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					     RELATIONS
         E
     BUDGET

          al
December 31, 2009
                               Reports and
                                Budget
                 At December 31, 2009




European Regional Bank Public
Limited Company
Part of the "Gruppo UBI Banca" Social capital €
468,880,348.04 ABI Code 6906.2 - CCIAA 0174941
Registered in firms Cuneo, Tax Code and VAT 01127760047 Register of Banks No. 5240.70
Registered Office: Via Roma, 13 - 12100 Cuneo
Member of the Interbank Fund for Deposit Protection Fund and the National Guarantee



2
Index
Our mission "............................................. .................................................. ... 4 Positions and General Management
......................................... ................................. 5 territorial structure of the UBI Banca Group .......... The rating
............................................... 6 .................................................. .................................................. ................. 7 Key figures and
indicators ............................ .................................................. ......... 10 Management Report ..............................................
............................................ 11
      The reference scenario .............................................. ................................................. 12 The activities of the European Regional
      Bank in 2009 ......................................... ................ 23 The system of internal control ............................
      .................................................. ........... 36 Financial Statements .................................. reclassified ..................................................
      37 The research and development .......................................... Contractual relations ............................................... 46 with group
      companies .............................................. More information .................... 47 ........................... ..................................................
      ............................. 48 Significant events after the balance sheet .......... ......................................... 65 outlook ....
      .................................................. Proposals to ........................ 65 ..................... .................................................. ............................
      66
Financial Statements ................................................ .................................................. . 67
      Balance ................................................ .................................................. Income ........................................ 68 .......
      ..................................................        .................        69         Statement              of        Comprehensive             Income        ............................
      ............................................... 70 Schedule changes in equity .............................................. Cash Flow ..................... 71
      .......................... .................................................. ...................... 73
                     The Notes ............................................... .................................................. . 74 Part A - Accounting Policies
                       ............................................ ......................................... A.1 75 - Party General ...........................................
                                                                               .................................................. . 75
            Section 1 Statement of Compliance with International Accounting Standards ............ 75 Section 2 Basis of preparation
            ...................... ......................................... 75 Section 3 Events after reporting date Budget ........................... ................ 77
            Section 4 Other aspects .................................................. ........................ 77 List of IAS / IFRS endorsed by ............... ...........
            80
       A.2 - the major budget items ....................................... .......... 84 A.3 - Information on fair value .........................................
             ................................. 105 Part B - Balance Sheet .......................................... ............ 108 Part C - Income Statement
    .......................................... ................. 157 Part D - Comprehensive income ............................................ .............................. 176
                                                    Part E - Information on risks and hedging policies ................... 177
          Section 1 Credit Risk ............................................. .................................. 177 Section 2 Market R isk ..........
          ..................................................       ...................        198           Section    3    Liquidity       Risk           ................ .........
          .................................................. .. ........................................... 225 Section 4 Operational r isks .......................................
          233
Part F - Information on capital ............................................ ......................... 239 Part G - Business Combinations or business
enterprise ............. 244 Part H - Transactions with related parties .......................................... ....................... 245 Part I - Share-
based payments Equity-.................. 250 Part L - Segment ........................................... ................................... 251 Annexes to the
Financial Statements ........................................... ..................................... 252 Report of Independent Auditors
............................................ ........................... 277 Report of the Board ............................................. ............................... 279




                                                                                                                                                                                                      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

President                                 Dr. Piero Bertolotto (*)

Vice Chairman                             Lawyer Prof. Mario Cera (*)

Vice President                            Dr. Joseph Camadini (*)

Councillors                               Arch John Arbocco
                                          Dr. Giampiero Auletta Armenise
                                          Dr. Piero Bassetti
                                          Dr. Dario Chiapello
                                          Dr. Pier Giorgio Ferrua
                                          Lawyer Prof. Maurilio Fratino
                                          Dr. Dario Gastaldi
                                          Dr. Carlo Porcari (*)
                                          Dr. Richard Ravizza
                                          Dr. Angelo Dario Scotti
                                          Dr. Livio Strazzera (*)
                                          Lawyer Best regards,

(*)         Executive Committee members



AUDITORS

President                                 Dr. Philip Rovetta

Standing Auditors                         Dr. Paolo Delfino
                                          Prof. Piero Mella

Alternate Auditors                        Dr. Giampietro Rubino
                                          Dr. Claudio Uberti



DIRECTORATE GENERAL

General Manager                           Rag. Roberto Tonizzo

Deputy General Manager                    Dr. Richard Barbarini


AUDITORS

Ernst & Young SpA




- Situation on March 2, 2010 -




                                                                           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 connection with the ongoing deterioration of the economic scenario, 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 linked to the" Bank Financial Strength Rating "(and the
related "Baseline Credit Assessment") as an expression of the inherent strength of the borrower.
Consequently, on November 18 have been placed under review 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 less than two notches) to Baa3 (corresponding to the
BCA at least three notch) 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.
In early 2010, Fitch has published a review of the rating methodology on hybrids, in which plans for a wider scale than the
rating applied notch reference deafult the 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.




1 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 Upper Tier II issue 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 rating was similarly lowered by Fitch to A-.

                                                                                                                                                                7
    STANDARD & POOR'S                                             (i) Ability to repay debt maturing
    Short-term Counterparty Credit                                     less than 1 year
                                                    A-1
    Rating (s)                                                        (A-1: best rating - D: worst rating)

    Long-term Counterparty Credit
                                                                 (ii) With reference to debt exceeding
    Rating (ii)                                      A                 1 year, indicating the ability to pay
    Outlook                                        Stable
                                                                       interest and principal, together with
                                                                       a         possible          sensitivity      to       effects
    REVIEWS ON EMISSIONS
                                                                       unfavorable change in circumstances or
    Senior unsecured debt                            A
                                                                       to changing economic conditions
    Subordinated debt (lower tier II)               A-
                                                                      (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                 repayment of foreign currency debt
    Long-term debt and deposit ratings (I)           A1               local long-term (maturing or
                                                                                                                                th
    Short-term debt and deposit ratings                               more             to    1     year).    Through             e
                                                   Prime-1
    (II)                                                              methodology JDA (Joint Default Analysis)
    Bank Financial Strength Rating                                    this          rating      associated          to    strength
                                                     C
    (BFSR)(III)                                                       financial         intrinsic         (Bank          Financial
                                                                                                                                th
    Baseline Credit Assessment (BCA)                 A3               Strength        Rating) the evaluation            about    e
    Outlook (deposit ratings)                      Stable             probability       of     intervention     in     case     of
    Outlook (Bank Financial Strength                                  necessary, by external support
    Rating)                                       Negative            (Shareholders, group or
    REVIEWS ON EMISSIONS
                                                                      institutions       officers) (Aaa:         first quality -
    Senior unsecured LT                              A1
                                                                      Baa3 quality)
    Senior unsecured ST                             P-1          (II) Capacity                           to repay debt   currency
    Lower Tier II subordinated                       A2
                                                                       local short-term (maturity of less than
                                                                       1 anno)
    Tier III Subordinated                            A2
                                                                                                  (Top-1: top quality - Not Prime:
    Preference shares
                                                    Baa3               speculative grade)
    (Formerly BPB-CV and Banca Lombarda)
    EUR Commercial Paper Programme                 Prime-1
    French Certificats de Dépôt                                 (III)                      This rating does not relate to the ability
                                                   Prime-1
                                                                           reimbursem
    Programme                                                         of ent                 of     debt     but takes             in
    Covered Bond                                    Aaa               account                   the strength                financial
                                                                      bank's intrinsic (through analysis
      factors such as geographical locations, the diversification, the financial fundamentals), in the absence of external media
      (A: best rating - E: worst rating)




8
                                                                                                (1) capacity to repay debt in the short term (lasting less than 13 months) (F1: best rating - D:
                                                                                                       worst rating)
        FITCH RATINGS
                                                                                                (2) Ability to meet financial commitments over the long term regardless of the maturity of
        Short-term Issuer Default Rating (1)                                  F1                                    This rating is an indicator of the likelihood of
                                                                                                      individual bonds.
        Long-term Issuer Default Rating (2)                                  A+                       issuer default (AAA: best rating - D: worst rating)
                                                                                                (3) Evaluation of a bank's intrinsic strength (profitability, balance the budget, the commercial
        Bank Individual Rating (3)                                           B/C                     network, capacity management, operating environment and prospects), view the
                                                                                                     assumption that the same can not rely on external support (if any intervention a lender of
        Support Rating (4)                                                     2
                                                                                                     last resort support
        Support Rating Floor (5)                                            BBB

        Outlook for Long-term Issuer Default
        Rating                                                              Stable
        REVIEWS ON EMISSIONS
        Senior unsecured debt                                                A+
        Lower Tier II subordinated                                            A
        Preference shares                                                     A-
        Tier III Subordinated debt                                            A-
        EUR Commercial Paper Programme                                        F1
        Covered bonds                                                       AAA



         shareholders, etc.).
         (A: best rating - E: worst rating)
(4) Judgement on any chance, adequacy and timeliness of external 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, may reach the Issuer Default Rating.




                                                                                                                                                                                              9
Key figures and indicators
(In millions of euro)




  EGION TO THE EUR OP BANK AND S. P. A.                                                                  3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8




PA DA TI TR IM ON IA LI, EC ON OM IC I, OP ER A TIONS A EDIS TR uctures

Loans and advances to customers or                                                                                        7 .2 7 8                     7.640

deterioration in rati                                                                                                          285                           198

Racco lta direct customer                                                                                                 7 .9 6 3                     8.229

Racco lta indirect customer, or co mpres res s ICUR as it seems to me (the king of market value)                        13 .18 6                      11.865

To this financial wealth                                                                                               2 1. 14 9                    20.093

P atrimo equity method (eg clus or useful ercizio ES)                                                                          925                           927

Income before or peratività co rrente to the set of s te rdo                                                                     82                          161

Profit for the ercizio                                                                                                           55                          111

Actual Number of Employees                                                                                                    1.9 5 8                    2.001

Number s bit rtelli bank or cooperatives (*)                                                                                   297                           293



IN D IC A IDIS TR uctures

Loans to customers and / lta recommended by customers                                                                   9 1,4 0 %                      92,84%

Racco lta ges titanium (or as co mpres icurazio ni s) / rec lta indirect                                               5 6 ,7 4 %                      57,08%



IC IN D AND D ITIVITA Idir ', EF F IC IEN ZA OD EPR UTTIVITA'

ROE (Net Ex ercizio / P atrimo nio es net profit or clus Ex ercizio)                                                     5 ,9 0 %                      12,03%

ROE net of no n co mpo nents rico rrenti                                                                                 4 ,7 8 %                      10,77%

COST / INCOME 1 (or blacks or cooperatives / pro twenty or cooperatives)                                               6 6 ,3 8 %                      56,50%

COST / INCOME a net of no n co mpo nents rico rrenti                                                                     6 8 ,11%                      56,50%

COST / INCOME 2 (or blacks or cooperatives value adjustments on loans re / pro twenty or cooperatives)                 7 5 ,9 3 %                      63,32%

COST / INCOME 2 net of co mpo nents n rico no rrenti                                                                    7 7 ,9 1%                      63,32%

Tax rate                                                                                                                3 1,8 4 %                      27,86%

Tax rate no rmalizzato                                                                                                 3 9 ,4 7 %                      37,46%

Net interest if / pro twenty or cooperatives                                                                            5 3 ,17 %                      64,00%

MMIS Co s I ni net / pro twenty or cooperatives                                                                        3 7 ,4 6 %                      32,26%

MMIS Co s I ni net / s and p or tion pes                                                                              10 2 ,5 5 %                     100,26%

Rettich losses on loans / Loans to customers or                                                                          0 ,4 6 %                       0,41%



Idir IS IN D IC C HIOS ITA '

So fferenze / or loans to customers                                                                                           1,5 2 %                   1,22%

Credits deterioration rati / or loans to customers                                                                       3 ,9 2 %                       2,59%

% COVERAGE know fferenze                                                                                                5 1,6 8 %                      52,07%

Co% coverage to the credit deterioration rati                                                                          3 3 ,3 5 %                      38,18%

% COVERAGE credits bo nis                                                                                                0 ,3 4 %                       0,36%



C O F IC IEN TI TR PA IA IM ON LI

P atrimo year period of low and / Activities res trailer bit nder                                                        11,6 4 %                      11,17%

P atrimo nio Surveillance / Activity res trailer bit nder                                                               13 ,4 9 %                      13,01%


(*) Include two French subsidiaries


The indicators have been reclassified using data reported in the "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. The improved economic outlook and 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 assets 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 continued to decline last quarter, but still
remain well above levels in the first half of 2007.

However, the global economy continues to weigh high uncertainty associated with the transient nature of the main factors
that have hitherto sustained and with the braking action exerted by excess production capacity, by the high levels of
unemployment and public debt , from increased propensity to save 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 over individual

5   At its meeting of 16 December 2009, the Federal Reserve reiterated its intention to maintain an expansionary direction for a period of time, said he did not
    believe more must be renewed, they expire in early 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 plans to further reduce the amount of funding offered under the Term Loan Facility Asset-Backed
    Securities.
    At its meeting in early December, the ECB also has further demonstrated its commitment to provide the necessary liquidity to the banking system of the euro,
    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 will be applied to main refinancing auctions over the
    duration of the operation. It also continued the purchase of bonds (covered bonds) issued in the area for a total of about 28 billion of
    60 total expected until July 2010 under 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 an extraordinary meeting in early
    December the Bank of Japan, to help bring down interest rates in the long term, 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%.
6   In the last 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%.
7   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
    EU countries.

12
          institutions is attributable to the European system of financial supervisors (European System of Financial
          Supervisors), formed by the national supervisory authorities and three new committees will cover banks, insurance
          companies and financial markets 7;
                    her side of the ocean the U.S. Administration had 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 Council for financial stability, made up of regulatory
          authorities, including the Fed, which should 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 of 2009 the system of 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, the world's GDP expected to show a modest decline of 0.8% (versus
3% in 2008) thanks to a gradual strengthening of the recovery in the second half of the year, although with different rhythms
of 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 drawn
new strength by the expected slowdown in some countries, the fall in stocks, as well as from improved financial market
conditions, however, accompanying a general increase unemployment and public debt.
                                                                              Inflation, after reaching levels
 Changes in the price of oil (Brent) in 2009                  Graph 1         negative in the summer, came back positive
 85
                                                                              affected in the following months, from
                                                                              First, the effect of exhaustion
 80
                                                                                                                 declin
                                                                              base       offline           al       e          of
 75
                                                                              quotes            energy            that is was
 70                                                                           occurred        in the second half               of
 65                                                                           2008 and, secondly, a rise of
 60                                                                           Prices of some commodities.
 55
                                                                              As         is highlights        by   graph       1,
                                                                              after declining in February 2009
 50
                                                                              under $ 40 a barrel, the price
 45
                                                                              Brent oil                                  rapidly
 40                                                                           slope, stabilized                              last
 35                                                                           quarter in the range from
    G       F     M         A      M       G L A S     O    N     D
                                                                              the 70-80 dollars. The Brent closed
                                                                              the year at $ 77.93 (70.9% in
twelve months), remaining substantially at these levels even in the early weeks of 2010, in the presence of growing doubts
about the consistency of the ongoing economic recovery.

In the second half of the year 's U.S. economy out of recession, but concerns remain about the estate recovery: in the fourth
quarter, GDP grew by

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
Annualized 5.9% (2.2% in the third)                   Changes in the euro-dollar and dollar-yen in 2009                          Chart No.2
                                                             1,56                                                                             102

supported        more by                     recovery
                                                                                                      €/$ $ / Yen (right scale).
stocks that an effective                                     1,52                                                                             100


                         consumption
increase          of     ,                the where
                                                             1,48                                                                             98

contribution     was           rather small compared
the summer months, after nine quarters                       1,44                                                                             96



turned positive, while                    if marginal
                                                             1,40                                                                             94
the
contribution      of       Investment           fixed
under which the component                                    1,36                                                                             92


residential        read more       to          appear
                                                             1,32                                                                             90
weak, but also the exchange
business has improved.                                       1,28                                                                             88


Overall average annual
the U.S. GDP has fallen                            of        1,24
                                                                    G   F   M     A     M      G     L      A     S      O     N     D
                                                                                                                                              86




2.4%, the stronger the contraction
1946.
On the currency front, Figure 2 shows how the initial strengthening of the U.S. dollar than in Europe was followed by a
weakening share to $ 1.51 per euro, with a subsequent recovery that has been growing in the first weeks of 2010. At the end
of December, the U.S. currency traded $ 1.4316 per euro (2.4% compared with $ 1.3978 in late 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).
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% average annual rate compared with 3.8% in 2008). 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 the many supportive measures undertaken by Obama to fight crisis . On the contrary - despite a growing
dynamics of imports in recent months - the negative balance of trade balance was nearly halved 695.9000000000-
380.7000000000 dollars, benefited from significant reduction of indebtedness of 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 in which GDP grew by 1, 1% over the previous period, driven primarily by exports - particularly towards the euro
area, the United States and emerging Asia - also benefit from a positive contribution of domestic demand, for the first time
since 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%) and 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 of 8, 7% by gradual acceleration (10.7% in the fourth quarter), China is now about to
become the second world economy.

14
The activity was mainly driven by fixed investment (30.1% in twelve months), and private consumption (15.5%). Industrial
production grew at an annual average of 11% (12.9% in 2008), showed a strong recovery in the last 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 fall in exports (-16%) more pronounced than that of 'imports (-11.2%), but foreign exchange reserves are,
however, rose to 2,400 billion 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 has depreciated slightly against the euro (2.4%), while inflation, average
annual negative (-0.7%), returned to levels positive the last two months (1.9% in December).
To counter the risk of speculative excesses in real estate and limit exposure to that sector in the balance sheets of banks, the
Chinese authorities have lifted a number of tax incentives recently introduced. Moreover, to curb the growth in lending, the
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 increasing the drainage of liquidity from the markets through open market
operations.

Even for the economies of the emerging countries the last months of the year were marked by a 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. They have benefited in particular from 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, Russia's economy appears 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. During 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
                      GROSS DOMESTIC
(Percentages)         PRODUCT                      CONSUMER PRICES                 UNEMPLOYMENT                 SECTOR DEFICIT

                                                        (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
                                                                                                                                                                                   0-0,25




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
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       nd        nd       nd          nd                       5,31              5,31
INDIA                  7,4     6,5      6,0      8,4         3,6           5,9    9,1      10,7       nd        nd       nd          nd                       6,50              4,75

(1) Weather
                                                                                                                                   Source: Prometeia and official statistics
In Europe, unlike the U.S. economic recovery 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) affected poor performance of the German economy became
stagnant after two quarters of growth, and other

                                                                                                                                                                                  15
in most countries except for France (0.6%). Overall average annual real GDP fell by 4%.
The support for the work came to a great extent on 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.
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% at the end 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 the last two months up to December and 0.9% to 1% January 2010 (0.3% 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 since the 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, the ECB has continued its work 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) , down from 2.50% as of end 2008 to a record low of 1%. If the prospects of economic improvement 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 and the departure expectations of more sustained recovery.
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
countries participating in the euro 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, decisive
and coordinated actions 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.

To Italy 's 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% ) mainly
due to the precarious environment crossed by the industry.
Average annual 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, ending 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 8, 5% (over 2 million
people), from 7% a year earlier (6.7% on


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.

16
average figure of 2008) 10. The difficulties in the labor market have been partially contained by the 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 during the year, stabilized 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, Italy, while reflecting the European trend, remained constant at levels of higher inflation, record in July by
the only modest decrease (-0.1%). The recovery of the last two months has led the Harmonised Index of Consumer Prices 1,
1% in December (0.9% as the European).
Average annual 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 by ISTAT for 2009 confirm a general government net
debt ratio to GDP and impact of public debt to GDP in substantial increase, compared to 5.3% (2 , 7% in 2008) and to
115.8% (105.7%), reflecting primarily the fall in economic activity.
In December the EU Council has also started against Italy and then the excessive deficit procedure for requesting our country
to bring its deficit below the limit of 3% of GDP by 2012.

The regional context
The crisis that has hit the manufacturing sector in Piedmont in late 2008, breaking the streak of nearly three years began in
late 2005, has assumed the characteristics of a real recession in the local production system in the first quarter of 2009, then
extends its effects also to the II and III quarter, although a slight attenuation compared to the first months of the year. Data on
the development of the fourth quarter did not appear to remain positive, although the indicators allow a glimpse of how the
most critical phase is now behind us.
The change in total annual industrial output showed a negative Piedmont, far better result than that recorded nationally. At
provincial level, the negative changes recorded in particular in the province of Cuneo, however, are significantly lower than
the regional average.
The industrial production Lombard showed better than expected third quarter, with positive economic growth rates in almost
all major economies, strengthening the position on a growing trend by requiring an upward revision of estimates for 2010.
Milan marks a smaller decrease than the regional average, though in an economic situation that is negative in the third
quarter of 2009, a decrease in production levels over the previous year.




Financial markets



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.


                                                                                                                                                                                  17
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 is instead seen an upward shift, more
pronounced for the U.S., the prospect of a recovery in production, but
also as a reflection of a gradual normalization of financial markets,
which has eased the 'risk aversion of international investors also on
the basis of expectations of higher returns for both the sharp increase
in the supply of government securities, and for a possible resurgence
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 starting the year marked by heavy losses, the stock markets of
major
industrial economies have touched March 9, 2009 a minimum point, followed by a rapid and consistent rise which was
followed by a substantial stabilization of prices last quarter, mainly due to doubts about the consistency of the actual recovery
and the expected reduction current earnings of listed companies.
In the last fraction of a year 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.




18
                                                                                                     5
                     Performance of the main short-term rates and long-term in 2009 Graph
        5,25
        5,00

        4,75

        4,50

        4,25
        4,00

        3,75

        3,50

        3,25

        3,00
        2,75                                                                                 U.S. Treasury 10 years

        2,50                                                                                 Federal funds rate

        2,25                                                                                 BTP 10 years

        2,00                                                                                 Euribor 3 months
                                                                                             Bund 10 years
        1,75
                                                                                             ECB main refinancing rate
        1,50
                                                                                             U.S. Libor 3 months
        1,25

        1,00
        0,75

        0,50

        0,25

        0,00
               G          F             M                A       M       G       L       A               S               O             N        D



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
                                                                                                  Nikkei 225
                                                                                                                                                     17.000


         7.000                                                                                    Dow Jones Industrial                               16.000


                                                                                                  Italy FTSE All-Share (right scale)                 15.000


         6.000                                                                                                                                       14.000


                                                                                                                                                     13.000


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




11 In particular, Greece, Ireland, Spain and Portugal.


                                                                                                                                                              19
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, 22.3% for the
CAC 40 in Paris, 22.1% for the FTSE 100 in London, 20.3% for the Nikkei 225 in Tokyo, 19.2% for the FTSE All Italy -
Share of Milan, 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 index FTSE Italy Mib
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 dell'Idem,
with a daily average of 168 000 standard contracts, the European leader for contracts traded on markets telematics for trade
in 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 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 since 2006. For the sector of mutual funds, 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 law funds Italian (-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


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, 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.
Indicator 14 - 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.


20
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 amount 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
During the year the Italian banking system was characterized by a dynamic always supported, albeit at a slower rate than in
2008, customer deposits, compared to a gradual slowdown in lending, 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 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 funding the purchase
of dwellings (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
firms 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).




16 Bank of Italy, Supplement to the Statistical Bulletin "Money and Banks", March 2010.
17 are excluded from the calculation is the suffering that the uses on government.


                                                                                                                           21
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 end 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 based on the purchase of qualifying holdings in banks, insurance
companies and investment firms . Under the new provision to Article 19 of the Banking Act has been partially reformulated
where indicated in the first 5% of the voting rights limit beyond which required the approval of the Bank of Italy. In
particular:
     •    must be submitted for prior authorization 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
           significant influence 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.




18
     Fonte: ABI Monthly Outlook, February 2010.

22
The activities of the European Regional Bank in 2009
As part of the extensive state of general economic crisis, the Bank has adhered to various agreements and conventions with
the guarantee institutions, public institutions and organizations aimed at facilitating access to finance medium-and long-term
basis by commercial undertakings, tourism and services, and industry. In this context, falls between the various initiatives
taken, the City of the Notice ABI-MEF membership for the suspension of debts of small and medium enterprises.
The Bank has also signed up to initiatives to improve access to credit for poor families, among which we highlight in
particular, the agreements between the squares of Cuneo, Pavia e Tortona in collaboration with the foundations, and the
Caritas other institutions.
At the local level, the Bank has also been reflected in the proposals initiated by some prefectures in relation to the recognition
of the crisis of the local economy.

As part of the progressive integration activities and homogenization of commercial and optimization of synergies of the
Group, has operated on the basis of various agreements of cooperation with the Group's product factories specialized in
providing products and services to offer highly competitive to customers.

On coordination of the Finance of the Parent, there has been progress on two initiatives (to support the same parent
company), aimed at funding the market (to issue covered bonds) and / or finance management accounts held with the Bank '
Italy (procedure ABAC), bringing its assets as collateral credit quality or otherwise meet the eligibility criteria defined under
the Financial Regulator.

During the second half of the year in implementing the new legislative framework regarding the overdraft charges, has been
radically revised the system of commissions and financing charges on the accounts of customers, subject to specific client
communications under legislation.

In relation also to the new system governed by the Bank of Italy of ADR that may arise with customers concerning
operations and banking and financial services, called the "Referee banks and financial institutions, the Bank has formalized
its participation in the Mediator of the Association through banks and financial institutions.

At the end of the year, the Bank has been involved since the Draft Spatial optimization of the network banks of the Group.
This project provides, through intra-group transfer of branches and mini-branch, that each Bank Network specializes in the
geographical area corresponding to the area's historic roots, with an almost exclusively to ensure greater market share and
brand visibility.
In particular, the European Regional Bank will be the Reference Bank in Piedmont.
In September 2009, the Bank and the Parent Company, in compliance with the federal model adopted, have approved the
project as a whole, which took effect from January 25, 2010.


Commercial activity
In adherence to its strategy, has continued in 2009, the trading action in accordance with the objectives of development
planned at the beginning of the year in agreement with the parent company, although tensions have arisen in the autumn of
2008 have significantly altered the consumption behavior of customers and reference models.

The Swiss Retail Market
Even in 2009 there has been a very significant growth of Direct is powered by both short-term component from the medium
term.
                                                                                                                               23
There has been a reduction of investments in repurchase agreements, due to leveling out of rates, for the benefit of demand
deposits and the collection in the medium term that has been supported mainly by emissions of Fixed Rate Bonds.
During the year, were also placed subordinated bonds of UBI Banca and some issues of bonds structured third-party issuers,
all types of bids were received with great interest from customers.

The fund of the Bank Insurance, life insurance, revealed a brilliant performance helped by the return of the interest on the
part of investors towards the products of the Branch I that, in the serenity offered by the separate management and thanks to a
guaranteed minimum return, it was considered of interest in this situation of market rates.
It has also consolidated the distribution of life insurance products, offered with various formulas designed to meet the various
needs of our customers risk hedging. In this segment the offer has been extended also to the small business segment with
proposals to businesses and entrepreneurs, while the new year will be offered a package of health insurance.

In 2009, it has also shown a return to investment in asset management with positive results in terms of net inflows. Further
impetus was given to the system of saving plans, which are proving to be a practical solution to gradually move closer to the
markets most exposed to the risk of price fluctuation.

The placement of financial products and management in general has been put in place almost entirely within the system of
advice, which is the most tutelante for the customer and allows you to provide, in accordance with the provisions of the
guidelines MiFID, appropriate recommendations based on the risk profile of the customer.

During the year have been put in place various initiatives designed to promote the establishment of relations with new
customers. Regarding the Small Business, at year end, has started the new structure dedicated to the development which
started its activities fully with the beginning of 2010. Regarding the private sector, among other initiatives, we note the
launch of an initiative called the Christmas period PlayUbi, targeted at a young.

È continued supply, to all customer segments, products and Here Here UBI UBI affairs in a more evolved in terms of both
functionality and safety.
È continued, with regard to the currency, the placement of Credit Cards Libra.

The fund of personal loans, disbursed through Banca 24-7, recorded volumes in line with the market dynamics that have been
affected by the less favorable economic situation.

They did however record growth is very attractive loans to private customers, supported by numerous requests for
assignment, and those in small business customers. The general economic situation that has seen decreases, sometimes
significantly, the sales of many corporate customers, has caused a slowdown of growth in short-term loans.
In this context we have undertaken major initiatives to support local families in need through easy access to credit.

Finally, it is important to remember the activity successfully, by mutual agreement between the Credit Department, the
Directorate Retail Market and the land areas, to improve key indicators of credit quality.

International Network: branch Nice and Menton
The year 2009 has further strengthened the Bank's vocation to Italian customers, intervening to support the financing needs in the
housing market.




24
The exercise ends positively, enabling you to support key commitments such as opening the door to Cannes in 2010,
followed by another in Antibes in 2011, and the replacement of the information system in use.

As part of an ongoing professional development of employees, continued training activities that, during the first half of 2009,
has focused on the themes dell'Antiriciclaggio and Law 231/2001 on administrative responsibility of the company.

The Corporate Market Direction
In 2009 the business was conducted through the action of Corporate Banking Unit, already active in the area with the same
features and mapping in the previous year.

Within each CBU has acted on "portfolio" of clients, aiming in particular at making the individual more and more
homogeneous portfolios, monitoring and refining the segmentation. The result has encouraged the implementation of
strategies and initiatives focused on individual segments, improving customer relations.

The trade action is particularly focused on Small and Medium Enterprises, which has devoted priority attention to the
network, giving priority to support the business and commercial area.

In the daily management of relations was systematically accompanied the bringing of products and activities of "non-banking
sectors, promotion of meetings and contacts with specialists in product companies, with the conclusion in many cases of
practical initiatives to the satisfaction of specific needs and, in others, with a promotion, however, welcome more specialized
services available to customers.

The Swiss Private Banking Market
The business of the private market in 2009 was influenced by the global financial markets and money market rates which are
set to extremely low levels. The high negativity of all assets at risk in the first quarter of the year, combined with extremely
high volatility, has produced a sharp decline in customer risk appetite resulting in extremely conservative investment choices
and directed towards instruments characterized by high of liquidity.

Also in 2009 the private market has achieved a positive performance in direct deposits, particularly in deposits. Good sealing
of raising medium-term and, because of the strong decline in rates occurred, there was a decided drop in investments in
repurchase transactions.

Positive results obtained in the placement of subordinated bonds of UBI Banca and some types of structured bonds issued by
leading Italian and foreign financial institutions, such issues have met with positive interest from customers.

Definitely good results obtained in the placement of the Bank Insurance, Life Insurance Branch in particular where the
investment security and the guaranteed minimum return, he met a great interest in the customers in view of the current rate
levels.

In the asset management sector, the result has been conditioned to be accentuated negativity and volatility of financial
markets in the first quarter of the year, highlighted by customers from the need to hold only very simple and transparent
products, this requirement has led to major divestments Hedge Fund by penalizing the entire sector.



                                                                                                                             25
Even in the private market activity of placement of securities brokerage and financial products has been in full compliance
with MiFID and in the presence of the consulting contract that, in addition to protecting the customers, allows you to adjust
the supply and advice in full compliance with the risk profile of each customer.
Also, thanks to the support of the parent company has paid particular attention to the identification of highly distinctive able
to adequately support the activities of Bankers in providing quality service to existing customers by increasing loyalty and
acquire new ones.

In this direction have been launched new services such as skilled and loyalty AWA (Active Wealth Management), Family
Business (Protection of Shareholders and Succession Planning) and Real Estate Advisory.


Investments
Investments in Group Companies
The BRE has joined the recapitalization totaling euro 75 million in the Banco di San Giorgio SpA, the capital of which holds
a majority stake.
Following completion of the acquisition of the business represented by 13 branches of Intesa Sanpaolo, the extraordinary
general meeting of Banco di San Giorgio on 13.3.2009 has approved two separate operations to increase the share capital, the
first of which reserved reference to the shareholders of UBI Banca and Banca Regionale Europea and the second reserved for
minority shareholders with any action by the European Regional Bank only in the presence of units of shares not subscribed
by minority shareholders. Following the operation, the European Regional Bank has subscribed and paid no 7,854,449 new
shares in relation to the first increase in March 2009 and No. 586 122 into the second increase in September 2009, at an issue
price per unit equal to 5.38 euro, of which euro 1.50 and euro as a nominal 3.88 a share premium, with a total outlay of €
45,410. 271.98.
As a result of the above, the participation rate of BRE on 31 December 2009, the share of 57.33% and 35.451% of the UBI
Banca.

In 2009, the subsidiary UBI Sistemi e Servizi ScpA implemented a capital increase of EUR 26,000,000 to EUR 35,136,400
incorporation of UBI Centrosystem finalized, carried out with effect from 1 July 2009. As a result of this transaction, the
shareholding of BRE was reduced from 4% to 2.96%.

Also within the Group, Banca Regionale Europea SpA holds a 95% stake in the Ge.Se.Ri. SpA., In voluntary liquidation.


Other investments
Please note the sale, dated June 9, the entire stake held in the capital of Cedacri SpA of No 908 shares at a price of EUR
9,988,000, with proceeds of the dividend for 2008 of EUR 348,672. The gross gain derived by BRE in the income statement
amounted to EUR 8.9 million, with a tour of the relevant asset revaluation reserve. It should be noted in this regard that the
decision of the sale of "historic" profit-sharing has always been held by BRE, is motivated by the observed disappearance of
the strategic nature of participation.

There were also the following additional changes in 2009:
        GEC - Management exactions affiliated SpA (CN): Accession to the capital increase by EUR 8,910,000 to EUR
         10,125,000 by subscribing to No 21,600 new shares with a total outlay of € 87,480, the fee remains unchanged in
         7.2%;
    •    GIAROLA Leader Srl (AL): accession, in view of the development of relations on the territory, the capital
         increase from € 70,000 to € 115,500 with an outlay



26
          total euro 30,000 and increased its share from 21.43% to 38.96%;
          GAL Alto Oltrepò Srl (PV): acquisition, in the aim of relations on the territory of a stake in the GAL Alto Oltrepò
          Srl, based in Varzi (PV), through membership in the capital increase with subscription No 2 units, for a total
          outlay of € 1,040;
      •   Science and Technology Park and Telecommunications in Valle Scrivia SpA (AL): Following the capital
          increase implemented by the subsidiary from euro 2.1 million to 6.9 million euro, has made a recovery in value of
          € 300,000, in order to realign the balance sheet value of the current value equity pro-rata basis;
      •   Aedes SpA as a result of the restructuring plan of the Company, the BRE have been assigned No. 1,746,900 shares
          resulting from the conversion of credit in the capital, for a total of EUR 356,192.91 to 31/12/2009.


Among other holdings, we note that the BRE is in the capital of the Bank of Italy with a share of 0.2530% or No 759 shares -
of which 150 already held from incorporating Bank Cassa di Risparmio di Tortona - par value of EUR 0.52, for a book value
of EUR 1.8 million, calculated as follows:

BRE               No 609 quote        Val. budget unit €                    533 Val. total budget €                  324.775
ex CRT            No 150 quote                   Val. budget of € 9,993 per unit                Val. total budget € 1,499,016
Total BRE         No 759 quote                   Val. budget of € 2,403 per unit                Val. total budget € 1,823,791

The value of the shares BRE has always been maintained at the initial cost, while the former Banca Cassa di Risparmio di
Tortona has proceeded to the previous revaluation of the investment.

                                                            *****




The following table shows the performance of the subsidiary Banco di San Giorgio SpA

Premise
The financial statements incorporate the effects of the acquisition of 13 branches from Intesa Sanpaolo, while the situation in
post comparison of 31 December 2008, not taken into account.




                                                                                                                            27
Reclassified financial statements at December 31, 2009

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

     10.                 Cash and cash equivalents                                                                                                                   16.818                          11.529                       5.289                              45,9

     20.                 Financial assets held for trading                                                                                                           15.701                          24.455                      (8.754)                            (35,8)

     40.                 Financial assets available for sale                                                                                                                   296                          296                          -                           -

     60.                 Loans to banks                                                                                                                             138.605                        204.237                     (65.632)                             (32,1)

     70.                 Loans to customers                                                                                                                    2.320.407                         2.033.807                     286.600                               14,1

     80.                 Hedging derivatives                                                                                                                           6.112                              5.508                     604                              11,0

     90.                 Fair value of financial assets in hedged                                                                                                      6.490                              8.898                  (2.408)                            (27,1)

     100.                Investments                                                                                                                                           886                          886                          -                           -

     110.                Tangible assets                                                                                                                             13.239                          12.369                         870                                  7,0

     120.                Intangible assets                                                                                                                           74.347                          19.876                      54.471                             274,1

                             of which: goodwill                                                                                                                      60.382                          19.876                      40.506                             203,8

     130.                Tax assets                                                                                                                                    8.330                              4.036                   4.294                             106,4

     150.                Other activities                                                                                                                            12.485                          13.440                       (955)                              (7,1)

                         Total assets                                                                                                                          2.613.716                         2.339.339                     274.377                               11,7




                                                                                                                                                                                                                      Change                         % Change
                                            LIABILITIES AND SHAREHOLDERS 'EQUITY                                                                             31/12/2009                       31/12/2008
                                                                                                                                                                                                                      Annual                          Annual

     10.                 Due to banks                                                                                                                               183.812                        256.183                     (72.371)                             (28,2)

     20.                 Due to customers                                                                                                                      1.015.005                           751.509                     263.496                               35,1

     30.                 Securities issued                                                                                                                     1.150.844                         1.129.484                       21.360                                  1,9

  40.+ 50.               Financial liabilities held for trading and measured at fair value                                                                           14.516                          19.756                      (5.240)                            (26,5)

     60.                 Hedging derivatives                                                                                                                         13.173                          13.246                         (73)                             (0,6)

     80.                 Tax liabilities                                                                                                                               5.264                              6.517                  (1.253)                            (19,2)

     100.                Other liabilities                                                                                                                           42.098                          35.684                       6.414                              18,0

     110.                Provision for employee severance                                                                                                              4.997                              2.278                   2.719                             119,4

     120.                Provisions for risks and charges:                                                                                                             1.693                              1.550                     143                                  9,2

                                  b) other funds                                                                                                                       1.693                              1.550                     143                                  9,2

     130.                Revaluation reserves                                                                                                                          (182)                               (72)                   (110)                             152,8

       16 0. 170. 18 0   Capital, share premium and reserves                                                                                                        180.563                        103.885                       76.678                              73,8

     200.                Operating profit                                                                                                                              1.934                         19.319                    (17.385)                             (90,0)

                         Total liabilities and net worth                                                                                                       2.613.716                         2.339.339                     274.377                               11,7




                                                                                                                                                                                                                       Change                          Go ria uncle%
                                                            VOC ID AND C ON TO EC ON OM IC O                                                  3 1 / 12 / 2 0 0 9                     3 1 / 12 / 2 0 0 8
                                                                                                                                                                                                                       to nnua                            to nnua



           10 .- 2 0 .                 Net interest if                                                                                                             42.871                                 46.771                        (3.900)                                 (8,3)


              70.                      Dividends and Pro Vent s Imil                                                                                                       -                                  10                              (10)                                     -

           40.-50.                     MMIS Co s I ni net                                                                                                          20.773                                 16.802                             3.971                               23,6


      8 0. 9 0. 10 0. 110.             Res ultato net dell'attivita'di ziazio deny them coverage and co                                                             1.175                                  1.550                             (375)                             (24,2)


             19 0 .                    Or other blacks / pro ges tio it winds                                                                                       1.494                                  1.602                             (108)                              (6,7)


                                       P ro pe ra tiv ve nts or the                                                                                         6 6 .3 13                              6 6 .7 3 5                          (4 2 2 )                                (0 ,6 )

            15 0 a .                   Expenditure and the pers nal or                                                                                        (22.541)                               (17.976)                           (4.565)                                  25,4

            15 0 b .                   S pes and other adminis trative                                                                                        (21.951)                               (14.720)                           (7.231)                                  49,1


           17 0. 18 0.                 Re net value adjustments on activities' tangible and intangible                                                         (2.079)                                    (1.056)                       (1.023)                                  96,9


                                       One or re pe ra tiv i                                                                                               (4 6 .5 7 1)                          (3 3 .7 5 2 )                      (12 .8 19 )                                3 8 ,0

                                       R is ulta tio ges to th e pe ra tiv it or to                                                                         19 .7 4 2                              3 2 .9 8 3                       (13 .2 4 1)                            (4 0 ,1)

            13 0 a .                   Write-backs/impairment and value re net improvement of credit deterioration                                            (14.804)                                    (5.577)                       (9.227)                                    ns.


        13 0 b. c. d.                  Adjustments / recoveries and net value re dete rioration of other activities '/ s pas CALLS'                                  (43)                                    (27)                             (16)                               59,4


             16 0 .                    Next CES Net ndi fo ris whom and for blacks or                                                                               (139)                                  (359)                              220                              (61,3)


        2 10. 2 4 0.                   Profit / loss from fair trade to it I s INVES departments and participation ni                                                (25)                                         -                           (25)                                     -


                                       Profit / pe or pe rdita th e ra tiv ita 'co rre nt to the rdo                                  taxes                    4 .7 3 1                            2 7 .0 2 0                      (2 2 .2 8 9 )                          (8 2 ,5 )

             260.                      Impo s te es s ul income ercizio Ordinance perativita 'co rrente                                                        (2.754)                                    (7.440)                            4.686                             (63,0)

                                       Charges INTEGRATION                                                                                                           (43)                                  (261)                              218                              (83,7)

                                       Of which: s pes and the pers nal or                                                                                         (39)                                    (28)                              (11)                              39,3


                                                  s and other pes adm inis trative                                                                                    -                                   (335)                              335                                   -


                                                  Re net value adjustments on assets and im m aterial m aterials                                                    (21)                                   (20)                               (1)                               5,8

                                                  taxes                                                                                                              18                                   122                            (104)                             (85,6)

             290.                      Profit and if rc izio                                                                                                   1.9 3 4                               19 .3 19                      (17 .3 8 5 )                           (9 0 ,0 )




In December 2009, loans to customers amounted to 2.3204 billion euro, an increase of 14.1% compared to the size of the end
of 2008.


28
Considering only performing loans, loans registered an increase of 12.6%, representing about 72.6% of loans, current
accounts go from 301 to 335 million euro (11.3%).
As of December 31, 2009 volumes of subsidiaries acquired amounted to 150.9 million euro, of which 116.50 for medium and
long term.
In the absence of such acquisition would be the net loans increased by 6.7%.

Net impaired loans were the Bank of 150.1 million euro, in particular:
     •     the non-performing loans, amounting to 34.6 million euro, increased by 42.1% compared with the end of last year,
           and their relationship to the overall lending is 1, 5%. The level of coverage and 'by 37.3%.
     •     problem loans go 20.7000000-45.1000000 Euros and have a coverage level of 13.4%;
     •     the due exposure amounted to 56.8 million euro: the 2009 figure includes € 42.9 million overdraft facility between
           90 and 180 days for exposures secured by real estate reclassified between impaired as required by supervision for
           banks that carry out the supervisory information in accordance with the standard method;
     •     during the period have been renovated two credit positions for a total of 13.6 million euro. In particular, the main
           position, amounting to 13.2 million euro, and 'was classified in the industry as a member of the group with which
           the banking class has entered into a restructuring agreement. These, however, the company responsible for
           mortgage, in regular depreciation, and taxes imposed on residential properties, divided into more than 50 lots for
           sale and it is expected, therefore,
           further reduction of 'exposure.
The dubious position of subsidiaries acquired as part of Byron amounted to EUR 4.9 million, in defense of them and
'analytical been rectified by 0.6 million euro.

The allocation of general reserves of the Bank (EUR 11.5 million) shows a level of coverage of performing loans at 0.5%, a
slight increase compared to December 31, 2008 and includes about 0.7 million euro relating to loans made by subsidiaries
acquired.

Overall value adjustments on the branch ex-Intesa Sanpaolo amounted to EUR 1.3 million, an increase of approximately
41.3% compared to the back.

The increase is a result of intangible assets following the acquisition of branches from Banca Intesa to 40.5 million euro and
activities defined term, referring to the same transaction, which represent the value assigned to core deposits and Indirect
funding to 14.7 million, with 15 years service life.

In December 2009, the consistency of the direct deposits amounted to 2.1658 billion euro, an increase of 15.1% compared to
December 31, 2008.
Customer deposits amounted to € 1,015 million, increased by 35.1% but this increase is attributable to the acquisition of
branches from ISPs, particularly interested in having the forms that go to 630.9000000 to 963.5000000 euro.

At the time of the reference collection in the branches to be acquired amounted to approximately 309.8 million euro, of
which 303.6 consists of technical forms to view.

The repurchase agreements decreased and stood at 49.2 million euro (118.6 million at year-end 2008), this decrease was due
to fewer requests for subscription by ordinary customer-orientated forms of investment more profitable.
The collection in repurchase agreements of subsidiaries acquired amounted to EUR 5.7 million.

The outstanding securities (1,150,800,000 euro) recorded an increase of approximately 21 million euro, mainly due to the
subscriptions of bonds by the acquisition of new customers (28.5 million euro).
Please note that this item is included in bonds for 640 million euro,
fully subscribed by the parent company and designed to improve balance

     29
structural, as well as' subordinated loans of 40 million, of which EUR 20 million issued during the year and aimed to
strengthen the capital for the acquisition of branches.

Net of intercompany direct deposits showed a growth of 26.8%.

At 31 December 2009, the indirect funding from private customers, market values, was equal to 1.4384 billion euro; the
increase is attributable largely to the indirect subsidiaries acquired by the ISP
Indirect deposits at 31 December 2009 on the branches from Intesa acquired amounted to 566.5 million euro, of which 308.8
consists of assets under administration.

On the economic front, the interest margin at December 31, 2009, amounted to 42.9 million euro the previous year without
the contribution of the subsidiaries acquired in March 2009, was of 46.8 million euro (- 8.3%).
The contraction was determined as a result of generalized reduction in spreads on interest rates despite the increase in
volumes traded.

Net commissions are bedded at 20.8 million euro, an increase of 23.6% over the same period of 2008.

As a result of these dynamics, operating income totaled 66.3 million euro, in line with the previous year, which, please note
does not include the contribution of the acquired branches from Intesa Sanpaolo.

The "staff costs" amounted to EUR 22.5 million, versus EUR 18 million in December 2008.
The 'increase in staff resources of 98, following the acquisition of the business, resulted in higher charges to income totaling
€ 5.8 million, partially mitigated by lower provisions for bonuses and incentive systems, as well as' the issue debt for leave
not taken.

The "Other administrative expenses totaled EUR 22 million.
The significant increase compared to the December 31, 2008, then stood at 14.7 million euro, is due to the costs incurred for
the acquisition of branches from Intesa Sanpaolo, for a total of EUR 2.1 million (non-recurring) as well as' the increase in
service charges to approximately 2.5 million euro, due to the greater volume of business, the operation resulted in the
acquisition, in addition to the above-mentioned increased costs increased administrative costs of operating the doors .

The adjustments to intangible assets totaled EUR 735 thousand and are related to the "intangibles" that had not been
determined when the value of accounting for prior acquisition by Intesa branches (Core Deposit and indirect funding).

Overall, operating expenses totaled 46.6 million euro, against 33.8 million in December 2008.
The cost / income ratio, calculated by dividing operating costs to operating income, rose from 50.6% to 70.2%, excluding
non-recurring items the same was as high as 67.1%.

As a result of these trends, the operating margin stood at 19.7 million euro, compared to 33 in December 2008.

The Net adjustments for impairment of loans stood at 14.8 million euro. The significant increase over the same period in
2008 due to higher depreciation on non-performing loans resulting from the deterioration in credit quality: in particular have
been carried out adjustments for doubtful debts of 11.9 million euro, of which 0.6 credit ex -Intesa, collective impairment
losses on performing loans to 2.9 million euro, of which 0.7 credit ex-Intesa.


30
Taxes totaled EUR 2.8 million, his voice has benefited from the positive impacts resulting from the application of tax rules
for a total of 0.8 million euro.

Net profit for the period totaled EUR 1.9 million.
Excluding non-recurring transactions, the result would have been 2.6 million euro.




                                                                                                                               31
The activity of pledge
The lending against security, which focuses exclusively on precious, was conducted at the doors of Milan, Bergamo, Brescia,
Como, Crema, Cremona, Monza, Pavia, Varese and Tortona.
In 2009, 63,475 new operations have been carried out, including switching and renewals, for a total of 48,547 thousand euro
in the stock outstanding at year end amounted to no 34,601 positions for a total of 26,560 thousand euro, a sharp increase
over the previous year partly due to the critical situation of the general market, while the average grant of loans is slightly
higher.

Please note that this type of loan guarantees immediate liquidity against the pledge of valuables and is a means to cope with
temporary financial needs, especially for families and for the most vulnerable population, but also for small traders and
entrepreneurs.

