thousand euro.
The item "Loans and advances to customers" include the overdraft charges totaling 14,600
thousand euro. To make time from 1 July 2009, following the introduction of the new
commission system, such revenue has become a key component of the Commission made
funds listed among the "Fee and commission income - other services.
For further information please refer to the above in the section "Accounting policies
- Section 4 other aspects - Commission for making available funds (former Commission
Overdraft).




1.3 Interest and other income: other information 1.3.1
Interest income on financial assets in



                                                Item/Amounts                                                31/12/2009                    31/12/2008


Interest income on financial assets in foreign currency                                                                         622                    2.583




1.3.2 Interest income on finance leases

There are no transactions of this type.




144
1.4 Interest payable and similar charges: breakdown

                   Items/Technical                           Paya                                   Other
                   forms                                      bles             Equity         transactions         31/12/2009            31/12/2008


1. Due to central banks                                                  -        X                            -                   -                   -
2. Due to banks                                                      (607)        X                            -               (607)            (9.045)
3. Due to customers                                             (28.538)          X                          (8)            (28.546)           (78.483)
4. Securities issued                                          X                    (91.222)                    -            (91.222)          (112.310)
5. Financial liabilities held for trading                                -                -                    -                   -           (35.400)
   Financial liabilities designated at
6. fair value                                                            -                -                    -                   -                   -
   Other liabilities
7. and reserves                                               X                   X                     (22)                    (22)                (17)
8. Hedging derivatives                                        X                   X                 (16.284)                (16.284)           (15.962)
                                                 Total         (29.145)            (91.222)         (16.314)            (136.681)             (251.217)




                         an charge
1.5 Interest liabilities d  s                                                similar: differences related to the operations
    hedge


                                            Item/Amounts                                            31/12/2009                         31/12/2008


A. Positive differentials related to hedging transactions:                                                          42.838                       22.270
B. Negative differentials related to hedging
transactions:                                                                                                      (59.122)                     (38.232)
C. Balance (A-B)                                                                                                   (16.284)                     (15.962)




1.6 Interest payable and similar charges: other information
1.6.1 Interest expense on foreign currency liabilities



                                            Item/Amounts                                         31/12/2009                            31/12/2008


1.6.1 Interest expense on foreign currency liabilities                                                              (711)                      (37.445)




1.6.2 Interest expense on operations                                                              finance lease



                                            Item/Amounts                                         31/12/2009                            31/12/2008


1.6.2 Interest expense on the liability under finance leases                                                          (8)                             (50)




      145
Section 2                  SECTION 2 - Fees and commission - Line items 40 and 50-

2.1 Fee and commission income: breakdown



                                 Type of service/Amounts           31/12/2009         31/12/2008


a) guarantees given                                                         3.119                  3.450

b) credit derivatives                                                             -                    -

c) management, dealing and consulting services:                            36.449              41.778

  1. trading in financial instruments                                             -                    -

  2. trading of foreign exchange                                            1.003                  1.184

  3. portfolio management                                                         -                    -

      3.1.    individual                                                          -                    -

      3.2.    collective                                                          -                    -

  4. Custody and administration of securities                                   520                 653

  5. Custodian bank                                                               -                    -

  6. placement of securities                                               11.782              11.792

  receiving and transmitting orders                                         2.783                  2.343

  8. consultancy                                                                  3                    3

      8.1     with regards to investment                                          3                    3

      in capital structure                                                        -                    -

  distribution of services to third parties                                20.358              25.803

      9.1. Portfolio management                                             2.339                  4.076

             9.1.1. individual                                              2.339                  4.076

             9.1.2. collective                                                    -                    -

      9.2 insurance products                                                5.386                  5.979

      9.3 other products                                                   12.633              15.748

d) collection and payment services                                         18.259              19.897

e) servicing services for securitization transactions                             -                    -

f) factoring transaction services                                                 -                    -

g) tax collection services                                                        -                    -

h) management of multilateral exchange rate systems                               -                    -

management of current accounts                                             27.594              29.570

j) other services                                                          19.039              16.707

                                                           Total          104.460            111.402




"Other services" following the introduction of the new commission system, including the
Commission made funds from 1 July 2009 for a total of 10,761 thousand euro.
For further information please refer to the above in the section "Accounting policies
- Section 4 other aspects - Commission for making available funds (former Commission
Overdraft).




146
The details of the fees on other services obtained is shown in the table below.


                      Detail of "other services" fees               31/12/2009             31/12/2008


- Loans, mortgages and overdraft fees                                       17.216                 13.125
- Foreign                                                                    1.216                  1.180
- cashier’s checks                                                                24                    858
- other                                                                          584                1.543
Total                                                                      19.039                 16.707




2.2 Fee and commission income distribution channels of products and services

The products and services are wholly located in its branches.



2.3 Fee and commission expense: breakdown



                                  Services/Amounts                   31/12/2009              31/12/2008


a) guarantees received                                                              (35)                      (60)
b) credit derivatives                                                                  -                         -
c) management, dealing and consulting services:                                   (985)                   (453)
     1. trading in financial instruments                                          (924)                   (435)
     2. trading of foreign exchange                                                    -                         -
     3. portfolio management:                                                          -                         -
          3.1 owned                                                                    -                         -
          3.2. delegated to third parties                                              -                         -
     4. custody and administration of securities                                    (61)                      (18)
     5. placement of financial instruments                                             -                         -
     6. door selling of securities, products and services                              -                         -
d) collection and payment services                                               (4.181)                 (5.001)
e) other services                                                                (1.851)                 (2.576)
                                                            Total             (7.052)                   (8.090)




     147
Section 3                     Dividends and similar income - Item 70 -

3.1 Dividend and similar income: breakdown


                                                                                           31/12/2009                                           31/12/2008

                          Items / Income
                                                                                                   Income from                                                Income from
                                                                              Dividends                                           Dividends
                                                                                                      UCITS                                                      UCITS

A. Financial assets held for trading                                                           7                         -                            -                           -
B. Financial assets available for sale                                                        23                         -                        348                             -
C. Financial assets designated at fair value                                                   -                         -                            -                           -
D. Investments in associates and companies subject to
joint control                                                                             16.407             X                                10.634                   X
Total                                                                                  16.437                            -                   10.982                               -




Section 4                     Net income from trading - Item 80 -

4.1 The net result of trading:


                                                                               Profit from                            Losses on
                                                         Capital gains                             Losses                                 Net profit (loss)
           Transactions/Income components                                       trading                                trading                                       31/12/2008
                                                              (A)                                    (C)                                   [(A+B)-(C+D)]
                                                                                   (B)                                   (D)

1. Financial assets held for trading                                8.074                 67.102            (1.765)          (35.236)                     38.175           (356.841)
  1.1Debt securities                                                     68                  455                  -                (10)                       513                 461
  1.2Equity securities                                                    -                    4                  -                (10)                        (6)                 (5)
  1.3Quotas of UCITS                                                      -                    -                  -                   -                          -                    -
  1.4Loans                                                                -                    -                  -                   -                          -                    -
  1.5Other                                                          8.006                 66.643            (1.765)          (35.216)                     37.668           (357.297)
2. Financial liabilities held for trading                                 -                    -                  -                   -                          -                    -
  2.1Debt securities                                                      -                    -                  -                   -                          -                    -

  2.2Payables                                                             -                    -                  -                   -                          -
  2.2Other                                                                -                    -                  -                   -                          -                    -
3. Other financial assets and liabilities: differences
                                                               X                      X                X                     X                                   -                (1)
Exchange rate
4. Derivatives                                                      3.272                 35.141            (5.548)          (34.191)                 (37.265)              359.665
  4.1Financial derivatives:                                         3.272                 35.141            (5.548)          (34.191)                  (37.265)             359.665
    - On debt securities and interest rates                         3.087                 35.083            (5.394)          (34.152)                     (1.376)             1.572
    - On equity securities and stock market indices                  185                      58              (154)                (39)                     50                 (110)
    - On currencies and gold                                   X                      X                 X                    X                         (35.939)             358.203
    - Other                                                               -                    -                  -                   -                          -                    -
  4.2Credit derivatives                                                   -                    -                  -                   -                          -                    -
Total                                                              11.346             102.243               (7.313)          (69.427)                         910             2.823




148
Section 5                                           Net income from hedging - Item 90 -

5.1 The net result of hedge accounting: breakdown


                        Income component/Amount                    31/12/2009        31/12/2008


A. Income from:
A.1 Fair value hedging derivatives                                         11.596            16.826
A.2 Financial assets with fair value hedges                                 5.626            36.981
A.3 Financial liabilities with fair value hedges                            2.986                  -
A.4 Cash-flow hedge financial                                                    -                 -
A.5 Foreign currency assets and liabilities                                      -                 -
Total income from hedging activities (A)                                   20.208            53.807
B. Expenses from:
B.1 Fair value hedge derivatives                                           (6.659)          (34.475)
B.2 Financial assets with fair value hedges)                               (7.641)                 -
B.3 Financial liabilities with fair value hedges)                          (6.924)          (18.288)
B.4 Cash-flow hedge financial                                                    -                 -
B.5 Foreign currency assets and liabilities                                      -                 -
Total expenses from hedging activities (B)                                (21.224)          (52.763)
C. Fair value adjustments in hedge accounting (A-B)                        (1.016)            1.044




     149
Section 6               Gains (losses) on sale / repurchase - Page 100 -

6.1 Profit (loss) on sale / repurchase composition


                                                                          31/12/2009                                                31/12/2008

                            Items/Income items
                                                           Profit           Losses         Net profit (loss)       Profit             Losses           Net profit (loss)


Financial assets
1. Due from banks                                                     -                -                       -                -                  -                       -
2. Loans to customers                                                 -                -                       -              240              (844)                 (604)
3. Financial assets available for sale                              367                -                 367                  170                  -                  170

      3.1 Debt securities                                             -                -                       -                -                  -                       -
      3.2 Equity securities                                         367                -                 367                  170                  -                  170
      3.3 UCITS amount                                                -                -                       -                -                  -                       -
      3.4 Loans                                                       -                -                       -                -                  -                       -
4. Financial assets held to maturity                                  -                -                       -                -                  -                       -

Total assets                                                        367                -                367                  410               (844)                (434)
Financial liabilities
1. Due to banks                                                       -                -                       -                -                  -                       -
2. Due to customers                                                   -                -                       -                -                  -                       -
3. Titles movement                                                  262         (1.238)                (976)                1.013               (18)                  995
Total liabilities                                                   262         (1.238)                (976)                1.013               (18)                  995




150
Section 8                                 The adjustments to / recoveries on impairment - Page 130 -

Net losses/recoveries on impairment of loans: breakdown


                                                                   Losses                                                                  Recoveries


  Transactions /                                Specific                                                                                                                                               Total           Total
                                                                                                                   Specific                                               Portfolio
        Income                                                                                                                                                                                     31/12/2009       31/12/2008
                                                                                  Portfolio
                                   Write-offs              Other
                                                                                                                                       Other                                           Other
                                                                                                     From interest            reinstatements              From interest       reinstatements

A. Due from banks                                -                      -                     -                        -                            -                     -                    -                -              155
  Loans                                          -                      -                     -                        -                            -                     -                    -                -              155
  Debt securities                                -                      -                     -                        -                            -                     -                    -                -                 -
B. Loans to customers                    (20.318)            (108.961)                (9.133)                     4.583                     18.084                        -                    -        (115.745)         (94.259)
  Loans                                  (20.318)            (108.961)                (9.133)                     4.583                     18.084                        -                    -        (115.745)         (94.259)
  Debt securities                                -                      -                     -                        -                            -                     -                    -                -                 -
C. Total                                 (20.318)            (108.961)                (9.133)                     4.583                    18.084                         -                    -        (115.745)        (94.104)




8.2 Net adjustments for impairment of financial assets available for sale:

                                                                       Losses)                                     Recoveries                 (+)

                                                                       Specific                                             Specific
        Transactions/Income components                                                                                                                             31/12/2009             31/12/2008
                                                                                                                                                  other
                                                      Write-offs                    Other                   from interest                reinstatements


A. Debt securities                                                          -                        -                           -                          -                         -                 -

B. Equity securities                                                        -                     (249) X                            X                                         (249)                    -

C. Quotas in UCITS                                                          -                        - X                                                    -                         -                 -

D. Loans to banks                                                           -                        -                           -                          -                         -                 -

E. Loans to customers                                                       -                        -                           -                          -                         -                 -

Total                                                                       -                 (249)                              -                          -                  (249)                    -




                                                                                                                                                                                                                                 151
8.3 Net adjustments for impairment of financial assets held to maturity: breakdown

There are no transactions of this type.



8.4 Net adjustments for impairment of other financial transactions: breakdown


                                                 Losses             (-)                                                Recoveries       (+)

   Transactions/Income
                                           Specific                                                       Specific                                  Portfolio
   components                                                                                                                                                                  31/12/2009       31/12/2008
                                                                          Portfolio
                                                                                                                        Other                                     Other
                              Write-offs                  Other                           From interest        reinstatements       From interest        reinstatements


A. Guarantees given                          -                    (476)               -                    -                594                     -                     60            178              925

B. Credit derivatives                        -                        -               -                    -                    -                   -                      -                -                -

C. Commitments to pay funds                  -                        -         (253)                      -                    -                   -                      -           (253)                 -

D. Other transactions                        -                        -               -                    -                    -                   -                      -                -                -

E. Total                                     -                    (476)         (253)                      -                594                      -                    60            (75)             925




152
Section 9                      Administrative expenses - Page 150 -

9.1 Personnel expenses: breakdown


                                         Type of expense/Amounts            31/12/2009             31/12/2008


1) Employees                                                                       (132.821)              (142.552)
  a) wages and salaries                                                              (90.818)               (95.199)
  b) social security charges                                                         (24.992)               (26.536)
  c) employee termination indemnities                                                          -                 (125)
  d) pension expenses                                                                          -                      -
  e) provision to employee termination indemnities                                       (1.025)                (2.793)
  f) Provision for treatment of retirement payments and the like:                              -                      -
    - defined contribution                                                                     -                      -
    - defined benefit                                                                          -                      -
  g) payments to external supplementary pension schemes:                             (10.284)               (10.981)
    - defined contribution                                                           (10.134)               (10.351)
    - defined benefit                                                                     (150)                  (630)
  h) costs from equity payments                                                                -                      -

  - other employee benefits                                                              (5.702)                (6.918)
2) Other personnel                                                                   (4.924)                (5.169)
3) Directors                                                                         (1.398)                (1.302)
4) Retired personnel                                                                           -                       -
5) Recovery of expenses for employees seconded to other companies                    10.722                     9.766
6) Reimbursements to employees at the company posted third                           (1.419)                (1.530)
                                                                    Total          (129.840)              (140.787)




Point 3) Directors also includes the remuneration of the Board.



9.2 Average number of employees per category


                                                                            31/12/2009             31/12/2008


1) EMPLOYEES                                                                         1.701                  1.764
     a) executives                                                                          22                     26
     b) total middle managers                                                              694                   693
     c. Remaining staff                                                                    985              1.045
2) OTHER EMPLOYEES                                                                        103                      90



The average number of employees includes staff seconded to other companies in the
business of the company, and excludes employees seconded to other companies. The item
includes other staff, administrators (No.15), mayors (No.3) and workers with temporary
contracts (n.85).


9.3 Company pension funds to defined benefit: total costs

The pension funds for employees (defined contribution and defined benefit plans) have been
"outsourced" in 2004 to "the Pension Fund for the staff of the Banca Popolare di Ancona and
its subsidiaries." With regard to the defined benefit section, the Bank took steps to cover its
deficit, based on the actuarial report to 31/12/2009, for a total of 150 thousand euro.




     153
9.4 Other benefits to employees


                                                              31/12/2009         31/12/2008


Incentives for early retirement and income support                      (654)             (1.709)
Expenses for meal vouchers                                            (2.082)             (2.126)
Insurance expenses                                                    (1.967)             (1.627)
Expenses for attendance at training courses                                 37                (232)
Recovery of personnel training from previous years                         286                   -
Other expesnses                                                       (1.322)             (1.224)
Total                                                                 (5.702)             (6.918)



There are no cost items as set out in IAS 19, paragraphs 131, 141 and 142.




154
9.5 Other administrative expenses: breakdown


                        Type of service/Amounts                    31/12/2009           31/12/2008


 A. Other administrative expenses                                         (93.859)            (100.503)
 Rent payable                                                             (10.221)              (9.969)
 Professional services and advice                                          (3.813)              (3.744)
 Lease fees for hardware, software and other assets                        (1.448)                (766)
 Hardware, software and other assets maintenance                           (1.285)              (1.256)
 Property management                                                       (5.740)              (5.913)
 Property and system management                                            (2.632)              (3.329)
 Counting, transport and management of cash and cash equivalents           (1.950)              (1.721)
 Membership fees                                                                (875)             (522)
 Information and surveys                                                   (2.066)              (1.541)
 Magazines and books                                                             (76)                (82)
 Post                                                                      (3.899)              (3.356)
 Insurance premiums                                                        (2.903)              (3.510)
 Advertising and PR                                                        (1.677)              (3.762)
 Agency costs                                                                   (106)             (200)
 Telephone and data transmission                                           (3.559)              (4.658)
 Outsourcing services                                                      (4.374)              (4.433)
 Travel                                                                    (1.911)              (2.241)
 Service fees from Group companies                                        (37.442)             (35.603)
 Expenses for debt collection                                              (3.198)              (2.199)
 Printing, stationery and consumables                                           (827)           (1.262)
 Transport and removals                                                         (833)             (923)
 Security                                                                  (2.998)              (3.256)
 UBI aggregation transaction expenses                                               -           (6.192)
 Other expenses                                                                  (26)                (65)
 B. Indirect taxes                                                        (19.597)             (19.831)
 Indirect taxes and taxes                                                  (1.254)                (703)
 Revenue stamps                                                           (14.594)             (15.084)
 Property taxes                                                                 (440)             (419)
 Other taxes                                                               (3.309)              (3.625)
 Total                                                                   (113.456)            (120.334)




With effect from 1st January 2009 was repealed exemption from VAT provided for by Art. 6
Law 133/1999 for the supply of services to domestic banking groups. The impact on the
income arising from application of the tax amounts to about 2 million euro.




                                                                                                        155
Section 10 Net provisions for risks and charges
             - Item 160 -
10.2        Net provisions for risks and charges


                                                                                                                                                    Accruals
                                                                                              Accruals             Reallocations
                                                                                                                                                    net

Legal disputes                                                                                    (3.142)                           786                (2.356)
Payroll costs                                                                                          (279)                        230                      (49)
Other provisions                                                                                  (2.134)                        1.219                   (915)
        of which for bankruptcy rescindment                                                            (933)                        333                  (599)
Total                                                                                            (5.555)                         2.235                 (3.320)




Section 11 adjustments of the value of tangible assets - Item 170 -
Net adjustments to/recoveries on property, plant and equipment


                                              Amortization                 Losses
             Assets/Income items                  (a)                for impairment (b)   Recoveries           (c ) Net income (a + b +c)       31/12/2008



A. Property, plant and equipment
  A.1 Owned                                             (10.722)                          -                        -               (10.722)              (10.558)
        – used in the business                          (10.222)                          -                        -               (10.222)              (10.035)

        - held for investment                                (500)                        -                        -                   (500)                 (523)
  A.2 Acquired under finance leases                           (36)                        -                        -                    (36)                 (210)
        – used in the business                                (36)                        -                        -                    (36)                 (210)
        - held for investment                                    -                        -                        -                        -                       -
Total                                                   (10.758)                          -                        -               (10.758)             (10.768)




156
Section 13 Other net income - Page 190 -

13.1 Other operating expense: breakdown


                   Breakdown of other operating expenses                 31/12/2009            31/12/2008


Leasing fees                                                                             (5)                 (16)
Charges for bank service contracts with public agencies                                (355)                (288)
Charges for transfers with predated value date                                         (480)           (2.418)
Depreciation of leasehold improvements                                            (1.815)              (2.029)
Other                                                                             (9.680)              (6.661)
Total                                                                            (12.335)             (11.412)




13.2 Other operating income: breakdown


                           Other operating income                        31/12/2009            31/12/2008


Rental income from properties                                                          192                   310
Recovery of stamp duty and substitute tax                                         16.758               17.579
Recovery of expenses and other income on deposits and current accounts                2.739             2.861
Income from transfers with predate value date                                          370              2.121
Recovery of costs from Group companies                                                1.506             6.180
Other income and expense recovery                                                     6.219             5.037
Total                                                                            27.784                34.088




                        Imbalance charges / income                               15.449                22.676




In 2008, the "Recovery of costs by companies of the group" included:
 about 234 thousand euro for recovery, banks migrated to the target system, the charges
    pertaining to the activities of support and training;
 approximately EUR 5.5 million for services provided to the Group by staff at the Bank of
    Jesi.




     157
Section 14                Gains (losses) on investments - Item 210 -


                           Income items/Amounts                     31/12/2009              31/12/2008

A. Income                                                                   17.044                  73.577
  1. revaluations                                                                   -                      -
  2. Profit on disposal                                                     17.044                  73.577
  3. Write-backs                                                                    -                      -
  4. Other income                                                                   -                      -
B. Charges                                                                          -                      -
  1. - WRITEDOWNS                                                                   -                      -
  2. Write-downs for impairment                                                     -                      -
     Losses from
  3. disposal                                                                       -                      -
  4. Other charges                                                                  -                      -
Net profit (loss)                                                           17.044                 73.577



The amount relates to profit from the sale of stake in insurance for UBI Pramerica in 2009
and for 2008.


Section 17 Income (loss) on disposal of investments - Item 240 -

17.1.Profit (losses) on disposal of investments


                           Income
                           items/Amounts                             31/12/2009              31/12/2008


A. Properties                                                                           -                  24
  Profit on disposal                                                                    -                  37
  - loss from
  disposals                                                                             -                 (13)
B. Other assets                                                                    33                     (46)
  Profit on disposal                                                               37                          8
  - loss from
  disposals                                                                        (4)                    (54)
Net profit (loss)                                                                  33                     (22)




Section 18                 taxes on Income for the              period                      operations
                          - ITEM 260 -
                                   18.1 Income tax from continuing operations: breakdown


                                 Item/Amount                         31/12/2009              31/12/2008


1. Current taxes(-)                                                         (30.345)                (60.643)
2. Variation of current taxes from previous years (+/ -)                                -                      2
3. Reduction of current taxes for the year(+)                                           -                      -
4. Changes in deferred tax assets (+/-)                                      21.680                  15.673
5. Variation of deferred taxes (+/-)                                             (173)                   3.227
6. Taxes accruing for the year (-) (-1+/-2+3+/-4+/-5)                        (8.838)                (41.741)




158
For more detailed information please refer to the Management Report - Other information -
Tax Aspects.

18.2 Reconciliation of theoretical tax and actual tax burden

                                                                                          IRES
                                                                                   (CORPORAT
                                                                    Taxable          E INCOME
                                      IRES (CORPORATE INCOME TAX)   income                TAX)            %


Theoretical IRES taxes                                                 20.987                (5.771)      27,50%
Permanent increase variations
  - costs for non-instrumental real estate                                    18                   (5)     0,02%
  - non-deductible interest expense                                      5.398               (1.484)       7,07%
  - non-deductible vehicle expenses                                        373                   (103)     0,49%
  - non-deductible asset impairment and capital losses                     263                    (72)     0,34%
  - non-deductible multi-year expenses                                     604                   (166)     0,79%
  - other non-deductible expenses                                        2.727                   (750)     3,57%
  - other changes                                                              -                  (70)     0,33%
  - adjustment to deferred taxes                                               -                 (407)     1,94%
Permanent decrease variations
  - undeducted expenses related to prior periods                         (565)                    155     (0,74%)
  - capital gains                                                     (16.630)                   4.573   (21,79%)
  - untaxed dividends                                                 (15.608)                   4.292   (20,45%)
  - other decreases                                                     (2.011)                   553     (2,64%)
  - other changes                                                              -                 2.028    (9,67%)
  - Adjustment deferred tax assets                                             -                  175     (0,83%)
IRES actual tax burden                                                 (4.444)                   2.948   (14,05%)
                                                                                        IRAP
                                                                    Taxable        (REGIONAL
                                      IRAP (REGIONAL TAX)           income              TAX)              %


Theoretical IRAP taxes                                                 20.987                (1.012)       4,82%
Permanent increase variations
  - non-deductible interest expenses                                     5.467                   (264)     1,26%
  - value adjustments on loans non-deductible for IRAP purposes       116.069                (5.595)      26,66%
  - personnel expenses non-deductible for IRAP purposes               129.840                (6.258)      29,82%
  - 10% administrative costs (net ICI)                                 11.302                    (545)     2,60%
  - Property taxes                                                         440                    (21)     0,10%
  - Net provisions for risks and charges                                 3.320                   (160)     0,76%
  - 10% depreciation functional materials                                1.526                    (74)     0,35%
  - other non-deductible expenses                                        7.616                   (367)     1,75%
  - adjustment to deferred tax                                                 -                  (46)     0,22%
Permanent decrease variations
  - Dividends                                                           (8.219)                   396     (1,89%)
  - tax wedge deductions                                              (39.250)                   1.892    (9,01%)
  - gains on investments                                              (17.044)                    822     (3,91%)
  - Adjustment deferred tax assets                                             -                 (556)          -
Actual IRAP taxes                                                     232.054              (11.787)       56,16%

Total effective tax burden IRES and IRAP                               20.987                (8.838)      42,11%




    159
Section 21 Earnings per share

The Bank's shares are not traded on financial markets, so it is supplied with information
relating to earnings per share.

Please note that the dividend in respect of the usefulness of the financial year 2008
amounted to EUR 1.40 for each n. 24,468,716 shares constituting the share capital. For
2009 the proposed allocation, pending, provides for the distribution of a dividend of € 0.124
for each n. 24,468,716 shares.




160
PART D - TOTAL EARNINGS

Analytical statement of comprehensive income

                                             Items                 Gross Amount       Income Taxes     Net amount


 10. Income (loss) for the period                                        X               X                  12.148
     Other income components                                                                                        -
 20. Financial assets available for sale:                                      21               (50)           (29)
       negative changes in fair value                                         263               (65)           198
       reallocation of items to income statement                             (242)               15           (227)
        - impairment adjustments                                              (83)                5            (78)
        Profit / loss on disposal                                            (159)               10           (149)
       c) other changes                                                                                             -
 30. Property, plant and equipment                                                                                  -
 40. Intangible assets                                                                                              -
 50. Hedging of foreign investments:                                              -                -                -
       negative changes in fair value                                                                               -
       reallocation of items to income statement                                                                    -
       c) other changes                                                                                             -
 60. Cash flow hedges:                                                       5.139           (1.661)          3.478
       negative changes in fair value                                        5.139           (1.661)          3.478
       reallocation of items to income statement                                                                    -
       c) other changes                                                                                             -
 70. Exchange rate differences:                                                   -                -                -
       a) changes in value                                                                                          -
       reallocation of items to income statement                                                                    -
       c) other changes                                                                                             -
 80. Non-current assets being disposed:                                           -                -                -
       negative changes in fair value                                                                               -
       reallocation of items to income statement                                                                    -
       c) other changes                                                                                             -
 90. Actuarial gains (losses) on defined benefit plans                        310               (85)           224
100. Portion of holding revaluation reserves measured at equity:                  -                -                -
       negative changes in fair value                                                                               -
       reallocation of items to income statement                                  -                -                -
        - impairment adjustments                                                                                    -
        Profit / loss on disposal                                                                                   -
       c) other changes                                                                                             -
110. Total other income components                                           5.470           (1.796)          3.674
120. Comprehensive income (item 10110)                                            X               X         15.822




     161
Part E - Information on risks and hedging policies
In compliance with current statutory provisions, the UBI has set up a system of risk control
that adjusts the integrated guidelines of the Internal Control System, to be understood as
organizational, regulatory and methodological, with which all Group companies must follow
in order to allow the parent to pursue, effectively and economically, the activities of policy
and strategic control, management and technical-operational.

