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ANNUAL REPORT as of 31 December 2009

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ANNUAL REPORT as of 31 December 2009 Powered By Docstoc
					   ANNUAL REPORT

       as of
31 December 2009
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3
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                                    ANNUAL REPORT
                       AS OF DECEMBER 31, 2009




Banca Popolare di Bergamo
Limited Company

Share capital: € 1,350,514,252.00 fully paid

Tax code and registration number of the Register of Companies of Bergamo 03034840169

Headquarters and Headquarters: Piazza Vittorio Veneto, 8 - 24122 Bergamo

Part of the "Gruppo UBI Banca"

Member of the Interbank Fund for Deposit Protection Fund and the National Guarantee

Subject to the direction and coordination of the Union of Italian Banks ScpA

                                                                      As of 18 March 2010


                                                                                            5
6
Contents
Our "Mission" ............................................. .................................................. 8 .....
Corporate Boards and General Manager ............................................. ............................... 9
Territorial structure of the UBI Banca Group ............................................ ............. 10
The rating ................................................ .................................................. .................... 11
Highlights
'Report ............................................... ............................................. 15
   The reference scenario .............................................. ............................................... 17
   The activities of the Banca Popolare di Bergamo in 2009 ........................................ .............. 27
   Report on Corporate Governance and Ownership Structure .......................................... ..... 38
   Reclassified financial statements .............................................. .................................... 41
   The research and development ........................................... ............................................ 53
   Contracts with Group companies ............................................ .................... 54
   OTHER INFORMATION
   Significant events after the balance sheet ........................................ .......... 70
   Outlook for the year .............................................. .............................. 71
   Proposals to the assembly: the target project earnings for the year ......................... 72
   Notice of ordinary ........................................... ................ 74
Certification of the Chairman of the Board of Directors and Officer
pursuant to art. 154-bis of Legislative Legislative Decree 58/98 ............................................... ..................
75
Financial Statements ................................................ .................................................. ... 78
   Balance sheet ................................................ ................................................. 79
    ...................................................................................................80
   Income statement
   Statement Of Comprehensive Income
   Statement of changes in shareholders' equity ............................................ ............. 83
   Statement of Cash Flows ................................................ .......................................... 85
Notes ............................................... .................................................. ... 86
PART A - ACCOUNTING POLICIES
   A.1 - GENERAL PART
       Section 1                A.1.1 Statement of Compliance with International Accounting Standards
       Section 2                Basis of preparation .............................................. ................ 88
       Section 3                Events after the balance sheet date .......................... 90
       Section 4                Other aspects ................................................ ........................................ 90
       List of IAS / IFRS endorsed by the European .......................... 93
   A.2 - the major budget items ....................................... ........... 97
   A.3 - Information on fair value .......................................... .................................. 119
PART B – NOTES TO THE BALANCE SHEET
Part C – Notes to the Income Statement
PART D - TOTAL EARNINGS
INFORMATION ON RISKS AND RELATED HEDGING POLICIES
       Section 1                Credit risk. 182
       Section 2                Market risk. 201
       Section 3                Liquidity risk ............................................... ............................ 227
       Section 4                Operational risk 233
PART F – INFORMATION ON EQUITY
PART G - BUSINESS COMBINATIONS
Part H - Related-party transactions
Part I - Share-based payments equity-................... 249
Part L - Segment reporting
Attached to the Financial Statements ............................................ ..................................... 252
Territorial structure ................................................ .......................................... 258
Independent Auditors report ............................................. ........................... 286
Statutory Auditor's Report .............................................. ................................ 289




                                                                                                                           7
Our "Mission"




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



      We are strongly involved in the economic and social life
       the territory where we operate, with one distinguishing feature of
     interpret, serve and promote the development of local economies.



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



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



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




8
Company Officers and General Management

BOARD OF DIRECTORS

Chairman                        (*)   Emilio Zanetti



Deputy Chairman                 (*)   Antonio Parimbelli
                                (*)   Guido Lupini

Directors                             Giampiero Auletta Armenise
                                (*)   Mauro Bagini
                                      Alberto Barcella
                                      Pierpaolo Camadini
                                      Mario Comana
                                      James Fustinoni
                                (*)   Francesco Lechi
                                (*)   Gregory Magnetti
                                (*)   Victor Massiah
                                      Raffaele Rizzardi
                                      Louis Rogan Peak
                                      Laura Viganò
(*)     Executive Committee members

BOARD OF STATUTORY AUDITORS

Chairman                              Ferruccio Rota Sperti

Statutory Auditors                    Antonio Amador
                                      Luigi Piantoni

Alternate Auditors                    Alberto Carrara
                                      Maurizio Vicentini

GENERAL MANAGEMENT

General Manager                       Joseph Masnaga

Joint General Manager                 Osvaldo Ranica

Deputy General Director               Silvano Manella
                                      Richard Tramezzani

INDEPENDENT AUDITORS

KPMG S.p.A.

Senior Officer Responsible in accordance with                      Art.   154 bis

Elisabetta Stegher


                                                                     As of 18 March 2010



                                                                                           9
Territorial structure of the UBI Banca Group




10
Rating
The following tables summarize the opinions of the rating assigned to the Group
Standard & Poor's, Fitch Ratings, Moody's.

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

On 1 July 2009 Moody's, at the end of the review process started on 18 ratings
on 22 May and 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,
equal to A3) with Negative Outlook. The long-term rating, equivalent to A1 with a stable outlook,
was confirmed on June 18, 2009.
Even Moody's in 2009 completed the process of reviewing their
rating methodology of hybrid instruments. The rating of these instruments has been released from
reference to "long-term debt and deposit ratings, which also incorporates an assessment
the likelihood of an intervention of external support, but was directly related to
"Bank Financial Strength Rating" (and related to the "Baseline Credit Assessment") as
expression of the inherent strength of the borrower.
Consequently, on November 18 have been placed under observation for possible
Downgrade 775 titles worldwide. On February 9, 2010 Moody's adjusted the rating
of hybrid instruments issued by Italian banks, bringing its rating on the preference shares
UBI Banca from A3 (equivalent to "long-term debt and deposit rating two notches less) to
Baa3 (corresponding to at least three notch BCA) 2, with negative outlook.

Finally, with regard Fitch Ratings, October 14, 2009 the agency has confirmed the
value judgments in place with a stable outlook.
In early 2010, Fitch has published a review of the rating methodology on
hybrids, in which it was expected an increase in the scale of
applied with respect to notch rating of reference, the deafult Issuer Rating. This resulted in
a general downgrade of 592 bank instruments examined in the world -
official in a press release dated 29 January 2010 - to the extent of one notch to the
almost all cases. In detail, the rating on the preference shares is so UBI Banca
increased from A to A-3.

In all cases of the hybrid above downgrade it came to actions
purely technical nature, that have nothing to do with the assessment of the soundness
intrinsic UBI Banca.




1
  Preference shares and subordinated long-term or perpetual (Upper Tier II) with interest payment
referred to it.
2
  At the same time Moody's Upper Tier II issue of UBI Bank in circulation, which expired on
  after February 23, 2010, rose from A2 (equivalent to long-term rating one notch less) to Baa1
  (Corresponding to a notch less BCA).
3 At the date of the press was still in place the issue of Upper Tier II UBI Banca expired on February 23

  2010, whose rating was similarly lowered by Fitch to A-.

                                                                                                            11
     STANDARD & POOR'S                                   (I) Ability to repay debt maturing
     Short-term Counterparty Credit            A-1             less than 1 year
     Rating (s)                                               (A-1: best rating - D: worst rating)
     Long-term Counterparty Credit                       (Ii) With respect to debts exceeding
     Rating (ii)                                A              1 year, indicating the ability to pay
     OUTLOOK                                  Stable           interest and principal, together with
     REVIEWS ON EMISSIONS                                      a possible sensitivity to the effects
     Senior unsecured debt                      A              unfavorable change in circumstances or
     Subordinated debt (lower tier II)          A-             to changing economic conditions
     Tier III Subordinated debt               BBB+            (AAA: best rating - D: worst rating)
     Preference shares                         BBB
     French Certificats de Dépôt
     Programme                                 A-1




     MOODY'S
                                                         (I) capacity to repay foreign currency debt
     Long-term debt and deposit ratings (I)     A1             local long-term (maturing or
     Short-term debt and deposit ratings                       more than 1 year). Through
                                              Prime-1
     (II)                                                      methodology JDA (Joint Default Analysis)
     Bank Financial Strength Rating                            This rating combines the robustness
                                                C.
     (BFSR) (III)                                              Intrinsic Financial (Bank Financial
     Baseline Credit Assessment (BCA)           A3             Strength Rating) evaluation on
     Outlook (deposit ratings)                Stable           probability of intervention, if
     Outlook (Bank Financial Strength                          necessary, by external support
                                              Negative
     - Rating)                                                 (Shareholders, group or
     REVIEWS ON EMISSIONS                                      official institutions)
     Senior unsecured LT                        A1
                                                              (Aaa: first quality - Baa3 quality)
     Senior unsecured ST                        P-1      (II) capacity to repay foreign currency debt
     Lower Tier II subordinated                 A2              local short-term (maturity of less than
     Tier III Subordinated                      A2              1 year)
                                                               (Top-1: top quality - Not Prime:
     Preference shares                         Baa3
     (Formerly BPB-CV and Banca                                speculative grade)
     Lombarda)                                Prime-1(III) This rating does not relate to the ability
     € Commercial Paper Programme                           repayment of debt, but takes into
                                          Prime-1
     French Certificats de Dépôt                            account the financial soundness
     Programme                              Aaa             intrinsic Bank (through the analysis
     Covered Bond                                           factors such as geographical locations, the
      diversification, the financial fundamentals), in the absence of external support
      (A: best rating - E: worst rating)




12
                                                       (1)   capacity to repay debt in the short
      FITCH RATINGS                                           term (lasting less than 13 months)
      Short-term Issuer Default Rating (1)    F1             (F1: best rating - D: worst rating)
      Long-term Issuer Default Rating (2)     A
                                                       (2) Ability to meet punctually
      Bank Individual Rating (3)             B/C
                                                             long-term financial commitments
      Support Rating (4)                       2             regardless of the expiration of
      Support Rating Floor (5)               BBB             individual bonds. This rating is a
      Outlook for Long-term Issuer Default                   indicator of the likelihood          default
      Rating                                 Stable          issuer
      REVIEWS ON EMISSIONS                                   (AAA: best rating - D: worst rating)
      Senior unsecured debt                   A        (3) Evaluation of the intrinsic strength of
      Lower Tier II subordinated               A            Bank (profitability, balance the budget,
      Preference shares                       A-            commercial network capacity
      Tier III Subordinated debt               A-           management, operating environment and
      € Commercial Paper Programme             F1           perspective), view the assumption that the
      Covered bonds                           AAA           same can not rely on forms
                                                            external support (if any intervention
                                                            a lender of last resort support
      shareholders, etc..) (A: best rating - E: worst rating)
(4)   Judgement on any chance, adequacy and timeliness of outside intervention
      (By the state or large institutional reference) if the Bank
      was in trouble (1: best rating - 5: worst rating)
(5)   This rating gives additional information, which is closely related to
      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.




                                                                                                            13
Highlights
(in million EUR)



 BANCA POPOLARE DI BERGAMO S.p.A.                                                 31/12/2009            31/12/2008



BALANCE SHEET, FINANCIAL, AND OPERATIONAL STRUCTURE

Loans to customers                                                                         19.959              19.719

- of which impaired                                                                              949                 360

Direct funding from customers                                                              23.696              997,054

Indirect customer deposits, including savings insurance (market value)                     26.544              27.555

Total financial wealth                                                                     50.241              52.610

Shareholders' equity (excluding profit for the year)                                            1.721            1.439

Income (loss) before tax from continuing operations                                              285                 584

Profit/ loss for the period                                                                      179                 373

Actual Number of Employees                                                                      3.736            3.761

Number of operating branches                                                                     375                 361



INDEX STRUCTURE

Customer loans / customer deposits                                                             84.23%          78.71%

Assets under management (including insurance) / Indirect                                       41.34%          37.65%



PROFITABILITY RATIOS ', efficiency and productivity'

ROE (Net income / Shareholders' equity excluding net income)                                   10.40%          25.91%

ROE excluding non-recurring items                                                              10.16%          26.03%

COST / INCOME 1 (operating expenses / operating income)                                        55.23%          43.39%

COST / INCOME 2 (operating costs adjustments to receivables / operating income)                67.62%          48.90%

Tax                                                                                            36.67%          34.39%

Tax rate normalized                                                                            38.68%          35.85%

Net interest income / operating income                                                         62.23%          68.33%

Net commission income / operating income                                                       34.89%          30.58%

Net commission income / staff expenses                                                    111.73%             121.08%

Net adjustments to loans / credits to customers                                                 0.55%           0.32%



RISK RATIOS

Doubtful loans / Loans to customers                                                             1.25%           0.76%

Loans / Loans to customers                                                                      4.76%           1.83%

% Coverage suffering                                                                           43.37%          48.02%

% Total non-performing loans coverage                                                          20.58%          32.09%

% Coverage of performing loans                                                                  0.38%           0.30%



CAPITAL RATIOS

C.2 Tier 1 capital / Risk-weighted assets                                                      11.30%           9.83%

Regulatory capital / Risk-weighted assets                                                      13.17%          11.52%




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



14
Report on operations




                       15
16
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 banks
plants were in fact reflected in a general recovery of the prices of instruments
financial markets: the diminished risk aversion and the low level of interest rates in
major economies have encouraged investment flows to currencies and more
high expected return, the risk premiums on corporate bonds have
further reduced, 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, using the
market in most cases, while the premiums on credit default swaps, which in October
2009, had already returned to the values observed on the eve of the bankruptcy of Lehman Brothers,
continued to decline last quarter, but still remain well
above the level of 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 an excess of 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 main
Central Banks announced a gradual reduction of non-traditional measures
taken after the outbreak of the financial crisis 4, it continues to ensure
necessary degree of liquidity through the temporary continuance of the reference rates
in many cases to levels approaching zero 5.

In 2009 he opened the debate on reforms to be undertaken to avoid
repeated in future financial crises. In particular:
          in Europe, in May after the publication of a proposed reform of the supervisory
          the financial system, the European Commission presented in September a
          draft legislation that would give effect to the new architecture. The
          project envisages the establishment of a European Council that will take care of
          macro-prudential supervision (European Systemic Risk Board) 6, while the


4   At its meeting on 16 December 2009 the Federal Reserve, reiterating its intention to maintain an orientation
    expansionary for a period of time, said he did not believe more must renew
    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
    the intention to further reduce the amount of funding offered under the Term Asset-Backed
    Securities Loan Facility.
    At its meeting in early December, the ECB also has further demonstrated its commitment to provide the necessary liquidity to
    EUR area banking system, has taken some decisions to begin the gradual removal of
    refinancing of an exceptional nature no longer considered essential. Among other things, the Council
    established that the main refinancing operations will continue to be conducted as variable rate
    drive 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, instead of undertaking the last
    rod 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
    Provided a total of 60 up to July 2010 under the program approved in June by the Council
    direct.
    After communicating, at the end of October, the intention not to extend some of the measures taken to
    creation of liquidity at an extraordinary meeting in early December the Bank of Japan, to promote a
    decline in interest rates in the long term, has announced plans to market new liquidity for 10
    trillion yen in loans secured by three months at a rate of 0.1%.
5   In the last quarter of 2009, only Australia, Israel and Norway have increased interest rates
    reference. In February 2010, the Fed, while confirming the reference rate at very low levels, it noted
    the continuous improvements in financial market conditions by raising its policy rate by 25 bp off
    from 0.50% to 0.75%.
6   The Council has the mandate to monitor and identify the risks of the financial system as a whole and make
    report to the finance ministers and other leaders of EU countries.

                                                                                                                 17
            supervision of individual institutions is attributable to the European system of
            financial supervisors (European System of Financial Supervisors), consisting of
            supervisory agencies and three new national authorities who will
            respectively, banks, insurance companies and financial markets 7;
            on the other side of the ocean the U.S. Administration had announced in
            June a plan to reform the regulation and supervision of the financial system. A
            December, the House approved a bill while the Senate is still in
            discussion of a draft choice: the bill provides for the establishment of a
            Financial Stability Council, made up of regulatory authorities, including the
            such as the FED, which will have to identify and regulate financial institutions
            considered systemically important. The draft alternative, however, limit
            strongly the powers conferred upon the Federal Reserve in terms of oversight and regulation;
            in December, the Basel Committee on Banking Supervision (CBSB) published
            two consultation papers containing proposals for strengthening
            capital requirements and liquidity of banks operating internationally. The
            new measures, together with changes made in July of 2009 the plant of
            Basel II 8, should help to overcome the deficiencies of regulation,
            supervision and risk management of the banking system highlighted by the crisis
            leases.


The macroeconomic framework
According to the International Monetary Fund in 2009, world GDP is expected to
modest 0.8% (versus 3% in 2008) thanks to a gradual
strengthening of the recovery in the second half of the year, albeit at different rates between
different countries: more moderate to advanced ones, the more accelerated for emerging economies,
particularly those in Asia. The recovery also extended to flows of international trade,
has benefited from the expansionary policies, and drawn new strength by the expected
slowdown in some countries, the fall of stocks, as well as by the improved conditions
financial markets, accompanied, however, to a general increase in
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
 80                                                              First, the effect of exhaustion
                                                                 basis of the decrease in the
 75
                                                                 energy prices that had
 70
                                                                 occurred in the second half of
 65                                                              2008 and, secondly, a rise of
 60                                                              Prices of some commodities.
 55                                                              As shown in Chart 1,
 50
                                                                 after declining in February 2009
                                                                 under $ 40 a barrel, the price
 45
                                                                 Brent oil is quickly
 40
                                                                 risen and stabilized in the 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 first weeks
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
Annualized 5.9% (2.2% in the third) argued that most of the restoration of stocks from a

7
    The three authorities will be responsible for proposing new technical standards for prudential rules, to resolve disagreements between agencies
    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 trading book re-
    securitization and a series of recommendations on risk management practices and disclosure, in particular for activities
    securitization, trading and balance sheet exposures.

18
                                                    Changes in the EUR-dollar and dollar-yen in 2009
actual increase in consumption, which             1,56
                                                                                                               Chart No.2
                                                                                                                            102

contribution is rather small compared                                       € / $ $ / Yen (right scale).
the summer months, after nine quarters            1,52                                                                      100



turned positive, albeit marginal,
                                                  1,48                                                                      98

the contribution of fixed investment
under which the component                         1,44                                                                      96



estate continues to show
                                                  1,40                                                                      94

weak, but also the exchange
business has improved.                            1,36                                                                      92


Overall average annual
U.S. GDP fell by
                                                  1,32                                                                      90




2.4%, the stronger the contraction                1,28                                                                      88


1946.
On the currency front, the graph 2
                                                  1,24                                                                      86
                                                         G   F   M    A    M     G     L    A     S    O   N      D


shows how the initial
strengthening of the currency
U.S. than in Europe was followed by a weakening to a height
$ 1.51 per EUR, 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 EUR (2.4%
compared with $ 1.3978 at the end of 2008).
On the labor market, the unemployment rate has gradually risen from 7.4%
December 2008 up 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 quickly
rising over the past two months to 2.7% in December (-0.4% on average per year, assuming
3.8% in 2008). Inflation "core" (excluding food and energy) is
remained largely unchanged (1.8% in December, as twelve months before).
As for the "twin deficits", the federal deficit more than doubled to 1471.2
billion dollars from 680.5 billion in 2008, burdened by several supporting measures
economy launched by the Obama administration to combat the crisis. On the contrary -
despite a growing dynamics of imports in the last months of the year - the balance
negative balance of trade was nearly halved 695.9000000000-380.7000000000 dollars,
benefited from significant reduction of indebtedness of the countries
OPEC (-115.8 billion).

Despite the danger of China, Japan was able to confirm in 2009 that
second world economy due to the results of the last quarter in which GDP grew
1, 1% over the previous period, driven primarily by exports - particularly
towards the EUR 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 cyclical
December, the tenth consecutive improvement, 5.1% on an annual basis after the heavy declines
previous months) and exports, helped by the depreciation of the yen in
against both the dollar (2.5%) and the EUR (5.1%). In this first part of 2010, however,
ongoing strengthening of Japan's currency compared to the major world currencies that 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
5.1% in December (4.1% on average in 2008).
The Tankan report in December reported a further improvement compared to
September, the climate of business confidence, although lower than expected for those
large.
On the price front, the deflationary trend in place since February 2009, continued until
end of the year (-1.7% in December), although in mitigation from their peak in October (-2.5%),
(1.4%, the average price change 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.
The activity was mainly driven by fixed investment (30.1% in twelve months), and


                                                                                                                      19
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
trend). The positive balance of trade balance narrowed to 196.1 billion to
dollar (-33.6% from 295.5 billion in 2008), reflecting a fall in exports (-16%)
more marked than in imports (-11.2%), but foreign exchange reserves are still
rose to 2.400 billion dollars (23.3%) of which a significant share (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
EUR (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 limiting exposure
into the sector in the balance sheets of banks, the Chinese authorities have lifted a number of
recently introduced tax incentives. In addition, to curb the dynamics of credit,
People's Bank of China has increased by 50 basis points respectively in January and
February 2010, the ratio of reserve requirements of banks, now at 16.5%, and
increasing the drainage of liquidity from the market through open market operations.

Even for the economies of major developing countries were the last months of the year
the sign of a recovery.
In India, the cyclical upswing has gone beyond expectations (7.9% variation
trend of the GDP in the third quarter after 6.1% the previous three months), thanks to
conditions of expansionary monetary and fiscal policy have argued that private demand
and investment. They have benefited in particular from industrial activity and sector
services while the recovery in world trade has boosted exports, come back
grow in November after thirteen consecutive months of negative changes. In parallel also
inflation has accelerated (7.3% in December), supported by the price of food.
After three operations in January, March and April, with which the Reserve Bank of India had
reduced the total of "repurchase rate" from 6.50% to 4.75%, monetary policy has
maintained an accommodative orientation, without further action on the reference rate.
Aided by the cyclical improvement and the rise in world oil prices and raw materials
first, the Russian economy seems to have passed the point of minimum. The most recent estimate
relating to the 2009 show, however, a sharp contraction in GDP of 7.9%: Sectors
most affected were those in construction (-16.4%), tourism (-15.4%) and
manufacturing (-13.9%). In the short term the outlook remains subject to
passed a series of structural problems: the weakness of consumption linked to low
income levels, the difficulties of the banking system to provide loans, the significant dependence
the manufacture abroad, the risks of inflation (10.7% in September) related to the abundant
injections of liquidity into the system, the high deficit of the state. Throughout the year the Bank
Russian Central lowered in 10 circumstances, the reference rate, from 13% to
historic low of 8, 75%.

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


                      2008   2009    2010 (1)   2008    2009         2010 (1)   2008     2009        2010 (1)   2008    2009     2010 (1)         Dec-08          Dec-09
UNITED STATES         0,4    -2,4     1,6       3,8      -0,4          3,0       5,8      9,3         10,2       5,9     10,3     10,4             0-0,25        0-0,25
JAPAN                 -0,7   -5,0     1,0       1,4      -1,4         -0,3       4,1      5,2          5,3       2,7     5,7       6,5               0,10          0,10
EUR AREA              0,6    -4,0     1,0       3,3      0,3           1,4       7,6      9,4         10,5       2,0     6,5       7,0               2,50          1,00
ITALY                 -1,3   -5,0     0,8       3,5      0,8           1,5       6,7      7,7          9,0       2,7     5,3       5,9                      -             -
GERMANY               1,3    -5,0     1,5       2,8      0,2           1,4       7,3      7,5          8,3       0,0     3,6       4,9                      -             -
FRANCE                0,4    -2,2     1,3       3,2      0,1           1,4       7,9      9,5         10,3       3,4     8,5       8,2                      -             -
SPAIN                 0,9    -3,7     -0,4      4,1      -0,3          0,9      11,4     18,2         20,0       4,1     11,1     10,4                      -             -
UNITED KINGDOM        0,5    -5,0     0,8       3,6      2,2           1,6       5,7      7,6          8,3       5,5    12,2      12,4               2,00          0,50
CHINA                 9,6     8,7     8,6       5,9      -0,7          2,7       4,2      4,3         n.s.      n.s.     n.s.     n.s.               5,31           5,31
INDIA                 7,4     6,5     6,0       8,4       3,6          5,9       9,1     10,7         n.s.      n.s.     n.s.     n.s.               6,50          4,75
(1)
      P review                                                                                                                   Source: Prometeia and official statistics




In Europe, unlike the U.S. economic recovery still appears
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 by the poor performance
German economy became stagnant after two quarters of growth, and other


20
in most countries except for France (0.6%). Overall average annual GDP
was reduced by 4%.
The support for the work came to a great extent on exports, helped by the progressive
improving the world economy, while domestic demand remained weak in
both investment and consumption, including the loss of tax incentives in
different countries.
Industrial production is struggling to start an upward trend as well-defined
demonstrates the negative short-term change in December (-1.7%), after 1.4%
November and also the dynamic on-year (-5%) is still negative, albeit
improvement compared to previous months.
One element of particular concern, shared with other major economies,
about a gradual deterioration of the unemployment rate rose in December to 10%
(With a peak of 19.5% in Spain), 8, 2% in late 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 0.9%
December and January 2010 to 1% (0.3% above the average of 2009). The index adjusted for
food and energy components, as well as alcohol and tobacco, which fell in the first
six months, 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
ECB has continued its work to support the economy by cutting four times the rate of
main refinancing (50 bp in January and March and 25 bp in April and May), fell well
from 2.50% at end 2008 to a record low of 1%. If the prospects for improvement
economy are consolidated, the stance of monetary policy may change
last quarter of 2010, though with a lag compared to what is
expected for the U.S., where rates are lower starting and expectations of recovery more
incurred.
As a result of substantial interventions to boost the development, even in
Europe has witnessed a heavy 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 temporary contents
than the limit of 3% of GDP, the European Union launched in 2009 procedures
excessive deficit against almost all the countries participating in the € 9. In the first
weeks of 2010, in the light of the alarming situation of the Greek government accounts, the Netherlands
Parties to the single currency have expressed a willingness to engage, if
be necessary, coordinate actions and decisions to ensure financial stability
area. Greece was asked to start with determining the fiscal
Evaluation of the monitoring of the European Commission and the ECB.

To Italy 's recovery from recession appears to be still far away: the improvement
cyclical trends in the GDP during the summer months (0.6%, after five consecutive quarters of decline) has
followed by a decline between October and December (-0.2%) mainly due to the precarious
industrial environment in 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) does not
has yet to outline a trend of sustained recovery, ending the year in
decrease (-0.7% compared to November). In December 2008 compared with the correct index
working-day variation shows a still negative (-5.6%), but progressive
improvement. In terms of sectors, only the fields of "chemistry" (7.8%), "mining" (5.6%)
"Food" (3.6%) and "pharmaceuticals" (3.2%) showed positive trends in the twelve
months.
The most recent surveys indicate a further increase in the monthly rate in December
unemployment to 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, the two
    December against Austria, Belgium, Germany, Italy, Netherlands, Portugal, Slovenia and Slovakia.

                                                                                                       21
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, and remained stable in
recent months. In 2009 the number of hours of total layoffs
authorized increased by 311.4% compared to 2008 record by clocking a
1970, the start of the series.
On the price front, Italy, while reflecting the European trend, remained
consistently higher levels of inflation, recording in July, only modest
negative change (-0.1%). The recovery of the last two months has led the Harmonised Index
Consumer Price 1, 1% in December (0.9% as the European).
In average annual inflation was 0.8% (3.5% in 2008), against the 0.3%
Europe.
The trade deficit was significantly reduced to € 4.1 billion, from
11.5 billion in 2008 (-64.2%), benefiting from the reduced deficit in the energy sector (-18.1
billion) and found a positive balance in the intermediate products, which more than
compensated for the reduced surplus of consumer goods and equipment. The dynamics of
imports (-22%) and exports (-20.7%) reflected the weakness of trade
international for much of the year.
Finally with regard to public finance, the first preliminary estimates by ISTAT
for 2009 confirm a report                             government net borrowing
GDP ratio and impact of public debt to GDP in substantial upward
compared to 5.3% (2.7% in 2008) and to 115.8% (105.7%), reflecting mainly
the fall in economic activity.
In December the EU Council has therefore also started against Italy
the excessive deficit procedure for requesting our country to bring the deficit
below the limit of 3% of GDP by 2012.


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

For maturities of less than 2 years that development is
is also accompanied with a shift towards
the bottom of the curve, more pronounced for rates
Europe during the first semester report
the maneuvers performed by the official rate
ECB.

At the long end of the curve is instead
witnessed an upward shift, plus
marked for the U.S., with a view to
recovery of production, but also as
reflection of a gradual normalization of
financial markets, which has eased the aversion
the risk of international investors also
on the basis of expectations of returns than
high, both for the large increase in the supply of
government securities, and for possible resumption
inflation over the medium to long term.




10        During the autumn months, Istat has also initiated the dissemination of monthly data on employment and
     unemployment filling an information gap that penalizes our relation to other major countries.

22
The trends described have therefore led to a widening of the differential between
short-term rates and long-term 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
prices last quarter, mainly due to doubts about the actual
consistency of recovery and expected reduction of the profits of industrial companies
listed.
In the last fraction of a year the banking sector was among the hardest hit in
International, influenced by elements of uncertainty about the prospects of profitability
in the medium to long term.

                Performance of the main short-term rates and long-term in 2009 Graph 5
     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), however, insufficient to return to previous levels
the beginning of the subprime crisis (August 2007).
The recovery in equity prices was much sharper in the major economies
Emerging MSCI Emerging Market index in December showed in fact a
progress of 74.5%.

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




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

                                                                                                        23
                       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


                                                                                                                      15.000
                                                                       Italy FTSE All-Share (right scale)

      6.000                                                                                                           14.000


                                                                                                                      13.000


      5.000                                                                                                           12.000

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




These developments over the 2009 main index in local currency, some of the
most important financial centers: 43.9% for the Nasdaq Composite, New York, 23.8% for
The Xetra Dax in Frankfurt, 23.5% for the S & P 500 in New York for 22.3% of the Cac 40
Paris, 22.1% for the FTSE 100 in London, 20.3% for the Nikkei 225 in Tokyo, 19.2% for the
FTSE All-Share in Milan Italy, 18.8% for the DJ Industrial New York, 6.6% for Topix
of Tokyo.

The markets managed by the Italian Stock Exchange have collectively shown a recovery-based
year: 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 of the Milan Stock indexes are migrate to new
FTSE Italy 12.
The volatility, particularly strong in the second and third trimesters, has been
progressively weakened since the third week of October by a record
end of December fell by 19 percentage points, from 30.1 to 11%, 1% for the FTSE
Italy Mib town.
Both the number of contracts (63.9 million, -7.8%) and the total value of trade
stock (673 billion EUR, -34.6%) were significantly reduced compared to 2008.
Even in average daily trade in shares decreased (252,000 contracts, -8.1%)
registering a fall 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:
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
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; European leadership
for contracts traded on electronic markets for trade in the MOT.

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 Mibtel Midex and were instead replaced
     FTSE All-Share from Italy (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
     with the international method ICB (Industry Classification Benchmark), and have introduced two new
     CONTENTS: Italy FTSE Small Cap and Micro Cap Ftse Italy The adoption of the new index series is tied at the entrance of
     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 investors
     international, offering a structured and integrated representation of market segments.

24
At year end, the companies quoted on the Italian Stock Exchange was 332, four less
than twelve months before, new admissions were offset only 8
partially lifted the 12 companies. The total capitalization of listed companies
end of the year was reported to 457 billion EUR (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 market
Financial breaking in the second quarter in place by the heavy scaling
2006. For the sector of mutual funds, the turnaround began in
second half, recovering part of the divestment earlier this year.
In Italy the open-ended mutual fund industry ended 2009 with net inflows still
negative but for only 0.7 billion EUR (-143.7 billion in 2008), as a result of
an opposite trend among the Italian-based funds (-12.9 billion) - which continue to
also be penalized by a more favorable tax treatment - and foreign funds
(12.2 billion) whose impact in terms of assets has now surpassed 50%. The data
Assogestioni 15 also show the decline has mainly affected
hedge funds (-5.5 billion) and to a lesser extent the categories of cash funds (-0.9
billion) and balanced (-0.7 billion), while the new buoyancy in the financial markets has
helped to support the flexible (0.6 billion), but above all the stock (3.4 billion) and
the bond (2.4 billion).
The revaluation of stock prices from the lows of March brought the
435.3 billion in total assets (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
less flexible funds (from 13% to 13.1%), compared with a reduction in the share
of cash funds (from 21.3% to 20%), hedge (from 5.3% to 3.7%), the balanced (by
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 sustained, albeit at a slower rate than in 2008, customer deposits, to
compared to a gradual slowdown in lending, which reached a point
minimum in October, and a parallel deterioration in credit quality.

Based on 16 surveys from the Bank of Italy, direct deposits (deposits of residents and
bonds) at the end of December showed an annual change of 9.3% (12.4% in December
2008), always driven, albeit to a lesser extent, by bonds (11.2%), compared
development of a stable 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%)
but then remain at 1.7% in December (4.9% at end 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 one 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 in the
families (5.9% from 0.9% in December 2008), supported primarily by funding
for the purchase of dwellings (6.1%), but also a new buoyancy to the different
forms of consumer credit (5%).


13   In calculating the ratio of market capitalization / GDP is the GDP value at current prices.
14
      Indicator - the ratio between the turnover telematics market capitalization - indicates the rate of
       rotation of the shares.
15 "New Map of the assets under management (collective management and portfolio management)" on the 4 th quarter of 2009.
16 Bank of Italy, Supplement to the Statistical Bulletin "Money and Banks", March 2010.


                                                                                                                            25
From the standpoint of risk, the sufferings of the private sector before write-downs
were increased annually by 42.9% (48.1% for those businesses and
34.4%, those linked to households) and 20.7% by the end of June (22.4% for business and
17.9% for families). The combined effect of this trend and the modest growth
claims resulted in an increase of more than one percentage point from 2.70% of
December 2008 to 3.80% of gross NPLs ratio of private sector / total loans to the sector
Private 17.
Net bad debts, but showed an annual increase of 66% and 36.2% by
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 showed
in December, a trend increase of 29.5%, mainly due to
component of "other securities" (26.4%), and in particular the bonds (which
representing 72.3%), and measure the residual government bonds over the medium to long term
(CCT and BTP, 26.6%) and a shorter term (BOT and CTZ, 94.6%), the latter almost
doubled. Consequently, the ratio of securities / loans to the private sector rose to 28.3%
(22.2% at end 2008).

In a continuing downward trend in place for 14 months at year-end the average rate of collection
Banking customers by 18 (which includes the return of deposits, bonds and ready
term against the EUR for families and non-financial corporations) had taken 1, 59%
(3% at the end of 2008), while the weighted average rate on loans to households and companies not
financial, in line with the trend of the conditions in the interbank market, it is
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 transposed the European Directive 2007/44 on the communications market
on the purchase of qualifying shareholdings in banks, insurance companies and
investment. Under the new provision to Article 19 of the Banking Law was
partly reworded where indicated in the first 5% of voting rights over the limit
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 rights of
           capital or voting at least 10% after the shares already
           owned, or allow the exercise of control or significant influence over
           Banca;
           are incorporated in the additional authorization thresholds (20%, 30% and 50%) in the case of
           changes in equity provided by the Directive and on top of which triggered the
           preventive intervention of the central bank will, however, bound to the criteria
           by the EU in terms of quality and financial soundness of potential buyers
           financial package.




17   Are excluded from the calculation is the suffering that the uses on government.
18
     Source: ABI Monthly Outlook, February 2010.

26
The activities of the Banca Popolare di Bergamo in 2009
Centoquarant'anni ago was born in Bergamo, Banca Mutua Popolare di Bergamo
the goal of providing support to people, businesses and the general economy
and social areas of operation of the Bank.
The Banca Popolare di Bergamo SpA, which has inherited the Bank's original mission,
celebrated on June 6, 2009, the important event. For the occasion was organized
a celebratory event with the aim to spread among customers, employees and among those
that are close, the knowledge of many facts, people and situations that have impressed
characteristics in many ways unique to the Bank.



Business strategy

Retail Market
In keeping with the guidelines laid down by branch plan 2010-2012, and in the
plan to open new branches should be noted that in 2009 the National Bank of
Bergamo SpA continued its policy for safeguarding and development of the area, with
the opening of four new branches: Costa Masnaga in the province of Lecco, Roma Women
Olimpia "in Rome City, Guanaba in the province of Como and Monza - Via Boito. All four
branches are located in areas that the Bank's intention is to develop and oversee
strongly and it has been opened the door company in the RCS S.p.A.
in Milan. In 2010 is planned at the opening of the mini-branch "Kilometro Rosso" (Branch
Stezzano mother) and branches of Velletri (Rome), Ciampino (Rome), Bagnatica (Bergamo)
Tribulina of Scanzo (Bergamo), Muggia (Monza / Italy), Bernareggio (Monza / Brianza) and
Oggiono (Lecco).

Private sector
The target market was characterized by strong dynamics for the entry of new
vertical operators, strongly focused on specific target customers with offers aggressive
characterized by high yield on deposits, which is visible to an end, and / or use
of alternatives to traditional collection (card / account online accounts).

In this context, the Bank's objective, and as a distinctive feature compared to
competitors of reference, to consolidate the relationship with its customers increasing
opportunities for contact and working on areas of need not yet met. The challenge
The Bank wants to take, thanks to the potential of the offer range and the constant
improved media management used by relationship managers, is precisely to
identify ways to meet the needs of customers, with the aim to overcome,
over time, their expectations.

With regard to financial investments, the Bank has interpreted the law dictates
MiFID as an opportunity to qualify in a distinctive way to manage relations with the
its customers, with the possibility of access to the counseling service can provide the operator
specific investment advice in accordance with the risk profile and objectives
time of the customer.

The volatility of financial markets, resulting from the recessionary environment that characterizes
the world economy has increased the emotional component of the financial decisions of
Customers with the consequent search for investment proposals to ensure the
capital protection. While several competitors have focused their bidding
operations demand deposits / short-term, offering rates of return well above
reference interbank rates, the Bank, by virtue of the high degree of assurance that the
is recognized by the market and established close ties of loyalty with the
Customers, has continued the successful placement of its bonds and
subordinated bonds issued by the Parent UBI Banca. The placement of
insurance products has been repositioned on the "traditional" products (class I) in which the premiums


                                                                                                   27
are invested in a separate management, with guaranteed minimum returns that
consolidate over time.

To facilitate the acquisition of customers "affluent" has continued to offer a current account
characterized, being launched by conditions would be particularly advantageous
and cost structure is particularly interesting.

In this exercise, with particular reference to the first half, the dynamics of
application for funding was not sustained in recent years. To meet the
needs of young and low-income customers has been extended through 2009 the offer
loans aimed at supporting the purchase of a main conditions
extremely advantageous. The range of products offer is articulated with a duration of up to 50
years. In keeping with the "My Town Project", founded with the purpose of giving a
concrete response to the widespread instances of environmental protection, has proceeded the
marketing "Sun Loan Force" is intended to finance the purchase of
photovoltaic panels.

The Bank has made available to support the storage needs of charges
financial families, proposing to restructure the lending operations
contracted with other banks or, as in the past, carefully assessing the
requests for rescheduling of loans in terms of duration and interest rates.

To be close to its clients that employees in this difficult time
economic situation, living in a state of uneasiness and potential difficulties, the Bank has made
promoter and interpreter of a series of agreements on their land areas of greatest
roots, involving the Chambers of Commerce, other banks, the social partners
representing workers and other associations.

Within these initiatives, which confirm the "social" role of a bank close to
Customers and the needs of its territory, are:
     1) Memoranda of Understanding for the anticipation of "layoff Extraordinary"
        signed to support the people of Bergamo, Milan and Varese involving the
        ability to anticipate the release of same in the period between the
        suspension of employment and the provision by the INPS;
     2) Memorandum of Understanding "Suspension of mortgage rates" in favor of the undersigned
        employees in the province of Bergamo. Under this agreement, the Bank has
        expressed its willingness to consider requests to postpone the payment of installments of
        loans for the purchase of a main (non-application of charges
        additional) received from customers who have seen their skills resized
        income due to loss of job or as affected by
        measures of mobility or redundancy;
     3) Agreements with Caritas and the Foundation of Bergamo MIA -
        Congregation Mercy Staff, for providing funding for
        Residents in the Diocese of Bergamo (agreement Caritas) and the Municipality of Bergamo
        (Foundation Agreement MIA) in a state of temporary difficulties for the loss of
        work.

In the wake of the ratio of active and well-established collaboration with the schools of each
and levels continued, in some schools in the provinces of Bergamo and Varese's
training interventions included in the curriculum to promote economic
increase the level of knowledge on "Financial Education" in this respect is
was very much appreciated the presence in class banking experience to the role
of trainers.

With the association "Pro Universitate Bergomensi" was recently renewed
availability for the provision of student loans in favor of deserving students selected
by the said Association.




28
Small Business
In 2009, the special economic times made it necessary to focus the
business initiatives to support companies looking to maximize synergies
with institutions and associations operating in the area of reference
Banca Popolare di Bergamo.
To provide an immediate financial support to companies affected by the crisis, the Bank
activated in 2009, the following initiatives:
        in February gave specific activation Trust Agreement signed in December
        2008 with Chamber of Commerce and Associations and consortia of Bergamo, Bergamo;
        the initiative has been operational since August "Confiducia" which involves more than the Bank Region
        Lombardia, Unioncamere Federfidi and members of consortia;
        the ceiling has been operational since October Cassa makes available to
        companies in particular financial resources devoted to investment.

The above initiatives have facilitated the work with the consortia on the ground,
allowing companies to deliver about 500 million EUR in funding.

The framework of initiatives for financial support has been completed with the accession of the Bank
ABI agreement - Minister of Economy called "moratorium of debt for SMEs",
provides for the suspension of payment of the principal amount of the installments of loans / loans
Medium and long term elongation up to 270 days of advance on short
term.
The Bank has also made available to its customers the opportunity to apply for
reschedule as more flexible repayment plans as needed
COMPANY.

From March 30, 2009 was made available to the customers a new line of
funding called "New Energy" aimed at supporting investment in
renewable energy and environmental sustainability. The new products have made it possible to grasp,
already in the period in question, great feedback from customers.

Regarding the agricultural sector, given the stage of deep
transformation that is experiencing the same, was joined by ordinary operating credit
an industry analyst. This activity aims to develop strategies and models
development and was conducted with internal resources, external and sharing
associations. In December 2009, during a conference, was presented
trade associations and a large representation of companies the result
the first phase of the analysis.

With the aim of supporting the branches in the activity of acquiring new customers small
business on May 4 has started the new Retail Development Unit, in addition to
responsible, has benefited from the contribution of 22 to 77 branches alongside developers
operating in the areas with greatest potential for development (Monza-Brianza, Como,
Lecco, Rome).


Private Market
The year 2009 saw a consolidated tangible, but in some respects still precarious,
stabilization of confidence on the basis of the general slowdown in
economic downturn that marked the 2007 and throughout 2008 and
improvement of some leading indicators.

In this particular context is vigorously pursued by the private market activity
Supporting and strengthening relations with customers with the aim of securing
information and business relationships centered on trust and transparency from the perspective of
utmost respect and protection of investors.
In parallel, in addition to the proposed Active Wealth Advisory reserved for the band
Customers with higher availability, was given the offer spread of service


                                                                                                    29
consultancy basis as a necessary tool to the enhancement of quality of service
total bid by the Bank.

Continued reduction and subsequent ongoing static interbank rates close to
levels close to zero at the short end of the curve, led many investors to
reconsider various assumptions by reducing the allocation of its assets, wherever
preponderant share of liquidity of their portfolios in favor of tools
consistent with its investment objectives and time horizons.

In this logic, they have successfully registered the issuance of four emission
Lower Tier II subordinated bonds, two issues of bonds
Senior Parent issued by UBI Bank, in addition to six offers of bonds issued by
third-party issuers.
Particularly positive flows were also seen in the collection of asset management and
Insurance companies.
In parallel, during the year, were carried out a series of emissions
bonds of the Bank and the collection rates particularly in marginal
attractive, the activity aimed to acquire new customers and also in response to
policies adopted by destructive competition from major competitors.