Below are the summary data:

(In thousands of euro)
                               YEAR 2009                                                                               YEAR 2008

MOV Pawn                                                                                  MOV Pawn

                                                     N. BILLS                 AMOUNT                                               N. BILLS    AMOUNT

STOCKS TO 31/12/2008                                 31.836                  23.271,0     STOCKS AT 31/12/2007                     29.895     19.772,1

Loans                                                                                     Loans
                granted                              21.971                  16.850,0                     granted                  22.046     16.520,3
                renewed                              41.504                  31.697,4                     renewed                  36.948     25.928,0
                redeemed                             17.529                  12.482,4                     redeemed                 18.770     12.341,0
                sold                                   1.677                  1.078,7                     sold                      1.335       680,4
STOCKS AT 31/12/2009                                 34.601                  26.560,0     STOCKS TO 31/12/2008                     31.836     23.271,0


Average daily transactions                                                          358   Average daily transactions                              347
Average grant paid                                                              0,767     Average grant paid                                    0,749
Average grant stock                                                             0,768     Average grant stock                                   0,731


AUCTIONS                                                                                  AUCTIONS

ordinary                                                                             21   ordinary                                                 18
Special                                                                              10   Special                                                  10
Total                                                                                31   Total                                                    28

Pawn sold                                                                                 Pawn sold

No pledges                                                                      1.680     No pledges                                            1.379
grant                                                                         1.083,0     grant                                                 754,8
Auction proceeds                                                              2.985,6     Auction proceeds                                     2.152,6
surpassed (*)                                                                 1.412,7     surpassed (*)                                         865,2



(*) Gross revenue less the loan amount, interest, fixed charges and auction fees.


On December 31, 2009 the activity of lien held at the door of Tortona was abandoned with the simultaneous migration of
active policies in the pledge of Pavia.

Subsequently, with effect from January 25, 2010, in the context of the Draft Spatial optimization of the network banks of the
Group, lending against security has been completely transferred to the Banca Popolare Commercio e Industria.




32
Activities of Public Treasury
The following table shows the abundance of entities for which the Bank has played in 2009 the total assets of the Treasury
and / or boxes and the changes that occurred during the year as a result of events or extinctions / amalgamations of Public

                              MANAGED ENTITIES                               31/12/2009              To 31/12/2008
   UNIVERSITIES AND BUSINESS UNIVERSITY                                                 4                       4
   University Departments                                                              76                      72
   State schools                                                                       76                      81
   HOSPITAL TRUSTS                                                                      8                       7
   Local Health                                                                         4                       4
   IST. OF HOSPITAL AND HEALTH CARE. Scient.                                            1                       1
   PROVINCIAL GOVERNMENT                                                                                        1
   MUNICIPALITIES                                                                     207                      205
   MOUNTAIN COMMUNITIES                                                                 8                       8
   UNIONS OF COMMON                                                                     6                       7
   Associations of municipalities                                                       7                       9
   Other consortium                                                                    75                      76
   Chamber of Commerce                                                                  2                       2
   PUBLIC ECONOMIC                                                                      3                       3
   OTHER AGENCIES                                                                     119                      123
   TOTAL                                                                              596                      603

The number of relations and the importance of such (universities, hospitals and local health authorities, provincial and
municipal governments, companies of Human Services) is clearly a significant attention in the past year also paid to the
Treasury sector entities, either because of the role that The Bank has always held the territory for settlement, and given the
volume of activity caused by themselves.

Please note, the new relationship between acquired the Hospital San Paolo in Milan and the start-stop operating cash flow at
the Hospitals of Acqui Terme, Novi Ligure Ovada and service within the ASL Tortona-Alessandria, and at Bassini Hospital
Cinisello Balsamo falling within the service in place with the agency Institutes Clinical Specialization.

The cash flows of entry to 31.12.2009 have passed, overall, from 7,864,000 to 8,155,400 thousand euro (291,400 thousand
euro compared to the previous year), broken down by geographical macro areas:
    a)   Cuneo: from 2,620,900 to 2,534,300 thousand (€ -86,600 thousand euro);
    b)   Milan: from 1,734,400 to 2,331,700 thousand euro (597,300 thousand euro);
    c)   Pavia: from 2,322,400 to 1,887,600 thousand (EUR -434 800 thousand euro);
    d)   Tortona: from 1,186,300 to 1,401,800 thousand euro (215,500 thousand euro).

The decrease in total Pavia is basically attributable to the new procedure, introduced by the Lombardy region, for the
payment of suppliers of goods and services of the Public Health Sector, such payments have been entrusted to the company
Finlombarda SpA, with consequent reduction of the ledger for use of advances, that are activated to deal with these payments.
The decline is attributable Cuneo detected on the expiration of treasury services.




                                                                                                                           33
Finally, we note that in the context of the Tuning Project Place, the management of the Treasury and / or cash held for the
benefit of entities located in California (about 200) has been transferred to other network banks of the Group.


Territorial Development and Human Resources
At 31 December 2009, the Bank is the country with 297 branches, four more than in December 2008 following the opening
of the Agency at the San Paolo Hospital in Milan, the Agency of Acqui Terme, Turin Moncalieri and 7 .

In implementing the Project of Spatial Tuning in to the time from 25/1/2010 branch network consists of 227 agencies, of
which 223 located in Piedmont, Lombardy 1 in, 1 in Valle d'Aosta, in addition to the two French subsidiaries of Nice and
Menton.

In terms of HR 2009 was marked by the consolidation of the new distribution model and, in particular in the second half of
the year, from preparation to the operation of "local optimization" which ended with the switch branches of 25/1/2010.

In terms of quantity, the actual organic (ie, calculated taking into account the postings to and from other group companies) to
December 31, 2009 was set at 1,958 units, a decrease of 43 units compared to December 31, 2008, compared an original
forecast of 1,945 units of the Business Plan, then fixed in 1934 and then revised during the year in 1927 units.

The final consistency is the result of 19 staff recruitment, including 15 in Italy and 4 for the French Network, 35 deaths,
including 34 in Italy and 1 in the French Network, 37 and 9 additional detachments completed at other group companies and
an additional gap in our Bank (year-end postings are broadly equal to 62 resources to other Group companies, compared with
eight offices in our company resources from other companies). Recruitment focused on 10 permanent positions primarily for
opening new branches and 9 temporary, while among the deaths there were 2 for 6 for retirement and join the "Solidarity
Fund".


Institutional communication
The communication from the European Regional Bank, coordinated with that of the parent company's objective has been to
highlight the values of efficiency and strong ties with the territory. In particular, during the crisis in international financial
markets, the bank has stressed its continuing relationship with the real economy, with families and businesses, in keeping
with its role as a reference in the historical areas of Piedmont and Lombardy.

The communication is articulated through direct publishing, sponsoring cultural and sports activities, the active presence at
conferences and initiatives in partnership with public bodies and associations.

The magazine "Review" has played a leading role in corporate communications. Widespread in 38,000 copies, contains
signatures of international prestige, has the strategic lines of the bank and the Group, said the scenarios of the global
economy, devotes space to the area and initiatives developed through cultural and sports sponsorships.
In the month of December was published a special issue dedicated to the early decades of the journal Review. The first thirty
years. 1978-2008 "A goal of life is very rare, in the panorama of Italian banking. This volume collects the most significant
articles, grouped by topic area, and is testimony to the history and culture of a company able to anticipate change and to grow
while maintaining a close relationship with the local reality.



34
Also in 2009 the bank has marked an active presence in the field of cultural sponsorship.
Milan continued collaboration with the Museo Poldi Pezzoli, the bank was "main sponsor of the exhibition" Silk Crimson
Gold. The excellence of Milan at the time of the Visconti and Sforza, opened in the fall and received by audiences and critics
with keen interest.
In Pavia, it was confirmed the usual support for cultural activities of the municipality, with particular reference to the
museums. For the day "Call Building", sponsored by the ABI at the national level, the bank opened to visitors is
headquartered in Milan archaeological area of Alba.
During the exhibition sponsored by the ABI in Luxembourg, which were exposed 54 works of the seventeenth century from
the collections of Italian banks, the BRE has exhibited a painting of his own "Dead Christ and Mary Magdalene", by
Giovanni Maria Crispi Cerano said.

It has promoted conferences on topics of general economic and financial, with the participation of personalities of national
level. The theme of the tax shield has been treated in Cuneo and Pavia, Cuneo was always presented the Fourteenth Report
on the global economy and Italy, edited by Centro Einaudi, and a conference was held in collaboration with Centrobanca,
how investment in renewable energy sources.

No less important was the commitment in the field of sport. E 'continued sponsorship of the great volley, with the team of A1
series Bre Banca Lannutti. The relationship between the bank and volleyball is now twenty years, our brand has had high
visibility in the media and the combination proved to be effective, in terms of communication of values and commercially.
The sponsorship has been used in an active way, through initiatives aimed at schools.
E 'was confirmed support for the football teams of Cuneo and Pavia, respectively involved in the championship series D and
C2, the bank was the main sponsor of the Tournament European Regional Bank International Country Club, in Cuneo, and
Italian Championships Canoe- Marathon in Pavia, co-sponsor of the International Trophy Bonfiglio, sponsored by Tennis
Bonacossa in Milan.




                                                                                                                           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" by the insertion in Article TUF. 154 introduced a corporate organization listed companies in Italy, the figure of the
Officer who is entrusted with the responsibility to prepare the drafting of the accounting records of the company. 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 a continuous activity for the 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 provides, inter alia, the identification of the scope of application made by the companies of the UBI
Banca Group, from the accounts and processes are identified as significant for the production of financial reporting. Based on
its importance, the Bank has been included in the scope of design.

The verification activities performed on the adequacy and effective implementation of administrative and accounting
procedures for the preparation of financial statements for 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 companies / outsourcer of UBI Bank as
required by the "cascade system of claims" referred to in the financial model of administrative governance 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 and additional information provided in the separate financial statements for the preparation
          of consolidated financial statements and management report;
     •    evaluate the adequacy and effective implementation in 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 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:
          y deduction of 10% 'by IRAP' Ires;
          y realignments statutory / tax on the three year period 2005/2007;
          y Cedacri sale;
          y integration costs resulting from the merger transaction;

     •    2008:
          y modification of the criterion for determining the collective impairment losses on credit commitments;
          y liberation of the differences between tax values and tax to December 31, 2007;
          y CRT replacement starter sets;
          y integration costs resulting from the merger transaction.


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




                                                                                                                         37
Reclassified balance sheet
(In thousands of euro)


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

     10.                 Cash and cash equivalents                                               52.947       59.264             (6.317)              (10,7)

     20.                 Financial assets held for trading                                       47.284       58.041            (10.757)              (18,5)

     40.                 Financial assets available for sale                                     11.917       20.165             (8.248)              (40,9)

     60.                 Loans to banks                                                       1.632.032    2.050.737        (418.705)                 (20,4)

     70.                 Loans to customers                                                   7.278.450    7.639.924        (361.474)                  (4,7)

     80.                 Hedging derivatives                                                     55.903       55.516                387                 0,7

     90.                 Fair value of financial assets in hedged                                 8.666       12.387             (3.721)              (30,0)

     100.                Investments                                                            141.845       96.435             45.410                47,1

     110.                Tangible assets                                                        242.652      245.824             (3.172)               (1,3)

     120.                Intangible assets                                                       81.150       81.189                (39)               (0,0)

                             of which: goodwill                                                  81.050       81.050                   -                -

     130.                Tax assets                                                              71.989       65.236              6.753                10,4
     140.                Non-current assets held for sale                                             -           14                (14)                    -

     150.                Other activities                                                        81.661      116.596            (34.935)              (30,0)

                         Total assets                                                         9.706.496   10.501.328        (794.832)                  (7,6)




                                                                                                                       Change              % Change
                                            LIABILITIES AND SHAREHOLDERS 'EQUITY             31/12/2009   31/12/2008
                                                                                                                       Annual               Annual

     10.                 Due to banks                                                           303.878      672.637        (368.759)                 (54,8)

     20.                 Due to customers                                                     5.471.975    5.606.580        (134.605)                  (2,4)

     30.                 Securities issued                                                    2.490.990    2.622.204        (131.214)                  (5,0)

  40.+ 50.               Financial liabilities held for trading and measured at fair value       37.596       42.446             (4.850)              (11,4)

     60.                 Hedging derivatives                                                     25.138       26.487             (1.349)               (5,1)

     80.                 Tax liabilities                                                         26.657       49.199            (22.542)              (45,8)

     100.                Other liabilities                                                      281.118      353.797            (72.679)              (20,5)

     110.                Provision for employee severance                                        47.466       48.287              (821)                (1,7)

     120.                Provisions for risks and charges:                                       42.042       41.289                753                 1,8
                                  a) pensions and similar obligations                            24.298       24.297                  1                 0,0

                                  b) other funds                                                 17.744       16.992                752                 4,4

     130.                Revaluation reserves                                                   115.406      122.932             (7.526)               (6,1)

       16 0. 170. 18 0   Capital, share premium and reserves                                    809.613      803.978              5.635                 0,7

     200.                Operating profit                                                        54.617      111.490            (56.873)              (51,0)

                         Total liabilities and net worth                                      9.706.496   10.501.328        (794.832)                  (7,6)




38
Reclassified income statement
(In thousands of euro)


                                                                                                                                                                                     Change           Go ria uncle%
                                             VOC ID AND C ON TO EC ON OM IC O                                             3 1 / 12 / 2 0 0 9          3 1 / 12 / 2 0 0 8
                                                                                                                                                                                 to nnua              to nnua


        10 .- 2 0 .        Net interest if                                                                                              187.254                      290.885            (103.631)             (35,6)

           70.             Dividends and Pro Vent s Imil                                                                                  10.300                       6.730                  3.570             53,0

       40.-50.             MMIS Co s I ni net                                                                                           131.904                      146.623             (14.719)             (10,0)

    8 0. 9 0. 10 0. 110.   Res ultato net dell'attivita'di ziazio deny them coverage and co                                               12.756                     (1.975)               14.731                ns.

          19 0 .           Or other blacks / pro ges tio it winds                                                                          9.943                      12.219               (2.276)            (18,6)

                           P ro pe ra tiv ve nts or the                                                                              3 5 2 .15 7                4 5 4 .4 8 2         (10 2 .3 2 5 )         (2 2 ,5 )

         15 0 a .          Expenditure and the pers nal or                                                                            (128.627)                    (146.249)               17.622             (12,0)

         15 0 b .          S pes and other adminis trative                                                                              (96.002)                   (101.882)                  5.880            (5,8)

       17 0. 18 0.         Re net value adjustments on activities' tangible and intangible                                               (9.125)                     (8.670)                  (455)              5,2

                           One or re pe ra tiv i                                                                                   (2 3 3 .7 5 4)              (2 5 6 .8 0 1)           2 3 .0 4 7            (9 ,0 )

                           R is ulta tio ges to th e pe ra tiv it or to                                                               118 .4 0 3                  19 7 .6 8 1         (7 9 .2 7 8 )          (4 0 ,1)

         13 0 a .          Write-backs/impairment and value re net improvement of credit deterioration                                  (33.654)                    (30.955)               (2.699)               8,7

      13 0 b. c. d.        Adjustments / recoveries and net value re dete rioration of other activities '/ s pas CALLS'                    (506)                     (2.456)                  1.950           (79,4)

          16 0 .           Next CES Net ndi fo ris whom and for blacks or                                                                (2.196)                     (3.106)                   910            (29,3)

       2 10. 2 4 0.        Profit / loss from fair trade to it I s INVES departments and participation ni                                      (40)                        309                (349)              ns.

                           Profit / pe or pe rdita th e ra tiv ita 'co rre nt to the rdo                      taxes                    8 2 .0 0 7                 16 1.4 7 3          (7 9 .4 6 6 )         (4 9 ,2 )

          260.             Impo s te es s ul income ercizio Ordinance perativita 'co rrente                                             (26.107)                    (44.983)               18.876             (42,0)

                           Charges INTEGRATION                                                                                           (1.283)                     (5.000)                  3.717           (74,3)

                           Of which: s pes and the pers nal or                                                                          (1.481)                     (2.294)                   813             (35,4)

                                    s and other pes adm inis trative                                                                             -                  (4.686)                4.686                   -

                                    Re net value adjustments on assets and im m aterial m aterials                                        (309)                       (245)                   (64)              26,1

                                    taxes                                                                                                      507                    2.225               (1.718)             (77,2)

          290.             Profit and if rc izio                                                                                       5 4 .6 17                  111.4 9 0           (5 6 .8 7 3 )          (5 1,0 )


Construction method in the reclassified
Main classification rules:
      - the overdraft charges recorded in 10 - 20 "Net interest" (euro10.146 thousand to 31/12/2009 and 31/12/2008 21.606 million) were reclassified as 40 to 50 "Net Commissions";
      - recoveries of 190 sets recorded under "Other net operating income (EUR 16.028 million and 16.106 million to 31/12/2009 to 31/12/2008) are reclassified as a reduction in indirect taxes
             included in other administrative expenses;
      - 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 (to
             31/12/2009 and EUR 659 000 697 000 31 / 12/2008 classified under item 190 of the statutory scheme);
      - the Other income / expenses include the item 190, net of reclassification mentioned above.
                                                                                                                                                                                                                        39
Reclassified income excluding major non-recurring items
(In thousands of euro)


                                                                                                                                                                                                                                                                            Non-recurring
                                                                                                                                                  Non-recurring
                                                                                                                                                                                        31/12/2009                                                                                                              31/12/2008

                                                                                                                                                                                          net of
                                                                                                                                                                                                                              Shooting                                         Set                                net of

                                             INCOME STATEMENT ITEMS ICO                        31/12/2009   Deduction 10%       Realignment                 Sale        Charges         components               31/12/2008    Value                 Enfranchisement       replacement          Charges         components               variation       variation      %

                                                                                                                                                        Cedacri          integration
                                                                                                            IRAP by ires       taxation FTA                                             applicants                             credits              "EC Framework"            ZIP               integration     applicants


                                                                                                                                                                                                                              signature                                       CRT


         10.- 20.        Net interest income                                                     187.254                                                                                              187.254      290.885                                                                                                    290.885      (103.631)                 (35,6)


           70.           Dividends and similar income                                             10.300                                                                                               10.300         6.730                                                                                                     6.730          3.570                  53,0


         40. - 50.       Net commission income                                                   131.904                                                                                              131.904      146.623                                                                                                    146.623       (14.719)                 (10,0)


     80. 90. 100. 110.   Net income from trading and hedging dell'attivita'di                     12.756                                                     (8.944)                                    3.812       (1.975)                                                                                                    (1.975)         5.787                    ns


           190.          Other net operating income                                                 9.943                                                                                               9.943       12.219                                                                                                     12.219        (2.276)                 (18,6)


                         Operating income                                                        352.157                   -                  -              (8.944)                -                 343.213      454.482                      -                      -                                    -                 454.482      (111.269)                 (24,5)


          150a.          Staff costs                                                            (128.627)                                                                                            (128.627)    (146.249)                                                                                                  (146.249)        17.622                 (12,0)


          150b.          Other administrative expenses                                           (96.002)                                                                                             (96.002)    (101.882)                                                                                                  (101.882)         5.880                  (5,8)


       170. + 180.       Write-backs on 'tangible and intangible                                  (9.125)                                                                                              (9.125)      (8.670)                                                                                                    (8.670)         (455)                   5,2


                         Operating costs                                                        (233.754)                  -                  -                     -               -                (233.754)    (256.801)                     -                      -                                    -                (256.801)        23.047                  (9,0)


                         Operating profit                                                        118.403                   -                  -              (8.944)                -                 109.459      197.681                      -                      -                                    -                 197.681       (88.222)                 (44,6)


          130a.          Impairment / write-backs on loans                                       (33.654)                                                                                             (33.654)     (30.955)                                                                                                   (30.955)       (2.699)                   8,7


      130b. + c.+d.      Impairment / write-backs for impairment of other activities' / pass        (506)                                                                                                (506)      (2.456)               (1.879)                                                                              (4.335)         3.829                 (88,3)


           160.          Net provisions for risks and charges                                     (2.196)                                                                                              (2.196)      (3.106)                                                                                                    (3.106)           910                 (29,3)


       210. + 240.       Profit / loss from sale of equity investments                               (40)                                                                                                 (40)         309                                                                                                        309          (349)                    ns


                         Profit / loss from continuing operations' income before taxes            82.007                   -                  -              (8.944)                -                  73.063      161.473                (1.879)                      -                    -               -                 159.594       (86.531)                 (54,2)


              260.       Income taxes for continuing operations' current                         (26.107)            (1.710)           (1.572)                    554                                 (28.835)     (44.983)                  517                (4.115)              (11.205)                                 (59.786)        30.951                 (51,8)


                         Integration costs                                                        (1.283)                  -                  -                     -          1.283                        0       (5.000)                     -                      -                    -         5.000                         0                0                 0,0


                         of which: staff costs                                                    (1.481)                                                                      1.481                        0       (2.294)                                                                           2.294                          -               0                    -


                                       Other administrative expenses                                    -                                                                           -                        -      (4.686)                                                                           4.686                          -               -                    -


                                       Net adjustments to tangible and intangible                   (309)                                                                         309                       0         (245)                                                                               245                        -               0                    -


                                       taxes                                                         507                                                                       (507)                         -        2.225                                                                          (2.225)                         -               -                    -


           290.          Operating profit                                                         54.617             (1.710)           (1.572)               (8.390)           1.283                   44.228      111.490                (1.362)               (4.115)              (11.205)         5.000                    99.808       (55.580)                 (55,7)




40
Information on the group balance sheet

Loans and bank overdrafts
At December 31, 2009, the balance dell'interbancario, net of transactions in repurchase agreements made with the Parent
Company for collecting customer repurchase agreements, amounted to 991.1 million euro against the previous year-end
balance of 165.7 million euro.
The change is mainly due to the increased liquidity available for investment.

(In thousands of euro)
                                                                                                                                                                           It should be r. December em
                                                                                                                                                                                                   ber         '0 9 / Dec em ber   '0 8
                                                                                                    3 1 / 12 / 2 0 0 9                       3 1 / 12 / 2 0 0 8
                                                                                                                                                                                         Absolute                            %
C re ve rs or fingers      banks                                                                           1.6 3 2       .0 3 2                     2 .0 5 0      .7 3 7                   (4 18    .7 0 5 )                        (2 0 ,4 )

D biti ve rs or           banks                                                                              303         .8 7 8                       672         .6 3 7                  (3 6 8    .7 5 9 )                        (5 4 ,8 )

                                    P OS itions INTER BA NCA R IA NET                                             1.328.154                                1.378.100                                (49.946)                              (3,6)

(-) P ro nti co ntro-term assets                                                                                   (337.099)                              (1.212.423)                               875.324                           (72,2)


P OS itions BANK AND IN TER IA N ETTA                                                                            9 9 1.0 5 5                           16 5       .6 7 7                     8 2 5 .3 7 8                                 n. s.


Loans to customers
At December 31, 2009, loans to customers were down by 4.7% and amounted to 7.2784 billion euro, compared to 7,639.9 the
previous year end. Considering only performing loans, technical forms in the medium and long term loans include a
guarantee of the emissions of covered bonds, show an increase of 3.16% compared with the end of last year, accounting for
58.6% of used, the technical forms are short, a decrease compared with the end of 2008 (-16.56%).


Situation of loans at 31 December 2009
(In thousands of euro)

                                                                                                            Some do Es s izio                          R ttific and he goes to the king                        Some do Es s izio
                             Type            es s bit izio ni / va ri
                                                                                                                  the RDA                                          com ple ss iv and                                   net


a) Bad debts                                                                                                                             228.510                                            118.097                                 110.413

b) Substandard                                                                                                                           138.574                                             20.793                                 117.781

c) Es bit izio ni res s tructure                                                                                                          13.513                                              2.707                                  10.806

d) Es bit izio s ni s falls                                                                                                               47.352                                              1.125                                  46.227

                                                                 To the credit deterioration rati                                        427.949                                            142.722                                 285.227

e) Loans Bo nis                                                                                                                        7.017.394                                             24.171                                6.993.223

TOTAL                                                                                                                             7 .4 4 5 .3 4 3                                       16 6 .8 9 3                          7 .2 7 8 .4 5 0

At December 31, 2009 the Bank's net loans totaled 285.2 million euro, 44.2% more than the value of December 31, 2008.
In particular:
         •         the non-performing loans amounted to 110.4 million euro, increased by 18.4% compared with the end of December
                   2008, and their relationship to the overall lending is of '1.52% growth compared to previous year ( 1.22%);
         •         problem loans amounted to 117.8 million euro, increased by 28.7% compared to December 31, 2008; restructured
                   exposures from CHF 1.8 to 10.8 million euro, mainly due to an agreement with a counterparty for corporate about
                   6 million euro;
         •         the past due exposure 11.2000000-46.2000000 euro. The 2009 figure includes € 35.8 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.




                                                                                                                                                                                                                                          41
Net of the new component to the spill would have increased non-performing loans of 26.1%.
The level of coverage of the suffering of 51.7% is slightly lower than in December 2008, while that of problem loans
decreased from 16.7% to 15%.

The allocation of general reserves of the Bank (24.2 million euro) has a coverage level of performing loans at 0.3%.


Financial assets
In December 2009, financial assets amounted to 123.8 million euro, against 146.1 million euro of the previous year-end
stocks. The individual components have provided the following factors:
          "financial assets held for trading", amounting to 47.3 million euro, recorded a decrease of 18.5%, mainly
          attributable to the assessment of dirivati trading;
          "financial assets available for sale" decreased 20.2000000-11.9000000 euro. The decrease relates to the sale of
          Cedacri Spa for 10 million euro (considering the appreciation occurred in the year of EUR 1.3 million).;
     the "hedging" increase 55.5000000-55.9000000 euro;
          the 'Fair value of financial assets in hedged "decreases by 30% to € 8.7 million against 12.4 the previous year and
          represents the fair value of loans to customers covered in" macrohedging " .


Customer deposits
The administrative resources of the customers stood at the end of December of EUR 2,009,000,000 to 21148.6000000 up
5.3% compared to December 31, 2008.

Assets under management
(In thousands of euro)
                                                                                                                  It should be r.
                                                                                                                  December em ber                '0 9 / Dec em ber   '0 8
                                                          3 1 / 12 / 2 0 0 9          3 1 / 12 / 2 0 0 8
                                                                                                                     Absolute                                 %
Racco lta direct customer                                                7.962.965                   8.228.785                       (265.819)                              (3,2)

Racco lta indirect customer                                             13.185.675                 11.864.692                   1.320.983                                   11,1

                Of which: R is parm I ges tito                         7.481.060                   6.772.220                    708.840                                     10,5


TOTAL IS IN THE M EANS AMM TR A TI C LIEN CANVAS                    2 1.14 8 .6 4 0           2 0 .0 9 3 .4 7 7             1.0 5 5 .16     3                               5 ,3




Direct deposits
In December 2009, the consistency of the direct deposits amounted to 7.963 billion euro, a decrease compared to previous
year (-3.2%).

Customer deposits amounted to 5.472 billion euro, were broadly in line with December 31, 2008, in particular the repurchase
agreements are passed 1198.9000000-334.7000000 euro, a decrease of 72.1% while the current accounts and demand
deposits increased by 16.9% and stood at 5.102 billion euro.

The outstanding securities (2,491 million euro) recorded a decrease of 5% due mainly to the expiration of bond.
It is recalled that in the aggregate are including approximately EUR 500 million of bonds underwritten by the parent
company and designed the structural balance of the Bank.


Indirect funding
(In thousands of euro)

42
                                                                                                                                 Go ria uncle A / B
                                                   3 1 / 12 / 2 0 0 9       Incidence    3 1 / 12 / 2 0 0 8      Incidence
                                                          A                  %                  B                 %
                                                                                                                              Absolute                %


- In its adminis traction                                 3 .7 3 7 .10 3          39,9          3 .5 2 8 .7 15         39,5    2 0 8 .3 8 8                5,9

- I seem Res ges tito                                     5 .6 2 5 .2 9 5         60,1          5 .4 14 .3 2 2         60,5     2 10 .9 7 3                3,9

     Ges tio ni P atrim o n M o bile                              552.765          5,9                 540.035          6,0           12.730               2,4

     Fo Co ndi m ent and one of tim INVES S ICAV               2.982.043          31,9              2.793.880          31,2          188.163               6,7

     P rodu ct s as ICUR                                       2.090.487          22,3              2.080.407          23,3           10.080               0,5

C LIEN ON CANVAS OR D AR IA                            9 .3 6 2    .3 9 8        100,0         8 .9 4 3 .0 3 7        100,0       4 19 .3 6 1              4,7
- In its adminis traction                                      1.967.512          51,5              1.563.757          53,5          403.755              25,8

- I seem Res ges tito                                          1.855.765          48,5              1.357.898          46,5          497.867              36,7

C LIEN TO THE CANVAS IS TITUZION                       3 .8 2 3    .2 7 7        100,0          2 .9 2 1.6 5 5        100,0      9 0 1.6 2 2              30,9

TOTAL LE V IN D IR Olta ETTA                          13 .18 5     .6 7 5                      11.8 6 4 .6 9 2                1.3 2 0 .9 8 3              11,1




At December 31, 2009, is the indirect, market values, was equal to 13.1857 billion euro, an increase of '11.1% compared to
2008.

Overall, the amount reported to ordinary customers grew by 4.7% compared to year-end. The increase in both the states
managed fund (5.9%) including the placement of securities issued by the parent company, both in asset management with a
positive result (3.9%).

The collection of indirect institutional counterparties amounted to 3.8233 billion euro, an increase of 30.9% compared to
2008.


Shareholders' equity
For more detailed information please refer to the appropriate "Statement of changes in equity".




                                                                                                                                                             43
About the reclassified income statement

Net interest income amounted to 187.3 million euro, a decrease of 35.6% compared to the previous year, mainly due to the
reduction in interest rates.

Net commission income amounted to 131.9 million euro, a decline of 10% compared to the previous year. The decline has
focused on the fees related to the asset management sector (-24.2%) and payments system (-8.46%). Even the fees on
checking accounts, including the overdraft fees, showed a reduction of about 15%.

The trading and hedging yielded a profit of 12.8 million euro against the negative result of the previous year of EUR 2
million.
 The voice is analyzed as follows:

(Amounts in thousands)
                                                                                                                       31/12/2009                 31/12/2008
net trading assets (*)                                                                                                       1.076                     2.828
Net income from hedging activities (**)                                                                                      3.019                    -5.408
good sale / repurchase liabilities (***)                                                                                     8.661                       605
                                                                                                                             12.756                     -1.975

(*) The decrease of trading activity is mainly due to the derivatives segment.

(**) Net income from hedging is determined by the assessment of the bonds and that of its shell, to imbalance, show a positive result compared to previous year
due to the trend of market rates.

(***) Includes the gain from the sale of Cedacri SpA to 8.994 million euro.



Other income and expenses amounted to EUR 9.9 million, a decrease of 18.6% over the previous year mainly due to the
recovery of expenses by group companies.

As a result of these dynamics, operating income totaled 352.2 million share of the euro against the 454.5 million euro in the
December 31, 2008.

On the cost side, the "staff costs", amounted to 128.6 million euro, against 146.2 million euro in December 2008, a decrease
of 12%. The reduction is due primarily to lower charges for staff reduction, and lower provisions for incentive system.

The "other administrative expenses, which amounted to 96 million euro, a decrease of 5.8%. The fees intercompany show a
decrease of 3.3 million euro, despite comprise approximately 0.8 million cost for the interventions of the project "Spatial
Optimization" and about 1.8 million of VAT on services rendered by the Parent. In particular the synergies resulting from the
passage on a single platform have contributed significantly to the reduction in those costs.

Value adjustments on tangible and intangible assets amounted to EUR 9.1 million.

Overall operating expenses, amounted to 233.8 million euro, 9% less compared to the same period of 2008. The cost /
income ratio, calculated by dividing operating costs to operating income was 66.4% with a decline of 9.9 percentage points.

As a result of these trends, the operating margin stood at 118.4 million euro, down 40.1%.

44
The net adjustments to loans are from 31 to 33.7 million euro, reflecting a widespread deterioration in credit quality. The cost
of credit amounted, on an annual basis, approximately 0.46%.

The net write-backs for impairment of other assets and liabilities show a loss of EUR 0.5 million compared to a negative €
2.5 million in December 2008 and involves the evaluation of credit commitments, which totaled 788 million euro, and have a
coverage level of 0.4% and the assessment of commitments, which amounted to EUR 164 million, with a coverage level of
0.06%.
Please note that from June 2008, was made to align the methodology of calculation of the impairment of credit commitments
to that used on loans to fund performing loans, at December 31, 2008 noting a recovery value of 1.9 million euro (non-
recurring event).

Provisions for risks and charges amounted to EUR 2.2 million and include provisions against the risk of litigation for
revocation, proceedings for disputes with customers and staff.

The profit before tax, amounted to EUR 82 million against 161.5 million euro in 2008.

Taxes amounted to EUR 26.1 million and include the positive impacts resulting from the application of tax rules, as detailed
in "Report on Operations - Tax Aspects" and "reclassified income statement net of main non-recurring."

Integration costs, non-recurring items, amounted to EUR 1.3 million, net of related taxes. The same item in the same period
last year amounted to EUR 5 million and consisted primarily of personnel costs (EUR 2.3 million), administrative expenses
(4.7 million euro).

Net profit for the period amounted to 54.6 million euro, against 111.5 million euro the previous year.



                                                             *****




                                                                                                                             45
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.

As part of the "unified communications" (integration of telephone and workstation PCs), which started in 2008, together with
the progressive activation Parent Network Banks on the perimeter of the VoIP platform 19, work continued for
developmental services added value that will exploit this platform.

On the subject of the search engine was conducted an evaluation of two types of engines on the market, statistical and
semantic: the optimization of the first eligible survey released in generalist fields, the latter ideal for how to search in more
specialized and closer to the language natural. 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 - with a view to further
increase usage and improve the effectiveness of communication has been considered appropriate, in parallel with the gradual
expansion of the number of stations, improve the quality solutions with the introduction of high definition. In addition to
what was experienced during the year, for adoption on a large scale 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 .

As part of our 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 aimed at
simplifying and efficiency of the activities, particularly through leadership of the business process. The first application
context involve 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 interactivity.

Finally, from the viewpoint of the technological 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 a platform, providing the same service level of the infrastructure, introducing significant
economic benefits. The final solution is a concrete result, as early as 2009, operating systems and open standard hardware
market with a better cost / performance ratio.




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


46
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.




                                                                                                                     47
More information
The statutory changes
During the year were approved the amendments to the bylaws, adopted for the implementation of the provisions contained in
the Decision of the Bank of Italy on 4 March 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 "clear distinction between the two 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, as essential elements for achieving the conditions and business goals to ensure sound and
prudent management.
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 Financial Regulator in relation to the organization and corporate governance of banks, and
sending the same to the Bank 's Italy.
With reference to the statutory changes resulting from the "Draft Spatial Optimization" you refer to what is stated in the
paragraph.


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.


Changes corporate structure
As part of the reorganization of the management structure of UBI and rationalization involving several Directorates of Banks
of the Group and of the 'optimization of local presence, were also prepared certain changes in the responsibilities of the
executive European Regional Bank with effect from 1 September 2009: Roberto Tonizzo has been appointed Deputy General
Manager Richard Barbarini and that of Deputy General Manager and Sales Director, succeeding John Zanoni, called to fill a
position within the Directorate of the Parent.
With effect from 1 January 2010 time Tonizzo Robert has been appointed General Manager.


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,
repatriation legal or regularization within 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, ornaments, 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 30

48
April 2010. The tax substitution 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 contained in the regulatory impact. 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 was 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 biennium, an increase of the share during the
deductible, which passes from 0.30% to 0.50% of the ordinary, and reduce the time period of the tax deduction for any
amount in excess of the 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 the ongoing devaluation. This prevents the state not only an estimate of the economic and
financial effects of this legislation the 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 under the accounting rules in IAS / IFRS, creates 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 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 Art. 6 della L. 133/99 which exempted from VAT in general all services
rendered in 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 opening on the activities of consortia and the type of members that the Inland Revenue has clarified with
Circular No. 23 8 May 2009, there remains a 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.

Determination of income subject to the IAS
With the enactment of Decree No 1 April 2009 48 has completed the adoption of rules modifying / integrating the IAS
Consolidated Income Tax Act for those already under way with the Law No 24 December 2007 244 and later supplemented
with DL 185/2008 are provided where the manner in which realignment statutory / tax values of items even in the face of
extraordinary.


                                                                                                                              49
More specifically, the legislation provides for the possibility of realigning the different values for statutory / tax covering the
period 2005/2007 following the legislation previously in force other than through the payment of substitute tax.
These realignments concerning the assets or liabilities resulting from:
     a) extraordinary transactions (mergers, divisions, transfers, etc..)
     b) management.
In case b) allowed the realignment of all cases on payment of taxes at the ordinary rate, or to individual cases chosen by the
taxpayer with a payment of a substitute tax (IRES / IRAP) of 16%.
While the portion corresponding to the extraordinary relief in the budget had already had 2008 (as specified therein), in relation to
the ordinary activities of the Group considered it appropriate, even for the impact organizational / administrative action to eliminate
the so-called dual track, do realignments specific regarding the following cases:
     -    mismatches arising from 1 January 2009 the first application of IAS (cd First-time adoption);
     -    1 January 2009 arising from the mismatch in the system of principles
          IAS / IFRS which could not have produced so far had applied the new tax measures introduced by the said Finance
          Act 2008.
As a result of this option - performed June 16, 2009 pursuant to art. 15 DL 185/2008, in conjunction with the payment of the
balance of taxes for the year 2008 - taxes were paid to 2.3 million and were freed at the same time, in the income statement,
such as taxes already signed up 3.9 million deferred tax assets / liabilities.
It must be emphasized as a result of soprarichiamate changes, the existing tax system for individuals IAS is focused both
IRES that IRAP, the so-called "derivation principle" by the findings of financial statements under international accounting
standards. The date of this budget the Finance Ministry has not yet issued the circular wait illustrating the whole subject,
thereby making it difficult and sometimes uncertain determining taxable income tax even in the context of testing which is to
be over.

Deductibility lump credit IRAP
Decree Law No. 185/2008 (so-called "anti-crisis decree") introduced with effect from tax year 2008, the flat-rate deduction
of 10% of IRAP to the IRES. The measure in question also provided for the retroactive application of that to the deduction
for tax years 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 year 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 after tax profit.
For the annual membership in the consolidated tax the amount requested to be refunded - as reported to the total income from
fiscal consolidation - Consolidation will be recognized at the UBI, which will subsequently awarding 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 should be noted that the overall amount requested for reimbursement electronically for the years 2004-2007
carried forward amount to euro 1.71 million.

The total amount is, for individual annuities, allocated as follows:
     •    year 2004 EUR 339 000;
     •    EUR 361 000 in 2005;
     •    EUR 528 000 in 2006;
     •    482 000 euro in 2007.




50
Given that the repayments will be made by the 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 when the repayment of the estimated claims in
question, although this can be done in a manner and at relatively long installments.
From an accounting point of view, the balance sheet at 31 December 2009, has made an entry of a claim for an amount equal
to the total amount shown above in return for the entry of lower taxes for the year.


Information on litigation
Opposition from the European Regional Bank against a sanction of the Ministry of Economy and Finance
In 2001, the Ministry of Economy and Finance had imposed two penalties in the European Regional Bank (a total of EUR
10.3 million) for alleged violations of the Law 197/1991 (so-called Act on money laundering).
Promoted the causes of opposition had ended in favor of the Bank, in its ruling of January 28, 2003 the Court of Mondovi.
Against such measures, the Ministry had appealed to the Supreme Court. Judgments in March-April 2007, the Court of
Cassation upheld the appeals ministerial overrule the judgments of the Court of Mondovi with reference to the Court of
Turin, on which the BRE has launched a separate action and is made in proceedings instituted by the Ministry.
The reinstatement have recently been combined into two separate proceedings. In both cases, the courts are willing to walk
the final settlement of cases prior implementation of an official technical consultancy with the appointment of an expert, that
the BRE has added its own expert witnesses.
On September 30, 2009 were submitted reports by the technical consultant.
For both processes, the Bank, collecting an indication of the judiciary, has declared its readiness for a final settlement and is
awaiting feedback on that point by the Ministry. A garrison of that litigation is a fund of EUR 5.1 million euro.


Territorial Operation Optimization
On September 30 was approved with effective legal and accounting January 25, 2010, under the federal model of reference, a
project to optimize the coverage of the network banks, aimed at optimizing the structure of the distribution network through
the specialization of the same for geographical area, with a focus on the territories of historical roots.
In particular, it is expected to be almost exclusive allocation of coverage for each Bank Network, through the grouping of the
Group's subsidiaries on the same territory under a single reference mark, an increase in market share and greater visibility for
each individual Bank Network, and a parallel simplification of business development and credit management.
The operation will involve the transfer of intercompany about 300 branches and 2,200 resources among European Regional
Bank (BCC), Banca Popolare Commercio e Industria (BPCI), Banca Popolare di Bergamo (BPB), Banco di Brescia (BBS)
and Banco di San Giorgio (BSG).
At the end of the transaction:
     •   BRE will be the bank of reference for the Piedmont region, with the transfer of the Directorate General from Milan
         to Turin;
     •   BPCI will reference bank in Lombard provinces of Milan and Pavia, and in the provinces of Emilia Bologna,
         Parma, Piacenza, Modena, Reggio Emilia and Ferrara;
     •   BPB is the bank of reference in the provinces of Bergamo, Varese, Como, Lecco, Monza and Brianza;
     •   BBS will be the bank of reference in the provinces of Brescia, Lodi, Cremona, Mantua and Triveneto;
     •   BSG will reference bank in the region of Liguria.

                                                                                                                              51
However, does not change the current focus area of Banca Popolare di Ancona, Carime Bank and the Bank of
Vallecamonica.

After implementation of the project, the UBI will operate with a single reference mark in 74 of the 78 provinces in which it
operates.

The transfers will be made through ATM transfers of businesses (there are no 14). Each of the five retail banks assignee will
carry out a capital increase in the service of duty. Since the transactions under common control "the capital increase will not
emerge as an additional action, related to the actual value of the given branch, will be issued at par. Banks then proprietors
will yield the parent company resulting from the equity contributions made.

The territorial rationalization has led to the Bank, the transfer of 115 existing branches in areas patrolled by the other banks
of the Group and the acquisition of 45 branches on the territory, which enabled it to strengthen its presence in specific
geographic areas.
The table below shows the effect of the concentration of branches in specific geographic areas that show increases in the
share market branches over 5%.


                                                    Sitauzione
                                                    Current Situation                  Reference scenario
               Region             Province                  BRE                                BRE
              LIGURIA               Genoa
                                     Como                    0,3%


                                  Mantova                   0,6%
                                     Milan                   1,5%                               0,04%
            LOMBARDY
                                    Monza                    0,9%

                                     Pavia                   11,4%



                                   Varese                   0,8%
                                   Novara                   1,8%                              5,0%
             PIEDMONT
                                   Torino                   1,0%                               2,9%




For the purposes of determining the values of the branches and capital increases, the Board of Directors of the Bank has
assessed the same classes with the support of an external consultant, this assessment was based on the following
methodological principles:
      •  the value of each counter was obtained by capitalizing the income realized in 2008 specifically as a representative
         of the average normal ability to generate profit by a door - so-called middle-income standard expected;
      •  of the value obtained was less the current value of the notional cost of regulatory capital in the face of tellers;
      •  the value of the desk was less the present value of the income generated from the securitized loans as excluded
         from the scope of delivery.

For each transfer of a business, in which the Bank appears to be transferring bank was prepared the report under oath of the
expert appointed by the Court jurisdiction under Article. 2343 of the Civil Code, which contains a description of the goods or
credits granted, the confirmation that their value is at least equal to that given to them for the determination of the share
capital and share premium and the policies adopted.



52
Since in accordance with guidance given by the Board of Notaries of Milan, the appraisal must be based on the above
mentioned values to date with respect to transactions for which it is intended, and these values can not be earlier than 4
months of the date of that will be asked to vote on the proposal for capital increase to service the transfer.

The Board of Directors has a Sept. 30, 2009 to update data on the branches being contributed, with the consequent revision of
the evaluation of the branches.

On this occasion, were configured in detail the perimeters of a business to themselves, with the timely identification, analysis
and insights as a result of organizational and business that have seen the cooperation and the sharing of the directions of the
banks network, not the subject of legal relations transfer (securitized mortgages and loans), the special exceptions represented
by certain types of customers, contract management treasuries Public Bodies, of lending against security, operating models
and structures for migration, real estate, the equipment and manpower involved in migration.

Also points out that according to Art. 2441 cc and the combined provisions of Articles. 158 and 165 TUB opinion on the
fairness of the price of the shares to be issued by the company responsible for the audit (in place of the supervisory board).


The impact of the transaction on the capital ratios

The set of operations outlined a positive impact on capital ratios, in particular, the Bank estimates a significant increase in the
Total Capital Ratio, which will amount to 22.99% compared to 11, 64% of December 31, 2009.


Increase in share capital at the service of contributions received

The share capital was increased from Euro 442 million to Euro 468,880,348.04 by issuing a No 51,692,977 ordinary shares
of par value Euro 0.52 each - and then for a total nominal value of 26,880,348.04 euros - to be allocated to the conference in
the following quantities:
     •    No 13,548,699 ordinary shares in BBS, compared with a figure for the Euro 30,200,051 (of which Euro 1,450
          thousand for property);
     •    No 35,837,198 ordinary shares in BPB, compared with a figure for the Euro 79,881,115;
     •    No BPCI 2,307,080 ordinary shares, compared with a value of the contribution of Euro 5,142,481.

Upon a determination of the number of new shares on the basis of its current value (2.229 euro), the issue materializes at face
value. Consequently, it amended the first paragraph of Article 5 of the bylaws.




                                                                                                                                53
Corporate structures
It contains a summary of its new corporate structure of the Bank at the end of duty:


                                     Partecipaizoni      Sitauzione Situation    Scenario        Delta
                                          (%)                Current             Reference
                                          Shareholders          BRE                   BRE         BRE


                                         Minorities          0,08%                 0,08%         0,00%
                                      UBI BANCA             59,95%                56,52%         ‐3,44%
                                             FCN            19,98%                18,84%         ‐1,15%
                                             BML            19,98%                18,84%         ‐1,15%
                                             BBS                                   1,50%         1,50%
                                             BPB                                   3,97%         3,97%
                                             BPCI                                  0,26%         0,26%
                                              Total            100,0%               100,0%        0%




In this context it should be noted that both the Fondazione Cassa di Risparmio di Cuneo Foundation Banca del Monte di
Lombardia, a result of contributions, will dilute its stake in BRE from 20% to 18.8%.

Given the new focus in the area of Piedmont has agreed to implement a reorganization of corporate structures of the Bank to
be implemented through the following ways:
         Fondazione Banca del Monte di Lombardia sell:
             or 114,508,761 ordinary shares in BRE Bank UBI;
             or 46,229,129 ordinary shares at the Fondazione Cassa di Risparmio BRE;
             or 9,120,340 shares of BRE savings to the Foundation Cassa di Risparmio di Cuneo.

The rationalization of structures of participation will also involve the purchase by UBI Banca minority interests held cross
between different banks of the Group.

After the re-participatory Bank activities will be held for 74.94% of UBI Bank to 24.98% from the Fondazione Cassa di
Risparmio di Cuneo and 0.08% from minorities.
Following are an indication of the changes found in the main balance sheet of the bank, based on data as at 31 December
2009. As mentioned above, the actual values will be those existing at the date of January 25, 2010, effective date of the legal
and financial contributions.

                                                                                                                       BRE

                                                                                Data in mg / €     Bonis                     Impaired

 Item 70 Loans to customers (book value at 31/12/2009)                                                      6.993.223               285.227

 by Banco di Brescia                                                                                         262.263                     5.413

 Banca Popolare di Bergamo                                                                                   947.615                    29.525

 Banca Popolare Commercio e                 Industry                                                         540.526                    11.745

 Banco di Brescia                                                                                           (464.841)              (12.886)

 Banca Popolare di Bergamo                                                                                  (214.494)              (12.121)

 Banca Popolare Commercio e               Industry                                                         (1.743.925)             (44.518)

 New Bank                                                                                                  6.320.367               262.385




54
                                                                                                                  BRE


                                                                                              Item 20                   Item 30
                                                                     Data in mg / €
                                                                                             Due to customers           Securities issued

 book value at 31/12/2009                                                                               5.471.975              2.490.990

 by Banco di Brescia                                                                                    101.782

 Banca Popolare di Bergamo                                                                              474.355                    8.776

 Banca Popolare Commercio e    Industry                                                                 160.131                       95

 Banco di Brescia                                                                                        (75.111)                    (50)

 Banca Popolare di Bergamo                                                                               (85.194)

 Banca Popolare Commercio e   Industry                                                             (1.155.869)                    (4.888)

 New Bank                                                                                           4.892.069                  2.494.923




Appeal against the sanction of the Italian Competition Authority
As reported in previous disclosures, 8 August 2008 the Competition Authority and the Market, following a preliminary
investigation launched in May 2008, had issued a sanction against 23 banks, including the Bank, holding that the operation
taken in regard to transfer of loans violates the provisions on unfair trade practices contained in the Consumer Code (Articles
18 e segg. Leg. 206/2005, as amended by Legislative Decree no. 146/2007), in particular for having responded to the demand
of customers to change bank lender offering the most expensive replacement of the mortgage rather than portability (art. 8
D.L. 7 / 2007, first as amended by Law 40/2007 of conversion and then by Law 244/2007), also in violation of the duties of
good information in the text. The sentence imposed was equal to 450 thousand euro. The Bank Group's network to which the
penalty had been responsible for their payment in time, however, making express reservation of repetition on a successful
appeal.
At the same time, all of the 23 sanctioned banks, including those of the UBI Banca Group, brought an administrative appeal
against the decision in question with the TAR of Lazio, on February 4, 2009, upheld the appeal for annulment of fines
imposed.
In July, the Authority sent the Ministry of Economy and Finance, as the Directors responsible for the payment, nothing
precludes the acceptance of the application for refund of the penalty imposed on the Bank at the time.
On October 6, 2009 was filed on appeal to the State Council has already been notified on 18 September. The arguments on
appeal do not change with respect to those already expressed by the Authority in that sanction and defenses in the TAR of
Lazio. There was also submitted request to suspend the obligation to repay the sums paid by way of penalty: the date of this
Report, the Bank is still pending the approval by the Ministry.
In November 2009, the Bank Group's network has provided for the formal establishment of the courts: they are currently
being prepared defenses on the merits - in line with the assumptions already expressed and comforted by the full acceptance
by the administrative court of first instance - that will be deposited in ordinary terms provided before the hearing, which has
not yet been set.
Given the solid motivation of the decision at first instance, the positions concerned are classified as liabilities.