The Bank works to proactively identify risks and which is subject to the definition of such
metrics, management and control.

The key principles to which they refer the analysis and risk management of the Group, in
order to pursue a more conscious and efficient allocation of economic capital and regulatory
framework are:
    strict control of risks and financial credit and strong presence on all types of risk;
    Using the logic of sustainable value creation in the definition of risk appetite and capital
        allocation;
    variation in risk appetite of the Group with reference to specific types of risk and / or
        specific activities in a body of legal policy at a group level and individual entity.

In this Part shall be provided information regarding risk profiles listed below, its
management policies and coverage implemented by the Bank, the operations in financial
derivatives:
   a) credit risk;
             market Risk:
             interest rate, price,
             exchange
   c) Liquidity risk;
   d) operational Risk.

For an overview of risks and uncertainties surrounding the bank, see the specific paragraph
of the Report, prepared in accordance with the provisions of Legislative Decree 32, February
2, 2007, implementing Directive 2003/51/EC.


Section 1: Credit risk

Qualitative information

1. General
The strategies and policies for the recruitment of credit risk management tools and the same
are defined in the context of the parent company, Capital & Risk Policies by Area in
consultation with the Area Claims, the drafting of the policy also collaborate Macro Area
Commercial, the Risk Management Area el Area Studies. In policy development credit is
given particular attention to the maintenance of an adequate risk / return profile and to
risk-taking consistent with the risk appetite defined by top management and, more
generally, with the mission of the UBI.
The credit policies are primarily aimed at supporting local economies, families,
entrepreneurs, professionals and small-medium enterprises. The particular attention paid
to the maintenance of relations with customers and their

162
development over time, are a strong point of the group, favoring the reduction of information
asymmetries and providing continuity of relationship and customer support itself in a long-
term perspective. Even in the complex business cycle in place, while preserving the quality
of assets, the Bank ensures adequate availability of credit to the economy, among other
adhering to the "agreement" concluded between the Italian Banking Association, the
Ministry of Finance and Trade Associations .

With reference to the corporate market and small business lending policies have been
established to address specific development of the credit portfolio in terms of geographical
area, industry sector and credit rating. The credit policies support network in the
assessment of the attractiveness of the goal of creating value for particular areas / sectors /
counterparts and assessing the creditworthiness of the counterparties.

The credit policies have been developed based on:
    macro-economic forecasts used to assess the riskiness and growth expectations for
       2010, for the different sectors and geographical areas;
    forecasts of growth in lending, which are defined by the expected growth rates for each
       sub-portfolio, geographic area, sector and credit rating;
    a model for the identification of cluster geo-settoriali/rischio more attractive.

Particular attention is given, finally, in defining the treatment of new products, developing
adequate information to top management about compliance with the objectives risk /
return, calculation of minimum rates of delivery, quality of the borrower, collateral received
and expected recovery rates in case of insolvency.


2. Policies for managing credit risk

2.1 Organizational aspects

In the performance of traditional activities of credit intermediation, the Bank is exposed to
the risk that loans are not repaid by the borrowers paid at maturity and should be partially
or fully depreciated. More specifically, the risk profile in lending is sensitive to development
of the economy as a whole, the deteriorating financial condition of counterparties (illiquidity,
insolvency, etc..) Or to change their competitive position, technological or structural
changes debtor firms, and other external factors (eg legislative changes, deterioration of the
value of financial guarantees related to market trends). A further element of risk to which it
pays particular attention, is the level of diversification of loan portfolio among different
borrowers and among the several areas in which they operate.

The organizational model under which the units were structured governing all lending, has
the following breakdown:
     Structures of the parent company of centralized control and coordination;
     General Directorates of Banks and its subsidiaries, on which they depend:
         Credit Management,
         Resolution Peripheral poles,
         Branches,
         Management Unit of the Corporate customers (CBU)
            units for the management of private customers
            (PBU).

The characteristics of this organizational model, besides allowing a strong homogeneity
between the structure of the Parent Loans and other similar structures of the network
banks, resulting in a linear process and optimization of information flows, have highlighted
the clear distinction between the functions of trade and credit. The granting of credit is also
differentiated by customer segment (Retail / Private and Corporate) and

    163
specialized state of the same, "performing" (administered by the Claims Unit Retail, Private
and Corporate) and problematic (managed by the unit performing loans).
In the Banks area, in addition, the introduction of Resolution Peripheral Poly (PDP)
decentralized, to support the Retail branches and facilities in defense of private customers,
ensure the effective coordination and connection of the units operating in the jurisdiction.
The Parent Company through the facilities of Area Claims, Risk Control Areas of Macro and
Development and Strategic Planning Area of Debt Recovery and Audit of Parent Company
and Group, oversees the management of policies, monitoring overall portfolio, all aging
systems assessment, credit management problem and respect the rules.
For all subjects (individuals or economic groups) with credit facilities in place for banks and
companies (including risk assets attributable to issuer risk and the risk derivatives) total in
excess of EUR 50 million, the parent company to decide an operating limit be considered as
an upper limit of reliability of the counterparty at the level of UBI.
Banks and the Group Companies also must apply to the parent expression of a non-binding
advisory opinion prior to the face of any combination of: a) the amount of trust and b)
certain classes of internal ratings.

The structures through which to articulate the product companies and banks taking skills
and commercial credit policy and control responsibilities on the activities directly and those
established by the hierarchical units employees. In particular, responsibility for managing
and monitoring the credit is given to performing in the first instance, the relationship
managers who maintain a daily relationship with customers who are of immediate
perception of any difficulties or signs of deterioration in credit quality . However, all
employees of Group companies are required to report promptly any information that might
enable the early detection of problems or can suggest different ways of managing
relationships, taking part - in fact - the monitoring process.

In the second instance of the organizational unit that monitors the credit risk - called
Presidio Monitoring Credit Quality - carries out monitoring, supervision and analysis of
positions "performing" in terms of analytical aggregates, with intensity and depth graded
according to the bands allocated to the counterparty risk and severity of abnormalities
detected andamentali. The structure - not involved in the deliberative process of credit - on
its own initiative or at the proposal, evaluates and provides (or offers to decision makers
more bodies if the decision goes beyond its powers) proper classification of counterparties
pejorative "performing" asking all area Loans -
Service Credits Italy - Staff Opinions of UBI Banca, in the cases provided for in the Credit,
the issuance of preliminary opinion is not binding. Credits in Area of UBI Bank, the Presidio
and Monitoring Service Credit Quality has the task of coordination and definition of
guidelines for monitoring the loan portfolio, a garrison in the development of instruments for
monitoring, control of credit policies and preparation of reports directional.

2.2 Management, measurement and control

The service credit risk of the parent company is responsible for the production of
information about the credit risk of the Bank, designed to monitor the progress of the
riskiness of lending. The report - submitted quarterly to the attention of the Board of
Directors of the Bank - describe the trend of decline in lending rates, show the distribution
by internal rating, LGD and expected loss and thus the trend of average riskiness of the
loan portfolio, with focus Market
Corporate and Retail Market, separately for companies and individuals.
The complex models that constitute the Group's internal rating system is managed area of
Risk Management and Claims by Area of Parent.
In 2009, the continued refinement of the internal rating systems in use on the target
platform in order to make a more accurate measurement of credit is

164
individually at the single party that at the aggregate level. It was done in particular to refine
some parts of Business Retail and Corporate models, as well as to update the calibration of
PD.

At present, the structure provides for the use of automatic models for individuals and
smaller businesses, models with automatic integration of qualitative questionnaire and form
geo-industry for medium-large, and a model for predominantly judgmental great
expectations (ie economic groups with credit lines in excess of 20 million €).

Inside the Bank, or the jobs generated directly impacted by the introduction of internal
ratings are:
      identification of the model to calculate the rating of the counterparty;
      rating assignment of first disbursement;
     andamentale rating assignment: assignment of ratings to counterparties on the basis of
        operational variables, risk, quality and budget, where present;
     rating change (override): request from the Manager's report, and the central bank net
        credit facilities for changing the rating calculated by the system;
     monitoring rating: verify rating andamentale recalculated periodically after the first
        disbursement, the annual review of the rating: update of data necessary for
        calculating the rating of the actors involved (eg Manager of the report).

The units involved in the delivery and renewal of credit use internal ratings, which are
essential and indispensable assessments made at the appraisal and review of exposures, the
articulation of powers is defined taking into account the risk profile of the customer or the
transaction as represented by the rating, and managed through the application of practices
Electronics Fido (PEF). The ratings are used in the context of both the management
reporting system, and information flows available to the structures involved in the Bank's
credit process.

The assignment of a rating class different from that calculated by the internal rating system
is based on the models adopted by proposing an override the rating. These changes are
motivated by the evaluation of information not considered by the rating model, the model
does not adequately weigh or whose influence future means anticipating.

As prescribed by the Bank of Italy circular n.263/2006 New regulations on supervision for
banks, the Group will maintain the current standard methodology for the determination of
regulatory capital. In particular, the regulatory exposure class "companies and other
entities" was chosen to take advantage, when available, the external credit rating agencies
Moody provided if Lynx, recognized ECAI (External Credit Assessment Institution) by the
Bank of Italy .

For the process of calculating collective impairment on loans - in line with the
determinations made by the parent company - uses a methodology based on internal ratings
and estimates of loss given default (LGD), aligning the rules for calculating this component
of cost of risk to all Banks Network

In 2009 also continued the work of revision, updating and adoption of policies and
regulations for the management of credit risk. Listed below are policies in place, with a nod
to the main content:
     Credit policy, which outlines the development strategy of the Group's corporate loan
        portfolio. Inside the policy is normally also the single name concentration risk, by
        setting maximum exposure limits on single


    165
       counterparty in order to reduce the risk of instability that would result from high
       levels of concentration on the major borrowers of loans;
       Policy "Institutional Counterparty Risk and Country", which sets rules and principles
       for the management of credit granted to resident and non-resident institutional
       clients, as well as ordinary customers residing in countries at risk;
       Policy of offering mortgages through brokers, which governs the use of external
       networks for the supply of loans to non-captive customers, in order to limit potential
       credit risks, operational risks and reputational risks;
       Policy on portability, renegotiation, substitution and early repayment of loans from
       the banks' direct customer networks, which provides guidelines for the
       implementation of UBI portability active and passive operations, rescheduling, relief
       and early termination (partial or total) of loans, in light of guarantee (including by
       establishing minimum levels of service), the maximum reduction of the time, and the
       associated costs of compliance and to provide the Group with the appropriate
       processes and tools for risk management ( credit, operational and reputational);
       Policy on portability, renegotiation, substitution and early repayment of loans
       brokered, with reference to operation on loans brokered under agreements between
       the companies / banks of the Group and specific distribution networks;
       Risk-adjusted pricing policy that defines the process of definition and
       implementation of logical Risk Adjusted Pricing for the various products that involve
       the assumption of credit risk;
       Policy on the risk from securitizations, which defines the guidelines that the group is
       posed with reference to the management of risk arising from securitization activities;
       Policy on residual risk, which defines the strategic guidelines relating to the
       management of "residual risk" by establishing control over the process of acquisition
       and use of mitigation techniques for credit risk mitigation in the subject.


2.3 Technical Risk Mitigation Credit

The bank employs risk mitigation techniques typical of the banking business by acquiring
the counterparty, for certain types of credit lines, collateral, real estate, financial, and
personal guarantees.
The determination of the total amount of credit could be granted to the same customer and
/ or group legal and business takes account of specific criteria for weighting the different
categories of risk and guarantees. In particular, the estimated value of the collateral are
applied to "waste" prudential, differentiated by type of security (mortgages, collateral in
cash, pledges on financial instruments).

To ensure the existence of general and specific requirements for recognition of collateral for
prudential purposes, are counted among the techniques of Credit Risk Mitigation (CRM) - as
required by the Bank of Italy Circular No 263 dated 27/12/2006 and subsequent updates -
the UBI Group:
    redefined the processes of credit relating to the collection and management of
       guarantees. With particular reference to the mortgage, the banks provided the
       network is required to insert, in a special computer application available to
       operators, all data relating to real estate necessary to make the guarantee Eligible.
       Particular attention was paid to obligatory expertise and timeliness of information
       retrieval notary (notarial details of registration), critical for the completion of the
       warranty.
    recovered for a Mortgage in place all the necessary information to ensure their eligibility
       in line with the provisions of Basel 2 in terms of specific requirements. This activity
       was completed in 2009.




166
In general, during 2009 have been consolidated solutions that enable organizational and
collateral management processes according to defined stages of development, enhancement
and monitoring.


2.4 Impaired financial assets

The classification of the portfolio problem coincides with the provisions of the legislation and
can be summarized as follows:
  •          encroach more than 180 consecutive days (for some types of exposure to the
             provisions of Supervision replace this period with the period of 90 days)
   •         restructured loans,
   •         substandard loans,
   •         doubtful loans.

In addition to these classes, there remains a case of problem loans related to "country risk"
for unsecured exposures to customers, institutional and ordinary, belonging to countries
defined as "at risk" as defined by the Supervisory Body.
In particular with regard to the "substandard" in order to optimize the garrison if they carry
out, for the sole purpose of management, a division of the positions in which the objective
difficulties of a temporary situation is considered solved in a short time (usually in the 9
exceptionally be extended for a further month 3 months), calling it "substandard operating
and the remaining positions, where deemed appropriate disengagement from the
relationship with a court within a period of recovery time longer. In addition, "spill over 180
consecutive days are subject to audits to determine, within a maximum of 60 days
management, the return of" performing "or switching to other states of loans.
The management of problem loans is manned in accordance with their level of risk: it is
charged to the organizational structures responsible for the management of the performing
loans of the Bank with regard to "spill over 180 consecutive days," the "substandard
operational" and "Restructured loans" for the positions to "substandard" and "suffering", the
management is centralized at the parent company of Credit Recovery Area.
The evaluation of appropriateness of write-downs is analytically, for each position, ensuring
adequate coverage of expected losses.
The analysis of impaired loans is constantly made by the individual operating units that
patrol the risks and the parent company.
The resolution by the counterparts of the state of difficulty is the determining factor for the
return of positions "performing", the event is heavily concentrated in relations to "overdraft
continues beyond 180 days" and those "substandard operation."




       167
Quantitative information

A. Credit Quality

A.1 Impaired and loans: amounts, adjustments, changes, economic and territorial distribution

A.1.1     Distribution of credit exposures by portfolio and credit quality (value)


                                                                                                             Restructured        Restructured
                                                                                          Watch list
                                                                                                                exposures           exposures
                          Portfolio/Quality                         Doubtful loans            loans                                                 Other assets       Total
                                                                                                              restructured         past due


1. Financial assets held for trading                                                 62                740                   -                  -           19.457        20.259
2. Financial assets available for sale                                                -                  -                   -                  -           16.295        16.295
3. Financial assets held to maturity                                                  -                  -                   -                  -                  -           -
4. Due from banks                                                                     -                  -                   -                  -        1.392.357     1.392.357
5. Loans to customers                                                         209.178             268.697                864              29.441         6.823.900     7.332.080
6. Financial assets designated at fair value                                          -                  -                   -                  -                  -           -
7. Financial assets held for sale                                                     -                  -                   -                  -                  -           -
8. Hedging derivatives                                                                -                  -                   -                  -           33.704        33.704
                                               Total   31/12/2009            209.240             269.437                 864             29.441         8.285.713      8.794.695
                                               Total   31/12/2008            124.936             201.962                     -           29.620         9.135.972      9.492.490




168
A.1.2                                                         Distribution of credit exposures by portfolio and credit quality (gross and net)


                                                                             Impaired assets                                            Performing
                                                                                                                                                                           Total
                         Portfolio/quality
                                                                             Adjustments                                                Adjustments                                Net)
                                                            Gross exposure                      Net exposure       Gross exposure                           Net exposure
                                                                                 specific                                                 portfolio

1. Financial assets held for trading                                   802                  -            802             X                   X                    19.457      20.259
2. Financial assets available for sale                                   -                  -                  -             16.295                     -         16.295      16.295
3. Financial assets held to maturity                                     -                  -                  -                    -                   -              -              -
4. Due from banks                                                        -                  -                  -           1.392.357                    -      1.392.357   1.392.357
5. Loans to customers                                              803.478          (295.299)        508.179               6.885.163             (61.262)      6.823.901   7.332.080
6. Financial assets designated at fair value                             -                  -                  -         X                   X                         -              -
7. Financial assets held for sale                                        -                  -                  -                    -                   -              -              -
8. Hedging derivatives                                                   -                  -                  -         X                   X                    33.704      33.704
                                               Total
                                               31/12/2009         804.280          (295.299)         508.981             8.293.815            (61.262)         8.285.714   8.794.695
                                               Total
                                               31/12/2008         574.156          (217.638)         356.518             9.199.206            (63.234)         9.135.972   9.492.490




                                                                                                                                                                                   169
A.1.3                        A.1.3 Cash and off-balance sheet loans to banks: gross and net values
net

                                                                                                          Portfolio value
                                                            Exposures             Losses                   adjustments                     Exposures
               Types of exposure/amounts
                                                             Gross
                                                          exposure                specific                  Portfolio                 Net exposure

A. Cash exposures
   a) Non-performing                                                       -                       -            X                                         -
b) Substandard    loans                                                    -                       -            X                                         -
    c) Restructured loans                                                  -                       -            X                                         -
    d) Past due loans                                                      -                       -            X                                         -
    e) Other assets                                             1.392.357            X                                         -               1.392.357
                                             Total A            1.392.357                          -                           -               1.392.357
B. Off balance sheet
    a) Impaired                                                            -                       -            X                                         -
    b) other                                                       52.473            X                                         -                     52.473
                                             Total B              52.473                           -                           -                     52.473
                                           Total A+B            1.444.830                          -                           -               1.444.830




A.1.6 Cash and off-balance sheet loans to customers: gross and net values

                                                                                                            Portfolio value
                                                             Exposures                Losses                 adjustments                   Exposures
                  Types of exposure/amounts
                                                               Gross
                                                            exposure                 specific                  Portfolio              Net exposure


A. Cash exposures
   a) Non-performing                                                    452.327              (243.149)              X                                209.178
   b) Substandard loans                                                 319.818               (51.121)              X                                268.697
   c) Restructured loans                                                   905                     (42)             X                                   863
   d) Past due loans                                                     30.427                  (987)              X                                 29.440
   e) Other assets                                                 6.901.460             X                              (61.262)                6.840.198
                                                Total A           7.704.937                  (295.299)                  (61.262)               7.348.376
B. Off balance sheet
   a) Impaired                                                           26.521                 (2.374)             X                                 24.147
   b) other                                                             539.632          X                                  (1.029)                  538.603
                                                Total B             566.153                    (2.374)                   (1.029)                 562.750
                                              Total A+B           8.271.090                  (297.673)                  (62.291)               7.911.126




170
A.1.7 Cash loans to customers: changes in impaired loans

                                                                                                                Restructured            Restructured
                                                           Non-performing
                                                                                                                   exposures               exposures
                                      Type                           loans         Watchlist loans
                                                                                                                 restructured             past due

A. Opening gross exposure                                               307.698                  234.332                            -              31.273
    - of which: sold financial assets not derecognized                         -                            -                       -                      -

B. Increases                                                            220.511                  447.942                    1.511                180.731
     B.1 inflows from performing loans                                   41.516                      253.542                        -             173.058
     Transfer of impaired loans from other categories                   167.080                      106.425                    1.166                  1.791
     Other increases                                                     11.915                       87.975                     345                   5.882
C. Decreases                                                            (75.882)                (362.456)                       (606)           (181.577)
     C.1 outflows to performing loans                                          -                     (63.111)                       -             (65.321)
     C.2 canceled                                                       (51.755)                            -                       -                      -
     C.3 collections                                                    (24.127)                     (34.568)                       -                  (396)
     C.4 disposals                                                             -                            -                       -                      -
     Transfer to other categories of impaired loans                            -                 (164.822)                          -            (111.640)
     Other decreases                                                           -                     (99.955)                   (606)              (4.220)
D. Closing gross exposure                                               452.327                  319.818                         905               30.427
    - of which: sold financial assets not derecognized                         -                            -                       -                      -




    171
A.1.8 Credit exposures due from customers for: changes in total adjustments

                                                                                                                Restructured           Restructured
                                                                Non-performing            Watchlist
                                                                                                                   exposures              exposures
                                          Type                            loans              loans
                                                                                                                 restructured            past due


Total initial adjustments                                                  (182.771)              (33.162)                         -             (1.705)
      - of which: sold financial assets not derecognized                              -                     -                      -                      -

B. Increases                                                               (125.686)              (43.714)                  (292)                (1.031)
B.1 Value adjustments                                                      (101.516)              (37.858)                         -                  (739)
B.2 Transfer of impaired loans from other categories                        (17.918)                   (426)                (292)                       (4)
Other increases                                                              (6.252)                  (5.430)                      -                  (288)
Decreases                                                                    65.308                   25.755                    250               1.749
Write-backs on valuation                                                          8.245                  384                    168                     92
Write-back on collection                                                          5.308                8.184                     82                    203
C.3 write-offs                                                               51.755                         -                      -                      -
Transfer to other categories of impaired loans                                        -               17.187                       -              1.454
Other decreases                                                                       -                     -                      -                      -
D. Final total adjustments                                                 (243.149)              (51.121)                      (42)                  (987)
      - of which: sold financial assets not derecognized                              -                     -                      -                      -




172
A.2 Classification of exposures based on external and internal ratings

A.2.1                              Distribution of credit exposure in cash and off-balance for the rating classes outside


                                                                                                                 External rating classes
                    Restructured
                    exposures                                                                                                                                                                                              No rating                Total
                                                          Class 1                    Class 2                  Class 3                      Class 4                    Class 5                 Class 6

                                                                                                                                                                                                                                                       8.740.73
A. For cash                                                         91.351                1.809.806              482.398                        707.377                  370.766                   30.231                   5.248.804                         3

B.Derivatives                                                         148                      2.988                  2.316                          4.278                 1.592                             7                 42.584                      53.913

    B.1 Financial derivatives                                         148                      2.988                      2.316                      4.278                 1.592                             7                  42.584                     53.913

    B.2 Credit derivatives                                               -                         -                          -                          -                      -                            -                             -                         -

C. Guarantees given                                                  2.086                    55.112              29.634                         19.240                    7.765                        180                   187.541                  301.558

D. Commitments to pay funds                                         49.793                     8.827              12.904                         37.927                   33.170                             -                117.131                  259.752
                                                                                                                                                                                                                                                       9.355.95
                                        Total                      143.378                1.876.733              527.252                        768.822                  413.293                   30.418                   5.596.060                         6




A.2.2         Distribution of balance sheet exposures and off-balance sheet for internal rating classes


                                                                                                                              Internal rating
                                                                                                                                     classes
                Restructured                                                                                                                                                                                                                               Tota
                exposures                                                                                                                                                                                                                      No rating      l
                                                                    Rating       Rating       Rating
                                     Rating 1       Rating 2             3            4            5       Rating 6       Rating 7       Rating 8     Rating 9       Rating 10 Rating 11 Rating 12 Rating 13                   Rating 14

                                                                                                                                                                                                                                                           8.740.7
A. Cash exposures                      59.266         18.106        201.483      953.534         8.062      919.887          581.695      634.815       906.978       891.572       677.295    174.458           457.511     133.055           2.123.017      33
B.
Derivative                                                                                                                                                                                                                                              53.91
s                                          92             17          1.111        1.815               -       3.141              860       2.928             691         964         1.736             29         3.295               -         37.235     3
                                                                                                                                                                                                                                                        53.91
 B.1 Financial derivatives                 92             17          1.111        1.815               -       3.141              860       2.928             691         964         1.736             29         3.295               -         37.235     3

 B.2 Credit derivatives                         -              -             -            -            -              -              -           -               -          -             -              -             -               -               -    -
                                                                                                                                                                                                                                                        301.5
C. Guarantees given                    10.171            137         30.448       56.764          311         43.655          22.900       41.830        12.932        19.860        16.692         472            9.183       3.041             33.161   58
                                                                                                                                                                                                                                                        259.7
D. Commitments to pay funds             4.814            320          4.868       41.131               -       7.767          30.660       18.833            5.636     32.076        19.621       1.258            9.008       6.222             77.539   52
                                                                                                                                                                                                                                                           9.355.9
Total                                  74.344         18.580        237.911 1.053.245           8.373       974.450         636.115      698.404       926.236        944.472       715.344    176.217       478.997        142.318            2.270.951     56




Scale Master classes are made up of intervals of PD (Probability of Default) which are mapped inside the PD point corresponding to different
classes of different internal rating models. This representation ensures comparability of exposures to counterparties accounted for by different
internal rating models.
The six classes of scale teacher less risky have a concentration equal to 32.6% of total balance sheet exposures with the internal ratings, while
less than 9% is concentrated in the two classes most risk. Class 4 is the largest in terms of exposure.
The class contains the unrated impaired. There are no exposures securitized.