In the field of products specifically dedicated to private customers, the year 2009 has brought
new investment opportunities especially in the field of asset management: it was
it lowered the threshold of entry provided for the asset management contract "Open"
and has introduced three new benchmarks in addition to those already available. This product
and thus more easily accessible by customers and even more complete
in the choice of eligible assets by ensuring the widest coverage choices
strategy and tactics by the department of Active Wealth Advisory.

In June they went into effect a series of mergers, renaming
and change management policies of certain mutual funds offered by SGR
UBI Pramerica times to greater rationalization of the range and management of
products offered.

Investment opportunities in asset management, have been created by
changes in the Luxembourg Sicav "The Sailor's Fund"
which led to changes in the organizational structure and the introduction
of new industries and new benchmarks.

The service model of the private market has continued its path of development through
Focusing on the concept of "relationship", defined as an aggregate of customers due to
same area / family group or economic, on which plan and identify specific
appropriate actions aimed at meeting the needs in any field.
The service model inspired by the parent company aims to support a solid business
financial advisory services in-house, consultancy services provided by specialists and
external professionals in the legal / inheritance, asset protection intergenerational
corporate and family governance and estate.

The business consulting and private market in the last quarter of
2009 has been strongly impacted by the emergence of operations and financial activities
assets held abroad (cd Tax Shield Ter.) This activity has enabled the
Bank of forfeited interesting capital flows as well as a pool of new relationships.

The complexity of and difficulties in interpretation of regulations and
related laws, required adequate training activity resources
Market, while the main professional groups involved have benefited from
special themed conferences organized by the Parent on the major reference.
To ensure the full success of the Shield has been prepared an appropriate
offer dedicated sales arising from operations to capital for emerging and established
marketing of a new insurance policy traditional, a branch of V, and


30
the provision of specific tariffs on asset management and insurance already
list as well as an attractive basic banking products.


Corporate Market
The year 2009 was marked by continuing economic wave retracement
that got its start last perceptible September 2008 (September 15, 2008 default
Bank Lehman Brothers). Industrial production has recorded year-on-flex
year even more than 30%, with systemic spread.

Regarding the counterparts of the corporate market, were particularly affected
companies in the sector "CORE", less size, which have suspended their programs
investment under way to converge towards the management of contingency (time to start
safety of the consumption of corporate cash balances and then search for break even).

Index of reactivity of the crisis, a large part they have had historic levels of
debt, in fact companies with low debt levels have shown
more flexibility / reactivity compared to units most indebted. These have been
subject of a considerable volume of restructuring / revival, with the use of
new institutions such as the Bankruptcy Law Article. 67 and 182 bis of the current in force since
1 January 2008 (following the changes introduced by Legislative Decree No 12 September 2007 169
and subsequent amendments).

Because of this particularly challenging economic environment, the corporate market has
record of significant results, with the achievement of most targets
strategic received, providing consulting support and continuity of the
credit to customers, in compliance with corporate policies and in accordance with the guidelines
provided by the Bank of Italy.

It is also noted the important production operations channeled corporate 'product'
UBI Group, Centrobanca SpA (specializing in medium-term credit) and UBI
Leasing SpA, a particularly significant result because of the extremely low
expressed willingness to invest in the market. It also continued the successful
collaboration with UBI Factor SpA with a particular focus to the product
"Reverse factor" by means of major cooperation agreements concluded with major groups
industry.

These results were possible because the application constant of the commercial network
corporate, which earlier this year has been able to focus on defense
credit and optimize profit margins - without neglecting very valid
investment opportunities in medium-term transactions concluded on primary counterparts,
transactions channeled in part on Centrobanca SpA

In the second half of the year the focus has been directed to the progressive recovery
intermediation on the clients (focus on short-term self-liquidating transactions)
the closure of hedge interest rate risk with OTC derivatives and especially
on the gradual redefinition of economic conditions.
This work was supported by a new tool developed
jointly with the parent company UBI Bank, entitled "Strategic Management of
Pricing ". The system also makes it possible to manage the planning of various organic
strategic actions such as the aforementioned index and application to the counterparties
concerned of a consistent pricing to the volumes traded and the degree of risk
measured by the counterparty credit rating.
They also continued propagation activities in the Account Manager Market
Corporate Corporate Advisory methodology "Prepitch" which translates into a document
Prior analysis of the company, its financial structure and coherence of his
placement in the system, designed to share with the customer needs
financial and structural firm and to present an integrated range of products / services
tailored to the specific company. This activity has seen the market busy with about

                                                                                                    31
300 presentations of the segment mid-corporate "(companies with turnover of between 25 and
€ 150 million), which have attracted interest and praise from companies receiving.
It can be assumed that now the methodology is shared and experienced by all accounts
Manager and therefore UBI Bank will launch in 2010 the project "Tquadro" or an action
focused on the commercial segment, said Mid to high-powered counterparts. ON
These selected companies will be called a commercial offer custom designed to
create investment opportunities in the face of existing development projects or from
generate.

A similar methodology, with support even more depth culminating in the "Large Prepitch"
will be used in large corporate counterparts industrial segment to another potential
located in the reference areas of the market and the Bank.

In the second half of the year has been refocused on foreign-trade sector through
the following actions:
     1)   Sharing the objectives and results of Corporate Business Unit (CBU) and Centers
          Foreign Affairs, for a greater sharing of specialist resources "foreign" to
          sales and support initiatives aimed at business customers;
     2)   Approval and imminent formalization guarantee UBI (which became operational
          From 1 January 2010) about the risks accepted as confirmation of letters of credit
          business issued by institutional counterparties.

Anything to liven up the pressure to support the production and trade of 2009, which
indicators were affected by the economic situation.




2009 lending strategy
Area Bank Loans provides the functions of coordination on the borrower's credit
Bank and the main interface with the relevant departments of the parent company. It has the
to ensure, in line with the strategic directions of the Parent, the unitary
of actions taken by individual departments belonging to it in order to achieve
the objectives defined and shared with the homologous function of the parent company.

The continued throughout the year of the weak economic situation has inevitably
had significant effects on the dynamics of bad debts and the risk of claims
whole. In this difficult context, the Bank continued action aimed at
balance the desire not to miss the financial support of the local economies
traditional roots of the institution with the need to adequately oversee the
increase the riskiness of credit granted.

The Bank, among others, has put in place specific measures to support local economies
intensifying the cooperation with local warranty Confindustria, not least
commitment to the project "Confiducia" and the agreement has been made operational L. 662
aimed at financing small and medium businesses with a guarantee of Medio Credito.

The phenomenon of restructuring and rescheduling of loans has increased
in the number and importance of the counterparties that have used
Institute of legalization plan art. 67 and art. 182 bis of the Bankruptcy Law (Decree Law
No 169/12 September 2007) and subsequent inter-bank agreement.
This phenomenon, unknown in previous years, stems from two situations
Contemporary: Opening legislation introduced by the reform of bankruptcy law,
addressed to provide an opportunity to "rescue" companies in crisis and the crisis
financial-induced contraction in consumption and consequent fall in turnover
also of high standing in society. Pending the passing of the original condition
difficulties, or pending the establishment of the debt restructuring and the provision of
new financial and industrial plans, the Bank is required to sign an agreement
First of all, the so-called "stand-still" in order to enable the "freezing" transient


32
credit Lines. During this period must be conducted in-depth analysis of the plan
ascertaining the sustainability of rehabilitation, in order that restored the balance management
company in difficulties.

In particular, the renegotiation has affected about 42 customers of the Bank economic groups
and a total mass of creditors affected over 380 million €
including for individual significance have included the Group Tassara, Pininfarina and
Itema Group.
It also stresses the value also "social" restructuring, which in most
cases, involving companies with large numbers of workers.
The economic crisis has hit hard both large companies, both SMEs, and families. As of
regard were signed several agreements between the municipality to which the notice of the moratorium
debts of small and medium-sized enterprises, so-called "moratorium," and that pro-family
to reschedule and reschedule the rate of home loans.

Concerning more closely overseeing credit risk, during the year
been progressively revised models for calculating the ratings for the various segments Credit
Risk, with the aim of improving system performance and its ability to capture
signs of credit deterioration. Regarding the operational side has been strengthened rather
Support monitoring activity of credit for leading the branch team of specialists from 6 to
12 units, which refer to the structure Presidio Monitoring Credit Quality.
Their work is carried out exclusively on the network and is characterized by the following
assets:
        Institutional training on the garrison of credit at the training center;
        Training always on the defense of the claim and the costs thereof, directly
        focused meetings to network with private operators and small business;
        Online learning more effective use of instruments of government credit
        (Monitoring credit rating web);
        Government of the subsidiary card that highlights the key areas of the garrison
        credit (spill, installments due, high risks and revisions);
        Flanking direct request of the branches in the management of the most
        criticism.

With reference to specific actions for the containment of credit risk that has become
necessary as a result of the deterioration of the macroeconomic situation, there is an
deterioration of the core data of its clients. Hence the need to assess
with particular attention to the quality and quantity of contingency plans and strategic plans
processed by client companies. Specifically, it was placed much emphasis on the need to
discriminate, even in the sense of perspective, those plans are presented with greater value. A
support this activity analysis tools have been released "stress test" designed to
support the process of investigation focusing better the dynamics of future
Customers counterparts.
Actions have been activated on some sectors, particularly in the sector
Real estate inspections are carried out every six months with the preparation of special forms
site analyzed and monitored centrally, for the agricultural sector have been promoted,
the most significant positions, company visits to evaluate thoroughly the
their plans.
Using the tool business CRM (Customer Relationship Management) were
activated campaigns defense and monitoring counterparty risk on the most critical,
from both the small business segment and on small businesses.




Promotional activities, cultural and welfare in 2009
The year 2009, while confirming the already difficult economic year in advance
earlier, it has seen the Banca Popolare di Bergamo maintain an effective
presence on the territory, linking its name to initiatives and
events of interest to the community is through the sponsorship of


                                                                                                   33
cultural, artistic and sports, is working in partnership or by promoting
directly, cultural, charitable, social, humanitarian and welfare.

Under sponsorship of the "sport", which during 2009 have ensured
to the Bank adequate visibility on a national scale, we highlight the 83 ^ Tre Valli
Varese and reconfirmed partnership with UC Albinoleffe, basketball and skiing Varese
Club UBI Banca.

Always, also, Banca Popolare di Bergamo endorsed the conviction of
need for greater commitment by all in respect of the younger generation and this
vocation as well as being safeguarded and guaranteed to be complementary action
awareness and education savings toward the new generations.
Here, therefore, embrace the ideal of the Bank in the summer of 2009 to the thousands of kids in
across the province are crowded and filled with joy the speakers of the Diocese; boys
schools, from childhood to secondary levels, which together with their
parents and their teachers have been involved in the meeting Edufest 2009
education promoted in December from the Diocese of Bergamo.

Even in 2009 there have been signs of attention from National Bank
Bergamo about the world of immigration is at the third edition of
Bergamondo tournament, either through intervention on behalf of the Agency for inclusion in
support a project to facilitate, support, and develop the integrations between Italian and
immigrants in the community and province of Bergamo.

These are tangible signs of the Bank's commitment to try to grasp the deep
changes taking place in society of the third millennium, which is accompanied by the traditional
many interventions in favor of the voluntary sector and volunteering on
territory. Everything in perfect harmony with the slogan "with the feet and head in the village
world "that has characterized events sponsored in celebration of 140th anniversary
culminating with the Conference of June 6 in the picturesque setting of the Teatro Donizetti
Bergamo.

E 'continued support to the many associations in the area trying to enhance
Volunteer in the wealth of Lombardy by the Caritas Foundation, Mia, from
Exodus Foundation to the Red Cross by Don Mazzi Varese and one in favor
Diakonia Onlus Association in support of the people of Abruzzo.
Traditional but always essential to support their activities were in
action taken in respect of 2009 of the Institute of Pharmacological Research Mario Negri, the
Bernareggi Foundation for organizing the Festival wishes Bergamo, the CAI
Bergamo Italian section of the Bank is an honorary member and many other small but
tangible signs of attention to the social, artistic and cultural environment of
reference.

Presidium of the area including at trade shows at the fairgrounds
of Bergamo and with growing participation in trade fairs in the provinces incisive
neighboring that of grass at the event in January "AAA Provider
Offresi "to the more traditional events planned for 2009 in those of Monza and Varese.

Must point in 2009, besides the traditional charity check at the end of year
among nearly 800 organizations, parishes and associations, the initiative called "Christmas Solidarity"
which resulted in delivery by a BPBabbo Christmas gifts, and gifts to panettone
children admitted to hospitals and nursing homes for elderly guests and
Lombard care.




34
The operational structure, staffing and training
At the end of 2009, the Banca Popolare di Bergamo SpA has joint
land consists of 375 offices located in Italy and one representative office located
in Hong Kong.
The presence in the area is also completed 4-Corporate Banking Unit located in
completely independent structures (Dalmine and Trescore in the province of
Bergamo, Mantua and Milan).
Compared to the end of 2008, there has been an expansion of branch network
year with the opening of 4 new branches (in Rome "Donna Olimpia, Monza - Via Boito,
Costa Masnaga, in the province of Lecco and Guanaba in the province of Como) and a mini-branch
in Milan at the RCS, has also resulted in the transformation of 10 desks
cash in as many mini-branch.

In order to approach the decision points to the retail branch network, thus further
funding opportunities and reduce overall risk exposure, are
active since the last quarter of 2008, "6-pin peripheral to act" (PDP) that, with the
collaboration of people of high profile specialist to oversee the process of credit
regional level, in compliance with the powers of resolution defined by the new Regulation Trust.

And with the focusing lens and development of the foreign service offered to customers, from
end of 2008, 11 centers operating on foreign territory which use the best
professionalism in the field in the Bank. The centers are coordinated by the foreign
structure "Foreign Commercial Service" which is part of the Corporate Market.

At the end of 2009, the Banca Popolare di Bergamo confirms its high
concentration of branches in Lombardy with 316 employees; following occurrence of the
in Piedmont with 31 branches, below 15 Lazio, Emilia Romagna 6, Liguria and Veneto 4
with 3 branches.

The commercial model introduced earlier in the year 2008 and at the end of 2009, requires
the division of the Retail Market in 6 Territorial Areas Retail (who coordinate the network of
branches) and the implementation is for the corporate market for the private market to a
decentralized structure that relies on the territory of organizational units known as network
"Corporate Banking Unit (CBU, a total of 17) and" Private Banking Unit (PBU, in
number 13), these structures are surrounded by their geographical coincidence in order to pursue
maximum customer satisfaction thanks to the synergies resulting from the collaboration between
three markets.

This organizational structure is changed from January 2010 to effect the Plan of
Spatial Optimization.
As described in the section "Other information", in 2009 UBI Group
approved a special pot called (Piano Tuning Territorial)
to manage the territorial focus and rationalization of the Group banks in 74
of the 78 provinces of presence, optimize the cost structure of distribution network and
to simplify the process of business development and credit management.
As a result of this operation, which was implemented with effect from 25 January 2010 and is
been legally cross through the contribution of business units, the Bank
Popolare di Bergamo SpA now operates in a unique way and becoming a unique and Bank of
reference, the territories of Varese, Como, Lecco, Monza and Brianza, so shared with other
Group's brands in the provinces of Bergamo, Brescia, Rome and Milan. It follows therefore that
areas of Piedmont, Veneto and Emilia banks of the Group operate in place of
Banca Popolare di Bergamo SpA
The contribution to the Bank was subject to a total of 97 branches (24
branches of Banco di Brescia, 63 branches to Banca Popolare Commercio e Industria
and 10 branches to Banca Regionale Europea) and were sold to Banco di Brescia,
Banco Popolare Commercio e Industria and Banco di San Giorgio a total of 90
EMPLOYEES.




                                                                                                   35
At year-end 2009, the Bank relies on 3,664 employees on the payroll, recording
an increase of 38 units from the end of December 2008 mainly due to the opening
of new branches and the dynamics of the "gaps" of personnel within the group. The organic "force
Working BPB SpA is actually reduced by 70 units during 2009 (3,736 staff at 31
December 2009).

The resources are part-time total of 281, with an incidence rate of
7.67% of total employees and a slight increase over the previous year 2008 (269
Resources with a percentage of total employees of 7.42%).

There is growth in the female employees at the end of that year with 1,079 units
representing 29.45% of the workforce, compared to 28.85% at end 2008 (1046 resources
female).

The total staff of the Bank expressed a mean age of 41.90 years, up from
to 41.18 years in 2008, the same trend that the average length of 17.63 years from the end
2008, standing now at the end of 2009 to 18.34 years.

The table below shows in a very brief the staff of the Bank by the end
Year 2008:



                                                           Effect                                 Effect
                                        31/12/2009                            31/12/2008
                                                                %                                      %


Total employees                                    3.664       100.00%                    3.626     100.00%
Number of male                                     2.585        70.55%                    2.580      71.15%
Number of female                                   1.079        29.45%                    1.046      28.85%
Average age                                        41,90                                  41,18
Average age male                                   42,91                                  42,10
Average age female                                 39,47                                  38,91
Average length                                     18,34                                  17,63
Average length of male                             19,25                                  18,44
Average length of female                           16,16                                  15,61




The following is a summary of                      evolution          plan                with    Reference
the operating staff:


                                                       BREAKDOWN                              BREAKDOWN
         CLASSIFICATION               31/12/2009                             31/12/2008
                                                             %                                      %

Executives                                        57            1.56%                    54            1.49%
Middle managers                                1.620           44.21%                 1.553           42.83%
Other professional areas                       1.987           54.23%                 2.019           55.68%
TOTAL                                          3.664        100.00%                   3.626         100.00%




36
The following table shows the distribution of staff by age group:


                                                          Breakdown                             Breakdown
                     AGE               31/12/2009                         31/12/2008
                                                                 %                                     %


Up to 25 years                                    129             3.52%                  157            4.33%
From 26 to 40 years                             1.619            44.19%                1.667           45.97%
From 41 to 50 years                             1.144            31.22%                1.140           31.44%
From 51 to 55 years                                 520          14.19%                  506           13.95%
More than 55 years                                  252           6.88%                  156                4.31%
    TOTAL                                       3.664          100.00%             3.626             100.00%




The educational level of employees of the Bank may be briefly described in
following table:


                                                          Breakdown                            Breakdown
              EDUCATION                31/12/2009                         31/12/2008
                                                                 %                                    %


     Graduates                                      882          24.07%                842            23.22%
     University                                      10           0.27%                  11            0.30%
     High school diploma                        2.545            69.46%            2.529              69.75%
     Diploma professional                            48           1.31%                  47            1.30%
     Other                                          179           4.89%                197             5.43%
     TOTAL                                      3.664          100.00%            3.626             100.00%




Training
In 2009, the training conducted for staff of the National Bank
Bergamo SpA by the Parent Company has registered the participation of 42,276
colleagues (46,243 in 2008), for a total of 25,079 person / days.
In 2009, the training activity has been focused mainly on strengthening
basic skills in the persistent group, with particular reference to the figures
commercial network.
The training was conducted through the development of classroom courses, inter,
online courses and participation in internships.

The main areas of intervention are detailed as follows:
▪     Commercial Area: 3652 days provided, divided into classroom training (2,760
      days) and on-line courses (892 days), mainly representatives of the Project
      Master roles dedicated to commercial network (which provided 2,842 days of classroom 1957
      days and 885 days on-line courses);
▪     Insurance Area: 8152 days provided;
▪     Area Statement: made 4,984 days. In 2009 have been issued
      following online courses aimed at updating the knowledge of the law
      direct impact on the operation Banking: Money Laundering (1,101 days), health and
      safety of workers (1,246 days) and privacy (1,409 days);
▪     Area Credits: 3,917 days developed. In 2009, made specific routes
      credits dedicated to branch managers, operators and businesses, and these paths
      represented by classroom courses (1,817 days) were paired with stage (922 days)
      played at the Bank of Credit Management and Network Centres of Resolution Peripheral;
▪     Finance Area: 2878 days made.

Management training has developed about 500 days aimed primarily at
development and refinement of the ability to achieve results through their



                                                                                                                37
and the motivation of the team and to improve their ability to develop
trust in relationships with managers, colleagues, employees and customers.



Report on Corporate Governance and Ownership Structure
The table below provides information regarding the main features of the system
risk management and internal control in relation to the financial reporting process
Bank, as required by Article 123-bis, paragraph 2, letter b) of the CFA.


Main features of the system of risk management and internal control
relation to the financial reporting process:                  the model                                      governance
administrative and financial adopted pursuant to Law 262/2005 (and subsequent
changes)
The system of risk management and internal control systems in relation to the process of
Information Group and the Bank UBI Banca Popolare di Bergamo is
by all the rules and business practices adopted by different business units
business, aimed at ensuring the reliability, accuracy and timeliness
of financial reporting.

It should be recalled that the law 262 of December 28, 2005 (as amended)
"Provisions for the protection of savings and the regulation of financial markets" by
inclusion in the TUF art. 154 bis, introduced the organization company
Listed companies in Italy, the figure of the officer responsible for preparing the
corporate accounting (hereafter simply "Officer") which is responsible for
responsibility to prepare the drafting of the accounting records of the company.

The above reform was intended, among other objectives, to strengthen the system of
internal controls related to financial reporting produced by listed issuers
and to this end, the UBI Banca and Banca Popolare di Bergamo replied to
laws by launching a series of project activities, inter alia,
identification and effective implementation of organizational and methodological system (model
administrative and financial governance), which was added to a context of compliance
integrated, enabling you to adjust continuously the activities regarding the verification of
adequacy and effective implementation of safeguards related to the risk of disclosure
Financial and consequently, a proper assessment of the control system
internal reference.

The model developed was approved by the Management Board and the Board of
Monitoring of the Parent respectively on January 15, 2008 and February 6, 2008,
then formalized in a specific business rules, issued by the Press of
Group 166, August 8, 2008.

This model is inspired by the main framework of reference nationally recognized
and internationally in terms of systems of internal control over financial reporting, such as
COSO COBIT Framework 19 and Framework 20, and includes several areas of analysis that
the following dimensions:
             presence of an adequate system of internal controls at the corporate level (ie "Company
             Level Controls "or" CLC ") function to reduce the risk of errors and behaviors
             improper purpose of accounting and financial, through the verification of


19    COSO (Committee of Sponsoring Organizations of the Treadway Commission) is a private
     volunteer time to improve the quality of financial reporting through the use of ethical principles in
     business, effective internal controls and an adequate system of corporate governance.
20 The COBIT (Control Objectives for IT and related technology Framework) was prepared by IT Governance
     Institute, U.S. body which aims to define and improve corporate standards in the IT industry.
     In particular, the Group adopted the Framework UBI IT Control Objectives for Sarbanes Oxley, defined
     specifically to oversee financial reporting.

38
       presence of adequate systems of governance and standards of behavior, correct
       risk management processes, effective organizational structures and systems of delegation. La
       corporate-level verification is done using a special tool
       referred to as "CLC Assessment, which is based on qualitative assessment of a series
       risk factors considered essential to believe a solid and reliable system
       governance of financial administration;
       development and maintenance of adequate control processes on production
       of accounting and financial and subsequent verification of their time
       adequacy and effective application, in this context shall include procedures
       administrative and accounting that provide reasonable assurance on the reliability
       financial reporting, whether they are related to the processes of financial reporting in
       Strictly speaking, whether related to business processes and support considered
       still significant within the meaning of financial information;
       Government controls on the development of technological infrastructure and application-
       the related financial and administrative processes, and subsequent verification in the time of
       adequacy and effective application.

In particular, as regards the development and maintenance of appropriate processes
control over the production of accounting and financial controls and the development of
the government's technology infrastructure, the framework adopted provides for the holding
the following stages of analysis and investigation:
      identification of the scope of application made by the Group companies, the accounts
      and processes considered significant. In this context, the methodological model that provides
      checks on the adequacy of administrative and accounting processes, for the purposes of the Act
      262/2005, should be conducted every six months on a perimeter survey
      appropriately identified as relevant / significant;
      documentation of processes and associated risks and controls. This activity is aimed at
      detect and document the processes identified as relevant to L. 262/2005
      and the risks of accounting and financial controls and related places
      to their garrison. The development of this facility documentary is, in fact,
      a condition that occurs prior to the next review of the adequacy of the system
      internal control. Risk management of breaches of accounting and
      financial, inherent in the life cycle of accounting data, is due to compliance
      so-called "financial assertion" that the international standards of reference
      defined as the requirements that each account accounting / financial reporting must
      to ensure the fulfillment of legal obligations. Therefore, the "financial assertion"
      assume the role of an operational tool that guides the identification and assessment
      control of the main principals, whose absence / ineffectiveness may affect
      achievement of honesty and fairness in the representation of
      balance sheet, income and financial position;
      risk assessment and the adequacy of controls.                              This activity, defined
      By convention the term "Risk Assessment & Control", aims to
      verify the adequacy of administrative and accounting procedures for the formation
      budget and any other accounting and financial information. It concludes with
      the definition of corrective action plans for any gaps (weaknesses) are detected in
      phases of the assessment of the above;
      verification of the effective and continuous compliance. This phase, known
      name of "Test of Effectiveness," is aimed at assessing the actual implementation,
      during the reporting period, the administrative and accounting procedures for the formation
      budget and any other accounting and financial information. During this phase
      shall verify the implementation of the controls provided by the installation document
      prepared during the formalization of processes / procedures. This may
      lead to the identification of possible deficiencies that require the provision of
      appropriate corrective action plans;
      definition and monitoring of corrective measures be put in place in response to
      audits. On the basis of corrective action plans referred to above, the
      method requires the activation of a structured route through specific
      time monitoring, result in a real strengthening of the deans of
      control through the involvement and empowerment as the process owner

                                                                                                     39
      competent and the subsequent updating of the related regulatory framework
      Internal;
      assessment of the adequacy of internal control system in place garrison
      of financial information produced. The final evaluation will be formalized in a
      specific clearance letter to the attention of the General Management and Board of
      Administration.

The operational steps described above are conducted, according to specific methodologies borrowed
international standards of reference, by a specialized structure of
Parent with a view on, and with the support of several other business actors in
variously involved in the specific commitments required by Law 262/05.
In particular, the involvement is expected:
        Area Organization of UBI and UBI Systems and Services in the preparation and
        maintenance of the equipment documentation, functional needs assessment
        adequacy and effectiveness of procedures with an impact on disclosure and accounting
        leases;
        other internal control functions (in particular, Macro Audit
        Parent Company and Group, Area Compliance, Risk Management Area) in order to
        achieve organizational synergies and coherence between the different evaluation structures
        concerned.

Prior to the issue of certificates pursuant to art. 154 bis of Legislative Decree no. 58/98 on
financial statements and interim financial statements, shall be made a specific
report by the staff reporting directly to the Officer that contains, among other things,
a case summary on the goodness and effectiveness of internal control system administration
accounting. This report is taken twice a year, for the attention of the Council
of Directors.


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




40
Reclassified financial statements
Balance Sheet and Income Statement
In order to facilitate analysis of economic and in compliance with the Bank
Consob Communication DEM/6064293 of July 28, 2006, among the reclassified is
was added to a separate statement to highlight the economic impact of major events
and non-recurring transactions - as its effects on capital and non-financial
significant - which can be summarized thus:



        2009:
         realignments statutory / tax on the three year period 2005/2007;
         integration costs resulting from the merger transaction;
         IRAP paid deduction from the income of the Company.



        2008:
         liberation of the differences between tax values and tax to December 31
           2007;
         integration costs resulting from the merger transaction.


The following tables are represented in the reclassified balance sheet and
Income Statement.




                                                                                     41
Reclassified Balance Sheet
(in EUR’ 000)


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

     10.        Cash and cash equivalents                                                112.986           134.156          ( 21.170 )             (15,8)

     20.        Financial assets held for trading                                         50.459            84.305          (33.846)               (40,1)
     40.        Financial assets available for sale                                       21.283                495          20.788              4.199,6
     60.        Loans and receivables with banks                                       5.728.086         7.273.170      (1.545.084)                (21,2)
     70.        Loans to customers                                                    19.959.411        19.719.071         240.340                   1,2
     80.        Hedging derivatives                                                      144.697           350.589        (205.892)                (58,7)
     90.        Fair value change in hedged financial assets (+/-)                        40.684            44.548           ( 3.864 )              (8,7)
     100.       Equity investments                                                         5.065             5.065                     -             -
     110.       Tangible assets                                                           38.623            33.505            5.118                 15,3
     120.       Intangible assets                                                         42.145            42.145                     -             -
                   of which: goodwill                                                     42.145            42.145                     -             -

     130.       Tax assets                                                               104.984            70.625           34.359                 48,6
     150.       Other assets                                                             258.344           309.826          ( 51.482 )             (16,6)
                Total assets                                                         26.506.767        28.067.500       (1.560.733)                 (5,6)




                                                                                                                         Annual            % Annual change
                             LIABILITIES AND EQUITY                                 31/12/2009        31/12/2008
                                                                                                                         change

     10.        Due to banks                                                             154.529           144.082           10.447                  7,3

     20.        Due to customers                                                      13.387.126        13.171.258         215.868                   1,6

     30.        Securities issued                                                     10.309.137        11.882.910      (1.573.773)                (13,2)
 40. 50.        Financial liabilities held for trading and measured at fair value         49.729            83.650          ( 33.921 )             (40,6)

     60.        Hedging derivatives                                                       72.755            79.295           ( 6.540 )              (8,2)
     80.        Tax liabilities                                                           61.529            88.063          (26.534)               (30,1)
     100.       Other liabilities                                                        454.032           684.951        (230.919)                (33,7)
     110.       Provision for termination indemnities                                     88.006            90.583           ( 2.577 )              (2,8)
     120.       Provisions for risks and charges:                                         29.573            30.710           ( 1.137 )              (3,7)
                      b) other provisions                                                 29.573            30.710           ( 1.137 )              (3,7)

     130.       Valuation reserves                                                        ( 1.741 )        ( 11.381 )         9.640                (84,7)
160. 170. 180   Capital, share premium and reserves                                    1.723.077         1.450.531         272.546                  18,8

     200.       Profit for the period                                                    179.015           372.848        (193.833)                (52,0)

                Total liabilities and equity                                         26.506.767        28.067.500       (1.560.733)                 (5,6)




42
Reclassified income statement
(in EUR’ 000)

                                                                                                                                      Annual                 % Change
                                      INCOME STATEMENT ITEMS                           31/12/2009               31/12/2008
                                                                                                                                        change                  Annual



      10 .- 20.      Net interest income                                                      550.869                  773.248                 (222.379)                 (28,8)

      40. - 50.      Net fee and commission income                                            308.848                  346.086                  (37.238)                 (10,8)

 80. 90. 100. 110.   Net income from trading and hedging activities                                 6.535                ( 3.100 )                 9.635                   n.s.

        190.         Other operating expenses (income)                                          19.016                   15.426                    3.590                  23,3

                     Other operating income                                                   885.268                1.131.660             (246.392)                     (21,8)

       150           Staff expense                                                           (276.415)                (285.835)                    9.420                   (3,3)

       150b.         Other administrative expenses                                           ( 207.168 )              (201.497)                  ( 5.671 )                  2,8

    170. + 180.      Net impairment of PPE and intangible assets                                ( 5.329 )                ( 3.729 )               (1.600)                  42,9

                     Operating expenses                                                     (488.912)                ( 491.061 )                  2.149                   (0,4)

                     Profit (loss) from operations                                            396.356                  640.599             (244.243)                     (38,1)

       130           Net impairment adjustments/ write-backs for impairment of:              (109.700)                 (62.303)                 (47.397)                  76,1

  130b. c+d          Net impairment adjustments/ write-backs for impairment of'                 ( 1.011 )                    1.764               ( 2.775 )                 n.s.

        160.         Net provisions for risks and charges                                           (543)                    3.874               ( 4.417 )                 n.s.

    210. 240.        Profit / loss from sale of equity investments                                    (12)                     (42)                    30                (71,4)

                     Profit / loss from continuing operations' income before taxes            285.090                  583.892             (298.802)                     (51,2)

        260.         Income taxes on current operations                                      (104.538)                (200.790)                  96.252                  (47,9)

                     Integration expenses                                                       (1.537)                (10.340)                    8.803                 (85,1)

                     of which: staff expenses                                                   (1.663)                 ( 2.247 )                    584                 (26,0)

                               other administrative expenses                                                -          (12.476)                  12.476                           -

                               net impairment of PPE and intangible assets                          (490)                    (395)                   (95)                 24,1

                               tax                                                                   616                     4.778               ( 4.162 )               (87,1)

        280.         Profit / loss of 'non-current assets held for sale net of taxes                        -                   86                   (86)                          -

        290.         Profit/ loss for the period                                              179.015                  372.848             (193.833)                     (52,0)




Construction method in the reclassified

Main classification rules:
       the overdraft charges recorded in 10 - 20 "Net interest" (21334.2
         thousand EUR at 31 December 2009 and € 40,999.3 thousand as at 31 December 2008)
         reclassified from 40 to 50 "Net Commissions";
       recoveries of 190 sets recorded under "Other net operating income" (33097.8 thousand
         EUR at December 31, 2009 and 41,540 thousand EUR at December 31, 2008) were reclassified
         a reduction in indirect taxes included in other administrative expenses;
       the valuation adjustments, net tangible and intangible assets includes items 170 and 180
         schema accounting and the amortization of the cost of leasehold improvements
         third (1220.4 thousand EUR at December 31, 2009 and 1622 thousand EUR at December 31
         2008) classified to item 190 of the statutory scheme;
       the Other income / expenses include the item 190, net of reclassifications
         above;
       integration costs have been reclassified as income from continuing operations net of
         related tax effect.




                                                                                                                                                                           43
Reclassified to net income of the main non-recurring items
(in EUR’ 000)


                                                                                                                     Non-recurring                                                                                      Non-recurring
                                                                                                                                                                     31/12/2009                                                                                       31/12/2008
                                                                                                                                                                    excluding                                                                                         excluding non-      Change
                                  INCOME STATEMENT ITEMS                              31/12/2009        Refund request    Realignment         Integration                               31/12/2008         Enfranchisemen                           Integration                                          Change     %
                                                                                                                                                                    non-recurring                                               Assignment desks                        recurring
                                                                                                        IRES years 2005 -
                                                                                                                          taxes on FTA       expenses             items                                                                            expenses                  items
                                                                                                             2008                                                                                          t under EC


     10 .- 20.      Net interest income                                                    550.869                                                                        550.869             773.248                                                                       773.248       (222.379)               (28,8)

     40. - 50.      Net fee and commission income                                          308.848                                                                        308.848             346.086                                                                       346.086        (37.238)               (10,8)
80. 90. 100. 110.   Net income from trading and hedging activities                            6.535                                                                          6.535             ( 3.100 )                                                                     ( 3.100 )        9.635                 n.s.
       190.         Other operating expenses (income)                                        19.016                                                                         19.016             15.426                                                                        15.426           3.590                23,3

                    Other operating income                                                 885.268                      -                -                  -             885.268          1.131.660                      -                   -                   -       1.131.660       (246.392)               (21,8)
      150th.        Staff expense                                                         (276.415)                                                                      (276.415)          (285.835)                                                                      (285.835)          9.420                (3,3)
      150b.         Other administrative expense                                          ( 207.168 )                                                                    ( 207.168 )        (201.497)                                                                      (201.497)        ( 5.671 )                2,8
   170. 180.        Net impairment of PPE and intangible assets                             ( 5.329 )                                                                      ( 5.329 )           ( 3.729 )                                                                      ( 3.729 )     (1.600)                42,9

                    Operating expenses                                                    (488.912)                     -                -                  -            (488.912)          ( 491.061 )                   -                   -                   -        ( 491.061 )       2.149                 (0,4)
                    Profit (loss) from operations                                          396.356                      -                -                  -             396.356            640.599                      -                   -                   -         640.599       (244.243)               (38,1)
      130th.        Net impairment adjustments/ write-backs for impairment of:            (109.700)                                                                      (109.700)            (62.303)                                                                       (62.303)      (47.397)                76,1
  130b. cd          Net impairment adjustments/ write-backs for impairment of'              ( 1.011 )                                                                      ( 1.011 )            1.764                                                                          1.764         ( 2.775 )              n.s.
       160.         Net provisions for risks and charges                                      (543)                                                                          (543)              3.874                                                                          3.874         ( 4.417 )              n.s.
   210. 240.        Profit / loss from sale of equity investments                              (12)                                                                           (12)                (42)                                                                           (42)              30             (71,4)

                    Profit / loss from continuing operations' income before taxes          285.090                      -                -                  -             285.090            583.892                      -                   -                   -         583.892       (298.802)               (51,2)
       260.         Income taxes on current operations                                    (104.538)              ( 4.958 )           (787)                               (110.283)          (200.790)               ( 8.561 )                                              (209.351)        997,054               (47,3)
                    Integration expense                                                     (1.537)                     -                -              1.537                       -        (10.340)                     -                   -           10.340                    -               -                   -
                    of which: staff expense                                                 (1.663)                                                     1.663                       -         ( 2.247 )                                                   2.247                     -               -                   -
                            other administrative expenses                                          -                                                        -                       -        (12.476)                                                    12.476                     -               -                   -
                            net impairment of PPE and intangible assets                       (490)                                                      490                        -           (395)                                                         395                   -               -                   -
                            tax                                                                616                                                      ( 616 )                     -           4.778                                                    (4.778)                    -               -                   -
       280.         Profit / loss of 'non-current assets held for sale net of taxes                -                                                                                -                86                                     (86)                                    -               -                   -
       290.         Net profit (loss) for the period                                       179.015               ( 4.958 )           (787)          1.537                 174.807            372.848               ( 8.561 )               (86)          10.340             374.541       (199.734)               (53,3)




              44
INFORMATION ON                           THE BALANCE SHEET

Loans and bank overdrafts
The positive balance dell'interbancario, net of transactions in repurchase agreements
performed with the Parent Company for collection in repurchase agreements from customers, is
unchanged in the year, because the increase, but still significant value in
absolute (17.9 million), corresponding to 0.3% on a percentage basis.
Please note that in accordance with the policy of structural balance in the first half of 2008
sensitive bonds were issued to the parent company and at the same time were
assets consist of deposits at the parent company for € 2,250 million, the date
31 December 2009, the active deposits, as a result of the dynamics of renewals,
amounted to 2.04 billion, the bonds are equal to 2,250 million.

The trend is linked to the dynamics of the aggregate collection / loans from customers
recorded during the year.

(in EUR’ 000)

                                                                                        Change in December '09 and
                                                  31/12/2009 31/12/2008
                                                                                        December '08
                                                                                         Absolute%

Loans to banks                                        5.728.086           7.273.170         (1.545.084)              (21,2)
Due to banks                                            154.529             144.082             10.447                 7,3
                         Net interbank position        5.573.557           7.129.088        (1.555.531)              (21,8)
Repurchase agreements                                  (377.905)          (1.591.329)        1.213.424               (76,3)

Net interbank position                                5.195.652           5.537.759          (342.107)                (6,2)




Loans to customers
At the end of December 2009, loans to customers have reached 19,959,400,000
EUR, an increase (240.3 million, representing 1, 2%) compared to the previous year.
The technical forms in the short term, net of non-performing loans amounted to 8260.8
million EUR, down from the previous year-end levels of about 5.3%, the figures
techniques in the medium and long term, mainly represented by loans, are
increased reaching about 1% of the amount of € 10,749,400,000 and
compensating for the reduction of the fund soon.

Current accounts with active clients stood at 4.9654 billion, down 12.5%
the figure for the previous year, the largest increase noted in 2009 is
records of other transactions in the residual subheading (approximately € 622 million, equal to
20%), mainly due to subsidies in the short term.

Having regard to the composition of jobs, the technical forms of mortgage are
around 56% of total loans, while at the end of the previous year
accounted for 54.9%.




                                                                                                                         45
Situation of loans at 31 December 2009
(in EUR’ 000)

                                                                                         Specific adjustments
                          Types of exposure/amounts
                                                                       Gross exposure        total              Net exposure


    a) Doubtful loans                                                          438.782               190.284        248.498

    b) Doubtful loans                                                          377.834                41.116        336.718

    c) Restructured exposures                                                  254.596                11.081        243.515

    d) Past-due loans                                                          123.946                  3.461       120.485

                                                Total impaired loans         1.195.158               245.942        949.216

    e) Performing loans                                                     19.082.479                72.284     19.010.195

    TOTAL                                                                  20.277.637               318.226     19.959.411



The Bank's net loans totaled 949.2 million EUR, with an impact on
Total net loans by 4.8%, net impaired loans outstanding at beginning of year
amounted to 360 million, with an incidence of 1, 8%.

In particular:
          the non-performing loans amounted to 248.5 million EUR, increased by 65.2% compared to
               December 2008 figure, and their relationship to the total loans amounted
               1, 2% (up from 0.8% at end 2008);
          net problem loans amounted to 336.7 million EUR, more than doubled
               compared with the beginning of the year, and expressed on a percentage incidence
               Net loans at 1, 7% vs 0.8% at 31 December 2008;
          the Restructured loans totaled 243.5 million EUR, an increase of
               About 227 million, to be referred to restructuring agreements concluded during the year with
               significant exposure to corporate counterparts;
          Past due loans amounted to € 120.5 million, including € 98.3 million
               spill of between 90 and 180 days for exposures secured by real estate,
               reclassified between impaired as required by the Supervisory
               Banks that issue the alerts according to the prudential standard method;
               2008 the aggregate, defined as the total of past due loans by over 180
               days, amounted to € 35.9 million.

The level of coverage of the suffering, 43.4%, is down from 48% in the previous
year, while that of problem loans was reduced from 13,8% to 10.9%.
The total reserves of the Bank group (72.3 million EUR) has a level of
coverage of performing loans was 0.4% versus 0.3% recorded a cover of the
end of the previous year.

The overall rise in bad debts is affected by current economic conditions -
and the continuing financial slowdown in the real economy, both nationally and
international, that with particular reference to certain branches of business in which the
Bank's clients.


Financial assets
.


We show the following trends in the industry:
          "financial assets held for trading", consisting almost entirely derived from
            financial, amounted to 50.5 million EUR, against 84.3 million the previous
            FOR THE PERIOD;
          "financial assets available for sale, consisting primarily of securities
            places a deposit for the issuance of bank drafts amounting to 21.3 million
            €, compared to 0.5 million in the previous year, the increase was due
            adjustment of the security 0.5000000-20.6000000 EUR, required by the Bank
            of Italy on the volume of securities issued by the Bank and the remaining increase, amounting to

46
         0.7 million, is due almost entirely to the acquisition of shares and / or instruments
         participating financial arising from the conversion of all or part of exhibitions for
         cash due to restructuring of loans to customers;
       the "hedging" amounted to € 144.7 million;
       fair value change in hedged financial assets (+/-)
         amounted to a profit of 40.7 million against the value of € 44.5 million
         end of the year 2008 and represents the change in fair value of loans to customers
         macrocopertura object.


Customer deposits
At December 31, 2009 the administrative resources of clients, including the collection
indirect institutional counterparties, amounted to 50.2407 billion EUR,
showing a decrease of 2.3689 billion (-4.5%) compared to the size of 31
December 2008, excluding the institutional funding, the aggregate amount reaches the
45.2403 billion, an increase of 345.9 million, or 0.8% compared to the
from previous year.

Assets under management
(in EUR’ 000)

                                                                                         Change in December '09 and December '08
                                                    31/12/2009 31/12/2008
                                                                                           Absolute%

Direct deposit from customers                           23.696.263          25.054.168        (1.357.905)                  (5,4)

Indirect deposit from customers                         26.544.442          27.555.403        ( 1.010.961 )                (3,7)

                of which: Assets under management       10.973.893          10.374.309           599.584                    5,8

TOTAL ADMINISTERED CASH CUSTOMERS                       50.240.705          52.609.571        (2.368.866)                 (4,5)




Direct deposits from customers
At the end of December 2009 directed the collection of amounts to 23,696,300,000
€, a decrease of 1,357,900,000 (5.4%) given on 31 December 2008.

Amounts due to customers amounted to 13.3871 billion EUR, a slight increase compared
December 31, 2008 (215.9 million EUR, equivalent to 1, 6%). The demand deposits rose from
11,463,900,000 to 12,899,800,000 or so, with an increase in absolute value
1.4359 billion (12.5%), and this increase compensates for the reduction of the repo
which in 2009 increased from 1,573,100,000 to 358.4 million (-77.2%).

The outstanding securities totaled 10.3091 billion EUR, a decrease of
13.2% compared to the size of the previous year, amounted to 11.8829 billion. This
reduction is closely linked with the evolution of issuance of certificates of deposit
currency, reduced equivalent to 1.7287 billion, equivalent to 68.7%.