                                                                                                                                     55
Interventions "Anti-crisis" in support of small and medium-sized enterprises and 20 families
During 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
with public bodies Warranty 21.
At the same time the Group has adhered to the major initiatives at the system level by the Italian Banking. On 12 August the
UBI acceded 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, and ABI Banks and other
associations Enterprise Centre, to support SMEs that are in temporary financial difficulty, 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 22.
In order to allow a more streamlined operational management of applications for accession to the Agreement, a process was
set up specifically for the resolution of applications for admission to the benefits of the moratorium.

As regards, in particular, the offer provided by the Agreement of measures 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 of
capital actually paid by the shareholders 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
of the major consortia agreement, which have better features than in terms of the agreement:


20 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.
For 21 companies, in particular: 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 extraordinary times the anticipation of the layoff
   to assist families in need.
22 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,
   extending the operation of a suspension of 12 months of the share capital of the depreciation rate of MLT loans secured by issuance of promissory notes, extension of
   'scope of benefits financed through public interest or capital.



56
"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 company
(corporation, persons or businesses), for a maximum of EUR 1 million, aimed at supporting capitalization processes and
rebalancing the 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.

Again for the active intervention of "anti-crisis", August 6 UBI Group has signed a loan agreement with the Bank for
Deposits and Loans (CDP) pursuant to the Convention signed by the ABI and the CDP for May 28, 2009 offer new
opportunities for financing on favorable terms to 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 (as part of a first tranche of 3 billion expected at the system level
23) to finance investments to be made and / or under construction that is the increase of working capital for SMEs (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 %, of
which the Group can benefit from UBI.
The term of repayment of the loan granted by the Cassa to the participating banks is set at a maximum of 5 years with a grace
period of 3 years at a rate equal to EURIBOR plus a spread to six months today equal to 70 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 acceded to the suspension of the repayment of loans in relation to families in difficulties
as a result of the crisis, signed by the ABI and thirteen consumer associations 24. 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 joined the Framework Agreement signed in May 2009 by the ABI and the CEI (Italian Episcopal
Conference), providing the "Loan of hope" for the families who have lost all earned income, are not granted annuities or
other income outside of that generated by the properties of the dwelling house or layoff allowance Ordinary or Extraordinary
and aims to make plans for the re-employment or start a business.
The delivery of these loans, available from September and up to 2012, has been centralized in Banca 24-7.


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


23 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.
24 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 have suffered or suffer in 2009-2010 especially negative events (death, loss of employment, conditions of occurrence of long-term care, access to the
     layoff).

        57
decision of July 28, 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 to which it must submit the performance of services. At the same time introduces a new
framework for access to the payments market also legal persons other than banks and electronic money institutions.
The main change relates to the obligation from 1 January 2012, the amounts are credited to the beneficiary's account 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.


Covered Bonds
In 2009, UBI Banca carried further diversify its sources of institutional funding by completing the first issues of covered
bonds (covered bonds) in a program of up to EUR 10 billion issued in July 2008, the only program multioriginator "in Italy
which provides a scheme involving 10 banks in the Group.
In detail have been carried out successfully two issues of covered bonds from EUR 1 billion each.
The first - placed in September to 99.466% of par value and admitted to listing on the London market - has lasted seven years
(September 23, 2016) and a fixed rate of 3.625%, corresponding to the mid swap rate 60 basis points to seven years.
The second - placed at 99.177% of par value and admitted to listing on the London market - has lasted ten years (December
16, 2019) and fixed rate of 4%, reflecting the 10-year mid swap rate 67 basis points.
Both issues - with a AAA / Aaa by Moody's and Fitch - were treated by Barclays as Arranger and Barclays, Deutsche Bank,
Natixis and Société Générale acting as Joint Lead Managers.
Guarantor of emissions UBI Finance Ltd, which was formed at a portfolio of residential mortgage loans sold by banks in the
Group participating in the program, in this context, the Bank has made, with the two supplies of July 2008 and December
2009, 19, 2% of the portfolio, representing a value assignment to around 750 million euro.
Further details are provided in the appropriate section C.3 of Part E of the Notes.


Consortium PattiChiari: the commitment to quality
As you know, part 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 "car industry" to implement a comprehensive plan of action that
involves 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 sector in the provision of high standards of
customer service.

Project activities have therefore been mainly oriented to the gradual start of the Commitment to Quality and other initiatives
promoted by the Consortium, in accordance with "plan

58
implementation "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 self-regulation, 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 as incorporated within the Bank
of Italy's new rules on transparency.

In 2009, the Bank has started all fourteen Commitment to Quality Phase 1 25, ten commitments to the quality of phase 2 26,
and four additional 27 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 28. the annual update of the Security Policy Document (PSD) requirements of Article. 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, this
guarantees under the contract of service, compliance and the adoption of measures in terms of law security required 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 and operations daily. The Global Compact - signed in September 2002 - is an appeal launched in 2000 by
UN Secretary-General Kofi Annan to all actors of society to work together to build more equitable and sustainable global
economy.



25 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.

26   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.
27    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, the list of regulated services available to the account.
28     Updating the DPS for the current year was approved by the Board of Directors March 15, 2010

                                                                                                                                                                                     59
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 an integration of goals and specific projects in the Group Business
Plan .


The Plan for Social Responsibility
The Plan for Social Responsibility - is consistent with the timeframe of the Plan which will gradually integrate with -
identifies four broad areas (Corporate Governance, Business Management, Management of social intervention, reporting and
monitoring), a series of targets 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 the company 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 within and outside of the organization to ensure compliance
by the management not only with the values and reference principles, but also to laws, regulations and voluntary codes of
conduct adopted. Parallel to the drafting of the Code of Ethics in 2008 than 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.
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 the 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 company, for example in terms of resource consumption, waste
production and emission of harmful substances ( direct impacts), 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 resources and the
elimination of 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.




60
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 ( ICAAP - Internal Capital Adequacy Assessment Process).

In this context, the Bank has carried out 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 process involves assessing 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 ( by which we 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 operations to their risk tolerance.
Consider the mission and operations of the Bank 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 relevant legislation .

The risks of Pillar - already has a presence from the regulatory requirement required by the Supervisory
- are:
       •    credit risk (including counterparty risk), risk of incurring losses resulting from default of a counterparty in
            respect of which there is credit exposure;
       •    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 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

                                                                                                                                  61
            operations, unavailability of systems, breaches 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:
               y   concentration risk: 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 subtypes can be distinguished in single name and sector concentration risk
                   concentration risk;
               y   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;
               y   Business risk: the risk of adverse changes and unexpected earnings / margins than expected data, linked to
                   volatility in volumes due to competitive pressures and market situations.
               y   participatory risk: risk of losses arising from the investment portfolio.
     2) Risks can not be measured:
               y   risk arising from securitization means the risk that the economic substance of the securitization is not
                   fully reflected in pricing decisions and risk management;
               y   compliance risk: 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);
               y   Liquidity risk: 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;
               y   Reputational risk: 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;
               y   residual risk, risk of incurring losses resulting from unforeseen ineffectiveness of accepted techniques for
                   mitigating the credit risk used by the company (eg mortgage);
               y   strategic risk: 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 securities brokerage 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).

62
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.

The detailed information on the objectives and policies relating to financial risk management and the Bank's exposure to
price risk, credit risk, liquidity risk and the risk of cash flow - provided by ' art. 2428 C.C.
- Is shown in Part E of the Notes to which it refers.


Uncertainties
The uncertainty is defined as a possible event where the 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 the euro area. In particular it is expected - to be part of international agencies - a slow recovery, with large
uncertainties associated with global economic developments and the continuing deterioration of the labor market. The
tensions in financial markets have weakened since last year, the last 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 the worsening of the tax burden and measures of public expenditure 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. Is thus of particular
          importance to the future dynamics of inflation and in that 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 the entire euro area. Are not possible, however, potential adverse effects resulting from a growth of
          commodity prices - especially in the energy sector - 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 - could reduce exposure to business risk;
     •    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 reduction of


                                                                                                                                 63
          themselves 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 issuance 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.




64
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 the evolution of management 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.

The outlook on the revenue side shows a substantial stability of the spreads with customers, net of possible adverse effects on
the timing of indexation of certain items (including retail loans) and increases in lending and funding, and the stability margin
and commission .

On the cost side there is a further effort to contain the effect of rationalization of the distribution network and reducing the
costs of expertise and direct management of the bank.
The cost of credit is provided in line with the year 2009.




                                                                                                                               65
Proposals to
The Board considers that it should express a heartfelt thanks to all staff, which contributed to the economic results and to
defend and enhance the competitiveness of the Bank.

Also invites the Shareholders to approve the financial statements at 31 December 2009 in all its components and the
following allocation of net income of EUR 54,617,527.




                                                                           3 1 / 12 / 2 0 0 9                      3 1 / 12 / 2 0 0 8



Net income                                                                                          54.617.527                            111.490.445

in Ris Erva Law                                                                                      2.730.876                               5.574.522

RESULT S to Phaco Res Erva                                                                              17.138                                  59.920



Profit from dis tributing

- No to 46,310,550 Actium ni res seems to me to                             or for stating that each Euro 0.0999   or for stating that each Euro 0.1635

                                                                              for a total of EUR 4,626,424 that       for a total of EUR 7,571,775 that

- No to 735,098,007 Actium ni or rdinarie                                   or for stating that each Euro 0.0581   or for stating that each Euro 0.1216

                                                                                 for to that of Euro 42,709,194          for to that of Euro 89,387,918

- No to 68,591,443 preferred Actium ni                                      or for stating that each Euro 0.0661   or for stating that each Euro 0.1297

                                                                              for a total of EUR 4,533,894 that       for a total of EUR 8,896,310 that




Milan, March 15, 2010


                                                                                       The Board of Directors




66
Financial Statements




                       67
Balance Sheet
(In euro)



                                                                                         Change               % Change
VOICES OF 'ACTIVE                                    31/12/2009           31/12/2008
                                                                                         Annual                Annual

10.    Cash and cash equivalents                      52.946.549           59.263.906         (6.317.357)                 (10,66)
20.    Financial assets held for trading              47.284.423           58.040.553        (10.756.130)                 (18,53)
40.    Financial assets available for sale            11.917.183           20.165.476         (8.248.293)                 (40,90)
60.    Loans to banks                               1.632.032.398        2.050.737.027      (418.704.629)                 (20,42)
70.    Loans to customers                           7.278.450.067        7.639.923.897      (361.473.830)                  (4,73)
80.    Hedging derivatives                            55.902.839           55.516.149              386.690                  0,70
90.    Fair value of financial assets in hedged        8.665.932           12.387.102         (3.721.170)                 (30,04)
100.    Investments                                  141.844.790           96.434.518         45.410.272                   47,09
110.    Tangible assets                              242.651.691          245.823.855         (3.172.164)                  (1,29)
120.    Intangible assets                             81.149.844           81.188.656              (38.812)                (0,05)
          Of which:
                   ZIP                                81.050.199           81.050.199                     -                     -
130.    Tax assets:                                   71.989.454           65.235.993             6.753.461                10,35
         a) current                                   28.524.422           23.652.136             4.872.286                20,60
         b) deferred                                  43.465.032           41.583.857             1.881.175                 4,52
140.    Non-current assets held for sale                          -            13.541              (13.541)                     -
150.    Other activities                              81.661.363          116.597.466        (34.936.103)                 (29,96)
Total assets                                        9.706.496.533       10.501.328.139      (794.831.606)                  (7,57)



                                                                                         Change               % Change
LIABILITIES AND SHAREHOLDERS 'EQUITY               31/12/2009           31/12/2008
                                                                                         Annual                Annual
10.     Due to banks                               303.877.916          672.637.493       (368.759.577)                  (54,82)
20.     Due to customers                          5.471.974.751        5.606.580.419      (134.605.668)                   (2,40)
30. Securities issued                             2.490.990.386        2.622.204.164      (131.213.778)                   (5,00)
40.     Trading financial liabilities               37.596.187           42.445.664         (4.849.477)                  (11,43)
60.     Hedging derivatives                         25.138.336           26.487.152         (1.348.816)                   (5,09)
80. Tax liabilities:                                26.657.092           49.199.425        (22.542.333)                  (45,82)
            a) current                              22.001.123           38.907.133        (16.906.010)                  (43,45)
            b) Deferred                              4.655.969           10.292.292         (5.636.323)                  (54,76)
100. Other liabilities                             281.118.097          353.796.976        (72.678.879)                  (20,54)
110. Provision for employee severance               47.466.126           48.287.260           (821.134)                   (1,70)
120. Provisions for risks and charges:              42.041.602           41.289.414               752.188                  1,82
           a) pensions and similar obligations      24.297.812           24.297.176                   636                  0,00
           b) other funds                           17.743.790           16.992.238               751.552                  4,42
130. Revaluation reserves                          115.405.945          122.931.601         (7.525.656)                   (6,12)
160. Reserves                                      367.612.568          361.978.126          5.634.442                     1,56
180. Capital                                       442.000.000          442.000.000                       -                     -
200. Operating profit                               54.617.527          111.490.445        (56.872.918)                  (51,01)
Total liabilities and net worth                   9.706.496.533       10.501.328.139      (794.831.606)                   (7,57)




68
Income Statement
(In euro)



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


10.    Interest receivable and similar income                 311.892.705       574.188.238      (262.295.533)        (45,68)

20.    Interest payable and similar charges                  (114.492.071)     (261.696.798)      147.204.727         (56,25)

30.     Net interest income                                   197.400.634       312.491.440      (115.090.806)        (36,83)

40.     Commission income                                     129.122.493       134.223.637        (5.101.144)            (3,80)

50.     Fee and commission expense                             (7.365.114)       (9.206.639)        1.841.525         (20,00)

60.     Net commission income                                 121.757.379       125.016.998        (3.259.619)            (2,61)

70.     Dividends and similar income                           10.300.318         6.730.172         3.570.146             53,05

80. Net income from negozizione                                 1.076.045         2.827.811        (1.751.766)        (61,95)

90. Net income from hedging                                     3.018.778        (5.407.986)        8.426.764        (155,82)

100.    Net income (loss) on disposal of:                       8.661.078        (2.230.994)       10.892.072        (488,22)

         a) loans                                                          -     (2.836.193)        2.836.193                  -

         b) financial assets available for sale                 8.944.165                    -      8.944.165                  -

         d) financial liabilities                               (283.087)           605.199         (888.286)        (146,78)

120. Operating income                                         342.214.232       439.427.441       (97.213.209)        (22,12)

130.    Losses / recoveries on impairment of:                 (34.160.069)      (30.575.121)       (3.584.948)            11,73

         a) loans                                             (33.654.128)      (28.119.475)       (5.534.653)            19,68

         b) financial assets available for sale                 (126.825)         (177.885)            51.060         (28,70)

         d) other financial                                     (379.116)        (2.277.761)        1.898.645         (83,36)

140. Net income from financial                                308.054.163       408.852.320      (100.798.157)        (24,65)

150.    Administrative costs                                 (242.137.875)     (271.217.650)       29.079.775         (10,72)

         a) staff costs                                      (130.107.993)     (148.542.590)       18.434.597         (12,41)

         b) Other administrative expenses                    (112.029.882)     (122.675.060)       10.645.178             (8,68)

160.    Net provisions for risks and charges                   (2.195.664)       (3.106.161)          910.497         (29,31)

170.    Impairment / write-backs on property and equipment     (8.724.443)       (8.154.021)        (570.422)              7,00

180.    Impairment / write-backs on intangible assets             (50.607)          (63.958)           13.351         (20,87)

190.    Other net operating income                             25.311.448        27.628.266        (2.316.818)            (8,39)

200. Operating expenses                                      (227.797.141)     (254.913.524)       27.116.383         (10,64)

240.    Gains (losses) on disposal of investments                 (40.004)          309.246         (349.250)        (112,94)

250. Net income (loss) from ordinary activities before tax     80.217.018       154.248.042       (74.031.024)        (47,99)

260.    Taxes on income from continuing operations            (25.599.491)      (42.757.597)       17.158.106         (40,13)

270. Net income (loss) from ordinary activities after tax      54.617.527       111.490.445       (56.872.918)        (51,01)
290. Operating profit                                          54.617.527       111.490.445       (56.872.918)        (51,01)




                                                                                                                           69
Statement of Comprehensive Income
(In euro)


                                                   Voices                                           31/12/2009         31/12/2008


10.   Net income (loss)                                                                               54.617.527        111.490.445

      Other comprehensive income to net of tax

20.   Financial assets available for sale                                                             (7.094.362)           (12.805)

90.   Profit (losses) on defined benefit plans                                                          (431.295)         (119.168)

110   Total other comprehensive income after tax                                                      (7.525.656)         (131.973)

120   Comprehensive income (item 10110)                                                               47.091.871        111.358.472

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 components cost and
revenue 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 utility / loss for the period, expressed in more broadly, the
wealth generated / used by operations also include those components of corporate cost and revenue, for the period, which are
accounted for in equity and therefore gave rise to changes in valuation reserves.




70
Statement of changes in equity
Handling the December 31, 2009
(In euro)



                                                                                                                                                                                                                          Changes during the year
                                                                                                                        Allocation of profit

                                                                                                                       Previous
                                                            AS AMENDED                                                                                                                                                   Operations on the W orld Net
                                      Balance at               balances       Balance at                                                                                                                                                                                                                                           Equity at
                                                                                                                                                                                                                                                                                                     Profitability
                                      31/12/2 008             Opening         01/01/2009                                                       Variation of ni                                                                                                                                                            3 1/12/200 9
                                                                                                                         Dividends and                                                                          Distribution                 Change                                                  Overall the
                                                                                                                                                  reserves             Emission             Purchase                                                        Derivatives
                                                                                                                                                                                                                                                                                                     31/12/2009
                                                                                                      Reserves                other                                  ve new shares       actions pro Prie       extraordinary           Tools             Rie prop actions       Stock options
                                                                                                                           destinations                                                                         the dividend           capital


Capital:


           a) Ordinary shares              442 .000 .0 00       X                    442 .00 0 .000      -                        X                   X                              -          -                    X                   X                       X                    X                   X             442.000.000

           b) other Actium ni                           -       X                                 -      -                        X                   X                              -          -                    X                   X                       X                    X                   X                                -


S p re zzidie vrap or I will mis s                      -       X                                 -      -                        X                   X                              -          X                    X                   X                       X                    X                   X                                -


Reserves:                                   361.978 .126                  -          361.9 78 .126       5.6 34 .442                                             -                   -                      -                   -                                            -                   -                      3 6 7 . 6 12 . 56 8


           a) profit                        3 28 .225.947                 -           328 .225.947       5.6 34 .442              X                   -                              -          -                               -        X                       X                    X                   X             333.860.389


           b) other                          33 .752 .179                 -            33 .752 .179                -              X                   -                              -          X                               -        X                       -                               -        X                3 3 . 75 2 . 179


R is being valued and rve az I ne:         12 2 .931.60 1                 -          122 .931.6 01       X                        X                   X                   X                     X                    X                   X                       X                    X                  (7.525.656)     115 . 4 0 5 . 9 4 5


S t nt Rumeo idic it ap ale                             -       X                                 -      X                        X                   X                   X                     X                    X                                -          X                    X                   X                                -


A z ni I p ro p Rie                                     -       X                                 -      X                        X                   X                              -                      -        X                   X                       X                    X                   X                                -


U t ile (P and a rd en) diese rc io         111.4 90 .445                 -           111.490 .445     (5.63 4 .442)        (105.856 .003)            X                   X                     X                    X                   X                       X                    X                  54 .6 17.527       54 . 6 17 . 52 7


P removal at nio N ect                   1,038 .40 0 .172                 -         1.038 .400 .172                -        (105.856 .003)                       -                   -                      -                   -                     -                      -                   -       47.0 91.871    9 79 . 6 3 6 . 0 4 0




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




                                                                                                                                                                                                                                                                                                                                               71
Statement of changes in equity
Handling the December 31, 2008
(In euro)


                                                                                                                                                                                                                                                V Ariaz I ni de ll'e if rc io
                                                                                                                            A llo c it az I         ris since last oese at rc io
                                                                                                                                                p lease re nt
                                                                                                                                                                                                                                           Op and I raz ni s ul p nio removal at will tto
                                                                        M od if ic ald
                                      Es nz is you and 3 1                                   Es is you and nz 0 1                                                                                                                                                                                                                R edd en t à CALLS
                                                                        ides as ap rt                                                                                                                                                                                                                                                                  P removal at will tto nio
                                      / 12 / 2 0 0 7                    and ura              /01/2008                                                                                        V Ariaz I NI                                                                                                                         ss co mp any VAT
                                                                                                                                                                and i nd d Ivid                                                                                                                                                                       al          3 1 / 12 / 2 0 0 8
                                                                                                                                                                                                            Emis s I will   Purchase              D is t rib I do uz               Change          Derivatives
                                                                                                                                                                                               reserves                                                                                                            Stock                exercise
                                                                                                                                   reserves                          re alt                                   new ve         actions                rao st rd inari                 Tools          sup p ro Rie
                                                                                                                                                                                                                                                                                                                  options                2008
                                                                                                                                                                 dest Inaz I ni                               actions         own                     Dividends               December it ap ale     actions




Capital:                                       442.000.000                    X                  442.000.000                                         -                                                                  -              -                                                                                                                    442.000.000


           a) Shares or rdinarie               4       42 .000 .00 0                                 44 2 .0 00 .000                                                                                                                                                                                                                                             4 42 .0 00 .000


           b) other actions                                                                                             -                                                                                                                                                                                                                                                           -


S p re zzidie vrap or I will mis s                                                                                  -                                                                                                                                                                                                                                                           -


Reserves:                                 392          . 3 2 4 . 74 8                -           3 9 2 . 3 2 4 . 74 8                 4 . 6 73 . 3 78                                   (35.020.000)                    -              -                              -                                     -               -                                 3 6 1. 9 78 . 12 6


           a) profit                                   358 .572 .569                     -            358 .572 .569                      4 .673 .3 78                                    (35.02 0 .0 00)                                                                  -                                                                                        328 .225.9 47


           b) other                                     33 .752 .179                     -              33 .752 .179                                    -                                                                                                                 -                                                                                         33 .752 .179


R is being valued and rve az I do                  12 3 . 0 6 3 . 574                             12 3 . 0 6 3 . 574                                                                                                                                                                                                               ( 13 1.   9 73 )           12 2 . 9 3 1. 6 0 1


S t nt Rumeo idic it ap ale                                                                                         -                                                                                                                                                                                                                                                           -


A z ni I p ro p Rie                                                                                                 -                                                                                                                                                                                                                                                           -


U t ile (P and a rd en) diese rc io                93.444.381                        -             93.444.381                      ( 4 . 6 73 . 3 78 )           ( 8 8 . 771. 0 0 3 )                                                                                                                                           111. 4 9 0   .445              111. 4 9 0 . 4 4 5


P removal at nio N ect                   1. 0 50       . 8 3 2 . 70 3                          1. 0 50 . 8 3 2 . 70 3                                -           ( 8 8 . 771. 0 0 3 )   (35.020.000)                    -              -                              -                     -               -               -   111. 3 58    . 4 72        1. 0 3 8 . 4 0 0 . 172



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




72
Cash Flow
(In euro)



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


A. ACTIVITY 'OPERATIVE
1. Management (+/-)                                                                                                                         124.706.972     208.596.952
- Operating income (-)                                                                                                                       54.617.527     111.490.445
- Gains / losses on investments held for trading and asset / liability
financial assets at fair value (- /)                                                                                                          2.137.036        (754.358)
- Gains / losses on hedging activities (- /)                                                                                                 (3.018.778)      5.407.986
- Adjustments to / recoveries on impairment (/ -)                                                                                            42.365.081      39.802.121
- Adjustments / write-backs on intangible and tangible assets (-)                                                                             8.775.050       8.217.979
- Net provisions for risks and charges and other costs / income (-)                                                                          (5.768.435)      1.675.182
- Taxes not paid ()                                                                                                                          25.599.491      42.757.597
2. Cash generated from / used in financing activities (-)                                                                                   783.610.277    (315.576.279)
- Financial assets held for trading                                                                                                           8.619.094      16.920.089
 - Financial assets available for sale                                                                                                        8.180.067      (2.679.323)
- Due from banks:                                                                                                                           418.704.629    (579.039.927)
- Loans to customers                                                                                                                        319.923.847     173.459.637
- Other activities'                                                                                                                          28.182.640      75.763.245
3. Cash generated / absorbed by financial liabilities (-)                                                                                  (768.077.099)    249.228.592
- Due to banks                                                                                                                             (368.759.577)   (664.664.373)
- Due to customers                                                                                                                         (134.605.668)    428.091.512
- Securities issued                                                                                                                        (131.536.337)    610.663.733
- Pass.finanz.di trading                                                                                                                     (4.849.477)       (619.356)
- Other liabilities                                                                                                                        (128.326.040)   (124.242.924)
                                                                                               Net cash used in operating activities (-)    140.240.150     142.249.265
B. ACTIVITY 'INVESTMENT
1. Cash generated from (+)                                                                                                                   10.880.836       7.421.173
- Dividends received from investments                                                                                                        10.300.318       6.730.172
- Sales of att.materiali                                                                                                                        580.518         691.001
2. Cash absorbed by (-)                                                                                                                     (51.582.340)    (16.229.414)
- Purchases of investments                                                                                                                  (45.410.272)     (1.565.346)
- Purchases of att.materiali                                                                                                                 (6.160.273)    (14.607.000)
- Purchase of intangibles                                                                                                                       (11.795)        (57.068)
                                                                                               Net cash used in investing activities (-)    (40.701.504)     (8.808.241)
C. ACTIVITY 'OF FUNDING
- Distribution of dividends and other                                                                                                      (105.856.003)   (123.791.003)
                                                                                               Net cash used in financing activities (-)   (105.856.003)   (123.791.003)
LIQUIDITY 'Net cash ABSORBED IN                                                                                                              (6.317.357)      9.650.021




Legend: () generates (-) absorbed



Reconciliation of financial statements

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


Cash and cash equivalents at beginning of year                                                                                               59.263.906      49.613.885
Net liquidity generated / absorbed during the                                                                                                (6.317.357)      9.650.021
Cash and cash equivalents at the end of the year                                                                                             52.946.549      59.263.906




                                                                                                                                                                    73
     The Notes




74
The notes
The notes are divided into the following parts:

       1)     Part A - Accounting Policies
       2)     Part B - Balance Sheet
       3)     Part C - Income Statement
       4)     Part D - Comprehensive income
       5)     Part E - Information on risks and hedging policies
       6)     Part F - Information on capital
       7)     Part G - Business Combinations or business enterprise
       8)     Part H - Transactions with related parties
       9)     Part I - Share-based payments Equity-
       10)    Part L - Segment




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
Accounting Standards Board (IASB) and endorsed the date of preparation thereof and the relevant interpretations of the
Financial Reporting Interpretations Committee (IFRIC) 29.
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 independent auditors Ernst & Young SpA, pursuant to art. 155, D. Decree of 24
February 1998 58 and in execution of the resolution of 11 April 2007 which assigned the task to prepare the financial
statements for the year 2012.

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 perspective of business continuity and to impute costs and revenues under
the accrual thereof, without offsetting assets and liabilities, costs and revenues.
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,

29 See in this regard, the 'Directory 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 the events covered by them and by the year they become applicable.

                                                                                                                                                                                     75
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) 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 the correct definition, and related disclosure, the three levels of fair
value ("fair value hierarchy") introduced by IFRS 7.

During the preparation of this annual report have been taken into account the contents of the above mentioned document to
the specific sections of the notes dealing with these issues.
With specific reference to the informative 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 the 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 in the Circular of Bank of Italy 262/2005 as
amended by the First Update of November 18, 2009; they provide, as well as the amount at 31 December 2009, a similar
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 banking Circular in
order to incorporate the changes in the meantime the international accounting standards, to operate some rationalization of
the tables in the notes to the financial statements and incorporate some clarifications and explanations already provided to the
system with previous administrative messages 30.
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 within the same item.

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


GAAP
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 the budget for 2008.


30 The reference is to the following administrative messages: No
                                                             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. B.I. 262/05.

76
The accounting policies used are basically the application of the direct 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).




Section 3 Events after the balance sheet date
Territorial Operation Optimization
As stated in the Interim Report at September 30, 2009, Spatial optimization of the operation has provided the assignment of
n. 14 business units - consisting mainly of subsidiaries - including some of the network banks UBI and the subsequent
reorganization of the shareholding structure.
The above contributions have time to make legal effect from 25 January 2010 and therefore the accounting effects of the
operation in question during the fall 2010.
The operation optimization of land, made between entities subject to joint control will be accounted for in the accounts of
separate entities of the Group companies UBI, pursuant to the "Guidelines concerning Assirevi preliminary IFRS" (cd OPI),
there are the works of species within the scope of IFRS 3 "Business Combinations".

At December 31, 2009 the operation of local optimization does not find representation under IFRS 5 Non-current assets held
for sale and discontinued operations "as:
     •     it is realized on the sale and the simultaneous acquisition of businesses: the application of IFRS 5 does not allow to
           represent in their entirety these aspects would give evidence only as to the disposal of the branches;
     •     the transaction is made between entities subject to common control, and it is therefore considered more appropriate
           representation of the operation according to the logic of the group.

For all the above is considered a more indicative comprehensive information which is given in the Directors' Report under
"Other information".


Section 4: Other issues
Preparation of the consolidated
The Bank, while holding a controlling interest, does not prepare consolidated financial statements as being part of the UBI
Banca Group's budget is drawn up according to law by the parent company.


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.
Applying these principles, unable to accurately assess some elements of the budget, sometimes involves the adoption of
estimates and assumptions that can also significantly affect the values of the balance sheet and income statement.
Reiterating that the use of reasonable estimates is an essential part of preparing the budget, indicate below the budget items
where it is most significant use of estimates and assumptions:
     •     credit rating;
     •     valuation of financial assets not quoted in active markets;


                                                                                                                              77
     •    evaluation of intangible assets and investments;
     •    quantification of the provisions for risks and charges;
     •    quantification of deferred tax assets;
     •    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. Any change in estimate is applied prospectively, and
thereby impact on the income statement for 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 announced in the budget to 31 December 2008, in 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 historical series
calculated on the aggregate total of the network banks. While this method provides an accurate representation of the overall
credit risk inherent in the loan portfolio, it does not yet adequately reflect the specific characteristics of individual network
banks. Indeed in the current context of UBI 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 the 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 "Interest and similar income" for the detection of
the overdraft charges, totaling EUR 10.1 million, and under "Commission income" for the collection of income attributable
to the Commission for making available funds with regard to the second half of 2009, totaling EUR 7.3 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 under Circular Banca d ' 262/05 Italian, were not subject to


78
and therefore attributable to the reclassification of overdraft charges, equal to 31 December 2008 to EUR 21.6 million, is
integral place in the "Interest and similar income".


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

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, to monitor the process of approval of IFRS 9 and deepen the
content introduced by other recent documents that 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 in method of determining the 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), resulting in the inclusion of losses only in the event of the occurrence of the loss. The proposed new
model, called expected loss provides for the recognition of expected losses over the entire duration of the contract. In the
initial stage, these expected losses are taken into account in determining the effective interest rate of, at subsequent stages of
evaluation, any change in expected cash flows (than at the time of registration of the asset) leads to 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 until the event occurs.




                                                                                                                               79
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 31, which supersedes all previous Regulations 32 and combines them
into one text the principles described in those regulations.

     IAS / IFRS                                                 ACCOUNTING                                            APPROVAL

                                                                                                                Reg 1274/2008, Reg
 IAS 1                  Presentation of Financial Statements                                                    53/2009, Reg. 70/2009,
                                                                                                                Reg 494/2009

 IAS 2                  Inventories                                                                             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                                      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



31 Entry into force by publication in the Official Journal of the European Union No
                                                                                      320, November 29, 2008.

32 Ref. Regulation (EC) No
                             1725/2003 and subsequent amending acts.

80
                                                                                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      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       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




                                                                                                           81
               Rights to Interests arising from Decommissioning, Restoration and
 IFRIC 5                                                                                      Reg 1126/2008
               environmental remediation

 IFRIC 6       Liabilities arising from Participating in a Specific Market - Waste            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 activity in the service of a defined 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
 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                                      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-
 SIC 21                                                                                       Reg 1126/2008
               depreciable

               Income Taxes - Changes in the tax status of a company or                       Reg 1126/2008, Reg
 SIC 25
               its shareholders                                                               1274/2008

               Evaluating the Substance of Transactions Involving the Legal Form of
 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 information of the interim period, the following is a brief
description of new accounting standards published or modified after the adoption, which occurred in the fourth quarter of
certain EU regulations.




82
The Reg EC No 1136/2009 33 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 34 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 35 introduces the interpretation IFRIC 18 "Transfers of assets from customers" whose goal is to
provide clarification and guidance on the accounting for sales of tangible items that companies receive from their customers
and must 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 36, amend the provisions of IFRS 7 "Financial Instruments: Disclosures' and IFRS 4" Insurance
Contracts "introduces the need to provide more detail information on the measurement of fair value and liquidity risk relating
to financial Financial.
In particular, the Regulation in question introduces disclosure requirements relating to the so-called "hierarchy of fair value
of financial instruments, whose purpose is to reflect the relevance of the data used in making assessments. The fair value
hierarchy consists of the following levels:
                - quoted prices (unadjusted) in active markets for identical assets
                - data input other than quoted prices in Level 1 that are observable for the entity or liability, either directly (as

      y      Level 3 - input data for asset or liability that are not based on observable market data (unobservable inputs).

The Reg EC No 1171/2009 37 amends 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 hybrid is reclassified out of the category of financial assets held for trading with the impact of
changes in value recognized in earnings. The new provisions provide that if at the time of the reclassification of the entity is
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 negotiation. "

The Reg EC No 1293/2009 38, 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, by integrating in par. 11 is now scheduled to be entitled to acquire a specified number of
equity instruments of the entity 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 the 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.

33 Adoption of 2010 required.
34 Adoption of 2010 required.
35 Adoption of 2010 required.
36 Adoption compulsory from 2009.
37 Adoption compulsory from 2009.
Adopt mandatory 38 year 2011.


                                                                                                                                 83
A.2 - 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
Definition of financial assets and liabilities held for trading
An asset or 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 at 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
assumption 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 from trading 80.
The fair value of derivatives is determined by applying the methods described in the section "assessment criteria".

Embedded derivative financial instruments
An "embedded derivative" component of a hybrid (combined) contract that also includes a primary derivative, 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.


84
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
After initial recognition, financial instruments in question are valued at fair value and the variations observed in the income
statement under "Net income from trading 80. 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 period or the reference 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 of activity of the issuer and rating class, if available - and option pricing models. 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 the same property. The result of the sale of assets or financial liabilities held for trading are recognized in the
income statement under "Net income from trading 80.




                                                                                                                                     85
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 short, by the sector "Financial assets held for trading" under these circumstances the carrying value is equal
to the fair value of 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
accrued interest (as indicated by the overall amortized cost) and charged to equity under "Revaluation reserves 130" changes
in fair value, except for impairment losses, until the financial asset is derecognised, when 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 to verify 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. In this case we shall, without further analysis,
accounting for impairment loss. In the case of impairment of less 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 impairment to the
accounting profit without any economic 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.




86
In the presence of impairment, the cumulative variation, previously recorded in the shareholders' voice in the
aforementioned, is recognized directly in the income statement under "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 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 asset.
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 zeroing 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.


                                                                                                                                  87
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.
Membership in this category may also result from reclassification of the Fund "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 corresponds to the amount paid including
transaction costs and income directly attributable to it and determinable 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 the activity detected at the time of transfer, shall be
employed as a new measure of the amortized cost of the asset. In the case of credits and loans to non-market conditions, the
initial fair value is calculated by applying the appropriate valuation techniques illustrated below, in such circumstances, the
difference between the fair value so determined and the amount paid is directly attributed in the income statement under
interest.
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 to ready.

Evaluation criteria
The loans and receivables are measured at amortized cost using the effective interest method.
The amortized cost of an asset or financial liability is the amount at which it was measured at initial recognition less principal
repayments, plus or minus the total using the effective interest method of any difference between the initial amount and the
maturity amount and minus any reduction (due to an impairment or recoverability).
The effective interest method is a method of calculating the amortized cost of an asset or financial 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, the prepayment option to purchase or similar), but should not be
considered for future losses on credits. 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 is found to have any 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 difficulty of the issuer or obligor;
     b) a breach of contract, such a default or failure to pay interest or principal;




88
     c)   the fact that funding for economic or legal reasons relating to the financial difficulties of the beneficiary, the
          beneficiary extending a concession that the lender would not otherwise consider;
     d)   the likelihood that the recipient state financial reorganization;
     e)   the disappearance of an active market for that financial asset because of financial difficulties;
     f)   of observable data indicating that there is 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 the 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 the box office estimates, the timing of
payments and the discount rate to apply. The amount of loss is equal to the difference between the asset 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 adopting, 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 historical series
calculated on the aggregate total of the network banks. While this method provides an accurate representation of the overall
credit risk inherent in the loan portfolio, it does not yet adequately reflect the specific characteristics of individual network
banks. Indeed in the current context of the 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 loss 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 discounting calculated at the
time of the adjustment in value. In the case of collective evaluation, any adjustments

                                                                                                                                89
additional write-backs are recalculated or differentially with respect to each claim in performing the valuation date.


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 objective is to counteract adverse changes in fair value of the hedged asset or liability;

Derivatives entered into with counterparties outside the company are 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:
          the top cover there is a formal designation and documentation of the hedging relationship, the objectives of the
          companies in risk management and strategy for undertaking the hedge. This documentation includes identification
          of the hedging instrument, the item or operation covered, 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 covered or cash
          flows attributable to the hedged risk;
                  is expected to be highly effective;



90
     •    the hedged forecast transaction, for cash flow hedges, it is highly probable and presents an exposure to variations in
          cash flows that could affect profit or loss;
     •    hedge effectiveness can be measured reliably;
     •    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 the beginning and during his
life changes in the fair value or cash flows of the hedged item, refer 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 result falls within a
range between 80% and 125%.
Assessing the effectiveness of the cover is at an early stage through the execution of the test and perspective when preparing
the annual budget by running the backtesting, the outcome of this test justifies the application of hedge accounting as
demonstrates its effectiveness pending.
On a monthly basis is also conducted testing on a cumulative basis, which aims 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."
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 from hedging activities 90;
     •    the gain or loss on the hedged item attributable to the hedged risk adjusts the carrying value of the hedged item and
          is recognized immediately, regardless of the category of the asset or liability being hedged, 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 asset or liability being hedged are measured at amortized cost, 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 force 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.




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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 subject of coverage;
    •    identification of the risk of interest rate hedges;
    •    designation of hedging instruments;
    •    determining 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 from hedging
in 1990 and in the balance sheet item" 90 Fair value of financial assets in hedged "or" 70 Fair value of financial liabilities
hedged. " Changes in fair value recorded on the hedging instrument are recognized in the income statement under "90 Net
hedging and active in the balance sheet in" Hedging 80 "or heading of the balance sheet liability" 60 Derivatives of coverage.
"


Investments
Definition
Subsidiaries
Is defined as "controlled" society in which the Bank exercises control. This condition exists when it has the power to
determine, directly or indirectly, to govern the financial and management company 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. 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

92
shall estimate the recoverable amount of the investment, taking into account the present value of future cash flows that may
be generated, including the value of its ultimate disposal. 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.


Tangible assets
Assets used in the definition
They are called "Operating assets" tangible assets held for use for the performance of social activity and the use of which has
been assumed over a greater period of time.

Definition of 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 to be distinguished from held for use by the owner to the fact that cash flows largely
differentiated from other assets held by the Bank.

Recompressed are among the tangible assets (for operational use and held for investment), even those registered as a result of
financial leasing contracts, although the legal title remains in the same head lessor company.

Criteria for inclusion
Tangible assets, equipment or not, are recognized initially at an amount equal to the cost (in "110 Materials Activities"),
including 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 performed on the activity are recorded 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 Tangible assets", which refers to increased activity
          when used under a finance lease or under the item "150 Other assets" when referring to assets used to effect of a
          lease.

The cost of a tangible asset is recorded as an asset if, and only if:
     •    it is probable that future economic benefits associated with the asset will flow to the company;
     •    the cost of the asset can be reliably determined.



                                                                                                                             93
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 the amount you
would normally expected from 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 his life profit), is distributed systematically over the useful life of the
material used as criteria for straight-line depreciation 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 the activity is used by the company or,
     •    the number of production or similar units that the company expects to derive from the asset itself.

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 the 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 . Therefore, depreciation does
not cease when the asset becomes idle or is retired from active use unless the asset is 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 the asset 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 annual or interim financial statements are checked for the possible existence of signs that demonstrate the value of
the depreciation of an asset. The loss resulting from the comparison between the carrying value of the material and the lower
recovery value. The latter is the greater of fair value, net of any costs to sell and its value in use ie 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 any subsequent recovery in 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:
            seller and buyer are independent parties;

94
     •    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;
     •    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 an analysis of the
location of the property, taking into account the type of construction, the state of preservation and new construction cost 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 the 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 results in the recognition of the depreciation 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 material, equal to the difference
between the estimated net


                                                                                                                           95
and transfer the asset, are recognized in the income statement under "240 Profit (loss) on disposal of investments".




Intangible assets
Definition
E 'defined as an intangible non-monetary, identifiable, without physical substance and used in the performance 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 enterprise as a result of past events and the assumption that
through its use economic benefits to the company. The Bank controls an asset if it has the power to take advantage of future
economic benefits arising from the resource and can also restrict access to such benefits by a third party.
The future economic benefits flowing from an intangible asset may include revenue from the sale of products or services,
cost savings or other benefits resulting from the asset by the Bank.

An intangible asset is recognized if, and only if:
     a) is likely to flow to the expected future economic benefits attributable to the asset;
     b) the cost 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.
The degree of certainty attached to the flow of economic benefits attributable to the asset is valued on the basis of
information sources available at the time of initial recognition, giving greater weight to external sources of information.
The Bank sees goodwill and intangible assets to long-term utility software.

Intangible assets with finite useful life
E 'defined a finite useful life activity for which it is possible to estimate the time limit within which it is expected the
production of the related economic benefits.
Among the members are considered intangible assets with finite useful lives to the software.

Intangible assets with indefinite useful lives
It 'called an indefinite useful life activity that 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 come from having already planned future expenditure in the course of time going to restore their standard of
performance, extending the useful life.
Goodwill is considered an indefinite useful life.

Criteria for inclusion
The activity, as recorded in the balance sheet item "120 Intangible Assets", is stated at cost and the cost after initial
recognition are capitalized only if they are able to generate future economic benefits and if those costs can be determined and
attributed to 'work reliably.
The cost of an intangible asset includes:


96
      •        the purchase price including any taxes and taxes on purchases is not recoverable after deducting trade discounts
               and rebates;
      •        any direct cost to the asset into use.


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

The depreciation process begins when the asset is available for use and ceases at the date when 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 ' activities (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 intends to complete the intangible asset and use or sell;
     c) the company's ability to use or sell the intangible asset.

At each annual or interim financial statements are checked for the existence of any impairment losses on intangible assets.
These losses are the difference between the carrying value of 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 'start-up that are
posted to the "230 Impairment of goodwill."

ZIP
It defines the difference between starting the acquisition cost and the fair value of assets and liabilities acquired as part of a
business combination that consists of the union of companies or businesses into one company 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 businesses separate reference to the acquis. When a company acquires a group of assets or net assets that
constitute a business, it allocates the cost of the 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 a
subsidiary of the parent and the acquis.

All business combinations are accounted for using the purchase method (so-called purchase method).
The method involves the following steps:
     a) identifying an acquirer (the acquirer is the combining entity that obtains control company to other companies or
          businesses aggregate);
     b) determining the cost of the business;

          97
     c)   allocating, at the acquisition date, the cost of the business to the assets acquired and liabilities and contingent
          liabilities assumed.

With the purchase method, the buyer determines the cost of a business combination as the sum total:
    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;
    b) of any costs directly attributable to the business.

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, goodwill arising from such transactions, is entered:
     a) a balance sheet asset item 120 in the case of finding 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 goodwill acquired in a business combination as assets;
     b) measure that goodwill at its cost, as is the excess of the cost of the business combination over the acquirer's interest
          in the fair value of assets, liabilities and contingent liabilities.

Goodwill acquired in a business combination represents a payment made by in anticipation of future economic benefits from
assets that can not be individually identified and separately recognized.
After initial recognition, the buyer evaluates goodwill acquired in a business combination at cost less accumulated
impairment losses.
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 described above in accounting principle.
The principle states that an asset (including goodwill) has been reduced in value when the carrying amount exceeds the
recoverable amount, the latter understood as the higher of fair value less costs to sell and value in use, defined by par. 6 of
IAS 36.
For the purpose of impairment testing of goodwill must be allocated to 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 acquirer's interest in the fair value (fair value) in cash and assets, liabilities and contingent liabilities exceeds the cost of
the business, the acquirer:
      a) review the identification and measurement of assets, liabilities and contingent liabilities and the determination of
          the cost of;
      b) notes immediately in profit or loss any excess remaining after re-measurement.

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



98
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 by the lessee under a finance lease.

Criteria for inclusion
The liabilities in question are recorded in the corresponding time upon receipt of the sums collected or issuing debt securities.
The value that is entered is equal to its fair value including any costs and income directly attributable to the transaction 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 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. Any 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". Any
subsequent 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."

Current tax assets and liabilities
Current tax for current and prior periods, to the extent that they have not been paid, are recorded as a liability due to any
excess is recognized as an asset.

Liabilities (assets) Current tax for the current 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 period in which the assets are realized or liabilities are settled.

Deferred 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
     •     from the initial recognition of an asset or liability in a transaction that:
           y is not a business combination and
           y at the time of the transaction affects neither accounting nor taxable profit.


                                                                                                                               99
Deferred taxes are not calculated in relation to higher asset values under suspension of taxes relating to investments in stocks
and tax suspension as it 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 liability in a transaction that:
          y not a business combination and
          y 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 to the period when the asset is realized or the liability is settled tax revenue, taking into account the
resulting tax legislation by measures currently in force.

Deferred tax assets and deferred tax liabilities are cleared in the year:
    •     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 settle the obligation will require 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
A provision is recognized in the accounts if and only if:




100
              is likely to settle the obligation will be required in an outflow of resources embodying economic benefits, and
       •      can be a reliable estimate of the amount arising from the fulfillment of the obligation.

The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the
balance sheet date and reflects risks and uncertainties that inevitably characterize a number of facts and circumstances. The
amount of the present value of expenses that are supposed to be necessary to settle the obligation where the effect of the
present value is material. Future events that may affect the amount required to settle the obligation 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 any litigation.

Cancellation Policy
The provision is unlikely to be reversed when it becomes an outflow of resources embodying economic benefits to settle 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 using the foreign currency
amount the spot exchange rate between the functional currency and the foreign currency the transaction date.

Evaluation criteria
At each balance sheet date:
     a) 39 monetary items in foreign currencies are translated using the closing rate;
     b) 40 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 the 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 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.




39 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 an obligation to pay a fixed or determinable number of units of currency.

40 See, on the contrary, the references to the items "monetary".


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More information
- Provisions for guarantees and commitments
Provisions on individual and collective basis to estimate the potential payments associated with the recruitment 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 the 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 Funds and defined-benefit criteria for inclusion
The indemnities entered is regarded as a defined benefit plan and as such requires the determination of the value of the bond
on the basis of actuarial assumptions and your liability on a discounted basis as the debt can be paid off significantly after the
employees render the related employee.
The amount recognized 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 since the time of the expected date of
liquidation. The application of this method involves the projection of future payments based on historical analysis

102
statistics and the demographic curve and updating of such financial flows based on a market interest rate. The rate used for
discounting purposes 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 ordinary activities of an enterprise when those inflows result
in increases in equity other than increases resulting by the contribution of 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 a service provision can be estimated reliably when all the following conditions are met:
     •    the amount of revenue can be measured reliably;
     •    it is probable that the economic benefits of the transaction will flow to the company;
     •    the stage of completion of the transaction at the balance sheet date can be reliably measured;
     •    costs incurred for the transaction and the costs to complete can be reliably calculated.

Revenues recorded against the provision of services are recognized consistent with the phase completes.
Revenue is recognized when it is probable that the economic benefits of the transaction will flow from 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 the use by others of the company's assets that generate interest or dividends are recognized when:
        it is probable that the economic benefits associated with the transaction will flow to the enterprise;


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

     103
- 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 and determinable 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
refer to the 'Claims and Loans ".
Impairment losses are recognized in the income statement when they are discovered.




104
A.3 - Information on fair value

Section A.3
Information on fair value
A.3.1 Transfers between portfolios
Were not made to the portfolio of financial assets reclassified from category to category valued at fair value measured
at amortized cost.


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 that 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 be accessed at 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 the application of a technical evaluation, the value resulting 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.