                                                                                                                                             173
A.3 DA.3 BREAKDOWN OF GUARANTEED LOANS BY TYPE OF GUARANTEE

A.3.1 Credit exposures to banks


                                                                                                                                                            Personal
                                                                                                                                                            guarantee (2)


                                                             Real guarantee (1)
                                                                                                                           Credit                                                             Endorseme                               Total (1)
                                    Value                                                                                  derivatives                                                        nt credits
                                                                                                                                                                                                                                            (2)
                                 net exposure
                                                                                                                                   Other
                                                                                                                                   derivative
                                                                                                                                   s

                                                                                                            Governments           Other                                     Governments       Other
                                                                                                             and central          public                                     and central     public
                                                    Buildi   Equ                                   CL
                                                                                                               banks            agencies                       Other              banks    agencies                     Other
                                                      ngs    ity            Other collateral       N                                            Banks                                                      Banks
                                                                                                                               advertisi                                                   advertisi
                                                                                                              central                ng                      subjects        central             ng                    subjects

1. Secured credit for cash
1.1. totally guaranteed                 2.594            -          2.594                      -        -                  -               -            -               -              -               -           -              -      2.594
    - of which impaired                         -        -              -                      -        -                  -               -            -               -              -               -           -              -          -
1.2. partially guaranteed              57.127            -         57.042                      -        -                  -               -            -               -              -               -           -              -     57.042
    - of which impaired                         -        -              -                      -        -                  -               -            -               -              -               -           -              -          -
2. Secured “off balance sheet”
2.1. totally guaranteed                         -        -              -                      -        -                  -               -            -               -              -               -           -              -               -
    - of which impaired                         -        -              -                      -        -                  -               -            -               -              -               -           -              -               -
2.2. partially guaranteed                       -        -              -                      -        -                  -               -            -               -              -               -           -              -               -
    - of which impaired                         -        -              -                      -        -                  -               -            -               -              -               -           -              -               -




174
              A.3.2 Secured off-balance sheet loans to banks
A.3.2                                         and customers



                                                                                                                                     Personal guarantee (2)

                                                                  Real
                                                                  guarantee (1)


                                                                                                            Credit                                              Endorsemen
                                                                                                            derivatives                                         t credits
                                               Value                                                                Other                                                                            Total (1)
                                                                                                                    derivative                                                                             (2)
                                            net exposure                                                            s



                                                                                      Other      Governments           Other                      Governments            Other
                                                                                     guarant      and central         public                       and central          public
                                                           Buildings       Equity      ees   CLN    banks           agencies     Banks Other            banks         agencies    Banks    Other
                                                                                                                    advertisi          subject                        advertisi
                                                                                                      central             ng                 s       central                ng            subjects
                                                                                      real



1. Secured credit for cash


1.1. Totally guaranteed                        5.430.671 3.434.882          91.218     7.408      -             -           -        -       -                3.523    10.410     1.585 1.676.019 5.225.044

     - of which impaired                         341.604     196.373         2.617            -   -             -           -        -       -                    -       534       397   129.574    329.494

1.2. partially guaranteed                        377.105      16.209        24.985     1.005      -             -           -        -       -                    -     1.117       225   162.814    206.355

     - of which impaired                          35.262       2.679         2.701       360      -             -           -        -       -                    -       127         -    20.163      26.029

2. Secured “off balance sheet”

2.1. totally guaranteed                          292.622      92.611         9.545       110      -             -           -        -       -                    -         48       84   163.663    266.062

     - of which impaired                          18.192      11.115           174           52   -             -           -        -       -                    -         48        -     6.814      18.203

2.2. partially guaranteed                         27.304         176         2.620       122      -             -           -        -       -                    -          -        -     9.394      12.312

     - of which impaired                           1.748               -        25           13   -             -           -        -       -                    -          -        -     1.727       1.765




     175
B. DISTRIBUTION AND CONCENTRATION OF CREDIT EXPOSURE
B.1 Sectoral distribution of credit exposure in cash and off-balance "to customers (value)
                                                                          Governments and                 Other public                                                                 Financial                                                                        Insurance                                                                         Non-financial                                                            Other
                                                                          central banks                   entities                                                                     companies                                                                        companies                                                                         companies                                                                entities




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                                                                                                                                   nts
A. Cash exposures
A.
1    Doubtful loans                                                          -            -   X            6                       -                   X                       1.414                      (842)                            X                                -                              -              X                           158.637 (166.522)                                 X                49.121                 (75.784)                                     X
A.
2    Substandard loans                                                       -            -   X            -                       -                   X                       2.412                     (1.108)                           X                                -                              -              X                           230.503              (43.725)                     X                35.782                       (6.288)                                X
A.
3    Restructured exposures                                                  -            -   X            -                       -                   X                                 -                               -                 X                                -                              -              X                                  863                        (42)            X                                  -                               -                 X
A.
4    Past due exposures                                                      -            -   X            -                       -                   X                               900                    (16)                         X                                -                              -              X                               18.371              (627)                     X                10.169                            (344)                             X
A.
5    Other exposures                                                15.160            X           -   16.567        X                                                  -   63.673                         X                                    (266)                    3.163               X                                         (1)     4.768.619                      X                        (45.983)       1.973.016                             X                               (15.012)
Total A                                                             15.160                -       -   16.573                       -                                   -   68.399                    (1.966)                                   (266)                    3.163                              -                         (1) 5.176.993 (210.916) (45.983) 2.068.088                                                                 (82.416)                               (15.012)
B. Off-balance sheet exposures
B.1 Non-performing loans                                                     -            -   X            -                       -                   X                                 -                               -                 X                                -                              -              X                               12.809            (2.251)                     X                             20                                   -                 X
B.2 Watchlist loans                                                          -            -   X            -                       -                   X                                 -                               -                 X                                -                              -              X                               10.822              (119)                     X                           108                             (1)                      X
B.3 Other impaired assets                                                    -            -   X            -                       -                   X                                 -                               -                 X                                -                              -              X                                  388                         (2)            X                                  -                               -                 X
B.4 Other exposures                                                 10.227            X           -   40.206        X                                           (1)            3.942                      X                                          (3)                    -               X                                             -           454.488                X                           (928)           29.740                            X                                     (97)
Total B                                                             10.227                -       -   40.206                       -                            (1)          3.942                                       -                          (3)                     -                              -                              -     478.507                    (2.372)                      (928)          29.868                                     (1)                            (97)
                                          Total
                                          (A+B)     31/12/09        25.387                -       -   56.779                       -                            (1)        72.341                    (1.966)                                   (269)                    3.163                              -                         (1) 5.655.500 (213.288) (46.911) 2.097.956                                                                 (82.417)                               (15.109)
                                          Total
                                          (A+B)     31/12/08        26.328                -       -   55.414            (76)                                    (3) 102.186                          (1.842)                                   (304)                    2.754                              -                         (9) 6.181.779 (156.190) (47.407) 2.201.623                                                                 (62.187)                               (16.185)




176
B.2 Breakdown of loans in cash and “off-balance sheet” to customers (carrying amount)
                                                                                                                                                                                                ASI
                                                                     ITALY                             OTHER EU COUNTRIES                               AMERICA                                 A                                REST OF THE WORLD

              Loans / Regions
                                                                               Value                                     Value                                     Value                                 Value
                                                                            adjustments                               adjustments                               adjustments                           adjustments                       Value adjustments
                                                      Net loans                                  Net loans                                 Net loans                                Net loans                           Net exposure
                                                                                total                                     total                                     total                                 total                                total

A. Cash loans
A.
1    Non-performing loans                                         209.106         (243.036)                     72              (113)                       -                   -                 -                 -                   -                     -
A.
2    Impaired loans                                               268.418           (51.088)                   279                  (33)                    -                   -                 -                 -                   -                     -
A.
3    Restructured loans                                              863                  (42)                    -                    -                    -                   -                 -                 -                   -                     -
A.
4    Past-due loans                                                29.438              (987)                      1                    -                    1                   -                 -                 -                   -                     -
A.
5    Other loans                                             6.819.234              (61.232)                  9.841                 (25)               10.504                 (4)               540                 -                  79                   (1)
TOTAL A                                                     7.327.059             (356.385)                  10.193             (171)                  10.505                 (4)               540                 -                  79                   (1)
B. Off-balance sheet loans
B.1 Non-performing loans                                           12.830            (2.251)                      -                    -                    -                   -                 -                 -                   -                     -
B.2 Impaired loans                                                 10.930              (121)                      -                    -                    -                   -                 -                 -                   -                     -
B.3 Other impaired assets                                            387                   (2)                    -                    -                    -                   -                 -                 -                   -                     -
B.4 Other loans                                                   536.826            (1.029)                   600                     -                1.177                   -                 -                 -                   -                     -
TOTAL B                                                       560.973               (3.403)                    600                     -                1.177                   -                 -                 -                   -                     -
                             Total (A+B)   31/12/09         7.888.032             (359.788)                  10.793             (171)                  11.682                 (4)               540                 -                  79                   (1)
                             Total
                             (A+B)         31/12/08         8.554.174             (290.347)                   6.229                 (99)                9.629                   -                 -                 -                  51                     -




                                                                                                                                                                                                                                                     177
B.3 Distribution of loans in cash and “off-balance sheet” to banks (carrying amount)
                                                                                                                                                                  ASI
                                                           ITALY                      OTHER EU COUNTRIES                      AMERICA                             A                          REST OF THE WORLD

             Loans / Regions
                                                                       Value                             Value                             Value                             Value                             Value
                                                                    adjustments                       adjustments                       adjustments                       adjustments                       adjustments
                                                    Net loans                         Net loans                         Net loans                         Net loans                         Net loans
                                                                        total                             total                             total                             total                             total


A. Cash loans
A.1Non-performing loans                                         -                 -               -                 -               -                 -               -                 -               -                 -
A.2Impaired loans                                               -                 -               -                 -               -                 -               -                 -               -                 -
A.3Restructured loans                                           -                 -               -                 -               -                 -               -                 -               -                 -
A.4Past due loans                                               -                 -               -                 -               -                 -               -                 -               -                 -
A.5Other loans                                      1.390.998                     -         879                     -               -                 -         480                     -               -                 -
TOTAL A                                             1.390.998                     -         879                     -               -                 -        480                      -               -                 -
B. Off-balance sheet loans
B.1 Non-performing loans                                        -                 -               -                 -               -                 -               -                 -               -                 -
B.2 Impaired loans                                              -                 -               -                 -               -                 -               -                 -               -                 -
B.3 Other impaired assets                                       -                 -               -                 -               -                 -               -                 -               -                 -
B.4 Other loans                                        49.067                     -       1.371                     -          19                     -         612                     -       1.404                     -
TOTAL B                                                49.067                     -       1.371                     -          19                     -        612                      -       1.404                     -
                             Total (A+B) 31/12/09   1.440.065                     -       2.250                     -          19                     -      1.092                      -       1.404                     -
                             Total (A+B) 31/12/08   1.610.441                     -         910                     -           3                     -        257                      -       7.752                     -




178
B.4 Large exposures


The bank, at the close of financial year, did not qualify as High Risks positions in
accordance with applicable regulatory provisions.




    179
C. Securitisation and asset disposals

C.1 Securitization
There were no securitization transactions.



Sales of C.2
There were no disposals.



C.3 covered bond
There were no transactions of covered bonds




180
D. MODELS FOR THE MEASUREMENT OF CREDIT RISK

With regard to the measurement of credit risk The Group has developed a model of UBI
Portfolio Credit Risk through the calculation engine PCRE Algorithmics: it considers the
overall risk of a portfolio model and capturing the component resulting from the correlation
of default counterparts, calculating credit losses and capital to credit risk at the portfolio
level. The model numbers, between the various inputs, the variables of PD and LGD used for
supervisory purposes.


Section 2 Market risks

2.1 Interest rate risk and price risk - trading portfolio supervision

Qualitative information

A. General

The compilation of this section shall consider only the securities covered by the "trading
book capital" as defined in the rules governing regulatory reporting market risk.
Accordingly, any operations are not allocated in the budget in the trading book but not
covered by the aforementioned definition of supervision. These operations are included in
the information concerning the "banking".


B. Management processes and methods for measuring interest rate risk and price risk

See the next paragraph A. "General, management procedures and methods for measuring
interest rate risk."




   181
Quantitative information

1.1 Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities for cash and financial
derivatives - Euro Currency


                                                                       From 3 months to   From 6 months    From one year to       From 5 years                             Life
               Type / Remaining      On demand       To 3 months                                                                                     Over 10 years
                                                                          6 months            to 1 year        to 5 years          to 10 years                           indefinite


1. Cash assets                                   -                 -                  -                -                      -                  -                   -                -
1.1 Debt securities                              -                 -                  -                -                      -                  -                   -                -
   - With early redemption option                -                 -                  -                -                      -                  -                   -                -
   - other                                       -                 -                  -                -                      -                  -                   -                -
1.2 Other assets                                 -                 -                  -                -                      -                  -                   -                -
2. Cash liabilities                              -                 -                  -                -                      -                  -                   -                -
2.1 Repurchase agreements                        -                 -                  -                -                      -                  -                   -                -
2.2 Other liabilities                            -                 -                  -                -                      -                  -                   -                -
3. Financial derivatives                         -         (3.600)             (12.529)            (400)             16.528                      -                   -                -
3.1 With underlying security                     -               -                    -                -                  -                      -                   -                -
- Options                                        -                 -                  -                -                      -                  -                   -                -
    - long positions                             -                 -                  -                -                      -                  -                   -                -
    - short positions                            -                 -                  -                -                      -                  -                   -                -
- Other derivatives                              -                 -                  -                -                      -                  -                   -                -
    - long positions                             -                -                   -                -                   -                 -                    -                   -
    - short positions                            -                -                   -                -                   -                 -                    -                   -
3.2 Without underlying security                  -          (3.600)            (12.529)            (400)              16.528                 -                    -                   -
- Options                                        -          (4.400)                   -                -               4.400                 -                    -                   -
    - long positions                             -          67.538               29.955          16.047               42.837            22.821                9.001                   -
    - short positions                            -          71.938               29.955          16.047              38.437             22.821                9.001                   -
- Other derivatives                              -             800             (12.529)            (400)             12.128                  -                    -                   -
    - long positions                             -         966.842               75.094          17.783             149.781             86.184               35.383                   -
    - short positions                            -         966.042               87.623          18.183             137.653             86.184               35.383                   -




182
1.2 Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities for cash and derivatives -
Currency USD


                                                                        From 3 months   From 6 months    From one year to   From 5 years                             Life
                 Type / Remaining     On demand       To 3 months                                                                              Over 10 years
                                                                          to 6 months        to 1 year       to 5 years      to 10 years                           indefinite


1. Cash assets                                    -                 -               -                -                  -                  -                   -                -
1.1 Debt securities                               -                 -               -                -                  -                  -                   -                -
    - With early redemption option                -                 -               -                -                  -                  -                   -                -
    - other                                       -                 -               -                -                  -                  -                   -                -
1.2 Other assets                                  -                 -               -                -                  -                  -                   -                -
2. Cash liabilities                               -                 -               -                -                  -                  -                   -                -
2.1 Repurchase agreements                         -                 -               -                -                  -                  -                   -                -
2.2 Other liabilities                             -                 -               -                -                  -                  -                   -                -
3. Financial derivatives                          -                 -               -                -                  -                  -                   -                -
3.1 With underlying security                      -                 -               -                -                  -                  -                   -                -
- Options                                         -                 -               -                -                  -                  -                   -                -
    - long positions                              -                 -               -                -                  -                  -                   -                -
    - short positions                             -                 -               -                -                  -                  -                   -                -
- Other derivatives                               -                 -               -                -                  -                  -                   -                -
    - long positions                              -                 -               -                -                  -                  -                   -                -
    - short positions                             -                 -               -                -                  -                  -                   -                -
3.2 Without underlying security                   -                 -               -                -                  -                  -                   -                -
- Options                                         -                 -               -                -                  -                  -                   -                -
    - long positions                              -         25.935              6.308           13.200              6.569                  -                   -                -
    - short positions                             -         25.935              6.308           13.200              6.569                  -                   -                -
- Other derivatives                               -                 -               -                -                  -                  -                   -                -
    - long positions                              -          6.880              2.744            3.818                  -                  -            1.388                   -
    - short positions                             -          6.880              2.744            3.818                  -                  -            1.388                   -




     183
1.3 Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities for cash and derivatives -
Currency OTHER CURRENCIES


                                                                        From 3 months   From 6 months    From one year to   From 5 years                         Life
                 Type / Remaining     On demand       To 3 months                                                                          Over 10 years
                                                                          to 6 months        to 1 year       to 5 years      to 10 years                       indefinite


1. Cash assets                                    -                 -               -                -                  -              -                   -                -
1.1 Debt securities                               -                 -               -                -                  -              -                   -                -
    - With early redemption option                -                 -               -                -                  -              -                   -                -
    - other                                       -                 -               -                -                  -              -                   -                -
1.2 Other assets                                  -                 -               -                -                  -              -                   -                -
2. Cash liabilities                               -                 -               -                -                  -              -                   -                -
2.1 Repurchase agreements                         -                 -               -                -                  -              -                   -                -
2.2 Other liabilities                             -                 -               -                -                  -              -                   -                -
3. Financial derivatives                          -                 -               -                -                  -              -                   -                -
3.1 With underlying security                      -                 -               -                -                  -              -                   -                -
- Options                                         -                 -               -                -                  -              -                   -                -
    - long positions                              -                 -               -                -                  -              -                   -                -
    - short positions                             -                 -               -                -                  -              -                   -                -
- Other derivatives                               -                 -               -                -                  -              -                   -                -
    - long positions                              -                 -               -                -                  -              -                   -                -
    - short positions                             -                 -               -                -                  -              -                   -                -
3.2 Without underlying security                   -                 -               -                -                  -              -                   -                -
- Options                                         -                 -               -                -                  -              -                   -                -
    - long positions                              -                 -           1.128            2.647                  -              -                   -                -
    - short positions                             -                 -           1.128            2.647                  -              -                   -                -
- Other derivatives                               -                 -               -                -                  -              -                   -                -
    - long positions                              -                 -               -                -                  -              -                   -                -
    - short positions                             -                 -               -                -                  -              -                   -                -




184
3. Regulatory trading portfolio: internal models and other methods of sensitivity
   analysis

The trading supervision of Banca Popolare di Ancona is composed primarily of traded
derivatives with the parent company. Please note that at the end of December, the VaR of
the trading portfolio amounted to about EUR 502 with a NAV of approximately 7551 Euros
(average VaR in 2009 of 19 011 euro).




   185
2.2 Interest rate risk and price - Banking

The banking book consists of all financial assets and liabilities not included in the trading of
Section 2.1.


Qualitative information

A. General, management processes and methods for measuring interest rate risk and
   price risk

The risk of interest rate is defined as the current or prospective risk of a change in net
interest income and economic value of the Bank, as a result of unexpected changes of
interest rates that impact the banking book.
The measurement, monitoring and reporting of exposure to interest rate risk are conducted
by the Risk Management Area Parent, which shall on a monthly basis:
      •   perform sensitivity analysis of the economic value (fair value risk) for the
          measurement of the change in asset values in parallel shock scenarios of the yield
          curve of reference;
      •   to carry out, through a gap analysis of static (ie assuming that the positions are
          constant during the period), a sensitivity analysis of net interest income
          (Cash flow risk), which focuses on changes in income over a period of twelve months
          of shock scenarios evaluated in parallel the curve of the reference rates

The sensitivity analysis of the economic value includes an estimate of the impacts arising
from the phenomenon of early repayment of mortgages and loans, regardless of the presence
of early repayment options defined in the contract. This estimate is supported by statistical
and qualitative analysis conducted in 2008 on the main banks of the UBI. The estimate of
variation margin includes both an estimate of the effect of re-investment / lending flows due
to the effect related to the elasticity and viscosity of sight items. The factors of flexibility and
adaptation of the delay in contract rates are differentiated by business segment
classification score.


B. Hedging fair value

During the year 2009 have been put in place specific and general shell by means of
derivative financial instruments to reduce exposure to adverse changes in fair value (fair
value hedge) due to interest rate risk. In particular, they cover the subject of fixed-rate
exceeding all year
(Hedged) for a total of some 449 million euro in the denomination, and the bonds (hedging)
and zero coupon fixed rate for a total of approximately 868 million euro in the
denomination. The derivatives used were of the type and Interest Rate Swap Cap
The verification activities of hedge effectiveness was conducted by the Risk Management
Area
Parent. In detail, the tests are carried out effectively in accordance with International
Accounting Standards by prospective tests with the activities of coverage, followed by back-
testing performed on a monthly basis.


C. Hedging of cash flows

In the financial statements of Banca Popolare Ancona are reports cash flow hedges (cash
flow hedge).




186
Quantitative information
Banking 1.1 distribution for residual maturity (the date of re-pricing) of assets and liabilities - Currency EURO


                                                                                      From 3 months            From 6 months            From one year to           From 5 years                                              Life
                 Type / Remaining       On demand           To 3 months                                                                                                                       Over 10 years
                                                                                       to 6 months                to 1 year                to 5 years               to 10 years                                           indefinite



1.   Cash assets                             3.800.871                3.001.411                   354.884                      26.307                  341.926                    244.602                      712.279                 44
1.1 Debt securities                                     -                    1.507                    11.032                        -                      3.747                        10                            -                44
     - with early redemption option                     -                         -                        -                        -                          -                          -                           -                 -
     - other                                            -                    1.507                    11.032                        -                      3.747                        10                            -                44
1.2 Loans to banks                            1.306.887                     47.772                    12.167                     326                           -                          -                           -                 -
1.3 Loans to customers                        2.493.984               2.952.132                   331.685                      25.981                  338.179                     244.592                     712.279                  -
     - current accounts                       1.573.754                           -                        -                        -                          -                          -                           -                 -
     - other loans                             920.230                2.952.132                   331.685                      25.981                  338.179                     244.592                     712.279                  -
       - with early redemption option           59.047                2.903.347                   323.327                      15.118                  228.836                     213.177                     712.279                  -
       - other                                 861.183                      48.785                     8.358                   10.863                  109.343                      31.415                            -                 -
2.   Cash liabilities                        4.552.237                1.080.598                   846.773                      75.924                1.005.747                     24.800                             -                 -
2.1 Due to customers                          4.482.282                     46.099                    11.996                        -                          -                          -                           -                 -
     - current accounts                       3.966.376                           -                        -                        -                          -                          -                           -                 -
     - other payables                          515.906                      46.099                    11.996                        -                          -                          -                           -                 -
       - with early redemption option                   -                         -                        -                        -                          -                          -                           -                 -
       - other                                 515.906                      46.099                    11.996                        -                          -                          -                           -                 -
2.2 Due to banks                                65.866                            -                        -                        -                          -                          -                           -                 -
     - current accounts                         16.780                            -                        -                        -                          -                          -                           -                 -
     - other payables                           49.086                            -                        -                        -                          -                          -                           -                 -
2.3 Debt securities                                 4.089             1.034.499                   834.777                      75.924                1.005.747                      24.800                            -                 -
     - with early redemption option                     -                         -                        -                        -                          -                          -                           -                 -
     - other                                        4.089             1.034.499                   834.777                      75.924                1.005.747                      24.800                            -                 -
2.4 Other liabilities                                   -                         -                        -                        -                          -                          -                           -                 -
     - with early redemption option                     -                         -                        -                        -                          -                          -                           -                 -
     - other                                            -                         -                        -                        -                          -                          -                           -                 -
3.   Financial derivatives                              -             (586.577)                 (456.105)                  (57.166)                  1.265.568                (149.100)                       (401.543)                 -
3.1 With underlying security                            -                         -                        -                        -                          -                          -                           -                 -
     - Options                                          -                         -                        -                        -                          -                          -                           -                 -
       + long positions                                 -                         -                        -                        -                          -                          -                           -                 -
       + short positions                                -                         -                        -                        -                          -                          -                           -                 -
     - Other                                            -                         -                        -                        -                          -                          -                           -                 -
       + long positions                                 -                         -                        -                        -                          -                          -                           -                 -
       + short positions                                -                         -                        -                        -                          -                          -                           -                 -
3.2 Without underlying security                         -                 (586.577)              (456.105)                 (57.166)                  1.265.568                    (149.100)                   (401.543)                 -
     - Options                                          -                  181.900                         -                        -                          -                   (26.000)                   (155.900)                 -
       + long positions                                 -                  181.900                      604                         -                          -                          -                           -                 -
       + short positions                                -                         -                     604                         -                          -                    26.000                     155.900                  -
     - Other                                            -                 (768.477)              (456.105)                 (57.166)                  1.265.568                    (123.100)                   (245.643)                 -
       + long positions                                 -                  665.195                153.868                      90.285                1.643.052                      97.550                      42.975                  -
       + short positions                                -             1.433.672                   609.973                  147.451                     377.484                     220.650                     288.618                  -




                                                                                                                                                                                                                                            187
Banking 1.2 distribution for residual maturity (the date of repricing) of assets and liabilities - Currency USD


                                                                                   From 3 months           From 6 months       From one year to       From 5 years                              Life
                 Type / Remaining       On demand            To 3 months                                                                                                 Over 10 years
                                                                                    to 6 months               to 1 year           to 5 years           to 10 years                           indefinite


1.   Cash assets                                    32.469                 4.340                   1.981                   -                      -                  -                   -                6
1.1 Debt securities                                      -                     -                       -                   -                      -                  -                   -                6
     - with early redemption option                      -                     -                       -                   -                      -                  -                   -                -
     - other                                             -                     -                       -                   -                      -                  -                   -                6
1.2 Loans to banks                                  23.150                     -                       -                   -                      -                  -                   -                -
1.3 Loans to customers                               9.319                 4.340                   1.981                   -                      -                  -                   -                -
     - current accounts                              9.316                     -                       -                   -                      -                  -                   -                -
     - other loans                                      3                  4.340                   1.981                   -                      -                  -                   -                -
       - with early redemption option                    -                     -                       -                   -                      -                  -                   -                -
       - other                                          3                  4.340                   1.981                   -                      -                  -                   -                -
2.   Cash liabilities                               38.616                  154                     452                    -                      -                  -                   -                -
2.1 Due to customers                                38.564                     -                       -                   -                      -                  -                   -                -
     - current accounts                             38.564                     -                       -                   -                      -                  -                   -                -
     - other payables                                    -                     -                       -                   -                      -                  -                   -                -
       - with early redemption option                    -                     -                       -                   -                      -                  -                   -                -
       - other                                           -                     -                       -                   -                      -                  -                   -                -
2.2 Due to banks                                         -                     -                       -                   -                      -                  -                   -                -
     - current accounts                                  -                     -                       -                   -                      -                  -                   -                -
     - other payables                                    -                     -                       -                   -                      -                  -                   -                -
2.3 Debt securities                                    52                   154                     452                    -                      -                  -                   -                -
     - with early redemption option                      -                     -                       -                   -                      -                  -                   -                -
     - other                                           52                   154                     452                    -                      -                  -                   -                -
2.4 Other liabilities                                    -                     -                       -                   -                      -                  -                   -                -
     - with early redemption option                      -                     -                       -                   -                      -                  -                   -                -
     - other                                             -                     -                       -                   -                      -                  -                   -                -
3.   Financial derivatives                               -                     -                       -                   -                      -                  -                   -                -
3.1 With underlying security                             -                     -                       -                   -                      -                  -                   -                -
     - Options                                           -                     -                       -                   -                      -                  -                   -                -
       + long positions                                  -                     -                       -                   -                      -                  -                   -                -
       + short positions                                 -                     -                       -                   -                      -                  -                   -                -
     - Other                                             -                     -                       -                   -                      -                  -                   -                -
       + long positions                                  -                     -                       -                   -                      -                  -                   -                -
       + short positions                                 -                     -                       -                   -                      -                  -                   -                -
3.2 Without underlying security                          -                     -                       -                   -                      -                  -                   -                -
     - Options                                           -                     -                       -                   -                      -                  -                   -                -
       + long positions                                  -                     -                       -                   -                      -                  -                   -                -
       + short positions                                 -                     -                       -                   -                      -                  -                   -                -
     - Other                                             -                     -                       -                   -                      -                  -                   -                -
       + long positions                                  -                     -                       -                   -                      -                  -                   -                -
       + short positions                                 -                     -                       -                   -                      -                  -                   -                -




188
Banking 1.3 distribution for residual maturity (the date of re-pricing) of assets and liabilities - Currency YEN
                                                                                    From 3 months         From 6 months            From one year to         From 5 years                              Life
                 Type / Remaining       On demand           To 3 months                                                                                                        Over 10 years
                                                                                     to 6 months             to 1 year                to 5 years             to 10 years                           indefinite



1.   Cash assets                                    2.810                   2.116                   463                       7                         -                  -                   -                  -
1.1 Debt securities                                  521                        -                     -                        -                        -                  -                   -                  -
     - with early redemption option                     -                       -                     -                        -                        -                  -                   -                  -
     - other                                         521                        -                     -                        -                        -                  -                   -                  -
1.2 Loans to banks                                      -                       -                     -                        -                        -                  -                   -                  -
1.3 Loans to customers                              2.289                   2.116                   463                       7                         -                  -                   -                  -
     - current accounts                             2.154                       -                     -                        -                        -                  -                   -                  -
     - other loans                                   135                    2.116                   463                       7                         -                  -                   -                  -
       - with early redemption option                   -                       -                     -                        -                        -                  -                   -                  -
       - other                                       135                    2.116                   463                       7                         -                  -                   -                  -
2.   Cash liabilities                                293                  241.479               122.258                   37.396                      118                  -                   -                  -
2.1 Due to customers                                   6                        -                     -                        -                        -                  -                   -                  -
     - current accounts                                6                        -                     -                        -                        -                  -                   -                  -
     - other payables                                   -                       -                     -                        -                        -                  -                   -                  -
       - with early redemption option                   -                       -                     -                        -                        -                  -                   -                  -
       - other                                          -                       -                     -                        -                        -                  -                   -                  -
2.2 Due to banks                                        -                   5.537                     -                        -                        -                  -                   -                  -
     - current accounts                                 -                       -                     -                        -                        -                  -                   -                  -
     - other payables                                   -                   5.537                     -                        -                        -                  -                   -                  -
2.3 Debt securities                                  287                  235.942               122.258                   37.396                      118                  -                   -                  -
     - with early redemption option                     -                       -                     -                        -                        -                  -                   -                  -
     - other                                         287                  235.942               122.258                   37.396                      118                  -                   -                  -
2.4 Other liabilities                                   -                       -                     -                        -                        -                  -                   -                  -
     - with early redemption option                     -                       -                     -                        -                        -                  -                   -                  -
     - other                                            -                       -                     -                        -                        -                  -                   -                  -
3.   Financial derivatives                              -                 379.241                     -                        -                        -                  -                   -                  -
3.1 With underlying security                            -                       -                     -                        -                        -                  -                   -                  -
     - Options                                          -                       -                     -                        -                        -                  -                   -                  -
       + long positions                                 -                       -                     -                        -                        -                  -                   -                  -
       + short positions                                -                       -                     -                        -                        -                  -                   -                  -
     - Other                                            -                       -                     -                        -                        -                  -                   -                  -
       + long positions                                 -                       -                     -                        -                        -                  -                   -                  -
       + short positions                                -                       -                     -                        -                        -                  -                   -                  -
3.2 Without underlying security                         -                 379.241                     -                        -                        -                  -                   -                  -
     - Options                                          -                       -                     -                        -                        -                  -                   -                  -
       + long positions                                 -                       -                     -                        -                        -                  -                   -                  -
       + short positions                                -                       -                     -                        -                        -                  -                   -                  -
     - Other                                            -                 379.241                     -                        -                        -                  -                   -                  -
       + long positions                                 -                 379.241                     -                        -                        -                  -                   -                  -
       + short positions                                -                       -                     -                        -                        -                  -                   -                  -