The bonds issued, net of repurchases amounted to 9.478 billion of
EUR, against a book value of 2008 amounted to 9.3197 billion (1.7%).
The listed bonds have remained constant over the period under review, with a nominal value
amounted to EUR 250 million; unlisted bonds have increased by 158.2 million
EUR, representing 1, 7%, excluding the fund bonds underwritten by
parent under the Policy of structural balance cited above, the increase amounted to
2.2%.
During the period under review there were no issues or redemptions of securities
subordinates.




                                                                                                                             47
Indirect customer deposits
(in EUR’ 000)

                                                                                            Change A / B
                                31/12/2009       Effect   31/12/2008       Effect
                                    A                %           B             %
                                                                                      ABSOLUTE             %


- In Administration               10.632.442      49,4        9.476.558        47,8    1.155.884               12,2
- Assets under management         10.911.607      50,6       10.363.686        52,2      547.921                5,3

     Portfolio management          3.132.880      14,5         2.970.739       15,0       162.141               5,5

     Mutual Funds and company      5.115.098      23,7         4.906.201       24,7       208.897               4,3
     - Insurance products          2.663.629      12,4         2.486.746       12,5       176.883               7,1
Ordinary customers                21.544.049     100,0       19.840.244       100,0    1.703.805                8,6

- In Administration                4.938.107      98,8         7.704.536       99,9    (2.766.429)         (35,9)

- Assets under management               62.286     1,2            10.623        0,1        51.663               n.s.

INSTITUTIONAL CLIENTS              5.000.393     100,0        7.715.159       100,0   (2.714.766)          (35,2)

TOTAL INDIRECT DEPOSITS           26.544.442                 27.555.403               ( 1.010.961 )            (3,7)




At 31 December 2009, the indirect funding from private clients, market values, is
amounted to 21.544 billion EUR, an increase of 8, 6% (1703800000)
compared with the amount of end 2008 in detail, in the indirect administration
Ordinary customers stood at 10.6324 billion EUR, an increase of 12.2%, the
assets under management showed an increase compared to December 31, 2008 of € 548 million,
5.3%.
The increase in administration of the collection from customers is in large part be attributed to
issuance of new bonds issued by the parent company and from third parties, for
a total of 768.8 million EUR (416.5 million placed on intragroup).
The increase in the stock of assets under management is due to the appreciation in market value
year, while net subscriptions / redemptions is negative, with the exception
GPM asset management, life insurance found favor with the customers, with a
amount placed in the performance of 397 million Euros.


Tangible assets
At 31 December 2009, the tangible assets amounted to 38.6
million EUR, an increase of about EUR 5.1 million compared to end December 2008.
During the year they were purchased new assets for € 9.7 million, the
most significant investments are related to the provision of safes and teller machines
(3.6 million EUR), as well as advanced ATM / Multifunction (1.6 million).


Intangible assets
Amounted to € 42.1 million, intangible assets have hardly changed
compared to 2008.

The goodwill resulting from the merger of Banca Brignone SpA and Ceresole
& C. SIM SpA in the former Banca Popolare di Bergamo - Credito Varesino Scrl, constituting
fixed assets with indefinite useful lives, is not subject to systematic amortization.
The test for impairment is not - as for the previous years - the need to provide for
no value adjustment of goodwill.
For more information and to the goodwill impairment test, see Part B
Balance Sheet, Section 12 "Intangible Assets" of Notes.


Equity investments
The only include interests in group companies and is the
participation in UBI Sistemi e Servizi ScpA, representing 2.96% stake, valued at
budget of around € 1.6 million, and participation in UBI Banca International SA
(Luxembourg), equivalent to 3.462% of capital (€ 3.5 million), held to follow
the operation of placing the branch of Monaco of Bavaria. Both equity

48
were acquired in 2008, in the current year have not been made
changes.


Shareholders' equity
At the balance sheet date the Bank has a capital of € 1256.3
million, divided into no 1,256,300,000 ordinary shares with a nominal value of € 1
each.
The shares are nominal and indivisible, and each share confers the right to vote.
The Banca Popolare di Bergamo SpA is 100% owned by the parent company UBI Banca
ScpA, which has full control.

Shareholders' equity at December 31, 2009, inclusive of the year amounted to 179
million €, shows a balance of € 1,900,400,000 (4.9% compared to December
2008).

The parameters relating to the regulatory capital stood at 1.8115 billion, which
core capital (Tier 1), and 298.5 million as supplementary capital (Tier 2).

Compliance with the capital adequacy requirement has resulted in an overall
demand for assets of 961.5 million EUR, mainly related to the volume
operating in disbursement of credit to customers.

With regard to prudential requirements, the ratio of core capital and total
of risk-weighted assets (Tier 1) is equal to 11, 3%, compared with 9.8% at December 31
2008; the relationship between regulatory capital and total risk-weighted assets
(Tier 2) amounted to 13.2%, against a minimum level required by the legislation
reference set at 6% for banks belonging to a banking group, this index
overall 11, 5% at the end of the previous year.

The margin expansion in lending is quantified in € 19.1418 billion, compared with 15,732
as of 31 Decemeber 2008.

For more information, see the table of the regulatory capital of Part F
of the Notes.




                                                                                           49
INFORMAITON ON THE INCOME STATEMENT
Net interest income for 2009 amounted to 550.9 million, compared to the results
the previous year (773.2 million) there is an decrease of 222.4 million (-28.8%),
mainly due to the dynamic bending of market interest rates: the details of
technical forms, there was a decrease in the levels of profitability of the collection (both in
sector in the short to medium and long term), was proportionately higher than
improved margins on loans.

Net commission income stood at 308.8 million EUR, showing a decrease
10.8% compared to 2008 (-37.2 million EUR).
The negative trend in commissions from indirect (-9.9%) is basically
attributable to the decrease of 20.8% recorded in the asset management (-14.3 million EUR)
in general due to the decline in stocks of medium and a less profitable mix of funds and this
decrease was partially offset by approximately 5% observed in the
assets under custody (EUR 2.5 million), benefiting from the commission
placement of bonds, with an inflow of about 19 million of commissions
including 10 million from the parent company. They are also to be reported decreases of committees
related to net foreign service (2 million, representing a decrease of 17.9%) and those related to
money (2.3 million representing a decrease of 9.8%).

The trading and hedging yielded a profit of 6.5 million
EUR, while net profit last year was negative 3.1 million and the balance is
Detailed:
                                                                                      (in EUR’ 000)
                                                                           31/12/2009        31/12/2008
Net income from trading and hedging activities                                      3.498              1.926
Profit (loss) from hedging activities                                               5.067             -6.191
- Net sale / repurchase liabilities                                                -2.030              1.165
                                                                                    6.535             -3.100

The positive result of trading activity is mainly due to profits generated
in operations on derivatives contracts on currencies (4.3 million versus 1.3 million profit
achieved in 2008); those profits, combined with positive profits
securities trading, effectively offset the negative results obtained in the area of
interest rate derivatives.
Although the hedging activities generated a positive effect on the result, the
end of last year there had been a sharp reduction in short-term rates, which
had led to negative evaluations of collateral for loans issued, in the year
comment, the realignment of interest rates had equalized covers generating effects
positive for 6.6 million EUR. Opposite phenomenon is recorded on the covers of assets, with
a net loss of € 1.5 million per year.
The result of item 100 is due to the repurchase of financial liabilities
issued, and was due to market trends.

Other net operating income amounted to approximately EUR 19 million, an increase of 3.6
million, equivalent to 23.3%, compared to the previous year. When
commentary points out that given the strong influence of the previous year are
charges were recorded for bank drafts issued by the bank prescribed in the preceding
years and due to the Exchequer as a result of the Law 166/2008, in an amount equal to 5.4
millions.

As a result of these dynamics, operating income totaled 885.3 million share of
€, a decrease of 246.4 million (-21.8% approximately) compared to last year.

In terms of costs, staff costs, which totaled 276.4 million of
€, are down to € 9.4 million (-3.3%) compared to 2008, when

50
had amounted to 285.8 million EUR. In detail, compared with the previous year
major cost reductions are attributable to lower provisions for systems
incentive for 11.8 million, as well as releases of provisions for leave not taken for
3.5 million, the actuarial valuation of indemnities and insurance for health
1.5 million and 1.2 million for reimbursement for training, the main cost increases are
on the evolution of wages for 4.8 million € (Negotiable increments, click
seniority, career advancement dragging effect of the previous year), from
economic awards and promotions for the year 1.7 million from the company bonus for
1.5 million former and holidays of 2009 to EUR 0.5 million.

Other administrative expenses, amounting to € 207.2 million were slightly
growth over the previous year (5.7 million EUR, corresponding to 2.8%).
They are mainly represented by fees for services rendered by others to 86.9 million,
35.6 million for rental costs, postage, computer and telephone and data transmission
14.7 million, expenditure on outsourcing services to 9.5 million, expenses for property management
to 9.3 million and 8.8 million for insurance premiums.
The costs for services provided by third parties are made up almost entirely by fees for service
the performance achieved by the parent company of the Bank and UBI UBI Systems
ScpA and Services; fees levied on the value added tax to € 8.8 million for
Under the new system of taxation on intra-group transactions, yet the cost of such
service was reduced by 12.4%. On this point, see the appropriate section for details,
names of all other information - tax issues later in this report.
They have rather significant increases in postage and outsourcing services
(Which is already included in the fee for service), insurance premiums and rents
liabilities, and expenses for debt collection.
In the absence of changes in law relating to VAT in other administrative expenses
would be reduced by 1, 5%.

Value adjustments on tangible and intangible assets amounted to € 5.3 million,
against a figure of 3.7 million in 2008. The increase in cost is due to higher
Purchases of property and equipment recorded in 2008 and 2009 already described above.

Overall, operating costs amounted to 488.9 million, slightly less than the
since last year (491.1 million). The cost / income ratio, calculated by dividing the
operating costs to operating income stood at 55.2%, compared to 43.4%
recorded in the previous year, due mainly to the reduction already commented
operating income.

As a result of these trends, the operating margin stood at 396.4
million against € 640.6 million to € at December 31, 2008.

The net adjustments to loans increased from 62.3 million to
€ 109.7 million, showing an increase of 47.4 million, or such higher value is
due to analytical adjustments on non-performing loans (34 million) and adjustments
collective performing loans (13.4 million).
The cost of credit amounted to 0.55%, is higher than that recorded in
end of 2008 (0.32%).

The Net adjustments for impairment of other financial
show a net loss of EUR 1 million, against a profit of 1.8
million the previous year.
The evaluation of the claims resulted in signing a net recovery of 0.5 million €,
with a level of global coverage of 0.20%, and the collective assessment of contracting
resulted in an adjustment of € 1.4 million on a notional amount of 725 million, with a
coverage level of 0.19%.
The item under review is only marginally (0.1 million) for the correction
deterioration recorded on an inclusive, acquired on the basis of agreements
restructuring.



                                                                                                     51
Net provisions for risks and charges have a negative result of 0.5
million EUR, and make a worse result than the result for the year 2008,
then positive for € 3.9 million (-4.4 million EUR), please note that the exercise in place
comparison had benefited from the settlement to resolve the dispute with
Parmalat, with a consequent release of funds previously earmarked for revocation.

Profit from continuing operations before taxes amounted to 285.1 million EUR in
decrease of 51.2% (€ -298.8 million) compared to 2008.

Taxes amounted to € 104.5 million expressing a percentage incidence
profit before tax amounted to 36.67% and include the positive impacts resulting
application of tax rules, as detailed in the Accounting Policies - Section 4
Other aspects - Deductibility lump IRAP and credit in the "Statement to the Income Statement
excluding major non-recurring. " The standard tax rate stands at
38.68% against 35.85% in 2008.

Integration costs, non-recurring items for the year amounted to 1.5 million
€ net of taxes of approximately € 0.6 million, consisting of expenditure on
staff of 1.6 million EUR and net impairment losses on tangible assets for 0.5
(in millions of EUR. The staff costs are mainly due to use of personal
temporary need for migration-related information of the previous year (1.0
million) and mobility allowance for employees with respect to the work location moved
situation before the Business Plan (0.5 million). The adjustments to tangible assets are
attributable entirely to the signs, replaced part of the "rebranding".

Operating income amounted to EUR 179 million and showed a decrease of 52%
to the 2008 figure (€ -193.8 million). By comparing the results of the two normalized
times 2009 earnings would amount to € 174.8 million, a decrease of 199.7 million
on the previous year (-53.3%).

In relation to the trends described above, the economic management of the Bank expressed a
ROE (Return on Equity) 10.4% decrease compared to 25.9% in the final
last year. The normalized ROE for 2009 would amount to 10.16%, compared to 26%
2008.




                                                  *****




52
The research and development
A summary of the main design developed in 2009 by
Architecture and Design Innovation Directorate of the Information Systems Division of UBI
Systems and Services, conducted on behalf of the Banks of the Group. They include, in some cases
projects which, although not born from specific business needs, identify opportunities
evolution 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
Work-PC), which started in 2008, together with the progressive activation on the perimeter
Parent Network Banks and 21 of the VoIP platform, work continued Developments
the value-added services that take advantage of that platform.

On the subject of the search engine was conducted an evaluation of two types of engines
on the market, statistical and semantic: the first suitable optimization research
widely used in general areas, the latter ideal for how to search in more specialized and closer
natural language. The ensuing development work in applied optics was
addressed to the business sectors "Statement" and "Help Desk".

As for video conferencing systems - already widely used in the UBI
with over 150 installed locations - with a view to further increase their use and
improve the effectiveness of communication has been considered appropriate, alongside the
progressive increase in the number of stations, and improve quality by introducing
solutions to high definition. In addition during the year was tested for
the widespread adoption, integration of video-conferencing technology in the same
workstation (PC). The proposal is of particular interest for Directions
Central and local network of individual banks, representing both a valuable tool
decision support and sharing of information, is a factor
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
Banking Network with clients, has launched a project called "new station
work ", which provides for the adoption of an innovative user interface-oriented
simplification and efficiency of the activities, thanks mainly to guide the process
business. The first application context involve the provision of loans to customers
and retail in this area is also provided for the activation of a management platform
document 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
Customers' (Internet and phone) to facilitate interactivity.

Finally, from the point of view           center of the technological department,
consistent with the strategic guidelines regarding the evaluation of new technologies, it is
analysis was carried out of the market scenario and the main development trends of industry
to identify an architecture and a platform, ensuring the same
service level of the infrastructure, introducing significant economic benefits.
The final solution is a concrete result, as early as 2009, systems
operating open        and      Hardware      standard market with better value
cost / performance ratio.




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

                                                                                                   53
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 local business
Group and related parties was included in the Notes, Part H, to which we refer.




Other information
The statutory changes
During the year were approved the amendments to the bylaws, adopted for the implementation of
Legal provisions contained in the Bank of Italy on March 4, 2008
organization and corporate governance of banks. The provisions in question were
enacted with the express intent to strengthen the minimum standards of organization and governance
Company and these principles and implementing guidelines that will ensure the creation of effective
organizational structure and corporate governance where there is "a clear distinction of roles and
responsibility "is assured in the" balance of powers, the balanced composition of
Organs, the effectiveness of controls, overseeing all business risks, the adequacy of flows
information, as essential elements for achieving business goals and
conditions to ensure sound and prudent management.
The parent company also provided for the preparation of the Draft Corporate Governance
reported to UBI Bank and all banks in the Group, in accordance with the provisions of
Supervision in the organization and corporate governance of banks, and the shipment of
same to the Bank of Italy.
With reference to the statutory changes resulting from the "Tuning Project
Place Name "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, operations
purchase and / or sale of treasury shares, or shares of the parent and at the end of period
are held or shares or shares of the parent.


Tax Aspects
Tax shelter
We have introduced a provision of amnesty for illegal detention abroad, the date
December 31, 2008, any activity can produce income such as business
financial or real estate. The period for use of this measure has been set
from 15 September 2009 to December 15, 2009, however indirectly extended
until December 31, 2010 where there were "any obstacles" to the conclusion
operation of emergence, however, be implemented by December 15, 2009.
This has meant that taxpayers addressees of that measure, typically people
subject to natural or treated them in terms of tax, should pay the tax
replacement of 5% by the above date with the commitment to the operation of
return, return or regularization legal within the next 31 December, 2010. The
any obstacles which are typically incurred taxpayers are due to the existence of
complex financial structures that is foreign to the incompatibility / criminalization of certain
securities held abroad with the domestic tax rules. Compared to
during previous amnesties has proved entirely new legal return of property,
precious works of art etc. which led to the solution of complex aspects of nature
contract.
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
April 2010. The substitute tax, still other aspects, was increased from 5% to 6% where
the emergence occur by February 28 or 7% if made by April 30, 2010.


54
It is understood the highest end of December 31, 2010 in the presence of any obstacles that
prevent the completion 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
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 available to customers of its structures for financial assistance,
legal and tax advice including organizing conferences and meetings on the topic with the orders
professional.

Limits to the depreciation of new tax credits
It has been integrated discipline of the deduction for bad loans to the IRES
Providing customers, only for new loans disbursed from July 1, 2009
exceeds the average of the previous two years, raising the deductible portion
during the period that goes from 0.30% to 0.50% of the ordinary, and the reduction of the period
time tax deduction of any amount in excess of that threshold percentage
18 years to 9 years (art. 106, paragraph 3-bis, Income Tax Code).
The rule is not enforceable, since the lack of coordination between
deductibility of the ongoing devaluation of receivables (art. 106, paragraph 3, Income Tax Code) and the new
estimates cited 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 economic and financial effects of this legislation the current year but the same
apply 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 the devaluation
credits to the standards of other EU countries. The domestic legislation as well as the complexity
applications listed above, also included under the accounting rules in IAS / IFRS, creates
a significant amount of deferred tax on large time periods - see 18
exercises.

VAT intragroup
As is known to make time from 1 January 2009 is fully operational art. C.2 10 DPR 633/72
that under certain conditions, exempts them from VAT the supply of services rendered by the consortia
or joint venture companies for the benefit of its members. From the same date was repealed Art. 6 of L.
133/99 which exempted from VAT in general all services rendered under
ancillary activities between persons of the same banking group. In this framework, the Group changed
has transformed into a consortium owned UBISS to send a free series
information technology and administrative services primarily made from this to other companies
group. 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
explicate the Inland Revenue in its Circular 23 8 May 2009, remains
the need for banking groups, insurance and all sorts of companies for prompt
transposition in our ordering of the cd VAT single group that
would send it free of charge transactions that occur between individuals belonging
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 standards
Mod / supplementary to the Income Tax Code for those already initiated with the IAS Law December 24, 2007
No 244 and later supplemented with DL 185/2008 where they are made for arrangements
which realignment statutory / tax values of items even in the face of
extraordinary transactions.
More specifically, the legislation provides for the possibility of realigning the different values
civil / tax on the three year period 2005/2007 following the previously existing different
legislation through the payment of substitute tax.

                                                                                                    55
These realignments concerning the assets or liabilities resulting from:
     a) transactions (mergers, divisions, transfers, etc..)
     b) management.

In case b) allowed the realignment of all the case with tax payments to
ordinary rate, or to individual cases chosen by the taxpayer with a payment of
substitute tax (IRES / IRAP) of 16%.
While the portion corresponding to the extraordinary relief in the budget had already
2008 (as specified therein), in relation to the ordinary activities of the Working Group considered
appropriate, even for the impact organizational / administrative action to eliminate
the so-called double-track realignments to make 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 0.9 million and are at once freed in return
Profit & Loss, 1.8 million have already been entered as deferred tax assets / liabilities.
It must be emphasized as a result of soprarichiamate changes, the existing system
tax for taxable IAS is focused both IRES that IRAP, the so-called "principle of
derivation "by the findings of financial statements under international accounting standards.
At the time of this Budget the Finance Ministry has not yet
issued the memorandum circular wait the whole subject, thus making complex and
sometimes uncertain determination of the tax 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 has
also provided for the retroactive application of the deduction for any tax period from 2004 to
2007.
As for what concerns the tax year 2008 has already given the benefit
deductibility of IRAP in the payment of the balance IRES, for the years prior
Teleservices has been sent, through the Parent UBI, specific instances of
reimbursement.
In relation to each tax year is for the repayment of the Bank increased
IRES and that even in the presence of tax loss: in this case, resulted in the largest loss is
counted in loss of income for the first taxable year following useful.
For the annual membership in the consolidated tax the amount requested to be refunded - in
Reportedly the total income from fiscal consolidation - will be recognized at the
Consolidation UBI which will subsequently allocation to individual companies
consolidated what is due because of the individual income restated. Conversely,
for extra annual consolidated tax refund will be granted directly to
individual companies moments.
That said it should be noted that the overall amount requested for reimbursement by computer
the previous annual total of 2004-2007 amounted to 4,958 thousand EUR.
The total amount is, for individual annuities, allocated as follows:
     ·   796 000 € year 2004;
     ·   € 1.481 million in 2005;
     ·   € 1.33 million in 2006;
     ·   € 1.351 million in 2007.

Given that the repayments will be made by the Inland Revenue within a price
set by decree crisis (ie € 100 million in 2009, € 500 million
in 2010 and € 400 million in 2011) is considered when the repayment of the estimated


56
claims in question, although this can be done in a manner and by installments within a relatively
long.
From an accounting point of view, the balance sheet at 31 December 2009, it was decided
entry of a claim for an amount equal to the total amount shown above in
counterpart to the entry of lower taxes for the year.

The tax dispute
During 2009 the Company was audited for IRES and IRAP on
annuality 2006, from the Inland Revenue - Regional Office for
Lombardia - Large Taxpayers Office, which concluded with the minutes of finding
(PVC) delivered on 24 February 2010.
The only major concerns emerging from pvc alleged irregularities in the quantification of
bad debt tax deductible in the year. Given that finding, it will
filed for full adherence to PVC and the effect was the amount set aside
Euro 90,000.
It concludes by pointing out that the parent UBI Bank, consolidating the Company (scheme
the consolidated taxation for IRES purposes in accordance with the provisions contained in Articles. 117 to
129 of the Income Tax Code) will be involved in the process of adhesion to PVC, as required by
Circular Ag No Entries 60/E/2007.

Finally, please note that the Banca Popolare di Bergamo - are among the so-called Department
Contributor pursuant to art. 27, paragraphs 13 and 14, DL 185/2008, as supplemented by
Order of the Director of the Inland Revenue No 54291 of April 6, 2009 - is
subject to more stringent checks by the financial authorities as well as to
cd tutoring tax (Article 27, paragraphs 9-12, DL 185/2008) that, according to the guidelines
known, will help provide a constant and control the operation of the large
taxpayer.


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 coverage
territorial network banks, aimed at optimizing the structure of distribution network
through specialization of the same geographical area, with a focus on the territories
historical roots.
In particular, it is expected to be almost exclusive allocation of coverage for each
Bank Network, through the grouping of the branches on the same group
territory under a single reference mark, an increase in market share and
more visibility for each individual bank network, and a parallel simplification
process of business development and credit management.
The operation will involve the transfer of intercompany about 300 branches and 2,200 resources
between Banca Regionale Europea (BRE), Banca Popolare Commercio e Industria (BPCI), Bank
Popolare di Bergamo (BPB), Banco di Brescia (BBS) and Banco di San Giorgio (BSG).
In detail:
        BRE Bank will be the reference for the Piedmont region, with the transfer of
        General Management from Milan to Turin;
        BPCI Bank will be the reference in the Lombard provinces of Milan and Pavia, and
        in the provinces of Emilia Bologna, Parma, Piacenza, Modena, Reggio Emilia and
        Ferrara;
        BPB Bank will be the reference in the provinces of Bergamo, Varese, Como, Lecco and
        Monza Brianza;
        BBS Bank will be the reference in the provinces of Brescia, Lodi, Cremona, Mantua and
        Triveneto;
        Bank of BSG will be referenced in the Liguria region.

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



                                                                                                    57
After implementation of the project, the UBI will operate under a single brand
reference in 74 of the 78 provinces in which it operates.
The transfers will be made through ATM transfers of businesses (there are
under 14). Each of the five retail banks assignee will carry out an increase in
capital at the service of duty. Since the transactions under common control "
the increase of capital will emerge as an additional action, related to
actual value of the given branch, will be issued at par. Banks confer
then the parent company will give up the shares resulting from the contributions made.
The territorial rationalization has resulted from the sale of Bank 90
existing branches in areas patrolled by the other banks in the group and the acquisition of 97
branches, including three mini-branches in the territory of reference that will enable it to
strengthen its presence in specific geographic areas.
The evaluation of the branches was carried out with the support of an external consultant,
developed with reference to the underlying assets as at 31.12.2008 and based on
following methodological principles:
        the value of each counter was obtained by capitalizing the income made specific
         in 2008 as a representative of the normal average generation capacity
         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 by
         securitized loans as excluded from the scope of delivery.
For each transfer of a business, in which the Bank appears to be Bank
transferring, the report has been prepared under oath of '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 assigned to them
for determining the share capital and share premium and the criteria for
assessment adopted.
In this regard it should be noted that in accordance with guidance given by the Council of Notaries
Milan, the appraisal mentioned above should also be based on updated values
to transactions for which it is intended, and these values can not be
a history of more than 4 months of the date of which will be called upon
the proposed increase of capital in respect of the transfer.
In this perspective, we provided an update to the September 30, 2009 data
on the branches being contributed, with the consequent revision of the assessment of
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
who have seen commercial cooperation and the sharing of the Directorates General of
Banks network of legal relations not to be sold (securitized mortgages and loans),
the special exceptions represented by certain types of customers, contracts
Public Bodies treasury management activity of loan on pledge, operating models and
structures for migration, buildings, equipment and human resources
involved in migration.
The impact of the transaction on the capital ratios
The set of operations outlined a positive impact on the ratios
assets, in particular, the Bank estimates a significant increase in total
Capital Ratio, which will amount to 14.20% as against 11, 30% of December 31, 2009.
Increase in share capital at the service of contributions received
The share capital was increased from EUR 1,256,300,000.00 to EUR 1,350,514,252.00
through the issue of 94,214,252 ordinary shares of par value Euro 1.00 each - and
then for a total nominal value of 94,214,252.00 euros - to be awarded to
conference in the following quantities:


58
         No 23,568,210 ordinary shares in BBS, compared with a value equal to the contribution
          € 108,885,130 (of which Euro 5,380 thousand for property);
         No BPCI 64,168,793 ordinary shares, compared with a value equal to the contribution
          € 296,459,823 (of which Euro 756 thousand for property);
         No 6,477,249 ordinary shares in BRE, compared with a value equal to the contribution
          € 29,924,891 (of which Euro 6,940 thousand for property).

Upon a determination of the number of new shares on the basis of the value
current of the same (4.620 Euro), the issue will be at face value.
Consequently it will be changed the first paragraph of Article 5 of the bylaws.
Corporate structures
It contains a summary of its new corporate structure of the Bank at the end of duty:
                                                          Location               Scenario
                                                                                                             DELTA
                                                           Current               Reference
           Shareholders’ equity (%)                                                                          BPB
                                                            BPB                     BPB
UBI Banca                                                   100.00%                  93.02%                  -6.98%
Banco di Brescia                                                                        1.75%                  1.75%
BRE                                                                                     0.48%                  0.48%
Banca Popolare Commercio e Industria                                                    4.75%                  4.75%
Total                                                        100.00%                 100.00%                   0.00%


The rationalization of structures of participation will also involve the purchase by UBI
Bank of minority cross-held between the various banks
Group.
The table below shows an indication of the changes present in the main aggregates
Capital Bank on the basis of the December 31, 2009. As mentioned above, the values
effective are those in effect at January 25, 2010, effective date of legal and accounting
contributions.

                                                                                  Banca Popolare di Bergamo
                                                          Data in mg / €          Performing            Impaired

Item 70 Loans to customers (book value at 31/12/2009)                               19.010.194                   949.217
by Banco di Brescia                                                                    574.013                     28.842
Banca Popolare Commercio e Industria                                                 2.303.294                     56.280
Banca Regionale Europea                                                                214.494                     12.121
Banco di Brescia                                                                      ( 591.451 )                ( 39.164 )
Banca Popolare Commercio e Industria                                                (1.447.431)                  ( 74.264 )
Banca Regionale Europea                                                               (947.615)                  (29.525)
Banco di San Giorgio                                                                  (163.811)                    ( 4.845 )
New Bank                                                                          18.951.687                   898.662

                                                                                  Banca Popolare di Bergamo

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

book value at 31/12/2009                                                            13.387.126                10.309.137
by Banco di Brescia                                                                    303.304                          12
Banca Popolare Commercio e Industria                                                 1.616.595                      2.555
Banca Regionale Europea                                                                 85.194
Banco di Brescia                                                                      (262.182)                  ( 25.124 )
Banca Popolare Commercio e Industria                                                  (817.487)                  (12.528)
Banca Regionale Europea                                                               (474.355)                    (8.776)
Banco di San Giorgio                                                                  (108.183)                      (352)
New Bank                                                                          13.730.012                10.264.924




                                                                                                                        59
Appeal against the sanction of the Italian
Competition
As reported in previous disclosures, the Authority on 8 August 2008
Competition and Market, following a preliminary investigation launched in
May 2008, had issued a sanction against 23 banks, including
which the Banca Popolare di Bergamo, considering that the operation taken in regard to
Transfer of mortgage violates the provisions on Unfair Commercial Practices
contained in the Consumer Code (Articles 18 et seq. Leg. 206/2005, as amended by
Leg. 146/2007), in particular for having responded to the demand of customers to change
Bank lender offering the most expensive replacement of the loan rather
that portability (art. 8 DL 7 / 2007, as amended by the Law of the first conversion
Then by Law 40/2007 and 244/2007), also in violation of the duties of good
information required by law. The sentence imposed was € 450 000 €. The
Bank Group's network to which the penalty had been responsible for its
paid in time, making express reservation, however, the outcome of repeat
in favor of the appeal.
At the same time, all of the 23 sanctioned banks, including those of the UBI
Bank, brought an administrative appeal against the decision in question at
the TAR of Lazio, on February 4, 2009, granted the application for annulment
of fines imposed.
In July, the Authority sent the Ministry of Economy and
Finance, Administration as responsible for the payment, its clearance
the acceptance of the application for refund of the penalty imposed at the time
to the Bank.
On October 6, 2009 was filed on appeal to the State Council has already been notified in
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, however, presented the request for suspension from
refund of amounts paid as a penalty: the date of this Report
Bank is still pending the approval by the Ministry.
In November 2009, the Bank Group's network has provided a formal constitution
in court: 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, the
time not yet fixed.
Given the solid motivation of the decision at first instance, the positions
concerned were classified as liabilities.


Interventions "Anti-crisis" in support of small and medium-sized enterprises and 22 families
During the year the Bank Group have prepared a series of interventions
family support and economic realities of production and their territories
reference, working with public institutions (Chambers of Commerce, Regions and
Province) and Institutions Guarantee 23.



22   As defined in the legislation are considered small businesses 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 than € 43 million.
For 23 companies, in particular: the 'Trust Agreement' with the Chamber of Commerce of Bergamo,
     "Protocol with the Province of Brescia for SME support, the agreement with Federfidi Lombardia for the management
     product "Confiducia, the initiatives of local Chambers of Commerce and the Region of Lombardy Lombardy
     the consortia of the commerce sector, the "Solidarity Fund" established by the Region Marche to support access
     Marches to credit for SMEs, the "Memorandum of Understanding - together to overcome the crisis and relaunch the development"
     Coopfidi Rome, the project of the Calabria region for the provision of soft loans in favor of
     young people and women to start 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, which has been given the opportunity to request the suspension of depreciation rate in
     append them to the natural expiration of the original loan. Also at the local level have been activated
     initiatives extraordinary anticipation of the layoff to assist families in need.

60
At the same time the Group has adhered to the major initiatives at the system level
Italian Banking Association. On 12 August the UBI acceded to the 'Agreement for
suspension of debts of small and medium-sized enterprises to the banking system "(as
additions) signed on August 3 by the Ministry of Economy and Finance, and ABI
Banks and other associations from the Centre for Enterprise, aimed at supporting SMEs
are in temporary financial difficulties but having a reasonable chance
economic and business continuity.
A further condition is that these companies as at 30 September 2008 had
Only positions classified by the Bank "performing" and that at the time of
The application need not present positions "refurbished" or "suffering",
or enforcement procedures in progress.

The agreement, made operational Sept. 28, 2009, provides four measures: i) suspension
12 months of the principal portion of loan installments ii) suspension for 12 or for 6 months
the principal amount of the fees or real estate leases, respectively
security; iii) elongation at 270 days of the maturity of bank loans up
short-term loans iv) provision of special funding aimed at supporting the
strengthen the capital 24.

In order to allow a more streamlined operational management of requests for
accession to the Agreement, a process was set up specifically for the resolution of questions of
admission to the benefits of the moratorium.

As regards, in particular, the offer provided by the Agreement of interventions for
strengthen the capital base of SMEs, the UBI has made available a line of
credit "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 4
(in millions of EUR.
The supply of commercial banks in the Group also provides the following two additional lines
Credit backed by collateral arrangement of the major consortia, which have
improved features than envisaged by the Agreement:
         "400% Support and Development, funding of up to four times the
          equity injection by the shareholders of the company (for a maximum of 500 000
          €) to support growth plans through the implementation of
          fixed investment;
         "200% Increase in the capital structure, financing for an amount
          to double the capital injection by shareholders of the company (company
          capital, people or individual enterprises), for a maximum of 1 million €,
          aimed at supporting processes of capitalization and rebalancing of the sources
          financial firms.
The disbursement of these funds is also provided in the case of payments of capital
deferred or destination in time to reserve for future operating profits.

Again for the active intervention of "anti-crisis", August 6, the Group has signed a UBI
loan with Cassa (CDP) pursuant to the Convention
signed by the ABI and the CDP 28 May 2009 to offer new opportunities
financing on favorable terms to small and medium enterprises through the use of
bearing the CDP earned from savings accounts.




24   ABI By circular of 23 October 2009 has been expanded scope of operations eligible for financing
     interventions, in particular the eligibility has been clarified, with regard to the lengthening of maturities,
     also lines of credit for short-term advances on non-assisted "notification" and "confirmation".
     ABI By circular dated 14 January 2009 was also supplemented the list of measures that banks may
     to take advantage of businesses in temporary financial difficulty to be operational within thirty days
     the date of enactment of the Circular (ie by February 13): extension of 120 days
     conduction intervals of agricultural credit, improved with or without the use of agricultural bills; extension
     Operation of 12-month suspension of the share capital of the rate of depreciation funding to MLT
     carrying the issuance of promissory notes, extension of the scope of benefits financed through
     public interest or capital.

                                                                                                                      61
UBI Group was provided a credit line of EUR 156 million (in
a first tranche of 3 billion expected at the system level 25) to finance investment
implementing and / or under construction that is the increase in working capital for SMEs
(As defined in the Community).
The project enables retail banks to deliver the Group's loans to
SMEs on better terms, taking into account the reduction in cost of funding
made from the Deposits and Loans provided for in that Convention for banks with
Tier I ratio above 7%, of which the Group can benefit from UBI.
The term of repayment of the loan provided by Cassa
Banks participating in the initiative is set at a maximum of 5 years with a period of
grace period of 3 years at a rate equal to EURIBOR plus a six-month
spread of 70 basis points today to the 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 respect of families in difficulty following
of the crisis, signed by the ABI and thirteen consumer associations 26. It is one of
initiatives of the "Family Plan" ABI, which aims to enhance the sustainability of the credit market
retail.
The measure, unique in the European mortgage market, is a similar solution
to the 'Agreement for the suspension of debts of small and medium-sized enterprises to the system
credit "described above.

The UBI has also joined the Framework Agreement signed in May 2009 and the ABI
CEI (Italian Episcopal Conference), providing the "Loan of hope"
intended for families who have lost all earned income, are not granted pensions or
outside income, other than that generated by the properties of the dwelling house or
allowance layoff Ordinary or Extraordinary and aimed at realizing
projects for the re-employment or start a business.
The delivery of these loans, available from September and up to 2012, was
centralized in Banca 24-7.


Adaptation to the new provisions on transparency
On 1 January 2010 came into force the new provisions on transparency
the transactions and banking and financial services issued by the Bank of Italy
decision of July 28, 2009. They apply to all operations and services of nature
Banking and finance, 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 transposition in Italy, with D. Legislative Decree No. 11
January 27, 2010 entered into force on 1 March 2010, the European Directive 2007/64 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 differentiating the rules to which it is subject
in 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, to credit the amount of
operations on behalf of the beneficiary by the end of the business day following the
where the order was received. Until that date, the parties may agree to apply a
different period, which may not exceed three business days. In this


25   On 17 February 2010, the Cassa ABI signed a new Convention that establishes
     the distribution and use of the second tranche of 5 billion EUR.
26 In summary, the agreement provides for the suspension for at least 12 months of repayment of loans up to 150,000 € lit
     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 per year;
         · who suffer or have suffered particularly badly in 2009-2010 events (death, loss
            employment conditions of non-occurrence of self-sufficiency, access to the layoff).

62
About the UBI has planned two days for domestic credit transfers and SEPA on 3 network
days for those from abroad within the PSD.


Site inspections
On December 17 the U.S. CONSOB - Inspection Division has initiated an audit
at the Banca Popolare di Bergamo, in particular, in order to ascertain "the state of
progressive updating of the solutions adopted, even in the communication
CONSOB 9019104 of 02/03/2009 "Level 3 - Intermediaries Regulation - on the
Intermediary duty to behave with integrity and transparency in the
distribution of illiquid financial products in consideration of the guidelines
membership for the implementation of the measures in CONSOB.
Inspections are continuing regularly with the provision of documentation
required by the inspectors as well as through meetings with members of its Parent
and Bank Network

As part of routine inspections carried out during the third quarter of 2009 at the
bank, Bank of Italy has encountered at some bank branches which do not
Clients were sent to the position papers of 2008 relating to loans and
loans to private customers.
As a result, the Bank, after having promptly notified the Board of Auditors,
so by the end of the fourth quarter of 2009 to send the summary
through the service company of the UBI Banca Group, to all interested customers. La
delayed delivery, compared to what happened in the past was caused by
Significant organizational activities - information that characterized the period following
migration to the new computer system in October 2008.




                                                                                              63
Covered Bond
In 2009, UBI Banca carried further diversify its sources of
institutional funding by completing the first issues of covered bonds
(Covered Bond) in a program of up to € 10 billion issued in
July 2008, the only program multioriginator "in Italy which will host up to the
participation of 10 banks in the Group.
In detail have been carried out successfully two issues of bonds
Bank Guaranteed by € 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 7 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 a fixed rate of 4%
corresponding to the 10-year mid swap rate 67 basis points.
Both issues - with a AAA / Aaa by Moody's and Fitch - have been
edited by Barclays as Arranger and Barclays, Deutsche Bank, Natixis and Société
Générale acting as Joint Lead Managers.
UBI is the guarantor of emissions Finance Ltd, which was formed at a portfolio of
residential mortgage loans sold by banks in the Group participating in the program, in that context
Bank has made, the sale was completed in December 2009, 36.8% of
portfolio amounted to EUR 1.35 billion.
Within the Program, the Banca Popolare di Bergamo also plays the role of
subservicer, overseeing the collection and administration of the loans sold; on are provided in the
Notes to Part E, paragraph C.3.


Consortium PattiChiari: the commitment to quality
As you know, part of a wider project to improve relations with the
Retail customers, in 2008 the Italian banking industry has entrusted to the Consortium PattiChiari
new role as a "vehicle industry" to implement a comprehensive action plan that provides for the
production, management and dissemination tools of simplicity, clarity, comparability and
mobility of customers (the "Commitment to Quality") and programs
financial education of the community.

Banks UBI Group, already in the Consortium since its inception PattiChiari
(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 service
to customers.

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

In this regard, it highlights the fact that, confirming the positive recognition of the initiatives
industry self-regulation, the recent revision of the rules on public
of transparency adopted by the Bank of Italy has implemented various components in-house
designed and developed by intermediaries at the level of self-discipline, leading
consequently, the Consortium to bring the scope of its intervention to prevent
duplication of effort.
Commitments to quality "summary information sheets" (commitment phase 1) and "Extract
Easy Account "(commitment phase 2), initially under the Statute PattiChiari were
therefore excluded from self-contained as incorporated within the
Bank of Italy new rules on transparency.




64
In 2009, the Bank has started all fourteen Commitment to Quality Phase 1 27,
ten commitments for Quality Phase 2 28, and four additional 29 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,
been completed within the terms of Law 30, the annual update of the Document
Security Planning (DPS) prescribed by art. 34, paragraph 1, letter g) of
above-mentioned decree. Regarding in particular the treatment
carried out by computer, the Bank has outsourced at UBI Sistemi e
Services ScpA, this guarantees under the contract of service, compliance
standards as prescribed by law and the adoption of security measures required by the relevant
force.


Lapse securitization "Albenza 2"
On January 15, 2009, similar to Operation Albenza 1 ", was completed
early closure of the "Albenza 2" by purchasing credits for 2181
total of 66.1 million EUR, whose business servicing by BPB SpA
ended December 31, 2008.


Social and Environmental Responsibility
The social responsibility of the UBI Banca Group is based on a system of values that has
its main references in the Charter of values and principles of the Global Compact and is
concrete implementation through the Plan for Social Responsibility. The Charter of Values - born
after a thorough process of analysis and sharing, which involved 120 managers
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
United Nations Secretary General Kofi Annan to all actors of society, so
work together to build more equitable and sustainable global economy.
In 2007, with the establishment of the Group, has started a process to identify and
formalization of a working plan which aims to find a system of government
social responsibility in an integration of goals and specific projects in the plan
Industrial Group.




27    Commitments for the Quality of Phase 1 activities are: current accounts comparison engine to packet engine
     comparison of current accounts; composite indicator price for current account package; indicator
     synthetic price for current accounts; guide "exchange account" guide "mutual exchange" investment
     informed; automatic transfer RID, published in the average time to close the current account portability
     Auto loans data, monitoring the time of closure of accounts and information on ATM terminal on
     ATM fees, monitoring the quality of indirect channels for placement and credit management
     through brokers, the timing of reimbursement objections wrong / not allowed on the cards.
28 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, guidance on
     security, portability automatic Ri.Ba.; transfer rate auto loan charges and / or loans;
     monitoring service levels FARO, FARO centralized call center, service financial inclusion;
     attesting to the tax deductibility of mortgage interest, home banking security. The commitments for which
     has yet to be completed during the activation or release of such standards by the Consortium are:
     security card misuse, automatic transfer credit, automatic transfer securities portfolios;
     Automatic transfer credit card statements.
29 General criteria for assessing the credit worthiness of SMEs, average response times on lending to small
  enterprises; certain times of availability of funds paid by check; availability of the list of regulated services
  account.
30 Updating the DPS for the current year was approved by the Board of Directors on March 18

    2010.

                                                                                                                        65
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 of intervention
Corporate      Governance, Management, Business Management                   of social interventions,
Reporting and Control)                      a series of targets and
mechanisms / instruments (eg Code of Ethics, Policy on CSR issues) needed to
achieving these objectives. All corporate structures are involved in defining and
in pursuit of the objectives of the Plan of CSR, with the support of the Corporate Staff
Social Responsibility, which formulates proposals for policies and guidelines, contributes
management system and control, supports the involvement of stakeholders and oversees the
activity reporting. Through the gradual integration of the objectives of
Corporate Social Responsibility in the Business Plan, the UBI Banca Group pursues the convergence
strategies, policies and business goals with the values and principles related
and the expectations of stakeholders for a sustainable value creation through
reputational risk control, the affirmation of a corporate identity badge and
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
corporate structures, network banks and major product companies, the drafting of
new Code of Ethics, a work of mapping of stakeholders and
relevant ethical issues. The Code identifies the bundle of rights, duties and responsibilities
undertaking in respect of all its stakeholders and will accept concrete commitments to
each of them. There is currently integrating the specific rules of conduct
addressed to all those working with and / or on behalf of the Company both internally and
outside of the organization to ensure compliance by the management not only
with the values and principles of reference, but also to laws, regulations and
voluntary codes of conduct adopted. Parallel to the drafting of the Code of Ethics in 2008
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 the full and true
compliance with environmental, aims to contribute to the development
economic development and the achievement of targets under the Kyoto Protocol,
giving practical effect to the principles agreed by the Global Compact.
In December 2008, was formally adopted the policy environment (in addition to policy
Armaments adopted in 2007) that identifies the ways in which the UBI Banca Group
intends to manage its environmental responsibilities, both to the community in which
work is to future generations, in the medium to long term.
With the policy environment, the Group is committed to reducing its environmental impact through
intelligent and responsible management of both the impacts generated by the company,
for example in terms of resource consumption, waste production and emission of substances
harmful (direct impact), as well as those generated by the conduct adopted by individuals
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 use
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 the preparation of
emergencies.
With regard to indirect impacts, the Group's objective is to encourage
Customer to operate its business in a sustainable manner, providing appropriate products and
banking, financial and risk management.