     105
A.3.2.1 Wallets accounting breakdown levels of the fair value



                                                                              31/12/200 9                                                                                   31/12/2008
 Activities / P as s iv ity finances Rie you
 mis ura                                          al
                      fair value
                                                       Level   1             Level       2                     Level     3                    Level   1                    Level     2                Level    3


1. Financial assets held for trading                           11.074                        36.210                              -                     14.243                                43.798                   -

2. Financial assets at fair value                                    -                              -                            -                           -                                    -                   -

3. Financial assets available for sale                             356                         315                        11.246                             -                                 555              19.610

4. Hedging derivatives                                               -                       55.903                              -                           -                               55.516                   -

                                             Total             11.43 0                   92 .42 8                        11.24 6                      14 .24 3                       99 .86 9                  19 .6 10

1. financial liabilities held for trading                            -                       37.596                              -                           -                               42.446                   -

2. financial liabilities measured at fair value                      -                              -                            -                           -                                    -                   -

3. Hedging derivatives                                               -                       25.138                              -                           -                               26.487                   -

                                             Total                   -                   62 .73 4                                -                           -                       68 .93 3                         -




A.3.2.2 Annual changes in financial assets at fair value (Level 3)


                                                                                                                       A CTIVITIES 'R IE F IN AN AUNT



                                                                   held           pe r                                                                           ity bit dis pe r
                                                                                                         evaluated     ir is to be syphilis                                                            co pe rtura
                                                                    I go aunt uncle                                                                                 sale



1. Es is you start them NZE                                                                      -                                            -                              19 .6 10                                     -

2 . Increases                                                                                    -                                            -                               9 .3 9 9                                    -

2.1. Purchases                                                                                       -                                        -                                     119                                   -

2.2. P ro imputed rent to:                                                                           -                                        -                                  9.280                                    -

2.2.1. Co nt no Eco nomic                                                                            -                                        -                                  8.944                                    -

         - Including capital gains                                                                   -                                        -                                          -                                -

2.2.2. P atrimo equity method                                                 X                                           X                                                         336                                   -

2.3. Tras injuries from other levels                                                                 -                                        -                                          -                                -

2.4. Other variations on the rise ni                                                                 -                                        -                                          -                                -

3 . Decreases                                                                                    -                                            -                            (17 .7 6 3 )                                   -

3.1.Vendite                                                                                          -                                        -                                (9.987)                                    -

3.2. Refunds                                                                                         -                                        -                                          -                                -

3.3. P oss charged to:                                                                               -                                        -                                    (59)                                   -

3.3.1. Co nt no Eco nomic                                                                            -                                        -                                          -                                -

         - Of which depreciation                                                                     -                                        -                                          -                                -

3.3.2. P atrimo equity method                                                 X                                           X                                                        (59)                                   -

3.4. Tras injuries at other levels                                                                   -                                        -                                          -                                -

3.5. Other variations ni diminution in its                                                           -                                        -                                (7.717)                                    -

4 . R im fine them for it NZE                                                                    -                                            -                              11.2 4 6                                     -




A.3.2.3 Annual changes in financial liabilities at fair value (Level 3)

For the Bank there is no such case.




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



106
The information referred to in paragraph 28 of IFRS 7 is that any differences between the transaction price and the value
obtained by using valuation techniques that emerge from the initial recognition of a financial instrument and not detected
immediately income statement in accordance with the provisions of paragraphs AG76 and AG76A of 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.




     107
Part B - Balance Sheet

ACTIVE

Section 1                                     Cash and cash equivalents - Item 10 -

1.1 Cash and cash equivalents: breakdown


                                                       3 1 / 12 / 2 0 0 9            3 1 / 12 / 2 0 0 8

a) Cash                                                                     52.947                        59.264

b) Depo free pres s ites know Central Banks                                      -                             -
Total                                                                5 2 .9 4 7                     5 9 .2 6 4




108
Section 2 Financial assets held for trading - Item 20 -

2.1 Financial assets held for trading: product breakdown


                                                                           3 1 / 12 / 2 0 0 9                                                 3 1 / 12 / 2 0 0 8
                       Vo ci / it should be re

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

A . By activating ity pe rcassa

1. Tito them debt                                             11.052                            1                 -             14.229                                 7                   -

    Tito them 1.1 S tructure                                           -                        1                 -                       -                            7                   -

    1.2 Other tito them of debt                               11.052                              -               -             14.229                                 -                   -

1. Tito them capital                                               21                             -               -                  14                                -                   -

3. Quo you for OIC. R                                                  -                          -               -                       -                            -                   -

4. Funding                                                             -                          -               -                       -                            -                   -

    4.1. P ro nti co ntro-term assets                                  -                          -               -                       -                            -                   -

    4.2 Other                                                          -                          -               -                       -                            -                   -

Total A                                                     11.0 7 3                            1                 -           14 .2 4 3                            7                   -

B . Derivatives

1. Financial derivatives:                                              1             3 6 .2 0 9                   -                   -                  4 3 .7 9 1                    -

    1.1 for trading                                                    1                 36.209                   -                       -                   43.791                       -

    1.2. co co n nnes is the fair value or ptio n                      -                          -               -                       -                            -                   -

    1.3 Other                                                          -                          -               -                       -                            -                   -

2. Credit derivatives:                                                 -                          -               -                       -                            -                   -

    2.1 for trading                                                    -                          -               -                       -                            -                   -

    2.2 co co n nnes is the fair value or ptio n                       -                          -               -                       -                            -                   -

    2.3 Other                                                          -                          -               -                       -                            -                   -

Total B                                                            1                 3 6 .2 0 9                   -                   -                  4 3 .7 9 1                    -

Total A+B                                                   11.0 7 4                  3 6 .2 10                   -           14 .2 4 3                 4 3 .7 9 8                     -


Cash assets: the reduction referred mainly to the                                   point "1.2 Other debt securities" is due to approximately 2.7
repayment of a license for                                                          million euro.




          109
2.2 Financial assets held for trading: breakdown by debtors / issuers



                                    Vo ci / it should be re                                   3 1 / 12 / 2 0 0 9                                       3 1 / 12 / 2 0 0 8



A . A CTIVITIES 'P ER BOX

1.Tito them in the framework of                                                                                         11.0 5 3                                            14 .2 3 6

      a) Go Governments and Central Banks                                                                                 11.051                                                  11.528

      b) Other public entities                                                                                                    -                                                       -

      c) Banks                                                                                                                   1                                                 2.703

      d) Other issuers                                                                                                           1                                                        5

2 . Tito to them about the pita                                                                                                 21                                                       14

      a) Banks                                                                                                                   5                                                        4

      b) Other issuers:                                                                                                         16                                                       10

              - S businesses and as icurazio ni                                                                                   -                                                       -

              - I know society financial                                                                                          -                                                       -

              - N business and no financial                                                                                     16                                                       10

              - Other                                                                                                             -                                                       -

3 . Quo O you. IC. R.                                                                                                            -                                                        -

4 . F ina me nt Energy Systems                                                                                                   -                                                        -

      a) Go Governments and central banks                                                                                         -                                                       -

      b) Other public entities                                                                                                    -                                                       -

      c) Banks                                                                                                                    -                                                       -

      d) Other I ns subject                                                                                                       -                                                       -

Total A                                                                                                                 11.0 7 4                                            14 .2 5 0

B . S TR UM EN D ER VAT TI TI

      a) Banks

             - Fair value                                                                                                     2.519                                                8.708

      b) Customers

             - Fair value                                                                                                 33.691                                                  35.083

Total B                                                                                                                3 6 .2 10                                            4 3 .7 9 1

                                                              Total   (A +B )                                         4 7 .2 8 4                                            5 8 .0 4 1




There are no equity securities issued by entities in distress or stranding.


2.3 Financial assets held for trading: annual changes


                                                                                   Debt                            Equities           Mutual fund shares   Funding                            Total


Initial                                                                           14.236                                 14                            -                             -                 14.250
B. Increases                                                                     546.479                                 53                            -                             -                546.532
B.1       Purchases                                                              545.330                                 40                            -                             -                545.370
B.2       Positive changes in fair value                                              95                                  7                            -                             -                   102
B.3       Other changes                                                            1.054                                  6                            -                             -                  1.060
C. Decreases                                                                    (549.662)                              (46)                            -                             -           (549.708)
C.1       Sales                                                                 (546.381)                              (37)                            -                             -           (546.418)
C.2       Refunds                                                                 (3.101)                                 -                            -                             -                (3.101)
C.3       Negative changes in fair value                                              (3)                                 -                            -                             -                    (3)
C.4       Transfers to other portfolios                                                   -                               -                            -                             -                      -

C.5       Other changes                                                             (177)                               (9)                            -                             -                  (186)
D. Closing balance                                                                11.053                                 21                            -                             -                 11.074




110
Section 3 Financial assets at fair value - Item 30 -

For the Bank there is no such case.




     111
Section 4 Financial assets available for sale - Item 40 -

4.1 Financial assets available for sale: breakdown


                                                                                              3 1 / 12 / 2 0 0 9                                                                    3 1 / 12 / 2 0 0 8
                       Vo ci / it should be re

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


1. Tito them debt                                                                       -                                 -                      1.266                          -                              -                1.289

    Tito them 1.1 S tructure                                                            -                                 -                           -                         -                              -                      -

    1.2 Other tito them of debt                                                         -                                 -                      1.266                          -                              -                1.289

2. Tito them capital                                                               356                                    -                      8.534                          -                              -               16.876

    2.1 Measured at fair value                                                     356                                    -                      2.227                          -                              -               10.687

    Measured at 2.2 s to co                                                             -                                 -                      6.307                          -                              -                6.189

3. Quo you for OIC. R.                                                                  -                           315                               -                         -                         555                         -

4. Funding                                                                              -                                 -                      1.446                          -                              -                1.445

                                                 Total                            356                              3 15                     11.2 4 6                        -                            555               19 .6 10




4.2 Financial assets available for sale: breakdown by debtors / issuers




                                            Vo ci / it should be re                                                           3 1 / 12 / 2 0 0 9                      3 1 / 12 / 2 0 0 8




1.Tito them in the framework of                                                                                                                    1.2 6 6                                 1.2 8 9

     a) Go Governments and Central Banks                                                                                                                  -                                          -

     b) Other public entities                                                                                                                             -                                          -

     c) Banks                                                                                                                                             -                                          -

     d) Other issuers                                                                                                                                1.266                                   1.289

2 . Tito to them about the pita                                                                                                                    8 .8 9 0                            16 .8 7 6

     a) Banks                                                                                                                                        1.824                                   1.824

     b) Other issuers:                                                                                                                               7.066                                 15.052

             - S businesses and as icurazio ni                                                                                                            -                                          -

             - I know society financial                                                                                                              5.420                                   5.362

             - N business and no financial                                                                                                           1.646                                   9.690

             - Other                                                                                                                                      -                                          -

3 . Quo O you. IC. R.                                                                                                                                 3 15                                  555

4 . F ina me nt Energy Systems                                                                                                                     1.4 4 6                                 1.4 4 5

     a) Go Governments and central banks                                                                                                                  -                                          -

     b) Other public entities                                                                                                                             -                                          -

     c) Banks                                                                                                                                             -                                          -

     d) Other I ns subject                                                                                                                           1.446                                   1.445

                                                                                            Total                                                  11.9 17                             2 0 .16 5




Equity securities comprise shares acquired upon conversion of part of an 'outstanding loans restructured with a nominal value
of 431 thousand euro, and written down to 127 thousand euro.




4.3 Financial assets available for sale to customers with specific

112
Have not been put in place hedging of financial assets available for sale.


4.4 Financial assets available for sale: annual changes


                                                       Debt             Equities    Mutual fund shares   Funding       Total


Initial                                                 1.289             16.876                   555       1.445              20.165
B. Increases                                                  -            9.882                     -             1             9.883
B.1       Purchases                                           -              602                     -             -               602
B.2       Positive changes in fair value                      -              336                     -             -               336
B.3       Write-backs                                         -                 -                    -             -                  -
   - Through profit or loss                                   -     X                                -             -                  -
   - Shareholders' equity                                     -                 -                    -             -                  -
B.4       Transfers from other portfolios                     -                 -                    -             -                  -
B.5       Other changes                                       -            8.944                     -             1             8.945
C. Decreases                                             (23)           (17.868)                 (240)             -           (18.131)
C.1       Sales                                               -          (9.988)                     -             -            (9.988)
C.2       Refunds                                             -                 -                 (21)             -               (21)
C.3       Negative changes in fair value                      -              (59)                (219)             -             (278)
C.4       Write-downs for impairment                          -            (127)                     -             -             (127)
   - Through profit or loss                                   -            (127)                     -             -             (127)
   - Shareholders' equity                                     -                 -                    -             -                  -
C.5       Transfers to other portfolios                       -                 -                    -             -                  -
C.6       Other changes                                  (23)            (7.694)                     -             -            (7.717)
D. Closing balance                                      1.266              8.890                   315       1.446              11.917




            113
Section 5 Financial assets held to maturity - Item 50 -

For the Bank there is no such case.




114
Section 6                                 Due from banks - Item 60 -

6.1 Due to banks: product breakdown



                                          Type lo g ia or uncle ni pe ra / va ri                                        3 1 / 12 / 2 0 0 9            3 1 / 12 / 2 0 0 8



A . C re ve rs or fingers         ba n h C ntra them

1. Iti s Depo sides win                                                                                                                           -                              -

2. Res Erva Obligation ria                                                                                                                        -                              -

3. P ro nti co ntro-term assets                                                                                                                   -                              -

4. Other                                                                                                                                          -                              -

B . C re ve rs or fingers         banks

1. Co nti co rrenti and deposits iti s free                                                                                              630.943                            48.737

2. Iti s Depo sides win                                                                                                                  394.384                           436.780

3. Other loans                                                                                                                           558.652                      1.505.010

    3.1 P ro nti co ntro-term assets                                                                                                     337.099                      1.212.423

    3.2 Financial Leas ing                                                                                                                        -                              -

    3.3 Other                                                                                                                            221.553                           292.587

4. Tito them debt                                                                                                                            48.053                         60.210

    Tito them 4.1 S tructure                                                                                                                      -                              -

    4.2 Other tito them of debt                                                                                                              48.053                         60.210

                                                                                   To ta (va king of bilateral n / I)              1.6 3 2 .0 3 2                2 .0 5 0 .7 3 7
                                                                                            To ta (fa ir is syphilis)              1.6 3 2 .8 5 3                2 .0 5 0 .7 3 7




In Loans to Banks there are impaired.

This item includes:
                 "Deposits" for 190 million euro for the new Group policy aimed at structural balance as at 31 December 2008
                 amounted to EUR 275 million, now reduced as a result of a deposit of EUR 85 million expired in July 2009 and no
                 renewed;
       •         "Repos" for about 337 million euro, of transactions entered into solely concerned with the parent company is
                 closely related to PCT collection made with customers.

The item "deposits" includes the mandatory reserve paid indirectly, amount to euro 104.9 million euro.


6.2 Loans to banks covered by specific

There are no loans to banks covered by specific.


6.3 Financial leasing
Have not been put into leases with banks.




                                                                                                                                                                              115
Section 7 Receivables from customers - Item 70 -

7.1 Loans to customers: product breakdown


                                                                                                                                                              Total                                                                   Total

                                Type lo g ia or uncle ni pe ra / va ri                                                                                3 1 / 12 / 2 0 0 9                                                  3 1 / 12 / 2 0 0 8


                                                                                                                             B or nis                                 D you and me rio ra             B or nis                                D you and me rio ra


1. Co nti co rrenti                                                                                                                          1.569.536                                    62.205                     1.700.373                                        42.101

2. P ro nti co ntro-term assets                                                                                                                           -                                     -                                 -                                         -

3. Mortgages                                                                                                                                 4.098.210                                   178.403                     3.972.667                                    117.602

4. Credit cards, pressure or titi pers ces s I ni tions and the fifth                                                                               76.300                                  4.686                      114.559                                         4.397

5. Leas ing financial                                                                                                                                     -                                     -                                 -                                         -

6. Factoring                                                                                                                                              -                                     -                                 -                                         -

7. More or Peraza ni                                                                                                                         1.249.177                                    39.933                     1.654.552                                        33.673

8. Tito them debt                                                                                                                                         -                                     -                                 -                                         -

     Tito them 8.1 S tructure                                                                                                                             -                                     -                                 -                                         -

     8.2 Other tito them of debt                                                                                                                          -                                     -                                 -                                         -
                                                                         (It should be the king of bilateral n
                                                               Total                                       / I)                       6 .9 9 3 .2 2 3                                2 8 5 .2 2 7                7 .4 4 2 .15 1                               19 7 .7 7 3
                                                                         To ta (fa ir goes lue                )                       7 .2 0 2 .8 9 6                         2 7 9 .0 4 2 .2 6 6                7 .7 0 5 .0 4 1                              19 3 .4 8 5


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

The item "loans" includes EUR 697 million (of which 4.3 million of impaired assets) as collateral for emissions covered
bonds made by the parent company. For more details see the specific section.


7.2 Loans to customers: breakdown by debtors / issuers


                                                                                                                                                 Total                                                                            Total

                           Type lo g ia or uncle ni pe ra / va ri                                                                       3 1 / 12 / 2 0 0 9                                                               3 1 / 12 / 2 0 0 8


                                                                                                                  B or nis                                    D you and me rio ra                   B or nis                                    D you and me rio ra


1. Tito them in the framework of                                                                                                                -                                           -                                 -                                                 -

a) Governments                                                                                                                                  -                                           -                                 -                                                 -

b) Other public entities                                                                                                                        -                                           -                                 -                                                 -

c) Other issuers                                                                                                                                -                                           -                                 -                                                 -

     - N business and no financial                                                                                                              -                                           -                                 -                                                 -

     - Business and financial                                                                                                                   -                                           -                                 -                                                 -

     - As s icurazio ni                                                                                                                         -                                           -                                 -                                                 -

     - Other                                                                                                                                    -                                           -                                 -                                                 -

    2 . F ina me nt ve rs or Energy Systems:                                                                                      6.993.223                                         285.227                         7.442.152                                          197.773

a) Governments                                                                                                                          15.175                                              -                           32.191                                                  -

b) Other public entities                                                                                                            240.714                                                 -                         202.044                                                   -

c) Other I ns subject                                                                                                             6.737.334                                         285.227                         7.207.917                                          197.773

     - N business and no financial                                                                                                 4.115.931                                        187.298                         4.491.825                                          118.074

     - Business and financial                                                                                                       235.449                                              380                          405.107                                             252

     - As s icurazio ni                                                                                                                         -                                           -                                 -                                                 -

     - Other                                                                                                                      2.385.954                                           97.549                        2.310.985                                           79.447

                                                                                     Total                                    6 .9 9 3 .2 2 3                                    2 8 5 .2 2 7                    7 .4 4 2 .15 1                                  19 7 .7 7 3




7.3 Loans to customers covered by specific

116
                                                  Type lo g ia or uncle ni pe ra / va ri   3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8


1. URPOSE credits or co pecification s coverage of the fair value:

        a) ris tas mark of interest to know whether                                                             233.056                        318.813

        b) exchange-res trailer                                                                                       -                               -

        c) Credit-res trailer                                                                                         -                               -

     d) other risks                                                                                                   -                               -

2. URPOSE credits or co pecification s coverage of the financial flow is:

        a) ris tas mark of interest to know whether                                                                   -                               -

        b) exchange-res trailer                                                                                       -                               -

        c) more                                                                                                       -                               -

Total                                                                                                    2 3 3 .0 5 6                    3 18 .8 13




7.4 Financial leasing
Have not been put into leases with customers.




          117
Section 8 Hedging derivatives - Item 80

8.1 Hedging derivatives: breakdown by type of coverage and levels


                                                       FV 3 1 / 12 / 2 0 0 9                           VN                                   FV 3 1 / 12 / 2 0 0 8                                VN


                                              L1               L2                          L3       3 1 / 12 / 2 0 0 9         L1                   L2                          L3           3 1 / 12 / 2 0 0 8


A . D and to rev you re fine Energy Systems        -                     5 5 .9 0 3             -              1.7 5 2 .18 0        -                           5 5 .5 16            -                     1.19 4 .2 2 8

    1) Fair value                                  -                           55.903           -                 1.752.180             -                           55.516               -                        1.194.228

    2) Financial flow is                           -                                   -        -                          -            -                                   -            -                                   -

    3) INVES timenti teri es                       -                                   -        -                          -            -                                   -            -                                   -

B . Rev D and c re a ti tutions                    -                               -            -                          -        -                                   -            -                                   -

    1) Fair value                                  -                                   -        -                          -            -                                   -            -                                   -

    2) Financial flow is                           -                                   -        -                          -            -                                   -            -                                   -

                                   Total           -                     5 5 .9 0 3             -              1.7 5 2 .18 0        -                           5 5 .5 16            -                     1.19 4 .2 2 8




118
8.2 Hedging derivatives: breakdown by hedged portfolio and type of coverage


                                                                                                         F air Value                                                                                    F lus is Finanz iari


     Raz ni op and I / hate Tip                                                            S pec if ic                                                                                                                                           Inve st ime nt
             coverage                                                                                                                                                                                                                               Foreign
                                                                                                                                                                      General                    S pec if ic               General
                                      Risk          of             Risk       of            Risk of                    Risk          of
                                                                                                                                                  More risk
                                         rate                        exchange               Credit                       price

1. Financial assets avail onib ili
                                                               -                       -                         -                            -                   -         X                                          -             X                     X
p er the vend ita
2 . Credits                                                    -                       -                         -               X                                -         X                                          -             X                     X
3 . Financial assets of ethene
                                                X                                      -                         -               X                                -         X                                          -             X                     X
until the maturity enza
4 . Portfolio                                   X                                  X                          X                               X                   X               1.772                                X                     -             X

5, op Other Erazo ni                                           -                       -                         -                            -                   -                          -                         -                     -                        -

To t his A tt à CALLS                                      -                       -                         -                            -                   -                 1. 772                             -                     -                        -

1. Financial liabilities                              54 .131                          -                         -               X                                -         X                                          -             X                     X

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

To t his as s P à CALLS                             54 . 13 1                      -                         -                            -                   -                          -                         -                     -                        -

1. Forecast transactions                        X                        X                      X                                X                      X                   X                                          -             X                     X
2 . Po rtafo Council activities and
                                                X                        X                      X                                X                      X                                    -            X                                  -                        -
p financial liabilities




                                                                                                                                                                                                                                                                          119
Section 9 Fair value of financial assets in hedged - Item 90 -
9.1 Fair value of hedged assets: breakdown by hedged portfolio



          A de u g i ng to be the king ity co lle By activating pe rte      / Values           3 1 / 12 / 2 0 0 9              3 1 / 12 / 2 0 0 8



1. A bit of g u me nt s or itiv

1.1 of s pecific rtafo the bit:                                                                                     8.666                            12.387

     a) loans                                                                                                       8.666                            12.387

     b) financial assets available for sale dis bit                                                                     -                                 -

1.2 co mples s ivo                                                                                                      -                                 -

2 . A de u g i ng it or ga tiv

2.1 of the s pecific bit rtafo                                                                                          -                                 -

     a) loans                                                                                                           -                                 -

     b) financial assets available for sale dis bit                                                                     -                                 -

2.2 co mples s ivo                                                                                                      -                                 -

Total                                                                                                           8 .6 6 6                        12 .3 8 7




9.2 Activities of the hedged                                                           rate risk                            interest



                                              By activating ity co pe rte                      3 1 / 12 / 2 0 0 9              3 1 / 12 / 2 0 0 8


1. Credits                                                                                                      439.329                             195.783

2. Financial assets available for sale dis bit                                                                          -                                 -

3. Portfolio                                                                                                            -                                 -
Total                                                                                                       4 3 9 .3 2 9                      19 5 .7 8 3




120
Section 10 Investments - Page 100 -

10.1 Equity investments in subsidiaries, jointly controlled or under significant influence: information on shareholders'
equity


                                                                                                 Quote       of
                                           D and no m ina ni uncle                   See
                                                                                                   pa rte c ipa uncle%


A . Im pre seco you ntro lla           in exc lus iv v ia a (*)



Banco di San Gio rgio SpA                                                Geno goes                                       57,33

Geser A in SP Liquidazine                                                Cuneo                                             95

UBI SYSTEMS AND SERVICES SCpA                                            Bres cia                                         2,96



B . Im pre ntro lla him in you do co mo ng iunto



C. im pre Seso tto bit s te            to influence the nza no te vo




(*) Are including investments in group companies even if the minority.




       121
10.2 Equity investments in subsidiaries, jointly controlled or under significant influence: accounting information


                                                                                                                                                                    Equity
                               D and no m ina ni                                             Total           Ta R ic avi to them
                               uncle                                                                                                     Profit   (Eg rdita)         net                   Value   Budget
                                                                                  By activating or                   (*)
                                                                                                                                                                     (**)


A . Im pre seco you ntro lla                  in exc lus iv v ia a

Banco di San Gio rgio SpA                                                                      2.613.716                   64.819                       1.934                182.316                    140.279

Geser SpA SETTLEMENT                                                                                   36                     (11)                       (32)                  (293)                              -

UBI Sis themes and Services SCpA                                                                 214.047                       680                              -             52.076                        1.565



B. im pre seco ntro lla mo do you in                             joint

                                                                              0                          -                           -                          -                      -                          -

C . Im pre Seso tto bit s te                  to influence the nza no te vo

                                                                              0                          -                           -                          -                      -                          -

Total                                                                                      2 .8 2 7 .7 9 9              6 5 .4 8 8                    1.9 0 2           2 3 4 .0 9 9                 14 1.8 4 4


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




122
10.3 Equity investments: annual changes


                                                                Total                           Total
                      Them to us at C / C you go Rie
                                                        3 1 / 12 / 2 0 0 9               3 1 / 12 / 2 0 0 8


A . Es is you start them NZE                                            9 6 .4 3 5                            9 4 .8 6 9

B . Increases                                                                45.410                                1.565

B .1 Purchases                                                               45.410                             1.5 6 5

B .2 recovery and value re                                                           -                                 -

B .3 revaluation ni                                                                  -                                 -

B .4 Other variations ni                                                             -                                 -

C . Decreases                                                                        -                                     -

.1 C Sales                                                                           -                                 -

C .2 value adjustments re                                                            -                                 -

C .3 Other variations ni                                                             -                                 -

D. R im fine them for it NZE                                            14 1.8 4 5                            9 6 .4 3 4

E. R iv a luta uncle ni ta to them                                                   -                                     -

F. R and h ttific them to ta                                                         -                                 -




10.4 Commitments relating to investments in subsidiaries

There are no commitments relating to equity investments in subsidiaries.


10.5 Commitments relating to equity investments in companies under joint control

There are no commitments related to investments in companies under joint control.


10.6 Commitments relating to investments in companies under significant influence

There are no commitments related to investments in companies under significant influence.




       123
Section 11 Tangible assets - Item 110 -

11.1 Tangible assets: breakdown of assets carried at cost

In 2009 have been identified and duly recorded on the buildings and land held for investment and reclassified in the
following tables.



                                           By activating eng / va ri          3 1 / 12 / 2 0 0 9            3 1 / 12 / 2 0 0 8


A . By activating ness to us or the functional na

    1.1 of pro Prie TY                                                                       9 0 .7 7 2                   2 4 5 .8 2 4

    a) land                                                                                        49.094                        168.049

    b) made                                                                                        22.154                         56.238

    c) furniture                                                                                    5.203                          5.769

    d) Electrical Nici                                                                              4.647                          5.519

    e) other                                                                                        9.674                         10.249

    1.2 ac quis ite        ing as in the thin stream Energy Systems                                     -                             -

    a) land                                                                                             -                              -

    b) made                                                                                             -                              -

    c) furniture                                                                                        -                              -

    d) Electrical Nici                                                                                  -                              -

    e) other                                                                                            -                              -

Total A                                                                                      9 0 .7 7 2                   2 4 5 .8 2 4

B . By activating ity de te nute   purposes         of tim es and inv nt

    2 .1 pro Prie TY                                                                        15 1.8 8 0                                -

    a) land                                                                                    118.696                                 -

    b) made                                                                                        33.184                              -

    2 .2 ac quis ite        ing as in the thin stream Energy Systems                                    -                             -

    a) land                                                                                             -                              -

    b) made                                                                                             -                              -

Total B                                                                                     15 1.8 8 0                                -
To ta (AB)                                                                                 2 4 2 .6 5 2                   2 4 5 .8 2 4




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.




124
11.3 Property and equipment used in operations: annual changes


                                                                                                                                               Plants
                                                                           Land             Buildings           Furniture                                          O THERE                Total
                                                                                                                                        and the nic ttro

A . Es is NZE you start them the rde                                         19 0 .5 0 7          7 1.9 2 6             2 2 .6 6 3                  2 9 .12 2                4 4 .9 5 6     3 5 9 .17 4
A.1 Ni reduction of value to those re net                                       (22.458)           (15.688)                 (16.894)                 (23.603)                 (34.707)     (113 .3 5 0 )
A .2 Es NZE is you start them they tte                                       16 8 .0 4 9         5 6 .2 3 8                  5 .7 6 9                 5 .5 19                10 .2 4 9      2 4 5 .8 2 4
B . Increases                                                                           -               12 6                   525                    1.6 6 5                 2 .5 8 9            4 .9 0 5
B .1 Purchases                                                                          -                126                     525                       1.665                 2.588            4 .9 0 4
B .2 Expenditures and capitalized miles Rie                                             -                   -                       -                          -                      -                  -
B .3 Camera and value of re                                                             -                   -                       -                          -                      -                  -
B .4 Variations ni s itive bit of fair value:                                           -                   -                       -                          -                      -                  -
    a) Net international investment nio                                                 -                   -                       -                          -                      -                  -
    b) no co nt eco nomic                                                               -                   -                       -                          -                      -                  -
B .5 Differences bit s itive exchange                                                   -                   -                       -                          -                      -                  -
B .6 Tras injuries from real estate held as co Bili little INVES timento                -                   -                       -                          -                      -                  -
B .7 Other variations ni                                                                -                   -                       -                          -                      1                  1
C . Decreases                                                               (118 .9 5 5 )       (3 4 .2 10 )                (1.0 9 1)              (2 .5 3 7 )               (3 .16 4 )   (15 9 .9 5 7 )
C .1 Sales                                                                              -                   -                       -                      (580)                    (1)           (5 8 1)
C .2 Depreciation                                                                       -               (964)                (1.052)                  (1.916)                  (3.147)       (7 .0 7 9 )
C .3 Value adjustments to re dete improvement attributed to:                       (267)                 (90)                    (39)                          -                      -            (3 9 6 )
    a) Net international investment nio                                                 -                   -                       -                          -                      -                  -
    b) no co nt eco nomic                                                          (267)                 (90)                    (39)                          -                      -           (3 9 6 )
C .4 Ni negative variation of fair value:                                               -                   -                       -                          -                      -                  -
    a) Net international investment nio                                                 -                   -                       -                          -                      -                  -
    b) no co nt eco nomic                                                               -                   -                       -                          -                      -                  -
C .5 Negative exchange differences                                                      -                   -                       -                          -                      -                  -
C .6 Tras injury to:                                                          (118.688)            (33.156)                         -                          -                      -    (15 1.8 4 4 )
    a) tangible assets held as co bit of INVES timento                        (118.688)            (33.156)                         -                          -                      -     (15 1.8 4 4 )
    b) assets being dis mis s I will                                                    -                   -                       -                          -                      -                  -
C .7 Other variations ni                                                                -                   -                       -                       (41)                   (16)             (5 7 )
D. R im fine NZE them to do it tte                                            4 9 .0 9 4          2 2 .15 4                  5 .2 0 3                 4 .6 4 7                9 .6 7 4        9 0 .7 7 2
D.1 Ni reduction of value to those re net                                       (53.356)           (38.818)                 (17.946)                 (20.778)                 (37.827)    (16 8 .7 2 5 )
D .2 A im at the RDE will do fine NZE                                        10 2 .4 5 0         6 0 .9 7 2             2 3 .14 9                   2 5 .4 2 5               4 7 .5 0 1     2 5 9 .4 9 7
E. Evaluation method to the co s                                                        -                   -                       -                          -                      -                  -




       125
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             Depreciation                                      Useful life

       Land for buildings                                                 NO                                           Unamortized
       Real Estate - Properties for lease                                YES                                      On the basis of expertise
       Lifting equipment, and weighing                                   YES                                            160 months
       Light construction and shelving                                   YES                                            120 months
       Furniture and other furnishings                                   YES                                            120 months
       Furniture and office machinery                                    YES                                             100 mesi
       ATM Equipment                                                     YES                                             96 months
       Safes and armor prefabricated                                     YES                                             80 months
       Machinery, appliances and other equipment                         YES                                             80 months
       Various machinery, furniture and fixtures                         YES                                             80 months
       Counters with armored or armored glass                            YES                                             60 months
       Personal Computer                                                 YES                                             60 months
       Equipment table                                                   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
       Motor Transport                                                   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

                                                                                             3 1 / 12 / 2 0 0 9


                                                                               Land                                  Buildings


A . Es is you start them NZE                                                                    -                                       -

A.1 reduction of its value to those re net                                                          -                                   -

A .3 Es NZE is you start them they tte                                                          -                                       -

B . Increases                                                                         118 .6 9 6                            3 4 .4 3 3

B .1 Acquis you:                                                                                    -                              1.270

       B .1.1 Acquis you                                                                            -                              1.270

       B .1.2 op aggregazio any of its corporate                                                    -                                   -

B .2 miles Rie expenditures and capitalized                                                         -                                   -

B .3 ni little variation in the fair value s itive                                                  -                                   -

B .4 recovery and value re                                                                          -                                   -

Exchange differences on some B .5 s itive                                                           -                                   -

B .6 Tras injury Bili to us by real estate or operating tional                           118.688                                  33.158

B .7 Other variations ni                                                                            8                                  5

C . Decreases                                                                                   -                            (1.2 4 9 )

.1 C Sales                                                                                          -                                   -

C .2 Ammo rtamenti                                                                                  -                             (1.249)

C .3 variations ni net negative fair value                                                          -                                   -

C .4 value adjustments to re dete improvement                                                       -                                   -

C .5 Negative exchange differences                                                                  -                                   -

Tras injuries to other C .6 rtafo the bit of activity:                                              -                                   -

       a) immo Bili to us or functional tional                                                      -                                   -

       b) activities no n co rrenti being dis mis s I will                                          -                                   -

C .7 Other variations ni                                                                            -                                   -

D. R im ina them to do NZE F                                                           118 .6 9 6                            3 3 .18 4

D.1 reduction of its value to those re net                                               (30.898)                                (17.167)

D .2 A im at the RDE will do fine NZE                                                 14 9 .5 9 4                            5 0 .3 5 1

E. Evaluation method to Fair Value                                                       116.127                                  94.588


126
11.5 Commitments for the purchase of tangible assets (IAS 16/74.c)


                                   By activating
                                   ity              /   Va ri                  3 1 / 12 / 2 0 0 9          3 1 / 12 / 2 0 0 8


A . By activating ness to us or the functional na

1.1 As per property:                                                                                 639                        50

    - Land                                                                                             -                         -

    - Buildings                                                                                        -                         -

    - Furniture                                                                                      210                         -

    - Electrical                                                                                     429                        50

    - Other                                                                                            -                         -

1.2 In the financial cazio it:                                                                         -                         -

    - Land                                                                                             -                         -

    - Buildings                                                                                        -                         -

    - Furniture                                                                                        -                         -

    - Electrical cal                                                                                   -                         -

    - Other                                                                                            -                         -

Total A                                                                                             639                         50

B . By activating ity de te nute   purposes             of tim es and inv nt

2.1 As per property:                                                                                   -                         -

    - Land                                                                                             -                         -

    - Buildings                                                                                        -                         -

2.2 In the financial cazio it:                                                                         -                         -

    - Land                                                                                             -                         -

    - Buildings                                                                                        -                         -

Total B                                                                                                -                         -
Total A+B                                                                                           639                         50




The above commitments are within normal planning activities of the company, it's orders not yet executed on furniture and
equipment, which will be delivered in early 2010.




                                                                                                                                     127
Section 12                                      Intangible assets - Item 120 -

12.1 Intangible assets: breakdown by type of activity


                                                                                          3 1 / 12 / 2 0 0 9                                              3 1 / 12 / 2 0 0 8
                                     By activating eng / should be the re

                                                                            D ura ta de end                    D ura tion inde finite       D ura ta de end                    D ura tion inde finite


A.1 Goodwill                                                                  X                                              8 1.0 5 0        X                                               8 1.0 5 0

A.2 Other intangible assets                                                              10 0                                           -                 13 9                                          -

A.2.1 Assets valued at co s to:                                                           100                                           -                     139                                       -

    a) Internally generated intangible assets                                                 -                                         -                       -                                       -

    b) Other activities                                                                   100                                           -                     139                                       -

A.2.2 Assets valued at fair value                                                             -                                         -                       -                                       -

    a) Internally generated intangible assets                                                 -                                         -                       -                                       -

    b) Other activities                                                                       -                                         -                       -                                       -

Total                                                                                    10 0                                8 1.0 5 0                    13 9                                8 1.0 5 0


Other intangible assets represent the software with limited duration of the foreign branch that is being amortized over 60
months.
The goodwill recorded in the budget include:
    •   acquisition of nine branches from Banco di Brescia to 6.214 million euro;
    •   Reacquisition post-merger of four subsidiaries previously transferred to the Cassa di Risparmio di Tortona to 2.811
        million euro;
    •   incorporation of the Cassa di Risparmio di Tortona to 71.789 million euro;
    •   right to rent for the foreign branch of Nice for 236 000 euro;

and represents the payment made in advance by the Bank for future economic benefits arising from the business
combination.
As stated by IAS 36, a company must assess at each balance sheet date whether there is any indication that an asset may be
impaired in value (impairment test). For 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, has suffered an impairment loss when its
carrying amount exceeds its recoverable amount ie the higher of its fair value less costs to sell and its value in use.
The goodwill has been allocated the entire legal entity which the total cash-generating units. Therefore the verification of
impairment of goodwill in the balance sheet at 31 December 2009 was performed comparing the use value of the complex
business (which is a single cash generating unit) with its book value.
The estimated value in use was carried out according to the actualization of income flows, as calculated in 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 Bank:


                                       Loans to customers                                         CAGR% 2009-2012
                                       RWA Jobs                                                   CAGR% 2009-2012
                                       Direct deposits                                            CAGR% 2009-2012
                                       Asset management                                           CAGR% 2009-2012
                                       Assets under custody                                       CAGR% 2009-2012


                                       Operating Income                                           CAGR% 2009-2012
                                       Net commission income                                      CAGR% 2009-2012
                                       Operating costs                                            CAGR% 2009-2012
                                       Cost income                                                CAGR% 2009-2012
                                       Cost of credit                                             CAGR% 2009-2012

128
                    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 long-term growth rates 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 made it possible to detect the absence of impairment losses
(impairment losses) of goodwill in the balance sheet of the Bank at December 31, 2009.




     129
12.2 Intangible assets: annual changes

                                                                                 O
                                                                                 THERE activities                im ria but you li: ge ne ra you       O         By activating ness im ria but you li: n
                                                                                                                                                       THERE                                addition to
                                                                                                            inte rna me nt
                                                                A vv i ng                                                                                                                                      3 1 / 12 / 2 0 0 9

                                                                                          D ura ta de end                 D ura tion inde finite           D ura ta de end            D ura tion inde finite


A . Es is you start them NZE                                                 -                               -                                     -                         1                             -                           1

A.1 reduction of its value to those re net                             81.050                                -                                     -                     138                               -                 8 1.18 8

A .2 Es NZE is you start them they tte                               8 1.0 5 0                               -                                     -                   13 9                                -                 8 1.18 9

B . Increases                                                                -                               -                                     -                     12                                -                         12

B .1 Purchases                                                               -                               -                                     -                         12                            -                         12

B .2 Increases in internal intangible assets                X                                                -                                     -                          -                            -                            -

B .3 recovery and value re                                  X                                                -                                     -                          -                            -                            -

B .4 ni little variation in the fair value s itive                                                           -                                     -                          -                            -                            -

    - A heritage equity method                              X                                                -                                     -                          -                            -                            -

    - To co nt no eco nomic                                 X                                                -                                     -                          -                            -                            -

B .5 Exchange differences bit s itive                                        -                               -                                     -                          -                            -                            -

B .6 Other variations ni                                                     -                               -                                     -                          -                            -                            -

C . Decreases                                                                -                               -                                     -                   (5 1)                               -                        (5 1)

.1 C Sales                                                                   -                               -                                     -                          -                            -                            -

C .2 value adjustments re                                                    -                               -                                     -                    (51)                               -                        (5 1)

    - Ammo rtamenti                                         X                                                -                                     -                    (51)                               -                        (5 1)

    - WRITEDOWNS                                                             -                               -                                     -                          -                            -                            -

         heritage equity method                             X                                                -                                     -                          -                            -                            -

         co nt no eco nomic                                                  -                               -                                     -                          -                            -                            -

C .3 ni variations of negative fair value                                                                    -                                     -                          -                            -                            -

    - A heritage equity method                              X                                                -                                     -                          -                            -                            -

    - To co nt no eco nomic                                 X                                                -                                     -                          -                            -                            -
C .4 n Tras no injuries to the activities being co rrenti
                                                                             -                               -                                     -                          -                            -                            -
I will mis s dis

C .5 Negative exchange differences                                           -                               -                                     -                          -                            -                            -

C .6 Other variations ni                                                     -                               -                                     -                          -                            -                            -

D. R im fine NZE them to do it tte                                   8 1.0 5 0                               -                                     -                   10 0                                -                 8 1.15 0

D.1 king to such net value                                                   -                               -                                     -                   (592)                               -                  (5 9 2 )

E. R im fine with it NZE them the rde                                8 1.0 5 0                               -                                     -                   692                                 -                8 1.7 4 2

F. Valiutazio it to the co s                                                 -                               -                                     -                          -                            -                            -




130
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.




     131
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


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

Im a bit s te NTIC ipa you Conco ntro rtita pa aco nt eco no m ic or                      14 0 .7 14                     4 2 .13 6                  12 7 .5 15                    3 8 .8 0 0

- Loans                                                                                         41.006                       11.277                     31.442                        8.647

- Financial instruments                                                                              -                                -                   2.068                         569

- Tangible assets                                                                                5.156                        1.318                       2.816                         898

- For those who res for ndi and blacks or                                                        9.947                        2.804                       9.760                       2.963

- Co ti s P ers or nal                                                                          12.565                        3.455                     11.475                        3.156

- Realignment goodwill ex CRT                                                                   68.657                       22.190                     68.657                       22.190

- Goodwill                                                                                       3.132                        1.012                              -                         -

- Value adjustments to the king his annual blacks                                                    -                                -                     799                         220

- Costs and representa entanza                                                                      87                           28                         226                           73

- Op tion s Trao rdinarie                                                                           77                           25                         174                           56

- Other minority re                                                                                 85                           26                          96                           29

Im a bit s te NTIC ipa you Conco ntro pa pa rtita to trim it or nio tto                       5 .0 8 8                     1.3 2 9                      9 .8 3 1                    2 .7 8 5

- Co ti s P ers or nal                                                                           4.445                        1.222                       6.072                       1.670

- Goodwill                                                                                           -                                -                   3.394                       1.097

- Securities AFS                                                                                  643                           107                         365                           18

Total          im a bit s te c NTIC ipa you is upright                                    14 5 .8 0 2                    4 3 .4 6 5                13 7 .3 4 6                    4 1.5 8 4

Total          im a bit s te NTIC is c ipa you rev ible                                   14 5 .8 0 2                    4 3 .4 6 5                13 7 .3 4 6                    4 1.5 8 4




13.2 Deferred tax liabilities: breakdown



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


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

Im bit s te rite difference Conco ntro rtita pa aco nt eco no m ic or                     2 0 .8 5 5                     4 .6 3 5                  3 3 .3 0 3                      9 .8 16

- Financial instruments                                                                              -                                -                  1.015                          279

- Tangible assets                                                                               9.870                        1.660                      14.230                        4.640

- Goodwill                                                                                      1.170                          378                         585                          189

- P lus values installments                                                                       553                          166                         934                          283

- Co ti s P ers or nal                                                                          1.671                          460                       8.443                        2.322

- Other minority re                                                                                  2                            1                           2                            1

- Xxxxxxxxxxx                                                                                   7.588                        1.971                       8.094                        2.102

Im bit s te rite difference Conco ntro pa pa rtita to trim it or nio tto                        336                             21                            -                            -

- Evaluation method tito them dis little available for sale                                       336                            21                              -                         -

Total          im bit s te c difference rite is upright                                       2 1.19 1                   4 .6 5 6                  3 3 .3 0 3                      9 .8 16

- Differences in time and the determi Ranee eg clus it's you set the deferred                        -                                -                  7.694                          477

Total          im rite is little difference s te c rev ible                                   2 1.19 1                   4 .6 5 6                  4 0 .9 9 7                     10 .2 9 2




132
13.3 Changes in deferred tax assets (income statement)



                                                                                3 1 / 12 / 2 0 0 9              3 1 / 12 / 2 0 0 8


1. Im bit RTO begins                                                                           3 8 .8 0 0                        2 4 .3 19

2 . Increases                                                                                        8 .3 17                    2 8 .5 6 0

2.1 Impo s te assets recognized in Ex ercizio                                                         6.466                           28.560

         a) relative to the previous example ercizi                                                     271                                 -

         b) do indemnities received the change of policy co ntabili                                        -                                -

         c) recovery and re value                                                                          -                                -

         d) other                                                                                     6.195                           28.560

    2.2 S you've set new or increased fis aliquo you drop                                                  -                                -

    2.3 Other increases                                                                               1.851                                 -

3 . Decreases                                                                                   (4 .9 8 1)                    (14 .0 7 9 )

    3.1 Impo s te assets reversed Ex ercizio                                                         (4.981)                         (14.079)

         a) turnarounds                                                                              (4.981)                         (14.079)

         b) s for evaluation ni know pravvenuta recoverable                                                -                                -

         c) change in policy co ntabili                                                                    -                                -

         d) other                                                                                          -                                -

    3.2 Reduction of ni fis aliquo you drop                                                                -                                -

    3.3 Other diminution ni                                                                                -                                -

4 . Im fine the little rto                                                                      4 2 .13 6                       3 8 .8 0 0




The amount referred to in section 2.3 "Other increases" represents the total deferred tax assets Creates a contra to
shareholders' equity until the year 2008 from Table 13.5
- See corresponding decrease in 3.3 "Other decreases" - who will find the actual repayment to income.


13.4 Changes in deferred taxes (income statement)



                                                                               3 1 / 12 / 2 0 0 9              3 1 / 12 / 2 0 0 8


1. Im bit RTO begins                                                                             9 .8 15                       2 3 .5 6 2

2 . Increases                                                                                         707                            1.10 2

2.1 S Deferred Ex set you ercizio                                                                       707                            1.102

    a) relative to the previous example ercizi                                                          518                              491

    b) do indemnities received the change of policy co ntabili                                             -                                -

    c) other                                                                                            189                              611

2.2 S you've set new or increased fis aliquo you drop                                                      -                                -

2.3 Other increases                                                                                        -                                -

2.4 Tion of its business op aggregazio                                                                     -                                -

3 . Decreases                                                                                 (5 .8 8 7 )                    (14 .8 4 9 )

3.1 S liabilities derecognised Ex set you ercizio                                                (5.887)                         (14.849)

    a) turnarounds                                                                               (5.887)                         (14.849)

    b) do indemnities received the change of policy co ntabili                                             -                                -

    c) other                                                                                               -                                -

3.2 Reduction of ni fis aliquo you drop                                                                    -                                -

3.3 Other diminution ni                                                                                    -                                -
4 . Im fine the little rto                                                                       4 .6 3 5                            9 .8 15




                                                                                                                                                133
13.5 Changes in deferred tax assets (shareholders' equity)



                                                                                 3 1 / 12 / 2 0 0 9                          3 1 / 12 / 2 0 0 8


1. Im bit RTO begins                                                                                2 .7 8 4                                      2 .5 6 9

2 . Increases                                                                                          396                                          300

2.1 S assets recognized in Ex set you ercizio                                                            396                                          285

    a) relative to the previous example ercizi                                                            33                                          255

    b) to give indemnities received mutely policy co ntabili                                                -                                            -

    c) other                                                                                             363                                            30

2.2 S you've set new or increased fis aliquo you drop                                                       -                                            -

2.3 Other increases                                                                                         -                                           15

3 . Decreases                                                                                       (1.8 5 1)                                       (8 5 )

3.1 S assets reversed Ex set you ercizio                                                                    -                                         (85)

    a) turnarounds                                                                                          -                                         (85)

    b) s for evaluation ni know pravvenuta recoverable                                                      -                                            -

    c) do indemnities received the change of policy co ntabili                                              -                                            -

    d) other                                                                                                -                                            -

3.2 Reduction of ni fis aliquo you drop                                                                     -                                            -

3.3 Other diminution ni                                                                               (1.851)                                            -

4 . Im fine the little rto                                                                            1.3 2 9                                     2 .7 8 4




The amount referred to in section 3.3 "Other decreases" represents the total deferred tax assets Creates a contra to
shareholders' equity until the year 2008 and transferred to Table 13.3 - see corresponding increase in section 2.3 "Other
increases" - who will find the actual repayment in the income statement.