                                                                                                                                                                                                                189
Banking 1.4 distribution for residual maturity (the date of re-pricing) of assets and liabilities - Currency CHF


                                                                                From 3 months         From 6 months       From one year to       From 5 years                              Life
                 Type / Remaining       On demand         To 3 months                                                                                               Over 10 years
                                                                                 to 6 months             to 1 year           to 5 years           to 10 years                           indefinite



1.   Cash assets                                    645                 1.759                   217                   -                      -                  -                   -                -
1.1 Debt securities                                   -                     -                     -                   -                      -                  -                   -                -
     - with early redemption option                   -                     -                     -                   -                      -                  -                   -                -
     - other                                          -                     -                     -                   -                      -                  -                   -                -
1.2 Loans to banks                                  594                     -                     -                   -                      -                  -                   -                -
1.3 Loans to customers                               51                 1.759                   217                   -                      -                  -                   -                -
     - current accounts                              51                     -                     -                   -                      -                  -                   -                -
     - other loans                                    -                 1.759                   217                   -                      -                  -                   -                -
       - with early redemption option                 -                     -                     -                   -                      -                  -                   -                -
       - other                                        -                 1.759                   217                   -                      -                  -                   -                -
2.   Cash liabilities                               414                 2.429                     -                   -                      -                  -                   -                -
2.1 Due to customers                                414                     -                     -                   -                      -                  -                   -                -
     - current accounts                             414                     -                     -                   -                      -                  -                   -                -
     - other payables                                 -                     -                     -                   -                      -                  -                   -                -
       - with early redemption option                 -                     -                     -                   -                      -                  -                   -                -
       - other                                        -                     -                     -                   -                      -                  -                   -                -
2.2 Due to banks                                      -                 2.429                     -                   -                      -                  -                   -                -
     - current accounts                               -                     -                     -                   -                      -                  -                   -                -
     - other payables                                 -                 2.429                     -                   -                      -                  -                   -                -
2.3 Debt securities                                   -                     -                     -                   -                      -                  -                   -                -
     - with early redemption option                   -                     -                     -                   -                      -                  -                   -                -
     - other                                          -                     -                     -                   -                      -                  -                   -                -
2.4 Other liabilities                                 -                     -                     -                   -                      -                  -                   -                -
     - with early redemption option                   -                     -                     -                   -                      -                  -                   -                -
     - other                                          -                     -                     -                   -                      -                  -                   -                -
3.   Financial derivatives                            -                     -                     -                   -                      -                  -                   -                -
3.1 With underlying security                          -                     -                     -                   -                      -                  -                   -                -
     - Options                                        -                     -                     -                   -                      -                  -                   -                -
       + long positions                               -                     -                     -                   -                      -                  -                   -                -
       + short positions                              -                     -                     -                   -                      -                  -                   -                -
     - Other                                          -                     -                     -                   -                      -                  -                   -                -
       + long positions                               -                     -                     -                   -                      -                  -                   -                -
       + short positions                              -                     -                     -                   -                      -                  -                   -                -
3.2 Without underlying security                       -                     -                     -                   -                      -                  -                   -                -
     - Options                                        -                     -                     -                   -                      -                  -                   -                -
       + long positions                               -                     -                     -                   -                      -                  -                   -                -
       + short positions                              -                     -                     -                   -                      -                  -                   -                -
     - Other                                          -                     -                     -                   -                      -                  -                   -                -
       + long positions                               -                     -                     -                   -                      -                  -                   -                -
       + short positions                              -                     -                     -                   -                      -                  -                   -                -




190
Banking 1.5 distribution for residual maturity (the date of re-pricing) of assets and liabilities - Currency GBP


                                                                                From 3 months         From 6 months       From one year to       From 5 years                              Life
                 Type / Remaining       On demand           To 3 months                                                                                             Over 10 years
                                                                                 to 6 months             to 1 year           to 5 years           to 10 years                           indefinite


1.   Cash assets                                    1.107                 464                     -                   -                      -                  -                   -                  -
1.1 Debt securities                                     -                   -                     -                   -                      -                  -                   -                  -
     - with early redemption option                     -                   -                     -                   -                      -                  -                   -                  -
     - other                                            -                   -                     -                   -                      -                  -                   -                  -
1.2 Loans to banks                                   916                    -                     -                   -                      -                  -                   -                  -
1.3 Loans to customers                               191                  464                     -                   -                      -                  -                   -                  -
     - current accounts                                 -                   -                     -                   -                      -                  -                   -                  -
     - other loans                                   191                  464                     -                   -                      -                  -                   -                  -
       - with early redemption option                   -                   -                     -                   -                      -                  -                   -                  -
       - other                                       191                  464                     -                   -                      -                  -                   -                  -
2.   Cash liabilities                               1.257                 351                   135                   -                      -                  -                   -                  -
2.1 Due to customers                                1.257                   -                     -                   -                      -                  -                   -                  -
     - current accounts                             1.257                   -                     -                   -                      -                  -                   -                  -
     - other payables                                   -                   -                     -                   -                      -                  -                   -                  -
       - with early redemption option                   -                   -                     -                   -                      -                  -                   -                  -
       - other                                          -                   -                     -                   -                      -                  -                   -                  -
2.2 Due to banks                                        -                   -                     -                   -                      -                  -                   -                  -
     - current accounts                                 -                   -                     -                   -                      -                  -                   -                  -
     - other payables                                   -                   -                     -                   -                      -                  -                   -                  -
2.3 Debt securities                                     -                 351                   135                   -                      -                  -                   -                  -
     - with early redemption option                     -                   -                     -                   -                      -                  -                   -                  -
     - other                                            -                 351                   135                   -                      -                  -                   -                  -
2.4 Other liabilities                                   -                   -                     -                   -                      -                  -                   -                  -
     - with early redemption option                     -                   -                     -                   -                      -                  -                   -                  -
     - other                                            -                   -                     -                   -                      -                  -                   -                  -
3.   Financial derivatives                              -                   -                     -                   -                      -                  -                   -                  -
3.1 With underlying security                            -                   -                     -                   -                      -                  -                   -                  -
     - Options                                          -                   -                     -                   -                      -                  -                   -                  -
       + long positions                                 -                   -                     -                   -                      -                  -                   -                  -
       + short positions                                -                   -                     -                   -                      -                  -                   -                  -
     - Other                                            -                   -                     -                   -                      -                  -                   -                  -
       + long positions                                 -                   -                     -                   -                      -                  -                   -                  -
       + short positions                                -                   -                     -                   -                      -                  -                   -                  -
3.2 Without underlying security                         -                   -                     -                   -                      -                  -                   -                  -
     - Options                                          -                   -                     -                   -                      -                  -                   -                  -
       + long positions                                 -                   -                     -                   -                      -                  -                   -                  -
       + short positions                                -                   -                     -                   -                      -                  -                   -                  -
     - Other                                            -                   -                     -                   -                      -                  -                   -                  -
       + long positions                                 -                   -                     -                   -                      -                  -                   -                  -
       + short positions                                -                   -                     -                   -                      -                  -                   -                  -




                                                                                                                                                                                                     191
Banking 1.6 distribution for residual maturity (the date of re-pricing) of assets and liabilities - Currency OTHER CURRENCIES


                                                                             From 3 months       From 6 months       From one year to       From 5 years                              Life
                 Type / Remaining       On demand         To 3 months                                                                                          Over 10 years
                                                                              to 6 months           to 1 year           to 5 years           to 10 years                           indefinite



1.   Cash assets                                    116                 69                   -                   -                      -                  -                   -                -
1.1 Debt securities                                   -                  -                   -                   -                      -                  -                   -                -
     - with early redemption option                   -                  -                   -                   -                      -                  -                   -                -
     - other                                          -                  -                   -                   -                      -                  -                   -                -
1.2 Loans to banks                                   24                  -                   -                   -                      -                  -                   -                -
1.3 Loans to customers                               92                 69                   -                   -                      -                  -                   -                -
     - current accounts                               -                  -                   -                   -                      -                  -                   -                -
     - other loans                                   92                 69                   -                   -                      -                  -                   -                -
       - with early redemption option                 -                  -                   -                   -                      -                  -                   -                -
       - other                                       92                 69                   -                   -                      -                  -                   -                -
2.   Cash liabilities                               313                  -                   -                   -                      -                  -                   -                -
2.1 Due to customers                                108                  -                   -                   -                      -                  -                   -                -
     - current accounts                             108                  -                   -                   -                      -                  -                   -                -
     - other payables                                 -                  -                   -                   -                      -                  -                   -                -
       - with early redemption option                 -                  -                   -                   -                      -                  -                   -                -
       - other                                        -                  -                   -                   -                      -                  -                   -                -
2.2 Due to banks                                    205                  -                   -                   -                      -                  -                   -                -
     - current accounts                             205                  -                   -                   -                      -                  -                   -                -
     - other payables                                 -                  -                   -                   -                      -                  -                   -                -
2.3 Debt securities                                   -                  -                   -                   -                      -                  -                   -                -
     - with early redemption option                   -                  -                   -                   -                      -                  -                   -                -
     - other                                          -                  -                   -                   -                      -                  -                   -                -
2.4 Other liabilities                                 -                  -                   -                   -                      -                  -                   -                -
     - with early redemption option                   -                  -                   -                   -                      -                  -                   -                -
     - other                                          -                  -                   -                   -                      -                  -                   -                -
3.   Financial derivatives                            -                  -                   -                   -                      -                  -                   -                -
3.1 With underlying security                          -                  -                   -                   -                      -                  -                   -                -
     - Options                                        -                  -                   -                   -                      -                  -                   -                -
       + long positions                               -                  -                   -                   -                      -                  -                   -                -
       + short positions                              -                  -                   -                   -                      -                  -                   -                -
     - Other                                          -                  -                   -                   -                      -                  -                   -                -
       + long positions                               -                  -                   -                   -                      -                  -                   -                -
       + short positions                              -                  -                   -                   -                      -                  -                   -                -
3.2 Without underlying security                       -                  -                   -                   -                      -                  -                   -                -
     - Options                                        -                  -                   -                   -                      -                  -                   -                -
       + long positions                               -                  -                   -                   -                      -                  -                   -                -
       + short positions                              -                  -                   -                   -                      -                  -                   -                -
     - Other                                          -                  -                   -                   -                      -                  -                   -                -
       + long positions                               -                  -                   -                   -                      -                  -                   -                -
       + short positions                              -                  -                   -                   -                      -                  -                   -                -




192
2. Bank portfolio: internal models and other methods for sensitivity analysis

The exposure to interest rate Banca Popolare di Ancona, measured by the sensitivity
analysis in a scenario of parallel shift of the yield curve equal to
100 bp, came at the end of the period, before deduction of the effect arising from the
phenomenon on lapses, to -25.93 million (EUR -34.75 million euro at December 31, 2008).
The measure of risk, net of impact of the phenomenon on lapses, totaled EUR -8.82 million
(EUR -20.51 million at December 31, 2008), accounting for 1.05% of Equity supervision,
compared to the threshold - defined by the Policy Group Financial Risks for Banca Popolare
di Ancona on this indicator - equal to 1% of regulatory capital. During the month of
February 2010 were entered into derivatives in order to bring the exposure to a level below
that threshold. Net of the above covers the exposure to interest rate risk of Banca Popolare
di Ancona amounts to - 7.14 million euro, equal to 0.85% of regulatory capital. The
exposure, however, include approximately EUR -1.82 million related to interest rate swaps
on bond firm commitment still in placement at December 31, 2009, excluded from the
calculations. Excluding this contribution to the exposure to interest rate risk amounted to -
5.31 million euro, or 0.63% of regulatory capital.
The table below shows the risk measures identified in the periods cited in a scenario of
parallel variation of the reference rates of 200 bp, consistent with the requirements of
prudential regulation, related to the regulatory capital at period end.

                                           Risk indicators - annual average                                               Year 2009    Year 2008

 parallel shift of +200 bp
 sensitivity / regulatory capital                                                                                               2.5%       2.8%




                                           Risk indicators - point values                                                31/12/2009    31/12/2008

 parallel shift of +200 bp
 sensitivity / regulatory capital                                                                                               1.8%       0.4%




At December 31, 2009, the impact on net interest income, assuming the yield curve shift
reference of 100 basis point equals 8.81 million euro, while in case of reduction of the same
(-100 bp) the impact on net interest income is estimated at EUR -14.96 million. These levels
of exposure include the effect on the viscosity of sight items (both in terms of elasticity of the
transfer rate variations from the reference rates to domestic rates, which in terms of delay of
implementation of the changes themselves).
Here are profiles of capital to the date of repricing and the decomposition of the sensitivity
(100 bp) for time buckets.

           Profile of Gap Period                                                                       Cut-off date: 31/12/2009


             3 000
Millions




             2 000


             1 000


                 0


             -1 000


             -2 000


             -3 000
                      VIEW   1M      3M      6M      1Y      2Y       3Y      4Y   5Y      7Y    10Y     15Y      20Y    >20Y

                              Imbalance Active /            Hedging
                              Passive                       derivatives            Overall Gap           Lapses




                                                                                                                                                    193
           Sensitivity bucket: Scenario 100 bp                                                      Cut-off date: 31/12/2009


              15
Millions




              10

               5

               0

              -5

             -10

             -15

             -20
                   VIEW   1M      3M       6M       1Y    2Y      3Y      4Y    5Y       7Y   10Y   15Y       20Y      >20Y


                             Imbalance Active / Passive   Hedging derivatives   Lapses                    Total Sensitivity




 In the banking sector, identifies the following "sub-portfolios":
              •      AFS Portfolio - available for sale: consists of government bonds in order to guarantee
                         some action.
              •      Portfolio LR - Loans and Receivable: consists of postal savings.

 Background information indicates that at the end of December, the total VaR of the portfolio
 of bank Banca Popolare di Ancona stood at about 219,002 euro (217,991 euro at June 30,
 2009) with a NAV of around EUR 28 million (28 million at June 30 2009).




 194
2.3 Foreign exchange risk

Currency risk is the risk of incurring losses, due to adverse changes in the rates of foreign
exchange, on all positions held by the Bank, regardless of the portfolio allocation.

Qualitative information

A. General, management processes and methods for measuring exchange rate risk

ALM in the context of the analysis conducted by Risk Management area of the Parent, the
exposure to exchange rate risk is determined by the methodology proposed by Bank of Italy
and is quantified in 8% of the "net open position in foreign exchange," where the latter is
more than 2 percent of the capital.

The "net open position in foreign exchange" is determined:
   1. the net position in each currency and gold;
   2. converting the net positions in euro on the basis of the exchange rate or price for
       gold;
   3. adding, separately, all net long positions and all net short positions;

The higher of the total net long positions and the total net short positions is the "net open
position in foreign exchange."


B. Hedging foreign exchange risk

The foreign exchange market operations carried out by Group Treasury is working through
instruments such as forward exchange transactions, forex swaps, currency swaps and
options in domestic changes, optimizing the profile of risks arising from currency positions
of the Group.




    195
Quantitative information

The exposure to currency risk, as determined by the methodology described above, is void
as of December 31, 2009.


1. Distribution by currency denomination of assets and liabilities and derivatives


                                                            Curre
                                                            ncies


             Items
                             DOLLAR       POUND   DOLLAR                       FRANCO   OTHER
                                                 CANADIA       JAPANESE                CURREN
                              USA        ENGLISH       N            YEN          SWISS    CIES


A. Financial assets           38.823        1.574    163              5.412       2.625       24
A.1 Debt                             6           -      -                  -            -        -
A.2 Equity                           -           -      -                  -            -        -
A.3 Loans to banks            23.150          916       -               521         594       24
A.4 Loans to customers        15.666          658    163              4.891       2.031        0
A.5 Other financial assets           -           -      -                  -            -        -
B. Other assets                  415          198     50                129         215       53
C. Financial liabilities      39.222        1.773    213            401.542       2.840       50
C.1 Due to banks                     -           -   155              5.535       2.427       50
C.2 Deposits from
customers                     38.564        1.257     58                  6         414          -
C.3 Debt                         658          516       -           396.001             -        -
C.4 Other financial
liabilities                          -           -      -                  -            -        -
D. Other liabilities                22           -      -                  -            -        -
E. Financial derivatives             -           -      -           379.241             -        -
E.1 Options                          -           -      -                  -            -        -
 E.1.1 Long Positions         52.012             -      -                  -            -   3.775
 E.1.2 Short positions        52.012             -      -                  -            -   3.775
E.1 Other derivatives                -           -      -           379.241             -        -
 E.1.1 Long Positions         14.830             -      -           379.241             -        -
 E.1.2 Short positions        14.830             -      -                  -            -        -
Total assets                 106.080        1.773    213            384.782       2.840     3.852
Total liabilities            106.086        1.773    213            401.542       2.840     3.825
ANNUAL REPORT                     (6)          (0)    (0)           (16.760)         (0)       28




2. Internal models and other methodologies for sensitivity analysis

See what is mentioned in the same part on the "interest rate risk and price" (section 2.1-
2.2).




196
2.4 Derivative financial
instruments A. DERIVATIVES

A.1 Regulatory trading portfolio: notional end of period and average


                                                            Total 31/12/2009                            Total 31/12/2008

     Asset / Type of derivative
                                                                          Central
                                                   Over the counter       counterparts       Over the counter       Central counterparts

1. Debt and interest rates                                  1.454.426                    -            1.615.392                            -
  a) Options                                                  132.412                    -              128.972                            -
  b) Swaps                                                  1.322.014                    -            1.486.420                            -
  c) Forward                                                          -                  -                      -                          -
  d) Futures                                                          -                  -                      -                          -
  e) Other                                                            -                  -                      -                          -
2. Equities and stock indexes                                         -                  -                      -                          -
  a) Options                                                          -                  -                      -                          -
  b) Swaps                                                            -                  -                      -                          -
  c) Forward                                                          -                  -                      -                          -
  d) Futures                                                          -                  -                      -                          -
  e) Other                                                            -                  -                      -                          -
3. Currency and gold                                          135.682                    -              194.349                            -
  a) Options                                                  111.574                    -              163.928                            -
  b) Swaps                                                            -                  -                      -                          -
  c) Forward                                                   24.108                    -               30.421                            -
  d) Futures                                                          -                  -                      -                          -
  e) Other                                                            -                  -                      -                          -
4) Goods                                                              -                  -                      -                          -
5) Other underlying                                                   -                  -                      -                          -
                                           Total           1.590.108                     -            1.809.741                            -
                                  Average values           1.658.584                     -            1.900.574                            -




                                                                                                                                               197
A.2 Banking: notional end of period and average
A.2.1 Hedging


                                                             Total 31/12/2009                            Total 31/12/2008

      Asset / Type of derivative
                                                                           Central
                                                    Over the counter       counterparts       Over the counter       Central counterparts

1. Debt and interest rates                                   2.874.825                    -            1.686.165                            -
  a) Options                                                   181.900                    -              230.882                            -
  b) Swaps                                                   2.692.925                    -            1.455.283                            -
  c) Forward                                                           -                  -                      -                          -
  d) Futures                                                           -                  -                      -                          -
  e) Other                                                             -                  -                      -                          -
2. Equities and stock indexes                                          -                  -                      -                          -
  a) Options                                                           -                  -                      -                          -
  b) Swaps                                                             -                  -                      -                          -
  c) Forward                                                           -                  -                      -                          -
  d) Futures                                                           -                  -                      -                          -
  e) Other                                                             -                  -                      -                          -
3. Currency and gold                                           379.241                    -            1.240.371                            -
  a) Options                                                           -                  -                      -                          -
  b) Swaps                                                             -                  -                      -                          -
  c) Forward                                                           -                  -                      -                          -
  d) Futures                                                           -                  -                      -                          -
  e) Other                                                     379.241                    -            1.240.371                            -
4) Goods                                                               -                  -                      -                          -
5) Other underlying                                                    -                  -                      -                          -
                                            Total           3.254.066                     -            2.926.536                            -
                                   Average values           3.347.127                     -            2.787.507                            -




198
A.2.2 Other derivatives


                                                               Total 31/12/2009                            Total 31/12/2008

     Asset / Type of derivative
                                                                             Central
                                                      Over the counter       counterparts       Over the counter       Central counterparts

1. Debt and interest rates                                               -                  -                      -                          -
  a) Options                                                             -                  -                      -                          -
  b) Swaps                                                               -                  -                      -                          -
  c) Forward                                                             -                  -                      -                          -
  d) Futures                                                             -                  -                      -                          -
  e) Other                                                               -                  -                      -                          -
2. Equities and stock indexes                                        604                    -                 1.220                           -
  a) Options                                                         604                    -                 1.220                           -
  b) Swaps                                                               -                  -                      -                          -
  c) Forward                                                             -                  -                      -                          -
  d) Futures                                                             -                  -                      -                          -
  e) Other                                                               -                  -                      -                          -
Underlying asset / Derivative type                                       -                  -                      -                          -
  a) Options                                                             -                  -                      -                          -
  b) Swaps                                                               -                  -                      -                          -
  c) Forward                                                             -                  -                      -                          -
  d) Futures                                                             -                  -                      -                          -
  e) Other                                                               -                  -                      -                          -
4) Goods                                                                 -                  -                      -                          -
5) Other underlying                                                      -                  -                      -                          -
                                              Total                  604                    -                1.220                            -
                                     Average values                  604                    -                1.161                            -




                                                                                                                                                  199
A.3 Financial derivatives: the gross positive fair value - breakdown products


                                                              Positive fair value                         Positive fair value


             Wallets / Type of derivative                    Total 31/12/2009                            Total 31/12/2008

                                                                           Central
                                                    Over the counter       counterparts       Over the counter       Central counterparts

1. Regulatory trading portfolio                                 19.993                    -               26.059                            -
  a) Options                                                       982                    -                 1.957                           -
  b) Interest rate swap                                         18.646                    -               23.038                            -
  c) Cross currency swaps                                              -                  -                      -                          -
  d) Equity swap                                                       -                  -                      -                          -
  e) Forward                                                       365                    -                 1.064                           -
  f) Futures                                                           -                  -                      -                          -
  g) Other                                                             -                  -                      -                          -
2. Banking book - cover                                         33.704                    -              149.360                            -
  a) Options                                                           -                  -                      -                          -
  b) Interest rate swap                                         32.421                    -               18.247                            -
  c) Cross currency swaps                                              -                  -                      -                          -
  d) Equity swap                                                       -                  -                      -                          -
  e) Forward                                                           -                  -                      -                          -
  f) Futures                                                           -                  -                      -                          -
  g) Other                                                       1.283                    -              131.113                            -
3. Banking - Other derivatives                                     216                    -                  125                            -
  a) Options                                                       216                    -                  125                            -
  b) Interest rate swap                                                -                  -                      -                          -
  c) Cross currency swaps                                              -                  -                      -                          -
  d) Equity swap                                                       -                  -                      -                          -
  e) Forward                                                           -                  -                      -                          -
  f) Futures                                                           -                  -                      -                          -
  g) Other                                                             -                  -                      -                          -
                                            Total               53.913                    -              175.544                            -




200
A.4 Financial derivatives: Gross negative fair value - breakdown products


                                                              Negative fair value                         Negative fair value


             Wallets / Type of derivative                    Total 31/12/2009                            Total 31/12/2008

                                                                           Central
                                                    Over the counter       counterparts       Over the counter        Central counterparts

1. Regulatory trading portfolio                                 20.026                    -               24.898                             -
  a) Options                                                       982                    -                 1.957                            -
  b) Interest rate swap                                         18.679                    -               21.877                             -
  c) Cross currency swaps                                              -                  -                       -                          -
  d) Equity swap                                                       -                  -                       -                          -
  e) Forward                                                       365                    -                 1.064                            -
  f) Futures                                                           -                  -                       -                          -
  g) Other                                                             -                  -                       -                          -
2. Banking book - cover                                         47.811                    -               51.314                             -
  a) Options                                                           -                  -                       -                          -
  b) Interest rate swap                                         37.797                    -               34.104                             -
  c) Cross currency swaps                                              -                  -                       -                          -
  d) Equity swap                                                       -                  -                       -                          -
  e) Forward                                                           -                  -                       -                          -
  f) Futures                                                           -                  -                       -                          -
  g) Other                                                      10.014                    -               17.210                             -
3. Banking - Other derivatives                                     180                    -                      81                          -
  a) Options                                                       180                    -                      81                          -
  b) Interest rate swap                                                -                  -                       -                          -
  c) Cross currency swaps                                              -                  -                       -                          -
  d) Equity swap                                                       -                  -                       -                          -
  e) Forward                                                           -                  -                       -                          -
  f) Futures                                                           -                  -                       -                          -
  g) Other                                                             -                  -                       -                          -
                                            Total               68.017                    -               76.293                             -




                                                                                                                                                 201
A.5 OTC financial derivatives - Regulatory trading portfolio: notional amounts, fair value of the gross positive and
negative counterparts - contracts not covered by netting agreements

                                                    Governments and
                                                                           Other public                                                                         Non-financial
                                                       central banks
       Contracts not covered by netting agreement                              entities        Banks            Financial companies       Insurance companies     companies     Other entities
                                                        Central



Debt securities and interest rates
  - notional value                                                     -           19.291         1.086.423                   14.761                        -        322.228                11.723
  - positive fair value                                                -                  35            3.016                    865                        -         14.849                      97
  - negative fair value                                                -                   -           18.787                         -                     -             76                      30
  - future exposure                                                    -                  95            3.491                    128                        -           3.011                    148
2) Equity and equity indices and
  - notional value                                                     -                   -                -                         -                     -               -                      -
  - positive fair value                                                -                   -                -                         -                     -               -                      -
  - negative fair value                                                -                   -                -                         -                     -               -                      -
  - future exposure                                                    -                   -                -                         -                     -               -                      -
3) Currency and gold
  - notional value                                                     -                   -           67.923                         -                     -         67.759                       -
  - positive fair value                                                -                   -             775                          -                     -            357                       -
  - negative fair value                                                -                   -             357                          -                     -            775                       -
  - future exposure                                                    -                   -             942                          -                     -            939                       -
4) Other assets
  - notional value                                                     -                   -                -                         -                     -               -                      -
  - positive fair value                                                -                   -                -                         -                     -               -                      -
  - negative fair value                                                -                   -                -                         -                     -               -                      -
  - future exposure                                                    -                   -                -                         -                     -               -                      -




202
A.7 OTC financial derivatives - the banking book: notional amounts, fair value of the gross positive and negative
counterparts - contracts not covered by netting agreements

                                                Governments and
                                                                      Other public                        Financial
                                                 central banks                                                                 Company        Enterprises not
   Contracts not covered by netting agreement                         entities           Banks            companies                                                   Other entities
                                                                                                                              Insurance
                                                    Central                                                                   companies          financial



Debt securities and interest rates
  - notional value                                                -                  -      2.874.825                     -               -                       -                      -
  - positive fair value                                           -                  -           32.421                   -               -                       -                      -
  - negative fair value                                           -                  -           37.797                   -               -                       -                      -
  - future exposure                                               -                  -           21.120                   -               -                       -                      -
2) Equity and equity indices and
  - notional value                                                -                  -             302                    -               -                       -                    302
  - positive fair value                                           -                  -             216                    -               -                       -                      -
  - negative fair value                                           -                  -                -                   -               -                       -                    180
  - future exposure                                               -                  -              18                    -               -                       -                     18
3) Currency and gold
  - notional value                                                -                  -                -               5.474               -                  42.060             331.707
  - positive fair value                                           -                  -                -                   -               -                     127               1.156
  - negative fair value                                           -                  -                -                271                -                   1.545               8.198
  - future exposure                                               -                  -                -                 55                -                     421               3.322
4) Other assets
  - notional value                                                -                  -                -                   -               -                       -                      -
  - positive fair value                                           -                  -                -                   -               -                       -                      -
  - negative fair value                                           -                  -                -                   -               -                       -                      -
  - future exposure                                               -                  -                -                   -               -                       -                      -




                                                                                                                                                                                             203
A.9 residual life of OTC derivatives: notional



                                                                                                       Over 1 year and up to 5
                            Underlying / Residual life                            Up to 1 year                                   Over 5 years       Total
                                                                                                                years



Regulatory trading portfolio
  A.1 Financial derivatives on debt securities and interest rates                         820.062                     324.810            309.554      1.454.426
  A.2 Financial derivatives on equity securities and stock indexes                                 -                         -                  -             -
  A.3 Financial derivatives on exchange rates and gold                                    122.544                      13.138                   -       135.682
  A.4 Financial derivatives on other instruments                                                   -                         -                  -             -
B) Banking
  B.1 Financial derivatives on debt securities and interest rates                         314.306                   1.728.826            831.693      2.874.825
  B.2 Financial derivatives on equity securities and stock indexes                               604                         -                  -           604
  B.3 Financial derivatives on exchange rates and gold                                    379.241                            -                  -       379.241
  B.4 Financial derivatives on other instruments                                                   -                         -                  -             -
                                                             Total   31/12/2009         1.636.757                   2.066.774          1.141.247      4.844.778
                                                             Total   31/12/2008         2.596.956                   1.225.035            915.505      4.737.496




B. CREDIT DERIVATIVES

There are no credit derivatives.