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




66
Principal risks and uncertainties faced by the Bank


RISK
The Bank attaches primary importance to measure, manage and control risks,
activities necessary to ensure sustainable value creation over time and
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 capital
adequate overall - in terms of current and prospective - to address all material risks
which is or could 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 subjected to
assessment, based on its operations, to their characteristics and markets
reference.
The task of risk identification is carried out continuously. It is aimed at
verify the importance of the risks of the Bank already being evaluated and pick up the signals
the occurrence of other risks. The identification involves a precise definition
concept of risk to which the Bank is exposed, the analysis of the factors that contribute to
generate, and the description of their mode of manifestation. This activity is
made 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
provides for the assessment of the risks identified and the determination of the total capital
Suitable to deal with (capital adequacy), and in optical current and prospective. For better
assessment of exposure to risk mitigation and control systems and
adequacy of capital, the Bank also uses stress testing specifications (by
which will assess the impacts on a single risk) and global (through which you
assess the impacts of all risks together).

The Bank has adopted a system of governance and risk management covering the
organizational, regulatory and methodological in order to ensure consistency
operations to their risk tolerance.
Consider the mission and operations of the Bank and the market environment in which
operates, the risks have been identified for evaluation in the process
ICAAP, categorized Pillar and Pillar, as shown in
reference standard.

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
          credit exposure;
          market risk: the risk of changes in market value of positions in the
          trading book for purposes of supervision for unexpected changes in conditions
          market and deserves credit, it includes risks arising from changes
          unexpected exchange rate and commodity prices that refer to positions
          entire budget;
          Operational risk: the risk of incurring losses resulting from inadequate or
          dysfunction of processes, people and systems or from external events;
          fall into this category losses arising from fraud, human errors, interruptions
          operations, unavailability of systems, breaches of contract, disasters
          natural legal risk is included.

In addition to the risks of Pillar, we have identified the risks of second pillar
measurable, for which formal quantitative methods that lead to

                                                                                                    67
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) Risks Measurable:
              concentration risk: risk arising from exposures in the portfolio
                bank counterparties or groups of counterparties in the same sector
                Economic, or exercising the same or belonging to the same
                geographical area, the concentration risk can be divided into subtypes
                single name concentration risk and sector concentration risk;
              Interest rate risk: current or prospective risk of a change
                net interest income and economic value of the company, following
                unexpected changes in interest rates that impact the banking book;
              Business risk: the risk of adverse changes and unexpected earnings / margins
                compared to expected data, linked to volatility in volumes due to pressures
                competitive and market situations.
              participatory risk: risk of losses arising from the portfolio
                Equity investments.
     2) Risks can not be measured:
              risk arising from securitization means the risk that the economic substance
                 the securitization is not fully reflected in
                 pricing decisions and risk management;
              compliance risk: the risk of incurring legal penalties or
                 administrative, financial loss or significant damage to reputation
                 consequence of a breach of mandatory rules (of law or regulations)
                 or self (statutes, codes of conduct, codes of
                 Conduct);
              Liquidity risk: the risk of failure to fulfill its commitments
                 payment that can be caused by inability to raise funds or
                 find them cost more than the market (funding liquidity risk) or
                 presence of limits on realization of assets (market liquidity risk)
                 incurring a capital loss;
              Reputational risk: the risk of incurring losses resulting from a perception
                 negative image of the bank by customers, counterparties, shareholders
                 Bank, investors, regulators and other stakeholders;
              residual risk, risk of incurring losses resulting from unforeseen
                 ineffectiveness of the accepted techniques for mitigating credit risk
                 used by the company (eg mortgage);
              strategic risk: current or prospective risk to earnings shortfall or
                 capital arising from changes in the business environment, implementation
                 poor decisions, lack of responsiveness to changes in the competitive environment.

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

With reference to the areas securities brokerage and placement of instruments
financial (funds, policies, etc..), the financial market developments have led to
significant reductions in the expectations of fee income (business risk).

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


68
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 for risk management
Financial and the Bank's exposure to price risk, credit risk, the
liquidity risk and the risk of cash flow - provided by art. Code 2428
Civ. - 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 a
of the risk categories identified above, is not determinable at the time and then
quantifiable.

The context in which the Bank is to operate is affected by the fragile recovery that characterizes
advanced economies and in particular the EUR area. In particular it is expected - by
of international organizations - a slow recovery, with large uncertainties associated with
developments in the global economy 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.

Identified the elements of uncertainty may arise due to impacts
mainly 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. The uncertainties about the development of the macro
        remain linked to the system's ability to initiate a phase of growth is not linked
        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 situation of
        weakness, even with negative impacts on the quality of lending system
        group. A brake on development might also be generated worsening
        the tax burden and measures of public expenditure in the individual
        Countries covered by excessive government debt generated during the crisis period
        statement;
        financial markets and the curve of interest rates. The level
        prolonged low interest rates has kept pressure on margins Banking
        which, in turn, would benefit from any increase thereof. In
        this sense, the uncertainties are related to the timing of return from operations
        expansionary monetary policy used during the recession. Assume therefore
        particular emphasis on the future dynamics of inflation and in that regard, the current
        information available does not indicate the presence of endogenous pressures in
        consistent with the large output gap, which characterizes the Italian economy and society
        EUR area. Are not possible, however, potential adverse effects resulting from
        any growth in the prices of raw materials - with special reference to
        energy sector - amplified by any disorderly movements of the EUR 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 some
        sovereign debt and possible further enlargement of the yield spread. Finally,
        more stable flow of ransom and the resumption of performance of funds -
        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
        operations and credit and leasing to customers, the combination of
        high prices recorded in the previous period with the potential reduction of
        themselves in the future, could affect the inherent caution of the operations
        outstanding;
        changes in the regulatory environment. In general, the introduction of new laws or
        conventions / agreements at the system level, could change the pricing of certain
        economic items, leading to a reduction in financial margins and


                                                                                                     69
        commissions from, when not yet quantifiable. In particular,
        marks the implementation of Directive 2007/64/EC on payment services in
        Internal Market (cd Payment Services Directive), where the rules - however -
        could be subject to future additions, following the issuance of
        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 proposed
        inferred from the calculation of core tier 1 capital of the third and tax assets
        assets, together with the introduction of quantitative requirements designed to reduce the risk
        liquidity.

                                                 *****

The risks and uncertainties described above were the subject of an evaluation process aimed
also to highlight the impacts of changes in market conditions and parameters on
corporate performance. The Bank is in fact equipped with instruments to measure possible
impacts of risks and uncertainties about its operations (in particular through analysis
sensitivity and stress tests), which allow, in time and continuity, adaptation
their strategies                – in terms of distribution model, organizational and
management / rationalization of costs - compared to the changes of context. I
risks and uncertainties are also subject to constant observation throughout the body
risk of regulatory policies adopted by the Bank: policies are updated in relation
a change of strategy, context and expectations of the market. The activity of
regular monitoring of these is aimed at checking their progress and
their adequacy. The analysis carried out indicate that the Bank is able to cope with
risks and uncertainties to which it is exposed, thus confirming the conditions of their
continuity.




Significant events after the balance sheet
It refers to that given in Accounting Policies - Section 3 Subsequent Events
the balance sheet.




70
Business Outlook
Despite the signs of economic recovery, the forecast
on the evolution of management are still subject to considerable uncertainty. The impacts
crisis, it still appears with significant and widespread negative effects on profitability
company primarily because of the level of interest rates historically low and
the deterioration in credit quality. In this context, the Bank approved during the month
of January, the budget for the year 2010 and is establishing guidelines for the plan
Industrial 2010-2012.




                                                                                             71
Proposals to the assembly: the draft allocation of profits
FOR THE PERIOD
Dear Shareholders,

We invite you to approve the budget for the year ended December 31, 2009, consisting of the
Sheet, income statement, statement of comprehensive income, from
statement of changes in equity, cash flow statement and the notes
Integrative, accompanied by the Management Report and the Report of the
KPMG SpA, taking into account that the net is not exposed to the following format
with no capital gains distribution in accordance with art. 6, paragraph 1, letter a) of Legislative Decree no. 38/2005;
therefore proposes the following allocation of net income:


Net Income (in EUR)                                                                          179.015.109,71




5% to the Legal Reserve                                                                       (8.950.755,49)

                                                                                             170.064.354,22



                                                                                              (3.401.287,08)
2% to the Board of Directors for purposes of education, and cultural benefits


2009 Income available for other destinations                                                 166.663.067,14

Dividends paid (equivalent to EUR 0.0356 per share)                                          (44.724.280,00)


Remaining amount to be allocated to Voluntary Reserve                                        121.938.787,14




The Board therefore calls on the Assembly to take, if they agree with
proposals and having taken note of the report of the Board, the following
Resolution:


"The Shareholders' Meeting of Banca Popolare di Bergamo SpA

     -     noted the Management Report, Balance Sheet, the Income
           Statement, statement of comprehensive income, statement of changes
           Shareholders' Equity, the Cash Flow Statement and Notes;
     -     took note of the Report of the Board;

                                                                      acting

to approve:

     a)    The Management Report, Balance Sheet, Income Statement, the Prospectus
           overall profitability, the Statement of Changes in Equity, the
           Cash Flow Statement and Notes to the financial year ended 31 December 2009
           which show a net profit of € 179,015,109.71 as presented by
           Board of Directors as a whole and individual items.

     b)    The distribution of net income - after assignments to the legal reserve and the
           statutory allocations, can give a dividend of €
           0.0356 for each share held by the parent totally UBI Banca
           ScpA - and the destination of the remaining amount to "Volunteer Reserve.



72
At the conclusion of this report, the Board of Directors renewed the feelings
of appreciation for their cooperation in the course of the whole exercise
staff and extends heartfelt gratitude to customers and to the parent company for UBI Banca
consideration given to the Bank.

The Council then thanked the Supervisory Authority and the central and local associations
Category for the effective support provided, as usual, the work of the Bank.


Bergamo, March 18, 2010




                                                                  The Board of Directors




                                                                                             73
Notice of the general ordinary meeting

It is called an Ordinary of the Banca Popolare di Bergamo SpA, at the
Registered office in Bergamo, Piazza Vittorio Veneto n. 8 for the day April 6, 2010, at
14.30, to deliberate on the following


                                       AGENDA

1. Presentation of the draft financial statements at 31.12.2009 - after reports of the Board of
   Directors, Auditors and Independent Auditors KPMG - and
   consequent resolutions;

2. Report to the Assembly in respect of remuneration and incentive policies.
   Proposals for setting:
      pay policy in favor of the Board of Directors;
      remuneration policies and incentive schemes for medium / long term
      correlated with the UBI Bank in favor of employees.




The intervention in the House is governed by the law.




Bergamo, March 18, 2010


                                              The Chairman of the Board of Directors
                                                          Dr. Emilio Zanetti




74
                 Attestation
Chairman of the Board of Directors
           and Officer
  pursuant to art. 154-bis of Legislative Legislative Decree
  58/98




                                                   75
76
77
     Financial Statements




78
Balance Sheet
(amounts in EUR)


                                                                                               Change in          % Change
ASSETS                                                    31/12/2009        31/12/2008
                                                                                                 Annual              Annual
10. Cash and cash equivalents                               112.985.526       134.156.018        (21.170.492)            (15,78)
20. Financial assets held for trading                         50.458.952       84.304.578        (33.845.626)            (40,15)
40. Financial assets available for sale                       21.283.064          495.403          20.787.661               ns
60. Loans to banks                                         5.728.085.591    7.273.169.988     (1.545.084.397)            (21,24)
70. Loans to customers                                    19.959.411.370   19.719.071.476         240.339.894               1,22
80. Hedging derivatives                                     144.696.808       350.588.540       (205.891.732)            (58,73)
90. Fair value change in hedged financial assets (+/-)        40.684.158       44.547.739          (3.863.581)             (8,67)
100. Equity investments                                        5.065.184        5.065.184                     -                  -
110. Tangible assets                                          38.623.320       33.504.796           5.118.524             15,28
120. Intangible assets                                        42.144.603       42.144.603                     -                  -
       of which:
           goodwill                                           42.144.603        42.144.603                    -                  -
130. Tax assets:                                            104.984.281         70.624.860        34.359.421              48,65
      a) current                                             68.325.167         42.765.456        25.559.711              59,77
     b) deferred                                              36.659.114        27.859.404          8.799.710             31,59
150. Other assets                                            258.343.824       309.826.254       (51.482.430)            (16,62)
Total assets                                             26.506.766.681    28.067.499.439    (1.560.732.758)              (5,56)




                                                                                               Change in          % Change
LIABILITIES AND EQUITY                                    31/12/2009        31/12/2008
                                                                                                 Annual              Annual
10. Due to banks                                            154.529.232       144.081.820         10.447.412                  7,25
20. Due to customers                                      13.387.126.344   13.171.258.319        215.868.025                  1,64
30. Securities issued                                     10.309.136.678   11.882.909.535     (1.573.772.857)            (13,24)
40. Financial liabilities held for trading                    49.728.759       83.649.667         (33.920.908)           (40,55)
60. Hedging derivatives                                       72.754.668       79.294.990           (6.540.322)            (8,25)
80. Tax liabilities:                                          61.528.891       88.063.013        (26.534.122)            (30,13)
        a) current                                            35.636.460        52.431.614       (16.795.154)            (32,03)
        b) deferred                                           25.892.431        35.631.399         (9.738.968)           (27,33)
100. Other liabilities                                      454.032.554       684.951.445       (230.918.891)            (33,71)
110. Provision for termination indemnities                   88.005.591        90.583.183          (2.577.592)             (2,85)
120. Provisions for risks and charges:                       29.572.728        30.710.247          (1.137.519)             (3,70)
       b) other provisions                                   29.572.728         30.710.247        (1.137.519)             (3,70)
130. Valuation reserves                                      (1.740.616)      (11.381.087)         9.640.471             (84,71)
160. Reserves                                               466.776.742       194.230.681        272.546.061             140,32
180. Share capital                                         1.256.300.000     1.256.300.000                    -                  -
200. Profit for the period                                   179.015.110       372.847.626      (193.832.516)            (51,99)
Total liabilities and equity                             26.506.766.681    28.067.499.439    (1.560.732.758)              (5,56)




                                                                                                                               79
Income statement
(amounts in EUR)


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

10. Interest and similar income                                                 940.372.048     1.514.605.908    (574.233.860)            (37,91)
20. Interest and similar expense                                               (368.168.454)     (700.358.711)    332.190.257             (47,43)
30. Net interest income                                                         572.203.594      814.247.197     (242.043.603)            (29,73)
40. Fee and commission income                                                   318.460.657       329.059.841      (10.599.184)            (3,22)
50. Fees and commission expense                                                  (30.946.276)     (23.972.747)      (6.973.529)            29,09
60. Net fees and commission                                                     287.514.381      305.087.094      (17.572.713)             (5,76)
70. Dividend and similar income                                                             -                1               (1)                    -
80. Net profit (loss) on liabilities and assets held for trading                   3.498.227        1.926.017        1.572.210             81,63
90. Profit (loss) from hedging activities                                          5.067.448       (6.191.496)      11.258.944           (181,85)
100. Gains/losses on disposal or repurchase of:                                   (2.030.570)      (3.085.642)       1.055.072            (34,19)
      a) loans                                                                              -      (4.251.155)       4.251.155                      -
      d) financial liabilities                                                    (2.030.570)       1.165.513       (3.196.083)          (274,22)
120. Operating income                                                           866.253.080     1.111.983.171    (245.730.091)            (22,10)
130. Net adjustments for impairment of:                                        (110.711.539)      (56.288.117)     (54.423.422)            96,69
      a) loans                                                                 (109.700.028)      (58.052.570)     (51.647.458)            88,97
      b) financial assets available for sale                                        (133.685)                -        (133.685)                     -
      d) other financial activities                                                 (877.826)       1.764.453       (2.642.279)          (149,75)
140. Net result from financial activities                                       755.541.541     1.055.695.054    (300.153.513)            (28,43)
150. Administrative expenses                                                   (524.343.819)     (543.595.331)      19.251.512             (3,54)
      a) Staff expenses                                                        (278.078.023)     (288.082.366)      10.004.343             (3,47)
      b) other administrative expenses                                         (246.265.796)     (255.512.965)       9.247.169             (3,62)
160. Net provisions for risks and charges                                           (542.658)       3.874.010       (4.416.668)          (114,01)
170. Net impairment adjustments/write-backs on property, plant and equipment      (4.598.688)      (2.501.840)      (2.096.848)            83,81
190. Other operating expenses (income)                                            56.892.955       55.344.441        1.548.514              2,80
200. Operating expenses                                                        (472.592.210)    (486.878.720)      14.286.510              (2,93)
240. Gains (losses) on disposal of investments                                       (12.039)         (42.295)          30.256            (71,54)
250. Profit (loss) from current operations before taxes                         282.937.292      568.774.039     (285.836.747)            (50,25)
260. Income taxes on current operations                                        (103.922.182)     (196.012.231)      92.090.049            (46,98)
270. Profit (loss) from current operations after tax                            179.015.110      372.761.808     (193.746.698)            (51,98)
280. From group of assets held for sale after tax                                           -          85.818          ( 85.818 )                   -
290. Net profit (loss) for the period                                           179.015.110      372.847.626     (193.832.516)            (51,99)




80
81
Statement of Other Comprehensive Income
(amounts in EUR)




                                                      Items              31/12/2009      31/12/2008




      10. Income (loss) for the period                                   179.015.110     372.847.626
            Other income items after tax
      20.       Financial assets available for sale                          118.868          (3.094)
      60.       Cash flow hedges                                           8.207.673      (8.806.834)
      90.       Actuarial gains (losses) on defined benefits plans         1.313.929      (2.609.933)
     110. Total other income items after tax                               9.640.470     (11.419.861)
     120. Comprehensive income (Items 10 + 110)                          188.655.580     361.427.765




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 shows the aggregate
"Comprehensive income" as the sum of the result for the period (net income / loss) and
of cost components and revenue that are not recognized in the income statement, but to
equity, as a result of a specific provision of IAS / IFRS.
In essence this new prospect joins the schedule of income in order to
provide better information to the overall profitability through
the identification of a pool that, unlike the utility / loss for the year, expresses,
the broadest approach, the wealth generated / absorbed by operations including company
even those components of cost and revenue, for the period, resulting
accounted for in equity and therefore gave rise to changes in reserves
write-downs .




82
Statement of changes in equity
As of 31 December 2009
(amounts in EUR)


                                                                                                                                                                               Change during the period
                                                                                         Allocation of profit (loss)
                                                                                         from previous year
                                                   Changes in                                                                                                           Shareholders’ equity
                               Balance as of                    Balance as of                                                                                                                                                                             Shareholders' equity
                                                    balances                                                                                                            transactions                                                      Profitability
                               31/12/2008                       01/01/2009                                              Changes in                                                                                                                        to 31/12/2009
                                                   opening                                                                                               Purchase                                         Derivatives                   Overall the
                                                                                                      Dividends and       reserves        Issue
                                                                                      Reserves                                                             shares                                         on            Stock options    31/12/2009
                                                                                                      other                              of new shares                   Distribution Change
                                                                                                                                                          shares                                            shares
                                                                                                        allocations                                                       special tools
                                                                                                                                                                                                             shares
                                                                                                                                                                            capital dividend

Share capital:                 1.256.300.000                    1.256.300.000                                                                                                                                                                              1.256.300.000

     a) ordinary shares         1.256.300.000         X          1.256.300.000           -                     X             X                      -               -           X              X              X              X                 X            1.256.300.000

     b) other shares                           -      X                         -        -                     X             X                      -               -           X              X              X              X                 X                           -

Share premium reserve                          -      X                         -        -                     X             X                      -       X                   X              X              X              X                 X                           -

Reserves:                        194.230.681               -     194.230.681         272.546.061                                     -              -               -                  -                            -             -                          466.776.742

     a) from profits             166.525.599               -      166.525.599        272.546.061               X                     -              -               -                  -       X              X              X                 X              439.071.660

     b) other                     27.705.082               -       27.705.082                     -            X                     -              -       X                          -       X                    -             -            X               27.705.082

Valuation reserves:             (11.381.087)               -     (11.381.087)           X                      X             X                X             X                   X              X              X              X               9.640.470         (1.740.617)

Equity instruments                             -      X                         -       X                      X             X                X             X                   X                  -          X              X                 X                           -

Own shares                                     -      X                         -       X                      X             X                      -               -           X              X              X              X                 X                           -

Income (loss) for the period    372.847.626                -     372.847.626        (272.546.061)       (100.301.565)        X                X             X                   X              X              X              X            179.015.110        179.015.110

Shareholders' equity           1.811.997.220               -    1.811.997.220                     -     (100.301.565)                -              -               -                  -           -                -             -       188.655.580      1.900.351.235




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




                                                                                                                                                                                                                                                                        83
Statement of changes in equity
As of 31 December 2008
(amounts in EUR)


                                                                                                                                                                        Change during the period
                                                                                    Allocation of results
                                                                                              from previous period                                                  Equity transactions
                                                   Changes in
                               Balance at                       Balance at                                                                                                                                                          Profitability   Shareholders' equity
                                                   balances                                                           Changes in
                               31/12/2007                       01/01/2008                                                            Issue of       Purchase         Distribution of    Change       Derivatives on                total            to 31/12/2008
                                                   opening                                          DIVIDENDS AND       reserves                                                                                      Stock
                                                                                     reserves                                            new           shares         extraordinary     Tools          shares                      FOR THE YEAR
                                                                                                    OTHER                                                                                                            options
                                                                                                      allocations                       shares        shares            dividends         instruments   shares                     2008



Share capital:                 1.256.300.000          X         1.256.300.000                   -          X               X                     -              -           X                X            X            X                  X           1.256.300.000

     a) ordinary shares         1.256.300.000         x          1.256.300.000                             X               X                                                X                X            X            X                  X            1.256.300.000

     b) other shares                                  X                         -                          X               X                                                X                X            X            X                  X                           -

Share premium reserve                                 X                         -                          X               X                            X                   X                X            X            X                  X                           -

Reserves:                         94.640.374               -       94.640.374        95.379.164            X             4.211.143               -              -                   -        X                  -              -          X             194.230.681

     a) from profits              71.146.435               -       71.146.435         95.379.164           X                                                                        -        X            X            X                  X             166.525.599

     b) other                     23.493.939               -       23.493.939                   -          X              4.211.143                     X                           -        X                                                            27.705.082

Valuation reserves                    38.774                           38.774           X                  X                              X             X                   X                X            X            X            (11.419.861)        (11.381.087)

Equity instruments                             -      X                         -       X                  X               X              X             X                   X                             X            X                  X                           -

Treasury shares                                -      X                         -       X                  X               X                                                X                X            X            X                  X                           -

Income (loss) for the period    408.804.234                -     408.804.234        (95.379.164)      (313.425.070)        X              X             X                   X                X            X            X            372.847.626         372.847.626

Shareholders' equity           1.759.783.382          X         1.759.783.382                   -     (313.425.070)      4.211.143               -              -                   -              -            -              -    361.427.765       1.811.997.220




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




            84
Cash flow statement
(amounts in EUR)


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


A. OPERATING ACTIVITIES
1. +/. management)                                                                                               619.485.000          286.519.711
profit for the year (+/-)                                                                                         179.015.110          372.847.626
- capital gains/losses on financial assets/liabilities held for trading and on financial assets/liabilities
designated at fair value through profit and loss (/+-)                                                            242.963.691        (470.301.199)
- caital gains/losses on hedging activities (-/+)                                                                    (5.067.448)         47.273.631
- net impairment adjustments (+/-)                                                                                100.514.335            56.288.116
- net adjustments to property, plant and equipment and intangible assets (+/-)                                        4.598.687           2.501.840
- Net provisions for risks and charges and other costs / income (-)                                                (10.220.984)          35.350.528
- taxes and duties not paid (+)                                                                                   107.681.609           240.936.736
- Anet write-offs/write-backs on disposal groups after tax)                                                                    -          1.622.433
- other adjustments (+/-)                                                                                                      -                   -
2. Cash flow generated/absorbed by financial activities)                                                       1.195.309.637       (2.273.534.344)
- financial assets held for trading                                                                                  34.217.297          46.103.001
- financial assets designated at fair value                                                                                    -                   -
 - financial assets available for sale                                                                             (20.802.478)            (498.496)
- due from banks: repayble on demand                                                                           (2.679.202.893)      (2.203.533.116)
- due from banks: other                                                                                         4.203.839.847       (1.853.698.045)
- loans and advances to customers                                                                                (359.445.826)       1.652.179.165
Other assets'                                                                                                        16.703.690          85.913.147
3. Cash flow generated/absorbed by financial liabilities (+/-)                                                (1.725.946.353)       2.211.411.145
- Due to banks having                                                                                                35.362.797     (1.959.904.067)
- Due to banks other payables                                                                                      (24.915.385)          58.396.608
- Due to customers                                                                                                226.718.530           253.404.299
- securities issued                                                                                            (1.544.691.405)       3.984.455.563
- Pass.finanz.di trading                                                                                           (33.920.908)          59.264.254
- Pass.finanz.valutate at FV                                                                                                   -                   -
- other liabilities                                                                                              (384.499.982)        (184.205.512)
                                               Net cash flow generated/absorbed by operating activities)            88.848.284         224.396.512
B. INVESTMENT ACTIVITIES
1. Cash flow generated from (+) (+)                                                                                            -       66.891.251
- sales of equity investments                                                                                                 -                    -
- dividends collected on equity investments                                                                                   -                    -
- Sales of the expiry att.finanz.det.sino                                                                                     -                    -
- Sales of att.materiali                                                                                                      -                    -
- Sales of intangibles                                                                                                        -                    -
- sale of business lines                                                                                                      -          66.891.251
2. Cash flow utilised by)                                                                                          (9.717.211)        (22.811.735)
- purchase of equity investments                                                                                              -          ( 5.065.184 )
- Purchases of att.finanz.detenute to maturity                                                                                -                    -
- Purchases of att.materiali                                                                                        (9.717.211)        (17.746.551)
- Purchase of intangibles                                                                                                     -                    -
- purchase of business lines                                                                                                  -                    -
                                         Net cash generated/ absorbed by investment activities )                   (9.717.211)          44.079.516
C. FUNDING ACTIVITIES
- issues/purchases of treasury shares                                                                                          -                    -
- issue/purchase of equity instruments                                                                                       -                    -
- dividend distribution and other similar allocations                                                            (100.301.565)        (313.425.070)
                                            Net cash flow generated/absorbed by funding activities)             (100.301.565)        (313.425.070)
NET CASH FLOW GENERATED/ABSORBED DURING THE PERIOD                                                                (21.170.492)         (44.949.042)

Key:
(+) generated
(-) absorbed



Reconciliation of financial statements

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


Cash and cash equivalents at beginning of the period                                                             134.156.018          179.105.060
Liquidity generated by/used for in the period                                                                     (21.170.492)         (44.949.042)
Cash and cash equivalents: foreign exchange effect                                                                             -                    -
Cash and balances with central banks at end of year                                                              112.985.526          134.156.018




                                                                                                                                                         85
     Notes




86
Notes
The Notes are divided into the following parts:

    1) Part    A - Accounting Policies
    2) Part    PART B – NOTES TO THE BALANCE SHEET
    3) Part    Part C – Notes to the Income Statement
    4) Part    D - Comprehensive income
    5) Part    INFORMATION ON RISKS AND RELATED HEDGING POLICIES
    6) Part    PART F – INFORMATION ON EQUITY
    7) Part    PART G - BUSINESS COMBINATIONS
    8) Party   Part H - Related-party transactions
    9) Part    I - Share-based payments Equity-
    10) Part   Part L - Segment reporting




                                                                   87
Part A - Accounting policies
A.1 - GENERAL PART

Section 1            Declaration                of      Compliance             to      principles Accounting
                     international
These financial statements, approved by the Board of Directors of the Bank
Popolare di Bergamo SpA on March 18, 2010, and submitted for approval
Assembly convened on April 6, 2010, was prepared in accordance with accounting principles
issued by the International Accounting Standards Board (IASB) and endorsed
the date of preparation thereof and the related interpretations of
Financial Reporting Interpretations Committee (IFRIC) 31.

The budget, consisting of balance sheet, income statement, statement of Profitability
Overall, statement of changes in equity, cash flow, Note
Integrative and accompanied by the Management Report, subject to audit by
of the auditing firm KPMG, is the separate financial statements of Banca Popolare di
Bergamo SpA

The balance sheet at 31 December 2009 was drawn up clearly and give a true
and correct the balance sheet, financial condition, results of operations of the
period, the change in shareholders' 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 contains the information to reflect the continuity
business by charging the costs and revenues according to the accrual of the same, avoiding
offsetting assets and liabilities, income and expenses.
In preparing this annual report has also taken note of the Document Bank
Italy / Consob / Isvap No 4th of March 3, 2010 that, following the earlier document
jointly issued by the same authorities No 2 of 6 February 2009, recommended that
financial reports are adequate to represent in a clear, complete and
Early risks and uncertainties which the company is exposed, the assets available for
face and its actual ability to generate income. The document, like the previous one,
is non-self-perception because it introduces additional disclosure requirements
than those already provided by international accounting standards, which it recommends
timely and complete application. However identifying information in the following areas
such companies must provide a higher degree of transparency:
     1. evaluation (impairment test IAS 36) goodwill, other assets
         intangible assets with indefinite useful lives and investments;
     2. valuation of equity securities classified as "Financial assets available for
         sale "(IAS 39);
     3. Classification of financial liabilities when they are not complied with the terms
         contract pertaining to the loss of the benefit of the term.

The word document also provides details regarding the accounting treatment
adopt in situations of debt restructuring in exchange for shares. It draws

31See 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 in
function for the events covered by them and by the year they become applicable.

88
Finally, 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 has been taken of the contents of
above mentioned document to the specific sections of the notes dealing with these issues.

With specific reference to the informative on business continuity, risk and
uncertainties to which the Bank is exposed, please refer to the considerations made in the Report on
Management under "Principal risks and uncertainties faced by the Bank."

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

The financial statements used in this budget are consistent with those defined by
Bank of Italy Circular No 262/2005 as amended from 1 of 18 updated
November 2009; they provide, as well as the amount at 31 December 2009, the same
comparative information as at 31 December 2008.

On November 18 the Bank of Italy issued the update of Circular 1
262/05 "The budget transfer: patterns and rules for compilation; such action consists of a
full revision of this Circular governing the preparation of the bank in order to
incorporated in the Circular in the meantime changes in accounting principles
international, to operate some rationalization of the notes to the tables
budget and to implement some clarifications and explanations already provided to the system with previous
administrative messages 32.

Following the enactment of 1 update has been necessary reclassifications
that for the UBI, however, have focused merely details of the Notes, in
who work within the same heading.

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


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

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




32    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 on December 22, 2008
     No rescheduling of loans and 1379882 31 December 2008 (released to the banks through the so-called
     "Roneata" of January 2009) on certain amendments and clarifications of the Circ. BI 262/05.

                                                                                                                 89
Section 3          Events after the balance sheet date
Territorial Operation Optimization
The process of optimization Place has provided the provision of No 14 branches
business - consisting mainly of subsidiaries - including some banks and the Group's network UBI
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 control
Common will be accounted for in the accounts of separate entities of the Group companies UBI, in
application of the "Guidelines concerning Assirevi preliminary IFRS" (cd OPI), not
are the works of species within the scope of IFRS 3 "Business Combinations
business ".
In accordance with the provisions of the OPI, the above operations having a purpose
predominantly rearranged, then the same will be accounted for in the continuity of
carrying amounts or without the recognition of economic effects.

At December 31, 2009 the operation of local optimization does not find the representation
accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued
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 comprehensive information which is indicative
one issued in the Management Report in "Other information".




Section 4          Other aspects
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
budget, sometimes involves the adoption of estimates and assumptions can also affect
significantly on 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 more meaningful to use
estimates and assumptions:
        credit rating;
        valuation of financial assets not quoted in active markets;
        evaluation of intangible assets and investments;
        quantification of the provisions for risks and charges;
        quantification of deferred tax assets;
        definition of the depreciation of tangible and intangible
        finite useful.

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

This exercise is characterized by a significant change in estimate criteria already
applied for the preparation of financial statements at December 31, 2008.


90
Collective impairment losses on performing loans
As announced in the budget to 31 December 2008, year 2009
actions continued alignment of management and monitoring of credit from the
banks of the Group network.
Value adjustments on performing loans are estimated by adopting the methodology
evaluation based on the Basel 2 regulations.
In particular, the PD (probability of default) and LGD (loss given default) are determined
calculated on the basis of historical series on the aggregate total of the network banks. This
method on the one hand guarantees a correct representation of the likelihood of
Credit inherent in the loan portfolio, it does not yet adequately reflect the
specificity of individual network banks. Indeed in the current cost of the UBI Group
credit quality and default rates are still above a homogeneous
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 value adjustments
Overall, based on different individual represented by the series of
loss and decay rates.
During 2010 the action will continue the alignment of management and monitoring
credit from the banks of the Group network.


Commission for making available funds (former Commission overdraft)
A time to 1 July 2009, UBI, following the introduction of a new regime
commission, introduced the Commission made funds (CDF). This
committee and it supersedes all-encompassing nature, in addition to fees charged to
of credit and current accounts assigned to the "overdraft." Therefore, the
CDF committee has a nature and logic of determination other than that
characterized the overdraft charges, the same is therefore
recognition in the income statement under "Commission income" and not under
"Interest and similar income" that upheld the overdraft charges.

With respect to the reporting period the income was interested in heading
"Interest and similar income" for the detection of the Commission to Massimo
Discovered, for a total of 21.4 million EUR, and under "Commission income" for
recognition of income attributable to the Commission for making the funds available with
reference to the second half of 2009, totaling 17.2 million EUR.

Depending on the different nature and different procedures for determining, which connote
the overdraft charges with respect to the Commission for making available
Funds, the amounts relating to prior periods, shown for comparative purposes, in
the Income Statement former Bank of Italy Circular 262/05 have not been the subject of
reclassification, and therefore as due to overdraft charges, amounting to 31
December 2008 to 41.0 million EUR, 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
9 final version of IFRS, "Financial Instruments", the new accounting
intended to replace the requirement for the classification and measurement of
financial assets, IAS 39 "Financial Instruments: classification and
measurement ", bringing out the first phase of the overhaul of the
quoted the standard.
However, the IFRS 9 has not been approved by the European Commission and
therefore not currently applicable to the budgets of European companies. The process of
approval, called "endorsement, was postponed indefinitely with the


                                                                                                    91
consequence of any significant shift of the probable date for the application of
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 novelties with respect to
As already detailed in the information provided in the Interim Report to
September 30, 2009, which refers to a full reading.

Post the situation described above, the Group remains actively engaged in the UBI
participation in working groups established in the ABI, in conjunction with the major groups
Italian banks, in order to monitor the process of approval of IFRS and 9
deepen the content entered by other recent documents that represent the revision
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 how
determination of the loss in value of all financial assets carried at cost
amortized (see, in particular, loans for the banking sector). The change most
that promises significant is the change in method of determining flows
expected cash flows from assets subject to assessment: the purpose of this change lies in
attempt to avoid the application of a model pro cycling, which is currently in use
(The "incurred loss"), which determines the inclusion of losses only in the event of an outbreak
of the loss. The proposed new model, called "expected loss" provides for the detection
expected loss over the entire duration of the contract. In the initial stage, these losses
expectations are taken into account in determining the effective interest rate
activity; in subsequent phases evaluation, any changes in cash flows
expected (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
leads to a loss of value in the present, without it being necessary to wait
event occurs.




92
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 EU legislation on
accounting standards and to improve clarity and transparency, the European Commission
issued, on November 3, 2008, Regulation (EC) No 1126/2008 33 which replaces all
former regulations 34 and combines them into one text the principles previously contained
in these 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            Closing                                                               Reg 1126/2008
                                                                                        Reg 1126/2008, Reg
 IAS 7            Cash flow statement                                                   1274/2008, Reg 70/2009,
                                                                                        Reg 494/2009

 IAS 8            Accounting Policies, Changes in Accounting Estimates and Errors       Reg 1126/2008, Reg
                                                                                        1274/2008, Reg 70/2009
                                                                                        Reg 1126/2008, Reg
 IAS 10           Events after the balance sheet date                                   1274/2008, Reg 70/2009,
                                                                                        Reg 1142/2009

 IAS 11           Construction Contracts                                                Reg 1126/2008, Reg
                                                                                        1274/2008

 IAS 12           Income taxes                                                          Reg 1126/2008, Reg
                                                                                        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

 IAS 18           Profit (Loss)                                                         Reg 1126/2008, Reg
                                                                                        69/2009

 IAS 19           Employee Benefits                                                     Reg 1126/2008, Reg
                                                                                        1274/2008, Reg 70/2009

 IAS 20           Accounting for Government Grants and Disclosure of                    Reg 1126/2008, Reg
                  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

 IAS 23           Borrowing Costs                                                       Reg 1260/2008, Reg
                                                                                        70/2009

 IAS 24           Disclosures on related party transactions                             Reg 1126/2008, Reg
                                                                                        1274/2008
 IAS 26           Pension funds                                                         Reg 1126/2008
 IAS 27           Consolidated and Separate                                             Reg 494/2009
                                                                                        Reg 1126/2008, Reg
 IAS 28           Investments in associates                                             1274/2008, Reg 70/2009,
                                                                                        Reg 494/2009, Reg
                                                                                        495/2009

 IAS 29           Financial reporting in hyperinflationary economies                    Reg 1126/2008, Reg
                                                                                        1274/2008, Reg 70/2009

 IAS 31           Investments in joint venture                                          Reg 1126/2008, Reg
                                                                                        70/2009, Reg 494/2009


33  Entered into force by publication in the Official Journal of the European Union No 320, November 29
   2008.
34 Ref. Regulation (EC) No 1725/2003 and subsequent amending acts.


                                                                                                                93
                                                                                   Reg 1126/2008, Reg
IAS 32         Financial Instruments: Presentation                                 1274/2008, Reg 53/2009,
                                                                                   Reg 70/2009, Reg
                                                                                   495/2009, Reg 1293/2009

IAS 33         Earnings per share                                                  Reg 1126/2008, Reg
                                                                                   1274/2008, Reg 495/2009
                                                                                   Reg 1126/2008, Reg
IAS 34         Interim reports                                                     1274/2008, Reg 70/2009,
                                                                                   Reg 495/2009
                                                                                   Reg 1126/2008, Reg
IAS 36         Impairment of assets                                                1274/2008, Reg 69/2009,
                                                                                   Reg 70/2009, Reg
                                                                                   495/2009

IAS 37         Provisions, Contingent Liabilities and Contingent Assets            Reg 1126/2008, Reg
                                                                                   1274/2008, Reg 495/2009
                                                                                   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,
IAS 39         Financial Instruments: Recognition and Measurement                  Reg 70/2009, Reg
                                                                                   494/2009, Reg 495/2009,
                                                                                   Reg 824/2009, Reg
                                                                                   839/2009, Reg 1171/2009

IAS 40         Investment Property                                                 Reg 1126/2008, Reg
                                                                                   1274/2008, Reg 70/2009

IAS 41         Agriculture                                                         Reg 1126/2008, Reg
                                                                                   1274/2008, Reg 70/2009

IFRS 1         First-time Adoption of International Accounting Standards           Reg 1136/2009, Reg
                                                                                   1164/2009

IFRS 2         Share-based payments                                                Reg 1126/2008, Reg
                                                                                   1261/2008, Reg 495/2009
IFRS 3         Business Combinations                                               Reg 495/2009
                                                                                   Reg 1126/2008, Reg
IFRS 4         Insurance Contracts                                                 1274/2008, Reg
                                                                                   1165/2009
                                                                                   Reg 1126/2008, Reg
IFRS 5         Non-current Assets Held for Sale and Discontinued Operations        1274/2008, Reg 70/2009,
               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

IFRS 8         Operating Segments                                                  Reg 1126/2008, Reg
                                                                                   1274/2008


 SIC / IFRIC                       PAPERS BY                                           APPROVAL

IFRIC 1        Changes in liabilities for decommissioning, restoration and         Reg 1126/2008, Reg
               Similar Liabilities                                                 1274/2008

IFRIC 2        Members' Shares in Cooperative Entities and Similar Instruments     Reg 1126/2008, Reg
                                                                                   53/2009

IFRIC 4        Determining whether an arrangement contains a lease                 Reg 1126/2008, Reg
                                                                                   70/2009

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


94
IFRIC 6       Liabilities arising from Participating in a Specific Market - Waste       Reg 1126/2008
              electrical and electronic

IFRIC 7       Applying the Restatement Approach under IAS 29                            Reg 1126/2008, Reg
              "Financial reporting in hyperinflationary economies"                      1274/2008

IFRIC 8       Scope of IFRS 2                                                           Reg 1126/2008

IFRIC 9       Reassessment of Embedded Derivatives                                      Reg 1126/2008, Reg
                                                                                        495/2009, Reg 1171/2009

IFRIC 10      Interim Financial Reporting and Impairment                                Reg 1126/2008, Reg
                                                                                        1274/2008

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

IFRIC 12      Service Concession Agreements                                             Reg 254/2009

IFRIC 13      Customer Loyalty Programs                                                 Reg 1262/2008


IFRIC 14      IAS 19 - The Limit on activity in the service of a defined benefit plan   Reg 1263/2008, Reg
              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

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

IFRIC 18      Transfers of assets from customers                                        Reg 1164/2009

SIC 7         Introduction of the Euro                                                  Reg 1126/2008, Reg
                                                                                        1274/2008, Reg 494/2009

SIC 10        Government Assistance - No Specific Relation to Operating Activities      Reg 1126/2008, Reg
                                                                                        1274/2008

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

SIC 13        Joint ventures - Contributions in kind by                                 Reg 1126/2008, Reg
              Venturers                                                                 1274/2008

SIC 15        Operating Leases - Incentives                                             Reg 1126/2008, Reg
                                                                                        1274/2008

SIC 21        Income Taxes - Recovery of revalued non-                                  Reg 1126/2008
              depreciable

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

SIC 27        Evaluating the Substance of Transactions Involving the Legal Form of      Reg 1126/2008
              leasing

SIC 29        Disclosure - service concession arrangements                              Reg 1126/2008, Reg
                                                                                        1274/2008, Reg 70/2009

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

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

For completeness, in addition to those already described in the information
interim period under review, the following is a brief description of the principles
Accounting for re-publication or modified after the adoption, which occurred in
fourth quarter of certain EU regulations.




                                                                                                             95
The Reg EC No 1136/2009 35 introduces a new version of IFRS 1 in order both to
first simplify future application by the companies and to eliminate some
Transitional provisions have been superseded.
The Reg EC No 1142/2009 36 introduces the interpretation IFRIC 17 "Distribution to shareholders
non-cash "to provide clarification and guidance
on the accounting treatment for the distribution of these activities such as, for
example, tangible assets or ownership interests in other entities.
The Reg EC No 1164/2009 37 introduces the interpretation IFRIC 18 "Transfers of Assets by
of customers "whose goal is to provide clarification and guidance on the
accounting for sales of tangible items that companies receive from
customers and to be used to connect the customer to a network or for
ensure regular access to the supply of goods and services. The principle provides
guidelines to determine if they meet the definition of elements and activities where such
definition is met, such activities should be assessed.
The Reg EC No 1165/2009 38, amend the provisions of IFRS 7 "Financial Instruments:
Disclosures' and IFRS 4 "Insurance Contracts" introduces the need to provide
details information on the measurement of fair value and risk
liquidity on the securities.
In particular, the Regulation in question introduces disclosure requirements relating to the cd
"Hierarchy of fair value of financial instruments, whose purpose is to reflect the
relevance of the data used in making assessments. The hierarchy of fair value is
consists of the following levels:
        ·    Level 1 - quoted prices (unadjusted) in active markets for assets or liabilities
             identical;
        ·    Level 2 - data input other than quoted prices in Level 1 that are
             observed for the amount or liability, either directly (as in price) and
             indirectly (ie, derived from prices);
        ·    Level 3 - input data for asset or liability that are not based on data
             market observable (unobservable inputs).
The Reg EC No 1171/2009 39 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
hybrid financial asset is reclassified out of the category of financial assets
held for trading with the impact of changes in value in the income statement. The
new provisions require that, if at the time of reclassification of the entity is not able to
evaluate separately the embedded derivative should be separated, the reclassification
is not allowed and the hybrid contract continues to be ranked among the "activities
a. Investments held for trading.
The Reg EC No 1293/2009 40, which introduces an amendment to IAS 32 "Financial Instruments:
Presentation "in order to clarify how to account for certain rights when
instruments issued 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 value
determined, denominated in any currency, is an equity instrument if the entity
offers the right pro rata to all shareholders of the same class of equity
own.
Previous forecasts have led to classify as liabilities (derivative), and
as equity, that right is denominated in a currency other than the functional currency because the
classification did not reflect the ratio of 'fixed against fixed "(because of fluctuations in the
exchange rate) required for classification in the capital.