13.6 Changes in deferred taxes (in return of equity)



                                                                    3 1 / 12 / 2 0 0 9                          3 1 / 12 / 2 0 0 8



1. Im bit RTO begins                                                                      477                                        457

2 . Increases                                                                                98                                       20

2.1 S Deferred Ex set you ercizio                                                             98                                           -

    a) relative to the previous example ercizi                                                  -                                          -

    b) do indemnities received the change of policy co ntabili                                  -                                          -

    c) other                                                                                  98                                           -

2.2 S you've set new or increased fis aliquo you drop                                           -                                          -

2.3 Other increases                                                                             -                                      20

2.4 Tion of its business op aggregazio                                                          -                                          -

3 . Decreases                                                                            (5 5 4 )                                        -

3.1 S liabilities derecognised Ex set you ercizio                                          (554)                                           -

    a) turnarounds                                                                         (554)                                           -

    b) do indemnities received the change of policy co ntabili                                  -                                          -

    c) other                                                                                    -                                          -

3.2 Reduction of its fixed aliquo you drop                                                      -                                          -

3.3 Other diminution ni                                                                         -                                          -

4 . Im fine the little rto                                                                   21                                      477




134
13.7 Other information



                                    Total                            Total
                             3 1 / 12 / 2 0 0 9               3 1 / 12 / 2 0 0 8


Acco nt ati on Fis co vers                        14.911                           16.252

Credit set s ta                                   13.613                            7.400

Withholding kr nt                                         -                                -

                                             2 8 .5 2 4                       2 3 .6 5 2




        135
Section 14 Non-current assets held for sale and related liabilities - Item 90 and Item 140 of
                liability -
14.1 Non-current assets held for sale: breakdown by type of activity


                                                                                                      3 1 / 12 / 2 0 0 9       3 1 / 12 / 2 0 0 8


A . S By activating ing or ness

A.1 Financial assets                                                                                                       -                         -

A.2 P artecipazio ni                                                                                                       -                         -

A.3, plant and equipment                                                                                                   -                        14

A.4 Intangible Assets                                                                                                      -                         -

A.5 Other no n co rrenti                                                                                                   -                         -

                                                                                          Total   A                        -                        14

B . By activating ity groups (or units and dis pe ra tiv messe)

B .1 Financial assets held for ziaizo deny it                                                                              -                         -

B .2 Financial assets at fair                                                                                              -                         -

B .3 Financial assets available for sale dis bit                                                                           -                         -

Held B .4 s ino s to every                                                                                                 -                         -

Loans to banks or B .5                                                                                                     -                         -

Loans and advances to customers or .6 B                                                                                    -                         -

B .7 P artecipazio ni                                                                                                      -                         -

B .8 Tangible assets                                                                                                       -                         -

B .9 Intangible Assets                                                                                                     -                         -

B .10 Other assets                                                                                                         -                         -

                                                                                          Total   B                        -                         -

C . P ass iv ity assoc ia you                ada ttiva ity no nco rre nts in st ia
I will dis m is s

C .1 Debts                                                                                                                 -                         -

C .2 Titles                                                                                                                -                         -

C .3 Other pas s CALLS                                                                                                     -                         -

                                                                                          Total   C                        -                         -

D. P ass iv ity assoc ia you                 By activating ag roup of ity in v ia    of
I will dis m is s

Amounts owed to banks or D.1                                                                                               -                         -

D.2 Amounts owed to customers or                                                                                           -                         -

D.3 Tito them in the circus it lazio                                                                                       -                         -

D.4 P as s CALLS financial trading                                                                                         -                         -

D.5 Invite them to financial as P s FV                                                                                     -                         -

D.6 Fo ndi                                                                                                                 -                         -

D.7 S other pas CALLS                                                                                                      -                         -
                                                                                          Total   D                        -                         -




136
Section 15                                 Other assets - Item 150 -

15.1 Other assets: breakdown


                                                                                 3 1 / 12 / 2 0 0 9            3 1 / 12 / 2 0 0 8


Mile Rie on immo's eligible third                                                                      1.840                         1.661

Other activities - co ns or lidato fis hauls                                                          23.905                        37.640

P traveling arthritis                                                                                  3.092                        14.244

Co mpetenze s are to be recessed                                                                      11.378                         4.836

Peraza scrap its currency in foreign exchange and some ni rtafo Council                                    -                           88

As s egni drawn on third parties                                                                         22                         17.923

P rs in co arthritis or rational it work                                                               4.899                          179
Receivables from tax authorities
or                                                                                                    11.903                        11.067

Other matches                                                                                         24.622                        28.958

TOTAL                                                                                             8 1.6 6 1                    116 .5 9 6




Deferred tax consolidation are the direct payments and tax credits 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 2,410 thousand euro.




        137
LIABILITIES

Section 1 Due to banks - Item 10 -

1.1 Due to banks: breakdown



                                         Type lo g ia or uncle ni pe ra / va ri                     3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8



1. D biti ve rs or          ba n ce ntra them h                                                                                -                              -

2 . D biti ve rs or         banks                                                                               303       .8 7 8               672       .6 3 7

    2.1 Co nti co rrenti and deposits iti s free                                                                         264.194                        285.539

    2.2 Iti s Depo sides win                                                                                              23.012                        369.944

    2.3 Funding                                                                                                           13.641                         12.985

         2.3.1 P ro nti co ntro pas s word there                                                                               -                              -

         2.3.2 Altri                                                                                                      13.641                         12.985

    2.4 Due to commitments to regain to pro pri s INSTRUMENTS nial heritage                                                    -                              -

    2.5 Other payables                                                                                                     3.031                          4.169

                                                                                         Total                  303       .8 7 8               672       .6 3 7

                                                                                  Ir F a V-lu and               303       .8 7 8               672       .6 3 7


"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.




138
Section 2                                              Deposits from customers - Item 20 -

2.1 Due to customers: product breakdown



                                                         Type lo g ia or uncle ni pe ra / va ri                3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8



1. Co nti co rrenti and deposits iti s free                                                                                    5.101.961                       4.365.775

2. Iti s Depo sides win                                                                                                              14.641                        17.642

3. Funding                                                                                                                          334.675                    1.198.901

    3.1 P ro nti co ntro pas s word there                                                                                           334.675                    1.198.901

    3.2 Other                                                                                                                             -                             -

4. Due to commitments to regain to pro pri s INSTRUMENTS nial heritage                                                                    -                             -

5. Other payables                                                                                                                    20.698                        24.262

                                                                                                       Total               5 .4 7 1.9 7 5              5 .6 0 6    .5 8 0

                                                                                                  Fair Value               5 .4 7 1.9 7 5              5 .6 0 6    .5 8 0


"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 Finance lease payables

Nono are due to customers for financial leases.




         139
Securities issued Section 3 - Page 30 -

3.1 Debt securities in issue: product breakdown


                                                                                   Total           3 1 / 12 / 2 0 0 9                                                                              Total            3 1 / 12 / 2 0 0 8



        Type lo g ia tito them / it should be re   Value                                                         Fair Value                               Value                                                                    Fair Value



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


A. Titles

        1. or bbligazio ni                                  2.443.748                          -                            2.441.886                 -                2.553.546                                 -                            2.554.360                            -

               1.1 S tructure                                 634.744                          -                                634.936               -                  660.389                                 -                               662.875                           -

                1.2 altre                                   1.809.004                          -                            1.806.950                 -                1.893.157                                 -                            1.891.485                            -

            2. other tito them                                  47.242                         -                                 47.242               -                    68.658                                -                                68.658                           -

                   2.1 s tutturati                                       -                     -                                      -               -                              -                           -                                         -                       -

                  2.2 altri                                     47.242                         -                                 47.242               -                    68.658                                -                                68.658                           -

                                           Total       2 .4 9 0 .9 9 0                     -                            2 .4 8 9 .12 8                -            2 .6 2 2 .2 0 4                              -                         2 .6 2 3 .0 18                           -



The structured bonds placed with customers are mainly on the type and include step-up bonds subscribed by the parent
company for the improvement in the structural for 500 million euro.



3.2 Breakdown of item 30 "Outstanding": subordinated securities

Nono are subordinated securities


3.3 Outstanding securities covered by specific



                                                                                                                                                                                3 1 / 12 / 2 0 0 9                                               3 1 / 12 / 2 0 0 8



1. Tito URPOSE them or co pecification s coverage of the fair value:                                                                                                                                       1.540.893                                                   1.635.513

             a) ris tas mark of interest to know whether                                                                                                                                                   1.540.893                                                   1.635.513

             b) exchange-res trailer                                                                                                                                                                                   -                                                       -

             c) other risks                                                                                                                                                                                            -                                                       -

2. Tito them or co URPOSE pecification s coverage of the financial flow is:                                                                                                                                            -                                                       -

             a) ris tas mark of interest to know whether                                                                                                                                                               -                                                       -

             b) exchange-res trailer                                                                                                                                                                                   -                                                       -

             c) more                                                                                                                                                                                                   -                                                       -




140
Section 4 Financial liabilities held for trading - Item 40 -

4.1 Financial liabilities held for trading: product breakdown

                                                                               3 1 / 12 / 2 0 0 9                                                         3 1 / 12 / 2 0 0 8

       Type lo g ia or uncle ni pe ra / va ri                                      FV                                                                         FV
                                                             VN                                                          FV *       VN                                                                  FV *
                                                                      L1           L2                       L3                                   L1           L2                           L3

A . P ass iv ity pe rcassa

   1. Amounts owed to banks or                                    -        -                            -            -          -            -        -                                -            -                  -

   2. Amounts owed to customers or                                -        -                            -            -          -            -        -                                -            -                  -

   3. Tito them debt                                              -        -                            -            -          -            -        -                                -            -                  -

       3.1 DEBT                                                   -        -                            -            -          -            -        -                                -            -                  -

           3.1.1 Structured                                       -        -                            -            -      X                -        -                                -            -          X

           3.1.2 Other or bbligazio ni                            -        -                            -            -      X                -        -                                -            -          X

       3.2 Other tito them                                        -        -                            -            -          -            -        -                                -            -                  -

           3.2.1 Structured                                       -        -                            -            -      X                -        -                                -            -          X

           3.2.2 Other                                            -        -                            -            -      X                -        -                                -            -          X

                                            Total       A         -        -                        -            -              -            -        -                            -            -                  -

B . S trum e nts a ti de rev

   1. Financial derivatives                                  X             -                  37.596                 -                   X            -                        42.446               -

       1.1 for trading                                       X             -                  37.596                 -      X            X            -                        42.446               -          X

       1.2 Co n co nnes is the fair value or ptio n          X             -                            -            -      X            X            -                                -            -          X

       1.3 Other                                             X             -                            -            -      X            X            -                                -            -          X

   2. Credit derivatives                                     X             -                            -            -                   X            -                                -            -

       2.1 for trading                                       X             -                            -            -      X            X            -                                -            -          X

       2.2 Co n co nnes is the fair value or ptio n          X             -                            -            -      X            X            -                                -            -          X

       2.3 Other                                             X             -                            -            -      X            X            -                                -            -          X

                                            Total       B    X             -              3 7 .5 9 6             -          X            X            -                 4 2 .4 4 6              -              X

                                                To ta (AB)        -        -              3 7 .5 9 6             -              -            -        -                 4 2 .4 4 6              -                  -




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

There are no financial liabilities subject to negotiation.




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

There are no trading financial liabilities consist of structured debts.




            141
Section 5 Financial liabilities at fair value - Item 50 -

For the Bank there is no such case.




142
Section 6 Hedging derivatives - Item 60 -

6.1 Hedging derivatives: breakdown by type of coverage and levels of hierarchy

                                                   Fair Value        3 1 / 12 / 2 0 0 9                 VN                       Fair Value        3 1 / 12 / 2 0 0 8                 VN



                                              L1                L2                        L3       3 1 / 12 / 2 0 0 9       L1                L2                        L3       3 1 / 12 / 2 0 0 8


A . D and to rev you re fine Energy Systems         -                   2 5 .13 8              -               5 13 .10 0         -                   2 6 .4 8 7             -               9 7 8 .3 0 8

    1) F air V alue                                     -                  25.138              -                  513.100             -                   26.487             -                   978.308

    2) Financial flow is                                -                           -          -                        -             -                            -         -                              -

    3) INVES timenti teri es                            -                           -          -                        -             -                            -         -                              -

B . Rev D and c re a ti tutions                     -                            -             -                        -         -                             -            -                          -

    1) Fair value                                       -                           -          -                        -             -                            -         -                              -

    2) Financial flow is                                -                           -          -                        -             -                            -         -                              -

                                   Total            -                   2 5 .13 8              -               5 13 .10 0         -                   2 6 .4 8 7             -               9 7 8 .3 0 8




            143
6.2 Hedging derivatives: breakdown by hedged portfolio and type of coverage


                                                                                                            F air Value                                                                                        F is F lus inanza iari


     Raz ni op and I / hate Tip                                                               S pec if ic                                                                                                                                               Inve st ime nt re
             coverage                                                                                                                                                                                                                                       Iest
                                                                                                                                                                         General                        S pec if ic               General
                                      Risk            of              Risk       of            Risk of                    Risk          of
                                                                                                                                                     More risk
                                         rate                           exchange               Credit                       price

1. Financial assets avail onib ili
                                                                  -                       -                         -                            -                   -             X                                          -             X                   X
p er the vend ita
2 . Credits                                           12 .34 5                            -                         -               X                                -             X                                          -             X                   X
3 . Financial assets of ethene
                                                X                                         -                         -               X                                -             X                                          -             X                   X
until the maturity enza
4 . Portfolio                                                     x                       x                         x                            x                   X                   12 .66 5                             X                     -           X

5. Other op tions Erazo                                           -                       -                         -                            -                   -                          X                             -                     X                           -

To t his A tt à CALLS                               12 . 3 4 5                        -                         -                            -                   -                     12 . 6 6 5                         -                     -                           -

1. Financial liabilities                                    12 8                          -                         -               X                                -             X                                          -             X                   X

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

To t his as s P à CALLS                                    12 8                       -                         -                            -                   -                             -                          -                     -                           -

1. Forecast transactions                        X                           X                      X                                X                      X                       X                                          -             X                   X
2 . Po rtafo Council activities and
                                                X                           X                      X                                X                      X                       X                             X                                  -                           -
p financial liabilities




144
Section 7 Fair value of financial liabilities in hedged-Item 70 -
For the Bank there is no such case.




     145
Section 8                              Tax liabilities, Item 80 -

                                                                       F o ndo
                                                                 im tell you little s tte



Balance 31/12/2008                                                                     38.907

Tion next                                                                              10.749

S you use to set payment                                                             (27.655)

Other variations ni                                                                          -

S ldo 3 1 / 12 / 2 0 0 9                                                            2 2 .0 0 1



The table above represents the movement of the current tax liabilities during the year. 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 and
following of the DPR 917 of 22 December 1986 and subsequent amendments and additions, so 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, to Section 13 of this note.




Section 9 Pas liabilities associated with assets held for sale-Item 90 -

For the Bank there is no such case.




146
Section 10                                              Other liabilities - Item 100 -

10.1 Other liabilities: breakdown


                                                                                         3 1 / 12 / 2 0 0 9               3 1 / 12 / 2 0 0 8



Amounts owed to the Treasury or are deemed to vers                                                               13.945                             14.489

S other pas CALLS - co ns or lidato fis hauls                                                                    21.777                             41.447

Co mpetenze and co ntributi relating to people or nal                                                            22.183                             37.595

Scrap its currency in foreign exchange Peraza ni                                                                     10                                129

So mme a bit dis s izio they score                                                                               75.600                             49.770

P arthritis in rational it work                                                                                  13.712                             11.569

By the re divers                                                                                                 52.075                             19.346

Related Searches                                                                                                 19.821                             22.911

Scrap its currency Peraza ni po rtafo Council co mmerciale                                                       38.625                            124.209

P arthritis traveling co n branches                                                                              12.335                             15.737

Deterioration guarantees improvement commitments and, can mak                                                     3.323                              6.944

Other                                                                                                             7.713                              9.651

Total                                                                                                         2 8 1.118                        3 5 3 .7 9 7


Payables consist of the consolidated tax debt to the parent company for the income tax transferred to the Company pursuant
to the laws on "national fiscal consolidation."
"Other" includes accruals and not brought back for a total of 7,713 thousand euro.




        147
Section 11 Provision for employee - Page 110 -

11.1 Provision for employee severance pay: annual changes



                                                                                           3 1 / 12 / 2 0 0 9                  3 1 / 12 / 2 0 0 8


A . Es is you start them NZE                                                                            48. 287                                    5 1.8 4 8

B . Increases                                                                                             1. 3 7 8                             2      .4 6 3

    B .1 of Ex Next tioning ercizio                                                                                   -                                    -

    B .2 Other variations ni                                                                                     1.378                                 2.463

C . Decreases                                                                                              (2 .19 9 )                          (6 .0 2 4 )

    C .1 liquidation made ni                                                                                    (1.742)                              (6.024)

    C .2 Other variations ni                                                                                     (457)                                     -

D. R im fine them for it NZE                                                                            47. 466                              48       .2 8 7




The other increases and decreases                                                include                                  respectively:


                actuarial gains of € 457 000;



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                                E 'was used a special table made from appropriate
                                                equalization 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 curve EUR compositeA
                                                30 December 2009 (source: Bloomberg) Weighted
                                                relationship between the amount paid / total amount to be anticipated and
                                                pay / advance for each maturity until the extinction of
                                                population considered.




148
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 derived from historical data appropriate equalization business
                   recent years, taking account of planned withdrawals
                   Business Plan approved by the update.

Advances in TFR    The probability of anticipation, determined on the basis of data
                   business historians, is 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 of 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_Govt_of_Italy_31122008.




     149
Section 12 Provisions for risks and charges - Page 120 -

12.1 Provisions for risks and charges: breakdown



                                                 Vo ci / it should be re                                     3 1 / 12 / 2 0 0 9                  3 1 / 12 / 2 0 0 8


1. Fo ndo of quies business LICENSE                                                                                         2 4 .2 9 8                           2 4 .2 9 7

2. Other ndi fo ris eo blacks who                                                                                            17 .7 4 4                            16 .9 9 2

    2.1 co ntro vers ie legal                                                                                                      2.006                               2.576

    2.2 or p or tion for blacks                                                                                                    5.623                               4.176

    2.3 Other                                                                                                                     10.115                              10.240

Total                                                                                                                       4 2 .0 4 2                            4 1.2 8 9




12.2 Provisions for risks and charges: annual changes


                                                                             F or the idle ndi sce nza        O there fo ndi                            Total


A . Es is you start them NZE                                                                2 4 .2 9 7                        16 .9 9 2                           4 1.2 8 9

B . Increases                                                                                 2 .3 9 9                            3 .8 0 0                            6 .19 9

B .1 of Ex Next tioning ercizio                                                                      33                              2.845                              2.878

B .2 variations ni pas s to give indemnities received are time                                   1.093                                 308                              1.401

B .3 ni do indemnities received a variation of AS AMENDED know tas nt s co                               -                                   -                                  -

B .4 Other variations ni                                                                         1.273                                 647                              1.920

C . Decreases                                                                               (2 .3 9 8 )                      (3 .0 4 8 )                         (5 .4 4 6 )

Using C .1 of Ex ercizio                                                                        (2.398)                            (2.361)                            (4.759)

C .2 ni do indemnities received a variation of AS AMENDED know tas nt s co                               -                                   -                                  -

C .3 Other variations ni                                                                                 -                           (687)                              (687)

D. R im fine them for it NZE                                                                2 4 .2 9 8                        17 .7 4 4                           4 2 .0 4 2




12.3 Pensions Defined benefit company
The company pension funds of staff is represented by the present and future commitments in respect of retired staff who had
opted in 1998 for the maintenance of the former Provident Savings Bank Regulations Cuneo (CRC) and a former Bank of
Mount Lombardia (BML). The consistency of the fund is determined based on the mathematical calculation and certified by
an independent actuary. There are no specific assets and liabilities of the plan and the Company is liable for the debt to the
beneficiary with his entire property.




150
12.3.1 annual statements of their defined benefit funds


                                                                                                                            F. Do          Pensions                F. Do         Pensions
                                                                                                                                     B ex. M. L.                           ex-C. R. C.



A . Es is you start them NZE                                                                                                                        9 .4 7 8                             14 .8 19

B . Increases                                                                                                                                        1.15 7                               1.2 4 2

B .1 pas s interest is there in playing co ntro to co nt eco nomic no "s and p or tion pes"                                                             427                                   667

B .2 actuarial gains in co ntro game of "res erve from evaluation method"                                                                               476                                   575

.3 B side CES                                                                                                                                             33                                      -

B .4 other variations ni                                                                                                                                 221                                      -

C . Decreases                                                                                                                                        (7 3 9 )                            (1.6 5 9 )

C .1 Benefits paid to think I ni                                                                                                                       (739)                               (1.659)

C .2 P oss actuarial co ntro game of "res erve from evaluation method"                                                                                         -                                  -

D. R im fine them for it NZE                                                                                                                        9 .8 9 6                             14 .4 0 2

The profits / losses, net of related tax effects, are evident in the statement of changes in shareholders' equity under
"Revaluation reserves: in other reserves."



12.3.5 Defined benefit obligations: principal actuarial assumptions

31/12/2009


                                                                                              F. Do         Pensions         F. Do          Pensions
                                                                                                      B ex. M. L.                     ex-C. R. C.



a) s of Tas is co nt                                                                                                4,50%                               4,50%

b) Tas is waiting for the salary increases                                                                          3,50%                               3,50%

c) I know inflation will Tas                                                                                        2,00%                               2,00%




31/12/2008


                                                                                              F. Do         Pensions         F. Do          Pensions
                                                                                                      B ex. M. L.                     ex-C. R. C.



a) s of Tas is co nt                                                                                                4,50%                               4,50%

b) Tas is waiting for the salary increases                                                                          3,50%                               3,50%

c) I know inflation will Tas                                                                                        2,00%                               2,00%




12.4 Provisions for risks and charges - Other provisions

                                                                                                                                                                                            151
                                                               Increases                                                  Decreases


                                                                                      O THERE                              O THERE
                                      3 1 / 12 / 2 0 0 8      A cca na nt me nt                               Use                                 3 1 / 12 / 2 0 0 9
                                                                                       ria is uncle ni                    ria is uncle ni


Co ntro vers ie legal                                 2.576                     777                      76     1.294                       129                  2.006

Tional burden on the people or                        4.176                   1.099                  777            430                       -                  5.623

Other funds                                          10.241                     969                  101            638                     558                 10.115

    ni revo per share in market Rie                 2.827                     509                   76          322                   358                       2.732

Total                                             16 .9 9 2                2 .8 4 5               955         2 .3 6 1                687                    17 .7 4 4

Other provisions for risks and charges primarily include funds for revocation, the provisions for complaints from financial
investments, and the causes of staff. The estimates were carried out analytically on individual positions if the counterparty
has already undertaken a legal action and on the basis of a potential estimated on historical statistical series in presence of
objective factors of risk (eg presence of complaints), not yet been invoked in legal proceedings. For funds which provided the
financial outlay has been estimated over the years, we proceeded to determine the impact of discounting, using as a discount
rate Euribor 1 year. The timing of expected payment on average in the range from 3 to 5 years.




Contingent liabilities
The Bank points out that the liability amount of 450 thousand euro relating to antitrust sanctions as more detailed in the
Management Report - more info.




152
Section 14 Heritage Business
                 - Items 130, 150, 160, 170, 180, 190 and 200 -
14.2       Share capital and treasury shares: breakdown



                                                                                 3 1 / 12 / 2 0 0 9          3 1 / 12 / 2 0 0 8


No Actium ni                                                                                  850.000.000                 850.000.000

not rated by Euro each                                                                                0,52                        0,52


No Actium ni P ROP RIE                                                                                   -                           -

not rated by 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
Nominal value of shares
The share capital is fully subscribed and paid up and was made up of 735,098,007 ordinary shares, 68,591,443 preferred
shares and 46,310,550 savings shares of par value euro 0.52 each. The Bank does not own shares.

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 by origin and an indication of the possibility use
and for distribution pursuant to art. 2427 paragraph 1, no 7 reported a cc at the end of the next item.




14.4 Retained earnings: other information
Surplus funds amounted to EUR 333.86 million and are as follows:
    -     Legal reserve euro 58.43 million, an increase of 5.575 million euro is equivalent to the resolutions passed by the
          shareholders last year, in the distribution of profits,
    -     Reserve of EUR 198,643, net of reserve First Time Adoptions (-84.16 million euro);
    -     Reserve for actuarial gains and losses EUR -1.864 million;
    -     Reserve Fund L. 124/93 art. EUR 13 217 000,
    -     Reserve Fund L. 218/90 art. 7 euro 26.689 million;
    -     Fund for general banking risks EUR 51.746 million;

The other reserves amounted to EUR 33.752 million and are as follows: - Reserve gains on
    intercompany transactions EUR 33.752 million.




       153
Composition of second home equity, availability, and for distribution to 31/12/2009

                                                                                                                                                  Summary              lle de ni uncle uses
                                                                      P OS S IB ILite '                                                               made      and the three pre ce de nt
                                                                                                  SHARE                     BOND
                                                   AMOUNT                OF                                                                                    exercises
                                                                                              D IS P ON ILE IB       F IS THE CA (1)
                                                                      ZION AND USES                                                        pe pe rco rtura                     also
                                                                                                                                                    pe rdite               g I ra ni

A) CAPITAL
-Capital                                               442.000                            -                      -             61.256 ssun use                     use sun


B) Capital reserve
-Share premium                                                -                           -                      -                     -                       -                              -


C) Retained earnings
Res-Legal Erva                                          58.430                            B                      -                     - ssun use                  use sun
Ris-Erva s tatutaria                                   310.830                     ABC                 310.830                 31.334 ssun use                                         (2) (3)
Ris-Erva Rifo rma predicted. co MPLEMENTATION           (1.864)                           -                      -                     - ssun use                  use sun
Ris-Erva ex D. Lgs. N.124 / 1993                           217                      AB                           -                 217 ssun use                    use sun


D) OTHER RESERVES
-Reserve L. 218/90                                            -                     AB                           -                     - ssun use                                         (4)
Ris-Erva revaluation of its ex L. No 350/2003          118.641                      AB                           -            118.641 ssun use                     use sun
Ris-Erva by val. s INSTRUMENTS fin. des t.vend.          (221)                            -                      -                     - ssun use                  n use (5)
Res Erva-evaluation method from IAS                     (3.015)                           -                      -                     - ssun use                  use sun




TOTAL                                                  925.018                                         310.830                211.448


Profit for the year-2009                                54.618                            -                      -                     -                       -                              -

TOTAL ASSETS (4)                                       979.636                                         310.830                211.448
Key:
A: for capital increase
B: to cover losses
C: for distribution to shareholders

Notes:
(1) Amount of tax suspension.
(2) Reserve bound to 26.691 million euro under the L.218/90 and euro 4.643 million to replenish foreign reserves in the bond tax suspension of the merged
company
Cassa Risparmio di Tortona (pursuant to Legislative Decree no. 124/93 and the laws of no revaluation 72/83, n. No 413/91 and 350/03, respectively, for 9000
euro, euro 827 thousand, 943 thousand euro and euro 2.864 million).
(3) In 2005 the statutory reserve was reduced to 5.725 million euro to cover the negative reserves, which have originated in the transition to international
accounting standards.
(4) In 2005, this reserve amounted to 26.691 million euro, was canceled in order to defray part of the negative reserves, which have originated in the transition
to international accounting standards.
(5) Non-distributable reserve pursuant to article 6 of Legislative Decree n.38 28/02/2005.



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


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




154
More information

1. Guarantees and commitments



                                                   Operations                       3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8


1) Guarantees mak CIAT financial                                                                      289.526                       276.677

    a) Banks                                                                                          161.626                            97.756

    b) Customers                                                                                      127.900                        178.921

2) Guarantees mak CIAT nature co mmerciale                                                            510.475                        510.318

    a) Banks                                                                                               6.471                          7.308

    b) Customers                                                                                      504.004                        503.010

3) Kabyles irrevocable commitments to tender was fo ndi                                               753.325                        931.033

    a) Banks                                                                                              19.007                         45.072

         i) certain to                                                                                    19.007                         45.072

         ii) uncertain use                                                                                     -                              -

    b) Customers                                                                                      734.318                        885.961

         i) certain to                                                                                     3.241                          3.460
         ii) uncertain use                                                                            731.077                        882.501

4) Commitments s tto know many credit derivatives: sales of its pro Tezio                                      -                              -

5) Activities in Titu co s guarantee of a third party or bbligazio ni                                          -                              -

6) Other commitments                                                                                        528                          11.314
Total                                                                                          1.5 5 3 .8 5 4                 1.7 2 9 .3 4 2


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". "Other commitments" in 2008 included options on portfolio management
with guaranteed capital, subscribed by the customer.
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



                                                    P o rta g f or them              3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8


1. Financial assets held for ziazio deny it                                                                    -                              -

2. Financial assets at fair value                                                                              -                              -

3. Financial assets available for sale dis bit                                                                 -                              -

4. Financial assets held to ino s s cadence                                                                    -                              -

5. Loans to banks or                                                                                           -                              -

6. Loans and advances to customers or                                                                      6.801                          2.570

7. Tangible assets                                                                                             -                              -




3. Operating leases
There are no operating leases.




4. Management and brokerage for third parties


                                                                                                                                          155
                                                                               Type              services                                       3 1 / 12 / 2 0 0 9



1. Es c uzio or any of rdini pe rco lla nt the c lie nt

    a) Purchases                                                                                                                                                           -

         1. Adjust                                                                                                                                                         -

         2. Do not adjust                                                                                                                                                  -

    b) Sales                                                                                                                                                               -

         1. Adjust                                                                                                                                                         -

         2. Do not adjust                                                                                                                                                  -

2 . Ge s po rta tio ni f or g them                                                                                                                             4 6 2 .2 4 5

    a) Individual                                                                                                                                                    462.245

    b) collective                                                                                                                                                          -

3 . C us to give eamm inis between them uncle Tito                                                                                                          15 .6 7 1.5 8 0

    a) tito them to third in deposit ito s: co nnes is the s co n vo lgimento ITAR s bank deposits (eg clus ges tio ni and some of the rtafo)                              -

         1. Tito will be emitted by the reporting bank                                                                                                                     -

         2. other tito them                                                                                                                                                -

    b) Tito them ito s third-party deposits (eg clus ges tio ni and some of the rtafo): other                                                                    7.909.095

         1. Tito will be emitted by the reporting bank                                                                                                           2.327.997

         2. other tito them                                                                                                                                      5.581.098

    c) third-party deposits tito them know pres s itati third                                                                                                    7.641.696

    d) tito them of deposits per property itati pres s know-thirds                                                                                                   120.789

4) n addition to or pe ra ni uncle                                                                                                                           2 .7 6 1.3 4 8
Total                                                                                                                                                       18 .8 9 5 .17 3


Under "other transactions" are given the volumes related to the collection orders for securities trading.




156
Part C - Income Statement

Section 1                                                                     Interest - Items 10 and 20 -

1.1 Interest income and similar revenues


                                                                                                 Tito them and the framework
                                      Vo ci / F o rm and you c nic h                                         of D                  F ina me nt Energy Systems       N addition to or pe ra ni uncle            3 1 / 12 / 2 0 0 9                      3 1 / 12 / 2 0 0 8



1. Financial assets held for ziazio deny it                                                                              220                                    -                                     -                             220                                     838

2. Financial assets available for sale dis bit                                                                             16                                   -                                     -                                16                                    39

3. Financial assets held-to-s intervals                                                                                        -                                -                                     -                                  -                                     -

4. Loans to banks or                                                                                                    1.490                             31.204                                      -                    32       .6 9 4                           7 7 .2 5 5

5. Loans and advances to customers or                                                                                          -                         275.904                                  25                     275        .9 2 9                         4 9 5 .9 3 6

6. Financial assets at fair value                                                                                              -                                -                                     -                                  -                                     -

7. Derivatives co coverage                                                                                   X                                 X                                               2.950                         2      .9 5 0                                     -

8. Other activities                                                                                           x                                x                                                  84                                  84                                    12 0

                                                                                         Total                        1.7 2 6                         3 0 7 .10 8                            3 .0 5 9                        3 11.8 9 3                            5 7 4 .18 8



The amount of interest on impaired assets is 18,071 thousand                                                                                                                                                         euro.

The item "Loans and advances-loans" includes about EUR 16.4 million of interest earned on loans given to guarantee future
emissions of covered bonds.

The item "Loans and advances to customers" include the overdraft charges totaling 10,146 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 matters - Commission for making available funds (overdraft former Commission). "


1.2 Interest income and similar income differentials on hedging


                                                                       Vo ci / it should be re                                                                                     3 1 / 12 / 2 0 0 9                                         3 1 / 12 / 2 0 0 8



A. Differential bit s itivi relating to or co ni Peraza coverage:                                                                                                                                          62.174                                                             -

B . Shortfalls relating to or co ni Peraza coverage:                                                                                                                                                      (59.224)                                                             -

C . Ldo S (A - B)                                                                                                                                                                                         2 .9 5 0                                                             -




1.3 Interest and other income: Other information
1.3.1 Interest earned on investments in foreign currency



                                                                       Vo ci / it should be re                                                                                    3 1 / 12 / 2 0 0 9                                         3 1 / 12 / 2 0 0 8



Interest is earned on financial assets in                                                                                                                                                                   1.772                                                      3.878




1.3.2 Interest income on finance leases

There are no interest for leasing transactions.


1.4 Interest payable and similar charges: breakdown

                                                                                                                                                                                                                                                                      157
                                                                                                                                           O
                                                                                                                                           THER
                                Vo ci / F o rm   techniques                                 Debts                  Titles                  E             operations                3 1 / 12 / 2 0 0 9                  3 1 / 12 / 2 0 0 8



1. Deposits from central banks or                                                                              -     X                                                 -                                   -                                    -

2. Amounts owed to banks or                                                                             (3.650)      X                                                 -                         (3 .6 5 0 )                         (4 3 .10 3 )

3. Amounts owed to customers or                                                                       (38.224)       X                                                 -                       (3 8 .2 2 4 )                        (112 .17 2 )

4. Tito them in the circus it lazio                                                          X                                (72.618)                                 -                        (7 2 .6 18 )                      (9 2 .5   68)

5. P s as held for trading financial CALLS                                                                     -                       -                               -                                   -                                    -

6. P as s CALLS financial assets at fair value                                                                 -                       -                               -                                   -                                    -

7. S other pas and CALLS FOR ndi                                                             X                       X                                                 -                                   -                                    -

8. Derivatives co coverage                                                                   X                       X                                                 -                                   -                       (13 .8   54)

                                                                           Total                    (4 1.8 7 4 )            (7 2 .6 18 )                               -                       (114 .4 9 2 )                    (2 6 1.6    97)




1.5 Interest payable and similar charges: differentials on hedging


                                                                  Vo ci / it should be re                                                                3 1 / 12 / 2 0 0 9                                    3 1 / 12 / 2 0 0 8



A. Differential bit s itivi relating to or co ni Peraza coverage:                                                                                                                       -                                          70.635

B . Shortfalls relating to or co ni Peraza coverage:                                                                                                                                       -                                          (84.489)

C . Ldo S (A - B)                                                                                                                                                                      -                                       (13.8 5 4 )




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



                                                              Vo ci / it should be re                                                             3 1 / 12 / 2 0 0 9                                    3 1 / 12 / 2 0 0 8



S interesting is there pas pas s on CALLS currency                                                                                                                         (471)                                             (1.713)




1.6.2 Interest expense on finance leases

There are no interest payments for finance leases.




158
Section 2                                 Commissions - Items 40 and 50 -

2.1 Fee and commission income: breakdown



                                            Type ia lo g Se rv ices / should be the re           3 1 / 12 / 2 0 0 9            3 1 / 12 / 2 0 0 8



a)   ciate guarantees mak                                                                                              3.999                         4.554

b)   credit derivatives                                                                                                    -                             -

c)   s ervices in ges tio it, and it intermediazio co ns ulenza:                                                      64.064                        69.834

     1. ziazio deny it s financial INSTRUMENTS                                                                           25                            15

     2. I deny it ziazio Currency                                                                                      1.150                         1.436

     3. ges tio ni rtafo bit of the                                                                                      90                          3.061

         3.1.     Individual                                                                                             90                          3.061

         3.2.     collective                                                                                               -                             -

     4. cus to give it traction and adminis Tito them                                                                  1.390                         1.159

     5. ITAR s bank deposits                                                                                               -                             -

     6. co llo cally Tito them                                                                                        25.625                        29.590

     7. Changing Reception its activities and trans mis s I or any of rdini                                            5.218                         4.806

     8. activities co ns ulenza                                                                                           1                              8

         8.1      on INVES timenti                                                                                        1                              8

         8.2      on s tructure financial                                                                                  -                             -

     9. dis Tribuzio it s ervices to third                                                                            30.565                        29.759

         9.1. Ges tio ni rtafo bit of the                                                                              3.790                         2.604

                  9.1.1.     Individual                                                                                3.790                         2.604

                  9.1.2.     collective                                                                                    -                             -

         9.2. fresh products as s ICUR                                                                                13.276                        13.909

         9.3. other fresh products                                                                                    13.499                        13.246

d) s ervices soe payment of the Incas                                                                                 17.856                        19.424

e) s ervice s for ervicing or Peraza ni paper larizzazio it                                                                -                             -

f)   s ervices for or Peraza NI facto ring                                                                                 -                             -

g) es ercizio ES receiver and act Rie Rie                                                                                  -                             -

h) activities of ges tio of it's themes is a multilateral exchange rate s                                                  -                             -

i) seal and it ges tio co nti co rrenti                                                                               24.610                        26.513

j) Other s ervices                                                                                                    18.593                        13.899

                                                                                         Total                   12 9 .12 2                    13 4 .2 2 4




"Other services" following the introduction of the new commission system, including the Commission made funds from 1
July 2009 for a total of 7,325 thousand euro.
For further information please refer to the above in the section "Accounting policies
- Section 4: Other matters - Commission for making available funds (overdraft former Commission). "




        159
The details of the fees on other services obtained is shown in the table below.



                              Details         comm is s I ni "to if thers rv ices"                      3 1 / 12 / 2 0 0 9                   3 1 / 12 / 2 0 0 8



- Loans, mortgages and CDF                                                                                                   12.214                                 7.739

- Pressure on a pledge titi                                                                                                      2.369                              1.897

- Foreign                                                                                                                        1.000                              1.052

- Other                                                                                                                          3.011                              3.210

Total                                                                                                                     18 .5 9 4                             13 .8 9 8




2.2 Commission income: distribution channels for products and services

The products and services are wholly located in its branches.


2.3 Fee and commission expense: breakdown



                                              S and rv ices / va ri                                3 1 / 12 / 2 0 0 9                    3 1 / 12 / 2 0 0 8



a)   Guarantees received                                                                                                 (131)                                 (206)

b)   credit derivatives                                                                                                       -                                     -

c)   s ervices in ges tio it, and it intermediazio co ns ulenza:                                                        (2.376)                               (2.873)

          1. ziazio deny it s financial INSTRUMENTS                                                                     (1.724)                               (1.216)

          2. I deny it ziazio Currency                                                                                        -                                   (5)

          3. ges tio ni bit of the rtafo:                                                                                (409)                                (1.451)

               3.1. own                                                                                                       -                                     -

               3.2. delegated to third                                                                                   (409)                                (1.451)

          4. cus to give it traction and adminis Tito them                                                               (243)                                 (201)

          5. cally co llo s financial INSTRUMENTS                                                                             -                                     -

          6. fferta FUO or re ede s s financial INSTRUMENTS, fresh products such ervices                                      -                                     -

d) s ervices soe payment of the Incas                                                                                   (4.530)                               (5.670)

e) Other s ervices                                                                                                       (328)                                 (458)

                                                                                           Total                   (7 .3 6 5 )                           (9 .2 0 7 )




160
Section 3                              Dividends and similar income - Item 70 -

3.1 Dividends and similar income: breakdown


                                                                                3 1 / 12 / 2 0 0 9                              3 1 / 12 / 2 0 0 8

                               Vo ci / P ro ve nts
                                                                                             P ro ve nts from                                P ro ve nts from
                                                                    Dividends                                       Dividends
                                                                                           Or you quo. IC. R.                              Or you quo. IC. R.

A. Financial assets held for ziazio deny it                                         1                           -                   2                           -

B . Financial assets available for sale dis bit                                  522                            -                444                            -

C . Financial assets at fair value                                                  -                           -                   -                           -

D. P artecipazio ni                                                             9.777                X                          6.284                X

Total                                                                     10 .3 0 0                             -          6 .7 3 0                             -




        161
Section 4 Net income from trading - Item 80 -

4.1 The net result of trading:


                                                                                                                        Profit from                                                         Losses from
                                                                                         P LUS is the NZE                                               M inus is the NZE                                                  Result           net
                OPERATE ni / C om it bit them dditua re nts                                                            I go aunt uncle                                                     I go aunt uncle                                                       3 1 / 12 / 2 0 0 8
                                                                                               (A )                                                           (C )                                                          [(AB) - (CD)]
                                                                                                                            (B )                                                                (D )


1. By activating ity fine series of Energy Systems will go aunt uncle                                       13 9                         1.5 4 8                                (4 )                              (5 0 )                          1.6 3 3                             2 .16 5

    1.1 Tito them debt                                                                                       132                            1.057                                 (4)                              (22)                             1.163                               1.403

    1.2 Tito them capital                                                                                      7                                    6                                  -                             (9)                                 4                                (26)

    1.3 Quo you for OIC. R.                                                                                        -                                -                                  -                               -                                     -                                  -

    1.4 Funding                                                                                                    -                                -                                  -                               -                                     -                                  -

    1.5 Other                                                                                                      -                          485                                      -                           (19)                               466                                 788

2 . P ass iv ity fine Rie Energy Systems    I go to aunt uncle                                                 -                                -                                  -                                   -                                 -                                  -

    2.1 Tito them debt                                                                                             -                                -                                  -                               -                                     -                                  -

    2.2 Due                                                                                                        -                                -                                  -                               -                                     -

    2.2 Altre                                                                                                      -                                -                                  -                               -                                     -                                  -
3 . O THERE By activating ity and pa ss iv ity fine Rie Energy Systems: differential re NZE
                                                                                                 X                                 X                                 X                                 X                                                 -                            (17 7 )
exchange

4 . S trum e nts a ti de rev                                                                           2 .4 0 9                        5 8 .13 0                         (4 .9 6 5 )                       (5 6 .2 3 8 )                          (5 5 7 )                             840

    4.1 Financial derivatives:                                                                              2.409                          58.130                            (4.965)                          (56.238)                               (557)                                840

        - On tito them of debt and interest if you tas                                                      2.409                          58.130                            (4.965)                          (56.235)                               (661)                                452

        - On tito them and share indices Actium nostrils                                                           -                                -                                  -                             (3)                               (3)                                239

        - Currency eo ro                                                                         X                                 X                                 X                                 X                                              107                                 142

        - Other                                                                                                    -                                -                                  -                               -                                     -                                  7

    4.2 Credit derivatives                                                                                         -                                -                                  -                               -                                     -                                  -

Total                                                                                                  2 .5 4 8                        5 9 .6 7 8                        (4 .9 6 9 )                       (5 6 .2 8 8 )                          1.0 7 6                         2 .8 2 8




162
Section 5                                                                           Net income from hedging - Item 90 -

5.1 The net result of hedge accounting: breakdown



                                C om it bit them dditua re nts / should be the re         3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8



A . P ro ve re nt ia the Tiv:

A.1 derivatives co coverage of the fair value                                                                  12.474                          38.105

A.2 Financial assets co perte (fair value)                                                                        984                          28.357

A.3 P as s CALLS financial co perte (fair value)                                                                6.937                                -

A.4 Cash-flow is co coverage of financial                                                                            -                               -

A.5 S assets and liabilities in foreign currency CALLS                                                               -                               -

To the pro t de ve nts ll'a ttiva rtura ity co pe (A)                                                     2 0 .3 9 5                     6 6 .4 6 2

B . One king re ia tiv:

B .1 derivatives co coverage at fair value                                                                     (5.721)                        (28.498)

B .2 co perte financial assets (fair value)                                                                    (4.396)                               -

B .3 P as s CALLS financial co perte (fair value)                                                              (7.259)                        (43.372)

B .4 Financial derivatives co coverage of the financial flow is                                                      -                               -

B .5 s assets and liabilities in foreign currency CALLS                                                              -                               -

To do or re de ta ll'a ttiva rtura ity co pe (B)                                                        (17 .3 7 6 )                    (7 1.8 7 0 )

C . R is ulta to it tto             de ll'a ttiva ity co pe rtura (A - B)                                      3 .0 19                   (5 .4 0 8 )




        163
Section 6 Profit (loss) on sale / repurchase - Page 100 -

6.1 Profit (loss) on sale / repurchase composition


                                                                                                     3 1 / 12 / 2 0 0 9                                                  3 1 / 12 / 2 0 0 8

                                Vo ci / C om it bit them dditua re nts
                                                                                                                                  Result                                                          Result
                                                                              Useful                      Losses                                      Useful                  Losses
                                                                                                                                   net                                                             net


By activating ity F ina Rie Energy Systems

1. Loans to banks or                                                                             -                            -                   -                  -                        -                      -

2. Loans and advances to customers or                                                            -                            -                   -                  -                  (2.836)               (2.836)
3. Financial assets available for sale dis bit                                           8.944                                -              8.944                   -                        -                          -

        3.1 Tito them debt                                                                       -                            -                   -                  -                        -                      -

        3.2 Tito them capital                                                            8.944                                -              8.944                   -                        -                          -

        3.3 Quo you for OIC. R                                                                   -                            -                   -                  -                        -                      -

        3.4 Loans                                                                                -                            -                   -                  -                        -                      -
4. Financial assets held to ino s s cadence                                                      -                            -                   -                  -                        -                          -

By activating ity to ta                                                                8 .9 4 4                           -                8 .9 4 4              -                  (2 .8 3 6 )            (2 .8 3 6 )

P ass iv ity fine Rie Energy Systems

1. Amounts owed to banks or                                                                      -                            -                   -                  -                        -                      -

2. Amounts owed to customers or                                                                  -                            -                   -                  -                        -                      -

3. Tito them to do circus lazio                                                            128                       (411)                   (283)              739                       (134)                   605

To ta pa ss iv ity                                                                        12 8                     (4 11)                  (2 8 3 )            739                     (13 4 )                  605



The profit of EUR 8.9 million relates to the sale of Cedacri.
31/12/2008 The loss of EUR 2.8 million is related to the sale of credit Pininfarina.




164
Section 8                    The adjustments to / recoveries on impairment - Page 130 -

8.1 Impairment losses on loans: breakdown


                                                         R ttific and he goes to the king       (1)                                                                              IPRE if R is the King (2)


OPERATE ni / nt he C om little                        S pe c h IFIC                                                                                                                                                                                          Total                     Total
                                                                                                                                                  S pe c h IFIC                                           D i g f or some rta lio
      Kings dditua them
                                                                                                 D i g f or some rta lio                                                                                                                              3 1 / 12 / 2 0 0 9       3 1 / 12 / 2 0 0 8
                                                                            O
                                      C and E n uncle ni                THERE                                                                                    N addition to resumes                                          N addition to
                                                                                                                                         D inte re ssi                              if               D inte re ssi                 resumes if


A. Loans to banks or                                        -                               -                                -                           -                               -                               -                        -                        -                        -

   - Funding                                                -                               -                                -                           -                               -                               -                        -                        -                        -

    - Tito them debt                                        -                               -                                -                           -                               -                               -                        -                        -                        -
B . Loans and advances to
customers or                                        (10.890)                     (37.672)                            (345)                          3.503                         11.750                                 -                        -               (33.654)                  (28.119)

   - Funding                                        (10.890)                     (37.672)                            (345)                          3.503                         11.750                                 -                        -               (33.654)                  (28.119)

   - Tito them debt                                         -                               -                                -                           -                               -                               -                        -                        -                        -
C . Total                                        (10 .8 9 0 )                 (3 7 .6 7 2 )                        (3 4 5 )                       3 .5 0 3                       11.7 5 0                            -                            -            (3 3 .6 5 4 )             (2 8 .119 )


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


                                                                      Corrections       value                (1)                        Resumes if value                  (2 )


                                                                                S pe c h IFIC                                                     S pe c h IFIC
   OPERATE ni / C om it bit them dditua re nts                                                                                                                                                  3 1 / 12 / 2 0 0 9           3 1 / 12 / 2 0 0 8
                                                                                                                                                                  n
                                                                                                                                                                  additio
                                                                C and E n uncle ni                    O THERE                    by inte re ssi                   n to    resumes if


A. Tito them debt                                                                           -                              -                                 -                              -                            -                        -

B . Tito them capital                                                                       -                        (127) X                                      X                                            (12 7 )                     (17 8 )

C . Quo you OIC. R.                                                                         -                              - X                                                              -                            -                        -

D. Loans to banks                                                                           -                              -                                 -                              -                            -                        -

E. Loans to customers                                                                       -                              -                                 -                              -                            -                        -

Total                                                                                   -                          (12 7 )                               -                               -                     (12 7 )                     (17 8 )




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


                                                                                                                                                                                                                                                                                               165
There are no adjustments for impairment of financial assets held to maturity.




8.4 Impairment losses on other financial transactions: breakdown



                                                                   Corrections    value               (1)                                                                        Resumes if value       (2)




                                                               S pe c h IFIC                                                                                S pe c h IFIC                                     D i g f or some rta lio
OPERATE ni / C om it bit them dditua re nts                                                                                                                                                                                                              3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8

                                                                                                          D i g f or some rta lio
                                                                                                                                                                          O                                                      O
                                                                                                                                                                          THER                                                   THER
                                              C and E n uncle ni                 O THERE                                                    D inte re ssi                 E      resumes if            D inte re ssi             E      resumes if



A. Guarantees mak ciate                                                  -                    (269)                                   (7)                             -                            -                         -                       -                    (2 7 6 )                    (2 .2 7 8 )


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


C . Commitments to races I was fo ndi                                    -                            -                             (103)                             -                            -                         -                       -                        (10 3 )                           -


D. More or Peraza ni                                                     -                            -                                 -                             -                            -                         -                       -                              -                           -


E. Total                                                             -                     (2 6 9 )                            (110 )                             -                            -                         -                           -                    (3 7 9 )                    (2 .2 7 8 )




166
Section 9                                      Administrative expenses - Page 150 -

9.1 Personnel expenses: breakdown


                                                      Type ia lo g ie s if / should the re                        3 1 / 12 / 2 0 0 9                3 1 / 12 / 2 0 0 8



1) P e rs or the DIPE na nde nte                                                                                                   (13 0 .9 7 0 )                   (14 9 .2 4 5 )

    a) Wages and salaries                                                                                                              (88.907)                          (101.704)

    b) Charges so cial                                                                                                                 (24.548)                           (27.162)

    c) Compensation for loss of rap rto                                                                                                         -                            (144)

    d) Costs and benefits                                                                                                                       -                                 -

    e) In addition to the severance tion of rap rto p or tion                                                                            (2.649)                           (2.718)

    f) In addition to the for tion of questions ndo treatment efficiency eo s Imil OBLIGATIONS:                                          (1.126)                           (1.324)

                - I adopted a co ntribuzio                                                                                                      -                                 -

                    - Defined benefit                                                                                                    (1.126)                           (1.324)

    g) Due to the catkins f or security co ndi es MPLEMENTATION themes:                                                                  (9.377)                           (9.875)

                - I adopted a co ntribuzio                                                                                               (9.377)                           (9.875)

                    - Defined benefit                                                                                                           -                                 -

    h) Co s acco you from RDI payment bas ed on pro pri s INSTRUMENTS nial heritage                                                             -                                 -

    i) Other benefits for its employees honeycomb                                                                                        (4.363)                           (6.318)

2) A lter na pe rs or in the By activating ity                                                                                           (6 4 7 )                          (5 6 4 )

3) mm in between to re inis                                                                                                            (1.4 0 7 )                        (1.5 6 6 )

4) P e rs or co na llo ca at rest to know                                                                                                       -                                 -

5) R UPE re s pe c if                     DIPE nde nts pe r un ca ta I n addition to pre SSOA aunts nde                                 3 .7 5 1                          3 .6 4 2

6) R im the bo s pe rs if                 nde nts pe r DIPE you rzi cca ta dis soc ie will the pre x TY                                  (8 3 5 )                          (8 10 )

                                                                                                          Total                    (13 0 .10 8 )                    (14 8 .5 4 3 )


Under the heading "Directors" also includes the remuneration of the Board of Auditors.