204
Section 3 Liquidity Risk

Qualitative information

A. General, management processes and methods for measuring liquidity risk

Liquidity risk refers to the ability or otherwise of the Bank to meet its payment obligations
and / or raise additional funds on the market (funding liquidity risk), or the possibility that
the value of a possible liquidation of certain assets differs significantly the current market
value (asset liquidity risk).
The consolidated and individual liquidity risk is regulated in the context of policy
Financial Risks, which in addition to the definition of exposure limits and thresholds for
early warning, also declined the rules for pursuing and maintaining, through policies for the
collection and use of coordinated and efficient balance of the structural
Network banks and product companies.
Finally, the policy objective of making the uniform for all companies within the Group and
the means of intervention that the criteria for the identification of economic conditions,
possibly identifying in advance the specific exceptions.
Principals of liquidity risk on behalf of the network banks are centralized at the parent
company and compete:
   •      the Macro Finance Area (garrison level 1) which provides daily monitoring of liquidity
          and risk management in the context of the defined limits;
   •      Area at Risk Management (garrison level 2), which is responsible for the
          measurement of synthetic risk indicators and periodic testing of the limits

With particular reference to the position in terms of structural balance, liquidity risk is
monitored primarily through a model in which liquidity gap is determined by the temporal
evolution of the net cash flows in order to find out any problems in liquidity conditions hold.
The liquidity needs of the overall gap is determined as the sum of negative (outflows exceed
inflows) found for each time band. The possible positive gap found in a band is led to
reduction of negative gap relative to successive time bands.
The cash requirements so determined shall be compared with the total liquidity available -
consisting of assets and highly liquid assets readily convertible into cash - so to quantify the
degree of risk coverage generated by the position taken.




    205
Quantitative information
1.1 Breakdown by residual maturity of financial assets and liabilities - currency: Euro

                                                                                                             From one month
                                                                                                                                   From 3
                                                                From 1        From 7 days     From 15 days               to                          From 6        From one year to
                   Items / Time Brackets    On demand                                                                             months to 6                                         Over 5 years       Indefinite       Total
                                                            days to 7 days   15 days to     to 1 month         to 3 months                             to 1 year    to 5 years
                                                                                                                                   months


Cash assets                                             -                -              -                -                    -                  -             -                  -                  -                -                 -
A.1 Government bonds                                    -                -              -                -                    -                  -             -                  -                  -                -                 -
Listed debt securities                                  -                -              -                -                    -                  -             -                  -                  -                -                 -
Other debt securities                                   -                -              -                -                    -                  -             -                  -                  -                -                 -
A.4 Units in collective                                 -                -              -                -                    -                  -             -                  -                  -                -                 -
A.5 Loans                                               -                -              -                -                    -                  -             -                  -                  -                -                 -
   - banks                                              -                -              -                -                    -                  -             -                  -                  -                -                 -
   Customers                                            -                -              -                -                    -                  -             -                  -                  -                -                 -
Cash liabilities                                        -                -              -                -                    -                  -             -                  -                  -                -                 -
B.1 Deposits                                            -                -              -                -                    -                  -             -                  -                  -                -                 -
   - banks                                              -                -              -                -                    -                  -             -                  -                  -                -                 -
   Customers                                            -                -              -                -                    -                  -             -                  -                  -                -                 -
B.2 Debt securities                                     -                -              -                -                    -                  -             -                  -                  -                -                 -
B.3 Other liabilities                                   -                -              -                -                    -                  -             -                  -                  -                -                 -
Off-balance-sheet                                       -           3.011            339             2.613           24.770                     10      (36.115)                  -                  -                -           (5.372)
C.1 Financial derivatives with swap                     -                -              -                -                    -                  -             -                  -                  -                -                 -
   - long positions                                     -               54          6.110            4.992           21.492               8.821          19.579              6.569                   -                -           67.617
   - short positions                                    -               54          6.110            4.992           21.492               8.821          19.579              6.569                   -                -           67.617
C.2 financial derivatives without swap                  -            3.011           339             2.613           24.770                     10      (36.115)                  -                  -                -           (5.372)
   - long positions                                     -            4.414           505             2.639           28.541               5.338           9.960                   -                  -                -           51.397
   - short positions                                    -            1.403           166                26             3.771              5.328          46.075                   -                  -                -           56.769
C.3 Deposits and loans receivable                       -                -              -                -                    -                  -             -                  -                  -                -                 -
   - long positions                                     -                -              -                -                    -                  -             -                  -                  -                -                 -
   - short positions                                    -                -              -                -                    -                  -             -                  -                  -                -                 -
C.4 Irrevocable commitments to make loans               -                -              -                -                    -                  -             -                  -                  -                -                 -
   - long positions                                     -                -              -                -                    -                  -             -                  -                  -                -                 -
   - short positions                                    -                -              -                -                    -                  -             -                  -                  -                -                 -
C.5 Financial guarantees issued                         -                -              -                -                    -                  -             -                  -                  -                -                 -




206
                                                                1.2 Breakdown by residual maturity of financial assets and liabilities - currency: USD

                                                              From 1            From 7                         From 1            From 3            From 6            From one year
                                                                                                From 15                                                                         to
               Items / Time Brackets        On demand        7 days to         15 days to        days to 1 up to 3 months       months to 6       months to 1                            Over 5 years       Indefinite       Total
                                                                                                   month                                                                to 5 years
                                                               days              days                          months             months             year


Cash assets                                             14            565                428        1.526           1.811              1.980                     -         32.472                       -                -     38.796
A.1 Government bonds                                     -                 -                -            -              -                     -                  -               -                      -                -             -
Listed debt securities                                   -                 -                -            -              -                     -                  -               -                      -                -             -
Other debt securities                                    -                 -                -            -              -                     -                  -               6                      -                -             6
A.4 Units in collective                                  -                 -                -            -              -                     -                  -               -                      -                -             -
A.5 Loans                                               14               565             428        1.526           1.811               1.980                    -          32.466                      -                -      38.790
    - banks                                              -                 -                -            -              -                     -                  -          23.150                      -                -      23.150
    Customers                                           14               565             428        1.526           1.811               1.980                    -           9.316                      -                -      15.640
Cash liabilities                                        52                 -                -          11             143                  452                   -         38.561                   3                    -     39.222
B.1 Deposits                                             -                 -                -            -              -                     -                  -          38.561                  3                    -      38.564
    - banks                                              -                 -                -            -              -                     -                  -               -                      -                -             -
    Customers                                            -                 -                -            -              -                     -                  -          38.561                  3                    -      38.564
B.2 Debt securities                                     52                 -                -          11             143                  452                   -               -                      -                -           658
B.3 Other liabilities                                    -                 -                -            -              -                     -                  -               -                      -                -             -
Off-balance-sheet                                        -                 -                -            -                  -                 -                  -                   -                  -                -             -
C.1 Financial derivatives with swap                      -                 -                -            -              -                     -                  -               -                      -                -             -
    - long positions                                     -               56             6.193       5.012          21.554               7.664               17.018           6.569                      -                -      64.066
    - short positions                                    -               56             6.193       5.012          21.554               7.664               17.018           6.569                      -                -      64.066
C.2 financial derivatives without swap                   -                 -                -            -              -                     -                  -               -                      -                -             -
    - long positions                                     -                 -                -            -              -                     -               102                -                      -                -           102
    - short positions                                    -                 -                -            -              -                     -               102                -                      -                -           102
C.3 Deposits and loans receivable                        -                 -                -            -              -                     -                  -               -                      -                -             -
    - long positions                                     -                 -                -            -              -                     -                  -               -                      -                -             -
    - short positions                                    -                 -                -            -              -                     -                  -               -                      -                -             -
C.4 Irrevocable commitments to make loans                -                 -                -            -              -                     -                  -               -                      -                -             -
    - long positions                                     -                 -                -            -              -                     -                  -               -                      -                -             -
    - short positions                                    -                 -                -            -              -                     -                  -               -                      -                -             -
C.5 Financial guarantees issued                          -                 -                -            -              -                     -                  -               -                      -                -             -




      207
                                                                 1.3 Breakdown by residual maturity of financial assets and liabilities - currency: JPY

                                                               From 1            From 7                      From one month       From 3            From 6
                                                                                                 From 15                 to                                          From one year to
               Items / Time Brackets        On demand         7 days to         15 days to       days to 1                       months to 6       months to 1                             Over 5 years       Indefinite       Total
                                                                                                    month      to 3 months                                                to 5 years
                                                                days              days                                             months             year


Cash assets                                               6            132               268        1.120               727                 463              462                    7             2.688                    -      5.873
A.1 Government bonds                                      -                 -                -           -                   -                 -                 -                     -                  -                -             -
Listed debt securities                                    -                 -                -           -                   -                 -                 -                     -                  -                -             -
Other debt securities                                     -                 -                -           -                   -                 -                 -                     -                  -                -             -
A.4 Units in collective                                   -                 -                -           -                   -                 -                 -                     -                  -                -             -
A.5 Loans                                                 6               132            268         1.120              727                 463              462                    7              2.688                   -       5.873
    - banks                                               -                 -                -           -                   -                 -                 -                     -            521                    -           521
    Customers                                             6               132            268         1.120              727                 463              462                    7              2.167                   -       5.352
Cash liabilities                                        290        29.531             36.313       43.183          132.450            122.258            37.396                  124                      -                -    401.545
B.1 Deposits                                              3               451                -       3.229            1.855                    -                 -                  6                     -                -       5.544
    - banks                                               3               451                -       3.229            1.855                    -                 -                     -                  -                -       5.538
    Customers                                             -                 -                -           -                   -                 -                 -                  6                     -                -             6
B.2 Debt securities                                     287         29.080            36.313        39.954          130.595            122.258            37.396                 118                      -                -    396.001
B.3 Other liabilities                                     -                 -                -           -                   -                 -                 -                     -                  -                -             -
Off-balance-sheet                                         -                 -                -           -           (8.731)                   -                 -                     -                  -                -     (8.731)
C.1 Financial derivatives with swap                       -                 -                -           -                   -                 -                 -                     -                  -                -             -
    - long positions                                      -                 -                -           -                   -                 -                 -                     -                  -                -             -
    - short positions                                     -                 -                -           -                   -                 -                 -                     -                  -                -             -
C.2 financial derivatives without swap                    -                 -                -           -           (8.731)                   -                 -                     -                  -                -      (8.731)
    - long positions                                      -                 -                -           -            1.283                    -                 -                     -                  -                -       1.283
    - short positions                                     -                 -                -           -           10.014                    -                 -                     -                  -                -      10.014
C.3 Deposits and loans receivable                         -                 -                -           -                   -                 -                 -                     -                  -                -             -
    - long positions                                      -                 -                -           -                   -                 -                 -                     -                  -                -             -
    - short positions                                     -                 -                -           -                   -                 -                 -                     -                  -                -             -
C.4 Irrevocable commitments to make loans                 -                 -                -           -                   -                 -                 -                     -                  -                -             -
    - long positions                                      -                 -                -           -                   -                 -                 -                     -                  -                -             -
    - short positions                                     -                 -                -           -                   -                 -                 -                     -                  -                -             -
C.5 Financial guarantees issued                           -                 -                -           -                   -                 -                 -                     -                  -                -             -




208
                                                           1.4 Breakdown by residual maturity of financial assets and liabilities - currency: CHF

                                                                                                                                                   From one year
                                                        From 1           From 7                        From 1          From 3         From 6
                                                                                         From 15                                                              to
                                            On
                                            deman                                        days to 1     up to 3
               Items / Time Brackets        d           7 days to       15 days to         month       months        months to 6 months to 1         to 5 years Over 5 years       Indefinite       Total
                                                          days             days                        months         months        year


Cash assets                                         4               -             84               -       1.673             214               -            645                -                -      2.620
A.1 Government bonds                                -               -                -             -             -                -            -               -               -                -             -
Listed debt securities                              -               -                -             -             -                -            -               -               -                -             -
Other debt securities                               -               -                -             -             -                -            -               -               -                -             -
A.4 Units in collective                             -               -                -             -             -                -            -               -               -                -             -
A.5 Loans                                           4               -             84               -        1.673               214            -            645                -                -      2.620
   - banks                                          -               -                -             -             -                -            -            594                -                -           594
   Customers                                        4               -             84               -        1.673               214            -              51               -                -      2.026
Cash liabilities                                    2               -                -      2.427                -                -            -            414                -                -      2.843
B.1 Deposits                                        2               -                -       2.427               -                -            -            414                -                -      2.843
   - banks                                          2               -                -       2.427               -                -            -               -               -                -      2.429
   Customers                                        -               -                -             -             -                -            -            414                -                -           414
B.2 Debt securities                                 -               -                -             -             -                -            -               -               -                -             -
B.3 Other liabilities                               -               -                -             -             -                -            -               -               -                -             -
Off-balance-sheet                                   -               -                -             -             -                -            -               -               -                -             -
C.1 Financial derivatives with swap                 -               -                -             -             -                -            -               -               -                -             -
   - long positions                                 -               -                -             -             -                -            -               -               -                -             -
   - short positions                                -               -                -             -             -                -            -               -               -                -             -
C.2 financial derivatives without swap              -               -                -             -             -                -            -               -               -                -             -
   - long positions                                 -               -                -             -             -                -            -               -               -                -             -
   - short positions                                -               -                -             -             -                -            -               -               -                -             -
C.3 Deposits and loans receivable                   -               -                -             -             -                -            -               -               -                -             -
   - long positions                                 -               -                -             -             -                -            -               -               -                -             -
   - short positions                                -               -                -             -             -                -            -               -               -                -             -
C.4 Irrevocable commitments to make loans           -               -                -             -             -                -            -               -               -                -             -
   - long positions                                 -               -                -             -             -                -            -               -               -                -             -
   - short positions                                -               -                -             -             -                -            -               -               -                -             -
C.5 Financial guarantees issued                     -               -                -             -             -                -            -               -               -                -             -




     209
                                                                1.5 Breakdown by residual maturity of financial assets and liabilities - currency: GBP

                                                                                                                                                              From one year
                                                             From 1           From 7                      From 1            From 3            From 6
                                                                                              From 15                                                                    to
                                                                                              days to 1   up to 3
               Items / Time Brackets        On demand        7 days to       15 days to          month    months          months to 6       months to 1          to 5 years    Over 5 years       Indefinite       Total
                                                               days             days                      months           months              year

Cash assets                                             22            190              152          21              269                 -                 -            916                    -                -      1.570
A.1 Government bonds                                     -               -                -           -               -                 -                 -               -                   -                -             -
Listed debt securities                                   -               -                -           -               -                 -                 -               -                   -                -             -
Other debt securities                                    -               -                -           -               -                 -                 -               -                   -                -             -
A.4 Units in collective                                  -               -                -           -               -                 -                 -               -                   -                -             -
A.5 Loans                                               22            190              152           21             269                 -                 -             916                   -                -      1.570
    - banks                                              -               -                -           -               -                 -                 -             916                   -                -           916
    Customers                                           22            190              152           21             269                 -                 -               -                   -                -           654
Cash liabilities                                         -               -                -        367               14              135                  -          1.257                    -                -      1.773
B.1 Deposits                                             -               -                -           -               -                 -                 -           1.257                   -                -      1.257
    - banks                                              -               -                -           -               -                 -                 -               -                   -                -             -
    Customers                                            -               -                -           -               -                 -                 -           1.257                   -                -      1.257
B.2 Debt securities                                      -               -                -         367              14              135                  -               -                   -                -           516
B.3 Other liabilities                                    -               -                -           -               -                 -                 -               -                   -                -             -
Off-balance-sheet                                        -               -                -           -               -                 -                 -                -                  -                -             -
C.1 Financial derivatives with swap                      -               -                -           -               -                 -                 -               -                   -                -             -
    - long positions                                     -               -                -           -               -                 -                 -               -                   -                -             -
    - short positions                                    -               -                -           -               -                 -                 -               -                   -                -             -
C.2 financial derivatives without swap                   -               -                -           -               -                 -                 -               -                   -                -             -
    - long positions                                     -               -                -           -               -                 -                 -               -                   -                -             -
    - short positions                                    -               -                -           -               -                 -                 -               -                   -                -             -
C.3 Deposits and loans receivable                        -               -                -           -               -                 -                 -               -                   -                -             -
    - long positions                                     -               -                -           -               -                 -                 -               -                   -                -             -
    - short positions                                    -               -                -           -               -                 -                 -               -                   -                -             -
C.4 Irrevocable commitments to make loans                -               -                -           -               -                 -                 -               -                   -                -             -
    - long positions                                     -               -                -           -               -                 -                 -               -                   -                -             -
    - short positions                                    -               -                -           -               -                 -                 -               -                   -                -             -
C.5 Financial guarantees issued                          -               -                -           -               -                 -                 -               -                   -                -             -




210
                                                                 1.6 Breakdown by residual maturity of financial assets and liabilities - currency: OTHER
       CURRENCIES

                                                                                                          From one month
                                                             From 1          From 7                                            From 3             From 6
                                                                                             From 15                  to                                          From one year to
                   Items / Time Brackets    On demand       7 days to       15 days to                                        months to 6       months to 1                            Over 5 years       Indefinite       Total
                                                                                              days to 1
                                                                                                month       to 3 months                                               to 5 years
                                                              days            days                                              months             year


Cash assets                                             -               -                -            -                   -                 -                 -                    -                  -                -           -
A.1 Government bonds                                    -               -                -            -                   -                 -                 -                    -                  -                -           -
Listed debt securities                                  -               -                -            -                   -                 -                 -                    -                  -                -           -
Other debt securities                                   -               -                -            -                   -                 -                 -                    -                  -                -           -
A.4 Units in collective                                 -               -                -            -                   -                 -                 -                    -                  -                -           -
A.5 Loans                                               -               -                -            -                   -                 -                 -                    -                  -                -           -
    - banks                                             -               -                -            -                   -                 -                 -                    -                  -                -           -
    Customers                                           -               -                -            -                   -                 -                 -                    -                  -                -           -
Cash liabilities                                        -               -                -            -                   -                 -                 -                    -                  -                -           -
B.1 Deposits                                            -               -                -            -                   -                 -                 -                    -                  -                -           -
    - banks                                             -               -                -            -                   -                 -                 -                    -                  -                -           -
    Customers                                           -               -                -            -                   -                 -                 -                    -                  -                -           -
B.2 Debt securities                                     -               -                -            -                   -                 -                 -                    -                  -                -           -
B.3 Other liabilities                                   -               -                -            -                   -                 -                 -                    -                  -                -           -
Off-balance-sheet                                       -               -                -            -                   -                 -                 -                    -                  -                -           -
C.1 Financial derivatives with swap                     -               -                -            -                   -                 -                 -                    -                  -                -           -
    - long positions                                    -               -                -            -                   -           1.128               2.647                    -                  -                -       3.775
    - short positions                                   -               -                -            -                   -           1.128               2.647                    -                  -                -       3.775
C.2 financial derivatives without swap                  -               -                -            -                   -                 -                 -                    -                  -                -           -
    - long positions                                    -               -                -            -                   -                 -                 -                    -                  -                -           -
    - short positions                                   -               -                -            -                   -                 -                 -                    -                  -                -           -
C.3 Deposits and loans receivable                       -               -                -            -                   -                 -                 -                    -                  -                -           -
    - long positions                                    -               -                -            -                   -                 -                 -                    -                  -                -           -
    - short positions                                   -               -                -            -                   -                 -                 -                    -                  -                -           -
C.4 Irrevocable commitments to make loans               -               -                -            -                   -                 -                 -                    -                  -                -           -
    - long positions                                    -               -                -            -                   -                 -                 -                    -                  -                -           -
    - short positions                                   -               -                -            -                   -                 -                 -                    -                  -                -           -
C.5 Financial guarantees issued                         -               -                -            -                   -                 -                 -                    -                  -                -           -




      211
Section 4 Operational risk

Qualitative information

A. General, management processes and methods for measuring operational risk

S for operational risk means the risk of loss resulting from inadequate or failed internal
processes, people and systems or from external events.
Fall into this category, among other things, losses arising from fraud, human errors,
interruptions of operations, unavailability of systems, breaches of contract, natural
disasters. This definition includes legal risk of loss resulting from violations of laws or
regulations, contractual liability, tort or other disputes but excludes strategic and
reputational risk.
Operational risk is characterized by relations of cause and effect such that, compared to one
or more triggers, it will produce the injurious event, or effect, which is directly connectable
to an economic loss.
We define, therefore, the operating loss for all the negative economic effects arising from
incidents of an operational nature, recognized in the accounts and which would have an
impact on the income statement.
In preparation of operational risk management policies the UBI Banca Group has paid
special attention to the maintenance of an adequate risk profile consistent with the risk
appetite defined by top management. The Group policy provides that operational risks are
identified, measured and monitored in the context of the overall process
Operational Risk Management with the following objectives:
      identify the causes of adverse events which gave rise in operating losses and,
         consequently, increase profitability and improve management efficiency through the
         identification of critical areas, their monitoring el optimization of the control system;
      optimize mitigation policies and risk transfer such as, for example those of insurance,
         in light of the scope and the actual exposure to risk;
      el optimize the allocation of operational risk capital absorption and provisioning
         policies with the goal of creating value for shareholders;
      support decision making relating to opening of new business activities, products and
         systems;
      develop a culture of operational risk at the level of awareness throughout the business
         unit structure;
      meet the regulatory requirements of the New Basel Accord on regulatory capital of
         banks and banking groups.

In light of the regulatory framework defined by the publication of Circular 263 of
27/12/2006 from the Bank of Italy, the Bank shall adopt the Standardised Approach (TSA)
for calculating operational risk capital requirement and has initiated a process aimed at the
authorization request to the Supervisory Authority for the use of a model Internal type
Advanced (Advanced Measurement Approach, AMA) in combined use with the TSA method
(AMA partial, when used with "partial" means the adoption of the method for only a few AMA
Business Line), presently used for management purposes only.


Organizational Model

Operational risk pervades the entire hotel and is situated in each function and
organizational unit. It was therefore defined an organizational model for managing it assigns
tasks and responsibilities that both peripheral and central of the separate legal entities
involved in the Group. Inside the parent company was formed a committee
Operational Risk with tasks of verification and the overall process of Operational
Risk Management Area and in the context of Risk Management is also working on a specific
service ("Operational Risk") dedicated to the design, development and maintenance of
business methods for detection, measurement, monitoring and verification

212
of the effectiveness of mitigation of operational risk and related reporting systems. For the
design and development of methodological and structure of the AMA model as well as the
maintenance of the computing environment, the Operational Risk Management has the
support of the Service Models Methodologies and working inside area of Risk Management.
Inside Area of Risk Capital & Policies are also working on OpRisk & Service Financial
Policies, responsible, in collaboration with other organizational units, the definition of policy
management, control and mitigation of operational risks including those of insurance and
risk management Models and Process Validation Service, responsible for the validation
process.
The organizational model of the Bank is divided into four levels of responsibility:
     Contact Operational Risk (RRO) is responsible for its own legal entity in the context of
        the completion of the overall framework for operational risk management;
     Operational Risk Management Support Units (SROL) plays the main role of support to
        the Referee Operational Risk in the government's overall operational risk
        management process for the legal entity to which they belong;
     Risk Champion (RC) oversees the conduct of operational management of operational
        risks for its overall validity, in relation to their business area by coordinating and
        supporting the Risk Owners of reference. Supports the process of risk monitoring
        and participates in the drafting and implementation of mitigation strategies;
     Risk Owner (RO) is responsible for recognizing and reporting an operating loss of
        historical events and / or potential occurring / detect in the course of daily
        activities. Participates in the implementation of corrective actions and improvements
        reported higher levels and to reduce the level of risk exposure.


Management systems, measurement and control
The Operational Risk Management System consists of:
    a decentralized process of enumeration of operating losses (Loss Data Collection)
       designed to detect integrated and systemic adverse events occurred that resulted in
       an actual loss. The operating losses are recorded periodically reconciled with the
       accounting and updated in real time by Risk Owners and / or Risk Champion in a
       procedure, available on the intranet of the Group, with separate disclosure of the
       recoveries may be obtained, even through the activation of specific insurance policies
       ;
    a structured process of mapping and assessment of risk scenarios and the factors of
       business environment and internal control system relevant (Risk Assessment)
       inherent in the business areas of the Group, supported by a data processing system
       for its integrated management, with the intent to provide a self critique of operation
       in terms of potential exposure to the risk of future losses, adequacy of controls and
       mitigation measures in place;
     a database of operational losses suffered by the Italian system from 2003. The
       Group adheres to the initiative of DIPO Observatory launched by the ABI in terms of
       operational risks for the exchange of data loss in the system since its date of
       establishment;
    a system for measuring economic capital and regulatory capital absorption for
       determination of operational risk by business unit by the AMA and standardized
       method. With regard to operational risk measurement via AMA model currently
       implemented, subject to regular internal review and validation process, is kind and
       Loss Distribution Approach has been developed internally at Area Risk Management
       through the SAS OpRisk VaR calculation engine and integrating SAS through the
       adoption of the Bayesian method to the information sources described above
       (internal losses, external risk assessment).




    213
Reporting
To support the monitoring of operational risk has been realized a reporting system that
provides the information necessary for the proper management, measurement and
mitigation of risk undertaken by the Group.
This system is structured on the same level of liability under the organizational model to
support multiple information needs inherent in the federal model of
Group, with the aim of ensuring the standardization of information and allow for regular
review of operational risks undertaken preparatory to the definition of strategies and
management objectives consistent with the standards of acceptable risk.
Reporting for the corporate bodies, the top management of the Parent and the main
Bank / Group Companies and the Operational Risk Committee, is regularly arranged at the
central level by the Operational Risk Management and includes, with degrees of detail and
temporal frequency (monthly / quarterly) differentiated according to needs, an analysis of
internal loss and andamentale together with their recoveries from a comparison with
external data system, the results of the assessment of risk exposure with the identification
of areas of vulnerability and the description of actions to be taken for the prevention and
mitigation of risk and their effectiveness.