35   From the mandatory adoption               2010.
36
     From the mandatory adoption               2010.
Adopted from the mandatory 37                  2010.
Adopted from the mandatory 38                  2009.
Adopted from the mandatory 39                  2009.
40
     Mandatory adoption of budget year 2011.

96
A.2 - The Main budget items
Here are, for the main budgetary aggregates, the criteria for inclusion,
classification, assessment and cleanup.



Financial 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 - FVTPL), and registered under "Financial assets 20
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 revolt
        obtaining a profit in the short term;
        a derivative (except for a derivative that is designated and effective tool
        coverage - see the next special section).

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, price
        a financial instrument, the price of a commodity, currency exchange rate
        Foreign, 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
        less than would be required for other types of contracts that would be expected
        a similar response to changes in market factors;
        is set at a future date.

The Bank holds derivative financial instruments for trading purposes and for purposes
coverage (see them at the next special section). All derivatives
trading are recognized in the industry to an initial value equal to fair value, which
generally coincides with the cost. Subsequently, the derivatives are measured at fair
value, equal to the value that the Bank would pay or receive to terminate in the event, the
time of evaluation, the derivative contract. Any change in fair value is found
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 an instrument
hybrid (combined) instrument that also includes a non-derivative host contract, with the effect that
some of the cash flows of the combined instrument vary in a way similar to
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 contract
        Primary;
        a separate instrument              with the same terms as the embedded derivative
        meet the definition of derivative;
        the hybrid (combined) is not shown as assets or financial liabilities
        HELD FOR TRADING.

                                                                                                       97
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
members at the time of regulation, whether debt or equity, or the date of
subscription, 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 "80
Net trading income. 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 below
described.

Methods of determining the fair value
Titles: listed and unlisted
In the case of securities listed on active markets, the determination of fair value is based on
Quoting the relevant market (ie that which occurs on the largest volume of
trading) may be drawn from international providers and found the last day of reference
year or period. A market is defined as active if the prices
reflect normal market operations, are readily and regularly available and
express the price of actual and regularly occurring market.
In the case of unlisted securities, fair value is determined using valuation techniques
aiming at determining the price that the instrument would have had to date
evaluation in a free exchange motivated by normal business considerations. La
The fair value is obtained through the application of common methodologies to
level of international markets and internal valuation. In particular, for bonds
unlisted apply models of discounting expected future cash flows -
using structures of interest rates that appropriately take into account the
sector of the issuer and rating class, if available - and
option pricing models. For equity prices are used may be drawn from
comparable transactions, market multiples of comparable companies directly, and the
type of asset valuation models, and mixed income.

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
discounting future cash flows that also ponder the credit risk associated
the financial instrument. In the case of derivative transactions with institutional counterparties, in
account of netting agreements (cd CSA) aimed at mitigating risk
credit, it is considered that this risk could be considered virtually nil.

Cancellation Policy
The "financial assets and liabilities held for trading" are derecognised
expire when the contractual rights to cash flows from the asset or liability
or when the financial asset or financial liability is transferred to transfer substantial
of all the risks and rewards incidental to ownership of them. The result of the sale of
assets or financial liabilities held for trading is recognized in the income statement
in "80 Net trading".




98
Financial assets available for sale
Definition
We define available for sale (cd Available for Sale - AFS) those activities
non-financial derivatives that are designated as such or are not classified as:
    (1) credit and financing (see next paragraph);
    (2) financial assets held to maturity (see next paragraph);
    (3) financial assets held for trading and measured at fair value through
          Income Statement (see previous paragraph).

These financial assets are recorded under "Financial assets available-for-40
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
time of settlement, to a value equal to fair value which generally coincides with the
their cost. This figure includes the costs or revenues directly related to
instruments themselves.
The inclusion of financial assets available for sale may also result from
reclassification by the sector "Financial assets held to maturity" or just
and only in rare circumstances and in any case only if the activity is no longer owned
the purpose of selling or repurchasing in the short, the segment "Financial assets held for
negotiation "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 fair value recognized in the income share
interests (such as resulting from the amortized cost) and recognized in the
equity under "Revaluation reserves 130" and changes in fair value, with
except for impairment losses, until the financial asset is
eliminated, when the overall gain or loss previously recognized in
equity shall be recognized in the income statement. Equity securities for which there may
be defined reliably the fair value, according to the methods shown are
recorded at cost.

At each annual or interim audit is carried out
existence of objective evidence of impairment, in the case of equity securities, it
also consider 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 share is lower
by more than 35% compared to historical cost. In this case we shall, without further
analysis, accounting impairment in the income statement. In the case of reduction
of less value to account for the impairment only if the assessment of the security
on the basis of its fundamental soundness of the company or not confirm the
its profit outlook.
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
purchase for a period exceeding 18 months: in that case the accounting
impairment in the income statement without further analysis. In the case of permanent
ongoing 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
also 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.




                                                                                              99
In the presence of impairment, the cumulative variation, including the previously
Shareholders registered in the aforesaid item is recognized directly in income statement
item "130 losses / recoveries on impairment of b) financial assets
available for sale.
The impairment loss is recorded when the acquisition cost (net of
any repayment of capital and depreciation) of a financial asset available for
sale 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 accounted for as:
          if they refer to investments in equity instruments with a direct exchange reserve
          equity;
          if they refer to investments in debt instruments, are recorded in the income
          Statement under "130 losses / recoveries on impairment of b)
          fianancial assets available-for-sale .

In any case, the strength of the recovery of value can not exceed the amortized cost that 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 relations
half-yearly, resulting in identification of an "interim period" a year the
any reductions in value are recorded in the historicized 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
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
incidental to ownership of the asset. The result of the sale of financial assets
Available for sale is charged to the income statement under "100 Gains (losses)
sale and repurchase of b) financial assets available for sale. " On the occasion of
cancellation shall also zeroing against income, to the extent
possibly corresponding to what was previously charged in reserve assets
130 Revaluation reserves: breakdown.



Credits and Loans
Definition
Loans and receivables are defined as (cd Loans and Receivables - L & R) activities
Non-derivative financial, with fixed or determinable payments that are not listed
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 the time of
           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 investment
           early for reasons other than deterioration of credit, in which case they are classified
           AVAILABLE FOR SALE.

The Loans and receivables are recorded under "60 Due to banks" and "Loans to 70
Customers.
The Bank includes loans between loans to customers and banks, both paid
directly or purchased from third parties also fall into this category trade credits,
the repurchase, receivables arising from financial leasing and
factoring and postal savings.



100
Criteria for inclusion
The loans and receivables are recognized initially when the company becomes part
of a loan agreement that is when the creditor acquires the right to payment
of the amounts contractually agreed. That date is the date of delivery
funding.
Membership in this category may also result from reclassification of the Fund 'Activities
Available for sale "or, only in rare circumstances and only if
activity is no longer held for the purpose of selling or repurchasing in the short, the 'Activities
a. Investments held for trading.
The initial carrying value is equal to the fair value of financial instrument that is
amount disbursed, including the costs and revenues directly attributable to
itself and determinable from the outset, regardless of when they are
cleared. Not included in the initial carrying value of all charges which are the subject of
repayment by the debtor or counterparty which are based on internal costs
administrative in nature.
If the registration resulting from reclassification, the fair value of the activity detected when
the transfer is taken 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
these circumstances, the difference between the fair value so determined and the amount paid is charged
directly 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
Specifically, the sales transactions in cash and repurchase agreements are recorded in
balance sheet as debt for the amount received spot, while the reverse repo
ready and reverse repo transactions are recorded as a credit for the amount paid spot.

Evaluation criteria
The loans and receivables are measured at amortized cost using the effective
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 over
any difference between the initial amount and the maturity amount and minus any reduction (in
Following a reduction of value or recoverable).
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 sharing
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
financial instruments. In the determination of the effective interest rate is
necessary to evaluate cash flows considering all contractual terms
financial instrument (for example, the prepayment option to purchase or
like), but not to be considered for future losses on loans. The calculation includes all fees and
points paid or received between parties to a contract that are an integral part of the rate 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 undergone a
impairment. This circumstance occurs when it is foreseeable that the company is not in
able to collect the amount due, according to the contractual terms
that is, for example, in the presence of:
    a) significant financial difficulty of the issuer or obligor;
    b) a breach of contract, such a default or non-payment
         of interest or principal;
    c) the fact that funding for economic or legal reasons relating to difficulties
         financial beneficiary, the beneficiary of a concession that extends the
         lender would not otherwise consider;
    d) the likelihood that the recipient state financial reorganization;


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      e) the disappearance of an active market for that financial asset because of difficulties
           financial;
      f) of observable data indicating that there is a decrease in the future
           estimated cash flows for a group of similar financial assets from the moment
           initial recognition of those assets, although the decrease can not be
           still identified with the individual financial assets in the Group.

The evaluation of non-performing loans (loans that, according to the definitions attributed
Bank of Italy, are in a state of distress, substandard, restructured and past due exposures
including exposures from 90 to 180 days overdrawn secured by real estate) is the second
analytical mode. The evaluation of the remaining credits shall be according to technical collective
by grouping together similar classes of risk.

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

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

Value adjustments on performing loans are estimated by taking measures for banks
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
calculated on the basis of historical series on the aggregate total of the network banks. This
method on the one hand guarantees a correct representation of the likelihood of
Credit inherent in the loan portfolio, it does not yet adequately reflect the
specificity of individual network banks. Indeed in the current cost of the UBI
credit quality and default rates are still above a homogeneous
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 attribution methodology is adopted adjustments
overall value of the banks about the sub-network, based on different individual
represented by the series of losses and decay rates.

The collective mode is also applied to the country risk exposures that
unsecured loans to residents of countries with service difficulties
Debt securities. Such claims do not include impaired loans for which you apply the
analytical assessment mentioned above.

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




102
Methods of determining the fair value
The fair value of loans and is determined by considering the future cash flows,
replacement rate that is discounted to the market rate at the date of
assessment on a position with similar characteristics to the subject of credit
 on valuation. 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
cash flows arising from the same or when these assets are sold with
transfer substantially all the risks and benefits of ownership. If
Instead the credit and financing 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 retains the right
contract to receive cash flows from the same, but assume the same
the 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) in case that
risk should actually occur.

The Bank shall put the following hedging relationships that are consistent
accounting treatment, and are illustrated below:
        Fair value hedge: the aim is to counteract adverse changes in the fair value
        asset or liability being hedged;
        Cash Flow Hedge: The objective is to counteract adverse changes in the flow
        financial asset or liability being hedged.

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
members and subsequently measured at fair value and are classified under the budget item of
active asset "80 Derivatives hedging and balance sheet liabilities" 60 derivatives
hedging .

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
        hedging relationship, the objectives of the companies in risk management and
        strategy for undertaking the hedge. This documentation includes identification
        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 or cash flows of the hedged
        Financial attributable to the hedged risk;
        coverage is expected to be highly effective;




                                                                                                       103
          the hedged forecast transaction, for cash flow hedges,
          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 coverage was
          designated.

Methodology of test effectiveness
The hedging relationship is deemed effective, and as such is consistent representation
accounts where the beginning and during his life changes in the fair value or cash flows
the hedged item, related to the hedged risk, are almost completely
offset by changes in fair value or cash flows of the hedging derivative.
This conclusion is reached when the actual result lies within a
range between 80% and 125%.
Assessing the effectiveness of the cover is at an early stage through the execution of the test
Point and at the time of preparing the annual budget through the implementation of
backtesting; the outcome of this test justifies the application of accounting
coverage as it demonstrates its effectiveness pending.
On a monthly basis is also conducted testing on a cumulative basis that
aims to measure the degree of effectiveness of the coverage achieved during the
reference and then verify that in the period the hedging relationship has been
actually effective.
Derivative financial instruments that are considered in terms of coverage
economic, but that does not meet the requirements to be considered effective tools
hedge, are recorded in "20 Financial assets held for trading"
or "40 Financial liabilities held for trading and economic effects in
corresponding entry "80 Net income from trading."
For a description of the methods used in calculating the fair value of derivatives can be found at
As written in "financial assets and liabilities held for trading".

Evaluation criteria
Related to fair value hedge
The fair value hedges are recorded as follows:
          the gain or loss resulting from the measurement of the hedging instrument at fair
          value is entered in the income statement under "Net result 90
          hedging ;
          the gain or loss on the hedged item attributable to the hedged risk adjusts the
          book value of the hedged item and is recognized immediately, regardless
          by category of asset or liability being hedged, in the Income Statement
          the item 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
           such;
      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
coverage has become ineffective is recorded in the income statement using the equity method
effective interest rate applicable at the time of lifting of the cover.
The methods used in the determination of the fair value of the hedged risk in
hedged asset or liability are described in the paragraphs of commentaries on the
Investments available for sale, loans and receivables.




104
Cash flow hedges
When a derivative financial instrument is designated to hedge the variability of
expected cash flows from an asset or liability recorded in the financial statements or transaction
considered highly probable future, the hedge accounting is in
follows:
        gains or losses (the assessment of the hedging derivative) linked to the
        effective hedges are recorded in the equity reserve
        called "130 Revaluation reserves";
        gains or losses (the assessment of the hedging derivative) linked to the
        hedge ineffectiveness are recorded directly in the income statement under
        90 Hedging gains/losses;
        the asset or liability being hedged is valued according to the criteria of class
        membership.

If a future transaction occurs resulting in the inclusion of an asset or liability is not
funding, the corresponding gains or losses initially recognized in "130 reserves
assessment "shall be transferred from this reserve and the same defendants as the initial cost
asset or liability covered by the survey. If the transaction subject to future
coverage lead after the entry of a financial asset or liability, the
gains or losses associated with that were initially recognized directly in "130
Revaluation reserves "are reclassified to the income statement in the same or in
periods during which the assets acquired and liabilities assumed has an effect on the income
Statement. If some of the profits or losses allocated to these concerns is not
considered recoverable, is reclassified to the income statement under "Net 80
on trading. "

In all cases other than those described above, the gains or losses initially
defendants in "130 Revaluation reserves" are written off and charged to the income
With the same economic terms and the same dates by which the future transaction
affects the income statement.

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

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

                                                                                                     105
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 for the same subdivision
         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 activities
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
change in value of macro-hedged financial assets – Item 90”
changes in fair value of portfolio hedged items .
Changes in fair value recorded on the hedging instrument are recognized in the income
Statement under "Net income from hedging in 1990 and in the Balance Sheet
active in "80 derivatives as hedging or heading of the balance sheet liability
60 Hedging derivatives.



Equity 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, the
administrative and management decisions of the company so they can get their benefits. To
determining the presence of control, and assess the presence of potential voting rights
exercisable immediately. Investments in subsidiaries are included in the budget
the date on which 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 on which the
participant exerts significant influence and which is neither a subsidiary nor a subsidiary
joint for the participant. Significant influence is the power to participate in
determination of financial and operating policies of the investee but is not
control or joint control. Investments in associates are accounted for using the
the equity method.

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

Recognition and evaluation
The item includes investments in companies directly controlled by and / or affiliates, as well as
Minority interests in subsidiaries and / or connected to / from other companies
belonging to the Group, entered in the balance sheet at cost.
If there is evidence that the value of an investment may be impaired, you
shall estimate the recoverable amount of the investment, taking into account the


106
present value of future cash flows that may be generated, including
value of ultimate disposal. Where the recoverable amount is
less than book value, the difference, if considered of a permanent character, is recognized in
Income statement. If the reasons for impairment cease to exist following a
event occurring after the recognition of impairment are
Shoot value recognized in the income statement, as far as the historical cost
purchase.

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



Tangible assets
Operating assets
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 time period.

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

Activities are included among the materials (used in the business and held for
investment), even those registered as a result of financial leasing contracts, although the
legal ownership 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 Activities Materials"), including all the costs directly associated with
operation of the property, and taxes and fees non-refundable purchase. This value
and then increase the costs incurred which are expected to enjoy
future benefits. The maintenance costs are recognized as an activity carried out
Statement when they occur against the costs of maintenance
amazing (better) from which future economic benefits are capitalized to
increase in the value of the related assets.
Improvements and incremental expenses incurred on leasehold from whom some
future benefits are recognized:
        if equipped with self-identifiability and separability in "110 Activities
        materials ", in the most appropriate category, whether they relate to third-party assets used in
        under a lease that property held under a contract
        finance lease;
        if not equipped with self-identifiability and separability in "110 Activities
        materials, "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 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.




                                                                                                    107
Evaluation criteria
Subsequent to initial recognition, property and equipment are recorded at instrumental
cost, as defined above, net of accumulated amortization and any impairment loss
cumulative value. The depreciable amount, equal to the cost less the residual value (ie
the amount would normally be expected from the disposal, after deducting the expected costs
disposal if the asset were already in the conditions, including old age, provided at the end
of its useful life), is distributed systematically over the useful life of material
by adopting as a criterion for a straight-line depreciation method. The useful life, subject
periodically reviewed to detect any estimates differ significantly from
earlier, is defined as:
        the period of time in which it is expected that the activity is used by
        or,
        the number of production or similar units that the company expects to obtain
        from the asset itself.

In view of the fact that tangible assets can cover
components of different useful lives, land, whether alone or included in the value of
property is not subject to depreciation as assets which it is associated
indefinite useful life. The spin-off of the value attributable to the land from the total value
the property is, for all buildings in proportion to the percentage of ownership. I
buildings are depreciated against the above criteria.
Works of art are not subject to amortization because their value is generally
will 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 at the time corresponding to the earliest date
newly established one in which the asset is classified for sale and the date of elimination
accounting. Therefore, depreciation does not cease when the asset becomes idle
or 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 goods used in
        under a lease, as the shorter period from that in which the
        improvements and expenditures can be used and the residual duration of the
        location taking into account any individual renewal, or in the case of
        property used under a finance lease, according to the useful life
        expectation of which they relate.

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

At each annual or interim financial statements are checked for the possible
there are indications that demonstrate the value of the depreciation of an asset. The loss
By comparison between the carrying value of the tangible and the least value
recovery. The latter is the greater of fair value, net of any costs
sell and its value in use ie the present value of future cash flows from
income from. The loss is recorded immediately in the income statement under "170
Impairment / write-backs on property and equipment "is a residual even
any subsequent recovery in value if the reasons giving rise to the
previous devaluation.

Definition and determination of fair value
Properties
The fair value is determined by reference to market value defined as the best
price at which the sale of a property can reasonably be regarded as
unconditionally closed against monetary compensation to the date of assessment
assuming:

108
        the seller and buyer are independent parties;
        that the vendor has the intention to dispose of real property;
        that there is a reasonable period of time (considering the type of asset and
        market situation) to make a proper marketing, agree
        Pricing and conditions necessary to complete the sale;
        the market trends, the level of value and other economic conditions on the date of
        conclusion of the preliminary purchase agreement are identical to those existing
        the date of valuation;
        that any offers from buyers for whom the property has
        characteristics that it considered "off-market" are not taken into
        consideration.

The methods used for determining the market value refer to
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 in the same market or
        squares on competition;
        earnings method based on the present value of the income potential of a market
        similar property, obtained by capitalizing the income at a market rate.

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

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

Tangible assets acquired under finance leases
A finance lease is a contract that transfers substantially all the risks and benefits
arising from the ownership of the property. The right to property can be transferred or not
term of the contract.

The commencement of the lease is the date from which the lessee is entitled
the exercise of his right to use the leased asset and therefore corresponds to the date of
initial recognition of the lease.
At the time of commencement of the contract, the tenant leases Notes
as financial assets and liabilities on its balance sheet at amounts equal to fair value of the asset
leased property or, if lower, the present value of minimum lease payments. In determining the value
current minimum lease payments the discount rate used is the rate of
implicit contractual interest, if determinable, otherwise rate is used
interest 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. I
first are allocated over the contract period to determine a rate
constant interest on the residual liability.
The finance lease results in the recognition of the depreciation of
activities under contract and financial burdens for each year. The criterion
used for depreciation of leased assets is consistent with that for the
immovable property referred to in 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 to benefit
economic future. Any gains or losses arising from the retirement or
from the disposal of the material, the difference between the estimated net

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and transfer the asset, are recognized in the income statement under "240
Profit (loss) from 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 such
          rights are transferable or separable from other rights and obligations.

The activity is characterized by the fact of being controlled by a result
of past events and the assumption that through its use economic benefits
company. The Bank controls an asset if it has the power to enjoy the benefits
future economic benefits arising from the resource and can also restrict access to these
benefits from third parties.
The future economic benefits flowing from an intangible asset may include revenue
from the sale of products or services, cost savings or other benefits
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
           activity;
      b) the cost can be measured reliably.

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

The Bank considers intangible assets goodwill.

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 is expected to produce the related economic benefits.

Intangible assets with indefinite useful lives
It 'called an indefinite useful life activity that is not possible to estimate a maximum expected
the period during which it is expected that the activities generate economic benefits for the company.
The award of an indefinite useful life of the asset does not arise from having pre-programmed costs
future that over time should be to restore the level of performance standards
activity, prolonging 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 entered in the
cost and any subsequent expenditure is capitalized only if the initial registration can
generate future economic benefits and if those costs can be determined and
attributed to the asset reliably.
The cost of an intangible asset includes:




110
        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 life are
stated at cost less depreciation and impairment losses totaling
may have occurred. Depreciation is calculated on a systematic basis over the best
estimated useful life (see definition included in the section "Activities
Materials ") using the straight-line method of distribution.

The depreciation process begins when the asset is available for use and ceases at the time
when the asset is derecognised.

Intangible assets with indefinite useful lives (see start-up, as defined in
the next paragraph if positive) are stated at cost less any losses
value regularly observed in the application of the tests conducted to verify
the adequacy of the carrying value of the asset (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 a project
inside) is the subject of detection. Expenditure on research (or research phase of a project
internal) is recognized as an expense when incurred.

An intangible asset arising from development (or from the development phase of a project
internal) is recognized if, and only if, it can be shown that:
    a) the technical feasibility of completing the intangible asset so that it is available
         for use or sale;
    b) the company's intention to complete the intangible asset and use or sell;
    c) the company's ability to use or sell the intangible asset.

At each annual or interim financial statements is to determine whether there
of any impairment losses on intangible assets. These losses result from
difference between the carrying value of assets and the recoverable amount and are recorded as
any write-backs, in "180 Impairment / write-backs on
assets "to the exclusion of impairment losses on goodwill that are carried
in "230 Impairment of goodwill."

Goodwill
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 is the union of
companies or businesses into one company required to prepare financial statements. The
result of almost all business combinations is the fact that a single undertaking,
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 are not
a business, it allocates the cost of the assembly to the individual assets and liabilities
identified based on their fair value at the acquisition date.
A business combination may result in a bond between parent and participatory
subsidiary in which the buyer is a subsidiary of the parent and the acquis
purchaser.

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



                                                                                                   111
      c) allocating, at the acquisition date, the cost of the business to
           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 purchaser in
         exchange for control of;
    b) 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
them.
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) recognizes the goodwill acquired in a business combination as assets;
      b) measure that goodwill at its cost, as is the excess of the cost
           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
buyer in anticipation of future economic benefits from assets that are not
can be individually identified and separately recognized.
After initial recognition, the purchaser shall evaluate the goodwill acquired in a
company 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
may have suffered an impairment, as described above in principle
accounting.
The principle states that an asset (including goodwill) has been reduced to
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 generating units
cash flows, or groups of units, subject to the constraint that maximum aggregate
can not exceed the segment identified in accordance with 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,
Buyer:
      a) reassess the identification and measurement of assets, liabilities and contingent liabilities
           identifiable and measuring the cost of;
      b) recognizes immediately in profit or loss any excess remaining after the
           measurements.

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.




112
Loans, securities in circulation (and subordinated debt)
The various forms of interbank and customers are represented in the voices of
Budget "10 Due to banks", "20 Due to customers", "30 Securities issued. In
These items are also included members from the tenant under a debt operations
finance lease.

Criteria for inclusion
The liabilities in question are recorded in the corresponding moment when
receipt of the sums collected or issuing debt securities. The value to which they are registered
is equal to its fair value inclusive of any costs / income
directly attributable to the transaction and determined from the outset, regardless of
by the time they are cleared. Not included in the initial carrying value of all
charges that are reimbursed by the creditor or who are
due to internal administrative costs.

Evaluation criteria
After initial recognition financial liabilities are measured at amortized cost
using the effective interest rate method as defined in paragraphs
FROM PREVIOUS YEAR.

Cancellation Policy
Financial liabilities are derecognised when settled or expired.
The repurchase of securities in issue leads to the cancellation of the same book with
consequent redefinition of the debt securities issued. Any difference between the
repurchase value of its securities and the corresponding amount of the liability is
recorded in the income statement under "100 Income (loss) on disposal or repurchase of d)
financial liabilities. Any subsequent relocation of its securities, subject to
cancel previous accounting is, reversed, with a new issue
subsequent enrollment in 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 "Activities 130
tax "and" 80 Tax liabilities. "

Current tax assets and liabilities
Current tax for current and prior periods, to the extent that they are 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 tax authorities
using the tax rates and tax laws in force.
Current tax assets and liabilities are cleared in the period in which the activities
are realized or liabilities are settled.

Deferred tax assets and liabilities
For all taxable temporary differences is recorded a deferred tax liability, unless
that 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:
         is not a business combination and
         at the time of the transaction affects neither accounting nor income
            tax.



                                                                                                   113
Deferred taxes are not calculated in relation to higher asset values in suspension
tax relating to contributions and reserves tax suspension as it is believed,
state, that there is 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 and deferred tax asset if it is detected
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:
         not a business combination and
         at the time of the transaction affects neither accounting profit nor income
             tax.

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

Deferred tax assets and deferred tax liabilities are subject to constant
monitoring which are quantified according to the tax rates that are expected to
applicable to the period when the asset is realized or the liability is settled tax
tax, taking account of tax law resulting from the measures currently in
force.

Deferred tax assets and deferred tax liabilities are cleared in the year
where:
        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 nor
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
        totally under 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 be necessary to use
            financial resources;
         the amount of the obligation can not be determined with sufficient
            reliability.

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

Recognition and evaluation
A provision is recognized in the accounts if and only if:
        there is a present obligation (legal or constructive) as a result of a past event and



114
              is likely to settle the obligation will be required in the use of
              resources embodying economic benefits, and
              can be a reliable estimate of the amount arising from the discharge
              obligation.

The amount recognized as a provision represents the best estimate of the expenditure required
to settle the present obligation at the date of the balance sheet 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
will be needed to settle the obligation where the effect of the present value is a
important aspect. Future events that may affect the amount required for
settle the obligation are taken into consideration only if there is sufficient evidence
objective that they will occur.

Provisions for risks and charges include the risk arising from any
litigation.

Cancellation Policy
The provision is reversed when it becomes unlikely the use 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 currency
functional by applying to the foreign currency spot exchange rate between the currency
functional and foreign currency transaction date.

Evaluation criteria
At each balance sheet date:
       a) 41 Foreign currency monetary items are translated using the rate of
           closure;
       b) 42 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 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 which had been converted at the time of
initial recognition during the year or in previous financial statements, are recognized in the income
Year in which they originate.
When a gain or loss on a non-monetary item is recognized directly in
equity, any exchange component of that gain or loss is recognized directly
in equity. Conversely, when a gain or loss of a non-
monetary item is recognized in the income statement, each exchange component of that gain or
loss is recognized in the income statement.




41 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 an element
Money is therefore entitled to receive or an obligation to pay a fixed or determinable number of units
currency.
42 See, on the contrary, the references to the items "monetary".


                                                                                                           115
Other information
- Provisions for guarantees and commitments
Provisions on individual and collective basis to estimate the potential payments
related to the assumption of credit risk inherent in the guarantees given and commitments
made in pursuance thereof shall be determined by reference to criteria set
loans.
These provisions are recorded under item 100 "Other liabilities" in contra to
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
          employment and compensation benefits of participation in the
          capital) due wholly within twelve months after the end of the period in which the
          employees have rendered the work;
          Post-employment benefits due after the conclusion of the report
          work;
          benefit plans after the end of the employment agreements that
          whereby the company provides benefits after termination of employment;
          long-term benefits, other than the above, due wholly within twelve
          months after the term of the year in which the employees have done the work
          relative.

Provision for employee severance pay
Criteria for inclusion
The indemnities entered is regarded as a benefit plan
defined 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 reporting date
           reports and Accounts;
      b) plus any actuarial gains (less any actuarial losses) recognized in
           special reserve in equity;
      c) minus any pension charges relating to past service is not
           yet recognized;
      d) minus the fair value at 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
recognized directly in equity valuation reserves between these components.
The "Actuarial gains / losses" include the effect of adjustments resulting from
reformulation of the previous actuarial assumptions as a result of actual experiences or because of
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
TFR measured as each unit separately to build up the final obligation. This
additional unit is obtained by dividing the total expected performance for number of years
elapsed from the time of the expected date of liquidation. The application of
This method involves the projection of future payments based on historical analysis


116
statistics and the demographic curve and updating of such financial flows on the basis of
interest rate market. The rate used for discounting purposes is determined
as the average interest rate swap bid and ask at the reference date of the assessment
suitably interpolated for intermediate maturities.

Profit (Loss)
Definition
Revenues are gross inflow of economic benefits arising from the performance of
ordinary enterprise when those inflows result in increases in equity
other than increases caused by the contribution of the shareholders.

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

The result of a service provision can be reliably estimated
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 may be incurred to complete
         be measured reliably.

Revenues recorded against the provision of services are recognized consistent with the phase
complete.
Revenue is recognized when it is probable that the economic benefits
transaction will flow to the Bank. However, when the collectability of an amount already
falls in revenue is characterized by uncertainty, the uncollectable amount, or value whose
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 of the transaction will flow
         enterprise;
         the amount of revenue can be reliably measured.

Interest is recognized on an accrual basis that considers the actual performance of
well. 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 to
         maturity.
         interest payments are recorded in item 10 "Interest income and
         similar "to the party deemed recoverable.

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

Costs or revenues from the sale of securities, as determined by
difference between the consideration paid or received in the transaction and the fair value of
instrument are recognized in income upon registration of the financial instrument
only because the fair value is determined by:
         by reference to observable current market transactions in the same
         instrument;
         using valuation techniques that use such variables, only data
         from observable markets.

                                                                                                      117
- Costs
Costs are recognized for accounting purposes when they are incurred in accordance with the policy
the correlation between costs and revenues that result directly and jointly by
the same transactions or events. Costs that can not be associated revenues are recognized
immediately in the income statement.
Costs directly attributable to financial instruments measured at amortized cost and
determinable from the outset, regardless of when they are cleared,
flock to the income statement by applying the effective interest rate for the
definition of which can be found under "Loans and receivables".
Impairment losses are recognized in the income statement when they are discovered.




118
A.3 - Information on fair value

A.3.1 Transfers between portfolios
There were no reclassifications portfolio of financial assets from categories
measured at fair value to amortized cost categories.


A.3.2 Hierarchy of fair value
The fair value used for the evaluation of financial instruments is determined on
basis of the criteria set out below hierarchy, taking the use of input
cd observable or unobservable.
The inputs are observable parameters developed based on available data and market
reflect the assumptions market participants would use when the price that
financial instrument, otherwise unobservable inputs are parameters for which no
available market data and are then developed based on best
available information on the assumptions that market participants should
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
financial instruments to which the entity can be accessed at the valuation date of the instrument. The
market is defined as active when prices expressed reflecting normal market transactions,
are regularly and readily available, and whether those prices represent actual and
regular 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. La
assessment of the financial instrument is based on prices can be derived from quotes
similar assets or by market valuation techniques for which all the factors
significant - credit spreads and liquidity - are the result observed on the
market. 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
unlisted instruments through the use of significant input from the market and not deducible
therefore involve the adoption of estimates and assumptions by management.




                                                                                                   119
A.3.2.1 Portfolio accounting: breakdown levels of the fair value


                                                                                             31/12/2009                                                           31/12/2008

     Financial assets / liabilities measured at fair value

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


1. Financial assets held for trading                                                     -              50.459                         -                      -              84.305                  -

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

3. Financial assets available for sale                                          21.281                           -                 2                    495                           -              -

4. Hedging derivatives                                                                   -          144.697                            -                      -          350.589                     -

                                                             Total          21.281                 195.156                         2                    495              434.894                     -

1. Financial liabilities designated at fair value                                        -              49.729                         -                      -              83.650                  -

2. Financial liabilities designated at fair value                                        -                       -                     -                      -                       -              -

3. Hedging derivatives                                                                   -              72.755                         -                      -              79.295                  -

                                                             Total                       -         122.484                             -                      -          162.945                     -




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

                                                                                                                     FINANCIAL ASSETS



                                                                     Held for                                                              Available for
                                                                                                    valued at fair value                                                              hedging
                                                                      trading                                                                    sale


1. Opening balance                                                                             -                                   -                                 -                               -
2. Increases                                                                                   -                                   -                                2                                -
2.1. Purchases                                                                                 -                                   -                                2                                -
2.2. Net profit attributed to:                                                                 -                                   -                                 -                               -
2.2.1. Income statement                                                                        -                                   -                                 -                               -
        - Including capital gains                                                              -                                   -                                 -                               -
2.2.2. Shareholders' equity                                                     X                                    X                                               -                               -
2.3. Transfers from other levels                                                               -                                   -                                 -                               -
2.4. Other increases                                                                           -                                   -                                 -                               -
3. Decreases                                                                                   -                                   -                                 -                               -
3.1.Vendite                                                                                    -                                   -                                 -                               -
3.2. Reimbursement                                                                             -                                   -                                 -                               -
3.3. Losses charged to:                                                                        -                                   -                                 -                               -
3.3.1. Income statement                                                                        -                                   -                                 -                               -
        - Of which depreciation                                                                -                                   -                                 -                               -
3.3.2. Shareholders' equity                                                     X                                    X                                               -                               -
3.4. Transfers to other levels                                                                 -                                   -                                 -                               -
3.5. Other decreases                                                                           -                                   -                                 -                               -
4. Closing balance                                                                             -                                   -                                2                                -




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"
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
emerging at the time of first registration of a financial instrument and not recognized
immediately to the income statement in accordance with the provisions of paragraphs AG76 and AG76A
IAS 39.
Where you should submit the case to be referred to the accounting policies
adopted by the Bank to be charged 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 put in place operations which emerges at the time of first registration of


120
a financial instrument, the difference between the transaction price and the value of
instrument obtained through a technique of internal evaluation.




                                                                                        121
Part B – Notes to the Balance sheet
ASSETS

Section 1        Cash and cash equivalents - Item 10-

1.1 Cash and cash balances: breakdown



                                              31/12/2009       31/12/2008

a) Cash                                             112.986           134.156
b) Unrestricted deposits with Central Banks                -                -
Total                                               112.986          134.156




122
Section 2                   Section 2 - Financial assets held for trading - Item 20-
2.1 Financial assets held for trading: product breakdown


                                                        31/12/2009                                   31/12/2008
                 Line items/ Amounts
                                          Level 1        Level 2         Level 3       Level 1        Level 2         Level 3

A. Cash equivalents
1. Debt securities                                  -                -             -             -                -              -
  1.1 Structured securities                         -                -             -             -                -              -
  1.2 Other debt securities                         -                -             -             -                -              -
1. Equity securities                                -                -             -             -                -              -
3. Units in UCITS                                   -                -             -             -                -              -
4. Loans                                            -                -             -             -                -              -
  4.1. Repurchase agreements                        -                -             -             -                -              -
  4.2 Other                                         -                -             -             -                -              -
Total A                                             -                -             -             -                -              -
B. Derivatives
1. Financial derivatives:                           -        50.459                -             -        84.305                 -
  1.1 trading                                       -        48.426                -             -        82.546                 -
  1.2 associated with fair value option             -                -             -             -                -              -
  1.3 other                                         -          2.033               -             -          1.759                -
2. Credit derivatives:                              -                -             -             -                -              -
  2.1 trading                                       -                -             -             -                -              -
  2.2 related to fair value option                  -                -             -             -                -              -
  2.3 other                                         -                -             -             -                -              -
Total B                                             -        50.459                -             -        84.305                 -
Total A+B                                           -        50.459                -             -        84.305                 -




                                                                                                                                123
2.2    Financial assets                held        for    la    trading:           breakdown            for
       debtors / issuers




                      Line items/                        31/12/2009                    31/12/2008
                      Amounts



A. BALANCE SHEET ASSETS
                                                                               -                             -
Debt securities:
                                                                               -                             -
  a) Governments and Central Banks
                                                                               -                             -
  b) Other public-sector entities
                                                                               -                             -
  c) Banks
                                                                               -                             -
  d) Other issuers
                                                                               -                             -
2. Equities
                                                                               -                             -
  a) Banks
                                                                               -                             -
  b) Other issuers:
                                                                               -                             -
      INSURANCE COMPANIES
                                                                               -                             -
      - financial companies
                                                                               -                             -
      - non-financial companies
                                                                               -                             -
      - other
                                                                               -                             -
3. UCITS in units
                                                                               -                             -
4. Loans
                                                                               -                             -
  a) Governments and Central Banks
                                                                               -                             -
  b) Other public entities
                                                                               -                             -
  c) Banks
                                                                               -                             -
  d) Other counterparties
                                                                               -                             -
Total A

B. DERIVATIVES

  a) Banks
                                                                       9.655                        35.273
      - fair value

  b) Customers
                                                                      40.804                        49.032
      - fair value
                                                                      50.459                        84.305
Total B
                                     Total (A+B)                      50.459                        84.305




There are no portfolio in equity securities issued by entities that the Bank ranking
suffering or to grounding.




124
2.3 Financial assets held for trading: annual changes


                                     Debt securities         Equity securities         UCITS units       Loans       Total


Opening balance                                          -                         -                 -           -                     -
B. Increases                                  852.535                       348                      -           -       852.883
B.1 Purchases                                 850.745                       329                      -           -           851.074
B.2 Positive changes in fair value                       -                         -                 -           -                     -
B.3 Other increases                              1.790                           19                  -           -             1.809
C. Decreases                                 (852.535)                     (348)                     -           -      (852.883)
C.1 Sales                                    (852.533)                     (319)                     -           -      (852.852)
C.2 Redemptions                                          -                         -                 -           -                     -
C.3 Reduction in fair value                              -                         -                 -           -                     -
Transfers to other portfolios                            -                         -                 -           -                     -
C.5 Other changes                                      (2)                  (29)                     -           -               (31)
D. Closing balance                                       -                         -                 -           -                     -




                                                                                                                                 125
Section 4                     Financial assets available for sale - Item 40-
4.1 Financial assets available for sale: breakdown by product

                                                          31/12/2009                                               31/12/2008
                Items/Amounts
                                          Level 1          Level 2           Level 3           Level 1              Level 2         Level 3

1. Debt securities                              20.591                  -                 -               495                   -             -

  1.1 Structured securities                           -                 -                 -                    -                -             -
  1.2 Other debt securities                     20.591                  -                 -               495                   -             -
2. Equity securities                                690                 -                 2                    -                -             -
  2.1 Valued at fair value                          690                 -                 -                    -                -             -
  2.2 Valued at cost                                  -                 -                 2                    -                -             -
3. Units in UCITS                                     -                 -                 -                    -                -             -
4. Loans                                              -                 -                 -                    -                -             -
                                Total           21.281                  -                 2               495                   -             -




The entry relating to debt consists entirely of government bonds to guarantee seats
for issue of drafts, the increase is due to the purchase of a Certificate of
Treasury Credit for a nominal € 20 million, which occurred in 2009.
The increase in equity was due largely to the subscription by
Bank's equity securities, issued by a counterparty subject to restructuring
the class banking increased residual is related to territorial units of a GAL.


4.2 Financial assets available for sale: breakdown by borrower/issuer



                                Line items/ Amounts                                    31/12/2009                      31/12/2008



Debt securities:                                                                                20.591                               495
    a) Governments and Central Banks                                                             20.591                               495
    b) Other public-sector entities                                                                        -                              -
    c) Banks                                                                                               -                              -
    d) Other issuers                                                                                       -                              -
2. Equities                                                                                          692                                  -
    a) Banks                                                                                               -                              -
    b) Other issuers:                                                                                    692                              -
           INSURANCE COMPANIES                                                                             -                              -
           - financial companies                                                                           -                              -
           - non-financial companies                                                                     692                              -
           - other                                                                                         -                              -
3. UCITS in units                                                                                          -                              -
4. Loans                                                                                                   -                              -
    a) Governments and Central Banks                                                                       -                              -
    b) Other public entities                                                                               -                              -
    c) Banks                                                                                               -                              -
    d) Other entities                                                                                      -                              -
                                                                     Total                      21.283                               495



Equity securities comprise a position gained renewed for a year
nominal value of 824 thousand EUR, due to the acquisition of securities
equity arising from the translation of balance sheet exposures and related write-downs
134 thousand EUR.

126
4.4 Available-for-sale financial assets: annual changes


                                     Debt securities         Equity securities         UCITS units       Loans       Total


Opening balance                                    495                             -                 -           -              495
B. Increases                                   20.096                       826                      -           -           20.922
B.1 Purchases                                   19.800                      826                      -           -           20.626
B.2 Positive changes in fair value                 176                             -                 -           -              176
B.3 Write-backs                                          -                         -                 -           -                    -
  - booked to income statement                           -           X                               -           -                    -
  - booked to shareholders' equity                       -                         -                 -           -                    -
B.4 Transfer from other portfolios                       -                         -                 -           -                    -
B.5 Other changes                                  120                             -                 -           -              120
C. Decreases                                             -                 (134)                     -           -            (134)
C.1 Sales                                                -                         -                 -           -                    -
C.2 Redemptions                                          -                         -                 -           -                    -
C.3 Negative changes in fair value                       -                         -                 -           -                    -
C.4 Write-downs for impairment                           -                 (134)                     -           -             (134)
  - booked to income statement                           -                 (134)                     -           -             (134)
  - booked to shareholders' equity                       -                         -                 -           -                    -
C.5 Transfer to other portfolios                         -                         -                 -           -                    -
C.6 Other changes                                        -                         -                 -           -                    -
D. Closing balance                             20.591                       692                      -           -           21.283




                                                                                                                                127
Section 6                 Loans and receivables with banks - ITEM 60-
6.1 Loans and advances to banks: breakdown by type



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



A. Loans to Central Banks
1. Restricted deposits                                                                                 -                     -
2. Compulsory reserve                                                                                  -                     -

3. Reverse repos                                                                                       -                     -

4. Other                                                                                               -                     -

B. Due from banks

1. Current accounts and unrestricted deposits                                              1.510.589             2.539.328
2. Restricted deposits                                                                     3.770.139             3.057.839

3. Other loans:                                                                              447.358             1.676.003

  3.1 Repurchase agreements                                                                  377.905             1.591.329

  3.2 Finance leases                                                                                   -                     -

  3.3 Other                                                                                   69.453                84.674

4. Debt securities                                                                                     -                     -

  4.1 Structured                                                                                       -                     -

  4.2 Other debt securities                                                                            -                     -
                                                        Total (book value)                 5.728.086             7.273.170
                                                                Total (fair value)         5.728.086             7.273.170




There are no credits to central banks because the Bank was authorized to
fulfilling the minimum reserves indirectly through the parent company.
The item "deposits" includes the deposit from the Parent Company, on such
purpose, for a total of 317,969.4 thousand EUR.

The decrease in the area of current accounts is attributable to the relationship with the parent company
while the increase in the area of deposits, always with the parent company is
mainly due to the adoption of the policy of structural balance, which was introduced from
since 2008, which resulted in the provision of additional deposits.

It is noted that during the year has significantly reduced the volume of ready
Parent to repurchase outstanding, in exchange for a similar reduction in debt
for repurchase agreements with customers. The total average balance of these transactions
remains active for the Bank.

We emphasize that there are no loans to banks in the budget or hedged
due to financial leasing contracts.

There are no exposures to banks deteriorated.

The total credits for the item includes € 119 000 from banks subject to
local optimization.