9.2 Average number of employees per category

                                                                                                                                                                          167
                                                                                     3 1 / 12 / 2 0 0 9               3 1 / 12 / 2 0 0 8


1) P ER S ON THE A D D EN EN IP TE                                                                        1.9 12                            1.9 4 8

         at. leaders                                                                                          36                                 38

         b. to the senior management                                                                         603                                588

         c. res many people or nal                                                                         1.273                              1.322

2) A LTR OP ER S ON A LE                                                                                      18                                 18


The staff includes staff seconded to other companies, and excludes the company's employees seconded to other companies.
Under the heading of other staff include administrators, auditors, workers with temporary contracts and other employees.



9.3 Defined benefit company pension funds: total costs
As stated in Table 12.3.1 of section 12-Provisions for risks and charges, the costs amounted to EUR 1.094 million and
represent the interest cost.



9.4 Other benefits to employees



                                                                                     3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8



Incentives in exam or do I have them and fo ndi sos income                                                 (326)                             (953)

P remio seniority '                                                                                        (917)                            (1.833)

Spes and on to pas ni Buo                                                                                 (1.640)                           (1.812)

Spes and as s ICUR                                                                                        (1.402)                           (1.472)

Spending and participation in co rs it ie the people or it fo rmazio tional                                (136)                              (252)

Recovery fo rmazio it or pers nal es ercizi previous                                                        313                               298

Other expenditure                                                                                          (255)                              (293)

Total                                                                                                 (4 .3 6 3 )                        (6 .3 17 )


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




9.5 Other administrative expenses: breakdown




168
                                  Type ia lo g Se rv ices / should be the re   3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8


   A . A s pe n addition of Tiv and seamm inis                                              (9 3 .5 0 4 )                 (10 4 .18 0 )
   Rentals pas s there                                                                              (6.957)                        (6.707)

   Services pro fes s io nal co ns ulenze                                                           (3.174)                        (2.700)
   Cano ni cazio it the hardware, and other property so ftware                                      (2.142)                        (2.733)

   MAINTENANCE hardware, and other property so ftware                                               (1.926)                        (1.696)
   Co nduzio it immo Bili                                                                           (5.675)                        (6.401)

   MAINTENANCE immo able and plants                                                                 (2.208)                        (3.112)
   Co ntazio it, some trans RTO and its value re ges tio                                            (2.300)                        (2.531)

   Co ntributi as I know non-profit sector                                                           (897)                          (760)
   Info rmazio and vis ni ure                                                                       (1.466)                        (1.006)
   P erio say and go lights                                                                          (186)                          (232)
   Post                                                                                             (3.684)                        (3.351)
   P as s rowing ICUR                                                                               (4.573)                        (5.194)
   P UBLICATIONS and pro mo uncle                                                                   (2.583)                        (3.390)

   REP entanza                                                                                       (144)                          (165)
   Telephone techniques and data trans mis s I will                                                 (5.264)                        (6.315)

   Services or UTS or urcing                                                                        (3.765)                        (2.530)
   Spes and travel                                                                                  (1.836)                        (2.322)

   Cano ni s ervice res i know from Group companies                                             (39.070)                      (42.405)
   Spending and debt collection                                                                     (2.778)                        (2.749)

   Printing, stationery and mat. Co ns umo                                                           (966)                         (1.054)
   Tras bit RTI and the trans people                                                                 (736)                          (811)
   Surveillance                                                                                      (984)                         (1.123)
   Spes eo Peraza any of them aggregazio UBI                                                              -                        (4.686)
   Other expenditure                                                                                 (190)                          (207)

   B . Im call you little s tte                                                             (18 .5 2 6 )                   (18 .4 9 5 )
   - Impo s te tas if indirect                                                                       (777)                          (585)
   - Impo s te bo llo                                                                           (13.906)                      (14.050)
   - Impo town council co s te s ugli immo Bili                                                      (704)                          (694)
   - Other set s te                                                                                 (3.139)                        (3.166)
   Total                                                                                   (112 .0 3 0 )                 (12 2 .6 7 5 )

With effect from 1st January 2009 was repealed exemption from VAT provided for by Article. 6 Law 133/1999 for the
supply of services within banking groups. The impact on the income or loss under the tax amounts to about EUR 1.8 million.
The "cost of business combination UBI" refer primarily to the most recognized contribution to UBI.S for updating computer
systems.




                                                                                                                                     169
Section 10 Net provisions for risks and charges
                 - Item 160 -
10.2              Net provisions for risks and charges: breakdown


                                                                                                                                                                                                                                                    A cca na nt me nt
                                                                                                                                                                A cca na nt me nt                  R ia ni ttribuzio
                                                                                                                                                                                                                                                          net


Co ntro vers ie legal                                                                                                                                                              (853)                                      129                                      (724)

Tional burden on the people or                                                                                                                                                     (959)                                        -                                      (959)

Other funds                                                                                                                                                                       (1.070)                                     558                                      (512)

        ni revo per share in market Rie                                                                                                                                            (584)                                      358                                      (226)

Total                                                                                                                                                                      (2 .8 8 2 )                                   687                                     (2 .19 6 )




Section 11 adjustments of the value of tangible assets - Item 170 -
11.1Rettifiche impairment losses on assets: breakdown


                                                                                                        R ttific and he goes to the king
                                                               A mmo rta me nt                                                                              R IPRE if the king should             Result                net
                By activating eng / C om bit I nte    income                                                   pe r de te rio ra me nt                                                                                                                3 1 / 12 / 2 0 0 8
                                                                        (a )                                                                                            (c )                               (a +b - c )
                                                                                                                         (b)



A. Tangible assets

    A.1 per property                                                                      (8.328)                                           (396)                                           -                                       (8 .7 2 4 )                              (8.154)

          - For us or functional tional                                                   (7.079)                                           (396)                                           -                                       (7 .4 7 5 )                              (8.154)

          - P er INVES timento                                                            (1.249)                                                   -                                       -                                       (1.2 4 9 )                                      -

    A.2 ite in financial leas ing                                                                   -                                               -                                       -                                                -                                      -

           - For us or functional tional                                                            -                                               -                                       -                                                -                                      -

          - P er INVES timento                                                                      -                                               -                                       -                                                -                                      -

Total                                                                                 (8 .3 2 8 )                                        (3 9 6 )                                           -                                       (8 .7 2 4 )                            (8 .15 4 )


Regarding the impairment of tangible assets held for investment refers to as provided in Section 11 of the Act.


Section 12 Impairment / write-backs on intangible assets
                - Item 180 -
12.2            Net impairment losses on intangible assets: breakdown



                                                                                                               R ttific and he goes to the king
                 By activating quality / C om bit I                  A mmo rta me nt                                                                            R IPRE if the king should       Result                 net
                 nte                                  income                                                        pe r de te rio ra me nt                                                                                                       3 1 / 12 / 2 0 0 8
                                                                               (a )                                                                                        (c )                          (a +b - c )
                                                                                                                               (b)




A . By activating im ity but you will ria

    A.1 per property                                                                                    (51)                                                -                               -                                       (5 1)                                  (6 4 )

             - Generated internally by                                                                     -                                                -                               -                                           -                                       -

             - Other                                                                                    (51)                                                -                               -                                       (5 1)                                  (6 4 )

    A.2 ite in financial leas ing                                                                          -                                                -                               -                                           -                                       -

Total                                                                                           (5 1)                                                   -                                   -                                       (5 1)                                  (6 4 )




170
Section 13 Other net income - Page 190 -

13.1 Other operating expense: breakdown



                                       D and g tta lio O there or it will re tio of tot     3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8



Charges for co ntratti TES reria or public bodies                                                                (3.935)                        (3.477)

Charges for ning bo co n currency antergata                                                                        (467)                        (2.956)

Ammo rtamento miles Rie Leasehold                                                                                  (659)                          (697)

Other                                                                                                            (5.610)                        (6.125)

Total                                                                                                   (10 .6 7 1)                       (13 .2 5 6 )




13.2 Other operating income: breakdown



                                      D and O there tta lio g pro ve nts of it ges tio      3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8



Rental income on real estate Bili                                                                                   463                            495

Retrieve set of s ta llo bo and set s ta sos titutiva                                                            16.028                         16.106

S recovery and pes and other income on deposits and iti s co nti co rrente                                        4.083                          3.555

P ro twenty ning bo co n currency antergata                                                                          594                         3.110

P ro winds cardboard larizzazio it                                                                                    16                           249

Recovery of co s you know from Group companies                                                                    3.344                          5.624

Other pro's winds and recoveries and pes                                                                         11.455                         11.745

Total                                                                                                   3 5 .9 8 3                         4 0 .8 8 4




                                      S n bilateral or do I re / pro ges tio ve nts of it                    2 5 .3 11                     2 7 .6 2 8




In 2008, the "Recovery Costs to Society of the Working Group consisted of approximately EUR 3.3 million for recovery,
banks migrated to the target system, charges relating to the activities of assistance and training.




        171
Section 17 Income (loss) on disposal of investments - Item 240 -

17.1 Profit (loss) on disposal of investments: breakdown



                                       C om bit I nte   dditua the King / va ri   3 1 / 12 / 2 0 0 9            3 1 / 12 / 2 0 0 8



A. Immo Bili                                                                                                -                         305
    - Gains from fair trade I will s                                                                        -                         305

    - P oss I do to ces s                                                                                   -                           -

B . Other activities                                                                                     (40)                           4

    - Gains from fair trade I will s                                                                        1                           4

    - P oss I do to ces s                                                                                (41)                           -

R is ulta to it tto                                                                                    (4 0 )                        309




172
                                        Th
Section 18                              e               taxes                         on   income          year              operations
                                        - ITEM 260 -

18.1 Income tax from continuing operations: breakdown



                                                  C om nte bit it / it should be re                 3 1 / 12 / 2 0 0 9              3 1 / 12 / 2 0 0 8


1. Impo s te co rrenti (-)                                                                                               (32.662)                    (71.021)

2. Variation of it's set the previous example, you co rrenti ercizi (/ -)                                                    529                              -

3. Reduction of set do you co rrenti s Ex ercizio ()                                                                            -                             -

4. Variation of it s you set in advance (-)                                                                                1.485                         14.650

5. Variation of the set it's yourself liabilities (-)                                                                      5.049                         13.613

6. Set of co s te mpetenza ercizio Ex (-) (-1 / 3 -2 / -4 / -5)                                                          (25.599)                    (42.758)


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




18.2 Reconciliation of theoretical tax and actual tax burden

                                                                                                                                                         173
                                                                  IR ES                               Tax            IR ES                   %



One King            tax       IR ES      theoretical                                                  8 0 2 .17 0       (2 2 0 .5 9 7)       2 7 ,5 0 %

Variations in ni aum ento perm anenti                                                                        -                     -

  -     PAS is concerned there's no deductible n                                                          32.275                (8.876)           1,11%

  -     No blacks or other non-deductible                                                                 32.842                (9.031)           1,13%

  -     set s ta sos titutiva DL 185/08 ex art. 15                                                       146.445              (23.431)            2,92%

Variations in dim ni inuzio permeated anenti                                                                     -                       -

  -     dividends no tas n s ati                                                                        (97.842)                26.907           (3,35%)

  -     IRAP ata vers 2009 deductible                                                                   (10.717)                  2.947          (0,37%)

  -     plus values of fair trade participation ni s I do not tas n s Disabled (P EX)                   (84.970)                23.367           (2,91%)

  -     ni diminution in other variations it                                                            (10.041)                  2.761          (0,34%)

  -     fis Calita delayed return from realignments                                                    (146.445)                34.397           (4,29%)

  -     Rimbo rs or IRES 2004-2007 for non-deductibility IRAP DL185/08 art. 6                                    -              17.102           (2,13%)

  -     variation set ni s te es ercizio previous                                                                -                3.214          (0,40%)

One King            tax       IR ES      actual                                                       6 6 3 .7 18        (15 1.2 4 1)        18 ,8 5 %



                                                                  AP IR                               Tax            AP IR                   %



One King            tax       AP IR        theoretical                                                  8 0 .2 17            (3 .8 6 6 )      4 ,8 2 %

Variations in ni aum ento perm anenti                                                                            -                       -

  -     co s ti n p or tion no deductible for IRAP purposes                                              125.095                (6.030)           7,52%

  -     value adjustments re / n no credit losses deductible for IRAP purposes                            34.160                (1.647)           2,05%

  -     No blacks or other non-deductible                                                                 16.184                  (780)           0,97%

  - Interest is deductible therein pas s                                                                    4.580                 (221)           0,28%

  -     CES next several n no deductible                                                                    6.796                 (328)           0,41%

Variations in dim ni inuzio permeated anenti                                                                     -                       -

  -     Dividends                                                                                        (5.150)                    248          (0,31%)

  -     ni fis hauls deduzio Cuneo                                                                      (33.769)                  1.628          (2,03%)

  -     adjustments to low and set opment                                                                   (447)                      22        (0,03%)

  -     other variations ni                                                                                 (623)                      30        (0,04%)

  -     fis Calita delayed return from realignments                                                      (9.759)                    470          (0,59%)

  -     variation set ni s te es ercizio previous                                                                -                     (2)        0,00%

  -     Aggius treatment delta value king of pro aliquo ta tas d s ato 3.9% Royal Valley Ao it s ta              -                      3        (0,00%)

One King            tax       AP IR        actual                                                     2 17 .2 8 3        (10 .4 7 2 )        13 ,0 5 %

  - Blacks or other fixed drops                                                                                  -                     (4)    0 ,0 0 %

Total          or they re fis ca e ffe ttiva ES IR or IR and AP                                        8 0 .2 17         (2 5 .5 9 9 )        3 1,9 1%




174
Section 21 Earnings per share

The Bank's shares are not traded on financial markets, therefore, is not provided the information regarding earnings per share.

Below is a table of distribution of profits by specifying that the share for 2008 is due to the approval of on April 8, 2009 and
for 2009 the proposed allotment is pending.


                                                                              3 1 / 12 / 2 0 0 9                     3 1 / 12 / 2 0 0 8



Net income                                                                                            54.617.527                            111.490.445

in Ris Erva Law                                                                                        2.730.876                               5.574.522

RESULT S to Phaco Res Erva                                                                                 17.138                                 59.920



Profit from dis tributing

- No to 46,310,550 Actium ni res seems to me to                               or for stating that each Euro 0.0999   or for stating that each Euro 0.1635

                                                                                for a total of EUR 4,626,424 that       for a total of EUR 7,571,775 that

- No to 735,098,007 Actium ni or rdinarie                                     or for stating that each Euro 0.0581   or for stating that each Euro 0.1216

                                                                                    for to that of Euro 42,709,194         for to that of Euro 89,387,918

- No to 68,591,443 preferred Actium ni                                        or for stating that each Euro 0.0661   or for stating that each Euro 0.1297

                                                                                for a total of EUR 4,533,894 that       for a total of EUR 8,896,310 that




         175
Part D - Comprehensive income

Analytical statement of comprehensive income

                                                                                                   Tax
                                                                      Voices   Gross Amount                       Net amount
                                                                                                  income


   10. Net income (loss)                                                         X                  X                  54.618

       Other comprehensive income before tax

   20. Financial assets available for sale:                                           (7.635)              541         (7.094)

          a) fair value changes                                                         1.309              (13)         1.296

          b) Transfer to income statement                                             (8.944)              554         (8.390)

             - Adjustments for impairment                                                                                      -

             - Profit / loss on disposal                                              (8.944)              554         (8.390)

          c) other changes                                                                                                     -

   30. Tangible assets                                                                                                         -

   40. Intangible assets                                                                                                       -

   50. Hedges of foreign investments:                                                         -               -                -

          a) fair value changes                                                                                                -

          b) Transfer to income statement                                                                                      -

          c) other changes                                                                                                     -

   60. Cash flow hedges:                                                                      -               -                -

          a) fair value changes                                                                                                -

          b) Transfer to income statement                                                                                      -

          c) other changes                                                                                                     -

   70. Exchange rate differences:                                                             -               -                -

          a) changes in value                                                                                                  -

          b) Transfer to income statement                                                                                      -

          c) other changes                                                                                                     -

   80. Non-current assets held for sale:                                                      -               -                -

          a) fair value changes                                                                                                -

          b) Transfer to income statement                                                                                      -

          c) other changes                                                                                                     -

   90. Gains (losses) on defined benefit plans                                          (595)              164          (431)

  100. Quote of the valuation reserves of equity investments in equity:                       -               -                -

          a) fair value changes                                                                                                -

          b) Transfer to income statement                                                     -               -                -

             - Adjustments for impairment                                                                                      -

             - Profit / loss on disposal                                                                                       -

          c) other changes                                                                                                     -

  110. Total other income components                                                  (8.230)              705         (7.525)

  120. Comprehensive income (item 10110)                                                   X                 X         47.093




176
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 address the activities and
strategic control, management and technical-operational.

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

The key principles to which they refer analysis and risk management of the Group, in order to pursue a more conscious and
efficient allocation of economic capital and regulatory framework are:

     •    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 operations in financial derivatives:
      a) credit risk;
      b) market risks:
            • interest rate,
            • price,
            • exchange
      c) liquidity risk;
      d) operational risks.

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 Parent
Company from the Risk & Capital Policies in conjunction with the Area Claims, also collaborate in the drafting of policy
Macro Commercial Area, Area Risk Management and Area Studies. In policy credit is given particular attention to
maintaining an appropriate risk / return profile and risk-taking consistent with the risk appetite defined by senior
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


                                                                                                                               177
attention given to the maintenance of relations with customers and their development over time, are a strong point of the
group, encouraging the killing 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 things, 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
the network in determining the goal of creating value in a particular area / sector / counterparties and assessing the
creditworthiness of the counterparties.

The credit policies have been developed based on:
              -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 detection 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, guarantees received and expected recovery rates in case of insolvency.


2. Policies for managing credit risk

2.1 Organizational aspects
In the course of traditional 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 the
economy as a whole, the deteriorating financial condition of counterparties (illiquidity, insolvency, etc..) Or to change their
competitive position, the structural changes technology or the debtor firms, and other external factors (eg legislative changes,
deterioration of the value of collateral linked to the performance of the market). 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 have been structured units that run the credit, presents the following article:
    •    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)
         •    Unit 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

178
is also differentiated by customer segment (Retail / Private and Corporate) and specialized state of the same, "performing"
(administered by the Claims Unit Retail, Private and Corporate) and problematic (managed by the unit performing loans).
Within the Bank, 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 structures of the Credit, Macro Areas of Risk Control and
Strategic Planning and Development Area, the Debt Collection and Audit of Parent Company and Group, oversees the
management of policies, monitoring overall portfolio, at 'refinement of evaluation systems, 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 euro 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 the 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 and activities carried out directly on 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 and have an immediate perception of possible signs of trouble or
quality deterioration credit. 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 bands allocated to the counterparty risk and severity of abnormalities detected andamentali. The
structure - not involved in iterating the deliberative expectations - 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 the Area Loans - Credit Department 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 producing the information on the credit risk of the Bank,
designed to monitor the progress of the riskiness of lending. The report - submitted quarterly to the Board of Directors of the
Bank - describe the evolution of the decay rates of loans, showing the distribution by internal rating, LGD and expected loss
and thus the trend of the average risk-related portfolio credits, with a focus on the corporate market, and the retail market,
separately for companies and individuals.
The complex models that constitute the Group's internal rating system is managed from the Area Risk Management and the
Parent Loans.


     179
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 at the individual level of a 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 involves 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 primarily judgmental for large
credit lines (credit lines or business groups with more than 20 million €).

Within 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 facilities of central bank credits to the net
         change in 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 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 class regulatory exposures
"Companies and other entities" was chosen to take advantage, when available, the external evaluation of the credit provided
by Moody's and Lynx, recognized ECAI (External Credit Assessment Institution) by the Bank ' Italy.

For the process of calculating collective loans - consistent 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 the 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. Within the policy is
           normally also the risk of concentration

180
            single name, by establishing limits on exposure to individual counterparties 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 provision 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 order to ensure (through the establishment of
            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 related (credit, operational and
            reputational);
      •     Policy on portability, renegotiation, substitution and early repayment of loans brokered, with the mortgages
            brokered related to the operation based on 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
            defining the process of controlling the acquisition and use of mitigation techniques for credit risk mitigation in the
            subject.


2.4       Techniques to mitigate credit risk
The bank employs risk mitigation techniques typical of the acquiring bank by 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) - in accordance with the Circular of the Bank of Italy 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 Network Banks is no requirement for inclusion in the appropriate computer application
         available to operators, all the data for the property needed to make the guarantee Eligible. Particular attention was
         paid to the compulsory jurisdiction of the expertise and timeliness of information retrieval notary (notarial details
         of registration), critical for the completion of the warranty.


      181
      •   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.

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,
   •      ground,
   •      suffering.

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 assessment of the value adjustments 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."




182
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)


                                                                                                                                                                                                    O
                                                                                                                                                  Es bit izio s ni          Es bit izio s ni        THER
                                    P o rta g them fo / qua lity                                S o ffe re NZE         Substandard                                                                  E       activities        Total
                                                                                                                                                ris tructure you               Expired


1. Financial assets held for ziazio deny it                                                                      84                    1.974                            -                      27                  45.178       4 7 .2 6 3
2. Financial assets available for sale dis bit                                                                     -                        -                           -                       -                   2.712             2 .7 12
3. Financial assets held to ino s s cadence                                                                        -                        -                           -                       -                        -                  -

4. Loans to banks or                                                                                               -                        -                           -                       -              1.632.032     1.6 3 2 .0 3 2
5. Loans and advances to customers or                                                                      110.414                   117.780                 10.806                     46.227                 6.993.223     7 .2 7 8 .4 5 0
6. Financial assets at fair value                                                                                  -                        -                           -                       -                        -                  -
7. Financial assets or co rs dis mis s I will                                                                      -                        -                           -                       -                        -                  -

8. Derivatives co coverage                                                                                         -                        -                           -                       -                  55.903       5 5 .9 0 3
                                                                   Total   3 1 / 12 / 2 0 0 9            110 .4 9 8            119 .7 5 4                   10 .8 0 6                4 6 .2 5 4            8 .7 2 9 .0 4 8   9 .0 16 .3 6 0
                                                                   Total   3 1 / 12 / 2 0 0 8             9 3 .3 2 1             9 1.6 0 1                   1.8 4 1                   11.16 9             9 .6 0 9 .0 2 0   9 .8 0 6 .9 5 2




      183
A.1.2 Distribution of credit exposures by portfolio and credit quality (gross and net)


                                                                                                                         By activating ity de te rio ra
                                                                                                                                     you                                                                            Performing
                                                                                                                                                                                                                                                                             Total

                                    P o rta g them fo / qua lity                                                                                                                                                                                                        (Es s bit izio it
                                                                                                Some do Es s izio                Corrections                  Some do Es s izio       Some do Es s izio          R and h and ttific           Some do Es s izio               net)
                                                                                                    The rda                      s p c h IFIC                         Net                 The rda                 rta bit kr g lio                    Net


1. Financial assets held for ziazio deny it                                                                     2.085                                     -                   2.085         X                              X                                  45.178                  4 7 .2 6 3

2. Financial assets available for sale dis bit                                                                       -                                    -                       -                     2.712                             -                    2.712                        2 .7 12

3. Financial assets held to ino s s cadence                                                                          -                                    -                       -                          -                            -                         -                             -

4. Loans to banks or                                                                                                 -                                    -                       -                1.632.032                              -                 1.632.032             1.6 3 2 .0 3 2

5. Loans and advances to customers or                                                                         427.950                         (142.723)                     285.227                7.017.394                      (24.171)                  6.993.223            7 .2 7 8 .4 5 0

6. Financial assets at fair value                                                                                    -                                    -                       -         X                              X                                        -                             -

7. Financial assets or co rs dis mis s I will                                                                        -                                    -                       -                          -                            -                         -                             -

8. Derivatives co coverage                                                                                           -                                    -                       -         X                              X                                  55.903                  5 5 .9 0 3
                                                                   Total   3 1/ 12 / 2 0 0 9              4 3 0 .0 3 5                    (14 2 .7 2 3 )                2 8 7 .3 12             8 .6 5 2 .13 8                 (2 4 .17 1)           8 .7 2 9 .0 4 8              9 .0 16 .3 6 0

                                                                   Total   3 1 / 12 / 2 0 0 8             3 19 .9 3 6                      (12 2 .16 3 )                19 7 .7 7 3        9 .4 9 5 .13 1                      (2 7 .17 3 )           9 .6 0 9 .17 9             9 .8 0 6 .9 5 2




184
A.1.3                       Credit exposures and off-balance-sheet banks: gross and
net

                                                                                                                                                                                 Corrections              of
                                                                                                Some do Es s izio                     R and h and ttific                                                                 Some do Es s izio
                     Type lo g ie s bit izio ni es / va ri                                                                                                                              value
                                                                                                  the RDA                      goes the king s pe c h IFIC                                                                       Net
                                                                                                                                                                                   rta bit kr g lio

A . Es bit izio it s pe rcassa

     a) Bad debts                                                                                                          -                                               -                X                                                       -

      b) Substandard                                                                                                       -                                               -                X                                                       -

      c) Es bit izio s tructure will ris                                                                                   -                                               -                X                                                       -

      d) Es bit s s izio it falls                                                                                          -                                               -                X                                                       -

      e) Other assets                                                                                          1.632.033                          X                                                                -                    1.632.033

                                                                        Total        A                    1.6 3 2 .0 3 3                                               -                                           -               1.6 3 2 .0 3 3

B . Es bit s izio it FUO bilateral re n I

      a) deterioration rate                                                                                                -                                               -                X                                                       -

      b) Other                                                                                                   227.145                          X                                                                -                       227.145

                                                                        Total        B                       2 2 7 .14 5                                               -                                           -                    2 2 7 .14 5

                                                                      Total A+B                            1.8 5 9 .17 8                                               -                                           -                1.8 5 9 .17 8




A.1.6 Credit exposures to off-balance sheet and cash to customers: gross and net


                                                                                                      Some do Es s izio             Corrections                        value       R ttific and he goes to the king        Some do Es s izio
                              Type lo g ie s bit izio ni es / va ri
                                                                                                       the RDA                                        s p c h IFIC                           po rta f or g lio                    net



A . Some do Es s izio              pe rcassa

     a) Bad debts                                                                                                         228.511                                    (118.097)                   X                                           110.414

     b) Substandard                                                                                                       138.574                                     (20.793)                   X                                           117.781

     c) Es bit izio s tructure will ris                                                                                    13.513                                      (2.707)                   X                                             10.806

     d) Es bit s s izio it falls                                                                                           47.352                                      (1.125)                   X                                             46.227

     e) Other assets                                                                                                  7.031.159                          X                                                  (24.171)                       7.006.988

                                                                             Total         A                      7 .4 5 9 .10 9                               (14 2 .7 2 2 )                            (2 4 .17 1)                    7 .2 9 2 .2 16

B . Some do Es s izio              I nc re bila FUO

    a) deterioration rate                                                                                                  15.559                                      (1.169)                   X                                             14.390

    b) Other                                                                                                          1.406.231                          X                                                     (2.153)                     1.404.078

                                                                             Total         B                      1.4 2 1.7 9 0                                      (1.16 9 )                             (2 .15 3 )                   1.4 18 .4 6 8

                                                                         Total           A +B                    8 .8 8 0 .8 9 9                               (14 3 .8 9 1)                            (2 6 .3 2 4 )                   8 .7 10 .6 8 4




                                                                                                                                                                                                                                               185
A.1.7 Credit exposures due from customers for: changes in gross impaired loans


                                                                                                                                                   Es bit izio s ni            Es bit izio s ni
                                                       Them to us at C / C you go Rie     S o ffe re NZE            Substandard
                                                                                                                                                ris tructure you                 Expired


A . Es s izio bit it starts the rda                                                                  19 4 .5 5 7                  10 9 .9 0 2                     3 .15 7                   12 .3 2 0
    - Eg, some of which sold no s ni n izio deleted                                                          110                            -                              -                          -

B . Ria ni uncle to go in and um nt                                                                    7 4 .17 0                  16 8 .4 2 1                  4 5 .3 0 4                 14 8 .4 7 9

      .1 B input is from such little credit in bo s izio ni nis                                            18.059                     56.745                           3.085                 145.153
      .2 B trans series of injuries to other categories such as bit rate s izio ni dete                    49.916                     69.474                          12.676                       833

      B .3 ni Other variations on the rise                                                                  6.195                     42.202                          29.543                      2.493

C . Ria ni uncle goes to dim it inuzio                                                               (4 0 .2 16 )            (13 9 .7 4 9 )                  (3 4 .9 4 8 )              (113 .4 4 7 )

      C .1 us cite or vers es s izio little credit in bo ni nis                                                 -                   (19.081)                      (3.051)                    (35.381)

      C .2 ni CLEAR                                                                                    (21.155)                         (285)                          (768)                          -

      C .3 collections                                                                                 (19.061)                     (34.719)                     (23.069)                     (1.392)

      Ces to achieve C .4 s I ni                                                                                -                           -                              -                          -
      C .5 trans series of injuries to other categories such as bit rate s izio ni dete                         -                   (58.324)                               -                 (74.574)

      C .6 other variations ni diminution in its                                                                -                   (27.340)                      (8.060)                     (2.100)

D. Es bit izio it s fine to the RDA                                                                  2 2 8 .5 11                  13 8 .5 7 4                    13 .5 13                  4 7 .3 5 2

    - Eg, some of which sold no s ni n izio deleted                                                          848                       2.178                               -                      1.468




186
A.1.8 Credit exposures due from customers for: changes in total adjustments


                                                                                                                                                  Es bit izio s ni           Es bit izio s ni
                                                         Them to us at C / C you go Rie     S o ffe re NZE           Substandard
                                                                                                                                               ris tructure you                Expired


A. Ttific and R h com ple ss iv and start them                                                      (10 1.3 0 3 )             (18 .3 8 5 )                    (1.3 15 )                  (1.16 0 )
        - Of which: es s bit izio sold no ni n deleted                                                           -                         -                             -                          -

B . Ria ni uncle to go in and um nt                                                                  (4 7 .2 7 0 )            (17 .2 6 2 )                  (2 .4 5 5 )                 (1.4 0 2 )

B .1 value adjustments re                                                                                (35.904)                  (15.321)                          (973)                      (837)
.2 B trans series of injuries to other categories such as bit rate s izio it deteriorated                 (8.171)                      (711)                    (1.476)                           (9)

B .3 ni other variations on the rise                                                                      (3.195)                    (1.230)                           (6)                      (556)

C. It uncle ni ria in dim inuzio it                                                                    3 0 .4 7 6                  14 .8 5 4                   1.0 6 3                    1.4 3 7

C .1 recovery and value from re evaluation method                                                            4.101                      864                            14                        321

C .2 recovery and value from Inca king know                                                                  5.220                    4.339                           281                        112

C .3 ni CLEAR                                                                                             21.155                        285                           768                           -
C .4 trans series of injuries to other categories such as bit rate s izio it deteriorated                        -                    9.366                              -                  1.004

C .5 other variations ni diminution in its                                                                       -                         -                             -                          -

D. R and h ttific com ple ss iv and fine them                                                       (118 .0 9 7 )             (2 0 .7 9 3 )                 (2 .7 0 7 )                  (1.12 5 )

        - Of which: es s bit izio sold no ni n deleted                                                       (132)                      (80)                             -                       (26)




       187
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


                                                                                               C ra ting example of the SSI you rni

                           Es bit izio s ni                                                                                                                                             S and ra ting nza         Total
                                                      Class 1               Class 2              Class 3                      Class 4                 Class 5          Class 6


A . Es bit izio ni c re s pe tutions rcassa              5 6 7 .4 0 1       2 .3 4 5 .3 6 4        4 4 7 .7 7 7                   5 8 1.0 3 5            15 7 .8 8 1         2 .7 2 5         4 .8 2 2 .0 6 6   8 .9 2 4     .2 4 9

B . Derivatives                                                 10 4            6 4 .2 4 7                 4 .5 18                    7 .9 5 9                  847                 -              14 .4 3 8               9 2 .113

       B .1 Financial derivatives                                104                  64.247                4.518                         7.959                 847                 -                 14.438               9 2 .113

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

C . Ga sc ia ra nzie issued you                          18 0 .4 3 5           2 18 .0 4 7             6 4 .0 17                      2 5 .6 17            15 .19 2               10            2 9 6 .6 8 3         8 0 0 .0 0 1

D. Im p ro g re e ni g kr ndi                            2 8 5 .8 17              7 1.2 8 2          3 7 .7 4 6                   8 3 .8 6 8              3 5 .4 7 6                -             2 3 9 .13 6      7 5 3 .3 2 5

                                              Total    1.0 3 3 .7 5 7       2 .6 9 8 .9 4 0        5 5 4 .0 5 8                 6 9 8 .4 7 9            2 0 9 .3 9 6         2 .7 3 5         5 .3 7 2 .3 2 3   10 .5 6 9 .6 8 8




A.2.2 Distribution of the balance sheet exposures and off-balance sheet for internal rating classes

188
                                                                                                                                                                                 C ra ting the interest rni ssi


                                  Es bit izio s ni                                                                                                                                                                                                                                                                                                           S and ra ting nza         Total



                                                     R a ting 1       R a ting 2           R a ting 3            R a ting 4           R a ting 5            R a ting 6           R a ting 7                       R a ting 8           R a ting 9           R a ting 10        R a ting 11        R a ting 12         R a ting 13        R a ting 14




A . Es bit pe ni s izio rcassa                             83.839             24.811                639.464              827.272               223.942            1.382.896                     296.862                  492.816             1.133.496              525.305            343.873            110.540             294.672             47.405               2.497.057     8 .9 2 4     .2 4 9



B . Derivatives                                               273                     7                  1.306                4.171                  815                 5.773                     1.094                       2.278                5.701             2.196              2.268                  236             2.731                  155                63.108                9 2 .113



   B .1 Financial derivatives                                 273                     7                  1.306                4.171                  815                 5.773                     1.094                       2.278                5.701             2.196              2.268                  236             2.731                  155                63.108                 92.113



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



C . Ga sc ia ra nzie issued you                            23.956             15.239                116.695               46.861               145.225              139.281                      12.996                   37.574                34.275               20.120             17.281                  212             2.886              1.088                 186.310          8 0 0 .0 0 1



D. Im p ro g re e ni g               kr ndi                 5.319                  1.415                15.801            90.598                   69.689            72.937                      30.897                   22.334                27.399               17.421             47.171                  470            31.190              1.325                 319.359        7 5 3 .3 2 5


Total                                                   113 .3 8 7           4 1.4 7 2           7 7 3 .2 6 7         9 6 8 .9 0 3          4 3 9 .6 7 1       1.6 0 0 .8 8 8                 3 4 1.8 5 0             5 5 5 .0 0 2        1.2 0 0 .8 7 1        5 6 5 .0 4 2        4 10 .5 9 2         111.4 5 7          3 3 1.4 8 0         4 9 .9 7 3          3 .0 6 5 .8 3 4   10 .5 6 9 .6 8 8




Scale Master classes are made up of intervals of PD (Probability of Default) in which the PDs are mapped 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 49.5% of total balance sheet exposures with the internal ratings, while 5.3% is concentrated in the two classes most risk.
Class 6 is the largest in terms of exposure.
The class contains the unrated impaired. There are no exposures securitized.




              189
A.3 Distribution of exposures guaranteed by type of security

A.3.1 Credit exposures to banks


                                                                                                                                                                                                                                                                                                                          Warranties       pe rs or Na Li (2)




                                                                                                                                      Warranties            real (1)




                                                                                               Value                                                                                                                                                        D and will rev to suc king fingers                                                                                                                C King of fingers to firm
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Total (1) (2)
                                                                                    es while it's izio    net



                                                                                                                                                                                                                                                                                      O there de rev to you




                                                                                                                                                                                                                        Governments             banks             Other government                                                     O there                  Go there and ba rni n / h       Other government                                  O there
                                                                                                                                                                                                      king
                                                                                                                    Real Estate                    Titles                  A ga ra n addition nzie   them    C LN                                                                                             Banks                                                                                                                   Banks
                                                                                                                                                                                                                                      Central                           publish                                                          subjects                       Central                     publish                                          subjects




1. Es bit izio s ni c re tutions              pe ra rcassaga ntite




 1.1. to so secured                                                                                        6.311                  -                              6.311                                   -          -                                   -                                        -                    -                                     -                               -                             -                   -                 -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            6.311


              - Of which deterioration rate                                                                     -                 -                                    -                                 -          -                                   -                                        -                    -                                     -                               -                             -                   -                 -                   -


 1.2. partially secured                                                                                  330.788                  -                            330.161                                   -          -                                   -                                        -                    -                                     -                               -                             -                   -                 -         330.161


              - Of which deterioration rate                                                                     -                 -                                    -                                 -          -                                   -                                        -                    -                                     -                               -                             -                   -                 -                   -


2 . Es bit izio s ni c re tutions              "FUO bilateral re n I" ga ra ntite




 2.1. to so secured                                                                                             -                 -                                    -                                 -          -                                   -                                        -                    -                                     -                               -                             -                   -                 -                   -


              - Of which deterioration rate                                                                     -                 -                                    -                                 -          -                                   -                                        -                    -                                     -                               -                             -                   -                 -                   -


 2.2. partially secured                                                                                         -                 -                                    -                                 -          -                                   -                                        -                    -                                     -                               -                             -                   -                 -                   -


              - Of which deterioration rate                                                                     -                 -                                    -                                 -          -                                   -                                        -                    -                                     -                               -                             -                   -                 -                   -




190
A.3.2                                                                              Credit exposure to customers guaranteed


                                                                                                                                                                                                                                                                                                                                            Warranties   pe rs or Na Li (2)




                                                                                                                                                 Warranties            real (1)




                                                                                                                                                                                                                                                                              D and will rev to suc king fingers                                                                                                                    C King of fingers to firm

                                                                                                  Value
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Total   (1)+(2 )
                                                                                      es while it's izio       net                                                                                                                                                                                      O there de rev to you




                                                                                                                                                                                                                                          Governments             banks             Other government                                                     O there                  Governments             banks       Other government                                      O there
                                                                                                                       Real Estate                            Titles                  A n addition to them re ga ra nzie       C LN                                                                                             Banks                                                                                                                       Banks
                                                                                                                                                                                                                                                        Central                           publish                                                          subjects                             Central                   publish                                             subjects




1. Es bit izio s ni c re tutions                 pe ra rcassaga ntite




 1.1. to so secured                                                                                        4.469.157                 3.301.600                            54.569                                    1.688             -                                   -                                        -                    -                                     -                                   -                        1.367                    5.722                996.998           4 .3 6 1.9 4 4



              - Of which deterioration rate                                                                 176.327                   107.990                              2.861                                     170              -                                   -                                        -                    -                                     -                                   -                           51                     933                  61.810              17 3 .8 15




 1.2. partially secured                                                                                     228.493                       281                             16.891                                     766              -                                   -                                        -                    -                                     -                                   -                             -                   2.652                128.252              14 8 .8 4 2




              - Of which deterioration rate                                                                  12.394                       256                                323                                           -          -                                   -                                        -                    -                                     -                                   -                             -                    742                   7.849                  9 .17 0



2 . Es bit izio s ni c re tutions             "FUO bilateral re n I" ga ra ntite




 2.1. to so secured                                                                                         421.127                   214.441                              8.739                                    1.842             -                                   -                                        -                    -                                     -                                   -                             -                       -                106.355              3 3 1.3 7 7




              - Of which deterioration rate                                                                   4.827                       349                                 60                                           -          -                                   -                                        -                    -                                     -                                   -                             -                       -                  2.727                  3 .13 6




 2.2. partially secured                                                                                      14.322                          -                             1.385                                     985              -                                   -                                        -                    -                                     -                                   -                             -                    487                   3.402                 6 .2 5 9



              - Of which deterioration rate                                                                     108                          -                                    -                                        -          -                                   -                                        -                    -                                     -                                   -                             -                       -                    45                       45




                  191
B. DISTRIBUTION AND CONCENTRATION OF CREDIT EXPOSURE
B.1 Sectoral distribution of credit exposures in cash and off-balance "to customers (value)
                                                                                                                                                                                                                 S oc ie TY fine Rie Energy                                                                             n no fine Rie Energy
                                                                                                                  Governments      BanksCentral                      O there e nts publish                       Systems                                  Companies ic of ura ass uncle                     Companies                Systems                                   O there Sogge cts




                                     Es bit izio s ni / or C ntro pa rti




A . Es bit pe ni s izio rcassa

So A.1 fferenze                                                                                                                -       -          X                  -                     -   X                   293              (526)     X                     -               -     X                  66.260         (71.423)            X                   43.861              (46.148)      X

A.2 Substandard                                                                                                                -       -          X                  -                     -   X                    16                (15)    X                     -               -     X                  82.245         (16.984)            X                   35.520                 (3.795)    X

A.3 Es bit izio ni res s tructure                                                                                              -       -          X                  -                     -   X                      -                  -    X                     -               -     X                  10.806          (2.707)            X                          -                     -    X

A.4 Es bit izio s ni s falls                                                                                                   -       -          X                  -                     -   X                    71                 (6)    X                     -               -     X                  27.988            (593)            X                   18.168                  (526)     X

A.5 Other es ni izio bit s                                                                                            26.227       X                  -      240.714           X                       -      235.449         X                   (423)             -        X                  -        4.117.197         X                    (16.583)         2.387.401             X                  (7.165)

Total A                                                                                                           2 6 .2 2 7           -              -   2 4 0 .7 14                  -               -   2 3 5 .8 2 9           (5 4 7 )    (4 2 3 )          -                   -           -    4 .3 0 4 .4 9 6    (9 1.7 0 7 )       (16 .5 8 3 )      2 .4 8 4 .9 5 0        (5 0 .4 6 9 )    (7 .16 5 )

B . Es bit izio ni s "FUO bilateral re n I"

B .1 So fferenze                                                                                                               -       -          X                  -                     -   X                    51                 (1)    X                     -               -     X                     708          (1.082)            X                        18                      -    X

B .2 Substandard                                                                                                               -       -          X                  -                     -   X                      -                  -    X                     -               -     X                   6.440             (47)            X                        69                    (2)    X

B .3 Other deterioration rate                                                                                                  -       -          X                  -                     -   X                      -                  -    X                     -               -     X                   7.074             (37)            X                        30                      -    X

B .4 Other izio ni es bit s                                                                                           18.967       X                  -      270.907           X                    (8)         19.895        X                    (19)      1.393           X                (7)        1.045.173         X                     (2.050)            47.743             X                     (69)

Total B                                                                                                           18 .9 6 7            -              -   2 7 0 .9 0 7                 -            (8 )     19 .9 4 6                (1)         (19 )   1.3 9 3                   -         (7 )   1.0 5 9 .3 9 5        (1.16 6 )           (2 .0 5 0 )       4 7 .8 6 0                   (2 )        (6 9 )

                                                                           Total   (A +B )   3 1 / 12 / 2 0 0 9   4 5 .19 4            -              -    5 11.6 2 1                  -            (8 )   2 5 5 .7 7 5           (5 4 8 )    (4 4 2 )    1.3 9 3                   -         (7 )   5 .3 6 3 .8 9 1    (9 2 .8 7 3 )      (18 .6 3 3 )      2 .5 3 2 .8 10          (5 0 .4 7 1)    (7 .2 3 4 )

                                                                           Total   (A +B )   3 1 / 12 / 2 0 0 8   5 8 .9 5 8           -              -   6 13 .7 0 3                  -           (15 )   4 2 7 .7 7 9           (4 3 6 )    (5 5 7 )          -                   -           -    5 .7 2 0 .14 8     (7 6 .6 17 )       (18 .17 6 )       2 .4 5 5 .8 7 0        (4 7 .0 5 7 )    (9 .5 9 9 )




192
B.2 Breakdown of credit exposure in cash and off-balance "to customers (value)

                                                                                                               ITALY                                                A LTR IPA ES AND THE EUR OP                                                         AMERICA                                                         AS IA                                                 R ES EL M ON D TO DO


                   Es bit izio s ni / A King and geo ra fic h

                                                                                        Some do Es s izio                Corrections      value               Some do Es s izio                R ttific and he is the king              Some do Es s izio         Corrections       value           Some do Es s izio       Corrections          value                                                  Corrections      value
                                                                                                                                                                                                                                                                                                                                                               Some do Es s izio   net
                                                                                              net                           com ple ss iv and                      net                             com ple ss iv and                          net                     com ple ss iv and                    net                     com ple ss iv and                                                       com ple ss iv and


A . Es bit pe ni s izio rcassa

So A.1 fferenze                                                                                               110.272                           (117.158)                           142                                      (938)                                -                             -                              -                           -                                        -                                  (2)

A.2 Substandard                                                                                               117.611                             (20.777)                           121                                      (17)                                -                             -                              -                           -                                   49                                          -

A.3 Es bit izio ni res s tructure                                                                              10.806                              (2.707)                                 -                                        -                             -                             -                              -                           -                                        -                                      -

A.4 Es bit izio s ni s falls                                                                                   46.191                              (1.125)                            36                                            -                             -                             -                              -                           -                                        -                                      -

A.5 Other es ni izio bit s                                                                                   6.937.408                            (24.143)                        64.664                                      (26)                           269                                -                         797                              -                                3.850                                      (2)

TOTAL A                                                                                          7 .2 2 2      .2 8 8                      (16 5 .9 10 )                     64   .9 6 3                                (9 8 1)                             269                             -                           797                                -                             3 .8 9 9                                  (4 )

B . Es bit izio ni s "FUO bilateral re n I"

B .1 So fferenze                                                                                                  776                              (1.083)                                 -                                        -                             -                             -                              -                           -                                        -                                      -

B .2 Substandard                                                                                                6.509                                  (49)                                -                                        -                             -                             -                              -                           -                                        -                                      -

B .3 Other deterioration rate                                                                                   7.105                                  (37)                                -                                        -                             -                             -                              -                           -                                        -                                      -

B .4 s izio some other es ni                                                                                 1.400.539                             (2.153)                         3.467                                            -                         3                                 -                          69                              -                                        -                                      -

TOTAL B                                                                                             1.4 14     .9 2 9                           (3 .3 2 2 )                   3   .4 6 7                                        -                             3                             -                             69                               -                                    -                                      -

                                              Total      (A +B )   3 1 / 12 / 2 0 0 9                 8 .6 3 7 .2 17                       (16 9 .2 3 2 )                    68   .4 3 0                                (9 8 1)                             272                             -                           866                                -                             3 .8 9 9                                  (4 )

                                              Total      (A +B )   3 1 / 12 / 2 0 0 8            9 .2 18       .5 5 4                       (15 1.7 13 )                     53   .0 0 6                               (7 4 3 )                             224                             -                           926                              (1)                             3 .7 4 8                                  (1)




                                                                                                                                                                                                                                                                                                                                                                                                                                 193
B.3 Distribution of credit exposure in cash and off-balance to banks (value)

                                                                                                                   ITALY                                               A LTR IPA ES AND THE EUR OP                                                         AMERICA                                                         AS IA                                                 R ES EL M ON D TO DO


                    Es bit izio s ni / A King and   geo ra fic h
                                                                                           Some do Es s izio                    Corrections      value           Some do Es s izio                   R ttific and he is the king           Some do Es s izio       Corrections        value           Some do Es s izio              Corrections       value              Some do Es s izio        Corrections        value
                                                                                                  net                              com ple ss iv and                  net                                com ple ss iv and                       net                   com ple ss iv and                     net                         com ple ss iv and                       net                    com ple ss iv and


A . Es bit pe ni s izio rcassa

So A.1 fferenze                                                                                                             -                                -                                   -                                     -                           -                              -                                  -                                -                             -                           -

A.2   Substandard                                                                                                           -                                -                                   -                                     -                           -                              -                                  -                                -                             -                           -

A.3   Es bit izio ni res s tructure                                                                                         -                                -                                   -                                     -                           -                              -                                  -                                -                             -                           -

A.4   Es bit izio s ni s falls                                                                                              -                                -                                   -                                     -                           -                              -                                  -                                -                             -                           -

A.5   Other es ni izio bit s                                                                                   1.622.825                                     -                           8.212                                         -                           -                              -                            996                                    -                             -                           -

TOTAL A                                                                                                 1.6 2 2    .8 2 5                                -                            8 .2 12                                      -                           -                              -                             996                                   -                            -                                -

B . Es bit izio ni s "FUO bilateral re n I"

B .1 So fferenze                                                                                                            -                                -                                   -                                     -                           -                              -                                  -                                -                             -                           -

B .2 Substandard                                                                                                            -                                -                                   -                                     -                           -                              -                                  -                                -                             -                           -

B .3 Other deterioration rate                                                                                               -                                -                                   -                                     -                           -                              -                                  -                                -                             -                           -

B .4 s izio some other es ni                                                                                      100.673                                    -                         120.264                                         -                           -                              -                          5.361                               (5)                           847                            (1)

TOTAL B                                                                                                   10 0     .6 7 3                                -                       12 0 .2 6 4                                       -                           -                              -                            5 .3 6 1                            (5 )                           847                             (1)

                                               Total        (A +B )   3 1 / 12 / 2 0 0 9                1.7 2 3    .4 9 8                                -                       12 8 .4 7 6                                       -                           -                              -                           6 .3 5 7                             (5 )                           847                             (1)

                                               Total        (A +B )   3 1 / 12 / 2 0 0 8                   2 .19 6 .16 0                                 -                           6 6 .3 16                                     -                           -                              -                           5 .3 2 4                                -                            1                                -




194
B.4 Large exposures


                      3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8


Amount                                     986.483                   1.057.339
Number                                          7                            8




     195
C. Securitisation and asset disposals


C.1 Securitisation
There were no securitization transactions.