Mechanisms of risk transfer

UBI Banca Group has entered into the appropriate insurance policies to cover the main
operational risks transferred taking into account the requirements of the Statement of
Supervision
Prudential (circ. 263/2006, Bank of Italy). The policies were taken out by UBI Banca
ScpA own behalf and on behalf of the network banks and product companies of the Group
concerned.


Legal risk

The Banca Popolare di Ancona is involved in several legal proceedings of various kinds and
legal process arising from the ordinary course of business. While it is not possible to predict
with certainty the final outcome, it is considered that any adverse outcome of these
proceedings would not, individually or together, a significant negative effect on financial and
economic situation of the Bank.




214
Quantitative information

The graphs below show that the main source of operational risk for the Bank in January
2004 - December 2009 "Processes" (68% and 59% of the impacts of frequencies) and
"external causes" (27% of the impacts and 38% of frequencies).
The risk drivers "Processes" include, among other things, the errors are not intentional, the
lack of training of personnel, procedural and process inefficiencies, non-compliance
procedures and internal controls. The risk drivers "external causes" includes human actions
are caused by third parties and not directly controlled by banks such as theft and robbery,
card fraud, damage caused by natural events (earthquakes, floods, etc ...), the other external
events.




The pattern of impacts gross of insurance recoveries and other recoveries outside of a
reduction (-52%) compared to previous year due to the reduction of customer complaints
relating to bonds in default and compound interest. In terms of number of events evident in
the last two years an increase in debit card fraud for which they have been set up
appropriate interventions for prevention and risk reduction that have experienced a trend
reversal as early as 2009.

                   Distribution of operational losses by year of survey (January 2004 - December 2009)


            30%

            25%

            20%

            15%

            10%

             5%

             0%
           2004        2005              2006             2007              2008              2009

                                         No Events    Impacts




                                                                                                         215
List of five major losses recognized in the period 2004 - 2009

Business Line         Event Type (Liv. I)                               Impacts     Recoveries
Commercial Banking    Clients, Products & Business Practices            4.062.424            0
Retail Brokerage      Execution, delivery and process management        1.473.000            0
Retail banking        External fraud                                     916.310       837.460
Retail banking        Clients, Products & Business Practices             739.543             0
Retail banking        External fraud                                     488.151             0


The analysis of operating losses carried out on data collected in the period between 1
January 2004 and December 31, 2009 shows a concentration of the phenomenon in the
types of event
"External fraud" (51% frequency and 67% of the total impacts detected) and "Execution,
delivery and process management" (22% frequency and 11% of the total impacts detected).
For the same period of analysis, data from the banking system (Association DIPO-ABI) have
the largest concentration of operational losses at the event type "Customers Products &
Business Practices" (21% frequency and 29% of the total impacts detected) and "External
fraud" (42% frequency and 26% of the total impacts detected).




UBI Banca Group contributes to the overall frequency of 6.90% and the
5.53% of the impacts of the Association of DataBase DIPO-ABI.




216
Capital requirement

The Bank of 2008 by adopting the Standardised Approach (TSA) for calculating the capital
charge on operational risk (Bank of Italy cfr.Circolare No 263 of 27/12/2006 relating to new
arrangements for the prudential supervision of banks).
The capital requirement determined by the standardized components (TSA) calculated by
multiplying the gross income (the "relevant indicator" of the item 120 of the schedule of the
income statement of former Bank of Italy Circular No 262, December 22, 2005), broken
down by lines of business regulations, for the specific beta coefficients defined by
supervisory regulations (see Bank of Italy Circular No 263, December 27, 2006 and No. 155,
December 18, 1991). The relevant indicator for regulatory business line has been
extrapolated from the data management control, applying the classification criteria defined
by national legislation and in compliance with regulations. The capital requirement at
December 31, 2009, calculated as the requirements for the past three years, amounted to
53.8 million euro. It is absorbed by 65% from the retail banking business line, for 19% of
Commercial Banking for the Trading & Sales by 10% and 5% by the Retail Brokerage. The
average coefficient of absorption in relation to relevant indicator is 13%.
The capital requirement at December 31, 2009 shows a reduction of EUR 3 million (-5%) on
December 31, 2008 primarily due to the reduction in operating income.




   217
Part F – Information on consolidated equity
Section 1 Shareholders' equity
A - Qualitative Information

The company's assets is the capital and reserves, for whatever reason made. The aggregate
(whose values are given in the following tables) is to oversee all the business risks in
previous comments. Policies and processes adopted in the management of the assets relate
to the set of choices to define the size and the optimal combination of different tools
capitalization, so that the capital base is consistent with the risk appetite of the Bank, in
accordance with the supervisory requirements .

According to current supervisory arrangements, 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 consolidated total requirement is met.
Since we tested this latter condition, the Bank of such reduction. The membership of the
UBI, finally, constitutes a valid and continuing assurance that the regulatory capital will
always be met by using, where appropriate, for capital increases.



Quantitative information

B 1 Heritage: breakdown



                                      Items / Values                      31/12/2009           31/12/2008


1. Share capital                                                                 122.344               122.344
2. Share premium reserves                                                        483.554               483.554
3. Reserves                                                                      236.548               135.410
      - Profit                                                                   236.548               135.410
      a) Legal                                                                    77.059                77.059
      b) statutory                                                                48.632                48.632
      c) Own shares                                                                        -                    -
      d) other                                                                   110.857                    9.719
      - other                                                                              -                    -
4. Equity instruments                                                                      -                    -
5. (Treasury shares)                                                                       -                    -
6. Valuation reserves                                                             24.892                21.218
      - financial assets available for sale                                              31                   60
      - Tangible assets                                                                    -                    -
      Intangible assets                                                                    -                    -
      Hedging of foreign investments:                                                      -                    -
      Cash flow hedges:                                                                (486)            (3.964)
      Exchange rate differences                                                            -                    -
      Non-current assets held for sale                                                     -                    -
      Actuarial gains (losses) related to defined benefit pension plans                 300                   76
      Amount of revaluation reserves related to holdings measured at SE                    -                    -
      Special revaluation laws                                                    25.047                25.046
7. Net profit (loss) for the period                                               12.148               137.395
Total                                                                            879.486              899.921




218
B 2 Valuation reserves for financial assets available for sale:


                                                                  31/12/2009                                      31/12/2008
                       Assets/Amounts
                                                      Positive reserve       Negative Reserve         Positive reserve       Negative Reserve

Debt securities                                                      46                         -                        -                 (80)
2. Equity securities                                                 10                    (25)                     237                    (97)
3. Quotas of UCITS                                                       -                      -                        -                      -
4. Loans                                                              -                       -                      -                        -
                                              Total                  56                    (25)                    237                    (177)




B 3 Valuation reserves available for sale financial assets: annual changes


                                                            Debt                          Equity
                                                            securities                 securities           UCITS units                   Loans



1. Opening balance                                                           (80)                    140                        -                   -

2. Positive changes                                                           125                     97                        -                   -
2.
1 Fair value increases                                                        125                     97                        -                   -
2.
2 Reversal of negative reserves                                                  -                      -                       -                   -
    - due to impairment                                                          -                      -                       -                   -
    - on disposal                                                                -                      -                       -                   -
2.
3 Other changes                                                                  -                      -                       -                   -
3. Negative changes                                                              -                  (252)                       -                   -
3.
1 Reductions in fair value                                                       -                   (25)                       -                   -
3.
2 Adjustments to the deterioration                                               -                   (78)                       -                   -
3.
3 Reversal of positive reserves on disposal                                      -                  (149)                       -                   -
3.
4 Other changes                                                                  -                      -                       -                   -
4. Closing balance                                                             45                    (15)                       -                   -




      219
Section 2 Shareholders' equity and capital ratios

2.1 CAPITAL

A - Qualitative Information

The capital has been determined in accordance with the regulations in force, as defined by
the provisions of the Supervisory Body.


1. Tier 1 capital

The Tier is the capital, profit reserves net of intangible assets are not "innovative capital
instruments."

2. Tier 2 capital

The Tier consists of the valuation reserves and subordinated loans.

3. Capital for the third level
There is no capital for the third level.




Quantitative information


                                                                       Total            Total
                                                                   31/12/2009       31/12/2008

A. Tier 1 capital before the application of prudential filters         819.403          810.719
Tier 1 capital prudential filters:                                        (731)           (1.003)
    Positive IFRS prudential filters (+)                                        -                -
    Negative IFRS prudential filters (-)                                  (731)           (1.003)
C. Tier 1 capital before any deductions allowed (A+B)                  818.672          809.716
D. Elements to be deducted from Tier 1 capital                             358               358
E. Total Tier 1 capital (C-D)                                          818.314          809.358
F. Tier 2 capital before the application of prudential filters          24.917           41.158
G. Tier 2 capital - prudential filters:                                    (28)                  -
    Positive IFRS prudential filters (+)                                        -                -
    Negative IFRS prudential filters (-)                                   (28)                  -
H. Tier 2 capital before any deductions allowed (F+G)                   24.889           41.158
I. Elements to be deducted from Tier 2 capital                             358               358
L. Total Tier 2 capital (H-I)                                           24.531           40.800
M. Items to deduct from total Tier 1 and Tier 2 capital                         -                -
N. Capital for supervisory purposes (E+L-M)                            842.845          850.158
O. Tier 3 Capital                                                               -                -
P. Capital for supervisory purposes including TIER 3 (N+O)             842.845          850.158




220
2.2 Capital adequacy
A. Qualitative information

The presidium of the Bank's capital adequacy is centralized at the parent company UBI
Banca. The latter, acting as a guidance and coordination of activities of Group companies -
evaluates the needs of capitalization, in a strict sense, and through the issuance of
subordinated debt or hybrid capital instruments of the subsidiary. The top management of
the Parent shall make proposals for action to their governing bodies which decide on it. The
proposal, once approved by the Boards of the Parent, is then submitted to the competent
bodies of the subsidiaries. On the basis of the development plan of the Group, risk profiles
and related assets within the constraints of supervision, the parent company analyzes and
coordinates the needs of capital adequacy, lending itself as a counterparty in a privileged
access to capital markets, in an integrated optical sizing best assets.

The approach adopted for the assessment of capital adequacy is based on two assumptions:
    adequately support the Bank's operations, including in relation to defined strategic
       plans;
    meet from time to time the signs of Supervisory Authority regarding capital levels.

To this end, it is constantly monitored the progress of Capital Ratio (Tier 1) and Total
Capital ratio. The loan growth strategy is shaped by the levels of remuneration and risk
compared to its absorption sheet.




   221
B. Quantitative information

                                                                             Non-weighted amounts          Weighted / requirements
                               Categories/amounts                               Total          Total          Total           Total
                                                                            31/12/2009     31/12/2008     31/12/2009      31/12/2008

A. RISK ACTIVITIES

Credit and counterpart risk                                                           -             -               -                -
      1. Standardized approach                                                12.768.401     13.751.933      6.063.171       6.740.070
      2. Method based on internal ratings                                             -             -               -                -
          2.1 Base                                                                    -             -               -                -
           2.2 Advanced                                                               -             -               -                -
      3. Securitizations                                                              -             -               -                -
B. REQUIREMENTS OF CAPITAL FOR SUPERVISORY PURPOSES                                   -             -               -                -

B.1 Credit and counterpart risk                                                       -             -          485.054         539.206

B.2 Market risk                                                                       -             -            1.237           1.267
      1. Standardized approach                                                        -             -            1.237           1.267
      2. Internal models                                                              -             -               -                -
      3. Concentration risk                                                           -             -               -                -

B.3 Operating risk                                                                    -             -           53.799          56.871
      1. Basic approach                                                               -             -               -                -
      2. Standardized approach                                                        -             -           53.799          56.871
      3. Advanced approach                                                            -             -               -                -

B.4 Other prudential requirements                                                     -             -               -                -

B.5 Other calculation elements (*)                                                    -             -         (135.023)       (149.336)
B.6 Total prudential requirements                                                     -             -          405.068         448.008
C. RISK ASSETS AND CAPITAL RATIOS                                                     -             -

C.1 Risk-weighted assets                                                              -             -        6.751.127       7.466.794

C.2 Basic capital /weighted risk activity (Tier 1 capital ratio)                      -             -         12,120%         10,840%
    Regulatory capital including Tier 3 / weighted risk activities (Total
C.3 capital ratio)                                                                    -             -         12,480%         11,390%




(*) In calculating capital requirements banks in the Italian banking groups also take into
account the reduction of 25% of the requirements highlighted under "B.5 - Other computing
elements".

The ratios reported were prepared under the new rules laid down by the 2nd update of
Circular 263 of December 27, 2006 and the 12th update
Circular 155, February 5, 2008 (Basel 2), issued by the Bank of Italy.
Please note that the methodology is standardized.




222
Part G - Business Combinations or business enterprise
For the Bank there is no such case.




   223
Part H - Transactions with related parties
1. Information on the compensation of key management personnel

Directors' fees (1)


                                                                                   31/12/2009


Short-term benefits for employees (2)                                                          1.120
Benefits after termination of employment (3)                                                    101
termination benefits                                                                               8



(1) For "Leaders" are "key management personnel of entities including the directors of the entity"
(2) For example: wages, salaries and social security contributions, bonus payments instead of vacation and sick
leave, benefits in kind. In sum includes the fixed and variable fees paid to Directors as equivalent to the cost of
labor and social security contributions for employees of the company.
(3) For example: pensions, other retirement benefits, life insurance and health care after the employment
relationship.



In regard to compensation paid during the year 2009 to key management personnel,
including General Manager, states that, in addition to the fixed component of remuneration
set by individual agreements, there is a significant variable component linked to the
achievement of strategic objectives group.
With reference to the base salary is highlights the presence, in addition to the usual
payment in cash, of benefit to the completion of the remuneration package which the
supplementary pension fund, the health insurance policy, the accident policy el possible
allocation of company car for mixed use. There are no plans to encourage medium to long
term.

In particular, we highlight the following institutions pay (for the definition of which can be
found at the appropriate accounting policy):

      a)   Short-term benefits
           In the short-term benefits are included salaries, social security contributions,
           allowances for former substitute holidays not taken, sick leave, paid leave, benefits
           such as medical care, and housing.
           Among the short-term benefits is subject, including the variable part of the salary
           payment of which is related to qualitative and quantitative value related to the
           annual Business Plan. This component accounts for an average of about 26.8% of
           total labor costs borne by the company reportedly considered population.

      b)   B) benefits subsequent to employment
           In the post-employment benefits are covered by pension plans, pension, insurance
           and the treatment of severance pay.
           For managers in question are active forms of life insurance and supplementary
           pension with time horizon following the termination of employment.




224
2. Information on transactions with related parties

In accordance with the provisions of the Consob Communication n. 97001574 of February
20, 1997, No 98015375 dated 27 February 1998, No 1025564 of 6 April 2001, No 14990 of
14 April 2005 and most recently with the announcements No DEM/6064293 of July 28,
2006 and No. 15519 of July 28, 2006, states that all operations conducted by the Parent
Company with related parties were carried out according to criteria of substantial and
procedural fairness, under conditions similar to those applied in transactions with
unrelated third parties.

Following the repeal of that by CONSOB April 14, 2005, the third paragraph of art. 71-bis of
Consob Regulation 11971/1999, whereby the former n.2064231 Communication of 30
September 2002 defined the concept of related parties, failing this definition of related party
issuing means, in accordance with International Accounting (International Accounting
Standards - IAS ) No 24, a party if:
   a) directly or indirectly controls, is controlled by or is under common control with the
      issuer, or has an interest to exercise a significant influence over the issuer or the
      issuer has joint control;
   b) is an associate at the issuer (as defined in IAS 28 - Investments in Associates);
   c) is a joint venture in which the issuer is a participant;
   d) is a key management of the issuer or its parent, whereby the key management people
      who have the power and responsibility for planning, directing and controlling the
      activities of broadcasters, including the directors of the issuer;
   e) is a close relative of one of the persons mentioned in subparagraphs a) or) (for
      immediate family members include those who have the potential to influence the
      individual related to issuer, or be influenced in their relationship with the issuer);
   f) is a controlled entity, jointly owned or subject to significant influence by one of the
      persons referred to in subparagraphs d) or e), or those persons directly or indirectly
      holding a significant proportion of the voting rights in that entity;
   g) is a pension fund for employees of the issuer or any entity related to it.

In particular, consistent with the organizational model that provides for the centralization at
UBI Bank of activities of strategic planning and management, and at UBI Sistemi e Servizi
SCPA activities of a technical-operational, the Parent Company and its subsidiary
companies provide the various Group a number of services governed by contracts drawn up
based on intra-group criteria of appropriateness, transparency and uniformity, the agreed
payments for services rendered under those contracts were determined according to market
conditions or, where they have not found appropriate market benchmarks in relation to the
specific characteristics of the services rendered on the basis of cost incurred.
Among the major intra-group contracts valid at the end of the year included those that
implement the centralized at the parent company of the activities in the Areas of
Government, Business and involving the parent company and the main banks of the Group
as well as agreements implementation cd of the consolidated tax (referred to Articles 117 to
129 of Presidential Decree No. 917/1986 of the Consolidated Income Tax) concluded by the
parent company. They should also be noted that all contracts shall implement the intra-
group at UBI Sistemi e Servizi centralization of support activities of all major Group
companies UBI.

With regard to the operation performed by the parent company with all its related parties,
states that are not found atypical and / or unusual transactions of this type, however, were
not carried out even by persons other than related party transactions.


   225
For atypical or unusual - just as described in the CONSOB 98015375 dated 27 February
1998 and No. 1025564 of 6 April 2001 - means that all those operations to materiality or
importance, the nature of the counterparty in the transaction (including in relation to
trading), how to determine the transfer price and timing of the event (close to the end of the
period ) can give rise to doubts regarding the accuracy / completeness of information in
financial statements, conflicts of interest, the protection of company assets, protection of
minority shareholders.

Further information on related party transactions are reflected in subsequent tables.




226
Transactions with Group companies and companies subject to significant influence

                                                                                                                                       31/12/2009

                                                                       Assets             Assets
                        Related party      Assets/liabilities
                                                                      financial          financial          Due from               Due from             Hedge                 Due to                                Issued          Issued
                                                 Held                                                                                                                                        Due to customers
                                                                    available for          Held             banks               customers             derivatives            banks                                securities       sureties
                                              for trading
                                                                         sale           to maturity

Parent                                                          -                   -                  -     1.341.171                        -                      -             10.792                   -       1.248.961                 -
Subsidiaries                                                    -                   -                  -               -                      -                      -                  -                   -                  -              -
Associates                                                      -                   -                  -          250                  13.746                        -                  -                 283                  -              -
Joint venture                                                   -                   -                  -               -                      -                      -                  -                   -                  -              -
Subsidiaries/Associates to / from parent                        -                   -                  -        7.563                   3.343                        -             15.607                 313                  -              -
Executives                                                      -                   -                  -               -                  320                        -                  -               1.081              870                -
OTHER related parties                                           -                   -                  -               -               12.556                        -                  -               4.257              959                -




The reports listed in the line "Affiliated companies" are for UBI.S., UBI Leasing, Centrobanca, Arca, SPF Studio Projects and Financial Services
Ltd, while in the line "Check / linked to / from parent" shows the other companies consolidated group.

                                                                                                                                              31/12/2009

                                                                                                                               Other operating                                   Administrat                              Other operating
                           Related party                    Interest and            Dividends and          Fee income                  income                Interest and                ive                    Fee             expenses

                                                          similar income            similar income                                                      similar charges                 expenses       expenses


Parent                                                                  29.209                         -          3.960                       120                   (36.118)                 (9.289)            (730)                         -
Subsidiaries                                                                   -                       -                   -                      -                          -                     -                  -                       -
Associates                                                                  208                       16          2.316                   1.284                           (12)              (21.116)              (15)                        -
Joint venture                                                                 -                        -             -                          -                            -                     -                -                       -
Subsidiaries/Associates to / from parent                                     76                        -        13.529                        165                        (201)               (3.459)            (742)                   (117)




In the line "Check / linked to / from parent" shows the Group's companies do not attend, but included in the scope of consolidation.




      227
                                                                                                                                     31/12/2009
                                                                                                                                      Income and
                               Related party                                                                                           expenses
                                                                                                               Commissions                                    Other income             Expenditure
                                                                                 Net interest                                       from operations
                                                                                                                                                                 operating
                                                                                                                    net                                           expenses         administrative
                                                                                                                                         finance

Executives                                                                                        (62)                         21                       -                      -                 (1.398)
OTHER related parties                                                                             137                   4.723                          6                      1                         -




                                                                                                                                           31/12/2009

                                                                           Assets              Assets
                       Related party           Assets/liabilities
                                                                          financial           financial           Due from             Due from      Derivatives       Deposits from                           Titles     Guarantees
                                                     Held                                                                                                                                Due to customers
                                                                        available for           Held              banks             customers             hedge           banks                              movement          issued
                                                  for trading
                                                                             sale           to maturity

With related parties                                                -                   -                  -       1.348.983               29.965                  -          26.398                 5.934    1.250.790                 -
Total                                                       20.259              22.545                     -       1.392.357            7.332.080             33.704          78.050            4.619.411     3.377.011                 -
Incidence                                                        -                   -                     -          96,88%                0,41%                  -          33,82%                0,13%        37,04%                 -




                                                                                                                                                  31/12/2009
                                                                                                                                                              Income and
                                                                                                                                                                                       Other operating
                               Related party                                                                                                                   expenses
                                                                                                                                        Net fees                                               income Expenditure
                                                                                                          Dividends and
                                                                                                                 similar
                                                                                 Net interest                   income                                      from operations
                                                                                                                                                                                         and expenses        administrative
                                                                                                                                                                finance

With related parties                                                                          (6.763)                          16                 23.061                      6                    1.453             (35.263)
Total                                                                                       248.774                    16.437                     97.408                  (714)                  15.449            (243.296)
Incidence                                                                                     -2,72%                   0,10%                      23,67%                -0,84%                    9,40%                 14,49%




228
Part I - Share-based payments Equity-
For the Bank there is no such case.




   229
Part L - Segment reporting
The Bank is not obliged to fill in this part because the segment information is provided on
an Annual Report by the parent company UBI Banca.




230
      Attached to the
          Financial
          Statements




231
A summary of the essential data of the parent company ScpA UBI Banca
(ex art. 2497 bis of Civil Code)
                                             BALANCE SHEET
                                                   (in thousands of EUR)




                                                                           31/12/2008


ASSETS

 Cash and cash equivalents                                                       246.459

 Financial assets held for trading                                              2.424.111

 Financial assets designated at fair value                                       460.157

 Financial assets available for sale                                            2.767.513

 Financial assets held to maturity                                              1.620.567

 Due from banks                                                                29.298.338

 Loans to customers                                                            10.446.768

 Hedging derivatives                                                              72.787

 Investments in associates and companies subject to joint control              11.909.207

 Assets                                                                         1.273.974

 Tax assets:                                                                     593.404

 Non-current assets and disposal groups held for                                  13.931

 Other assets                                                                    856.101

TOTAL ASSETS                                                                  61.983.317




                                                                           31/12/2008


LIABILITIES

 Customer deposits and securities issued                                       19.942.079

 Due to banks                                                                  28.732.514

 Financial liabilities held for trading                                         1.222.187

 Hedging derivatives                                                              74.820

 Tax liabilities                                                                 411.849

 Other liabilities                                                              1.186.374

 Employee termination indemnities                                                 44.483

 Provisions for risks and charges                                                 10.329

 Shareholders’ equity                                                          10.334.796

 Income for the period                                                            23.886

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                    61.983.317




232
                                        INCOME STATEMENT
                                         (in thousands of EUR)




                                                                 31/12/2008


Interest margin                                                        (250.789)

Net fee and commission income                                           13.174

Gross operating income                                                 473.897

Net income from financial management                                    (26.580)

Operating costs                                                        (248.430)

Current operating income before taxes                                  (257.468)

Income Taxes                                                           281.354

Net profit (loss) for the period                                        23.886




 233
Public disclosure of fees for audit and non-audit services in accordance
with Article of the Issuers Regulation. 149 duodieces.

In accordance with the provisions of art. 149 k of the Consob Issuer Regulations are shown
in the table below, information on the fees paid to the auditing company KPMG SpA and the
companies belonging to the same network for the following services:
      1) review services which include:
       the task of auditing the annual accounts finalized the expression of a professional
         opinion;
      the audit work of the interim accounts.

      2) Certification services including appointments with the auditor evaluates a specific
         factor, the determination is made by another person who is responsible, through
         appropriate policies, in order to express a conclusion that the recipient provide a
         degree of reliability in relation to that particular element.

      3) Tax advice.

      4) Other services include positions as a residual.

The charges listed in the chart are the responsibility of the financial year 2009, are under
contract, including any indexes (but also living expenses, of any supervisory fee and VAT).
Are not included, as that provision, the fees paid to any auditor or secondary subjects of
their networks.