128
Section 7                        Loans and receivables with customers – Item 70-
7.1 Loans to customers: breakdown by type


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

                                                                                 Performing              Impaired                  Performing            Impaired


1. Current accounts                                                                4.626.321                      339.100            5.593.159                      82.665

2. Reverse Repos                                                                                 -                           -                       -                       -

3. Mortgage loans                                                                 10.749.413                      433.567           10.640.110                  180.587

4. Credit cards and personal loans, including wage assignement loans                    72.227                       8.961             106.252                       8.503

5. Financial leases                                                                              -                           -                       -                       -

6. Factoring                                                                                     -                           -                       -                       -

7. Other transactions                                                              3.562.233                      167.589            3.019.577                      88.218

8. Debt securities                                                                               -                           -                       -                       -

   8.1 Structured securities                                                                     -                           -                       -                       -

   8.2 Other debt securities                                                                     -                           -                       -                       -
                                            Total (book value)                   19.010.194                       949.217          19.359.098                   359.973
                                                      Total (fair value)         19.613.880                       935.650          20.141.886                   354.828




The total of the item includes receivables subject to optimization
land for an amount of € 3.4 million.

The item "loans" contains 1.3323 billion EUR (of which 0.5 million loans)
places to guarantee the issuance of covered bonds, which occurred last December.




7.2 Loans to customers: breakdown by debtor/issuer

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

                                                                           Performing                Impaired                    Performing              Impaired

1. Debt securities                                                                      -                             -                          -                               -

a) Governments                                                                          -                             -                          -                               -
b) Other public entities                                                                -                             -                          -                               -
d) Other issuers                                                                        -                             -                          -                               -
   - non-financial companies                                                            -                             -                          -                               -
   - financial companies                                                                -                             -                          -                               -
   – insurance companies                                                                -                             -                          -                               -
   - other                                                                              -                             -                          -                               -
  2. Loans to:                                                                19.010.194                        949.217             19.359.098                      359.973
a) Governments                                                                     3.779                              -                 22.438                                   -
b) Other public entities                                                          28.890                              -                 26.744                               1
c) Other parties                                                              18.977.525                        949.217             19.309.916                      359.972
   - non-financial companies                                                  11.780.949                        720.283             12.315.596                      237.098
   - financial companies                                                       1.274.819                         13.504                983.736                        8.372
   – insurance companies                                                          20.480                              -                 22.752                                   -
   - other                                                                     5.901.277                        215.430              5.987.832                      114.502
                                                            Total            19.010.194                         949.217             19.359.098                      359.973




We emphasize that there are no balance sheet customer loans hedged
specific or due to financial leasing contracts.




                                                                                                                                                                       129
Section 8                          Hedging derivatives - Item 80-
8.1 Hedging derivatives: breakdown by hedges risk and fair value hierarchy

                                              PV 31/12/2009                       NV:                       PV 31/12/2008                        NV:

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


A. Financial derivatives                  -          144.697              -       6.267.361             -          350.589               -       5.045.856

  1) Fair value                           -           138.378             -        6.013.798            -              93.535            -       3.418.692

  2) Cash flows                           -              6.319            -          253.563            -           997,054              -       1.627.164

  3) Foreign Investment                   -                      -        -                    -        -                       -        -                   -

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

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

  2) Cash flows                           -                      -        -                    -        -                       -        -                   -

                           Total          -          144.697              -       6.267.361             -          350.589               -       5.045.856




Key:
NV = nominal value
L1 = Level 1
L2 = Level 2
L3 = Level 3




130
8.2 Hedging derivatives: breakdown by hedged assets and risk

                                                                                           Fair Value                                                                 Cash flows

       TRANSACTIONS/TYPE OF                                                     Specific                                                                                                           Investments

                                                                                                                                        Generic               Specific               Generic           ABROAD

                                RATE RISK               Exchange risk       CREDIT RISK           Price Risk       Multiple risks
       HEDGES

              hedge
1. Financial assets available
                                                    -                   -                     -                -                    -      X                                     -      X                X
for sale
2. Loans                                            -                   -                     -            X                        -      X                                     -      X                X

3. Financial assets held
                                      X                                 -                     -            X                        -      X                                     -      X                X
to maturity
4. Portfolio                          X                                 X                     X                X                    X             3.095                          X             -         X

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

Total assets                                        -                   -                     -                -                    -             3.095                          -             -                 -

1. Financial liabilities                  135.283                       -                     -            X                        -      X                             6.319          X                X

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

Total liabilities                      135.283                          -                     -                -                    -                     -              6.319                 -                 -

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




                                                                                                                                                                                                                     131
Section 9                     Changes in fair value of financial activities subject to
                              hedging - Item 90 -
9.1 Changes in fair value of portfolio hedged items



           CHANGES TO MACRO-HEDGED LIABILITIES                  31/12/2009                31/12/2008


1. Positive changes

1.1 of specific portfolios:                                                  40.684                    44.548
   a) loans                                                                  40.684                    44.548

   b) financial assets available for sale                                             -                     -

1.2 overall                                                                           -                     -

2. Negative changes

2.1 of specific portfolios:                                                           -                     -
   a) loans                                                                           -                     -

   b) financial assets available for sale                                             -                     -

2.2 overall                                                                           -                     -
Total                                                                    40.684                    44.548




9.2 Banking group assets subject to macro-hedging of interest-rate risk



                                  HEDGED ACTIVITIES             31/12/2009                31/12/2008


1. Loans                                                              2.748.173                   665.708
2. Available-for-sale financial assets                                            -                         -
3. Portfolio                                                                      -                         -
Total                                                                 2.748.173                   665.708




132
Section 10            EQUITY INVESTMENTS - ITEM 100-
10.1 Equity investments in subsidiaries, companies subject to joint control or under significant influence:
      companies subject to significant influence: disclosures

                                                                                           %
                               Company name                              Head Office
                                                                                       Participation%

A. Owned subsidiaries)


UBI Banca International SA                                               Luxembourg         3.462%


UBI Sistemi e Servizi Scpa                                                 Brescia          2.960%


B. Companies under joint control


Companies subject to significant influence



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

The percentage of participation in UBI Sistemi e Servizi has declined, despite the absence of
on capital movements as a result of extraordinary transactions conducted by the subsidiary.




                                                                                                        133
10.2 Equity investments in companies under joint control and in companies under significant influence: accounting information

                                                                                                                 Net equity
                                                      Total            Total revenues                                                    BOOK
                        Company name                                                        PROFIT (LOSS)           result
                                                      ASSETS                 (*)                                                         ANNUAL REPORT
                                                                                                                     (**)


A. Owned subsidiaries
UBI Banca International SA (***)                       1.563.129               38.242               13.980             108.663                3.500

UBI Sistemi e Servizi Scpa                               214.047             305.964                         -              52.076            1.565



Companies under joint control
                                                0                  -                    -                    -                       -            -

C. Companies subject to significant influence

                                                0                  -                    -                    -                   -                -

Total                                                  1.777.176             344.206                13.980            160.739                 5.065




(*) For those companies which prepare their financial statements in accordance with the Bank of Italy Circular No 262/2005, the amounts represent the gross income.
(**) Shareholders' equity includes the profit arising from the draft budget for 2009.
(***) Data from UBI Banca International SA emerge from financial statements prepared for consolidation, according to the principles applied by the parent company.




        134
10.3 Equity investments: annual changes


                                                                    Total                Total
                        SOURCE/CATEGORIES
                                                                 31/12/2009           31/12/2008

A. Opening balance                                                            5.065                    -

B. Increases                                                                      -                5.065
B.1 Purchases                                                                     -                5.065
B.2 Write-backs                                                                   -                    -
B.3 Revaluations                                                                  -                    -
B.4 Other changes                                                                 -                    -
C. Decreases                                                                      -                    -
C.1 Sales                                                                         -                    -
C.2 Write-downs                                                                   -                    -
C.3 Other changes                                                                 -                    -
D. Closing balance                                                            5.065                5.065
E. Total revaluations
F. Total adjustments                                                                                   -




At the time of preparing the budget there is no commitment of any kind relating to
equity investments.




                                                                                                     135
Section 11                  Tangible assets - Item 110-
11.1 Tangible assets assets: breakdown of assets carried at cost



                                     ASSETS/AMOUNTS             31/12/2009               31/12/2008


A. Assets used in the business
  1.1 owned                                                              32.144                   26.457
  a) land                                                                    2.522                    2.522
  b) buildings                                                               3.682                    3.615
  c) office furniture and fittings                                           7.653                    6.932
  d) electronic systems                                                      7.699                    6.849
  e) other                                                               10.588                       6.539
  1.2 acquired under financial lease                                         6.479                    7.048
  a) land                                                                    2.607                    2.607
  b) buildings                                                               3.304                    3.465
  c) office furniture and fittings                                                   -                        -
  d) electronic systems                                                              -                        -
  e) other                                                                     568                      976
Total A                                                                  38.623                   33.505
B. Assets held for investment purposes
  2.1 owned                                                                          -                        -
  a) land                                                                            -                        -
  b) buildings                                                                       -                        -
  2.2 acquired under financial lease                                                 -                        -
  a) land                                                                            -                        -
  b) buildings                                                                       -                        -
Total B                                                                              -                        -
Total (A+B)                                                              38.623                   33.505




In 2009, the Bank has implemented the safety equipment at the
Bank branches continue the installation of so-called "teller machines" and replaced
number of ATM installations. These investments are the basis of the increased value of other
owned assets used in operations amounting to € 4 million, net of
Depreciation for the year.


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




136
11.3 Tangible assets used in the business: annual changes


                                                                                                                                   Electronic
                                                            Land               Buildings                   Furniture                                      Other                   Total
                                                                                                                                  equipment

A. Gross opening balance                                           5.129              13.462                     7.717                     8.048                  9.037                   43.393
A.1 Total net decreases in value                                       -               ( 6.382 )                   (785)                  (1.199)             (1.522)                     ( 9.888 )
A.2 Opening net amount                                             5.129                   7.080                 6.932                     6.849                  7.515                   33.505
B. Increases                                                           -                     314                 1.449                     3.060                  5.204                   10.027
B.1 Purchases                                                          -                           -              1.449                     3.060                 5.204                    9.713
B.2 Capitalized expenditure on improvements                            -                     314                          -                       -                       -                   314
B.3 Write-backs                                                        -                           -                      -                       -                       -                         -
B.4 Increase in fair value:                                            -                           -                      -                       -                       -                         -
  a) in equity                                                         -                           -                      -                       -                       -                         -
  b) income statement                                                  -                           -                      -                       -                       -                         -
B.5 Positive exchange differences                                      -                           -                      -                       -                       -                         -
B.6 Transfers from properties held for investment                      -                           -                      -                       -                       -                         -
B.7 Other changes                                                      -                           -                      -                       -                       -                         -
C. Decreases                                                           -                   (408)                  (728)                   ( 2.210 )           ( 1.563 )                   ( 4.909 )
C.1 Sales                                                              -                           -                      -                       -                       -                         -
C.2 Depreciation                                                       -                    (408)                  (647)                  ( 2.210 )           (1.253)                     ( 4.518 )
C.3 Impairment losses:                                                     -                           -               (81)                           -                       -                (81)
  a) in equity                                                         -                           -                      -                       -                       -                         -
  b) income statement                                                  -                           -                   (81)                       -                       -                   (81)
C.4 Reductions of fair value:                                          -                           -                      -                       -                       -                         -
  a) in equity                                                         -                           -                      -                       -                       -                         -
  b) income statement                                                  -                           -                      -                       -                       -                         -
C.5 Negative exchange differences                                      -                           -                      -                       -                       -                         -
C.6 Transfers to:                                                      -                           -                      -                       -                       -                         -
     a) property, plant and equipment held for investment                  -                           -                      -                       -                       -                         -
  b) assets held for sale                                              -                           -                      -                       -                       -                         -
C.7 Other changes                                                      -                           -                      -                       -                (310)                    (310)
D. Closing net balance                                             5.129                   6.986                 7.653                     7.699              11.156                      38.623
D.1 Total net reduction in value                                       -               (6.789)                   (1.434)                  ( 3.410 )           (2.293)                 (13.926)
D.2 Closing gross amount                                           5.129              13.775                     9.087                    11.109              13.449                      52.549
E. Valuation at cost                                                   -                           -                      -                       -                       -                         -




                                                                                                                                                                                                            137
Depreciation is calculated on the basis of estimated useful life of the asset from the
date of entry into operation.
The estimated useful life in months for the major asset classes are shown below:


                               Description            Amortization                     Useful life

      Land for buildings                                    NO                     Not depreciated
      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 fittings                           YES                        120 months
      Furniture and office machinery                         YES                        100 months
      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
      Transport vehicles                                     YES                         30 months
      Cars                                                   YES                         24 months
      Leased Cars                                            YES          On the basis of the contract period




11.4 Tangible assets held for investment: annual changes

As shown in Table 11.1, are not assets held for investment purposes.




138
11.5 Commitments to purchase property, plant and equipment (IAS 16/74.c)



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

A. Operating assets
1.1 Owned:                                                                   1.028                47
  land                                                                           -                 -
  buildings                                                                      -                 -
  furniture                                                                    455                40
  electronic systems                                                             -                 4
  - other                                                                      573                 3
1.2 In financial leasing:                                                        -                 -
  land                                                                           -                 -
  buildings                                                                      -                 -
  furniture                                                                      -                 -
  electronic systems                                                             -                 -
  - other                                                                        -                 -
Total A                                                                      1.028                47
B. Assets held for investment purposes
2.1 Owned :                                                                      -                 -
  land                                                                           -                 -
  buildings                                                                      -                 -
2.2 In financial leasing:                                                        -                 -
  land                                                                           -                 -
  buildings                                                                      -                 -
Total B                                                                          -                 -
Total A+B                                                                    1.028                47




The above commitments are within normal planning company, is
These orders not yet executed on furniture and equipment, which will be filled in
early 2010.




                                                                                                  139
Section 12                          Intangible assets - Item 120-
12.1 Intangible assets: breakdown


                                                                        31/12/2009                                         31/12/2008
                              Assets/Amounts
                                                       Specified time           Indefinite                Specified time           Indefinite

A.1 Goodwill                                                  X                              42.145              X                              42.145

A.2 Other intangible assets                                                -                          -                       -                          -

A.2 Assets carried at cost:                                                -                          -                       -                          -

  a) Intangible assets generated internally                                -                          -                       -                          -

  b) Other assets                                                          -                          -                       -                          -
A.2.2 Assets valued at fair value                                          -                          -                       -                          -

  a) Intangible assets generated internally                                -                          -                       -                          -

  b) Other assets                                                          -                          -                       -                          -
Total                                                                      -                 42.145                           -                 42.145




The goodwill balance sheet represents the payment made in advance by the Bank
for future economic benefits arising from the business combination took place
in the second half of 2002 at the former Banca Popolare di Bergamo - Credito Varesino
Scarl, and relates to No 25 branches of Banca Brignone SpA, the doors are in
question, all located in the Piedmont Region, have been sold to the Bank
Project under the European Regional Spatial Optimization.

As stated by IAS 36, a company must assess at each balance sheet date
if there is any indication that an asset may be impaired in value (so-called
impairment test). For goodwill, regardless of the fact that there are
any indication of impairment is necessary to perform the above verification
at least annually. Within the meaning of IAS 36, business has been reduced
be impaired when its carrying amount exceeds its recoverable amount intended
as 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 total generating unit
cash flow hedges. Therefore the verification of impairment of goodwill 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,
determined on the basis of the budget for 2010 and extrapolated on the basis of growth rates in 2009 -
2012 of the main key components, described below, approved by the Board of
Directors of the Bank:

                              Customer loans & receivables                     CAGR      %   2009-2012
                              RWA Jobs                                         CAGR      %   2009-2012
                              Direct deposits                                  CAGR      %   2009-2012
                              Segregated accounts                              CAGR      %   2009-2012
                              Administered deposits                            CAGR      %   2009-2012

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

The growth rate of earnings used is 0.80% and is considered stable and capable of
not to exceed the growth rates of long-term whole banking sector.


140
The discount rate after tax net profits amounted to 7.75%. This rate together
at the rate of growth over the period of the forecast of 0.80% helps to define a
capitalization rate to estimate the terminal value equal to 6.95%. This essay
capitalization is in line with that used by equity analysts that follow the title
UBI.

The methodology described above and quantitative information to support has been
approved on 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 (cd
impairment losses) of goodwill in the balance sheet of the Bank at December 31, 2009.


12.2 Intangible assets: annual changes

As previously indicated, there have been no changes in fixed assets
intangible you omit this regard the publication of the table.


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.




                                                                                        141
Section 13                       Section 13 - Tax assets and tax liabilities - Item 130 (assets) and item
                                 and Item 80 of the past -
13.1 Deferred tax assets: breakdown


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


                                                                          Amount            Tax effect          Temporary            Tax effect
                                                                        differences         IRES 27.50%        amount                IRES 27.50%
                                                                          temporary          IRAP 4.82%         differences           IRAP 4.82%


Deferred tax assets through profit or economic                                 120.978             33.280               62.349              17.955
- Provisions for risks and charges deducted                                      27.949             7.686               34.895              10.374

- Provisions for bad debts to be deducted on a straight line                     67.457            18.551               18.245               5.017
Entertainment expenses:                                                               101                 33                  176               57
- Maintenance costs                                                               6.046             1.664                3.164                 872
- Provisions for bad debts from banks and non-signature law                       4.849             1.333                3.971               1.092
- Tangible assets - non-deductible depreciation                                   1.127               314                     313               91
- TFR                                                                             5.558             1.528                        -                 -
- Health Insurance                                                                7.612             2.093                1.082                 298
Hedging derivatives                                                                     -                  -                  325              105
- Other minor                                                                         280                 77                  178               48
Deferred tax assets with shareholders' equity                                   12.133              3.379               33.736               9.905

- Personnel costs (health insurance and severance pay)                           11.248             3.093               20.719               5.698
- Securities AFS                                                                        -                  -                    5                  1
- Cash Flow Hedging                                                                   885             286               13.012               4.206
Total deferred tax assets recognized                                           133.111             36.659               96.085              27.859
Total deferred tax assets inscribed                                            133.111             36.659               96.085              27.859




The criteria for inclusion and deletion of tax liabilities and assets, current and deferred, are
listed in Section A.2 of these notes.
The table top and the next are marked to show the analytical
temporary differences, with the related tax effect.


13.2 Deferred tax liabilities: breakdown


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


                                                                          Amount            Tax effect          Temporary            Tax effect
                                                                        differences         IRES 27.50%        amount                IRES 27.50%
                                                                          temporary          IRAP 4.82%         differences           IRAP 4.82%


Deferred taxes recognized through profit or loss                                77.401             21.560              104.378              29.167
- TFR                                                                            20.878             5.741               19.621               5.396

- Intangible assets - goodwill                                                    5.868             1.897                8.220               2.657
- Outstanding securities                                                                -                  -                  588              190
- Other liabilities - discounting the debt to the fund income support                   -                  -                    7                  2
Default interest                                                                      302                 83             1.157                 374
- Gains on sale of branches                                                      48.895            13.446               73.342              20.169
- Tangible assets - depreciation deductible                                       1.267               348                1.363                 375
- Other minor                                                                         191                 45                   80                  4
Deferred tax on shareholders' equity                                            15.723              4.332               23.483               6.464

financial assets held for trading)                                                      -                  -                   12                  4
- Tangible assets - leased assets (FTA)                                                 -                  -                  109               35
- Work on leasehold (FTA)                                                               -                  -                   35               11
- Gains on sale of branches                                                      15.552             4.277               23.327               6.414
- Securities and investments AFS                                                      171                 55                    -                  -
Total deferred members                                                          93.123             25.892              127.861              35.631
Total deferred tax inscribed                                                    93.123             25.892              127.861              35.631




142
13.3 Changes in deferred tax (as offsetting entry of the Income Statement)


                                                                   31/12/2009           31/12/2008


1. Opening balance                                                          997,054                 32.190
2. Increases                                                                20.775                   5.413
2.1 Deferred tax assets recognized during the year                          17.567                    5.413
     a) relating to previous periods                                             439                      20
     b) due to changes in accounting principles                                     -                         -
     c) writebacks                                                                  -                         -
     d) other                                                               17.128                    5.393
  2.2 New taxes or increases in tax rates                                           -                         -
  2.3 Other increases                                                           3.208                         -
3. Decreases                                                                ( 5.449 )              (19.649)
  3.1 Deferred tax assets derecognised during the period                    ( 5.449 )              (19.649)
     a) reversals                                                           ( 5.449 )              (19.649)
     b) write-downs of non-recoverable items                                        -                         -
     c) change in accounting policies                                               -                         -
     d) other                                                                       -                         -
  3.2 Reduction in tax rates                                                        -                         -
  3.3 Other decreases                                                               -                         -
4. Closing balance                                                          33.280                  997,054



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" - which will effectively
to the income statement.


13.4 Changes in deferred taxes (as offsetting entry of the Income Statement)


                                                                   31/12/2009           31/12/2008

1. Opening balance                                                          29.166                  56.792
2. Increases                                                                 1.460                   1.355
2.1 Deferred tax liabilities recognized during the year                         1.410                 1.355
  a) relating to previous periods                                                462                       4
  b) due to changes in accounting policies                                          -                         -
  c) other                                                                       948                  1.351
2.2 New taxes or increases in tax rates                                             -                         -
2.3 Other increases                                                                50                         -
3. Decreases                                                                ( 9.066 )              ( 28.981 )
3.1 Deferred tax liabilities cancelled during the year                      ( 9.066 )              ( 28.981 )
  a) reversals                                                              ( 9.066 )              ( 28.981 )
  b) due to changes in accounting policies                                          -                         -
  c) other                                                                          -                         -
3.2 Reduction in tax rates                                                          -                         -
3.3 Other decreases                                                                 -                         -
4. Closing balance                                                          21.560                  29.166



The amount referred to in section 2.3 "Other increases" represents the total amount of deferred tax
Creates a contra to shareholders' equity until the year 2008 from Table 13.6


                                                                                                        143
- See corresponding decrease in 3.3 "Other decreases" - which will effectively
to the income statement.

13.5 Changes in deferred taxes (as offsetting entry of the shareholders’ equity)


                                                                   31/12/2009                31/12/2008


1. Opening balance                                                             9.905                     4.360
2. Increases                                                                      725                    5.622
2.1 Deferred tax assets recognized during the year                                725                     4.550
  a) relating to previous periods                                                 725                            -
  b) due to changes in accounting policies                                              -                        -
  c) other                                                                              -                 4.550
2.2 New taxes or increases in tax rates                                                 -                        -
2.3 Other increases                                                                     -                 1.072
3. Decreases                                                                  ( 7.251 )                    (77)
3.1 Deferred tax assets derecognized during the period                         ( 4.042 )                   (77)
  a) reversals                                                                 ( 4.042 )                   (77)
  b) write-downs of non-recoverable items                                               -                        -
  b) due to changes in accounting principles                                            -                        -
  d) other                                                                              -                        -
3.2 Reduction in tax rates                                                              -                        -
3.3 Other decreases                                                            ( 3.209 )                         -
4. Closing balance                                                             3.379                     9.905



The amount referred to in section 3.3 "Other decreases" represents the total amount of taxes
Creates assets in return to equity until the year 2008 and transferred to
Table 13.3 - see corresponding increase in section 2.3 "Other increases" - which will
actual repayment to income.

13.6 Changes in deferred taxes (as offsetting entry of shareholders’ equity)



                                                                 31/12/2009                 31/12/2008


1. Opening balance                                                            6.465                      8.673
2. Increases                                                                     55                           -

2.1 Deferred tax liabilities recognized during the year                          55                           -

  a) relating to previous periods                                                   -                         -

  b) due to changes in accounting principles                                        -                         -

  c) other                                                                       55                           -

2.2 New taxes or increases in tax rates                                             -                         -

2.3 Other increases                                                                 -                         -
3. Decreases                                                              ( 2.188 )                  ( 2.208 )

3.1 Deferred tax liabilities cancelled during the year                    ( 2.138 )                  ( 2.208 )

  a) reversals                                                            ( 2.138 )                  ( 2.208 )

  b) due to changes in accounting principles                                        -                         -

  c) other                                                                          -                         -

3.2 Reduction in tax rates                                                          -                         -

3.3 Other decreases                                                             (50)                          -
4. Closing balance                                                            4.332                      6.465




144
The amount referred to in section 3.3 "Other decreases" represents the total amount of deferred tax
Creates a contra to shareholders' equity until the year 2008 and transferred to Table 13.4 -
see a corresponding increase in section 2.3 "Other increases" - which will effectively
to the income statement.


13.7 Other information


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


Advances paid to the tax authorities                                         41.751                42.400
Tax Credit                                                                   26.574                   365
                                                                         68.325                42.765




                                                                                                            145
Section 15                Other assets - Item 150-
15.1 Other assets: breakdown



                                                                    31/12/2009            31/12/2008




Loans for tax consolidation                                                      87.529           124.270
Leasehold improvements                                                            9.119                 7.362

 Items in transit                                                                 6.524                21.806

Skills to be collected                                                           24.671                18.539

Valuation currency on foreign exchange transactions and portfolio                 3.055                 7.707

Cheques drawn on third                                                              231                 6.724

Items being processed                                                            17.215                19.537

Tax receivables                                                                  30.060                28.658

Other items                                                                      79.940                75.223
TOTAL                                                                       258.344               309.826




Deferred tax consolidation loans and advances are of direct taxes
transferred to the Parent Company in accordance with the regulations of the national fiscal consolidation.
Other tax receivables consist of advance payments of indirect taxes (stamp duty
acquitted in a virtual substitute tax on the funding pursuant to art. 15,
DPR 601/73) in repayment in early 2010.
The other matches include accruals not brought back for a total of 39,248.8
thousands of EUR, and games associated with the operation of covered bonds totaling
20,060 thousand EUR.




146
LIABILITIES

Section 1                 Deposits from banks – Item 10-
1.1 Due to banks: breakdown by type



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



1. Deposits from Central Banks                                                                             -                     -
2. Due to banks                                                                                  154.529               144.082
  2.1 Current accounts and unrestricted deposits                                                  54.290                18.928
  2.2 Time deposits                                                                               68.280                84.287
  2.3 Loans                                                                                       21.674                22.995
     2.3.1 Repurchase agreements                                                                           -                     -
     2.3.2 Other                                                                                  21.674                22.995
  2.4 Liabilities in respect of commitments to repurchase treasury shares                                  -                     -
  2.5 Other liabilities                                                                           10.285                17.872
                                                                                 Total           154.529               144.082
                                                                            Fair Value           154.529               144.082




"Other debts" is operating payables, and consists primarily of
liabilities owed to the banking companies of the Group as a service provider.

Amounts due to banks include liabilities for a total of 165 000 € to counterparties
subject to local optimization.


1.2 Analysis of line item 10 “Deposits from banks”: subordinated liabilities

There are no subordinated debt from banks.


1.3 Analysis of line item 10 “Deposits from banks”: structured debts

There are no structured debts to banks.


1.4 Deposits from banks subject to micro-hedging

There are no debts covered by specific banks.


1.5 Amounts due for finance leases
There are no debts to banks to finance leases.




                                                                                                                            147
Section 2                 Deposits from customers - Item 20-
2.1 Due to customers: breakdown by sector



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


1. Current accounts and unrestricted deposits                                                12.899.847               11.463.941
2. Restricted deposits                                                                              57.149                   41.962
3. Loans                                                                                           362.119             1.577.910
  3.1 Repurchase agreements                                                                        358.445             1.573.090
  3.2 Other                                                                                          3.674                    4.820
4. Liabilities in respect of commitments to repurchase treasury shares                                      -                      -
5. Other payables                                                                                   68.011                   87.445
                                                                             Total          13.387.126               13.171.258
                                                                         Fair Value         13.387.126               13.171.258




Liabilities for repurchase to customers decreased by 1.2146 billion EUR,
due to the lower appreciation of this financial instrument was found during
FOR THE PERIOD.
Conversely declined loans to parent company for repurchase.

Customer deposits include 1.6622 billion EUR of amounts due to counterparties
concerned by a local optimization.


2.2 Analysis of line item 20 “Deposits from customers”: subordinated liabilities

There are no subordinated debt to customers.


2.3 Analysis of line item 20 “Deposits from customers”: structured liabilities

There are no structured debts from customers.


2.4 Due to customers covered by specific

There are no debts covered by specific to the customers.


2.5 Amounts payable under finance leases



                                                                                      31/12/2009                31/12/2008


Outstanding debt to leasing companies

  - Within one year                                                                                1.363                      1.693

  - Between 1 and 5 years                                                                          2.311                      3.127

  over 5 years                                                                                          -                          -




Amounts due under finance leases are for buildings and vehicles purchased, and are
exposed to UBI Leasing.




148
Section 3                                     Debt securities issued - Item 30-
3.1 Debt securities issued: breakdown by sector


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


       Type of securities / Amount              VALUE                                Fair Value                                     VALUE                                Fair Value


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

A. Securities

     1. bonds                                     9.477.971            250.154              8.954.625             278.095             9.319.716            234.229              8.867.077            216.997

                1.1 structured                    3.777.915                      -          3.525.982             261.182             3.603.479                      -          3.398.074            208.334

                1.2 other                         5.700.056            250.154              5.428.643                  16.913         5.716.237            234.229              5.469.003                 8.663
                2. other securities                 831.166                      -             831.166                          -     2.563.194                      -          2.563.194                         -

                   2.1 Structured                             -                  -                       -                      -                 -                  -                      -                     -

                  2.2 other                         831.166                      -             831.166                          -     2.563.194                      -          2.563.194                         -
                                      Total     10.309.137             250.154              9.785.791             278.095           11.882.910            234.229             11.430.271             216.997




This item consists mainly by bond issues, totaling
about 9.478 billion EUR. They include € 2,250 million of loans issued in 2008
and signed by the parent company as part of the structural balance.
The structures are mainly used step up and step down, the fair value of
unbundled options securities was a negative 1.4 million EUR, and is recognized as the
financial liabilities held for trading.

3.2 Analysis of line item 30 “Debt securities in issue”: subordinated securities


                                                                                                                                                                                       Balance at
                   Company name                                                                                                                             Rate
                                                                                                                                                                                        31/12/2009



Bond IT0004281330 BPB 2007-2017 Lower Tier II floating-rate                                                                                                1.708%                                    50.007



Bond IT0003210074 BPB-CV 2001-2012 Upper Tier II floating-rate                                                                                             1.400%                                 250.131




The characteristics of the subordinated loans issued are as follows:
       2007-2017 Lower Tier II Bond issue floating rate quarterly
       (Euribor three-month spread of 1% per annum for the first 5 years, 1, 60%
       the sixth year to maturity). The loan is not listed, has been signed
       in full by the Parent, the deadline is September 28, 2017. E 'planned
       early repayment clause in favor of the Issuer to make time from September 28
       2012, for failure to exercise the clause, as previously reported,
       the bond yield becomes equal to three-month Euribor plus a spread of 1, 60% up
       annual basis. Nominal value of € 50 million issued.
       2001-2012 Upper Tier II Bond issue floating rate quarterly
       (Euribor three-month spread of 0.80% on an annual basis) placed in the public
       indistinct and listed on the Milan Stock Exchange, expiring June 18, 2012. It is expected
       early repayment clause. Nominal value of € 250 million issued.




                                                                                                                                                                                                          149
3.3 “Debt securities issued”: securities subject to micro-hedging



                                                                       31/12/2009            31/12/2008



1. Securities with specific fair value hedges:                               5.854.193             3.190.031
      a) interest rate risk                                                  5.854.193             3.190.031

      b) exchange risk                                                                   -                     -

      c) various risks                                                                   -                     -

2. Payables covered by specific cash flow hedges:                              802.423             2.486.988

      a) interest rate risk                                                              -                     -

      b) exchange risk                                                         802.423             2.486.988

      c) more                                                                            -                     -




The amount shown on line 2b) of the prospectus is higher on the book value of
certificates of deposit in yen covered in cash flow hedges. The fair values of derivatives
coverage are enrolled, according to the sign in the appropriate asset or liability of
Balance sheet, while its valuation is recorded, net of tax, between the
valuation reserves, in particular, hedging derivatives have positive fair values
to € 6,319.4 thousand, negative fair values of € 19,201.5 thousand.




150
Section 4                                   Financial liabilities held for trading - Item 40-
4.1 Financial liabilities held for trading: breakdown by type

                                                                  31/12/2009                                             31/12/2008
      Type of transaction/Amounts                                    FV:                                                     FV:
                                               NV:                                          FV*       NV:                                            FV*
                                                         L1          L2            L3                           L1           L2            L3

A. Cash liabilities
  1. Due to banks                                    -        -                -        -         -         -        -                 -        -          -
  2. Due to customers                                -        -                -        -         -         -        -                 -        -          -
  3. Debt securities                                 -        -                -        -         -         -        -                 -        -          -
     3.1 Bonds                                       -        -                -        -         -         -        -                 -        -          -
       3.1.1 structured                              -        -                -        -   X               -        -                 -        -    X
       3.1.2 Other                                   -        -                -        -   X               -        -                 -        -    X
     3.2 Other securities                            -        -                -        -         -         -        -                 -        -          -
       3.2.1 structured                              -        -                -        -   X               -        -                 -        -    X
       3.2.2 Other                                   -        -                -        -   X               -        -                 -        -    X
                                  Total A            -        -                -        -         -         -        -                 -        -          -
B. Derivative intruments
  1. Financial derivatives                     X              -        49.729           -             X              -         83.650           -
     1.1 For trading                           X              -        48.346           -   X         X              -         82.051           -    X
     1.2 Related to fair value option          X              -                -        -   X         X              -                 -        -    X
     1.3 Other                                 X              -            1.383        -   X         X              -             1.599        -    X
  2. Credit derivatives                        X              -                -        -             X              -                 -        -
     2.1 Trading derivatives                   X              -                -        -   X         X              -                 -        -    X
     2.2 Related to fair value option          X              -                -        -   X         X              -                 -        -    X
     2.3 Other                                 X              -                -        -   X         X              -                 -        -    X
                                  Total B      X              -        49.729           -   X         X              -        83.650            -    X
                               Total (A+B)           -        -        49.729           -         -         -        -        83.650            -          -




4.2          4.2 Analysis of line item 40 “Financial liabilities held for trading”: subordinated liabilities
             subordinate

There are no financial liabilities subject to negotiation.


4.3 Analysis of line item 40 “Financial liabilities held for trading”: subordinated liabilities

There are no trading financial liabilities consist of structured debts.




                                                                                                                                                    151
Section 6                          Hedging derivatives - Item 60-
6.1         8.1 Hedging derivatives: breakdown by hedges risk and fair value hierarchy
            hierarchical


                                          Fair Value 31/12/2009                     NV:                   Fair Value 31/12/2008                     NV:


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


A. Financial derivatives                  -               72.755            -       3.430.587             -               79.295            -       1.563.670

  1) Fair value                           -               53.554            -        2.881.638            -               44.070            -         707.390

  2) Cash flows                           -               19.201            -          548.949            -               35.225            -         856.280

  3) Foreign Investment                   -                        -        -                    -        -                        -        -                   -

B. Credit derivatives                     -                        -        -                    -        -                        -        -                   -
  1) Fair value                           -                        -        -                    -        -                        -        -                   -

  2) Cash flows                           -                        -        -                    -        -                        -        -                   -

                           Total          -               72.755            -       3.430.587             -               79.295            -       1.563.670




The amount of 19,201 thousand EUR, recorded as financial derivatives on the table "flows
Financial, is the negative fair value of domestic currency swaps related
issuance of certificates of deposit in yen.




152
6.2 Hedging derivatives: breakdown by hedged items and risk type

                                                                                   Fair Value                                                      Cash flows

      TRANSACTIONS/TYPE OF                                                                                                                                                    Foreign
                                                                        Specific
                                                                                                                            Generic         Specific            Generic

                                RATE RISK        Exchange risk       CREDIT RISK          Price Risk       Multiple risks
      HEDGES                                                                                                                                                                  Investments

           hedge
1. Financial assets available
                                             -                   -                   -                 -               -       X                        -          X               X
for sale
2. Loans                                     -                   -                   -           X                     -       X                        -          X               X
3. Financial assets held
                                     X                           -                   -           X                     -       X                        -          X               X
to maturity
4. Portfolio                                 x                   x                    x                x               X           52.337               X                 -        X

5. Other transactions                        -                   -                   -                 -               -                X               -                 X                 -
Total assets                                 -                   -                   -                 -               -           52.337               -                 -                 -

1. Financial liabilities                 1.217                   -                   -           X                     -       X                   19.201          X               X
2. Portfolio                                 -                   -                   -                 -               -                -               -                 -        X

Total liabilities                        1.217                   -                   -                 -               -                -          19.201                 -                 -
1. Expected transactions             X                   X                 X                     X            X                X                        -          X               X
2. Portfolio of assets and
                                     X                   X                 X                     X            X                X               X                          -                 -
financial liabilities




                                                                                                                                                                                                153
Section 8          Tax liabilities - Item 80-

                                                                                         Fund for
                                                                                    direct taxes


Balance 31/12/2008                                                                              52.432
PROVISIONS                                                                                      29.364
Use to pay taxes                                                                                ( 46.160 )
Other changes                                                                                          -
Balance 31/12/2009                                                                              35.636




The table above represents the movement of the current tax liabilities
during the year. We emphasize that, as mentioned in the Report, the
Bank adheres to the so-called "national fiscal consolidation" within the meaning of art. 117 et seq
DPR 917 of 22 December 1986 and subsequent amendments and additions, with the result
receivables and payables related to IRES were transferred to the Company and will be entered in
budget in other assets and liabilities, as liabilities are items related to IRAP
Bank tax and are therefore included in the table comment.
The composition of and changes in deferred tax liabilities are shown with
deferred tax assets, to Section 13 of this note.




154
Section 10             Other liabilities - Item 100-
10.1 Other liabilities: breakdown



                                                                     31/12/2009         31/12/2008


Due to tax authorities for withholding taxes payable                           27.326          27.869
Skills and contributions for employee                                          40.575          60.049
Valuation currency on foreign exchange transactions                                36          13.122
Due to fiscal consolidation                                                   103.410         157.796
Amounts available to customers                                                 72.282         134.180
Matches in progress                                                            11.535          80.001
Other creditors                                                                64.315          46.108
Related Searches                                                               34.096          35.670
Currency spreads on portfolio transactions                                     84.052         102.064
Items in transit between branches                                               2.985          16.369
Guarantees given and commitments                                                5.540            4.662
Other                                                                           7.881            7.061
Total                                                                         454.033         684.951




Payables consist of the consolidated tax debt to the parent company for tax
corporate income tax transferred pursuant to the rules on tax consolidation
national. "




                                                                                                     155
Section 11              Provision for employee severance pay – Item 110-
11.1 Provision for employee severance pay: annual changes



                                                                    31/12/2009              31/12/2008


A. Opening balance                                                           90.583                 96.102
B. Increases                                                                  2.588                   6.793
  B.1 Provisions for the year                                                        -                        -
  B.2 Other increases                                                            2.588                   6.793
C. Decreases                                                                 ( 5.165 )             (12.312)
  C.1 Amounts paid                                                           (3.794)                (12.312)
  C.2 Other decreases                                                        ( 1.371 )                        -
D. Closing balance                                                           88.006                 90.583




The other increases, as indicated in row B.2, are entirely made up of charges
Financial, recognized in the income statement.

The other decreases, as indicated in row C2, are wholly made of
Utility of actuarial period, which is found, net of tax effect 377
€ thousand or so, in return for fair value reserve. Please note that the
actuarial valuation done at the end of last year had resulted in a loss,
entered accordingly in row B.2 - other increases.




11.2 Other information
Prospectus summary of the technical bases adopted for the evaluation of the TFR and
of 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
                                   averaging of historical data business in recent years.

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

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

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




156
31/12/2008

Probability of death            Table ISTAT Sim / f 1991
Turn over                       Table distinguished by sex, age and contract status, consisting
                                on the experience of 2004-2006. On average,
                                observed turnover rates are around 3.2% for women
                                and 4.9% for men belonging to the classification of Employees,
                                2.2% for women and 5.5% for men belonging to the
                                qualification of the senior management and 8, 0% for women and
                                3.5% for
Anticipation of TFR             Table constructed according to the of managers.
                                men belonging to the qualifications company's series of the period
                                2004-2006. The probability of anticipation observed amounted
                                around 2.0%, while the average amount required is around
                                65%.
Salary increases                Tabe separate contractual status and seniority of
(Only for seniority premiums)   employee, the company built based on historical experience
                                the period 2004-2006. On average the annual rates of growth
                                observed wages are around 1.2% for the qualification of
                                Employees, 2.2% for senior executives and 3.2% for managers, to
                                net of increases related to the cost of living.
Inflation rates                 Table containing the forecasts given in the document
                                Drafted by the Ministry of Economic and Financial Planning
                                Economy and Finance for the period 2007-2011. Beyond that
                                period was kept constant over time since the last
                                Document available on the inflation (1.5%)
Discount rates                  Euro swap yield curve, given the turmoil
                                financial markets to the default risk of government securities and
                                corporate, it was decided to add the Euro swap curve,
                                properly "bootstrappata," the Credit Spread Curve
                                "Cash_Govt_of_Italy_31122008"




                                                                                                     157
Section 12             Provisions for risks and charges - Item 120-
12.1 Provisions for risks and charges: breakdown


                               Line items/ Amounts                          31/12/2009               31/12/2008

1. Company pension fund                                                                      -                          -
2. Risks and charges                                                                 29.573                    30.710
  2.1 legal disputes                                                                 17.819                    17.108
  2.2 staff expenses                                                                         -                          -
  2.3 other                                                                          11.754                    13.602
Total                                                                                29.573                    30.710



The risks relate mainly to disputes for litigation services
of investment services and applications of compound interest on claims. They have not been
significant changes during the year.
The other funds are mainly allocated instead to address the risks arising from
revocation actions, and have decreased by € 1.8 million had received
exercise to release funds in excess of € 2.4 million.




12.2 Provisions for risks and charges: annual changes


                                                     Fund for pension and    Other provisions          Total
                                                     retirement


A. Opening balance                                                      -             30.710                   30.710
B. Increases                                                            -                5.134                  5.134
B.1 Provisions for the year                                             -                4.593                  4.593
B.2 Changes due to the passage of time                                  -                  541                     541
B.3 Differences due to discount-rate changes                            -                        -                    -
B.4 Other changes                                                       -                        -                    -
C. Decreases                                                            -             ( 6.271 )                ( 6.271 )
C.1 Use during the year                                                 -             (1.679)                  (1.679)
C.2 Differences due to discount-rate changes                            -                        -                    -
C.3 Other changes                                                       -             (4.592)                  (4.592)
D. Closing balance                                                      -             29.573                   29.573




12.3 Defined benefit pension and other post retirement plans
There are no funds for defined benefit company pension.




158
12.4 Provisions for risks and charges: other provisions

                                                      Increases                                         Decreases

                                                                            Other                         Other
                                  31/12/2008       Provisions                             Use                           31/12/2009
                                                                          Change                        Change

Legal disputes                          17.108                    3.471             282           840        2.202            17.819
Payroll costs                                  -                      -               -             -               -                -

Other provisions                        13.602                    1.122             260           840        2.390            11.754

   referred to actions to void           9.792                     107          342              485         1.798             7.958
Total                                  30.710                   4.593           542             1.680        4.592            29.573



Other provisions for risks and charges primarily include funds for the void and
Provisions for disputes on investments. The estimates were made
analysis on individual positions if the counterparty has already undertaken a
prosecution and on the basis of a potential estimated on historical statistical series
presence of objective factors of risk (eg presence of complaints), not yet
embodied in legal proceedings. The risk provisions were included in the budget to the value
current, determined analytically in the single case, to take account of
different dates are expected disbursement. The timing of expected payment is
average range from 1 to 3 years.


Contingent liabilities




                                                                                                        Liability


Cases Fund for staff                                                                                                                 -
Reserve for possible revocation                                                                                                      -
Fund for bonds in default                                                                                                            -
Provision for compounding                                                                                                      100
Provision for claims                                                                                                                 -
Fund for other litigation                                                                                                    1.383
Total                                                                                                                       1.483




The definition of liabilities and the related reporting procedures were
out in Part A of these Notes.
Please note that the aggregate includes the sentence imposed by the Italian
Competition in 2008 and subsequently annulled by the TAR of Lazio;
on this see the special section of the Management Report on page. 60.




                                                                                                                                 159
Section 14             Heritage Business
                       Group shareholders’ equity - items 130, 150, 160, 170, 180, 190 and
                       200-
14.1 “Share capital” and “Treasury shares”: breakdown



                                                                     31/12/2009            31/12/2008


No ORDINARY SHARES                                                     1.256.300.000         1.256.300.000
rated from each Euro                                                              1,00                  1,00


No own shares                                                                          -                     -
rated from each Euro                                                                   -                     -



The Bank does not hold treasury shares.