Sales of C.2

There were no disposals.


C.3 covered bond
During the month of September 2009, the Parent UBI Bank has released the first public issue, one billion euro, of covered
bonds (covered bonds) in a program of up to 10 billion euro, launched in July 2008 with the first sales of loans made by the
European Regional Bank and Banco di Brescia.
At the end of 2009 he joined the program also Banca Popolare di Bergamo, while Banca Regionale Europea, together with
the Banco di Brescia, has sold a further stake of its mortgage portfolio to serve the second public issue, again for a billion
euro , made in December 2009.

The following are the characteristics of two issues:

                                                        Date              Date
               Title                                   emission          expiry        Nominal value              Coupon
 UBI BANCA 3.625%          Two CB 09/23/2016            23/09/2009      23/09/2016          1.000.000.000,00       36.250.000,00

 UBI BANCA 4.000%          Two CB 16/12/2019            16/12/2009      16/12/2019          1.000.000.000,00       40.000.000,00


Both issues have been rated AAA / Aaa by Fitch and Moody's.

The program structure is as follows: a special purpose vehicle was established, that UBI Finance Ltd as guarantor of the
emissions made by UBI Bank has acquired a portfolio of residential mortgage loans sold by banks in the Group's network
program participants or as Originator banks, which as Lending Banks.
The role of the Master Servicer, the Calculation Agent and the Cash Manager is held by the parent company, while the
Paying Agent is done by Bank of New York; UBI Bank has also delegated to each Originator Bank, acting as sub-servicer,
the activities of servicing activities related to collection management and customer relations for the assigned portfolio.

At the time, as noted above, are part of the Banco di Brescia, Banca Regionale Europea and Banca Popolare di Bergamo,
which play the role of swap counterparties in swap agreements guarantee balance with the special purpose vehicle in order to
normalize the cash flows generated by the mortgage portfolio.

The portfolio of emissions to ensure that accounting has been entered in the assets of each bank's transferor to 31/12/2009
amounted to over EUR 3.6 billion of outstanding debt capital, of which 698 million originated by Banca Regionale Europea.

During the year 2009 BRE relevance of this portfolio has generated total collections for about 82 million euro.

196
For the activity of subservicing each Originator receives compensation commensurate with the size of the managed portfolio
and receipts, such compensation for 2009 amounted to approximately 215 000 Banca Regionale Europea euro.




     197
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 but did
not fall o in the 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."




198
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


                   Type / Remaining                   Overnight       Up to 3 months          For more than 3 months For more than 6 months     For more than 1 year       For over 5 years       Over 10 years             Duration
                                                                                                  up to 6 months            up to 1 year           up to 5 years            up to 10 years                                  indefinite


1. Cash assets                                                    -                220.187                     127.322                      -                          1                      -                         -                     -
1.1    Debt                                                       -                       -                        11.037                   -                          1                      -                         -                     -
      - With early redemption option                              -                       -                             -                   -                          -                      -                         -                     -
      - Other                                                     -                       -                        11.037                   -                          1                      -                         -                     -
1.2    Other activities                                           -                220.187                     116.285                      -                          -                      -                         -                     -
2. Balance-sheet liabilities                                      -                       -                             -                   -                          -                      -                         -                     -
2.1    PCT income                                                 -                       -                             -                   -                          -                      -                         -                     -
2.2    Other liabilities                                          -                       -                             -                   -                          -                      -                         -                     -
3. Financial derivatives                                          -               (685.151)                        14.060              19.030                  187.127                 184.329                    215.616                64.991
3.1    With underlying                                            -                       -                             -                   -                          -                      1                         -                     -
- Options                                                         -                       -                             -                   -                          -                      1                         -                     -
      - Long positions                                            -                       -                             -                   -                          -                      1                         -                     -
      - Short Positions                                           -                       -                             -                   -                          -                      -                         -                     -
- Other derivatives                                               -                       -                             -                   -                          -                      -                         -                     -
      - Long positions                                            -                       -                             -                   -                          -                      -                         -                     -
      - Short Positions                                           -                       -                             -                   -                          -                      -                         -                     -
3.2    Without underlying                                         -               (685.151)                        14.060              19.030                  187.127                 184.328                    215.616                64.991
- Options                                                         -                       -                             -                   -                          -                      -                         -                     -
      - Long positions                                            -                364.326                     309.123                 65.735                  377.392                 120.681                      2.122                     -
      - Short Positions                                           -                364.326                     309.123                 65.735                  377.392                 120.681                      2.122                     -
- Other derivatives                                               -               (685.151)                        14.060              19.030                  187.127                 184.328                    215.616                64.991
      - Long positions                                            -               1.156.315                    683.855                 44.406                  386.533                 233.861                    226.631                65.067
      - Short Positions                                           -               1.841.466                    669.795                 25.376                  199.406                  49.533                     11.015                   76




        199
1.2 Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities for cash and derivatives - Currency USD


                                                                                             For more than 3   For more than 6
                  Type / Remaining                     Overnight        Up to 3 months               months            months For more than 1 year   For over 5 years   Over 10 years       Duration
                                                                                             up to 6 months       up to 1 year      up to 5 years      up to 10 years                          indefinite

1. Cash assets                                                     -                     -                 -                 -                   -                  -                   -               -
1.1 Debt                                                           -                     -                 -                 -                   -                  -                   -               -
      - With early redemption option                               -                     -                 -                 -                   -                  -                   -               -
      - Other                                                      -                     -                 -                 -                   -                  -                   -               -
1.2 Other activities                                               -                     -                 -                 -                   -                  -                   -               -
2. Balance-sheet liabilities                                       -                     -                 -                 -                   -                  -                   -               -
2.1 PCT income                                                     -                     -                 -                 -                   -                  -                   -               -
2.2 Other liabilities                                              -                     -                 -                 -                   -                  -                   -               -
3. Financial derivatives                                           -                     -                 -                 -                   -                  -                   -               -
3.1 With underlying                                                -                     -                 -                 -                   -                  -                   -               -
- Options                                                          -                     -                 -                 -                   -                  -                   -               -
      - Long positions                                             -                     -                 -                 -                   -                  -                   -               -
      - Short Positions                                            -                     -                 -                 -                   -                  -                   -               -
- Other derivatives                                                -                     -                 -                 -                   -                  -                   -               -
      - Long positions                                             -                     -                 -                 -                   -                  -                   -               -
      - Short Positions                                            -                     -                 -                 -                   -                  -                   -               -
3.2 Without underlying                                             -                     -                 -                 -                   -                  -                   -               -
- Options                                                          -                     -                 -                 -                   -                  -                   -               -
      - Long positions                                             -            37.554                 7.011            28.495                   -                  -                   -               -
      - Short Positions                                            -            37.554                 7.011            28.495                   -                  -                   -               -
- Other derivatives                                                -                     -                 -                 -                   -                  -                   -               -
      - Long positions                                             -            11.604                 2.048              139                    -                  -                   -               -
      - Short Positions                                            -            11.604                 2.048              139                    -                  -                   -               -




200
1.3 Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities for cash and derivatives - Currency CHF


                                                                                            For more than 3   For more than 6
                 Type / Remaining                      Overnight       Up to 3 months               months            months For more than 1 year   For over 5 years   Over 10 years       Duration
                                                                                            up to 6 months       up to 1 year      up to 5 years      up to 10 years                          indefinite

1. Cash assets                                                     -                    -                 -                 -                   -                  -                   -               -
1.1 Debt                                                           -                    -                 -                 -                   -                  -                   -               -
    - With early redemption option                                 -                    -                 -                 -                   -                  -                   -               -
    - Other                                                        -                    -                 -                 -                   -                  -                   -               -
1.2 Other activities                                               -                    -                 -                 -                   -                  -                   -               -
2. Balance-sheet liabilities                                       -                    -                 -                 -                   -                  -                   -               -
2.1 PCT income                                                     -                    -                 -                 -                   -                  -                   -               -
2.2 Other liabilities                                              -                    -                 -                 -                   -                  -                   -               -
3. Financial derivatives                                           -                    -                 -                 -                   -                  -                   -               -
3.1 With underlying                                                -                    -                 -                 -                   -                  -                   -               -
- Options                                                          -                    -                 -                 -                   -                  -                   -               -
    - Long positions                                               -                    -                 -                 -                   -                  -                   -               -
    - Short Positions                                              -                    -                 -                 -                   -                  -                   -               -
- Other derivatives                                                -                    -                 -                 -                   -                  -                   -               -
    - Long positions                                               -                    -                 -                 -                   -                  -                   -               -
    - Short Positions                                              -                    -                 -                 -                   -                  -                   -               -
3.2 Without underlying                                             -                    -                 -                 -                   -                  -                   -               -
- Options                                                          -                    -                 -                 -                   -                  -                   -               -
    - Long positions                                               -             1.348                    -                 -                   -                  -                   -               -
    - Short Positions                                              -             1.348                    -                 -                   -                  -                   -               -
- Other derivatives                                                -                    -                 -                 -                   -                  -                   -               -
    - Long positions                                               -                    -                 -                 -                   -                  -                   -               -
    - Short Positions                                              -                    -                 -                 -                   -                  -                   -               -




      201
1.4 Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities for cash and derivatives - Currency JPY


                                                                                         For more than 3   For more than 6
                  Type / Remaining                     Overnight        Up to 3 months           months            months For more than 1 year   For over 5 years   Over 10 years       Duration
                                                                                         up to 6 months       up to 1 year      up to 5 years      up to 10 years                          indefinite

1. Cash assets                                                     -                 -                 -                 -                   -                  -                   -               -
1.1 Debt                                                           -                 -                 -                 -                   -                  -                   -               -
      - With early redemption option                               -                 -                 -                 -                   -                  -                   -               -
      - Other                                                      -                 -                 -                 -                   -                  -                   -               -
1.2 Other activities                                               -                 -                 -                 -                   -                  -                   -               -
2. Balance-sheet liabilities                                       -                 -                 -                 -                   -                  -                   -               -
2.1 PCT income                                                     -                 -                 -                 -                   -                  -                   -               -
2.2 Other liabilities                                              -                 -                 -                 -                   -                  -                   -               -
3. Financial derivatives                                           -                 -                 -                 -                   -                  -                   -               -
3.1 With underlying                                                -                 -                 -                 -                   -                  -                   -               -
- Options                                                          -                 -                 -                 -                   -                  -                   -               -
      - Long positions                                             -                 -                 -                 -                   -                  -                   -               -
      - Short Positions                                            -                 -                 -                 -                   -                  -                   -               -
- Other derivatives                                                -                 -                 -                 -                   -                  -                   -               -
      - Long positions                                             -                 -                 -                 -                   -                  -                   -               -
      - Short Positions                                            -                 -                 -                 -                   -                  -                   -               -
3.2 Without underlying                                             -                 -                 -                 -                   -                  -                   -               -
- Options                                                          -                 -                 -                 -                   -                  -                   -               -
      - Long positions                                             -                 -                 -                 -                   -                  -                   -               -
      - Short Positions                                            -                 -                 -                 -                   -                  -                   -               -
- Other derivatives                                                -                 -                 -                 -                   -                  -                   -               -
      - Long positions                                             -                 -               225                 -                   -                  -                   -               -
      - Short Positions                                            -                 -               225                 -                   -                  -                   -               -




1.5 Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities for cash and derivatives - Currency HKD

202
                 Type / Remaining    Overnight        Up to 3 months            For more than three months over 6 months for over 1 year over 5 years                    Over 10 years       Duration
                                                                                 up to 6 months       up to 1 year            up to 5 years         up to 10 years                           indefinite


1. Cash assets                                   -                         -                        -                      -                      -                  -                   -                -
1.1 Debt                                          -                         -                       -                      -                      -                  -                   -                -
    - With early redemption option               -                         -                        -                      -                      -                  -                   -                -
    - Other                                      -                         -                        -                      -                      -                  -                   -                -
1.2 Other activities                             -                         -                        -                      -                      -                  -                   -                -
2. Balance-sheet liabilities                     -                         -                        -                      -                      -                  -                   -                -
2.1 PCT income                                   -                         -                        -                      -                      -                  -                   -                -
2.2 Other liabilities                            -                         -                        -                      -                      -                  -                   -                -
3. Financial derivatives                         -                         -                        -                      -                      -                  -                   -                -
3.1 With underlying                              -                         -                        -                      -                      -                  -                   -                -
- Options                                        -                         -                        -                      -                      -                  -                   -                -
    - Long positions                             -                         -                        -                      -                      -                  -                   -                -
    - Short Positions                            -                         -                        -                      -                      -                  -                   -                -
- Other derivatives                              -                         -                        -                      -                      -                  -                   -                -
    - Long positions                             -                         -                        -                      -                      -                  -                   -                -
    - Short Positions                            -                         -                        -                      -                      -                  -                   -                -
3.2 Without underlying                           -                         -                        -                      -                      -                  -                   -                -
- Options                                        -                         -                        -                      -                      -                  -                   -                -
    - Long positions                             -                         -                        -                      -                      -                  -                   -                -
    - Short Positions                            -                         -                        -                      -                      -                  -                   -                -
- Other derivatives                              -                         -                        -                      -                      -                  -                   -                -
    - Long positions                             -                     8.310                        -                      -                      -                  -                   -                -
    - Short Positions                            -                     8.310                        -                      -                      -                  -                   -                -




      203
2. Regulatory trading portfolio: distribution of exposures in equities and equity indices for the major countries of the
    listing market

                                                                                                       Quote


                       Type lo g ra pe ia or uncle ni / indicators and listing                                         D o you quo ta
                                                                                                      ITALY



A . Tito to them about the pita                                                                                21                       -

     - Po s izio ni long                                                                                       21                       -

     - Po rt s izio ni co                                                                                          -                    -

B . C om pra ve ndite               no na ra n or the King you go       tito on them by the ca pita            -                        -

     - Po s izio ni long                                                                                           -                    -

     - Po rt s izio ni co                                                                                          -                    -

C . O there to rev you up de tito them of the ca pita                                                          1                        -

     - Po s izio ni long                                                                                           1                    -

     - Po rt s izio ni co                                                                                          -                    -

D. Rev D and I to re-index ia uncle na                                                                         -                        -

     - Po s izio ni long                                                                                           -                    -
     - Po rt s izio ni co                                                                                          -                    -




3.     Regulatory trading portfolio: internal models and other methods of sensitivity analysis
The trading book for the Supervision of the European Regional Bank is composed mainly of government securities as
collateral, corporate bonds and certain derivative transactions with the parent company.
Please note that at the end of December, the total VaR of the trading portfolio was EUR 2613 EUR with a NAV of around
11.05 million euro (average VaR in 2009 of 16 981 euro).




204
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 in interest rates that impact the banking book.
The measurement, monitoring and reporting of exposure to interest rate risk are made from the Risk Management of the
Parent Company, which supplies 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 through an analysis of static gap (that is, assuming that the positions are constant during the period), an
                analysis of the sensitivity 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 interest 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 reinvestment / refinancing flows due to the effect related to the elasticity and
viscosity of sight items. The factors of elasticity and 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, were subject to fixed rate
loans to cover more than one year (hedged) for a total of about 292 million euro in the denomination, and the bonds
(hedging) and zero coupon fixed rate for a total of about 501 million euro in the denomination. The derivatives used were of
the type interest rate swaps.
The verification of the effectiveness of the shell is carried from the Risk Management of the Parent. In detail, the tests are
carried out effectively in accordance with International Accounting Standards by testing horizon for the cover, followed by
back-testing performed on a monthly basis.


C. Hedging of cash flows
In the budget of the European Regional Bank there are no reports of cash flow hedges (cash flow hedge).




                                                                                                                            205
Quantitative information
Banking 1.1 distribution for residual maturity (the date of repricing) of assets and liabilities - Currency EURO
                                                                                                                                                                                                                                               In
                                                                                                               D n addition to or 3
                                                                                                                                                                                                                                               additio
                                                                                                               months                       D n addition to or 6 months     D ao n addition to a nno       D ao n addition to 5 nni                                                     Duration
                 Type lo g ia / D re s ta ura IDUA   Overnight                F ino   3 months                                                                                                                                                 n       10 a nni
                                                                                                                up     6 months                   up to 1 Y ear                  up to 5 to nni                up to 10 to nni                                                      inde you rm ina ta



1.    By activating ity pe rcassa                           4 .7 8 9 .3 4 2               2 .6 12 .0 0 7                        2 8 2 .2 0 2                      16 .2 5 4                    2 2 7 .0 6 2                      19 1.17 6                        6 3 2 .17 6                            1
1.1 Tito them debt                                                        -                        12.045                               36.008                                 -                        1.266                              -                                    -                        1

     - No co pzio Rimbo it to rs or early                                 -                                -                                   -                               -                            -                              -                                    -                        -
     - Other                                                              -                        12.045                               36.008                                 -                        1.266                              -                                    -                        1
1.2 Loans to banks                                               1.182.143                        221.925                             141.577                             270                          12.500                              -                                    -                        -
1.3 Loans to customers                                           3.607.199                       2.378.037                            104.617                        15.984                       213.296                          191.176                           632.176                             -
     - c/c                                                       1.584.893                                 -                                   -                               -                            -                              -                                    -                        -
     - Other funds                                               2.022.306                       2.378.037                            104.617                        15.984                       213.296                          191.176                           632.176                             -
      - No co pzio Rimbo it to rs or early                        960.762                        2.365.839                              88.336                       15.445                       186.956                          175.544                           581.255                             -
      - Other                                                    1.061.544                         12.198                                16.281                           539                          26.340                         15.632                           50.921                            -
2.    P ass iv ity pe rcassa                                5 .3 6 4 .2 5 5                1.16 1.6 0 4                         6 0 5 .7 6 9                    2 3 5 .0 9 7                    8 2 4 .5 11                               -                                 -                            -
2.1 Amounts owed to customers or                                 5.088.771                         220.331                            116.377                             768                               -                              -                                    -                        -
     - c/c                                                       4.948.918                                 -                                121                                -                            -                              -                                    -                        -
     - Other payables                                             139.853                          220.331                            116.256                             768                               -                              -                                    -                        -
      - No co pzio Rimbo it to rs or early                                -                                -                                   -                               -                            -                              -                                    -                        -
      - Other                                                     139.853                          220.331                            116.256                             768                               -                              -                                    -                        -
2.2 Due to banks or                                               273.730                                  -                                19                            13                             348                               -                                    -                        -
     - c/c                                                          85.856                                 -                                   -                               -                            -                              -                                    -                        -
     - Other payables                                             187.874                                  -                                19                            13                             348                               -                                    -                        -
2.3 Tito them debt                                                   1.754                        941.273                             489.373                      234.316                        824.163                                  -                                    -                        -
     - No co pzio Rimbo it to rs or early                                 -                                -                                   -                               -                            -                              -                                    -                        -
     - Other                                                         1.754                        941.273                             489.373                      234.316                        824.163                                  -                                    -                        -
2.4 Other pas s CALLS                                                     -                                -                                   -                               -                            -                              -                                    -                        -
     - No co pzio Rimbo it to rs or early                                 -                                -                                   -                               -                            -                              -                                    -                        -
     - Other                                                              -                                -                                   -                               -                            -                              -                                    -                        -
3.    D and to rev you re fine Energy Systems                             -                      9 0 .5 4 1                     (4 2 2 .110 )                   13 9 .9 4 9                    5 5 9 .2 7 9                   (16 8 .17 3 )                   (19 9 .4 8 6 )                             -
3.1 Co tto n tito I know a lot of s                                       -                                -                                   -                               -                            -                              -                                    -                        -
     - Options                                                            -                                -                                   -                               -                            -                              -                                    -                        -
      P os izio ni long                                                   -                                -                                   -                               -                            -                              -                                    -                        -
      P izio ni os co rte                                                 -                                -                                   -                               -                            -                              -                                    -                        -
     - Other derivatives                                                  -                                -                                   -                               -                            -                              -                                    -                        -
      P os izio ni long                                                   -                                -                                   -                               -                            -                              -                                    -                        -
      P izio ni os co rte                                                 -                                -                                   -                               -                            -                              -                                    -                        -
3.2 Without Tito I know many tto s                                        -                         90.541                            (422.110)                    139.949                        559.279                        (168.173)                         (199.486)                             -
     - Options                                                            -                                -                                   -                               -                            -                              -                                    -                        -
      P os izio ni long                                                   -                                -                               420                        5.000                              420                               -                                    -                        -
      P izio ni os co rte                                                 -                                -                               420                        5.000                              420                               -                                    -                        -
     - Other derivatives                                                  -                         90.541                            (422.110)                    139.949                        559.279                        (168.173)                         (199.486)                             -
      P os izio ni long                                                   -                       922.893                               298.901                    199.953                        837.693                                  -                                    -                        -

      P izio ni os co rte                                                 -                       832.352                               721.011                      60.004                       278.414                          168.173                           199.486                             -




206
Banking 1.2 distribution for residual maturity (the date of repricing) of assets and liabilities - Currency USD


                                                                                                               For over     3 months        D n addition to or 6             D 1 to n addition to or       D ao n addition to 5 nni                                    Duration
                 Type lo g ia / D re s ta ura IDUA   Overnight               F ino   3 months                                                 months to 1 Y ear                up to 5 to nni nno                                             Over 10 years
                                                                                                                 up     6 months                                                                               up to 10 to nni                                    inde you rm ina ta



1.    By activating ity pe rcassa                                2 6 .14 1                      4 .3 12                                60                          209                                 -                              -                       -                        -
1.1 Tito them debt                                                       -                                 -                            -                                -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                                -                                 -                            -                                -                             -                                  -                   -                        -
     - Other                                                             -                                 -                            -                                -                             -                                  -                   -                        -
1.2 Loans to banks                                                 21.453                            393                                -                                -                             -                                  -                   -                        -
1.3 Loans to customers                                              4.688                          3.919                               60                           209                                -                                  -                   -                        -
     - c/c                                                             351                                 -                            -                                -                             -                                  -                   -                        -
     - Other funds                                                  4.337                          3.919                               60                           209                                -                                  -                   -                        -
      - No co pzio Rimbo it to rs or early                               -                                 -                            -                                -                             -                                  -                   -                        -
      - Other                                                       4.337                          3.919                               60                           209                                -                                  -                   -                        -
2.    P ass iv ity pe rcassa                                     2 5 .18 8                      4 .8 2 9                               85                            8                                 -                              -                       -                        -
2.1 Amounts owed to customers or                                   21.513                            317                                -                            8                                 -                                  -                   -                        -
     - c/c                                                         21.513                            278                                -                                -                             -                                  -                   -                        -
     - Other payables                                                    -                            39                                -                            8                                 -                                  -                   -                        -
      - No co pzio Rimbo it to rs or early                               -                                 -                            -                                -                             -                                  -                   -                        -
      - Other                                                            -                            39                                -                            8                                 -                                  -                   -                        -
2.2 Due to banks or                                                 3.649                          4.512                                -                                -                             -                                  -                   -                        -
     - c/c                                                               -                                 -                            -                                -                             -                                  -                   -                        -
     - Other payables                                               3.649                          4.512                                -                                -                             -                                  -                   -                        -
2.3 Tito them debt                                                     26                                  -                           85                                -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                                -                                 -                            -                                -                             -                                  -                   -                        -
     - Other                                                           26                                  -                           85                                -                             -                                  -                   -                        -
2.4 Other pas s CALLS                                                    -                                 -                            -                                -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                                -                                 -                            -                                -                             -                                  -                   -                        -
     - Other                                                             -                                 -                            -                                -                             -                                  -                   -                        -
3.    D and to rev you re fine Energy Systems                            -                             -                                -                             -                                -                              -                       -                        -
3.1 Co tto n tito I know a lot of s                                      -                                 -                            -                                -                             -                                  -                   -                        -
     - Options                                                           -                                 -                            -                                -                             -                                  -                   -                        -
      P os izio ni long                                                  -                                 -                            -                                -                             -                                  -                   -                        -
      P izio ni os co rte                                                -                                 -                            -                                -                             -                                  -                   -                        -
     - Other                                                             -                                 -                            -                                -                             -                                  -                   -                        -

      P os izio ni long                                                  -                                 -                            -                                -                             -                                  -                   -                        -
      P izio ni os co rte                                                -                                 -                            -                                -                             -                                  -                   -                        -

3.2 Without Tito I know many tto s                                       -                                 -                            -                                -                             -                                  -                   -                        -
     - Options                                                           -                                 -                            -                                -                             -                                  -                   -                        -
      P os izio ni long                                                  -                                 -                            -                                -                             -                                  -                   -                        -
      P izio ni os co rte                                                -                                 -                            -                                -                             -                                  -                   -                        -
     - Other                                                             -                                 -                            -                                -                             -                                  -                   -                        -
      P os izio ni long                                                  -                                 -                            -                                -                             -                                  -                   -                        -
      P izio ni os co rte                                                -                                 -                            -                                -                             -                                  -                   -                        -




                                                                                                                                                                                                                                                                                           207
Banking 1.3 distribution for residual maturity (the date of repricing) of assets and liabilities - Currency CHF


                                                                                                               For over     3 months          D n addition to or 6            D 1 to n addition to or       D ao n addition to 5 nni                                    Duration
                 Type lo g ia / D re s ta ura IDUA   Overnight               F ino   3 months                                                   months to 1 Y ear               up to 5 to nni nno                                             Over 10 years
                                                                                                                 up     6 months                                                                                up to 10 to nni                                    inde you rm ina ta



1.    By activating ity pe rcassa                                1.0 7 6                        4 .0 3 6                               570                           81                                 -                              -                       -                        -
1.1 Tito them debt                                                       -                                 -                              -                               -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                                -                                 -                              -                               -                             -                                  -                   -                        -
     - Other                                                             -                                 -                              -                               -                             -                                  -                   -                        -
1.2 Loans to banks                                                1.075                                    -                              -                               -                             -                                  -                   -                        -
1.3 Loans to customers                                                   1                         4.036                                570                          81                                 -                                  -                   -                        -
     - c/c                                                               1                                 -                              -                               -                             -                                  -                   -                        -
     - Other funds                                                       -                         4.036                                570                          81                                 -                                  -                   -                        -
      - No co pzio Rimbo it to rs or early                               -                                 -                              -                               -                             -                                  -                   -                        -
      - Other                                                            -                         4.036                                570                          81                                 -                                  -                   -                        -
2.    P ass iv ity pe rcassa                                      548                           5 .3 9 8                                 -                           -                                  -                              -                       -                        -
2.1 Amounts owed to customers or                                    548                                    -                              -                               -                             -                                  -                   -                        -
     - c/c                                                          548                                    -                              -                               -                             -                                  -                   -                        -
     - Other payables                                                    -                                 -                              -                               -                             -                                  -                   -                        -
      - No co pzio Rimbo it to rs or early                               -                                 -                              -                               -                             -                                  -                   -                        -
      - Other                                                            -                                 -                              -                               -                             -                                  -                   -                        -
2.2 Due to banks or                                                      -                         5.398                                  -                               -                             -                                  -                   -                        -
     - c/c                                                               -                                 -                              -                               -                             -                                  -                   -                        -
     - Other payables                                                    -                         5.398                                  -                               -                             -                                  -                   -                        -
2.3 Tito them debt                                                       -                                 -                              -                               -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                                -                                 -                              -                               -                             -                                  -                   -                        -
     - Other                                                             -                                 -                              -                               -                             -                                  -                   -                        -
2.4 Other pas s CALLS                                                    -                                 -                              -                               -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                                -                                 -                              -                               -                             -                                  -                   -                        -
     - Other                                                             -                                 -                              -                               -                             -                                  -                   -                        -
3.    D and to rev you re fine Energy Systems                        -                                 -                                 -                           -                                  -                              -                       -                        -
3.1 Co tto n tito I know a lot of s                                      -                                 -                              -                               -                             -                                  -                   -                        -
     - Options                                                           -                                 -                              -                               -                             -                                  -                   -                        -
      P os izio ni long                                                  -                                 -                              -                               -                             -                                  -                   -                        -
      P izio ni os co rte                                                -                                 -                              -                               -                             -                                  -                   -                        -
     - Other                                                             -                                 -                              -                               -                             -                                  -                   -                        -

      P os izio ni long                                                  -                                 -                              -                               -                             -                                  -                   -                        -
      P izio ni os co rte                                                -                                 -                              -                               -                             -                                  -                   -                        -

3.2 Without Tito I know many tto s                                       -                                 -                              -                               -                             -                                  -                   -                        -
     - Options                                                           -                                 -                              -                               -                             -                                  -                   -                        -
      P os izio ni long                                                  -                                 -                              -                               -                             -                                  -                   -                        -
      P izio ni os co rte                                                -                                 -                              -                               -                             -                                  -                   -                        -
     - Other                                                             -                                 -                              -                               -                             -                                  -                   -                        -
      P os izio ni long                                                  -                                 -                              -                               -                             -                                  -                   -                        -
      P izio ni os co rte                                                -                                 -                              -                               -                             -                                  -                   -                        -




208
Banking 1.4 distribution for residual maturity (the date of repricing) of assets and liabilities - Currency NZD


                                                                                               For over       3 months       D n addition to or 6       D 1 to n addition to or           D ao n addition to 5 nni                               Duration
                 Type lo g ia / D re s ta ura IDUA   Overnight          F ino   3 months                                       months to 1 Y ear          up to 5 to nni nno                                             Over 10 years
                                                                                                 up       6 months                                                                            up to 10 to nni                                inde you rm ina ta



1.    By activating ity pe rcassa                                352                       -                             -                          -                             -                                  -                   -                        -

1.1 Tito them debt                                                  -                      -                             -                          -                                 -                              -                   -                        -

     - No co pzio Rimbo it to rs or early                           -                      -                             -                          -                                 -                              -                   -                        -

     - Other                                                        -                      -                             -                          -                                 -                              -                   -                        -

1.2 Loans to banks                                                352                      -                             -                          -                                 -                              -                   -                        -

1.3 Loans to customers                                              -                      -                             -                          -                                 -                              -                   -                        -

     - c/c                                                          -                      -                             -                          -                                 -                              -                   -                        -

     - Other funds                                                  -                      -                             -                          -                                 -                              -                   -                        -

       - No co pzio Rimbo it to rs or early                         -                      -                             -                          -                                 -                              -                   -                        -

       - Other                                                      -                      -                             -                          -                                 -                              -                   -                        -

2.     P ass iv ity pe rcassa                                    352                       -                             -                          -                             -                                  -                   -                        -

2.1 Amounts owed to customers or                                  352                      -                             -                          -                                 -                              -                   -                        -

     - c/c                                                        352                      -                             -                          -                                 -                              -                   -                        -

     - Other payables                                               -                      -                             -                          -                                 -                              -                   -                        -

       - No co pzio Rimbo it to rs or early                         -                      -                             -                          -                                 -                              -                   -                        -

       - Other                                                      -                      -                             -                          -                                 -                              -                   -                        -

2.2 Due to banks or                                                 -                      -                             -                          -                                 -                              -                   -                        -

     - c/c                                                          -                      -                             -                          -                                 -                              -                   -                        -

     - Other payables                                               -                      -                             -                          -                                 -                              -                   -                        -

2.3 Tito them debt                                                  -                      -                             -                          -                                 -                              -                   -                        -

     - No co pzio Rimbo it to rs or early                           -                      -                             -                          -                                 -                              -                   -                        -

     - Other                                                        -                      -                             -                          -                                 -                              -                   -                        -

2.4 Other pas s CALLS                                               -                      -                             -                          -                                 -                              -                   -                        -

     - No co pzio Rimbo it to rs or early                           -                      -                             -                          -                                 -                              -                   -                        -

     - Other                                                        -                      -                             -                          -                                 -                              -                   -                        -

3.     D and to rev you re fine Energy Systems                     -                       -                             -                          -                             -                                  -                   -                        -

3.1 Co tto n tito I know a lot of s                                 -                      -                             -                          -                                 -                              -                   -                        -

     - Options                                                      -                      -                             -                          -                                 -                              -                   -                        -

       P os izio ni long                                            -                      -                             -                          -                                 -                              -                   -                        -

       P izio ni os co rte                                          -                      -                             -                          -                                 -                              -                   -                        -

     - Other                                                        -                      -                             -                          -                                 -                              -                   -                        -

       P os izio ni long                                            -                      -                             -                          -                                 -                              -                   -                        -

       P izio ni os co rte                                          -                      -                             -                          -                                 -                              -                   -                        -

3.2 Without Tito I know many tto s                                  -                      -                             -                          -                                 -                              -                   -                        -

     - Options                                                      -                      -                             -                          -                                 -                              -                   -                        -

       P os izio ni long                                            -                      -                             -                          -                                 -                              -                   -                        -

       P izio ni os co rte                                          -                      -                             -                          -                                 -                              -                   -                        -

     - Other                                                        -                      -                             -                          -                                 -                              -                   -                        -

       P os izio ni long                                            -                      -                             -                          -                                 -                              -                   -                        -

       P izio ni os co rte                                          -                      -                             -                          -                                 -                              -                   -                        -




                                                                                                                                                                                                                                                                      209
Banking 1.5 distribution for residual maturity (the date of repricing) of assets and liabilities - Currency JPY


                                                                                                        For over     3 months          D n addition to or 6       D 1 to n addition to or       D ao n addition to 5 nni                                    Duration
                 Type lo g ia / D re s ta ura IDUA   Overnight        F ino   3 months                                                   months to 1 Y ear          up to 5 to nni nno                                             Over 10 years
                                                                                                          up     6 months                                                                           up to 10 to nni                                    inde you rm ina ta



1.    By activating ity pe rcassa                                21                      2 .7 8 7                               341                           -                             -                              -                       -                        -
1.1 Tito them debt                                                -                                 -                             -                           -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                         -                                 -                             -                           -                             -                                  -                   -                        -
     - Other                                                      -                                 -                             -                           -                             -                                  -                   -                        -
1.2 Loans to banks                                               21                                 -                             -                           -                             -                                  -                   -                        -
1.3 Loans to customers                                            -                         2.787                                341                          -                             -                                  -                   -                        -
     - c/c                                                        -                                 -                             -                           -                             -                                  -                   -                        -
     - Other funds                                                -                         2.787                                341                          -                             -                                  -                   -                        -
      - No co pzio Rimbo it to rs or early                        -                                 -                             -                           -                             -                                  -                   -                        -
      - Other                                                     -                         2.787                                341                          -                             -                                  -                   -                        -
2.    P ass iv ity pe rcassa                                     19                      3 .14 9                                  -                           -                             -                              -                       -                        -
2.1 Amounts owed to customers or                                 19                                 -                             -                           -                             -                                  -                   -                        -
     - c/c                                                       19                                 -                             -                           -                             -                                  -                   -                        -
     - Other payables                                             -                                 -                             -                           -                             -                                  -                   -                        -
      - No co pzio Rimbo it to rs or early                        -                                 -                             -                           -                             -                                  -                   -                        -

      - Other                                                     -                                 -                             -                           -                             -                                  -                   -                        -
2.2 Due to banks or                                               -                         3.149                                 -                           -                             -                                  -                   -                        -
     - c/c                                                        -                                 -                             -                           -                             -                                  -                   -                        -
     - Other payables                                             -                         3.149                                 -                           -                             -                                  -                   -                        -
2.3 Tito them debt                                                -                                 -                             -                           -                             -                                  -                   -                        -

     - No co pzio Rimbo it to rs or early                         -                                 -                             -                           -                             -                                  -                   -                        -
     - Other                                                      -                                 -                             -                           -                             -                                  -                   -                        -
2.4 Other pas s CALLS                                             -                                 -                             -                           -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                         -                                 -                             -                           -                             -                                  -                   -                        -
     - Other                                                      -                                 -                             -                           -                             -                                  -                   -                        -
3.    D and to rev you re fine Energy Systems                     -                             -                                 -                           -                             -                              -                       -                        -
3.1 Co tto n tito I know a lot of s                               -                                 -                             -                           -                             -                                  -                   -                        -
     - Options                                                    -                                 -                             -                           -                             -                                  -                   -                        -
      P os izio ni long                                           -                                 -                             -                           -                             -                                  -                   -                        -
      P izio ni os co rte                                         -                                 -                             -                           -                             -                                  -                   -                        -
     - Other                                                      -                                 -                             -                           -                             -                                  -                   -                        -
      P os izio ni long                                           -                                 -                             -                           -                             -                                  -                   -                        -
      P izio ni os co rte                                         -                                 -                             -                           -                             -                                  -                   -                        -
3.2 Without Tito I know many tto s                                -                                 -                             -                           -                             -                                  -                   -                        -
     - Options                                                    -                                 -                             -                           -                             -                                  -                   -                        -
      P os izio ni long                                           -                                 -                             -                           -                             -                                  -                   -                        -
      P izio ni os co rte                                         -                                 -                             -                           -                             -                                  -                   -                        -
     - Other                                                      -                                 -                             -                           -                             -                                  -                   -                        -
      P os izio ni long                                           -                                 -                             -                           -                             -                                  -                   -                        -
      P izio ni os co rte                                         -                                 -                             -                           -                             -                                  -                   -                        -




210
Banking 1.6 distribution for residual maturity (the date of repricing) of assets and liabilities - Currency GBP


                                                                                                             For over     3 months       D n addition to or 6       D 1 to n addition to or       D ao n addition to 5 nni                                    Duration
                 Type lo g ia / D re s ta ura IDUA   Overnight             F ino   3 months                                                months to 1 Y ear          up to 5 to nni nno                                             Over 10 years
                                                                                                               up     6 months                                                                        up to 10 to nni                                    inde you rm ina ta



1.    By activating ity pe rcassa                                1.3 9 9                      5 .9 5 4                               -                          -                             -                              -                       -                        -
1.1 Tito them debt                                                     -                                 -                           -                          -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                              -                                 -                           -                          -                             -                                  -                   -                        -
     - Other                                                           -                                 -                           -                          -                             -                                  -                   -                        -
1.2 Loans to banks                                                1.399                                  -                           -                          -                             -                                  -                   -                        -
1.3 Loans to customers                                                 -                         5.954                               -                          -                             -                                  -                   -                        -
     - c/c                                                             -                                 -                           -                          -                             -                                  -                   -                        -
     - Other funds                                                     -                         5.954                               -                          -                             -                                  -                   -                        -
      - No co pzio Rimbo it to rs or early                             -                                 -                           -                          -                             -                                  -                   -                        -
      - Other                                                          -                         5.954                               -                          -                             -                                  -                   -                        -
2.    P ass iv ity pe rcassa                                      1.3 11                      6 .19 4                                -                          -                             -                              -                       -                        -
2.1 Amounts owed to customers or                                   1.311                                 -                           -                          -                             -                                  -                   -                        -
     - c/c                                                         1.311                                 -                           -                          -                             -                                  -                   -                        -
     - Other payables                                                  -                                 -                           -                          -                             -                                  -                   -                        -
      - No co pzio Rimbo it to rs or early                             -                                 -                           -                          -                             -                                  -                   -                        -

      - Other                                                          -                                 -                           -                          -                             -                                  -                   -                        -
2.2 Due to banks or                                                    -                         6.194                               -                          -                             -                                  -                   -                        -
     - c/c                                                             -                                 -                           -                          -                             -                                  -                   -                        -
     - Other payables                                                  -                         6.194                               -                          -                             -                                  -                   -                        -
2.3 Tito them debt                                                     -                                 -                           -                          -                             -                                  -                   -                        -

     - No co pzio Rimbo it to rs or early                              -                                 -                           -                          -                             -                                  -                   -                        -
     - Other                                                           -                                 -                           -                          -                             -                                  -                   -                        -
2.4 Other pas s CALLS                                                  -                                 -                           -                          -                             -                                  -                   -                        -
     - No co pzio Rimbo it to rs or early                              -                                 -                           -                          -                             -                                  -                   -                        -
     - Other                                                           -                                 -                           -                          -                             -                                  -                   -                        -
3.    D and to rev you re fine Energy Systems                          -                             -                               -                          -                             -                              -                       -                        -
3.1 Co tto n tito I know a lot of s                                    -                                 -                           -                          -                             -                                  -                   -                        -
     - Options                                                         -                                 -                           -                          -                             -                                  -                   -                        -
      P os izio ni long                                                -                                 -                           -                          -                             -                                  -                   -                        -
      P izio ni os co rte                                              -                                 -                           -                          -                             -                                  -                   -                        -
     - Other                                                           -                                 -                           -                          -                             -                                  -                   -                        -
      P os izio ni long                                                -                                 -                           -                          -                             -                                  -                   -                        -
      P izio ni os co rte                                              -                                 -                           -                          -                             -                                  -                   -                        -
3.2 Without Tito I know many tto s                                     -                                 -                           -                          -                             -                                  -                   -                        -
     - Options                                                         -                                 -                           -                          -                             -                                  -                   -                        -
      P os izio ni long                                                -                                 -                           -                          -                             -                                  -                   -                        -
      P izio ni os co rte                                              -                                 -                           -                          -                             -                                  -                   -                        -
     - Other                                                           -                                 -                           -                          -                             -                                  -                   -                        -
      P os izio ni long                                                -                                 -                           -                          -                             -                                  -                   -                        -
      P izio ni os co rte                                              -                                 -                           -                          -                             -                                  -                   -                        -




                                                                                                                                                                                                                                                                                  211
Banking 1.7 distribution for residual maturity (the date of repricing) of assets and liabilities - Currency OTHER CURRENCIES

                                                                                                                                                                                                                                    In
                                                                                                                                                                                                                                    additio
                                                                                                                 For over    3 months   D n addition to or 6 months   D ao n addition to a nno   D ao n addition to 5 nni                                      Duration
                 Type lo g ia / D re s ta ura IDUA   Overnight                 F ino   3 months                                                                                                                                     n       10 a nni
                                                                                                                   up     6 months            up to 1 Y ear                up to 5 to nni            up to 10 to nni                                       inde you rm ina ta



1.    By activating ity pe rcassa                                 922                                 39                                 -                     3 .7 7 2                          -                          -                          -                        -
1.1 Tito them debt                                                         -                                 -                           -                                -                          -                          -                      -                        -
     - No co pzio Rimbo it to rs or early                                  -                                 -                           -                                -                          -                          -                      -                        -
     - Other                                                               -                                 -                           -                                -                          -                          -                      -                        -
1.2 Loans to banks                                                   870                                     -                           -                                -                          -                          -                      -                        -
1.3 Loans to customers                                                52                                39                               -                       3.772                               -                          -                      -                        -
     - c/c                                                            52                                     -                           -                                -                          -                          -                      -                        -
     - Other funds                                                         -                            39                               -                       3.772                               -                          -                      -                        -
      - No co pzio Rimbo it to rs or early                                 -                                 -                           -                                -                          -                          -                      -                        -
      - Other                                                              -                            39                               -                       3.772                               -                          -                      -                        -
2.    P ass iv ity pe rcassa                                     1.0 3 8                          3 .7 5 9                               -                            -                          -                          -                          -                        -
2.1 Amounts owed to customers or                                     962                                     -                           -                                -                          -                          -                      -                        -
     - c/c                                                           962                                     -                           -                                -                          -                          -                      -                        -
     - Other payables                                                      -                                 -                           -                                -                          -                          -                      -                        -
      - No co pzio Rimbo it to rs or early                                 -                                 -                           -                                -                          -                          -                      -                        -
      - Other                                                              -                                 -                           -                                -                          -                          -                      -                        -
2.2 Due to banks or                                                   76                             3.759                               -                                -                          -                          -                      -                        -
     - c/c                                                            76                                     -                           -                                -                          -                          -                      -                        -
     - Other payables                                                      -                         3.759                               -                                -                          -                          -                      -                        -
2.3 Tito them debt                                                         -                                 -                           -                                -                          -                          -                      -                        -
     - No co pzio Rimbo it to rs or early                                  -                                 -                           -                                -                          -                          -                      -                        -
     - Other                                                               -                                 -                           -                                -                          -                          -                      -                        -
2.4 Other pas s CALLS                                                      -                                 -                           -                                -                          -                          -                      -                        -
     - No co pzio Rimbo it to rs or early                                  -                                 -                           -                                -                          -                          -                      -                        -
     - Other                                                               -                                 -                           -                                -                          -                          -                      -                        -
3.    D and to rev you re fine Energy Systems                          -                                 -                               -                            -                          -                          -                          -                        -
3.1 Co tto n tito I know a lot of s                                        -                                 -                           -                                -                          -                          -                      -                        -
     - Options                                                             -                                 -                           -                                -                          -                          -                      -                        -
      P os izio ni long                                                    -                                 -                           -                                -                          -                          -                      -                        -
      P izio ni os co rte                                                  -                                 -                           -                                -                          -                          -                      -                        -
     - Other                                                               -                                 -                           -                                -                          -                          -                      -                        -
      P os izio ni long                                                    -                                 -                           -                                -                          -                          -                      -                        -
      P izio ni os co rte                                                  -                                 -                           -                                -                          -                          -                      -                        -
3.2 Without Tito I know many tto s                                         -                                 -                           -                                -                          -                          -                      -                        -
     - Options                                                             -                                 -                           -                                -                          -                          -                      -                        -
      P os izio ni long                                                    -                                 -                           -                                -                          -                          -                      -                        -
      P izio ni os co rte                                                  -                                 -                           -                                -                          -                          -                      -                        -
     - Other                                                               -                                 -                           -                                -                          -                          -                      -                        -
      P os izio ni long                                                    -                                 -                           -                                -                          -                          -                      -                        -
      P izio ni os co rte                                                  -                                 -                           -                                -                          -                          -                      -                        -




212
2. Bank portfolio: internal models and other methods for sensitivity analysis
The exposure to interest rate risk of European Regional Bank, as measured by the sensitivity analysis in a scenario of parallel
shift of the yield curve of 100 bp, came at the end of the period, before the effect arising from the phenomenon on lapses, to -
16.19 million (EUR -26.79 million euro at December 31, 2008). The measure of risk, the net impact of the phenomenon on
prepayments, amounted to EUR -4.51 million (EUR -16.42 million at December 31, 2008), representing 0.54% of assets
Supervisory Board, in response to the threshold - defined by the Policy Group Financial Risks for the European Regional
Bank on this indicator - 1% of regulatory capital. The exhibition includes approximately EUR -0.42 million related to interest
rate swaps on bond firm commitment still in placement at December 31, 2009 excluded from the calculations. Excluding this
contribution, the exposure to interest rate would stand at EUR -4.09 million, representing 0.49% 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                                                                                                      1.6%                              2.6%




                                               Risk indicators - point values                                                     31/12/2009                        31/12/2008


parallel shift of 200 bp
sensitivity / regulatory capital                                                                                                      0.9%                                ns




At December 31, 2009, the impact on net interest income, assuming the yield curve shift reference of 100 basis points is
equal to 36.90000000 euro, while in case of reduction of the same (-100 bp ) the impact on net interest income is estimated at
EUR -36.90 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                                                                                       Date cut - off: 31/12/2009



                            i      4 000
                            n
                            or
                            i

                            l
                            i




                            M 3000
                                   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 / Passive          Hedging derivatives        Lapses                       Overall Gap




                                                                                                                                                                                 213
               Sensitivity bucket: Scenario 100 bp                                                                   Date cut - off: 31/12/2009



           i       15
           n
           or
           i
           l
           i




           M 10


                    5


                    0


                   ‐5


                  ‐10


                  ‐15
                         VIEW    1M        3M        6M          1Y   2Y       3Y           4Y   5Y       7Y   10Y   15Y        20Y       >20Y


                                    Imbalance Active / Passive        Hedging derivatives        Lapses                    Total Sensitivity




Within the main component of the banking book is classified as Category IAS AFS - Available for Sale, which includes titles
and some actions.
Background information indicates that at the end of December, the total VaR of the portfolio of bank Banca Regionale
Europea, 3064 amounted to approximately euro (3857 euro at June 30, 2009) with a NAV equal to approximately 1.26
million euro (1.23 million at June 30, 2009).