                                                                                   COMPENSATI
                                 Person who has                                              ON
        Type of service                                Recipient of the service
                                 Service provider                                    (€ thousand)

Audit                               KPMG SpA        Banca Popolare di Ancona SpA               246
Certification services              KPMG SpA        Banca Popolare di Ancona SpA                    6
Tax advice
Other services
Total                                                                                          252




234
Real estate listings

                                  Location                             Investments     Revaluation of   Revaluation of   Revaluation IAS    Gross values      Accumulated          Other           Val. in budget
                                                                                           Law                 M                                                   Depreciation    Movements

1    NAPOLI                         36,37,38 Via S. Brigida, Via Leo    4.257.966,91             0,00            0,00         -727.969,84      3.529.997,07          -346.538,22           0,00      3.183.458,85
2    Afragola                       Corso Garibaldi, 38                   653.869,64        15.209,57      389.462,46          80.539,18       1.139.080,85          -423.882,71     106.740,40        821.938,54
3    Alvington                      C.so Umberto I, 287                   171.302,74        30.052,15       48.453,33          45.168,23         294.976,45           -97.621,13           0,00        197.355,32
4    Ancona                         Breccias Blank, 68th                  531.364,89             0,00            0,00         178.492,45         709.857,34          -223.409,84           0,00        486.447,50
5    Ancona                         C.so Colombo, 56                       48.507,08       900.738,99            0,00         639.259,50       1.588.505,57          -911.229,62           0,00        677.275,95
6    Ancona                         C.so Stamira, 14                    3.510.408,29        57.262,05            0,00        5.949.167,66      9.516.838,00        -3.539.652,41           0,00      5.977.185,59
7    Benevento                      Piazza Risorgimento nn.11-12          252.962,68        20.429,81      190.187,99         326.705,49         790.285,97          -354.543,75     154.813,85        590.556,07
8    Dressing room                  Piazza Caio Mario, 5                   52.538,48       230.777,50            0,00        2.460.154,19      2.743.470,17        -2.567.857,58           0,00        175.612,59
9    Castelfidardo                  Via C. Battisti, 5                    811.493,16             0,00            0,00         359.252,95       1.170.746,11          -437.300,28           0,00        733.445,83
10   CIVITANOVA BRANDS              C.so Umberto I, 16                  1.670.851,61       842.110,85            0,00        4.126.922,25      6.639.884,71        -4.847.963,34           0,00      1.791.921,37
11   CIVITANOVA BRANDS              Tripoli, 3                             15.951,57             0,00            0,00          20.913,81          36.865,38           -19.885,78           0,00         16.979,60
12   CUPRAMONTANA                   Piazza Cavour, 9                       52.630,19        78.362,84            0,00         487.973,72         618.966,75          -571.417,74           0,00         47.549,01
13   Fabriano                       P.zza Miliani, 16                     675.294,36     1.245.120,38            0,00        8.677.342,20     10.597.756,94        -8.430.376,05           0,00      2.167.380,89
14   Falconara                      IV Novembre, 8                        473.295,17       629.239,97            0,00         655.465,03       1.758.000,17          -962.375,26           0,00        795.624,91
15   FOSSOMBRONE                    Matteotti, 9                          632.115,69       281.195,48            0,00         679.209,20       1.592.520,37          -598.249,44           0,00        994.270,93
16   Lump Nevano                    Course Cyril, 18                      663.731,04             0,00      166.313,89         -222.138,46        607.906,47          -255.756,38           0,00        352.150,09
17   Villalba Giudonia              Tiburtina, 122                        468.754,46       284.564,17      104.323,90         205.133,79       1.062.776,32          -518.553,14      35.108,01        579.331,19
18   JESI                           Acquaticcio, 8 / 10                   400.765,74       166.625,06            0,00        3.465.263,19      4.032.653,99        -3.129.139,29           0,00        903.514,70
19   JESI                           C.so Matteotti, 1                     344.450,07     2.630.813,78            0,00        4.151.821,52      7.127.085,37        -6.611.754,58           0,00        515.330,79
20   JESI                           Vesalius Square, 5                    375.093,31             0,00            0,00         131.144,53         506.237,84          -128.443,11           0,00        377.794,73
21   JESI                           SAINT JOSEPH, 38                      159.539,09     1.203.197,24            0,00        4.836.697,50      6.199.433,83        -4.863.464,36           0,00      1.335.969,47
22   JESI                           V. DON BATTISTONI                  11.795.054,06     4.835.615,49            0,00     111.864.586,64     128.495.256,19       -97.429.870,97           0,00     31.065.385,22
23   LORETO                         Bramante                            2.062.462,92       358.925,54            0,00        3.388.694,53      5.810.082,99        -1.194.512,20   -3.301.855,11     1.313.715,68
24   Lunano                         C.so Roma                             192.679,79         6.002,33            0,00         331.697,06         530.379,18          -252.274,83           0,00        278.104,35
25   Macerata                       C.so Cavour / V.Corridoni           1.541.506,24       128.158,19            0,00        9.389.237,43     11.058.901,86        -9.075.653,24           0,00      1.983.248,62
26   Matelica                       Martiri Liberta ', 25                 381.308,28       202.600,54            0,00        2.017.028,87      2.600.937,69        -2.007.583,61           0,00        593.354,08
27   Macerata Feltria               G. Antimi, 22                         308.652,41       314.619,23            0,00          49.282,56         672.554,20          -271.225,03           0,00        401.329,17
28   Monte San Giusto               Verdi, 11                             233.561,39       127.887,97            0,00        2.036.933,12      2.398.382,48        -1.956.716,26           0,00        441.666,22
29   Montecopiolo / Villagrande     Montefeltro                            33.410,44       107.243,10            0,00         167.909,44         308.562,98          -209.134,68           0,00         99.428,30
30   MARINA MONTEMARCIANO           P.zza Magellan                        329.319,82       236.808,24            0,00        2.715.932,45      3.282.060,51        -2.620.578,46           0,00        661.482,05
31   Morro d'Alba                   Morganti, 56                           42.803,90        72.340,02            0,00         297.004,10         412.148,02          -385.288,90           0,00         26.859,12
32   NAPOLI                         Via Cesare CONSOLE / VIA ORSINI       637.416,45             0,00    1.373.498,12           -7.214,15      2.003.700,42          -243.370,29           0,00      1.760.330,13
33   NAPOLI                         Via Petronio, 3                     5.316.988,17       443.606,76    6.022.072,67         218.842,13      12.001.509,73        -3.160.563,38           0,00      8.840.946,35
34   Nocera Inferiore               Via Barbarulo                         784.016,48             0,00            0,00         -288.134,49        495.881,99           -94.212,93           0,00        401.669,06
35   NOVAFELTRIA / Dry              Piazza Cappelli,                      128.007,30        31.828,68            0,00         199.527,61         359.363,59          -295.753,34           0,00         63.610,25
36   NOVAFELTRIA                    P.zza V. Emanuele                     233.856,66       378.563,54            0,00         730.705,80       1.343.126,00        -1.024.019,69           0,00        319.106,31
37   Offagna                        Dell'Arengo, 38                         2.422,33        24.105,48            0,00         169.982,94         196.510,75          -141.994,24           0,00         54.516,51
38   Porto Potenza                  P.zza Douhet, 23                      145.232,61       355.714,81            0,00        1.057.883,74      1.558.831,16        -1.170.176,45           0,00        388.654,71
39   Pesaro                         Piazzale Garibaldi 22               1.672.781,63             0,00            0,00           -8.471,12      1.664.310,51          -576.443,37           0,00      1.087.867,14
40   Pietramelara                   Piazza San Rocco, 18                   41.133,56       121.579,73      158.697,85         712.318,95       1.033.730,09          -950.054,05           0,00         83.676,04
41   Pietravairano                  Via Strada Nuova, 1                   571.989,06        19.962,89      143.894,96          16.109,85         751.956,76          -310.267,02           0,00        441.689,74
42   Power Picena                   Marefoschi, 1                         187.224,71       152.066,22            0,00         342.677,33         681.968,26          -295.535,53           0,00        386.432,73
43   Power Picena                   Pellico                                 2.704,86             0,00            0,00          61.732,74          64.437,60           -16.569,82           0,00         47.867,78
44   Rome                           Benedetto Croce, 10                 2.428.998,37       188.472,95            0,00        1.749.383,27      4.366.854,59        -1.679.667,02           0,00      2.687.187,57
45   S. Antimo                      Via CARDINAL GREEN, 31              1.545.641,37             0,00            0,00               0,00       1.545.641,37           -49.752,33     -427.354,15     1.068.534,89
46   San Severino Marche            Viale Europa                            2.255,04             0,00            0,00          12.896,26          15.151,30            -7.298,31           0,00          7.852,99
47   San Severino Marche            Viale Europa                          573.210,10        84.072,79            0,00         887.438,94       1.544.721,83          -947.023,75           0,00        597.698,08
48   San Benedetto del Tronto       Matteo Piazza                         899.647,27             0,00            0,00         100.432,42       1.000.079,69          -245.161,04           0,00        754.918,65
49   San Gines                      Piazza A. Gentili, 31                  81.122,90       243.831,30            0,00        1.536.612,30      1.861.566,50        -1.295.227,66           0,00        566.338,84
50   San Leo                        Montefeltro                            80.835,81           577,81            0,00          320.362,60        401.776,22          -213.888,20           0,00         187888,02




                                                                                                                                                                                                                    235
                                      Location                                 Investments     Revaluation of   Revaluation of   Revaluation IAS    Gross values      Accumulated          Other           Val. in budget
                                                                                                   Law                 M                                                   Depreciation    Movements

51    Sant'Agata F                      Admission, 2                               72.440,79       109.303,55            0,00         121.809,83         303.554,17          -181.185,81           0,00        122.368,36
52    Sarnano                           Piazza Liberta ', 76                       28.407,01       129.564,53            0,00         702.936,83         860.908,37          -679.522,20           0,00        181.386,17
53    Sassofeltrio / Fratte             Risorgimento, 9                            53.034,25        72.894,78            0,00          97.984,38         223.913,41          -140.616,58           0,00         83.296,83
54    Senigallia                        Course on June 2, 78                    1.872.165,48       163.301,69            0,00        3.879.304,14      5.914.771,31        -2.898.950,58           0,00      3.015.820,73
55    Serra de 'Conti                   Piazza G. Leopardi, 4                     242.705,72             0,00            0,00         126.835,55         369.541,27          -137.108,98           0,00        232.432,29
56    Santa Maria Nuova / Hill          Risorg.to, 6                              206.049,70        73.263,14            0,00         196.804,73         476.117,57          -147.483,49           0,00        328.634,08
57    TIVOLI                            Piazza S. Cross, 15                     1.035.563,99     1.481.525,42      876.355,92        2.820.187,74      6.213.633,07        -6.048.189,93     187.904,99        353.348,13
58    TOLENTINO                         Piazza Unita '                          1.769.924,10       690.824,12            0,00        3.136.368,07      5.597.116,29        -3.575.970,81           0,00      2.021.145,48
59    Urbino                            Mercatale village, 24                     209.735,95             0,00            0,00          90.856,36         300.592,31          -121.013,17           0,00        179.579,14
60    Volla                             Via Rossi, 94                             786.901,29        26.929,25      214.796,35         -126.205,02        902.421,87          -331.360,22           0,00        571.061,65
61    JESI                              INDUSTRY Avenue, 5 (ZIPA)               1.656.163,93             0,00            0,00        2.076.532,31      3.732.696,24          -166.821,25           0,00      3.565.874,99
62    NAPOLI                            Piazza Garibaldi                        1.533.729,46             0,00            0,00         343.451,31       1.877.180,77          -366.828,82           0,00      1.510.351,95
63    Osimo                             Fraz PadiglioneVia Ticino                 622.716,63             0,00            0,00         -133.955,94        488.760,69           -71.698,80           0,00        417.061,89
64    Rome                              Via Luciani                               435.250,93        93.783,66      756.933,82          64.428,25       1.350.396,66          -564.842,39           0,00        785.554,27
65    Rome                              Via Buozzi, 76/78                       1.906.702,14             0,00            0,00         -274.438,47      1.632.263,67          -340.193,06           0,00      1.292.070,61
66    San Benedetto del Tronto          Via Piave, 91                              68.868,15        21.512,89            0,00         143.575,36         233.956,40          -128.555,00           0,00        105.401,40
67    San Benedetto del Tronto          Via Piave, 91                             155.592,58             0,00            0,00          91.660,02         247.252,60          -108.410,21           0,00        138.842,39
68    Angels of Rosora                                                            603.456,49             0,00            0,00               0,00         603.456,49          -212.002,51           0,00        391.453,98
69    BELLARIA                          IGEA MARINA WAY USE 25/B-25/C           1.072.902,47             0,00            0,00               0,00       1.072.902,47           -77.801,82     -118.539,00       876.561,65
70    HEADQUARTERS-todi                 SQUARE OF THE PEOPLE N.                   785.854,98       612.426,68            0,00        3.735.035,08      5.133.316,74        -2.440.083,94           0,00      2.693.232,80
71    AGENCY OF MONTECASTELLO VIBIO     PIAZZA M.                                  44.923,58        25.962,60            0,00          55.429,82         126.316,00           -55.774,77           0,00         70.541,23
72    Todi                              FRAZ. PANTALLA                            851.531,94       108.876,34            0,00         329.458,62       1.289.866,90        -1.003.825,67           0,00        286.041,23
73    Todi                              Via Tiberina                              494.209,70             0,00            0,00         359.902,98         854.112,68          -380.529,38           0,00        473.583,30
74    Todi                              PONTERIOFRAZ. Pian di Porto               426.589,87             0,00            0,00          44.372,08         470.961,95           -97.732,16           0,00        373.229,79
75    MAGIONE                           Via HALL OF LOC.BACAN                     516.780,00             0,00            0,00               0,00         516.780,00           -41.615,67           0,00        475.164,33
76    Ascoli Piceno                     INDIPENTENZA Avenue, 42                 1.002.146,27             0,00            0,00         -213.392,88        788.753,39          -122.698,93           0,00        666.054,46
77    MACERATA                          Via Don Bosco, 73                       1.746.395,52             0,00            0,00         -654.472,17      1.091.923,35          -157.284,92           0,00        934.638,43
78    Ancona                            C.so Stamira 16                           876.330,06        23.483,99            0,00        1.551.422,80      2.451.236,85          -750.337,18           0,00      1.700.899,67
79    Ancona                            Palestro, 7                               602.192,67       779.401,18            0,00        2.058.308,08      3.439.901,93        -1.632.333,67           0,00      1.807.568,26
80    RAVENNA                           Piazza Baracca ,22-ang. Via Maggiore    2.400.198,64             0,00            0,00               0,00       2.400.198,64           -68.962,22     -522.159,57     1.809.076,85
81    Dressing room                     Vicomanni, 3                                 .714,78         1.254,76            0,00          65.322,20          76.291,74           -67.585,20           0,00          8.706,54
82    Rome                              Nationwide, 243                            20.303,71             0,00       19.715,37          15.847,57          55.866,65           -26.164,25           0,00         29.702,40
83    Serra de 'Conti                   Via San Paterniano                         17.895,23             0,00            0,00           6.647,01          24.542,24            -4.663,78           0,00         19.878,46
84    Fabriano                          V.le Zobicco                              644.872,35        61.280,73            0,00        1.703.021,35      2.409.174,43        -1.095.551,36           0,00      1.313.623,07
85    JESI                              SAINT JOSEPH, 38                           28.466,26       293.260,84            0,00        1.208.060,16      1.529.787,26        -1.123.233,65           0,00        406.553,61
86    Lunano                            C.so Roma                                  22.645,41             0,00            0,00          33.586,77          56.232,18           -26.228,68           0,00         30.003,50
87    Senigallia                        Mastai, 47                                441.393,09             0,00            0,00         629.399,08       1.070.792,17          -423.480,82           0,00        647.311,35
88    MONDOLFO                          Via Aldo Morovia Romont                   660.740,88             0,00            0,00         211.200,36         871.941,24          -368.319,23           0,00        503.622,01
89    Monteprandone                     Via dello Sport                           107.135,47             0,00            0,00         139.969,95         247.105,42           -76.337,03           0,00        170.768,39
90    Monteprandone                     Via Mazzini                                47.975,47             0,00            0,00         100.233,52         148.208,99           -45.785,46           0,00        102.423,53
91    FOSSOMBRONE                       Dante P. / V. Giants                        2.261,06       145.526,46            0,00         112.925,45         260.712,97           -35.192,72           0,00        225.520,25
92    Villalba Giudonia                 Tiburtina, 123                             58.982,54             0,00      420.354,54         455.831,26         935.168,34          -849.295,14           0,00         85.873,20
93    S. AGATA FELTRIA                  Via de 'MALE, 51                           85.367,50             0,00            0,00         135.197,79         220.565,29           -53.911,42           0,00        166.653,87
94    Sassofeltrio / Fratte             Risorgimento, 9                             8.642,31        63.145,20            0,00          50.358,73         122.146,24           -53.671,40           0,00         68.474,84
95    JESI                              ACQUATICCIO, 8 / 10                        23.558,85        13.157,01            0,00         258.162,42         294.878,28          -176.228,76           0,00        118.649,52
96    Benevento                         Piazza Risorgimento                       300.260,00             0,00            0,00           -7.823,30        292.436,70           -89.153,12           0,00        203.283,58
97    Todi                               VIA ESPERIA                              130.890,98             0,00            0,00          38.753,63         169.644,61          -139.479,97           0,00         30.164,64
98    S. AGATA                           FELTRIA                                    1.053,90             0,00            0,00          16.793,12          17.847,02                 0,00           0,00         17.847,02
99    Pietramelara                      `Swamp locations or Varre                  27.764,73             0,00            0,00         -15.885,32          11.879,41                 0,00           0,00         11.879,41
100   Santa Maria Nuova / Hill          Piave, 2                                        0,00        23.695,67            0,00         115.536,22         139.231,89           -51.269,98           0,00         87.961,91




236
Location                       Investments   Revaluation of   Revaluation of   Revaluation IAS        Gross values     Accumulated         Other          Val. in budget
                                                  Law               M                                                  Depreciation      Movements

 101 ROME           VIA LIBYA, 38                                               565.400,00                0,00            0,00             0,00       565.400,00           -29.757,90            0,00       535.642,10
 102 ROME           Piazza Mignanelli, 4-5                                     5.360.100,00               0,00            0,00             0,00      5.360.100,00          -45.484,27            0,00     5.314.615,73
 103 Portocannone   Via Roma, 18                                                 23.020,47                0,00            0,00             0,00        23.020,47                0,00             0,00        23.020,47
                                                                           81.208.258,00         22.064.657,94   10.885.061,17   202.495.249,24   316.653.226,35    -195.789.758,89     -3.885.340,58   116.978.126,88




      237
      GLOSSARY




238
ABF (A B RBITRO Ankara pecuniary F)
The referee banks and financial (ABF) is a body for resolving disputes out of court provided
for in art. 128-bis of the Consolidated Banking Act (Banking Act), introduced by the Savings
Law (Law No. 262/2005). The organization and running of ABF are governed by the
"Measures on the systems of alternative dispute resolution relating to transactions and
banking and financial services" issued by the Bank of Italy June 18
2009.
The membership is required by all banks and other financial intermediaries. All ABF,
operational since October 15, 2009, may be submitted to all disputes relating to the
determination of rights, obligations and entitlements, irrespective of relationship to which
they relate. If the applicant's request relates to the payment of a sum of money for any
reason, the case falls within the knowledge of ABF on condition that the sum involved does
not exceed EUR 100,000.
Are excluded disputes relating to services / investment activities and the placement of
financial products and transactions and services that are components of financial products,
for which we can now turn to the Banking Ombudsman jury at the Council banks and
financial institutions (see definition) and in the future with the Chamber of Conciliation and
Arbitration of the next one up with Consob.
The completion of the phase of complaint to the intermediary is necessary precondition for
bringing the ABF, which can be used in cases of poor outcome of the complaint or failure of
the outcome of the claim within thirty days after receipt by the bank.
The action is free except for the payment of an amount equal to 20 euro contribution to the
costs of the procedure that must be repaid by the bank to the applicant if the board grants
the application in whole or in part.
Unlike the instrument of reconciliation, which seeks to facilitate the achievement of an
agreement between the parties, ABF expresses a decision on the complaints received
through a special formation of the Court, without prejudice to the right of parties to have
recourse to judicial or any other means provided for in order to protect their interests.
The ABF consists of a decision-making body consisting of three colleges (Milan, Rome and
Naples) and a technical secretariat held by the Bank of Italy. In each of the college decision-
making body is composed of five members, three of which (including the chairperson)
appointed by the Bank of Italy, one from an intermediary associations and associations
representing the customers.

ABS (A B SSETI ACKED S ECURITIES)
Financial instruments issued in connection with securitization transactions (see definition)
whose yield and redemption are guaranteed by the activities of the originator (see definition),
used exclusively to satisfy the rights incorporated in such securities. Technically, the debt
securities are issued by a special purpose vehicle (SPV - cf. Definition). The portfolio
underlying the securitization transaction may consist of mortgages, loans, bonds, trade
receivables, receivables from credit cards or more. Depending on the type of assets
underlying the ABS can be classified into:
     • credit loan obligations CLOs (the portfolio consists of bank loans);
     • CBO collateralized bond obligation (the portfolio is made up of bonds);
     • collateralized debt obligations (CDO's portfolio consists of bonds, debt instruments
       and securities in general);
     • RMBS residential mortgage backed securities (the portfolio consists of mortgage loans
       on residential property);
     • CMBS commercial mortgage backed securities (the portfolio consists of commercial
       mortgage loans).



2   Resolution No. 16763 of 29 December 2008, Consob has approved the rules for the implementation of Legislative
    Decree No 8 October 2007 179 on the Chamber of Conciliation and Arbitration, and procedures. The full
    operation of the Chamber will start once in place the necessary procedures. It may be submitted, at the initiative
    of the investor, all disputes relating to investment services, regardless of amount, provided that you have filed a
    complaint with the party.
      239
ACQUISITION FINANCE
Funding the service of corporate acquisitions.

ADR (A LTERNATIVE D ISPUTE eSolutions R)
In Italian, "Alternative Dispute Resolution." The symbol indicates the set of methods, tools,
techniques, extra-judicial dispute resolution: one or both parties rely on an impartial third
party to end a dispute without going to court.

ALM (A & L IABILITY SSETI M ANAGEMENT)
Integrated management of assets and liabilities designed to allocate resources in a
perspective of optimizing the risk-return ratio.

A LTERNATIVE I NVESTMENT
Range of forms of investment including, among other things, private equity investments
(See definition) and investments in hedge funds (see definition).

A SSETI M ANAGEMENT
Management activities of financial investments of others.

ATM (A UTOMATED T ELLER M Achin)
Automatic equipment for carrying out transactions by customers such as cash withdrawals,
payment of cash or checks, the request for account information, payment of utilities, phone
cards, etc.. The customer activates the terminal by introducing a card and entering a
personal identification code.

RISK-WEIGHTED ASSETS
It is the amount obtained by multiplying the total capital requirements (credit risk, market
risk and other prudential requirements) by a factor equal to:
     14.3 for companies belonging to banking groups;
       12.5 for banking groups (consolidated) and the companies do not belong to banking
       groups.

A HEARING
Control process on the assets and corporate accounts are being done both by internal
(internal audit - see. Definition) that third parties (external audits).

BACKTESTING
Retrospective analysis to verify the reliability of measurement of risk associated with the
positions of asset portfolios.

BANCASSURANCE
An expression that indicates the typical insurance product offering through the network
operations of the banks.

B Anking BOOK
Usually identifies the part of a portfolio of securities, or other financial instruments in
general, for all business "owner."

B ASILEA 2
New international agreement on capital which have been redefined guidelines for
determining minimum capital requirements for banks 2.


2 The first version of the agreement, known as Basel 1, dates from 1988 and it too was signed in the Swiss city where the headquarters of the
   Bank for International Settlements (BIS), an organization that since 1930 promoting monetary and financial cooperation on a global scale,
   note in Italy and Bank of Settlements

  International Settlements (BIS). Inside of it by the Basel Committee, established by the central bank governors of
  the ten most industrialized countries (G10) at the end of 1974, which was responsible for the drafting of the
  agreements. Make it today

240
The new prudential regulation is based on three pillars.
   First pillar (Pillar 1): understanding the target of a level of capitalization equal to 8% of
     risk weighted exposures was outlined a new system of rules for the measurement of
     risks inherent in the banking and financial (credit, counterparty, market and
     operational), which provides alternative methods of calculation are characterized by
     different levels of complexity with the ability to use, with the approval of the
     Supervisory Authority, the models developed internally;
   second pillar (Pillar 2): The banks should adopt processes and tools to determine the
     overall level of internal capital (Internal Capital Adequacy Assessment Process -
     ICAAP) adequate to manage any type of risk, but other than manned by the total
     capital requirement ( first pillar).
     All supervisors have the task of examining the ICAAP, to formulate an overall and
     activate, if necessary, take appropriate corrective action;
   third pillar (Pillar 3): introduces requirements for publication of information regarding
     capital adequacy, risk exposure and the general characteristics of the systems for all
     identification, measurement and management of those risks.

POINT B ASIS (basis points)
Corresponds to a hundredth of a percentage point (0.01%).

BASIS SWAP
A contract under which the exchange between two parties, of payments related to variable
rates based on a different index.

BENCHMARK
Benchmark for investments: it can be represented by the best-known market indexes or
other representative considered better risk / return profile.

BEST PRACTICE
Behavior commensurate with the most significant experiences and / or knowledge to the
highest level reached by referring to a certain field technical / professional.

CAGR - C G ROWTH OMPOUND A NNUAL R ATE (COMPOUND ANNUAL GROWTH RATE)
Annual growth rate applied to an investment or other activities for a period of years. The
formula for calculating CAGR is [(present value / base value) ^ (1 / number of years) -1].

CAPITAL ALLOCATION
Process leading to decisions about how to distribute investment among different categories
of financial assets (including bonds, equities and cash). The capital allocation decisions are
determined by the need to optimize the risk / reward ratio in relation to horizon and the
expectations of investors.

C Aptiva
Term generally referring to "networks" or companies that work exclusively with customers of
the company or group.




 by representatives from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, Netherlands, Spain,
 Sweden, Switzerland, United Kingdom, United States.
 The Basel Committee has no supranational authority: member countries may decide to accede to the agreements
 but are not bound to accept the decisions of the Committee. The obligation to open as required by Basel 2 for the
 EU countries follows, in fact, a directive of the European Parliament that has taken in September 2005.
 The first Basel Accord, signed by the central authorities of more than 100 countries, established the requirement
 for member banks to set aside a share capital, corresponding to 8% of lending regardless of the assessment
 through rating procedures, the reliability of companies that will had requested.
   241
CARTOLARIZZAZIONE
Operation of the transfer of credits or other financial assets not traded a special purpose
vehicle (SPV - cf. Definition) that the sole object of the execution of such operations and
provides the conversion of such debt or assets in securities traded on a secondary market.

C ERTIFICATI (INSURANCE) OF CAPITALIZATION
The capitalization contracts fall within the scope of the regulations on direct life insurance
pursuant to Legislative Decree no. 174 of 17 March 1995. As defined in Art. 40 of legislative
decree, to issue contracts under which an insurance company agrees to pay, in return for
payment of single premiums or regular, a lump sum equal to the premium paid regularly
reassessed on the basis of how well a separate internal management of financial assets or, if
higher, a guaranteed minimum return. They can not be shorter than five years and has
made it possible for the contractor to obtain the surrender of the contract from the
beginning of the second year. Under art. 31 of the aforementioned Legislative Decree no.
174, the financial assets covering technical provisions shall be reserved exclusively to
fulfilling the obligations related to contracts of capitalization (separate management).
Consequently, in the event of liquidation of the insurance company (art. 67), the
beneficiaries of such policies are in fact holders of claims secured by liens.

COMMERCIAL PAPER
Short-term securities issued to raise funds for third underwriters an alternative to other
forms of debt.

ONCILIATORE B C F Ankara pecuniary
The "Council banks and financial institutions - Association for the resolution of bank,
financial and corporate - ADR" is an initiative under the auspices of the ABI the top ten
banking groups, including the UBI Banca Group, to provide services to customers for the
solution Dispute rapid and efficient alternative to the courts (ADR from English: Alternative
Dispute Resolution - cf. definition).
The services offered are:
    Conciliation is to try to resolve a dispute by entrusting a person skilled and
       independent (the Council) the task of facilitating the achievement of an agreement
       between the parties to avoid litigation in the courts.
       The agreement is binding on the parties and may be approved by the Court making
       it enforceable. The conciliation service at the Council
       Banks and financial institutions is carried out by "Body of bank reconciliation,"
       entered in the register of institutions responsible for managing the reconciliation
       efforts in accordance with art. 38 of Legislative Decree no. January 17, 2003, No 5;
    Arbitration: procedure in which the parties submit a dispute to an arbitrator or a panel
       of arbitrators, giving them the power to decide;
    Banking Ombudsman Jury: body launched in 1993 in the ABI to which the customer
       remains dissatisfied with the decisions of the complaints office of the bank or whose
       claim has not succeeded within the prescribed period, may apply for free in the
       second instance. The management of the Ombudsman has been transferred to the
       Mediator for banks and financial institutions from 1 June 2007.
    Ombudsman may be subject to litigation of investment services relating to the
       determination of rights, obligations and entitlements, irrespective of relationship to
       which they relate. If the request relates to the payment of a sum of money, the
       matter falls within the jurisdiction of the Ombudsman if the amount claimed does
       not exceed EUR 100,000; The Ombudsman shall decide within 90 days of receipt of
       the request for intervention. The Ombudsman does not preclude recourse to the
       customer the option of applying to judicial authority at any time, in a conciliatory
       body, or to an arbitration, while the decision is binding on the party.



242
CONDUIT
See also the voice SPE / SPV.

C ONSUMER FINANCE (consumer credit)
Loans granted to households for the purpose of personal consumption of goods and
services.

C ONTRACT ADMINISTRATION OF WORK
Case report of work completed, regulated by Decree. September 10, 2003, No 276 (so-called
Biagi Law, based on the enabling act Feb. 14, 2003, No 30), whereby a legal entity that
relies on the work performance of an employee hired by an administration authorized by the
Ministry of Labour. The relationship between the user and the enterprise of administration
are governed by a contract that also covers wage profiles and contributions (social security
charges).
This form of contract replaced the temporary employment relationship established by Law
June 24, 1997, No 196 (cd Treu reform).

AT 1 R T C IER ATIO
Ratio of core capital (Tier 1 - cf. Definition) net of innovative capital instruments and the
total risk-weighted assets (see definition).