14.2 Share capital - number of shares: annual changes
In 2009, there were no changes in share capital, therefore, is omitted
table.


14.3 Share capital: other information
Nominal value of shares

The share capital is fully subscribed and paid up and was made up of 1.256.300.000
ordinary shares of nominal value 1 EUR each.

Rights, preferences and restrictions on shares
The shares of the Bank there are no privileges or liens and, with regard to the constraints
distribution of dividends and the repayment of capital, see the summary prospectus
of shareholders' equity by origin and an indication of the possibility of
use and distribution pursuant to art. 2427 paragraph 1, no Cc 7 a further down
the next item.


14.4 Reserves from allocation of profit from previous year: other information
The surplus amounted to € 439,072 thousand and are as follows:
          Legal reserve                                                   € 76,334 thousand;
          - voluntary reserve                                             € 342,494 thousand;
          Reserve pursuant to Art. Code 2426 Civ. paragraph 1 No 5        €   6,021 thousand;
          Other reserves from profits                                     € 14,223 thousand.

The increase over the previous year is attributable to the allocation of profits
2008.

For more detailed information, the other reserves amounted to 27,705
amount unchanged from December 31, 2008. They are as follows:
       Reserve FTA                                                        €   1.896 thousands;
       Reserve for application such as OPI. 2007                          € 27,791 Thousands;
       Reserve for application such as OPI. 2008                          €   4.211 thousands;
       Reserve for pension reform compl. Leg. 252/05                      € (6.193 thousands)




160
Composition of second home equity, availability, and for distribution to
31/12/2009

                                                                                                                                                         Summary of uses
                                                                                               POSSIBILITY 'OF                          BOND            incurred during the three previous
                                                                           AMOUNT                                 SHARES AVAILABLE
                                                                                               USE                                      TAX                          exercises
                                                                                                     (1)                                   (2)
                                                                                                                                                        roof                  for other
                                                                                                                                                            LOSSES          reasons (13)
A) CAPITAL
Capital-                                                                       1256 .300


B) Capital reserve
-Share premium


C) Retained earnings
-Legal reserve                   (3)                                            76 .334                    b)
Reserve-art.      2426 cc 1, cn 5            (4)                                6.021                 a) b) c)                6021
Reserve utility rate-                                                          342 .494               a) b) c)             34 2494
Reserve-statutory modification art. 31 Statute (5)                              14 .223                a) b) c)              1 4223
-Retained earnings                                                                                     a) b) c)                                                                  35,431


D) OTHER RESERVES
Reserves-in application of OPI         (6)                                       32 .002               a) b) c)               3 2002
Reserve for amortization of past-transfer (7)                                       1 .896             a) b) c)                1896            1.328
-Reserve Gains / losses TFR - Decree No. 252/05            (8)                      (6 .193)               n/d
-Reserve for valuation of financial assets available for sale (9)                     116                  n/d
Valuation reserve cash-flow hedges                                                   (599)                 n/d
Reserve-actuarial gains and losses and debts TFR health insurance       (10)         (967)                 n/d
-Valuation reserve - the adoption of fair value replacement cost (11)                (291)             a) b)



TOTAL                                                                          1,721,336                                     396 636             1328

Profit for the year 2009                                                        179 .015
TOTAL ASSETS (4)                                                               1900351                                        396 636            1328

Key:
A: for capital increase
B: for hedged losses
C: for distribution to shareholders

NOTES:
1) Ability to use: a) to increase capital b) to cover losses c) for distribution to shareholders; n / d
not available
2) Amount of tax suspension
3) Use according to article 2430 Civil Code
4) Use according to article 2426 Civil Code 1, cn 5
5) Share of profit for 2006 to the Social Security system and provisions for employees to set aside reserves to
Following the amendment of the Statute
6) Provisions relating to the intercompany sale of branches treated according to OPI.
7) and available distributable reserve pursuant to art. 7, paragraph 4, D. Lgs. 38/2005 of which € 1,327,751 in
suspension of tax (reserve realignment under Law 266/2005)
8) Reserve a negative actuarial gains / losses on debt resulting from the severance pay for former welfare reform LD
252/2005
9) Reserve bound under article 6 of Legislative Decree n.38 28/02/2005.
10) Reserve for actuarial gains and losses on debt for severance pay and health insurance
11) Reserve not available, but due to capital and can be used to cover losses, pursuant to art.
7, comma 6, D. Lgs. 38/2005
12) Reserve realignment of buildings and land under Law 266/2005 recorded after-tax alternative
made in 2006
13) Using the case in the distribution of dividend for 2004, 2005, 2006, 2007 and 2008



5.14 Equity instruments: breakdown and annual changes
There are no equity instruments.



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




                                                                                                                                                                                    161
Other information
1. Guarantees given and commitments



                                           Transactions                 31/12/2009                31/12/2008


1) Financial guarantees given to                                                123.142                   120.282
  a) Banks                                                                       29.520                    27.828

  b) Customers                                                                   93.622                    997,054

2) Commercial guarantees given to:                                            1.972.203                 2.399.285

  a) Banks                                                                      123.257                   152.509

  b) Customers                                                                1.848.946                 2.246.776

3) Irrevocable commitments to provide funds                                   1.276.449                 1.319.200

  a) Banks                                                                       21.670                    65.779

        i) Usage certain                                                         21.670                    65.779

        ii) Usage uncertain                                                               -                         -

  b) Customers                                                                1.254.779                 1.253.421

        i) certain to be called on                                                   2.784                     2.569

        ii) not certain to be called on                                       1.251.995                 1.250.852

4) Underlying obligations for credit derivatives: sales of protection                     -                         -

5) Assets used to guarantee others' obligations                                           -                         -

6) Other commitments                                                                   825                          -

Total                                                                         3.372.619                 3.838.767




The credit risk associated with guarantees issued and commitments is evaluated in a similar manner to
cash credits. The part is rated doubtful exposure under "Other liabilities".
The table in the comment part of the commitment to the Interbank Deposit Protection Fund
Deposits has been reclassified from "Other commitments" to "guarantees given to financial,
point a) Banks.


2. Assets lodged to guarantee the bank's liabilities and commitments



                                           Portfolio                    31/12/2009                31/12/2008


1. Financial assets held for trading                                                          -                         -
2. Financial assets valued at fair value                                                      -                         -

3. Financial assets available for sale                                               20.591                      495

4. Financial assets held to maturity                                                          -                         -

5. Loans and advances to banks                                                                -                         -

6. Loans and advances to customers                                                            -                         -

7. Tangible assets                                                                            -                         -




The amounts in the table are related to government to set up for security
the issue of drafts, already discussed in Section 4 of the assets.

3. 3 - information on operating leases

There are no operating leases.




162
4. Asset management and trading on behalf of others



                                                         Type of services                                            31/12/2009


1. Trading of financial instruments on behalf of third parties
  a) Purchases                                                                                                                      -
    1. Settled                                                                                                                      -
    2. Unsettled                                                                                                                    -
  b) Sales                                                                                                                          -
    1. Settled                                                                                                                      -
    2. Unsettled                                                                                                                    -
2. Portfolio management                                                                                                             -
  a) individual                                                                                                                     -
  b) collective                                                                                                                     -
3. Custody and administration of securities                                                                               45.850.436
  a) Third party securities on deposit associated with custodian bank transactions (excluding segregated accounts)           104.700
    1. securities issued by the reporting bank                                                                                      -
    2. other securities                                                                                                      104.700
  b) other third party securities on deposit (excluding segregated accounts)                                              23.072.570
    1. securities issued by the reporting bank                                                                                      -
    2. other securities                                                                                                   23.072.570
  c) third party securities deposited with third parties                                                                  22.475.098
  d) portfolio securities deposited with third parties                                                                       198.068
4) Other operations                                                                                                        7.086.700
Total                                                                                                                     52.937.136




The data entered in step 4 is the equivalent of broadcast operations and collection
purchase orders and sales receipts from ordinary customers and be made through the
GROUP COMPANIES.




                                                                                                                                  163
PART C – NOTES TO THE INCOME STATEMENT
Section 1                                 Interest income/expense and similar revenues/charges - Items 10
                                          and 20-
1.1 Interest and similar income: breakdown


                               Item/ Type                                       DEBT SECURITIES       Loans                     Other transactions           31/12/2009               31/12/2008



1. Financial assets held for trading                                                              -                         -                         -                           -                    1

2. Financial assets available for sale                                                       398                            -                         -                     398                        5

3. C) financial assets held to maturity                                                           -                         -                         -                           -                    -

4. Loans to banks                                                                                 -               125.534                             -             125.534                  251.603

5. Loans to customers                                                                             -               804.329                       663                 804.992                1.262.990

6. Financial assets designated at fair value through profit and loss                              -                         -                         -                           -                    -

7. Hedging derivatives                                                                X                       X                               9.448                       9.448                        -

8. Other assets                                                                       x                       x                                       -                           -                    7

                                                                        Total                398                  929.863                   10.111                  940.372                1.514.606




Interest income on 31 December 2009 include € 44,413 thousand of interest on
impaired assets. In the previous year they amounted to 22,793 thousand EUR.
The item "Loans and advances to customers" include the overdraft charges for
a total of 21,334 thousand EUR. A time to 1 July 2009, following
introduction of the new commission system, such revenue has become a component
the new 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 (ex Commissions
Overdraft).


1.2           1.2 Interest income/expense and similar revenues/charges: hedging differentials
              hedge


                                                              Items/Amounts                                                        31/12/2009                                 31/12/2008


A. Positive differentials on transactions involving:                                                                                                 173.664                                           -
B. Negative differentials on transactions involving:                                                                                             (164.216)                                             -
C. Balance (A-B)                                                                                                                                          9.448                                        -




The economic effects of hedging transactions, in accordance with provisions of the
rules for the compilation of the bank's balance sheet is recognized in the income statement for imbalance
between the interest income as the positive differences are greater in absolute value to
shortfalls. In 2008 the situation was reversed, thus the
imbalance of the differential is explained in Table 1.5.


1.3 Interest income and similar revenues: other information

1.3.1 Interest income from financial assets denominated in currency



                                                             Items/Amounts                                                        31/12/2009                                 31/12/2008


Interest income from financial assets denominated in foreign currency                                                                                     2.998                              5.654




1.3.2 Interest income from financial leasing transactions

There are no interest income on finance leases.

164
1.4 Interest expense and similar charges: breakdown


                            Items/Technical forms                     Payables                 Securities            Other transactions             31/12/2009                 31/12/2008


1. Deposits from central banks                                                             -     X                                           -                            -            ( 18.521 )
2. Due to banks                                                                  (1.705)         X                                           -                 (1.705)                              -

3. Due to customers                                                         (78.512)             X                                           -               (78.512)                 (244.987)

4. Securities issued                                                    X                            (287.836)                               -              (287.836)                 (326.288)

5. Financial liabilities held for trading                                                  -                     -                           -                            -            (64.455)

6. Financial liabilities designated at fair value                                          -                     -                           -                            -                         -

7. Other liabilities and funds                                          X                        X                                   (115)                       (115)                      (102)

8. Hedging derivatives                                                  X                        X                                           -                            -            (46.006)

                                                           Total            (80.217)                 (287.836)                      (115)                   ( 368.168 )               (700.359)




1.5           1.5 Interest expense and similar charges: hedging differentials
              hedge



                                                      Items/Amounts                                                          31/12/2009                                   31/12/2008


A. Positive differentials on transactions involving:                                                                                                    -                             80.079
B. Negative differentials on transactions involving:                                                                                                    -                          (126.085)
C. Balance (A-B)                                                                                                                                        -                           (46.006)




The economic effects of hedging transactions in accordance with provisions of the
rules for the compilation of the bank's balance sheet is recognized in the income statement for imbalance.
The positive component is predominant in 2009, and the balance of the differential is then
stated in paragraph 1.2 of this section.


1.6 Interest expense and similar charges: other information

1.6.1 Interest expense on liabilities denominated in currency



                                                    Items/Amounts                                                    31/12/2009                               31/12/2008


Interest expense on foreign currency liabilities                                                                                      ( 2.064 )                               ( 15.717 )




1.6.2 Interest expense on liabilities from financial leasing transactions



                                                    Items/Amounts                                                    31/12/2009                               31/12/2008


1.6.2 Interest and similar expense on the liability under finance leases                                                                    (115)                                (327)




                                                                                                                                                                                            165
Section 2                      Fee and commission income/expense - Items 40 and 50-
2.1 Fee and commission income: breakdown



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



a) guarantees given                                                                 12.600                    11.870

b) credit derivatives                                                                     -                         -

c) management, brokerage and consultancy services:                              157.638                   163.627

  1.financial instruments trading                                                         -                         -

  2. currency trading                                                                3.238                     4.746

  3. portfolio management                                                                 -                         -

      3.1.      individual                                                               -                          -

      3.2.     collective                                                                -                          -

  4. custody and administration of securities                                        2.550                     2.266

  5. custodian bank                                                                    593                     1.049

  6. placement of securities                                                        56.279                    58.639

  7. reception and transmission of orders                                           11.781                    11.492

  8. consulting services                                                                34                        55

      8.1      with regards to investment                                               34                        55

      8.2     in capital structure                                                           -                         -

  9. distribution of third-party services                                           83.163                    85.380

      9.1. Portfolio management                                                     17.211                    22.073

             9.1.1.     individual                                                  17.211                    22.073

             9.1.2.     collective                                                           -                      -

      9.2 insurance products                                                        22.942                    24.851

      9.3. other products                                                           43.010                    38.456

d) collection and payment services                                                  43.033                    49.398

e) servicing for securitisation transactions                                              -                         -

f) factoring services                                                                     -                         -

g) tax collection services                                                                -                         -

h) management of multilateral trading facilities                                          -                         -

i) management of current accounts                                                   61.673                    69.126

j) other services                                                                   43.517                    35.039

                                                               Total           318.461                   329.060




"Other services" following the introduction of the new commission system,
includes the Commission made funds from 1 July 2009
total of € 17.2 million.
For further information please refer to the above in the section "Accounting policies
- Section 4: Other matters - Commission for making available funds (ex Commissions
Overdraft).

The item "placement of securities" consists of fees for the placement of funds
common (36.5 million) and other securities (19.8 million), the intragroup component amounts to
total of 44.2 million.
The reduction in charges for services receipts and payments is mainly due
contraction of the services performed in the exercise, because the comparison with the previous year
shows a reduction in commission income on credit that is the subject to collection, not
offset by corresponding reductions in commission expense.


166
The details of the fees on other services obtained is shown in the table below.



                        Retail commissions "other services"                        31/12/2009            31/12/2008


- Trust management                                                                              4.048                 9.709
 - Loans, mortgages and CDF                                                                 26.756                    5.972
- Foreign                                                                                       3.670                 3.214
- other                                                                                         9.043             16.144
Total                                                                                      43.517                35.039




2.2 Fee and commission income: product and service distribution channels

The products and services are wholly located in its branches.


2.3 Fees and commission expense: breakdown



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


a) guarantees received                                                                          (529)                  (299)
b) credit derivatives                                                                                -                        -
c) management, brokerage and consultancy services:                                          ( 3.860 )             ( 1.119 )
     1.financial instruments trading                                                        ( 3.534 )             (1.033)
     2. currency trading                                                                             -                        -
     3. portfolio management:                                                                        -                        -
          3.1 owned                                                                                  -                        -
          3.2 delegated                                                                              -                        -
     4. custody and administration of securities                                                (326)                   (86)
     5. placement of financial instruments                                                           -                        -
     6. door-to-door sales of financial instruments, financial products,                             -                        -
     and services                                                                          (22.398)              ( 18.481 )
d) collection and payment services                                                          ( 4.159 )             ( 4.074 )
e) other services                                                          Total          (30.946)               (23.973)




The commission expense of trading are included in row c.1
covered brokerage fees claimed by the parent company for 2.9 million
EUR,    against 0.4 million recorded in 2008. These commissions were
previously covered in the fee for service.
The fees for other services are due mainly to brokerage
recognized in other subjects (4.1 million, including 0.8 million attributable to other Group companies).




                                                                                                                        167
Section 4                        Net profit (loss) from trading - Item 80-
4.1 The net result of trading:


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

1. Financial assets held for trading                                    16.777              156.381                  ( 3.161 )         (70.019)                  99.978           (751.550)
  1.1 Debt securities                                                          47                1.794                    (4)                  (19)                1.818               686
  1.2 Equity instruments                                                          -                 19                      -                  (28)                    (9)             (13)
  1.3 Units in investment funds                                                   -                    -                    -                     -                       -                -
  1.4 Loans                                                                       -                    -                    -                     -                       -                -
  1.5 Other                                                                16.730            154.568                 ( 3.157 )            (69.972)               98.169           (752.223)
2. Financial liabilities held for trading                                         -                    -                    -                     -                       -                -
  2.1 Debt securities                                                             -                    -                    -                     -                       -                -
  2.2 Paybles                                                                     -                    -                    -                     -                       -
  2.2 Other                                                                       -                    -                    -                     -                       -                -
3. Other financial assets and liabilities: exchange differences        X                    X                   X                     X                              (40)              375
exchange
4. Derivatives                                                             4.122                89.455               ( 3.937 )         (92.278)                 (96.440)           753.101
  4.1 Financial derivatives:                                                4.122               89.455               ( 3.937 )            (92.278)              (96.440)           753.101
      - On debt securities and interest rates                               2.380               87.979               ( 2.752 )            (90.743)                ( 3.136 )            274
      - On equity securities and stock market indices                       1.742                  906               ( 1.185 )               (967)                   496              (372)
      – On currency and gold                                       VALUE !             VALUE !              VALUE !               VALUE !                       (93.802)           753.199
      - Other                                                                     -                570                      -                (568)                        2                -
  4.2 Credit derivatives                                                          -                    -                    -                     -                       -                -
Total                                                                   20.899              245.836                  (7.098)          (162.297)                   3.498              1.926




The positive components of income on other financial assets, and indicated at line 1.5 of
table are supported mostly certificates of deposit are covered, and these components,
amounting to a total of 98.3 million EUR, are offset into the components
negative income achieved on domestic currency swaps to cover, insert the line 4.1
"Financial derivatives on currencies and gold for a total of 98.3 million EUR.




168
Section 5               Net profit (loss) from hedging – Item 90-
5.1 Net hedging gains (losses): breakdown



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


A. Income from:
A.1 Fair value hedging instruments                                       39.249               86.119
A.2 Hedged asset items (in fair value hedge relationship)                    6.454            45.190
A.3 Hedged liability items (in fair value hedge relationship)            13.217                       -
A.4 Cash-flow hedging derivatives                                                -                    -
A.5 Assets and liabilities denominated in currency                               -                    -
Total income from hedging activities (A)                                58.920              131.309
B. Expenses from:
B.1 Hedging derivatives at fair value                                   (17.459)             ( 45.036 )
B.2 Hedged asset items (in fair value hedge relationship)               ( 10.011 )                    -
B.3 Hedged liability items (in fair value hedge relationship)           (26.383)             ( 92.464 )
B.4 Cash-flow hedging derivatives                                                -                    -
B.5 Assets and liabilities denominated in currency                               -                    -
Total expenses from hedging activities (B)                             ( 53.853 )          (137.500)
C. Profit (loss) from hedging activities (A-B)                            5.067              ( 6.191 )




                                                                                                  169
Section 6                        Gains (losses) on disposals / repurchases - Item 100-
6.1 Gains (losses) on disposals/repurchases: breakdown


                                                            31/12/2009                                            31/12/2008

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


Financial assets
1. Loans to banks                                       -                 -                       -           -                 -                       -
2. Loans to customers                                   -                 -                       -           -         ( 4.251 )              ( 4.251 )
3. Financial assets available for sale                  -                 -                       -           -                 -                       -

      3.1 Debt securities                               -                 -                       -           -                 -                       -

      3.2 Equity securities                             -                 -                       -           -                 -                       -
      3.3 Units in investment funds                     -                 -                       -           -                 -                       -
      3.4 Loans                                         -                 -                       -           -                 -                       -
4. Financial assets held to maturity                    -                 -                       -           -                 -                       -

Total assets                                            -                 -                       -           -         ( 4.251 )             ( 4.251 )
Financial liabilities
1. Due to banks                                         -                 -                       -           -                -                        -
2. Due to customers                                     -                 -                       -           -                -                        -
3. Titles movement                                    789         ( 2.820 )              ( 2.031 )        1.262             (97)                1.165
Total liabilities                                     789         ( 2.820 )             ( 2.031 )         1.262             (97)               1.165




During the year, were not carried out operations for the sale or repurchase of loans
having an impact on the income statement.




170
Section 8               Net write-downs/ write-backs for impairment - Item 130-

8.1 Net impairment adjustments to loans: breakdown


                                                   Write-downs (1)                                                                          Write-backs (2)

                                               Specific                                                                                                                                                Total                Total
 Transactions/Income items                                                                                               Specific                                      Portfolio
         Income                                                                                                                                                                                      31/12/2009           31/12/2008
                                                                                 Portfolio
                                Cancellation                  Other
                                                                                                              From interest other                             From interest other

A. Loans to banks                                  -                         -                           -                     -                       -                       -                 -                    -                19

  Loans                                            -                         -                           -                     -                       -                       -                 -                    -                19

  - Debt securities                                -                         -                           -                     -                       -                       -                 -                    -                   -
B. Loans to customers                   (19.237)                 ( 95.226 )                (22.458)                    6.541                  20.680                           -                 -        (109.700)             ( 58.072 )
  Loans                                 (19.237)                 ( 95.226 )                (22.458)                    6.541                  20.680                           -                 -        (109.700)             ( 58.072 )

  - Debt securities                                -                         -                           -                     -                       -                       -                 -                    -                   -
C. Total                               (19.237)                  ( 95.226 )              (22.458)                      6.541                  20.680                           -                 -       (109.700)             ( 58.053 )




8.2 Net value adjustments due to impairment of available-for- sale financial assets: breakdown

                                                            Write-downs (1)                                       Write-backs (2)


                                                                      Specific                                          Specific
    Transactions/Income items                                                                                                                                 31/12/2009            31/12/2008


                                                       Cancellation                Other                     FROM INTEREST
                                                                                                                                       OTHER WRITE-BACKS


A. Debt securities                                                       -                           -                     -                        -                          -                 -

B. Equity securities                                                     -                   (134) X                               X                                   (134)                     -

C. Units in UCITS                                                        -                           -X                                             -                          -                 -

D. Loans to banks                                                        -                           -                     -                        -                          -                 -

E. Loans to customers                                                    -                           -                     -                        -                          -                 -

Total                                                                    -                   (134)                         -                        -                  (134)                     -




The adjustments recorded at December 31, 2009 relate to the equity interests acquired in the face of restructuring credit classified
in the portfolio available for sale, obtained the devaluation was considered durable and is therefore recognized in the income statement.

                                                                                                                                                                                                                                    171
8.3 Net value adjustments due to impairment of held-to-maturity financial assets: breakdown

There are no adjustments for impairment of financial assets held to maturity.


8.4 Net impairment adjustments to other financial transactions: breakdown


                                                    Write-downs (1)                                                                  Write-backs (2)



                                                Specific                                                             Specific                                  Portfolio
  Transactions/Income items                                                                                                                                                                    31/12/2009               31/12/2008
                                                                                   Portfolio

                                   Write-offs                  Other                                       FROM INTEREST        OTHER WRITE-BACKS      FROM INTEREST       OTHER WRITE-BACKS


A. Guarantees given                                -                   (408)                           -                   -                   -                       -             911                     503                 1.764

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

C. Commitments to disburse funds                   -                           -               ( 1.381 )                   -                   -                       -                -              ( 1.381 )                         -

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

E. Total                                           -                   (408)                   ( 1.381 )                   -                   -                       -             911                    (878)                1.764




           172
Section 9                    Administrative expenses - Item 150-
9.1 Personnel expenses: breakdown



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


1) Employees                                                                                  (272.436)                 (285.228)
  b) social contributions                                                                      (185.826)                 (193.412)
  b) social security charges                                                                    ( 51.201 )                   ( 54.147 )
  c) termination indemnities                                                                               -                    (179)
  d) pension costs                                                                                         -                          -
  e) provision for staff severance pay                                                              (2.782)                   ( 4.391 )
  f) Provision for treatment of retirement payments and similar obligations:                               -                          -
    - defined contribution                                                                                 -                          -
       - defined benefit                                                                                   -                          -
  g) payments to external supplementary pension funds:                                          (24.375)                     (23.653)
    - defined contribution                                                                      (24.375)                     (23.653)
       - defined benefit                                                                                   -                          -
  h) costs associated with equity-based payments                                                           -                          -
  2) Other personnel                                                                                ( 8.252 )                 (9.446)
Other personnel activities                                                                          ( 9.574 )            ( 11.101 )
3) Directors                                                                                        (1.436)                  (1.297)
Retired personnel                                                                                     (423)                    (365)
Recovery of costs for employees seconded to other companies                                         11.283                   12.428
Recovery of costs for employees of third parties seconded to the company                            ( 5.492 )                ( 2.519 )

                                                                               Total          (278.078)                 (288.082)




The cost for other staff has been reduced in particular for the use of child workers
Interim occurred in 2009, which resulted in lower costs for 1.6 million EUR.


9.2 Average number of employees by category



                                                                                       31/12/2009               31/12/2008


1) EMPLOYEES                                                                                         3.469                    3.571
     a) executives                                                                                       56                       50

     b) total officials                                                                              1.521                    1.500

           - 3rd and 4th level                                                                          617                      611

     c) remaining personnel                                                                          1.892                    2.021

2) OTHER PERSONNEL                                                                                     210                      232




The staff includes staff seconded to other companies and the company
excludes employees seconded to other companies. The item "Other staff"
include administrators, auditors, workers with temporary contracts and other
employees.




                                                                                                                                173
9.3 Defined-benefit company pension funds: total cost
There are no funds for defined benefit company pension.



9.4 Other benefits to employees



                                                                  31/12/2009           31/12/2008


Incentives and income support funds                                              142                  332
Expenditure on food stamps                                                     4.713                4.665

Insurance costs                                                                2.859                2.540
Medical Service                                                                    8                   10

Other benefits to employees                                                      530                1.899
Total                                                                          8.252                9.446




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




174
9.5 Other administrative expenses: breakdown



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


  A. Other administrative costs                                     (203.603)            (212.136)
  Rent payable                                                        ( 35.556 )           (29.025)
  Professional services and advice                                     (3.986)              ( 4.557 )
  Fees lease hardware, software and other goods                        (1.539)              (1.057)
  Maintenance hardware, software and other goods                       ( 2.153 )            ( 2.415 )
  Conduction properties                                                ( 9.283 )            ( 8.383 )
  Maintenance buildings and equipment                                  ( 4.016 )            ( 4.205 )
  Counting, transport and management values                            ( 5.176 )            (4.678)
  Membership fees                                                      ( 2.105 )            (1.193)
  Information and surveys                                              (2.649)              ( 3.145 )
  Books and periodicals                                                    (258)                (303)
  Postal                                                               ( 8.548 )            ( 8.411 )
  Prepaid insurance premiums                                           ( 8.802 )            (8.256)
  Advertising and promotion                                            ( 2.745 )            ( 3.331 )
  Representation                                                           (142)                (182)
  Telephone and data transmission                                      ( 6.168 )            ( 7.940 )
  Outsourcing Services                                                 ( 9.523 )            ( 7.915 )
  Travel expenses                                                      ( 3.100 )            ( 3.279 )
  Service fees made by group companies                                (86.940)             (91.582)
  Cost of debt                                                         ( 5.912 )            ( 3.843 )
  Printing, stationery and mat. Consumption                            (1.915)              (2.658)
  Transport and removals                                               (1.028)              ( 1.063 )
  Security                                                             (1.977)              ( 2.120 )
  Transaction costs of aggregation UBI                                         -           (12.476)
  Other costs                                                               (82)                (119)
  B. Indirect taxes                                                  ( 42.663 )           (43.377)
  Indirect taxes and duties                                            (1.878)                  (602)
  Stamp duty                                                          ( 34.351 )           (34.742)
  I.C.I. (local property tax)                                               (36)                 (36)
  - Other taxes                                                        (6.398)              (7.997)
  Total                                                             (246.266)            (255.513)




With effect from 1st January 2009 was repealed exemption from VAT provided
art. 6 Law 133/1999 for the supply of services within banking groups.
The income statement impact resulting from the tax amounts to 8775
(in thousands of EUR.




                                                                                                 175
Section 10                       Net provisions for risks and charges
                                 Item 160-
10.1 Net provisions for risks and charges: breakdown


                                                                                                                                             Provisions
                                                                                    Provisions                 REALLOCATIONS
                                                                                                                                                    net


Legal disputes                                                                                   (3.670)                   2.202                          ( 1.468 )
Payroll costs                                                                                              -                     -                               -
Other provisions                                                                                 ( 1.464 )                 2.390                             926
        referred to actions to void                                                                 (449)                  1.798                          1.349
Total                                                                                            ( 5.134 )                 4.592                           (543)




Section 11                       Net impairment adjustments/write-backs on tangible assets
                                 Item 170-
11.1 Impairments/write-backs on property, plant and equipment: breakdown


                                                                      Specific adjustments
                                             Amortization                                    Write-backs           Net profit (loss)
            Assets/Income items                                       for impairment                                                              31/12/2008
                                                   (A)                                               C)                (CB)
                                                                               (B)


A. Tangible assets
  A.1 Owned by company                                 ( 4.357 )                         -                     -               ( 4.357 )                    ( 2.050 )
        – Used in the business                         ( 4.357 )                         -                     -               ( 4.357 )                    ( 2.050 )
        - Held for investment                                   -                        -                     -                         -                           -
  A.2 Acquired in financial lease                           ( 161 )                   (81)                     -                 (242)                         (452)
        – Used in the business                              ( 161 )                   (81)                     -                 (242)                         (452)
        – For investment                                        -                        -                     -                         -                           -
Total                                                  ( 4.518 )                      (81)                     -               (4.599)                     ( 2.502 )




176
Section 13                  Other operating expenses and income - Item 190-
13.1 Other operating expenses: breakdown



                           - other operating expenses                    31/12/2009                 31/12/2008


Leasing fees                                                                             (43)                         (4)
Charges for cash contracts of public bodies                                             ( 546 )                    (374)
Charges for exchange with predated value date                                      (1.642)                   (10.225)
Depreciation of leasehold improvements                                             (1.220)                       (1.622)
Other                                                                              (4.298)                       ( 7.873 )
Total                                                                              ( 7.749 )                (20.098)




13.2 Other operating income: breakdown



                      - other operating income                           31/12/2009                 31/12/2008



Rental income from properties                                                             84                              3
Recovery of stamp duty and tax replacement                                         39.098                        41.540
Recovery of expenses and other income on deposits and current accounts                 6.980                      7.380
Income from exchange with predated value date                                          1.691                      9.624
Commissions on repayment charges                                                            -                             -
Income from securitization                                                                  -                             -
Recovery of costs by group companies                                                      77                       359
Other income and expense recoveries                                                16.712                        16.537
Total                                                                             64.642                     75.443




                      Imbalance charges / income                                  56.893                     55.345




Section 17                  Section 17 - Gains (losses) on disposals of investments - Item 240-
17.1 Profit (loss) on disposal of investments: breakdown



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



A. Properties                                                                                   -                         -
  - Gains from disposals                                                                        -                         -

  - Losses from disposals                                                                       -                         -

B. Other assets                                                                          (12)                      (42)

  - Gains from disposals                                                                        -                         -

  - Losses from disposals                                                                (12)                      (42)
Net profit (loss)                                                                        (12)                      (42)




                                                                                                                    177
Section 18                  Income taxes                  of the period              operations
                            - ITEM 260 -
18.1 Tax expense (income) related to profit or loss from continuing operations: breakdown



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


1. Current taxes(-)                                                      (126.220)              (210.569)
2. Change in prior period income taxes (+/–)                                   2.525                        -

3. Reduction in current taxes (+)                                                    -                      -

4. Changes to deferred tax assets (+/-)                                    12.117                ( 13.163 )

5. Changes to deferred tax liabilities (+/-)                                   7.656              27.720

6. Taxes for the year (-) (-1+/-2+3+/-4+/-5)                             (103.922)              (196.012)




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




178
18.2 Reconciliation between the theoretical and current tax burden


                                           IRES (CORPORATE INCOME TAX)    Tax                 IRES (CORPORATE %
                                                                                              INCOME TAX)

IRES theoretical tax charge                                                     282.937                        27.50%
                                                                                                 (77.808)
Increases permanent

 -   Non-deductible interest expense                                             11.319            ( 3.113 )    1.10%
 -   other expenses not deductible                                                3.659            (1.006)      0,35%
 -   substitute tax realignment under EC                                          5.293              (847)      0.30%

Decreases permanent
 -   IRAP paid in 2009 deductible                                                 ( 3.021 )          831       (0.29%)

 -   deductible donations                                                         ( 4.850 )        1.334       (0.47%)
 -   other decreases                                                              ( 2.461 )          677       (0.24%)
 -   deferred tax return from DL 185/08 realignments                              ( 5.293 )        1.390       (0.49%)

 -   ded no refunds IRES 2004-2007. IRAP DL 185/08 Art. 6                                 -        4.959       (1.75%)
 -   changes in taxes the previous year                                                   -          447       (0.16%)
IRES actual tax burden                                                          287.583          ( 73.136 )    25.85%


                                           IRAP (DIFFERENT FISCAL LAWS)   Tax                 IRAP (DIFFERENT %
                                                                                              FISCAL LAWS)

IRAP theoretical tax charge                                                     282.937                         4.82%
                                                                                                 (13.638)
Increases permanent

 -   Personnel costs are not deductible for IRAP purposes                       269.259          (12.978)       4.59%
 -   value adjustments on loans are not deductible for IRAP purposes            110.712            ( 5.336 )    1.89%
 -   other expenses not deductible                                               44.304            ( 2.135 )    0.75%

 -   Non-deductible interest expense                                             14.722              (710)      0.25%
Decreases permanent

 -   Cuneo tax deductions                                                        (73.599)          3.547       (1.25%)
 -   other changes                                                                ( 3.925 )          189       (0.07%)
 -   deferred tax return from DL 185/08 realignments                              ( 5.286 )          243       (0.09%)
 -   changes in taxes the previous year                                                 0               6         ns
Actual IRAP tax burden                                                          639.124          (30.812)      10.89%

 -   other taxes                                                                                       26      (0.01%)

Total effective tax burden IRES and IRAP                                        282.937         (103.922)      36.73%




The table above detailed analysis of the increases and
which contribute to reduction in actual tax burden.
Referring to the above mentioned paragraph of the Report on the Management for further information,
here we report that the request for reimbursement for non-deduction of IRAP IRES
in previous years has resulted in a benefit of approximately € 4,958 thousand,
corresponding to a lower tax rate of 1.75 percentage points.




                                                                                                                   179
Section 19                Profit (Loss) on asset disposal groups held for sale
                          net of tax - Page 280 -
Gains (losses) on groups of assets held for sale, after tax – Item 19.1:
      breakdown



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


  1. Income                                                                             -                 119
  2. Charges                                                                            -                    -
  3. Results of evaluations of assets and liabilities associated                        -                    -
  4. Profit (loss) from disposal                                                        -                    -
  5. Taxes and duties                                                                   -                 (33)
PROFIT (LOSS)                                                                           -                  86




19.2 Details of income taxes relating to groups of assets / liabilities
      being sold



                                                                   31/12/2009               31/12/2008


1. Current Taxation (-)                                                             -                       8
2. Changes to deferred tax assets (+/-)                                             -                       -
3. Change in deferred tax liabilities (/+–)                                         -                     25
4. Income tax for the year (-1 / -2 / -3)                                           -                     33




Section 21
                          Earnings per share

The Bank's shares are not traded on financial markets, therefore, is not provided
disclosures relating to earnings per share.

Please note that the dividend from the profit for 2008 amounted to €
0.0742 for each n. 1,256,300,000 shares comprising the share capital. For 2009
the proposal of allotment, under approval, provides for the payment of a dividend
equal to € 0.0356 for each n. 1,256,300,000 shares.




180
PART D - TOTAL EARNINGS

OVERVIEW OF THE OVERALL PROFITABILITY - COMPREHENSIVE INCOME


                                                                                                Tax
                                                   Items                     Gross Amount                         Net amount
                                                                                                  income




  10. Income (loss) for the period                                                 X                X                  179.015
       Other income components

  20. Financial assets available for sale:                                              176                (57)            119
         a) changes in fair value                                                       176                (57)            119
         b) reversal to profit and loss                                                     -                 -                -
            - impairment adjustments                                                        -                 -                -
            - gains / losses on disposal                                                    -                 -                -
         c) other changes                                                                   -                 -                -
  30. Tangible assets                                                                       -                 -                -
  40. Intangible assets                                                                     -                 -                -
  50. Hedging of foreign investments:                                                       -                 -                -
         a) changes in fair value                                                           -                 -                -
         b) reversal to profit and loss                                                     -                 -                -
         c) other changes                                                                   -                 -                -
  60. Cash flow hedges:                                                             12.127           ( 3.919 )            8.208
         a) changes in fair value                                                   12.127           ( 3.919 )            8.208
         b) reversal to profit and loss                                                     -                 -                -
         c) other changes                                                                   -                 -                -
  70. Exchange differences:                                                                 -                 -                -
         a) changes in value                                                                -                 -                -
         b) reversal to profit and loss                                                     -                 -                -
         c) other changes                                                                   -                 -                -
  80. Non-current assets held for sale:                                                     -                 -                -
         a) changes in fair value                                                           -                 -                -
         b) reversal to profit and loss                                                     -                 -                -
         c) other changes                                                                   -                 -                -
  90. Actuarial gains (losses) on defined benefit plans                                1.812            (498)             1.314
 100. Share of fair value reserves of equity investments valued at equity:                  -                 -                -
         a) changes in fair value                                                           -                 -                -
         b) reversal to profit and loss                                                     -                 -                -
            - impairment adjustments                                                        -                 -                -
            - gains / losses on disposal                                                    -                 -                -
         c) other changes                                                                   -                 -                -
 110. Total other income components                                                14.115            ( 4.474 )           9.641
 120. Comprehensive income (Items 10 + 110)                                                 x                 x        188.656




                                                                                                                         181
PART E - INFORMATION ON RISKS AND RELATED
          hedge
In compliance with current statutory provisions, the UBI has set up a system of
risk control that adjusts the integrated guidelines of the Control System
Interior, to be understood as organizational, regulatory and methodological in which all
Group companies must follow in order to allow the parent to be able to
exercise in cost-effective way, the activities of policy and strategic control,
managerial and technical-operational.

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

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

In this Part shall be provided information regarding risk profiles below
indicated, its management policies and coverage implemented by the Bank, the operation
in derivative financial instruments:
      a) credit risk;
      b) market risks:
            , Acting on the interest rate,
            , Acting on price,
            , Acting on 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 compliance with the
Legislative Decree No 32, February 2, 2007, implementing Directive
2003/51/EC.



Section 1           CREDIT RISK

Qualitative information

1. General aspects
The strategies and policies for the recruitment of credit risk and management tools
the same are defined in the Parent Company from the Risk of Capital & Policies
consultation with the Area Claims, the drafting of the policy also collaborate Macro Area
Commercial, Risk Management Area and Area Studies. In policy
credit is given particular attention to maintaining an appropriate profile
risk / return 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, the
families, entrepreneurs, professionals and small-medium enterprises. The particular
attention given to the maintenance of relations with customers and their


182
development over time, are a strong point of the group, encouraging the slaughter
information asymmetries and providing continuity of relationship and customer support itself,
in the longer term. Even in the complex business cycle in place, while
preserving the quality of assets, the Bank ensures adequate availability of credit
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 have defined specific Small Business
credit policies for steering development of the credit portfolio in terms of geographical area,
industry sector and credit rating. The credit policies in support network
determining the attractiveness of the goal of creating value for a particular
areas / sectors / counterparts and assessing the creditworthiness of the counterparties.

The credit policies have been developed based on:
        macro-economic forecasts used to assess the risk and
        Growth expectations for 2010, for the different sectors and geographical areas;
        forecasts of growth in lending, as defined by the rates
        expected growth for each sub-portfolio, geographic area, sector or class of
        - Rating;
        a model for the detection of clusters more geo-settoriali/rischio
        attractive.

Particular attention is given, finally, in defining the treatment of
new products, developing adequate information to senior management regarding compliance with
objective risk / return, calculation of minimum rates of delivery, quality of the borrower,
collateral received and expected recovery rates in case of insolvency.



2. Policies for managing credit risk
2.1 Organizational aspects
In the course of traditional credit intermediation, the Bank is exposed
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
lending is sensitive to the economy as a whole, the deterioration
the financial condition of counterparties (illiquidity, insolvency, etc..) or
change in their competitive position, technological or structural changes of
debtor firms, and other external factors (eg legislative changes, deterioration of
value of the securities linked to the performance of financial markets). A further element of
risk to which it pays particular attention, is the level of portfolio diversification
uses among different borrowers and among the several areas in which they operate.

The organizational model under which the units were structured governing
lending activity, 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,
        ·   Unit for the Management of Corporate Clients (CBU)
        ·   Unit for the Management of Private Clients (PBU).

The characteristics of this organizational model, besides allowing a strong homogeneity between
Claims on the structure of the parent company and other similar structures of the network banks, with
resulting linearity of the processes and optimization of information flows, have highlighted the
clear distinction between the functions of trade and credit. The granting of credit
is also differentiated by customer segment (Retail / Private and Corporate) and


                                                                                                  183
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 Clients, provides
Effective coordination and connection of the units operating in the jurisdiction. La
Parent Company, through the structures of the Area Claims, Risk Control and Macro Areas
Development and Strategic Planning Area, the Debt Collection and Audit of Parent
Group, oversees the management of policies, monitoring overall portfolio,
refinement of evaluation systems, management of the credit problem and the
compliance.
For all subjects (individuals or economic groups) with credit facilities in place for banks and
Group companies (including risk assets linked to the risk and the issuer
risk derivatives) total in excess of € 50 million, the parent must
approve an operational limit to be considered as an upper limit of reliability of
counterparty at the level of UBI.
Banks and the Group Companies also must apply to the parent expression
a non-binding advisory opinion prior to the face of any combination of: a) amounts
expectations and b) certain classes of internal ratings.

The structures through which to articulate banks and product companies take
skills and commercial credit policy and control responsibilities
directly on the activity and those established by the hierarchical units
employees. In particular, responsibility for managing and monitoring credit
performing loans is given, in the first instance, the relationship managers who maintain
daily relationship with customers and have an immediate perception of
any signs of trouble or deterioration in credit quality. However, all
employees of Group companies are required to report promptly all
information that may allow early recognition of difficulties or may
suggest different ways of managing relationships, participating - in fact - in the process of
monitoring.

In the second instance of the organizational unit that monitors the credit risk -
called Presidio Monitoring Credit Quality - carries out control,
supervision and analysis of positions "performing" in terms of analytical aggregates, with
intensity and depth graded according to risk bands allocated to counterparties and
andamentali gravity anomalies detected. The structure - not involved in iterating
deliberation of credit - on its own initiative or at the proposal, evaluates and provides (or
Bodies offers higher when the decision makers exceeds its competence)
appropriate classification of counterparties pejorative "performing" asking Area Loans -
Service Credits Italy - Staff Opinions of UBI Banca, in cases covered by the Regulation Trust,
the issue of prior opinion is not binding. Credits in Area of UBI Bank, the Service
Presidio and Monitoring Credit Quality has the task of coordination and definition of
guidelines for monitoring the loan portfolio, a garrison in the development of
tools for monitoring, control of credit policies and preparation of
management reporting.
2.2 Management, measurement and control
The Service     Credit risk of the parent company is responsible for producing
the information on the credit risks of the Bank, designed to monitor the progress of
riskiness of lending. The report - submitted quarterly to the Board of
Directors of the Bank - describe the evolution of the decay rates of
applications, illustrating the distribution by internal rating, LGD and Expected Loss and
then the evolution of the average riskiness of the loan portfolio, with focus on Market
Corporate and Retail Market, separately for companies and individuals.
The complex models that constitute the Group's internal rating system is managed
Area Risk Management and from the credits of the Parent.
In 2009, the continued refinement of the internal rating systems in use on the platform
target in order to make a more accurate measurement of credit is
individually at the single party that at the aggregate level. It was done in


184
particular models to refine some parts of Business Retail and Corporate, as well as
update the calibration of PD.