214
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
As part of the analysis carried out from the ALM Risk Management 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," if the latter is less 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
Operations in foreign exchange markets is carried out by Group Treasury operates through instruments such as forward
exchange transactions, forex swaps, currency swaps and options in domestic changes, optimizing the risk profile arising from
positions in the currency of the Group.




     215
Quantitative information


1. Distribution by currency denomination of assets and liabilities and derivatives


                                                                                 Currencies


                           Voices
                                                                                                            DOLLAR
                                           DOLLAR          POUND          YEN                 FRANCS                         OTHER
                                                                                                            HONG
                                           USA           ENGLISH          JAPANESE              SWISS                     CURRENCIES
                                                                                                            KONG

A. Financial assets                           30.604          7.359             3.152             5.748               -           5.044
A.1     Debt                                         -             -                -                   -             -                -
A.2     Equities                                     -             -                -                   -             -                -
A.3     Loans to banks                        21.721          1.399               21              1.075               -           1.221
A.4     Loans to customers                       8.883        5.960             3.131             4.673               -           3.823
A.5     Other financial assets                       -             -                -                   -             -                -
B. Other activities                               410          146                 13              193               0               43
C. Financial liabilities                      30.100          7.504             3.165             5.940             34            5.087
C.1     Due to banks                             8.152        6.193             3.146             5.392             34            3.773
C.2     Due to customers                      21.837          1.311               19               548                -           1.314
C.3     Debt                                      111              -                -                   -             -                -
C.4     Other financial liabilities                  -             -                -                   -             -                -
D. Other liabilities                              959              0               0                   1             0                 0
E. Financial derivatives                             -             -                -                   -             -                -
E.1    Options                                     -               -                -                   -             -                -
   E.1.1 Long Positions                       73.060               -                -             1.348               -                -
   E.1.2 Short positions                      73.060               -                -             1.348               -                -
E.1     Other derivatives                          -               -                -                   -             -                -
   E.1.1 Long Positions                       13.566               -             225                    -      8.310                   -
   E.1.2 Short positions                      13.566               -             225                    -      8.310                   -
Total assets                                 117.640          7.505             3.390             7.289        8.310              5.087
Total liabilities                            117.685          7.504             3.390             7.289        8.344              5.087
Imbalance                                         (45)             1              (0)                  0           (34)              (0)




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).




216
2.4 Derivative financial instruments

A. DERIVATIVES

A.1 Regulatory trading portfolio: notional end of period and average


                                                                                   Total            3 1 / 12 / 2 0 0 9                                     Total             3 1 / 12 / 2 0 0 8

   By activating know tto ity s ta nt / Type lo g ie Derivatives

                                                                   Ov er the co greasy r                C or C ntro pa rti them and ntra   Ov er the co greasy r                 C or C ntro pa rti them and ntra


1. Tito will be tas of debt and interest if                                            3.956.214                                       -                           3.334.814                                        -

    a) Options                                                                         1.164.972                                       -                           1.163.734                                        -

    b) Swap                                                                            2.791.242                                       -                           2.171.080                                        -

    c) Forward                                                                                      -                                  -                                     -                                      -

    d) Futures                                                                                      -                                  -                                     -                                      -

    e) Other                                                                                        -                                  -                                     -                                      -

2. Tito them and share indices near Actium                                                          -                                  1                                196                                       1

    a) Options                                                                                      -                                  1                                196                                       1

    b) Swap                                                                                         -                                  -                                     -                                      -

    c) Forward                                                                                      -                                  -                                     -                                      -

    d) Futures                                                                                      -                                  -                                     -                                      -

    e) Other                                                                                        -                                  -                                     -                                      -

3. Currencies eo ro                                                                        176.398                                     -                            192.838                                         -

    a) Options                                                                             148.816                                     -                            160.437                                         -

    b) Swap                                                                                         -                                  -                                     -                                      -

    c) Forward                                                                              27.582                                     -                             32.401                                         -

    d) Futures                                                                                      -                                  -                                     -                                      -

    e) Other                                                                                        -                                  -                                     -                                      -

4) Goods                                                                                            -                                  -                                     -                                      -

5) Other so many tto s                                                                              -                                  -                                     -                                      -

                                                        Total                       4 .13 2 .6 12                                     1                    3 .5 2 7 .8 4 8                                    1
                                                Va ri me                           3 .9 7 1.4 4 6                                     1                     3 .6 0 6 .112                                     -




                                                                                                                                                                                                                        217
A.2 Banking: notional end of period and average
A.2.1 Hedging



                                                                                   Total             3 1 / 12 / 2 0 0 9                                     Total            3 1 / 12 / 2 0 0 8

   By activating know tto ity s ta nt / Type lo g ie Derivatives

                                                                   Ov er the co greasy r                 C or C ntro pa rti them and ntra   Ov er the co greasy r                C or C ntro pa rti them and ntra


1. Tito will be tas of debt and interest if                                             2.265.280                                       -                           2.172.536                                       -

    a) Options                                                                              5.840                                       -                              5.840                                        -

    b) Swap                                                                             2.259.440                                       -                           2.166.696                                       -

    c) Forward                                                                                       -                                  -                                    -                                      -

    d) Futures                                                                                       -                                  -                                    -                                      -

    e) Other                                                                                         -                                  -                                    -                                      -

2. Tito them and share indices near Actium                                                           -                                  -                                    -                                      -

    a) Options                                                                                       -                                  -                                    -                                      -

    b) Swap                                                                                          -                                  -                                    -                                      -

    c) Forward                                                                                       -                                  -                                    -                                      -

    d) Futures                                                                                       -                                  -                                    -                                      -

    e) Other                                                                                         -                                  -                                    -                                      -

3. Currencies eo ro                                                                                  -                                  -                                    -                                      -

    a) Options                                                                                       -                                  -                                    -                                      -

    b) Swap                                                                                          -                                  -                                    -                                      -

    c) Forward                                                                                       -                                  -                                    -                                      -

    d) Futures                                                                                       -                                  -                                    -                                      -

    e) Other                                                                                         -                                  -                                    -                                      -

4) Goods                                                                                             -                                  -                                    -                                      -

5) Other so many tto s                                                                               -                                  -                                    -                                      -

                                                        Total                      2 .2 6 5 .2 8 0                                     -                    2 .17 2 .5 3 6                                     -
                                                Va ri me                           2 .3 7 6 .17 7                                      -                    2 .3 8 5 .7 15                                     -




218
A.3 Financial derivatives: the gross positive fair value - breakdown products


                                                                         Fair value                positive                                      Fair value             positive



           P o rta them f or g / g ie the type Derivatives                     Total 3 1 / 12 / 2 0 0 9                                         Total         3 1 / 12 / 2 0 0 8


                                                                                                                                                                      C or C ntro pa rti them and
                                                                 Ov er the co greasy r       C or C ntro pa rti them and ntra   Ov er the co greasy r                                        ntra


1. P or rtafo Council for trading surveillance                                  36.209                                      -                           43.790                                  0

    a) Options                                                                   1.242                                      -                            2.133                                  0

    b) interest rate t s wap                                                    34.842                                      -                           41.084                                  -

    c) s Cro ss currency wap                                                             -                                  -                                 -                                 -

    d) Equity s wap                                                                      -                                  -                                 -                                 -

    e) Forward                                                                     125                                      -                             573                                   -

    f) Futures                                                                           -                                  -                                 -                                 -

    g) Other                                                                             -                                  -                                 -                                 -

2. P rtafo Council or banking - co coverage                                     55.903                                      -                           55.516                                  -

    a) Options                                                                           -                                  -                                 -                                 -

    b) interest rate t s wap                                                    55.903                                      -                           55.516                                  -

    c) s Cro ss currency wap                                                             -                                  -                                 -                                 -

    d) Equity s wap                                                                      -                                  -                                 -                                 -

    e) Forward                                                                           -                                  -                                 -                                 -

    f) Futures                                                                           -                                  -                                 -                                 -

    g) Other                                                                             -                                  -                                 -                                 -

3. P rtafo Council or transfer - other derivatives                                       -                                  -                                 -                                 -

    a) Options                                                                           -                                  -                                 -                                 -

    b) interest rate t s wap                                                             -                                  -                                 -                                 -

    c) s Cro ss currency wap                                                             -                                  -                                 -                                 -

    d) Equity s wap                                                                      -                                  -                                 -                                 -

    e) Forward                                                                           -                                  -                                 -                                 -

    f) Futures                                                                           -                                  -                                 -                                 -

    g) Other                                                                             -                                  -                                 -                                 -
                                                         Total                9 2 .112                                     -                       9 9 .3 0 6                                  0




                                                                                                                                                                                                    219
A.4 Financial derivatives: Gross negative fair value - breakdown products


                                                                             Fair value            negative                                  Fair value negative



           P o rta them f or g / g ie the type Derivatives                     Total 3 1 / 12 / 2 0 0 9                                       Total      3 1 / 12 / 2 0 0 8


                                                                                                                                                             C or C ntro pa rti them and
                                                                 Ov er the co greasy r       C or C ntro pa rti them and ntra   Ov er the co greasy r        ntra


1. P or rtafo Council for trading surveillance                                   37.596                                     -                   42.446                                     -

    a) Options                                                                     1.242                                    -                    2.133                                     -

    b) interest rate t s wap                                                     36.229                                     -                   39.562                                     -

    c) s Cro ss currency wap                                                             -                                  -                            -                                 -

    d) Equity s wap                                                                      -                                  -                            -                                 -

    e) Forward                                                                       125                                    -                      751                                     -

    f) Futures                                                                           -                                  -                            -                                 -

    g) Other                                                                             -                                  -                            -                                 -

2. P rtafo Council or banking - co coverage                                      25.138                                     -                   26.487                                     -

    a) Options                                                                           -                                  -                            -                                 -

    b) interest rate t s wap                                                     25.138                                     -                   26.487                                     -

    c) s Cro ss currency wap                                                             -                                  -                            -                                 -

    d) Equity s wap                                                                      -                                  -                            -                                 -

    e) Forward                                                                           -                                  -                            -                                 -

    f) Futures                                                                           -                                  -                            -                                 -

    g) Other                                                                             -                                  -                            -                                 -

3. P rtafo Council or transfer - other derivatives                                       -                                  -                            -                                 -

    a) Options                                                                           -                                  -                            -                                 -

    b) interest rate t s wap                                                             -                                  -                            -                                 -

    c) s Cro ss currency wap                                                             -                                  -                            -                                 -

    d) Equity s wap                                                                      -                                  -                            -                                 -

    e) Forward                                                                           -                                  -                            -                                 -

    f) Futures                                                                           -                                  -                            -                                 -

    g) Other                                                                             -                                  -                            -                                 -
                                                         Total               6 2 .7 3 4                                    -                6 8 .9 3 3                                     -




220
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


                                                                        Go there and B n h rni                                                       S oc ie TY fine Rie Energy              S oc ie CT          Im no pre se n
    C ntra cts or no n in acco Rie ntra nts RDI of com pe ns to uncle                                O there e nts publish       Banks               Systems                                                                                O there Sogge cts
                                                                               Central                                                                                                    ic ura ass uncle          finance



1) de Tito them to the
framework and                   t of inte re sse ssi

   - Value not re nal uncle                                                                      -                           -           1.865.298                            696.117                        -                    947.579                       447.219

   - Fair value bit s itivo                                                                      -                           -              1.784                                     -                      -                     28.894                         4.238

   - Negative fair value                                                                         -                           -             36.150                                     -                      -                       125                              30

   - Eg some izio it s future                                                                    -                           -              8.499                                 7.905                      -                      6.447                         2.050
                                a
2) Titus of them about the      n
pita                            d index                stock

   - Value not re nal uncle                                                                      -                           -                   -                                    -                      -                         1                               -

   - Fair value bit s itivo                                                                      -                           -                   -                                    -                      -                          -                              -

   - Negative fair value                                                                         -                           -                   -                                    -                      -                          -                              -

   - Eg some izio it s future                                                                    -                           -                   -                                    -                      -                          -                              -

3) Go lute eo ro

   - Value not re nal uncle                                                                      -                           -             88.199                                     -                      -                     87.675                          524

   - Fair value bit s itivo                                                                      -                           -                736                                     -                      -                       541                              15

   - Negative fair value                                                                         -                           -                555                                     -                      -                       735                               -

   - Eg some izio it s future                                                                    -                           -                882                                     -                      -                       880                               5

4) O there is the re

   - Value not re nal uncle                                                                      -                           -                   -                                    -                      -                          -                              -

   - Fair value bit s itivo                                                                      -                           -                   -                                    -                      -                          -                              -

   - Negative fair value                                                                         -                           -                   -                                    -                      -                          -                              -

   - Eg some izio it s future                                                                    -                           -                   -                                    -                      -                          -                              -




                                                                                                                                                                                                                                                                221
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


                                                                        Go there and B n h rni                                                       S oc ie TY fine Rie Energy          S oc ie CT          Im no pre se n
    C ntra cts or no n in acco Rie ntra nts RDI of com pe ns to uncle                                O there e nts publish       Banks               Systems                                                                      O there Sogge cts
                                                                               Central                                                                                                ic ura ass uncle          finance



1) de Tito them to the
framework and                   t of inte re sse ssi

   - Value not re nal uncle                                                                      -                           -           2.265.280                                -                      -                    -                       -

   - Fair value bit s itivo                                                                      -                           -             55.903                                 -                      -                    -                       -

   - Negative fair value                                                                         -                           -             25.138                                 -                      -                    -                       -

   - Eg some izio it s future                                                                    -                           -             11.100                                 -                      -                    -                       -
                                a
2) Titus of them about the      n
pita                            d index                stock

   - Value not re nal uncle                                                                      -                           -                   -                                -                      -                    -                       -

   - Fair value bit s itivo                                                                      -                           -                   -                                -                      -                    -                       -

   - Negative fair value                                                                         -                           -                   -                                -                      -                    -                       -

   - Eg some izio it s future                                                                    -                           -                   -                                -                      -                    -                       -

3) Go lute eo ro

   - Value not re nal uncle                                                                      -                           -                   -                                -                      -                    -                       -

   - Fair value bit s itivo                                                                      -                           -                   -                                -                      -                    -                       -

   - Negative fair value                                                                         -                           -                   -                                -                      -                    -                       -

   - Eg some izio it s future                                                                    -                           -                   -                                -                      -                    -                       -

4) O there is the re

   - Value not re nal uncle                                                                      -                           -                   -                                -                      -                    -                       -

   - Fair value bit s itivo                                                                      -                           -                   -                                -                      -                    -                       -

   - Negative fair value                                                                         -                           -                   -                                -                      -                    -                       -

   - Eg some izio it s future                                                                    -                           -                   -                                -                      -                    -                       -




A.9 residual life of OTC derivatives: notional

222
                                                                                                                                                                           In
                                                                                                                                        Over 1 Y ear       and up    to    additio
                                       S o ct s ta nt / re s Life IDUA                                       F ino   to 1 Year                                             n         5 years          Total
                                                                                                                                                   5 years



A) P o rta f or g lio ne go aunt uncle v ig ila nza
    A.1 Financial derivatives on tito them of debt and interest if you tas                                                1.783.701                          1.340.722                     831.790            3 .9 5 6 .2 13
    A.2 Financial derivatives on tito them and share indices Actium nostrils                                                        -                                  -                          1                       1
    A.3 Tas on financial derivatives exchange is eo ro                                                                      176.398                                    -                          -              17 6 .3 9 8
    A.4 Financial derivatives on other value ri                                                                                     -                                  -                          -                       -
B) P o rta ba kr g lio n rio
    B .1 Financial derivatives on tito them of debt and interest if you tas                                                 780.674                          1.116.947                     367.659            2 .2 6 5 .2 8 0
    B .2 Financial derivatives on tito them and share indices Actium nostrils                                                       -                                  -                          -                       -
    B .3 Financial derivatives exchange is tas o ro                                                                                 -                                  -                          -                       -
    B .4 Financial derivatives on other value ri                                                                                    -                                  -                          -                       -
                                                                                Total   3 1 / 12 / 2 0 0 9            2 .7 4 0 .7 7 3                    2 .4 5 7 .6 6 9              1.19 9 .4 5 0           6 .3 9 7 .8 9 2
                                                                                Total   3 1 / 12 / 2 0 0 8            2 .4 2 3 .3 6 4                     2 .7 17 .8 5 5               5 5 9 .16 5            5 .7 0 0 .3 8 4




A.10 Financial derivatives OTC: CCR / financial risk - Internal models




      223
B. CREDIT DERIVATIVES

There are no credit derivatives.


C. Financial and credit derivatives

There are no financial and credit derivatives.




224
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 and settlement within the policy of 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 collection and coordinated use and efficient in the structural network for banks and product companies.
Finally, the policy aims to make homogeneous, for all Group companies, is the means of intervention that the criteria for the
identification of economic conditions, possibly by identifying in advance the specific exceptions.
Principals of liquidity risk on behalf of the network banks are centralized at the parent company and compete:
     •     Area Finance and ALMO Funding (garrison level 1) which provides daily monitoring of liquidity and risk
           management within the limits defined;
     •     Area 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. Any 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.




     225
Quantitative information

1.1 Breakdown by residual maturity of financial assets and liabilities - currency: EURO

                                                                                                                                                                              D n addition to or 1
                                                                                                 For over        1            For over 7                                                                       For over    3               For over   6
                                                                                                                                                   For over      15                 month                                                                        For over      1 a nno
                                                                                                                                                                                                                                                                                                  In
                                                                                                                                                                                                                                                                                                  additio
                  Vo ci / S cag ni lio you overheat them m        Overnight                       to 7 days                      15 days                                                                      months to to 6           months to      to 1                                        n       5 years          Inde you rm ina ta       Total
                                                                                                                                                    I rni g to 1 month          up to 3 months                                                                      up      5 A nni
                                                                                                    days                         days                                                                          months                      Y ear


By activating ity pe rcassa                                                   4 6 4 .2 0 1                    12 .0 7 7             3 3 .8 4 3                 13 6 .5 8 5                   2 5 2 .9 7 9                 17 0 .17 7                   3 5 1.9 9 5                    5 .114 .4 6 5            2 .3 6 6 .5 3 6                  -           8 .9 0 2 .8 5 8

A.1 them of Tito's Committee                                                             -                                -                    -                          -                               -                            -                       1.505                         9.547                             -                -                  11.052

A.2 Tito them debt quo results                                                           -                                -                    -                          -                               -                            -                            -                                 -                            -            -                         -

Tito them A.3 Other debt                                                                 1                                -                    -                          -                           6.022                            -                        6.001                       19.272                       18.025                 -                  49.321

A.4 Quo you OIC. R.                                                                      -                                -                    -                          -                               -                            -                         315                                  -                        -                -                      315

A.5 Loans                                                                        464.200                        12.077                 33.843                     136.585                        246.957                    170.177                          344.174                     5.085.646                    2.348.511                 -               8.842.170

   - Banks                                                                        57.818                                  -                 500                           -                          27.711                     2.985                         40.285                     1.429.117                             -                -               1.558.416

   - Clients                                                                     406.382                        12.077                 33.343                     136.585                        219.246                    167.192                          303.889                     3.656.529                    2.348.511                 -               7.283.754

Funding in fferenza know                                                                                                                                                                                                                                                                                                                                                  -

Funding ins or Luti                                                                                                                                                                                                                                                                                                                                                       -

P ass iv ity pe rcassa                                                        2 .4 4 4                         2 .9 5 0               2 .7 0 1                   9 4 .2 16                   2 0 8 .6 5 8             3 8 4 .6 8 7                    2 6 0 .0 0 2                6 .7 2 5 .9 8 8                   5 0 9 .5 9 2                -            8 .19 1.2 3 8

B .1 iti s Depo                                                                      685                                  -                    -                          1                               -                       121                             10                     5.351.909                        2.964                 -               5.355.690

   - Banks                                                                               14                               -                    -                          -                               -                            -                            -                      264.104                             -                -                 264.118

   - Clients                                                                       671                                    -                    -                          1                               -                       121                             10                     5.087.805                        2.964                 -               5.091.572

B .2 Tito them debt                                                                 1.754                        2.950                     2.701                      94.215                     207.979                    384.240                          259.077                     1.035.874                      502.091                 -               2.490.881

B .3 Other pas s CALLS                                                                       5                            -                    -                          -                            679                        326                            915                       338.205                        4.537                 -                 344.667

Ope ra ni uncle "FUO bilateral re n I"                                                   -                    13 .4 0 2               5 .7 9 1                   13 .8 2 4                     2 0 .4 0 3                 (2 .7 3 9 )                 (2 0 .4 9 9 )                           621                              -                -               3 0 .8 0 3

C .1 Financial derivatives exchange co ns capital                                        -                                -                    -                          -                               -                            -                            -                                 1                            -            -                        1

   - P os izio ni long                                                                   -                            41                   2.345                       9.455                         30.342                     9.020                         28.630                                  1                        -                -                  79.834

   - P izio ni os co rte                                                                 -                            41                   2.345                       9.455                         30.342                     9.020                         28.630                                  -                        -                -                  79.833

C .2 s financial derivatives exchange enza s capital                                     -                      13.402                     5.791                      13.824                         20.403                    (2.739)                       (20.499)                          620                                 -            -                  30.802

   - P os izio ni long                                                                   -                      21.430                 12.743                         14.436                         34.793                     4.606                          3.616                           622                             -                -                  92.246

   - P izio ni os co rte                                                                 -                       8.028                     6.952                         612                         14.390                     7.345                         24.115                              2                            -                -                  61.444

C .3 Depo s ites and loans receivable                                                    -                                -                    -                          -                               -                            -                            -                                 -                            -            -                         -

   - P os izio ni long                                                                   -                                -                    -                          -                               -                            -                            -                                 -                        -                -                         -

   - P izio ni os co rte                                                                 -                                -                    -                          -                               -                            -                            -                                 -                        -                -                         -

C .4 irrevocable commitments are open to competition was fo ndi                          -                                -                    -                          -                               -                            -                            -                                 -                            -            -                         -

   - P os izio ni long                                                                   -                                -                    -                          -                               -                            -                            -                                 -                        -                -                         -

   - P izio ni os co rte                                                                 -                                -                    -                          -                               -                            -                            -                                 -                        -                -                         -

C .5 Financial guarantees mak ciate                                                      -                                -                    -                          -                               -                            -                            -                                 -                            -            -                         -




226
1.2 Breakdown by residual maturity of financial assets and liabilities - currency: USD

                                                                                                                                  N addition to or D
                                                                                     For over     1        For over       7                       15         For over          1         For over    3         For over     6       For over          1
                                                                                                                                                                                                                                                              In
                                                                                                                                                                                                                                                              additio
                  Vo ci / S cag ni lio you overheat them m        Overnight           to 7 days                     15 days                1 days          month    up         to 3     months to to 6        months to    to 1 Y ear     up         to 5     n         5 years   Inde you rm ina ta       Total
                                                                                        days                 days                        month                     months                months                   Y ear                 to nni


By activating ity pe rcassa                                                   14 5                91                     2 17                    534                        3 .3 3 9                  60                   208                   2 6 .13 8                    -                        -     3 0 .7 3 2

A.1 them of Tito's Committee                                                     -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

A.2 Tito them debt quo results                                                   -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

Tito them A.3 Other debt                                                         -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

A.4 Quo you OIC. R.                                                              -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

A.5 Loans                                                                     145                 91                     217                      534                        3.339                       60                 208                   26.138                      -                        -           30.732

   - Banks                                                                    126                      -                      -                        -                       267                        -                     -                 21.453                      -                        -           21.846

   - Clients                                                                   19                 91                     217                      534                        3.072                       60                 208                     4.685                     -                        -            8.886

Funding in fferenza know                                                                                                                                                                                                                                                                                                -

Funding ins or Luti                                                                                                                                                                                                                                                                                                     -

P ass iv ity pe rcassa                                                         35                 -                      13 9                  4 .5 12                          39                    85                        8              2 5 .2 9 1                     2                        -       3 0 .111

B .1 iti s Depo                                                                  -                     -                 139                    4.512                              39                     -                     8                 21.651                      2                        -           26.351

   - Banks                                                                       -                     -                      -                 4.512                               -                     -                     -                         -                   -                        -            4.512

   - Clients                                                                     -                     -                 139                           -                           39                     -                     8                 21.651                      2                        -           21.839

B .2 Tito them debt                                                            26                      -                      -                        -                            -                    85                     -                         -                   -                        -             111

B .3 Other pas s CALLS                                                          9                      -                      -                        -                            -                     -                     -                   3.640                     -                        -            3.649

Ope ra ni uncle "FUO bilateral re n I"                                           -                -                           -                        -                            -                     -                     -                         -                   -                        -                -

C .1 Financial derivatives exchange co ns capital                                -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

   - P os izio ni long                                                           -                42                    2.351                  17.763                       29.002                  9.059                 28.634                          -                   -                        -           86.851

   - P izio ni os co rte                                                         -                42                    2.351                  17.763                       29.002                  9.059                 28.634                          -                   -                        -           86.851

C .2 s financial derivatives exchange enza s capital                             -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

   - P os izio ni long                                                           -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

   - P izio ni os co rte                                                         -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

C .3 Depo s ites and loans receivable                                            -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

   - P os izio ni long                                                           -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

   - P izio ni os co rte                                                         -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

C .4 irrevocable commitments are open to competition was fo ndi                  -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

   - P os izio ni long                                                           -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

   - P izio ni os co rte                                                         -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -

C .5 Financial guarantees mak ciate                                              -                     -                      -                        -                            -                     -                     -                         -                   -                        -                -




        227
1.3 Breakdown by residual maturity of financial assets and liabilities - currency: CHF


                                                                                   For over     1       For over 7        For over     15         For over    1         For over   3       For over   6       For over        1
                                                                                                                                                                                                                                       In
                                                                                                                                                                                                                                       additio
                  Vo ci / S cag ni lio you overheat them m        Overnight         to 7 days              15 days            1 days            month until to 3       months to   to 6 months to     to 1 Y ear     up      to 5      n         5 years   Inde you rm ina ta       Total
                                                                                      days                 days            month                     months             months              Y ear                  to nni


By activating ity pe rcassa                                                   23                266              49                  2 .6 2 9                1.0 6 9               338                231                   1.15 6                     -                        -           5 .7 6 1

A.1 them of Tito's Committee                                                   -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

A.2 Tito them debt quo results                                                 -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

Tito them A.3 Other debt                                                       -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

A.4 Quo you OIC. R.                                                            -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

A.5 Loans                                                                     23                266                  49               2.629                   1.069                338                231                   1.156                      -                        -             5.761

   - Banks                                                                     -                    -                 -                     -                      -                   -                  -                 1.075                      -                        -             1.075

   - Clients                                                                  23                266                  49               2.629                   1.069                338                231                         81                   -                        -             4.686

Funding in fferenza know                                                                                                                                                                                                                                                                           -

Funding ins or Luti                                                                                                                                                                                                                                                                                -

P ass iv ity pe rcassa                                                         6                    -                 -              4 .3 8 1                1.0 11                    -                  -                  548                       -                        -           5 .9 4 6
                                                                                                                                                              1.01
B .1 iti s Depo                                                                6                    -                 -               4.381                   1                        -                  -                   548                      -                        -             5.946
                                                                                                                                                              1.01
   - Banks                                                                     6                    -                 -               4.381                   1                        -                  -                        -                   -                        -             5.398

   - Clients                                                                   -                    -                 -                     -                      -                   -                  -                   548                      -                        -               548

B .2 Tito them debt                                                            -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

B .3 Other pas s CALLS                                                         -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

Ope ra ni uncle "FUO bilateral re n I"                                         -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

C .1 Financial derivatives exchange co ns capital                              -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

   - P os izio ni long                                                         -                    -                 -                     -                 1.348                    -                  -                        -                   -                        -             1.348

   - P izio ni os co rte                                                       -                    -                 -                     -                 1.348                    -                  -                        -                   -                        -             1.348

C .2 s financial derivatives exchange enza s capital                           -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

   - P os izio ni long                                                         -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

   - P izio ni os co rte                                                       -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

C .3 Depo s ites and loans receivable                                          -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

   - P os izio ni long                                                         -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

   - P izio ni os co rte                                                       -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

C .4 irrevocable commitments are open to competition was fo ndi                -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

   - P os izio ni long                                                         -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

   - P izio ni os co rte                                                       -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -

C .5 Financial guarantees mak ciate                                            -                    -                 -                     -                      -                   -                  -                        -                   -                        -                  -




228
1.4 Breakdown by residual maturity of financial assets and liabilities - currency: GBP


                                                                                    For over     1       For over 7           For over     15         For over    1        For over   3       For over   6       For over        1
                                                                                                                                                                                                                                         In
                                                                                                                                                                                                                                         additio
                  Vo ci / S cag ni lio you overheat them m        Overnight          to 7 days              15 days               1 days            month until   to 3    months to   to 6 months to     to 1 Y ear     up       to 5    n         5 years   Inde you rm ina ta       Total
                                                                                        days                days               month                     months            months              Y ear                  to nni


By activating ity pe rcassa                                                   647                    -                7                   5 .114                  18 6                    -                  -                 1.3 9 9                   -                        -           7 .3 5 3

A.1 them of Tito's Committee                                                    -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

A.2 Tito them debt quo results                                                  -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

Tito them A.3 Other debt                                                        -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

A.4 Quo you OIC. R.                                                             -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

A.5 Loans                                                                     647                    -                7                   5.114                   186                     -                  -                  1.399                    -                        -             7.353

   - Banks                                                                      -                    -                    -                     -                     -                   -                  -                  1.399                    -                        -             1.399

   - Clients                                                                  647                    -                7                   5.114                   186                     -                  -                       -                   -                        -             5.954

Funding in fferenza know                                                                                                                                                                                                                                                                             -

Funding ins or Luti                                                                                                                                                                                                                                                                                  -

P ass iv ity pe rcassa                                                        694                    -                -                  5 .5 0 0                     -                   -                  -                 1.3 11                    -                        -           7 .5 0 5

B .1 iti s Depo                                                               694                    -                    -               5.500                       -                   -                  -                  1.311                    -                        -             7.505

   - Banks                                                                    694                    -                    -               5.500                       -                   -                  -                       -                   -                        -             6.194

   - Clients                                                                    -                    -                    -                     -                     -                   -                  -                  1.311                    -                        -             1.311

B .2 Tito them debt                                                             -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

B .3 Other pas s CALLS                                                          -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

Ope ra ni uncle "FUO bilateral re n I"                                          -                    -                -                         -                     -                   -                  -                       -                   -                        -                  -

C .1 Financial derivatives exchange co ns capital                               -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

   - P os izio ni long                                                          -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

   - P izio ni os co rte                                                        -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

C .2 s financial derivatives exchange enza s capital                            -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

   - P os izio ni long                                                          -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

   - P izio ni os co rte                                                        -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

C .3 Depo s ites and loans receivable                                           -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

   - P os izio ni long                                                          -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

   - P izio ni os co rte                                                        -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

C .4 irrevocable commitments are open to competition was fo ndi                 -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

   - P os izio ni long                                                          -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

   - P izio ni os co rte                                                        -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -

C .5 Financial guarantees mak ciate                                             -                    -                    -                     -                     -                   -                  -                       -                   -                        -                  -




        229
1.5 Breakdown by residual maturity of financial assets and liabilities - currency: JPY


                                                                                   For over     1       For over   7       For over 15         For over    1        For over   3       For over   6       For over       1
                                                                                                                                                                                                                                   In
                                                                                                                                                                                                                                   additio
                  Vo ci / S cag ni lio you overheat them m        Overnight         to 7 days              15 days             1 days        month until   to 3    months to   to 6 months to     to 1 Y ear     up     to 5       n         5 years   Inde you rm ina ta       Total
                                                                                      days                 days             month                 months            months              Y ear                  to nni


By activating ity pe rcassa                                                   14                550                17 6            1.4 0 1                 647                 340                    -                   21                       -                        -           3 .14 9

A.1 them of Tito's Committee                                                   -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

A.2 Tito them debt quo results                                                 -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

Tito them A.3 Other debt                                                       -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

A.4 Quo you OIC. R.                                                            -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

A.5 Loans                                                                     14                550                176             1.401                   647                 340                    -                      21                    -                        -            3.149

   - Banks                                                                     -                    -                  -                 -                     -                   -                  -                      21                    -                        -               21

   - Clients                                                                  14                550                176             1.401                   647                 340                    -                        -                   -                        -            3.128

Funding in fferenza know                                                                                                                                                                                                                                                                      -

Funding ins or Luti                                                                                                                                                                                                                                                                           -

P ass iv ity pe rcassa                                                         2                    -                  -          2 .2 3 0                 9 16                    -                  -                   19                       -                        -           3 .16 7

B .1 iti s Depo                                                                2                    -                  -            2.230                  916                     -                  -                      19                    -                        -            3.167

   - Banks                                                                     2                    -                  -            2.230                  916                     -                  -                        -                   -                        -            3.148

   - Clients                                                                   -                    -                  -                 -                     -                   -                  -                      19                    -                        -               19

B .2 Tito them debt                                                            -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

B .3 Other pas s CALLS                                                         -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

Ope ra ni uncle "FUO bilateral re n I"                                         -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

C .1 Financial derivatives exchange co ns capital                              -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

   - P os izio ni long                                                         -                    -                  -                 -                     -               225                    -                        -                   -                        -              225

   - P izio ni os co rte                                                       -                    -                  -                 -                     -               225                    -                        -                   -                        -              225

C .2 s financial derivatives exchange enza s capital                           -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

   - P os izio ni long                                                         -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

   - P izio ni os co rte                                                       -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

C .3 Depo s ites and loans receivable                                          -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

   - P os izio ni long                                                         -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

   - P izio ni os co rte                                                       -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

C .4 irrevocable commitments are open to competition was fo ndi                -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

   - P os izio ni long                                                         -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

   - P izio ni os co rte                                                       -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -

C .5 Financial guarantees mak ciate                                            -                    -                  -                 -                     -                   -                  -                        -                   -                        -                 -




230
1.6 Breakdown by residual maturity of financial assets and liabilities - currency: CZK


                                                                                       For over     1        For over       7           For over 15           For over         1        For over   3       For over      6       For over       1
                                                                                                                                                                                                                                                          In
                                                                                                                                                                                                                                                          additio
                  Vo ci / S cag ni lio you overheat them m        Overnight            day        to 7                15 days               1 days        month     up        to 3     months to   to 6 months to        to 1 Y ear     up     to 5       n         5 years   Inde you rm ina ta       Total
                                                                                          days                 days                      month                    months                months              Y ear                     to nni


By activating ity pe rcassa                                                   42                         -                      -                     -                            -                   -              3 .7 3 0                      5                     -                        -           3 .7 7 7

A.1 them of Tito's Committee                                                       -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

A.2 Tito them debt quo results                                                     -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

Tito them A.3 Other debt                                                           -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

A.4 Quo you OIC. R.                                                                -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

A.5 Loans                                                                     42                         -                          -                     -                        -                   -               3.730                          5                   -                        -             3.777

   - Banks                                                                         -                     -                          -                     -                        -                   -                     -                        5                   -                        -                 5

   - Clients                                                                  42                         -                          -                     -                        -                   -               3.730                          -                   -                        -             3.772

Funding in fferenza know                                                                                                                                                                                                                                                                                              -

Funding ins or Luti                                                                                                                                                                                                                                                                                                   -

P ass iv ity pe rcassa                                                        27                         -                      -                     -                    3 .7 3 2                    -                     -                      5                     -                        -           3 .7 6 4

B .1 iti s Depo                                                               27                         -                          -                     -                 3.732                      -                     -                        5                   -                        -             3.764

   - Banks                                                                    27                         -                          -                     -                 3.732                      -                     -                        -                   -                        -             3.759

   - Clients                                                                       -                     -                          -                     -                        -                   -                     -                        5                   -                        -                 5

B .2 Tito them debt                                                                -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

B .3 Other pas s CALLS                                                             -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

Ope ra ni uncle "FUO bilateral re n I"                                         -                         -                      -                     -                            -                   -                     -                        -                   -                        -                  -

C .1 Financial derivatives exchange co ns capital                                  -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

   - P os izio ni long                                                             -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

   - P izio ni os co rte                                                           -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

C .2 s financial derivatives exchange enza s capital                               -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

   - P os izio ni long                                                             -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

   - P izio ni os co rte                                                           -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

C .3 Depo s ites and loans receivable                                              -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

   - P os izio ni long                                                             -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

   - P izio ni os co rte                                                           -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

C .4 irrevocable commitments are open to competition was fo ndi                    -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

   - P os izio ni long                                                             -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

   - P izio ni os co rte                                                           -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -

C .5 Financial guarantees mak ciate                                                -                     -                          -                     -                        -                   -                     -                        -                   -                        -                  -




        231
1.7 Breakdown by residual maturity of financial assets and liabilities - currency: OTHER CURRENCIES

                                                                                  For over     1        For over         7       For over    15         For over    1        For over   3       For over   6       For over        1
                                                                                                                                                                                                                                            In
                                                                                                                                                                                                                                            additio
                  Vo ci / S cag ni lio you overheat them m        Overnight       day        to 7                  15 days           1 days           month until   to 3    months to   to 6 months to     to 1 Y ear     up       to 5     n       5 years       Inde you rm ina ta       Total
                                                                                     days                  days                   month                    months            months              Y ear                  to nni


By activating ity pe rcassa                                                   -                     -                        -                    -                  39                     -                  -                 1.2 6 9                      -                        -           1.3 0 8

A.1 them of Tito's Committee                                                  -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

A.2 Tito them debt quo results                                                -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

Tito them A.3 Other debt                                                      -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

A.4 Quo you OIC. R.                                                           -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

A.5 Loans                                                                     -                     -                        -                    -                  39                     -                  -                  1.269                       -                        -            1.308

   - Banks                                                                    -                     -                        -                    -                     -                   -                  -                  1.217                       -                        -            1.217

   - Clients                                                                  -                     -                        -                    -                  39                     -                  -                       52                     -                        -               91

P ass iv ity pe rcassa                                                        -                     -                        -                    -                     -                   -                  -                 1.3 8 5                      -                        -           1.3 8 5

B .1 iti s Depo                                                               -                     -                        -                    -                     -                   -                  -                  1.385                       -                        -            1.385

   - Banks                                                                    -                     -                        -                    -                     -                   -                  -                       76                     -                        -               76

   - Clients                                                                  -                     -                        -                    -                     -                   -                  -                  1.309                       -                        -            1.309

B .2 Tito them debt                                                           -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

B .3 Other pas s CALLS                                                        -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

Ope ra ni uncle "FUO bilateral re n I"                                        -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

C .1 Financial derivatives exchange co ns capital                             -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

   - P os izio ni long                                                        -                     -                        -              8.310                       -                   -                  -                        -                     -                        -            8.310

   - P izio ni os co rte                                                      -                     -                        -              8.310                       -                   -                  -                        -                     -                        -            8.310

C .2 s financial derivatives exchange enza s capital                          -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

   - P os izio ni long                                                        -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

   - P izio ni os co rte                                                      -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

C .3 Depo s ites and loans receivable                                         -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

   - P os izio ni long                                                        -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

   - P izio ni os co rte                                                      -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

C .4 irrevocable commitments are open to competition was fo ndi               -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

   - P os izio ni long                                                        -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

   - P izio ni os co rte                                                      -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -

C .5 Financial guarantees mak ciate                                           -                     -                        -                    -                     -                   -                  -                        -                     -                        -                 -




232
Section 4 Operational risks

Qualitative information

A. General, management processes and methods for measuring operational risk
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 others, losses resulting from fraud, human error, business disruption,
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, generating the
adverse event, or effect, which is directly connectable to an economic loss.
We define, therefore, all the operating loss resulting from adverse economic effects of an operational nature events as
recorded in company accounts and unlikely to have impact on the income statement.
In developing 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 the Senior Management. The Group policy provides that
operational risks are identified, measured and monitored as part of the overall process of Operational Risk Management with
the following objectives:
     • identify the causes of adverse events leading to operating losses and, consequently, increase profitability and improve
          management efficiency through the identification of critical areas, their monitoring and optimization of the control
          system;
     •    optimize mitigation policies and risk transfer such as, for example those of insurance, in light of the extent and
          actual exposure to risk;
     •    optimize the allocation and absorption of operational risk capital and provisioning policies with the goal of creating
          value for shareholders;
     •    support decision making on the opening of new businesses, 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 dated 27/12/2006 by 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 Financial Regulator for use an internal model of type Advanced (Advanced
Measurement Approach, AMA) in the method used in conjunction with TSA (AMA partial, where with the use of "partial"
means the adoption of the method for only a few AMA Business Line), currently adopted for only management purposes.


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. Within the parent company was formed a committee with tasks of Operational Risk and
verification of the overall process of Operational Risk Management and Risk Management in the Area is also working on a
specific service ("Operational Risk") dedicated to the design development and maintenance of business methods for
detection, measurement, monitoring and verifying the effectiveness of mitigation of operational risk and related systems

     233
reporting. For the design and development of the methodological and structure of the AMA model as well as the maintenance
of your calculation, the Operational Risk Management has the support of the Service Models Methodologies and operating
within the Area Risk Management. Within the Risk Capital & Policies are also working on OpRisk & Policies Financial
Services, responsible, in collaboration with other organizational units, the definition of policy management, control and
mitigation of operational risks including those of insurance risk Management and Service Models and Process Validation,
head of the validation process.
The organizational model of the Bank is divided into four levels of responsibility:
     •    Contact Operational Risk (RRO) is responsible within its own legal entity, 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 risk management process in place 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. Participate 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 any recoveries obtained, through the activation of
        specific policies insurance;
    •   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 l ' intended to provide a self-critical operations with regard
        to 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 Centre DIPO
        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 requirements for the establishment 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 within the area through the Risk Management SAS OpRisk VaR
        calculation engine and SAS integration through the adoption of the Bayesian method to the information sources
        described above (internal losses, external risk assessment).




234
Reporting
To support the monitoring of operational risks has created 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 the 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, top management of the Parent and the main banks and companies of the Group and the
Operational Risk Committee, is regularly prepared centrally by the Operational Risk Management and includes, with degrees
of detail and temporal frequency (monthly / quarterly) differentiated according to needs, andamentale analysis of internal loss
and its recovery is accompanied by a comparison with external data system, the results of the assessment of exposure to risk
by identifying areas of vulnerability and the description 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 prudential supervision (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 European Regional Bank is involved in several legal proceedings and various kinds of legal proceedings arising out of
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.




     235
Quantitative information
The graphs below show that the main source of operational risk for the Bank in January 2004 - December 2009 "Processes"
(55% and 18% of the impacts of frequencies) and People (human factor) (23% impacts and <1% frequency).
The risk drivers "Processes", among other things, includes the unintentional errors of process execution and the incorrect
application of the legislation. The risk drivers' People Factor (Human) "includes internal employees and fraudulent violations
of labor standards.

                      Effect of operating losses for Risk Driver (survey in January 2004 - December 2009)



                                         Number of events                                                                   Economic Impact
                                                  0%
                                                                                                                            0%
                            18%                                                                                                               22%

                  0%




                                                                                                        55%
                                                                                                                                                23%


                                                                    81%
                                                                             External causes (External Context)
                                                                             People (Human Factor)
                                                                             Processes
                                                                             Systems




The performance impact gross of insurance recoveries and other recoveries outside of a reduction of 62% over the previous
year due to the decrease in customer complaints relating to bonds in default and compound interest and the criminality of card
fraud and theft / robbery. In terms of number of events the last two years shows an increase in debit card fraud for which they
have been set up appropriate interventions to prevent and reduce the risks they have done to reverse them during 2009.

                               Distribution of operational losses by year of survey (January 2004 - December 2009)


                35%

                30%

                25%

                20%

                15%

                10%

                 5%

                 0%
                                  2004                   2005                  2006                   2007           2008        2009


                                                                                No Events        Impacts




236
                                      List of five major losses recognized in the period January 2004 - December
                                                         2009

Business Line                                         Event Type (Liv. I)                                                                                                     Impacts             Recoveries
Retail Banking                                        Internal fraud                                                                                                          8.118.266             4.722.271

Trading & Sales                                       Clients, Products & Business Practices                                                                                  5.579.000                     0

Retail Banking                                        Employment Practices and Safety at Work                                                                                   867.716                     0

Retail Banking                                        External fraud                                                                                                             750.000                    0

Commercial Banking                                    Clients, Products & Business Practices                                                                                     617.167                    0


The analysis of operating losses about the data recorded in the period between 1 January 2004 and December 31, 2009 shows
a concentration phenomenon in the type of event "External fraud (61% frequency and 52% of the total impacts detected) and"
Clients, Products & Business Practices "(10% frequency and 23% 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).



                                        Effect of the relative abundance of operating losses for Event Type (which happens in January 2004 - December 2009)



                               Clients, Products & Business Practices

                                        Damage from external events

                         Execution, delivery and process management

                                                       External fraud

                                                        Internal fraud

                                       Disruption 'and system failures

                           Employment Practices and Safety at Work


                                                                          0%                10%                 20%                30%               40%                50%                 60%     70%


                                                                                         Internal data (LDC)          External data (Dipo)


                                                                     Impact of the economic impact of operational losses for Event Type (which happens in January 2004 - December 2009)



                   Clients, Products & Business Practices

                                        Damage from external events

            Execution, delivery and process management

                                                   External fraud

                                                    Internal fraud

    Disruption 'and system failures

                Employment Practices and Safety at Work


                                                                          0%                   10%                    20%                    30%                 40%                      50%       60%


                                                                                          Internal data (LDC)         External data (Dipo)




UBI Banca Group contributes to the overall frequency of 6.90% and 5.53% for the impacts of the Association DataBase
DIPO-ABI.




                                                                                                                                                                                                          237
Capital requirement

The Bank shall take over from 2008, the standardized approach (TSA) for calculating the capital charge on operational risk
(cfr.Circolare Bank of Italy 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 income statement of the budget circular former Bank of Italy 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 53.6 million euro. It absorbed 54% of the retail banking business line, 21% from
Commercial Banking, the Trading & Sales by 12% and 11% from the retail brokerage. The average coefficient of absorption
is significant when compared to 13%.
The capital requirement at December 31, 2009 shows a reduction of EUR 4 million (-7%) compared to December 31, 2008
primarily due to the reduction in operating income.




238
Part F - Information on capital
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 all of the choices to define the size and the optimum combination of various means of capitalization, so
that the capital base is consistent with the risk appetite of the Bank, in accordance with the requirements of supervision.

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 the latter condition occurred, the Bank of such reduction. Membership shall UBI, finally, constitutes a valid and
continuing assurance that the regulatory capital will always be met by using, where appropriate, for capital increases.


B - Quantitative information
B 1 Heritage: breakdown



                                                      Vo ci / it should be re                    3 1 / 12 / 2 0 0 9             3 1 / 12 / 2 0 0 8



1. Capital                                                                                                            442.000                        442.000

2. So I do vrapprezzi emission s                                                                                            -                              -

3. Res erve                                                                                                           367.613                        361.978

        - Profit                                                                                                      333.861                        328.226

        a) Legal                                                                                                       58.430                         52.856

        b) statutory                                                                                                  282.803                        248.991

        c) Azio ni pro Prie                                                                                                 -                              -

        d) other                                                                                                      (7.372)                         26.379

        - Other                                                                                                        33.752                         33.752

4. Equity instruments                                                                                                       -                              -

5. (Azio ni pro Prie)                                                                                                       -                              -

6. Res erve from evaluation method                                                                                    115.406                        122.932

        - Financial assets available for sale dis bit                                                                   (221)                          6.874

        - Tangible assets                                                                                                   -                              -

        - Intangible assets                                                                                                 -                              -

        - Co coverage of INVES timenti teri es                                                                              -                              -

        - Co coverage of the financial flow is                                                                              -                              -

        - Exchange differences                                                                                              -                              -

        - Do not co n rrenti being dis mis s I will                                                                         -                              -

        - Gains (losses) related to defined benefit pension plans                                                     (3.015)                        (2.584)

        - Quo evaluation by you of the res erve it related to investments accounted for the PN                              -                              -

        - Read Value Quality's revaluation of its                                                                     118.642                        118.642

7. Net income (loss) es ercizio                                                                                        54.618                        111.490
Total                                                                                                          9 7 9 .6 3 7                 1.0 3 8 .4 0 0




                                                                                                                                                               239
B 2 Valuation reserves for financial assets available for sale:


                                                                                                                 3 1 / 12 / 2 0 0 9                                                         3 1 / 12 / 2 0 0 8
                                           By activating eng / should be the re

                                                                                          R and RV is a bit s in itiv           And R is a ne ga tiv a rv               R and RV is a bit s in itiv             And R is a ne ga tiv a rv
1.Tito them debt                                                                                                        -                                       -                                     -                                       -

2. Tito them capital                                                                                                    -                                (34)                               6.924                                             -

3. Quo you for OIC. R.                                                                                                  -                              (187)                                          -                                    (50)

4. Funding                                                                                                              -                                       -                                     -                                       -
                                                                                  Total                                 -                             (2 2 1)                               6 .9 2 4                                   (5 0 )




B 3 Valuation reserves available for sale financial asset