CORPORATE GOVERNANCE
Through the composition and functioning of the internal and external organs, the structure
of corporate governance defines the distribution of rights and responsibilities between the
participants in the life of a society, referring to the division of labor, to take responsibility
and decision-making power . Fundamental objective of corporate governance is the
maximization of shareholder value, resulting in a medium-to long-term positive factors for
the other stakeholders such as customers, suppliers, employees, creditors, consumers and
the community.

C OST I nHow R ATIO
Economic indicator defined as the ratio between operating expenses and revenues.

OVERED C BOND
Special bonds that, in addition to the guarantee of the issuing bank may also benefit from
the guarantee of a portfolio of mortgage loans or other high quality
sold for this purpose, a special purpose vehicle 3.
Banks wishing to issue covered bonds must have a capital of not less than EUR 500 million
and a total capital ratio at the consolidated level of not less than 9%. Assets that could be
used as collateral, the shares sold shall not exceed the following limits set according to the
level of capitalization:

                                                       9% and 10% with Tier I
25% in cases of capital charge                         ratio                                6%;
                                                              11% with Tier I
60% in cases of capital charge                         10% e ratio                           6,5%;
                                                               11% with Tier I
no limit in cases of capital charge                            ratio                           7%.

CPI (C REDIT P ROTECTION I NSURANCE)
Insurance credit protection that may be subscribed by the debtors of financial loans
(personal loans, mortgages and credit cards) to provide them (as the insured) to cover
payment of the outstanding debt or a certain number of installments in

3   In Italian law the law of 30 April 1999, no 130, governs the case of bonds (Art. 7-bis). The operational plan
    provides for the sale by a bank to a company vehicle high credit quality of assets (loans and mortgages to the
    government) and the issuance by a bank, also different from the seller, obligations guaranteed by the company
    vehicle claim on the assets purchased and made into a special fund. The application profiles of the guidelines are
    contained in the Ministerial Regulation No. 310, 14 December 2006 and the supervisory arrangements of the
    Bank of Italy on May 15, 2007.

                                                                                                                  243
case of temporary or permanent adverse events (involuntary loss of job, illness, injury,
permanent disability or death). These policies can also be coupled to finance companies,
with a coverage of events that may affect the shareholders, directors or key figures of the
company.

C REDIT CRUNCH (credit crunch)
Significant decline (or sudden tightening of conditions) of the supply of credit to companies
after a prolonged period of expansion, capable of accentuating the downturn.

C REDIT S D EFAULT WAP
Contract under which a person, upon payment of a periodic premium, transfer to another
entity, the credit risk inherent in a loan or a title, the occurrence of an event related to the
deterioration of the creditworthiness of the borrower.

C ADEQUATE INCOME RESTORED
Position for which the Bank has agreed with the debtor time to pay, renegotiating the
conditions of exposure rate lower than the market.

DEFAULT
Identify the condition of stated inability to honor its debt and / or payment of interest
thereon.

D ERIVATI OTC trading with customers
Support activities for clients in the management of financial risks, particularly those arising
from fluctuations in exchange rates, rates of interest and the price of commodities (raw
materials).

D ISASTER RECOVERY GEOGRAPHIC
Set of technical procedures and organize in the face of a catastrophic event that results in
the unavailability of complete data processing site. The goal is to re-enable critical
applications for the company in a secondary site (known as recovery). The disaster recovery
system is defined as "geographical" when it is located at least 50 km from the source
system. The primary objective is to mitigate the risks arising from catastrophic events with
possible impact on an entire metropolitan area (ie earthquakes, floods, war etc.) As required
by international safety standards.

DURATION
Refers to a security or a bond portfolio, is an indicator usually calculated as a weighted
average of the schedule of payments for interest and principal associated with the same
title.

EAD (E Xposure EFAULT ATD)
Estimating the future value of an exposure at default (as defined) of the debtor.

ETF (T RADED E XCHANGE F UND)
Particular type of investment fund trades on a stock, with the sole objective of investment to
replicate the index to which it relates (benchmark) through a totally passive management.
The ETF embodies the characteristics of a fund and a stock, allowing investors to leverage
the strengths of both instruments through diversification and reducing the risk of their
funds, while ensuring flexibility and transparency of information real-time trading of the
shares.




244
ETC (E XCHANGE C OMMODITIES RADED T)
Securities issued in respect of the issuer or investment in physical commodities (in this case
are defined physically-backed ETCs) or derivative contracts on commodities. The price of the
ETC is, therefore, directly or indirectly related to the underlying trend. Similarly to the ETF
(see definition) ETCs are traded on the stock market as shares, passively replicating the
performance of the commodity or commodity indices to which they refer.

And URIBOR (E URO Interbank Offered Rate)
Interbank interest rate at which leading banks exchange deposits in euro at varying
maturities. It is calculated as the simple average of daily quotations at eleven o'clock on a
sample of banks with high credit selected periodically by the European Banking Federation.
Euribor contracts are tied to a number of variable rate loan (eg home loans).

FACTORING
Transfer agreement, without recourse (with credit risk borne by the transferee) or recourse
(with credit risk borne by the seller), trade receivables to banks or specialized companies for
administration and collection, which can be associated with a loan to the transferor.

FAIR VALUE
Amount for which, under conditions of free competition, a property may be exchanged or a
liability settled, between knowledgeable, willing parties. Often it is the same as the market
price. In accordance with IAS (see definition) banks in applying the fair value measurement
of financial instruments (assets and liabilities) held for trading and available for sale and
derivatives, and may also use it for the promotion of investments and tangible fixed assets
and intangible assets (with different modes of impact on the income statement for the
different activities in question).

F Loor
Interest rate derivative contract, negotiated outside the regulated markets, which is a limit
to the reduction of the minimum lending rate.

FRA (F ORWARD ATE A greement R)
Contract whereby the parties agree to receive (pay) at the end the difference between the
value calculated according to amount of operation and a predetermined interest rate to the
value obtained on the basis of the level reached by a reference rate chosen by the parties.

FUNDING
Supply in various ways, the funds needed to finance business operations or a particular
financial transactions.

FUTURE
Standardized forward contracts, which the parties agree to exchange, at a predetermined
price and at a future date, the securities or commodities. These contracts are normally
traded on organized markets where it is guaranteed to run. Unlike options (see definition)
which confer the right but not the obligation to buy, the future require the two parties to sell
or buy.

GOODWILL
Identifies the goodwill paid for the acquisition of a shareholding, or the difference between
the cost and the corresponding share of net assets for the part not due to active elements of
the acquired company.




                                                                                            245
HEDGE FUND
Mutual fund that has the chance - denied to the incumbents - to use instruments or
sophisticated investment strategies such as short selling (short selling), derivatives (options
or futures, including more than 100% of assets), the hedging
(Cover of the portfolio from market volatility through short selling and use of derivatives)
and leverage (the debt in order to invest borrowed money).

IAS / IFRS
International Accounting Standards (Internatrional Accounting Standards - IAS) issued by
International Accounting Standard Board (IASB), a private international organization
established in April 2001, involving the accounting profession in most countries and, as
observers, the European Union, IOSCO (International Organization of Securities
Commissions) and the Basel Committee. This institution has collected the legacy of
International Accounting Standards Committee (IASC), established in 1973 to promote the
harmonization of rules for the preparation of financial statements of companies. With the
transformation of the IASC into the IASB has decided, inter alia, to name the new
accounting standards to International Financial Reporting Standards (IFRS).
At the international level is an ongoing effort to harmonize IAS / IFRS with U.S. GAAP (see
definition).

IBAN (I nternational B ANK A CCOUNT N UMBER)
International standard used to identify the user bank. From 1 July 2008 the use of IBAN -
consisting of 27 characters - it is obligatory not only for foreign payments, but also to those
made in Italy.

I dentity ACCESS MANAGEMENT
Technical and organizational solution that allows you to manage and control the entire life
cycle of allocation, management and revocation of access privileges to IT resources and then
to corporate information by each user.

The MPAIRMENT
In the context of IAS (see definition) refers to the loss in value of a budget activity, detected
when the carrying amount is greater than the recoverable amount of that amount that can
be achieved with the sale or use of assets . The impairment test must be performed on all
activities, except for those carried at fair value, for which the losses (and gains) in value are
implied.

The NCAGLI
Receivables at nominal value against persons in situation of objective difficulties, but
believed to be overcome in a reasonable period of time.

The Ndex LINKED
Life insurance policy whose performance at maturity depends on the performance of a
benchmark that can be a stock index, a basket of securities or some other indicator.

I NDEX T ANKAN
Indicator of the Japanese economy built on the basis of the results of an investigation
conducted by the Bank of Japan last month of each quarter. Subject of investigation are
both the manufacturing and the services sector, with a segmentation according to business
size (large, medium, small enterprises).

I nternal AUDIT
Function that is institutionally given the internal audit activity (see definition).




246
The NVESTING ESTATE
Property held for the purpose of obtaining income, benefit or increase in value.

INVESTMENT BANKING
The investment banking is a highly specialized segment of finance, which deals in
particular to assist companies and governments in issuing securities and, more generally,
of raising funds on the capital market.

INVESTMENT GRADE
High-quality bonds that have received a rating (see definition) medium-high
(Eg, no less than BBB by Standard & Poor's).

The NVESTOR
Party, other than by originator (see definition) and the sponsor (see definition), who holds a
securitization exposure to (see definition).

IRB (I nternal R ating Ased B)
Approach of rating (see definition) in the interior area of Basel 2 (see definition), divided into
basic and advanced methods. The advanced method is used only by lenders who meet the
minimum requirements more stringent and requires that all estimates of the inputs for the
assessment of credit risk (PD, LGD, EAD, Maturity - cf. Definitions) are carried out
internally. Otherwise, according to the basic method, only the PD is estimated by the bank.

J oint Venture
Agreement between two or more enterprises to conduct economic activity through a specific,
usually, the establishment of a joint stock company.

JUNIOR
In a securitization transaction (see definition), is the most subordinated tranche of
securities issued, which is the first to bear losses that may occur during the recovery of the
underlying assets.

L easing
Contract under which one party (lessor) grants to another (lessee) for a specified time the
use of property purchased or built by the landlord on the tenant selection and display, with
the option for the latter to purchase ownership of the property to predetermined conditions
at the end of the lease.

LGD (OSS The G iven D EFAULT)
Estimated loss rate in the event of default (see definition) of the debtor.

L ower T IER II
Subordinated liabilities that contribute to the formation of the Tier II or supplementary
capital (see definition) provided that the contracts that govern the issue explicitly state that:
   a)    in the event of liquidation of the entity issuing the debt is repayable only after they
         have met all other non-subordinated creditors;
   b)    the duration of the relationship is equal to or greater than 5 years and, if the term is
         indefinite, is expected to repay a notice of at least 5 years;
   c)    the early repayment of liabilities takes place only at the initiative of the issuer and
         provides for the clearance of the Bank of Italy.

The amount of subordinated loans admitted to the supplementary capital is reduced by one
fifth each year during the 5 years preceding the date of the report, in the absence of an
amortization schedule that produces similar effects.

                                                                                              247
MARK TO MARKET
Evaluation of a portfolio of securities and other financial instruments based on the prices of
the market.

MARK DOWN
Difference between the average rate paid technical forms of direct funding considered el
Euribor.

MARK UP
Difference between the average lending rate of the technical forms of employment
considered el Euribor.

MATURITY
Residual life of an exposure, calculated according to Prudential.

MERCHANT BANKING
Under this meaning is covered by the underwriting of securities - equity or debt - corporate
customers for subsequent placement on the market, taking a shareholding of more
permanent but always with the aim of a subsequent transfer, the advisory company for the
purposes of mergers and acquisitions or restructuring.

MEZZANINE
In a securitization transaction (see definition), is the tranche subordination degree
intermediate between that of the junior tranche (see definition), and the senior tranche (see
definition).

MONOLINE
Insurance companies whose only line of business is the financial assurance. Inside of their
activities is including the insurance obligations (such as ABS and MBS) which has as its
underlying mortgage loans and private debts. In exchange for a commission, the insurance
guarantees the repayment of debt directly assuming the risk of insolvency of the debtor.

MUTUI SUBPRIME
The concept is not applicable to subprime mortgage operation in itself, but rather to the
borrower (the borrower). Technically subprime means a borrower who does not have a
"credit history" fully successful, as characterized by negative credit events such as, for
example, the presence of payments on previous loans not repaid, the unpaid checks and /
or protest, and so on. These past events are symptomatic of a greater intrinsic risk of the
counterparty, which corresponds to a higher return required by an intermediary to grant the
loan.
The operation was developed with sub-prime customers in the U.S. financial market where,
in view of the conclusion of such loans was usually accompanied by a securitization
activities and issuance of securities.
Are called Alt-A mortgage loans other than those granted on the basis of incomplete or
inadequate documentation.

NON PERFORMING
Term generally refers to loans with an irregular pattern.

NUTS (N OMENCLATURA ERRITORIALI T U NITS OF STATISTICS FOR THE S 'I TALY)
Nomenclature used for statistical purposes in Europe (Eurostat), which provides the
following
subdivision:
Northern Italy: Piemonte, Valle d'Aosta, Liguria, Lombardy, Trentino Alto Adige
                    Veneto, Friuli Venezia Giulia, Emilia Romagna;
Central Italy:      Tuscany, Umbria, Marche, Lazio;


248
Southern Italy: Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sicily, Sardinia.

O BBLIGAZIONI STRUCTURED
Bonds whose interest and / or redemption value depends on a parameter of the real nature
(linked to commodity prices) or the development of indexes. In such cases, the implicit
option is separated from the host contract for accounting purposes.
In the case of parameters or to inflation rates (such as Treasury Credit Certificates) the
implicit option is not separated from the host contract for accounting purposes.

O ption
Represents the right but not the commitment, acquired with the payment of a premium, to
buy (call option) or sell (put option) a financial instrument at a specific price (strike price)
within (American option) or at a future date (European option) determined.

Mutual funds (OF THE B ODY C NVESTING OLLETTIVO OF ISPARMIO R)
This item includes UCITS (see definition) and other investment trusts (mutual funds real
estate mutual funds closed).

UCITS (OF THE B ODY C NVESTING OLLETTIVO V ALUES IN OBILIARI M)
The item includes the open-ended investment funds, Italian and foreign, and investment
companies with variable capital (SICAV).

ORIGINATOR
Person who gives up his portfolio of assets in cash deferred to the SPV (see definition) to be
securitized.

OTC (VER O T HE C ounter)
Transactions carried out directly between the parties, without using a regulated market.

P AST TWO
Due exposure and / or past due by more than 180 days, according to the definition
provided in the existing supervisory instructions.

W orld SURVEILLANCE
It is the sum of core capital - for the calculation without any restrictions - and
supplementary capital, which is admitted to the upper limit of core capital.
Are deducted - to 50% from Tier and 50% from Tier - investments, innovative capital
instruments, hybrid capital instruments and subordinated assets held in other banks and
financial companies (in particular, are minus investments in banks and financial
institutions in excess of
10% non-consolidated, as well as all the shares in banks and financial companies of less
than 10% and subordinated assets from banks, given for the share exceeds 10% of core
capital and supplementary).
They are also alleged to investments in insurance and subordinated debt issued by them, as
well as the securitization positions.

PAYOUT RATIO
Identify the percentage of net income distributed by the company to its shareholders.

P LAIN vanilla swap
Interest rate swap (see definition), in which one party receives a variable payment linked to
the LIBOR (usually the six-month LIBOR rate) and corresponds to the other party a fixed
interest rate, calculated by adding a spread to the performance of a type defined bonds.


                                                                                             249
PD (P ROBABILITY OF D EFAULT)
The probability that the borrower reaches the default status (see definition) in the context of
an annual time horizon.

P OLIZZE Capitalisation
See in this respect the "Certificates (insurance) of capitalization."

POS (P oint ALE SFO)
Automated equipment through which you can make, debit card, credit or debit card, the
payment for goods or services from the supplier.

PREFERENCE SHARES
Innovative capital instruments issued by foreign subsidiaries included in the banking group,
that associated with other forms of remuneration anchored on market characteristics of
subordination particularly prominent, such as failure to recover in future years of interest
not paid by the bank and parent participation in losses of the bank where they result in a
significant reduction in capital requirements. The conditions under which the preference
shares can be counted as core capital of banks and banking groups shall be established by
Regulatory instructions of the Bank of Italy.

P remain under
Financial instruments whose scheme provides for negotiating with the holders of documents
of the loan are met then the other creditors in a liquidation of the issuing entity.

PRICE SENSITIVE
Term that is generally referring to information or data is not public domain, likely, if made
public, to influence significantly the price of a title.

PRIVATE EQUITY
Activities aimed at acquisition of ownership interests and their subsequent transfer to
specific counterparts, without public.

PROJECT FINANCE
Financing projects based on a forecast of cash flows generated by them. Unlike in ordinary
credit risk analysis, the technique of project finance provides, in addition to the analysis of
expected cash flows, the examination of specific factors such as the technical characteristics
of the project, the suitability of the sponsor to make it to the markets for placement product.

R ating
Evaluation of the quality of a company or its debt securities issues on the basis of the
financial viability of the company and its prospects.

RISK ARISING FROM SECURITIZATION MEANS
The risk that the economic substance of the securitization is not fully reflected in pricing
decisions and risk management.

R ISCHIO BUSINESS
The risk of adverse changes and unexpected earnings / margins than expected data, linked
to volatility in volumes due to competitive pressures and market situations.




250
R ISCHIO CONCENTRATION
Risk arising from exposures in the banking counterparties, or groups of counterparties in
the same industry or engaged in the same activities or belong to the same geographic area.
The concentration risk can be divided into two subtypes:
    single name risk concentration,
       sector concentration risk.

R ISCHIO CREDIT
Risk of loss resulting from default by a party against whom there is no credit exposure.

R ISCHIO OF COMPLIANCE
The risk of incurring legal or administrative sanctions, financial loss or significant damage
to reputation as a result of violations of mandatory rules (of law or regulations) or self
(statutes, codes of conduct, Codes of Conduct).

R ISCHIO LIQUIDITY
The risk of failure to fulfill its payment obligations that may be caused by inability to raise
funds or to get them to cost more than the market (funding liquidity risk) or the presence of
limits on realization of assets (market liquidity risk) incurring a capital loss.

R ISCHIO MARKET
The risk of changes in market value of positions in the trading book for regulatory purposes
to unexpected changes in market conditions and merits credit.
It includes risks arising from unexpected changes in exchange rates and prices goods that
relate to the positions of the budget.

R ISCHIO OF REPUTATION
The risk of incurring losses resulting from a negative perception of the image of the bank by
customers, counterparties, shareholders of the bank, investors, regulators and other
stakeholders.

INTEREST RATE RISK
Current or prospective risk of a change in net interest income and economic value of
companies as a result of unexpected changes in interest rates that impact the banking
book.

R ISCHIO OPERATING
The risk of incurring losses resulting from inadequate or failed internal processes, people
and systems or from external events. Fall into this category losses arising from fraud,
human errors, interruptions of operations, unavailability of systems, breaches of contract,
natural disasters. This includes legal risk.

R ISCHIO SHARED
Risk of losses arising from the investment portfolio.

R ISCHIO RESIDUE
Risk of incurring losses resulting from unforeseen ineffectiveness of accepted techniques for
mitigating the credit risk used by the company (eg mortgage).

R ISCHIO STRATEGY
Current or prospective risk of a decline in earnings or capital arising from:
    changes in the business environment,
      inadequate implementation of
      decisions;
                                                                                           251
         lack of responsiveness to changes in the competitive environment.

SENIOR
In a securitization transaction (see definition) is the tranche with the highest degree of
privilege in terms of priority of payment and reimbursement.

SENSITIVITY ANALYSIS
Analysis system that aims to identify the sensitivity of certain assets or liabilities related to
changes in interest rates or other benchmarks.

SEPA (S ingle E uropean P AYMENTS TO REA)
The Single Euro Payments Area came into force on 1 January 2008, inside of which you can
gradually make and receive payments in euro to basic conditions, rights and obligations
uniform. It joined the 31 European countries (in addition to the 27 European Union
countries including Switzerland, Norway, Iceland and Liechtenstein). The introduction of the
new Banking Code IBAN (see definition) is one tool used to standardize banking
transactions.

SERVICER
In securitization transactions (see definition) is the subject - on the basis of a special
servicing contract - continues to manage debt or assets to be securitized after they have
been transferred to the company in charge of the issuance of vehicle titles.

IDE S POCKET
It is a measure to protect all participants in a hedge fund (see definition), which is activated
only in "exceptional cases" where the sudden reduction in the liquidity of assets held in the
portfolios of funds, combined with high requests for redemption of units, can have negative
consequences for the management of the fund. In order not to prejudice the interest of
participants in the hedge fund, in case it becomes necessary to liquidate assets become
illiquid in the absence of a market that ensures the formation of reliable prices, the creation
of side pocket allows you to transfer illiquid assets to a fund Joint investment of a closed
specially formed (so-called closed-end fund side pocket).
The operation is performed through a partial division of the hedge fund as a result of which
liquid assets are still held in the fund, while those illiquid assets are transferred to the
closed side pocket. The hedge fund, but reduced liquid, continues to conduct its business in
accordance with the policy laid down in the regulation of investment management, while the
side pocket of closed-end fund (which may not issue new shares) is operated in a
perspective of mobilization of illiquid assets held, proceeding gradually to the
reimbursement of shares that the assets are liquidated.

S TENDERER
Claims against persons in a state of insolvency (even if not judicially determined) or in
substantially similar situations.

SPONSOR
Party, other than by originator (see definition), which establishes and manages a conduit
(see definition) in the context of a securitization transaction (see definition).

SPREAD
This term usually indicates:
     the difference between two interest rates;
     the difference between the bid and ask prices in trading in securities;
   the increase that the issuer of securities recognized in addition to a reference rate.


252
SPE / SPV
The Special Purpose Entity (SPE) or Special Purpose Vehicle (SPV) - also known as
"conduits" - are individuals (companies, trusts or other entities) that are specially made to
achieve a specific objective, clearly defined and delimited, or to carry out a specific
operation.
The SPE / SPV have a legal structure independent of the others involved in the operation
and generally do not have their operational and management structures.

STAKEHOLDER
Individuals or groups, of particular interests in respect of a company or because they
depend on this for the realization of their goals or because they suffer a significant positive
or negative effects on its business.

S tock OPTION
Term used to describe the options available to managers of a company, allowing you to buy
shares of the company based on a predetermined exercise price.

STRESS TEST
Simulation procedure used to evaluate the impact of market scenarios "extreme" but the
plausibility of the risk exposure of the bank.

SURROGA
Procedure by which the borrower (ie those who have entered into a loan) contracts with
another bank for a new loan to pay off the original mortgage by transferring to the new bank
lending guarantees the same (especially mortgage) that the bank already watched the
"original".

S WAP (interest rate swaps and currency swaps)
Operation consists in the exchange of cash flows according to certain contractual
arrangements between operators. In the case of a swap interest rates (interest rate swaps),
the parties exchange interest payment streams calculated on a notional principal of
reference according to different criteria (eg. A party is a flow-rate, the other variable rate). In
the case of a swap currencies (currency swap), the parties exchange specific amounts of two
different currencies, returning in time according to preset modes that cover both principal
and interest.

T ACE RISK FREE - FREE RATE R ISK
Interest rate of a risk-free assets. It is used in practice to indicate the rate of short-term
government bonds, which also can not be considered risk free.

T IER I (core capital)
It consists of the paid-up capital, reserves (including share premium), by innovative capital
instruments (only in conditions which ensure the full stability of the bank) 4, the usefulness
of the term, the prudential filters positive core capital . These elements are to be deducted
from the shares, the goodwill, intangible assets, losses incurred in previous years and in the
current year, calculated value adjustments on trading book for supervisory purposes, the
negative impact of prudential filters Tier .




4 The innovative capital instruments may be taken in core capital by a maximum of 20 per cent of the amount of core capital, including the
  instruments themselves.In this limit the scope of instruments that provide for automatic review clauses in the rate
  of return (so-called step-up) related to the redemption option clauses or other appropriate measures to encourage
  repayment by the issuer must be included in the limit of 15 percent of the amount of core capital including the
  instruments themselves. Any surplus may be counted as Tier II capital, like hybrid capital instruments.

                                                                                                                                     253
T IER II (TIER)
It consists of the revaluation reserves, from the innovative capital instruments not counted
as core capital, hybrid capital instruments (other instruments of indeterminate duration
and liabilities repayable on demand of the issuer with the consent of the Bank of Italy), the
subordinated debt (for a limited amount of 1 / 5 during the five years preceding the date of
expiry), the net gains on equity investments, the positive prudential filters supplementary
capital, by any excess of total net write-downs than expected loss, the positive differences
exchange. From these elements are to be deducted the following negative items: the net
losses on investments, prudential filters negative supplementary capital, other negative
elements.

T IER III (Tier 3 subordinated loans)
Subordinated loans, which meet the following conditions:
    have been fully paid;
    not included in the calculation of supplementary capital (see definition);
    have an original maturity of less than two years, if the deadline is indefinite, providing
       for a notice for repayment of at least 2 years;
    meet the requirements for similar liabilities in tier supplementary except, of course, the
       truth regarding the life of the loan;
    are subject to the "tying clause" (so-called "lock-in clause"), whereby the principal and
       interest can not be refunded if the refund reduces the amount of total capital funds
       of the bank to a level below
       100% of the total capital requirements.

T rading BOOK
Usually identifies the part of a portfolio of securities, or other financial instruments in
general, for all trading activities.

TROR (T OTAL R ATE S TURN OFR WAP)
It is a contract under which the "protection buyer" (also called "total return payer) agrees to
assign all the cash flows generated by the reference obligation to the" protection seller "(also
called" total return receiver), who moved to return to the "protection buyer" cash flows
related to performance of the "reference rate". The dates of payment of cash coupon (or the
date of expiry of the contract) the total return payer "is the total return receiver" the
eventual appreciation of the reference obligation in the case of depreciation of the reference
obligation is instead the "total return receiver" to pay its equivalent to the total return payer
". In essence, the TROR configure a structured financial product, comprising the
combination of a credit derivative and a derivative interest rate (interest rate swaps "- cf.
Definition).

T rading ON LINE
System for the sale of financial assets held, as implemented by computer.

TRIGGER EVENT
Contractual default event which triggered the occurrence of certain powers on the part of
contractors.

UNIT-LINKED
Life insurance policies with benefits linked to the value of investment funds.

P to T U IER II
Hybrid capital instruments that contribute to the formation of the Tier II or supplementary
capital (see definition) where the contract provides that:
   a)   in case of losses that result in a reduction of paid-up capital and reserves below the
        minimum level of capital provided for the authorization

254
          all banking activities, the amounts arising from these liabilities and accrued interest
          can be used to cover the losses, in order to enable the issuer to continue the
          business;
  b)      in the event of negative trends of management, may be suspended the right to return
          to the extent necessary to prevent or minimize the occurrence of losses;
   c)     in the event of liquidation of the issuer, the debt is repaid only after they have been
          satisfied with all other subordinated creditors.

The perpetual hybrid capital instruments must not be for a period of at least 10 years. The
contract must be made explicit that the clause makes the repayment of the loan to the
clearance of the Bank of Italy.

U.S. GAAP (G ENERALLY A CCEPTED A CCOUNTING P RINCIPLES)
Accounting standards issued by FASB (Financial Accounting Statement Board), generally
accepted in the United States of America.

VAR (V ALUE AT R ISK)
It measures the maximum potential loss that a position in a financial instrument or a
portfolio can be defined with a probability (confidence level) at a given time horizon (period
or holding period).

WARRANT
Negotiable instrument that gives the holder the right to buy from or sell to issuing this final
fixed-income securities or shares according to specific rules.

ZERO-COUPON
Zero coupon bonds, whose return is determined by the difference between the issue price (or
purchase) and the redemption value.




    255
Report of Independent Auditors




256
Auditors' report




  257


				
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