At present, the structure involves the use of automatic models for individuals and
smaller firms, models with automatic integration of the questionnaire
quality and form of geo-industry for medium-large, and a model
mainly for large judgmental expectations (ie economic groups with
credit lines in excess of 20 million EUR).

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
        based on variables of performance, risk, quality and budget, where
        present;
        rating change (override): request from the Manager's report, and
        Net Bank credit facilities central to the change of the rating calculated by the
        system;
        monitoring rating: verify rating andamentale recalculated periodically
        after the first disbursement, the annual review of the rating: Updating Data
        functional to the calculation of the ratings by stakeholders (eg Manager
        reports.

The units involved in the delivery and renewal of credit use
internal ratings, which are essential and indispensable elements of the 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
the rating, and managed through the application of practices Electronics Fido (PEF). The ratings are
used in both the management reporting system, is made of the information flows
facilities available to the Bank involved in the lending process.

The assignment of a rating class different from that calculated by the Rating System
Inside is based on the models adopted by proposing an override the rating.
These changes are motivated by the evaluation of information not already considered by
rating model, the model does not adequately weigh or whose future influence means
anticipate.

As prescribed by the Bank of Italy circular n.263/2006 on New regulations
Watch for the Banks, the Group will maintain the current standard methodology for
determination of regulatory capital. In particular, the class of regulatory
Exhibition "Companies and other entities" was chosen to take advantage, when available, of
external credit rating provided by Moody's and Lynx, recognized
ECAI (External Credit Assessment Institution) by the Bank of Italy.

For the process of calculating collective loans - in line with the
determinations made by the parent company - uses a methodology based on ratings
and internal estimates of loss given default (LGD), aligning mode
calculating this component of 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. The following are the
policy in place, with a nod to the main content:
        Credit policy, which outlines the development strategy of the corporate loan portfolio
        Group. Within the policy is normally also the risk of concentration
        single name, by setting maximum exposure limits on single
        counterparty in order to reduce the risk of instability that would result from high rates
        concentration on the major borrowers of loans;


                                                                                                    185
        Policy "Institutional Counterparty Risk and Country", which establishes rules and principles for
        management of credit granted to resident institutional clients and non-resident
        as well as ordinary customers residing in countries at risk;
        Policy of offering mortgages through brokers, which governs the conduct of redress
        external networks for the provision of loans to non-captive customers, in order to contain
        potential credit risks, operational risks and reputational risks;
        Policy on portability, renegotiation, substitution and early repayment of loans
        Customers' direct banking networks, which provides guidelines UBI
        for the implementation of portability of 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
        time reduction, and the associated costs of compliance and to provide the
        Group of the appropriate processes and tools for risk management related (to
        credit, operational and reputational);
        Policy on portability, renegotiation, substitution and early repayment of loans
        traded with brokered loans related to the operation on the basis of
        agreements between the companies / banks of the Group and specific distribution networks;
        Policy risk-adjusted        pricing     which defines the process of defining and
        logical implementation of risk adjusted pricing for different products
        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 activities of
        securitisations;
        Policy on residual risk, which defines the strategic guidelines relating to the management
        the "residual risk" by defining the process of controlling the acquisition and use
        mitigation techniques for credit risk mitigation in
        subject.


2.3 Technical Risk Mitigation Credit
The bank employs risk mitigation techniques typical of banking
acquired by the counterparty, for certain types of credit lines, collateral, real estate
and financial and personal guarantees.
The determination of the total amount of credit it gives the same
customer and / or group takes into account legal and economic criteria for the appropriate weighting
the different categories of risk and guarantees. In particular, the estimated value of
Collateral are applied to "waste" prudential, differentiated by type of security
(Mortgages, collateral in cash, pledges on financial instruments).

To ensure that the conditions required for general and specific
recognition of collateral for prudential purposes, are counted among the techniques of Credit
Risk Mitigation (CRM) - as required by the Bank of Italy Circular No 263
dated 27/12/2006 and subsequent updates - the UBI Group:
        redefined the processes of credit relating to the collection and management of guarantees. With
        particular reference to the mortgage, the Network Banks is no requirement
        insertion, into the computer application available to managers,
        all 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), elements
        crucial to the completion of the warranty.
        recovered for a Mortgage in place all the necessary information to
        ensure their eligibility in line with the provisions of Basel 2 in terms of
        specific requirements. This activity was completed in 2009.

In general, during 2009 have been consolidated and organizational solutions
information that allow the management of collateral according to defined processes, in phases
the development, enhancement and monitoring.


186
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
        Watch provisions replacing that time with the period of 90 days)
   ·    - Restructured loans,
   ·    doubtful loans ,
   ·    - non-performing loans.

In addition to these classes, there remains a case of problem loans related to "risk
country "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
shall, for the sole purpose of management, a division of the positions in which the temporary
objective difficulty of the situation is considered solved in a short time (usually in the 9
exceptionally be extended for a further month 3 months), calling it "substandard operational" and
remaining positions, which is considered appropriate for the disengagement from the relationship with a
extrajudicial recovery within a period of time greater. In addition, "spill
continued beyond the 180 days are subject to audit out to a limit
maximum of 60 days management, the return "performing" or switching to other states
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 performing loans
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 single
position, ensuring adequate coverage of expected losses.
The analysis of impaired loans is constantly carried out by individual units
operational risks and will oversee the parent company.
The resolution by the counterparts of the state of difficulty is the determining factor
the return of positions "performing", the event is heavily concentrated in the reports
to "continuous overdraft more than 180 days" and those "substandard operation."




                                                                                                  187
Quantitative information

A. CREDIT RISK

A.1 Impaired and performing loans: amounts, writedowns, changes, distribution by business activity/region
    territorial
A.1.1 Distribution of credit exposures by portfolio and credit quality (value)



                                                                                                            Exposures          Exposures
                         Portfolio/Quality                             Doubtful loans   Watch list loans                                       Other assets       Total
                                                                                                           restructured         past due


1. Financial assets held for trading                                                -            366                      14               -           50.079             50.459
2. Financial assets available for sale                                              -              -                       -               -           20.591             20.591
3. Financial assets held to maturity                                                -              -                       -               -                  -                -
4. Loans to banks                                                                   -            191                       -               -        5.727.895      5.728.086
5. Loans to customers                                                        248.498        336.718               243.516            120.486       19.010.193     19.959.411
6. Financial assets designated at fair value through profit and loss                -              -                       -               -                  -                -
7. Financial assets being sold                                                      -              -                       -               -                  -                -
8. Hedging derivatives                                                              -              -                       -               -          144.697        144.697
                                               Total 31/12/2009             248.498         337.275              243.530            120.486        24.953.455     25.903.244
                                               Total 31/12/2008             150.473         157.101                16.561            35.933        27.067.562     27.427.630




        188
A.1.2 Breakdown of credit exposures by portfolio and credit quality (gross and net values)


                                                                                               Impaired assets                                                             Performing
                                                                                                                                                                                                                              Total
                           Portfolio/quality
                                                                                                   Adjustments                                                           Adjustments                                     (NET EXPOSURE)
                                                                       Gross exposure                                    Net exposure            Gross exposure                                  Net exposure
                                                                                                   SPECIFIC                                                               Porfolio

1. Financial assets held for trading                                                    380                          -                  380              X                    X                             50.079                    50.459
2. Financial assets available for sale                                                     -                         -                       -               20.591                          -              20.591                    20.591
3. Financial assets held to maturity                                                       -                         -                       -                       -                       -                       -                       -
4. Loans to banks                                                                       191                          -                  191              5.727.895                           -           5.727.895              5.728.086
5. Loans to customers                                                          1.195.158                 (245.942)                 949.216              19.082.479                (72.284)              19.010.195             19.959.411
6. Financial assets designated at fair value through profit and loss                       -                         -                       -           X                    X                                      -                       -
7. Financial assets being sold                                                             -                         -                       -                       -                       -                       -                       -
8. Hedging derivatives                                                                     -                         -                       -           X                    X                            144.697                144.697
                                                   Total 31/12/2009            1.195.729                (245.942)                 949.787              24.830.965                 (72.284)             24.953.457              25.903.244

                                                   Total 31/12/2008              530.188                (170.120)                 360.068              26.691.982                 ( 59.218 )           27.067.562              27.427.630




                                                                                                                                                                                                                                       189
A.1.3 Cash and off-balance sheet loans to banks: gross and net values


                                                                Exposures         Specific adjustments Specific adjustments                        Exposures
                Types of exposure/amounts
                                                                   Gross exposure     SPECIFIC            portfolio                                   NET EXPOSURE

A. Cash exposures

      a) Doubtful loans                                                         -                            -                X                                      -
      b) Doubtful loans                                                     191                              -                X                                191
      c) Restructured loans                                                     -                            -                X                                      -
      d) Past-due loans                                                         -                            -                X                                      -
      e) Other assets                                                 5.727.895               X                                              -          5.727.895

                                                  Total A            5.728.086                               -                               -         5.728.086
B. “Off-balance sheet” exposures
      a) Impaired                                                               -                            -                X                                      -
      b) Other                                                          303.367               X                                              -            303.367
                                                  Total B              303.367                               -                               -            303.367
                                                Total A+B            6.031.453                               -                               -         6.031.453




Since there were no impaired loans from banks or adjustments accordingly
value is to omit the publication of the tables referred to in paragraphs A.1.4 and A.1.5 of
Circular 262.



A.1.6 Cash and off-balance sheet loans to customers: gross and net values
      net


                                                                   Exposures           Specific adjustments          Adjustments to                Exposures
                    Types of exposure/amounts
                                                                      Gross exposure        SPECIFIC                       Porfolio                   Net exposure


A. Cash exposures
      a) Doubtful loans                                                     438.782                   (190.284)                X                           248.498
      b) Doubtful loans                                                     377.834                    ( 41.116 )              X                           336.718
      c) Restructured loans                                                 254.596                    ( 11.081 )              X                           243.515
      d) Past-due loans                                                     123.946                      ( 3.461 )             X                           120.485
      e) Other assets                                                    19.103.069               X                                   (72.284)          19.030.785

                                                      Total A           20.298.227                    (245.942)                    (72.284)             19.980.001
B. “Off-balance sheet” exposures
    a) Impaired                                                              35.172                      ( 1.132 )             X                             34.040
    b) Other                                                              3.234.775               X                                    ( 4.408 )          3.230.367

                                                      Total B            3.269.947                      ( 1.132 )                     ( 4.408 )          3.264.407
                                                    Total A+B           23.568.174                    (247.074)                    (76.692)             23.244.408




190
A.1.7 Cash loans to customers: changes in impaired loans


                                                                                                    Exposures             Exposures
                                    Type                   Doubtful loans       Watch list loans
                                                                                                   restructured             past due


A. Opening gross exposure                                          289.293            182.222                20.629                37.949
    - of which: exposures sold but not derecognized                         -                 -                       -                      -
B. Increases                                                       231.203            518.110               273.384               511.994
     B.1 transfers from performing loans                             80.676           293.447               199.899                502.992
     B.2 transfers from other impaired exposure                    137.115            192.578                31.233                     698
     B.3 Other increases                                             13.412             32.085               42.252                    8.304
C. Decreases                                                       ( 81.714 )        (322.498)              (39.417)             (425.997)
     C.1 transfers to performing loans                                      -         ( 52.067 )              ( 4.851 )          (198.108)
     C.2 write-offs                                                (33.795)                   -                   (214)                      -
     C.3 recoveries                                                (47.919)           (22.095)              ( 31.261 )                 (947)
     C.4 sales proceeds                                                     -                 -                       -                      -
     C.5 transfers to other impaired exposure categories                    -        (146.096)                        -          (215.528)
     C.6 other decreases                                                    -        (102.240)                ( 3.091 )            ( 11.414 )
D. Closing gross exposure                                          438.782            377.834               254.596               123.946
    - of which: exposures sold but not derecognized                         -              421                        -                  46




                                                                                                                                       191
A.1.8 Balance-sheet exposure to customers: changes in overall value adjustments


                                                                                                                           Exposures            Exposures
                                           Type                                   Doubtful loans       Watch list loans
                                                                                                                          restructured            past due


Total initial adjustments                                                              (138.915)            ( 25.121 )             ( 4.068 )            ( 2.016 )
     - of which: exposures sold but not derecognized                                               -                 -                     -                      -

B. Increases                                                                           ( 105.186 )          ( 35.633 )             ( 7.451 )            ( 3.615 )
B.1 write-downs                                                                          ( 84.521 )         (32.555)                ( 4.284 )            ( 2.800 )
B.2 transfers from other impaired exposure                                               ( 12.031 )             (708)               ( 2.088 )                   (6)
B.3 other increases                                                                       (8.634)             ( 2.370 )             (1.079)                   (809)
Decreases                                                                                 53.817             19.638                      438                 2.170
C.1 write-backs on valuation                                                                8.039                971                      20                   247
C.2 write-backs from recoveries                                                           11.983               5.443                     204                   314
C.3 write-offs                                                                            33.795                     -                   214                      -
C.4 transfers to other impaired exposure                                                           -          13.224                       -                 1.609
C.5 other decreases                                                                                -                 -                     -                      -
D. Final total adjustments                                                             (190.284)            ( 41.116 )            ( 11.081 )            ( 3.461 )
     - of which: exposures sold but not derecognized                                               -               (9)                     -                      -




        192
A.2 Classification of exposure by external and internal ratings
A.2.1 Banking group – Breakdown of balance sheet and off-balance sheet exposure by external ratings

                                                                                                                                     External rating classes
                         Exposures                                                                                                                                                                                                                    No rating                          Total
                                                                      Class 1                      Class 2                        Class 3                    Class 4                       Class 5                       Class 6

A. Guaranteed cash loans:                                                        745.854               7.365.778                     1.346.374                    1.819.400                          705.892                         21.229               13.703.561                      25.708.088

B. Derivatives                                                                     1.111                         9.413                      4.885                    12.426                              228                               -                  167.093                        195.156
        B.1 Financial derivatives                                                  1.111                         9.413                        4.885                  12.426                              228                               -                  167.093                        195.156
        B.2 Credit derivative contracts                                                 -                             -                           -                              -                           -                             -                               -                           -
C. Guarantees given                                                              540.029                 583.937                       124.250                       61.919                           26.839                            190                   758.180                      2.095.344
D. Commitments to disburse funds                                                  67.090                 291.211                         56.738                    218.466                            84.099                            154                   559.515                      1.277.273
                                                     Total                   1.354.084                 8.250.339                     1.532.247                    2.112.211                          997,054                         21.573               15.188.349                      29.275.861




A.2.2 Banking Group- Balance Sheet and off-Balance Sheet exposure by internal rating class (book values)


                                                                                                                                   Internal rating classes
            Exposures                                                                                                                                                                                                                                                  No rating            Total

                                    Rating 1       Rating 2       Rating 3         Rating 4       Rating 5         Rating 6        Rating 7       Rating 8        Rating 9           Rating 10       Rating 11       Rating 12        Rating 13        Rating 14

A. Cash exposures                     305.957        336.185       1.699.783        1.919.779      1.765.290        3.726.789        956.149          1.241.872    2.385.877          1.581.905       1.168.940         359.689          922.677          195.012         7.142.184          25.708.088

B. Derivatives                          1.622             77          6.585             6.660          5.238              5.308             235          8.695          3.615               786           1.966              46                699            353              153.271            195.156
  B.1 Financial derivatives              1.622            77           6.585            6.660          5.238              5.308             235          8.695          3.615               786           1.966              46                699            353              153.271            195.156
  B.2 Credit derivative contracts              -              -              -                -              -                -               -              -               -                   -               -               -                -                -                -                      -

C. Guarantees given                    72.303        239.228        395.206           133.216        475.706         214.297          30.813           139.357         83.795            30.367          43.220           6.192           11.363           10.023              210.260           2.095.345

D. Commitments to disburse funds       22.312           3.837       302.682           131.275           550          127.291         101.184            99.476       101.324             72.855         134.454           3.212           50.932            7.111              118.771           1.277.264
Total                                 402.195        579.327       2.404.255        2.190.929      2.246.785        4.073.684       1.088.382         1.489.400    2.574.611          1.685.914       1.348.579         369.138          985.671          212.498         7.624.486          29.275.852




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 guarantees the comparability of exposures
counterparties accounted for different internal rating models.
The six classes of scale teacher less risky have a concentration equal to 52.5% of total balance sheet exposures with
internal rating, while 6% is concentrated in the two classes most risk. Class 6 is the largest in terms of exposure.




                                                                                                                                                                                                                                                                                                    193
A.3 Distribution of guaranteed exposures by type of guarantee
A.3.1 Credit exposures to banks

                                                                                                                                                                                                                         Personal guarantees (2)


                                                                                          Real guarantees (1)


                                         VALUE                                                                                                                                Credit derivatives                                                                                        Endorsement credits
                                                                                                                                                                                                                                                                                                                                                    Total (1) + (2)
                                   net exposure
                                                                                                                                                                                              Other derivatives


                                                                                                                    Other guarantees                   Governments and central     OTHER PUBLIC ENTITIES                           Other               Governments and central   OTHER PUBLIC ENTITIES                         Other
                                                                  Buildings                     Securities                                   CLN                                                             Banks                                                                                       Banks
                                                                                                                         real                                                       advertising                                  subjects                                        advertising                                 subjects
                                                                                                                                                       banks                                                                                           banks

                                                                                                                                                                                                                                                               central

1. Guaranteed cash loans:

 1.1. completely secured                           3.004                              -                 3.004                            -         -                      -                         -                -                             -                      -                          -                   -                      -             3.004
         - of which impaired                               -                          -                         -                        -         -                      -                         -                -                             -                      -                          -                   -                      -                  -
 1.2 partially guaranteed                     374.902                                 -              374.305                             -         -                      -                         -                -                             -                      -                          -                   -                      -           374.305
         - of which impaired                               -                          -                         -                        -         -                      -                         -                -                             -                      -                          -                   -                      -                  -
2. Off-balance guaranteed loans:

 2.1. completely secured                                      -                       -                         -                        -         -                      -                         -                -                             -                      -                          -                   -                      -                          -
         - of which impaired                                  -                       -                         -                        -         -                      -                         -                -                             -                      -                          -                   -                      -                          -
 2.2 partially guaranteed                                     -                       -                         -                        -         -                      -                         -                -                             -                      -                          -                   -                      -                          -
         - of which impaired                                  -                       -                         -                        -         -                      -                         -                -                             -                      -                          -                   -                      -                          -




A.3.2 Secured off-balance sheet loans to banks and customers




                                                                                                                                                                                                                         Personal guarantees (2)


                                                                                          Real guarantees (1)


                                                                                                                                                                              Credit derivatives                                                                                        Endorsement credits
                                         VALUE

                                                                                                                                                                                              Other derivatives                                                                                                                                      Total (1) + (2)
                                   net exposure



                                                                                                                    Other guarantees                   Governments and central     OTHER PUBLIC ENTITIES                           Other               Governments and central   OTHER PUBLIC ENTITIES                         Other
                                                                  Buildings                     Securities                                   CLN                                                             Banks                                                                                       Banks
                                                                                                                         real                                                       advertising                                  subjects                                        advertising                                 subjects

                                                                                                                                                       banks                                                                                           banks

                                                                                                                                                               central                                                                                         central


1. Guaranteed cash loans:


 1.1. completely secured                 (13.019.068)                 9.025.529                      487.155                     4.286             -                      -                         -                -                             -                      -               8.830                  5.862          2.891.524                  12.423.186

         - of which impaired                (450.812)                   281.123                         5.817                        42            -                      -                         -                -                             -                      -                          -                   -        151.754                       438.736

 1.2 partially guaranteed                 (1.063.419)                   109.150                      193.768                     1.518             -                      -                         -                -                             -                      -                    155               4.399            318.320                       627.310

         - of which impaired                (212.132)                    10.171                      104.664                             -         -                      -                         -                -                             -                      -                          -              18              13.565                      128.418

2. Off-balance guaranteed loans:

 2.1. completely secured                  (1.124.913)                   385.782                        44.631                   10.375             -                      -                         -                -                             -                      -                    409               6.653            458.892                      906.742

         - of which impaired                  (10.275)                        1.732                     1.974                       79             -                      -                         -                -                             -                      -                       -                      -              6.041                      9.826

 2.2 partially guaranteed                   (191.243)                         7.003                    19.201                    2.053             -                      -                         -                -                             -                      -                       -              5.862              32.278                       66.397

         - of which impaired                      ( 1.120 )                           -                      32                     32             -                      -                         -                -                             -                      -                       -                      -                 14                          78




                  194
B. DISTRIBUTION AND CONCENTRATION OF CREDIT EXPOSURE
B.1 Sectoral distribution of credit exposures in cash and off-balance "to customers (value
    ANNUAL REPORT)
                                                            Governments and central banks                                                          Other public entities                                                                 Financial companies                                                          Insurance companies                                                                       Non-financial companies                                                                Other entities




              Exposures/Counterparties




                                                                                      SPECIFIC




                                                                                                                                                                        SPECIFIC




                                                                                                                                                                                                                                                              SPECIFIC




                                                                                                                                                                                                                                                                                                                                              SPECIFIC




                                                                                                                                                                                                                                                                                                                                                                                                                                        SPECIFIC




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         SPECIFIC
                                                     Net exposure




                                                                                                                                    Net exposure




                                                                                                                                                                                                                        Net exposure




                                                                                                                                                                                                                                                                                                       Net exposure




                                                                                                                                                                                                                                                                                                                                                                                                 Net exposure




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Net exposure
                                                                        Write-downs




                                                                                                     Write-downs




                                                                                                                                                          Write-downs




                                                                                                                                                                                       Write-downs




                                                                                                                                                                                                                                                Write-downs




                                                                                                                                                                                                                                                                             Write-downs




                                                                                                                                                                                                                                                                                                                                Write-downs




                                                                                                                                                                                                                                                                                                                                                             Write-downs




                                                                                                                                                                                                                                                                                                                                                                                                                          Write-downs




                                                                                                                                                                                                                                                                                                                                                                                                                                                     Write-downs




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Write-downs




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Write-downs
                                                                                                                   portfolio




                                                                                                                                                                                                     portfolio




                                                                                                                                                                                                                                                                                           portfolio




                                                                                                                                                                                                                                                                                                                                                                           portfolio




                                                                                                                                                                                                                                                                                                                                                                                                                                                                   portfolio




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        portfolio
A. Cash exposures
A.1 Doubtful loans                                                  -                            -           X                                     -                               -          X                              7.956                    ( 2.970 )                     X                                    -                               -           X                          154.943                 (112.839)                             X                   85.599                   (74.475)                                X

A.2 Doubtful loans                                                  -                            -           X                                     -                               -          X                              3.055                    ( 3.811 )                     X                                    -                               -           X                          254.487                   ( 29.341 )                          X                   79.176                        ( 7.964 )                          X
A.3 Restructured loans                                              -                            -           X                                     -                               -          X                              1.684                                  (89)            X                                    -                               -           X                          240.055                   (10.992)                            X                       1.776                                           -            X

A.4 Past-due exposures                                              -                            -           X                                     -                               -          X                                        808                          (21)            X                                    -                               -           X                           70.797                        ( 2.055 )                      X                   48.880                        (1.385)                            X
A.5 Other exposures                                  24.371                     X                                              -    28.890                        X                                              -   1.274.819                          X                         ( 2.369 )            20.480                           X                                              (1)   11.780.949                          X                    ( 47.367 )               5.901.276                          X                       (22.546)
Total A                                              24.371                                      -                             -    28.890                                         -                             -   1.288.322                     ( 6.891 )                   ( 2.369 )               20.480                                            -                             (1) 12.501.231                   (155.227)                    ( 47.367 )                6.116.707                   (83.824)                       (22.546)
B. Off-balance sheet exposures

B.1 Doubtful loans                                                  -                            -           X                                     -                               -          X                                        100                               -          X                                    -                               -           X                                 2.997                             ( 561 )            X                                     37                                (4)             X

B.2 Doubtful loans                                                  -                            -           X                                     -                               -          X                                          -                               -          X                                    -                               -           X                           15.491                                  (500)              X                                    122                                (1)             X

B.3 Other impaired assets                                           -                            -           X                                     -                               -          X                                         14                               -          X                                    -                               -           X                           15.279                                       (66)          X                                      -                                  -             X
B.4 Other exposures                                  21.577                     X                                              -    59.987                        X                                         (17)       159.158                          X                                  (194)             6.892                      X                                              (2)    2.845.348                           X                       ( 3.854 )              137.405                           X                                      (342)

Total B                                              21.577                                      -                             -    59.987                                         -                       (17)       159.272                                            -                 (194)           6.892                                         -                             (2)   2.879.115                       ( 1.127 )                 ( 3.854 )                 137.564                                            (5)                 (342)

                            Total (A+B) 31/12/2009   45.948                                      -                              -   88.877                                         -                       (17)      1.447.594                     ( 6.891 )                   ( 2.563 )               27.372                                            -                             (3) 15.380.346                   (156.354)                    ( 51.221 )                6.254.271                   (83.829)                       (22.888)
                            Total (A+B) 31/12/2008   22.947                                      -                       (73)       91.096                                         -                       (66)      1.208.086                     ( 2.862 )                   ( 3.137 )               28.589                                            -                      (11) 15.829.211                         (100.104)                    ( 45.027 )                6.466.201                   ( 67.865 )                     (14.857)




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        195
B.2 Breakdown of credit exposure in cash and off-balance "to customers (value
    ANNUAL REPORT)

                                                                    ITALY                                 OTHER EU COUNTRIES                                 AMERICA                                   ASIA                              REST OF THE WORLD

             Exhibitions / Regions
                                                                        Write-downs                                     Write-downs                               Write-downs                              Write-downs                                Write-downs
                                                     Net exposure                                  Net exposure                               Net exposure                            Net exposure                             Net exposure
                                                                            total                                         total                                     total                                     total                                     total

A. Cash exposures
A.1 Doubtful loans                                            248.382               (190.213)                     116                  (67)                   -                   -                    -                   -                      -                 (3)
A.2 Doubtful loans                                            336.667                (41.088)                      50                  (27)                   1                 (1)                    -                   -                      -                   -
A.3 Restructured loans                                        243.515                ( 11.081 )                     -                     -                   -                   -                    -                   -                      -                   -
A.4 Past-due exposures                                        119.976                  ( 3.441 )                  336                  (17)                   5                   -                    -                   -                   168                  (3)
A.5 Other exposures                                        18.997.132                ( 71.851 )              29.316                   (426)              2.093                  (4)                  316                   -                  1.928                 (3)
TOTAL A                                                   19.945.672                (317.674)                29.818                   (537)              2.099                  (5)                  316                   -                  2.096                 (9)
B. Off-balance sheet exposures
B.1 Doubtful loans                                              3.133                    ( 565 )                    -                     -                   -                   -                    -                   -                      -                   -
B.2 Doubtful loans                                             15.613                    ( 501 )                    -                     -                   -                   -                    -                   -                      -                   -
B.3 Other impaired assets                                      15.294                     (66)                      -                     -                   -                   -                    -                   -                      -                   -
B.4 Other exposures                                         3.228.730                  ( 4.407 )              1.210                       -                   3                   -                  424                 (1)                      -                   -
TOTAL B                                                     3.262.770                 ( 5.539 )               1.210                       -                   3                   -                  424                 (1)                      -                   -
                            Total (A+B) 31/12/2009        23.208.442                (323.213)                31.028                   (537)              2.102                  (5)                  740                 (1)                  2.096                 (9)
                            Total (A+B) 31/12/2008        23.604.932                (232.543)                34.591               (1.447)                4.245                  (5)                  100                   -                  2.262                 (4)




          196
B.3 Distribution of credit exposure in cash and off-balance to banks (value
    ANNUAL REPORT)

                                                                     ITALY                         OTHER EU COUNTRIES                               AMERICA                                    ASIA                          REST OF THE WORLD

             Exhibitions / Regions
                                                                          Write-downs                              Write-downs                            Write-downs                              Write-downs                              Write-downs
                                                      Net exposure                          Net exposure                             Net exposure                           Net exposure                             Net exposure
                                                                             total                                   total                                  total                                     total                                   total


A. Cash exposures
A.1 Doubtful loans                                                    -                 -                      -                 -                    -                 -                      -                 -                      -                 -
A.2 Doubtful loans                                                    -                 -                      -                 -                  191                 -                      -                 -                      -                 -
A.3 Restructured loans                                                -                 -                      -                 -                    -                 -                      -                 -                      -                 -
A.4 Past-due exposures                                                -                 -                      -                 -                    -                 -                      -                 -                      -                 -
A.5 Other exposures                                           5.717.069                 -                  8.129                 -                    1                 -                  1.743                 -                   953                  -
TOTAL A                                                      5.717.069                  -              8.129                     -                  192                 -              1.743                     -                   953                  -
B. Off-balance sheet exposures
B.1 Doubtful loans                                                    -                 -                      -                 -                    -                 -                      -                 -                      -                 -
B.2 Doubtful loans                                                    -                 -                      -                 -                    -                 -                      -                 -                      -                 -
B.3 Other impaired assets                                             -                 -                      -                 -                    -                 -                      -                 -                      -                 -
B.4 Other exposures                                            262.467                  -             26.337                     -              2.966                   -                  9.732                 -                  1.865                 -
TOTAL B                                                        262.467                  -             26.337                     -              2.966                   -              9.732                     -              1.865                     -
                             Total (A+B) 31/12/2009          5.979.536                  -             34.466                     -              3.158                   -             11.475                     -              2.818                     -
                             Total (A+B) 31/12/2008          7.571.569                  -             29.281                     -              1.769                   -             15.955                     -              1.692                     -




                                                                                                                                                                                                                                                  197
B.4 Major risks




                                                                              31/12/2009

Amount                                                                              1.632.437
Number                                                                                      5



Compared to last year, it shows the aggregate output of a counterparty, and
the entry of three new counterparts.




198
C. Securitisation and the sale of
    ASSETS


C.1 Securitisation

The Bank is not required to complete this section as it carries out
"Subservicer" embedded panel of securitized loans as part of Albenza 3 Srl
on behalf of the Parent UBI Bank, whose financial statements are set forth all necessary
information on securitization transactions and other servicing activities.

For reference, it should be noted that the transaction was closed Albenza 2 Srl
in advance as required by contract, and therefore its activity is servicing
ceased at the end of the immediately preceding quarter (December 31, 2008). For this
operation, the right to repurchase the loans contractually due to UBI Banca
ScpA, was sold to Banca Popolare di Bergamo SpA, which has proceeded to enter
active in their assigned claims.



Sales of C.2

There were no disposals.



C.3 covered bond

During the month of September 2009, the Parent Company has released the first issue
public, for a billion EUR, of covered bonds (covered bonds)
Within a maximum of 10 billion EUR, launched in July 2008
the first sales of loans from two banks of the Group, Banco di Brescia and Banca
European Region.
At the end of 2009 he joined the program also Banca Popolare di Bergamo,
giving a proportion of its mortgage portfolio at the service of the second tranche
public, again for a billion EUR, created in December 2009.

The following are the characteristics of two issues:

(amounts in EUR)

              Company name                       Date of      Date of        Value           Coupon
                                                ISSUE         maturity      Nominal

UBI BANCA CB 3.625% 23/09/2016                 23/09/2009   23/09/2016    1.000.000.000 36.250.000,00
UBI BANCA CB 4.000% 16/12/2019                 16/12/2009   16/12/2019    1.000.000.000 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, UBI
Finance Ltd., which as a guarantor of emissions made by UBI Bank has taken a
portfolio of residential mortgage loans sold by banks participating in the Group's network
program both as originator bank, which as Lending Banks.

The role of the Master Servicer, the Calculation Agent and the Cash Manager is held by the Parent
while the Paying Agent is done by Bank of New York, UBI Banca was then delegated to
Banks Originator, as Sub-servicer, the servicing activities related to management
revenues and relationships with customers relating to the portfolio sold by each
Originator.



                                                                                                    199
At the time, as noted above, are part of the Banco di Brescia, Banca
European Region and Banca Popolare di Bergamo, which play the role of counterparties
swap agreements with swap guarantee balance in the special purpose vehicle in order to normalize
cash flows generated by the mortgage portfolio.

The portfolio of emissions to ensure that accounting has remained active in writing
each transferor Bank, at 31/12/2009 amounted to over € 3.6 billion of debt
residual capital, of which 1.33 billion originated by Banca Popolare di Bergamo.

In 2009 this portfolio has generated total collections (for the month of
December being the sale of the portfolio BPB occurred on December 1) to
about 20 million €.

For the activity of subservicing the Bank receives a fee, the extent of the
managed portfolio and receipts, and this fee, which for 2009 is referred to only
December, amounts to about € 45,000.




200
D. MODELS FOR THE MEASUREMENT OF CREDIT RISK
With regard to measuring credit risk, the Group has developed a model of UBI
Portfolio Credit Risk through the calculation engine PCRE Algorithmics: it treats the
overall risk of a portfolio model and capturing the component
resulting from the correlation of default of counterparties, credit and calculating the losses
capital to credit risk at the portfolio level. The model includes, among other inputs,
variables of PD and LGD used for supervisory purposes.



Section 2 Market risks

2.1 Interest rate risk and price risk - Portfolio
     regulatory trading

Qualitative information
A.      General aspects
The compilation of this section shall be considered as instruments only
Financial within the "trading book capital" as defined in
Rules governing regulatory reporting market risk. Consequently,
are allocated in the budget excluding any transactions in the trading book but
falling o in the definition of supervision. These operations include
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
measuring interest rate risk. "




                                                                                                 201
Quantitative information

1.1      Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities
         cash financial assets and financial derivatives - Euro Currency


                                                                                      From 3 months to        From 6 months       From 1 year            From 5 years                                 Life
                   TYPE / RESIDUAL LIFE         On demand       To 3 months                                                                                                    Over 10 years
                                                                                            TO 6 MONTHS        to 1 year           to 5 years            to 10 years                               unspecified maturity


1. Cash assets                                              -                     -                       -                   -                      -                     -                   -                   -
1.1 Debt securities                                         -                     -                       -                   -                      -                     -                   -                   -
    - With early redemption option                          -                     -                       -                   -                      -                     -                   -                   -
    - other                                                 -                     -                       -                   -                      -                     -                   -                   -
1.2 Other assets                                            -                     -                       -                   -                      -                     -                   -                   -
2. Cash liabilities                                         -                     -                       -                   -                      -                     -                   -                   -
2.1 Repos                                                   -                     -                       -                   -                      -                     -                   -                   -
2.2 Other liabilities                                       -                     -                       -                   -                      -                     -                   -                   -
3. Financial derivatives                                    -      (1.305.839)                   26.383               45.844               432.015              417.101              322.509                61.919
3.1 With underlying security                                -                     -                       -                   -                      -                     -                   -                   -
- Options                                                   -                     -                       -                   -                      -                     -                   -                   -
    - Long positions                                        -                     -                       -                   -                      -                     -                   -                   -
    - Short positions                                       -                     -                       -                   -                      -                     -                   -                   -
- Other derivatives                                         -                     -                       -                   -                      -                     -                   -                   -
    - Long positions                                        -                     -                       -                   -                      -                     -                   -                   -
    - Short positions                                       -                     -                       -                   -                      -                     -                   -                   -
3.2 Without underlying security                             -       (1.305.839)                  26.383               45.844               432.015              417.101               322.509               61.919
- Options                                                   -                     -                       -                   -                      -                     -                   -                   -
    - Long positions                                        -          326.498                  126.594               79.301               251.535              127.602                34.956                   296
    - Short positions                                       -          326.498                  126.594               79.301               251.535              127.602                34.956                   296
- Other derivatives                                         -       (1.305.839)                  26.383               45.844               432.015              417.101               322.509               61.919
    - Long positions                                        -        1.704.540                  550.910              150.529             1.096.265             1.556.014              359.303               61.919
    - Short positions                                       -        3.010.379                  524.527              104.685               664.250             1.138.913               36.794                      -




         202
1.2      Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities
         cash financial assets and financial derivatives - Currency U.S. DOLLAR


                                                                                       Over 3 months       From 6 months        From 1 year           From 5 years                               Life
                   TYPE / RESIDUAL LIFE           On demand       To 3 months                                                                                            Over 10 years
                                                                                        to 6 months         to 1 year            to 5 years           to 10 years                            unspecified
                                                                                                                                                                                             maturity

1. Cash assets                                                -                    -                   -                    -                     -                  -                   -                       -
1.1 Debt securities                                           -                 -                      -                   -                      -                  -                   -                       -
    - With early redemption option                            -                 -                      -                   -                      -                  -                   -                       -
    - other                                                   -                 -                      -                   -                      -                  -                   -                       -
1.2 Other assets                                              -                 -                      -                   -                      -                  -                   -                       -
2. Cash liabilities                                           -                    -                   -                    -                     -                  -                   -                       -
2.1 Repos                                                     -                 -                      -                   -                      -                  -                   -                       -
2.2 Other liabilities                                         -                 -                      -                   -                      -                  -                   -                       -
3. Financial derivatives                                      -             347                        -                    -                     -                  -                   -                       -
3.1 With underlying security                                  -                 -                      -                   -                      -                  -                   -                       -
- Options                                                     -                 -                      -                   -                      -                  -                   -                       -
    - Long positions                                          -                 -                      -                   -                      -                  -                   -                       -
    - Short positions                                         -                 -                      -                   -                      -                  -                   -                       -
- Other derivatives                                           -                 -                      -                   -                      -                  -                   -                       -
    - Long positions                                          -                 -                      -                   -                      -                  -                   -                       -
    - Short positions                                         -                 -                      -                   -                      -                  -                   -                       -
3.2 Without underlying security                               -              347                       -                   -                      -                  -                   -                       -
- Options                                                     -                 -                      -                   -                      -                  -                   -                       -
    - Long positions                                          -           29.198                25.663             44.058                     2.360                  -                   -                       -
    - Short positions                                         -           29.198                25.663             44.058                     2.360                  -                   -                       -
- Other derivatives                                           -              347                       -                   -                      -                  -                   -                       -
    - Long positions                                          -           64.798                 9.732              5.207                         -                  -                   -                       -
    - Short positions                                         -           64.451                 9.732              5.207                         -                  -                   -                       -




                                                                                                                                                                                                           203
1.3      Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities
         cash financial assets and financial derivatives - JAPAN YEN Currency


                                                                                      Over 3 months       From 6 months       From 1 year       From 5 years                               Life
                   TYPE / RESIDUAL LIFE           On demand       To 3 months                                                                                      Over 10 years
                                                                                       to 6 months         to 1 year           to 5 years       to 10 years                            unspecified
                                                                                                                                                                                       maturity

1. Cash assets                                                -                   -                   -                   -                 -                  -                   -                 -
1.1 Debt securities                                           -                   -                   -                   -                 -                  -                   -                 -
    - With early redemption option                            -                   -                   -                   -                 -                  -                   -                 -
    - other                                                   -                   -                   -                   -                 -                  -                   -                 -
1.2 Other assets                                              -                   -                   -                   -                 -                  -                   -                 -
2. Cash liabilities                                           -                   -                   -                   -                 -                  -                   -                 -
2.1 Repos                                                     -                   -                   -                   -                 -                  -                   -                 -
2.2 Other liabilities                                         -                   -                   -                   -                 -                  -                   -                 -
3. Financial derivatives                                      -                   -                   -                   -                 -                  -                   -                 -
3.1 With underlying security                                  -                   -                   -                   -                 -                  -                   -                 -
- Options                                                     -                   -                   -                   -                 -                  -                   -                 -
    - Long positions                                          -                   -                   -                   -                 -                  -                   -                 -
    - Short positions                                         -                   -                   -                   -                 -                  -                   -                 -
- Other derivatives                                           -                   -                   -                   -                 -                  -                   -                 -
    - Long positions                                          -                   -                   -                   -                 -                  -                   -                 -
    - Short positions                                         -                   -                   -                   -                 -                  -                   -                 -
3.2 Without underlying security                               -                   -                   -                   -                 -                  -                   -                 -
- Options                                                     -                   -                   -                   -                 -                  -                   -                 -
    - Long positions                                          -                 451             6.008              9.763                    -                  -                   -                 -
    - Short positions                                         -                 451             6.008              9.763                    -                  -                   -                 -
- Other derivatives                                           -                   -                   -                   -                 -                  -                   -                 -
    - Long positions                                          -           12.316               20.811              1.194                    -                  -                   -                 -
    - Short positions                                         -           12.316               20.811              1.194                    -                  -                   -                 -




         204
1.4      Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities
         cash financial assets and financial derivatives - Australian Dollar Currency


                                                                                   Over 3 months       From 6 months       From 1 year        From 5 years                                 Life
                   Type logy / Remaining         On demand       To 3 months                                                                                     I n addition 10
                                                                                    to 6 months         to 1 year            to 5 years       to 10 years                              unspecified
                                                                                                                                                                 years
                                                                                                                                                                                       maturity

1. Cash assets                                               -                 -                   -                   -                  -                  -                     -                  -
1.1 Debt securities                                          -                 -                   -                   -                  -                  -                     -                  -
    - Bear with option Refundable Advance                    -                 -                   -                   -                  -                  -                     -                  -
    - other                                                  -                 -                   -                   -                  -                  -                     -                  -
1.2 Other assets                                             -                 -                   -                   -                  -                  -                     -                  -
2. Cash liabilities                                          -                 -                   -                   -                  -                  -                     -                  -
P 2.1. CT passive                                            -                 -                   -                   -                  -                  -                     -                  -
2.2 Other liabilities                                        -                 -                   -                   -                  -                  -                     -                  -
3. Financial derivatives                                     -                 -                   -                   -                  -                  -                     -                  -
3.1 With underlying security                                 -                 -                   -                   -                  -                  -                     -                  -
- Options                                                    -                 -                   -                   -                  -                  -                     -                  -
    - Long positions                                         -                 -                   -                   -                  -                  -                     -                  -
    - Short positions                                        -                 -                   -                   -                  -                  -                     -                  -
- Other derivatives                                          -                 -                   -                   -                  -                  -                     -                  -
    - Long positions                                         -                 -                   -                   -                  -                  -                     -                  -
    - Short positions                                        -                 -                   -                   -                  -                  -                     -                  -
3.2 Without underlying security                              -                 -                   -                   -                  -                  -                     -                  -
- Options                                                    -                 -                   -                   -                  -                  -                     -                  -
    - Long positions                                         -            7.496              8.746              8.746                     -                  -                     -                  -
    - Short positions                                        -            7.496              8.746              8.746                     -                  -                     -                  -
- Other derivatives                                          -                 -                   -                   -                  -                  -                     -                  -
    - Long positions                                         -            1.187                    -                   -                  -                  -                     -                  -
    - Short positions                                        -            1.187                    -                   -                  -                  -                     -                  -




                                                                                                                                                                                                     205
1.5      Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities
         cash financial assets and financial derivatives - Currency Norwegian Krone NOK


                                                                                    Over 3 months       From 6 months       From 1 year       From 5 years                               Life
                   TYPE / RESIDUAL LIFE           On demand       To 3 months                                                                                    Over 10 years
                                                                                     to 6 months         to 1 year           to 5 years       to 10 years                            unspecified
                                                                                                                                                                                     maturity

1. Cash assets                                                -                 -                   -                   -                 -                  -                   -                 -
1.1 Debt securities                                           -                 -                   -                   -                 -                  -                   -                 -
    - With early redemption option                            -                 -                   -                   -                 -                  -                   -                 -
    - other                                                   -                 -                   -                   -                 -                  -                   -                 -
1.2 Other assets                                              -                 -                   -                   -                 -                  -                   -                 -
2. Cash liabilities                                           -                 -                   -                   -                 -                  -                   -                 -
2.1 Repos                                                     -                 -                   -                   -                 -                  -                   -                 -
2.2 Other liabilities                                         -                 -                   -                   -                 -                  -                   -                 -
3. Financial derivatives                                      -                 -                   -                   -                 -                  -                   -                 -
3.1 With underlying security                                  -                 -                   -                   -                 -                  -                   -                 -
- Options                                                     -                 -                   -                   -                 -                  -                   -                 -
    - Long positions                                          -                 -                   -                   -                 -                  -                   -                 -
    - Short positions                                         -                 -                   -                   -                 -                  -                   -                 -
- Other derivatives                                           -                 -                   -                   -                 -                  -                   -                 -
    - Long positions                                          -                 -                   -                   -                 -                  -                   -                 -
    - Short positions                                         -                 -                   -                   -                 -                  -                   -                 -
3.2 Without underlying security                               -                 -                   -                   -                 -                  -                   -                 -
- Options                                                     -                 -                   -                   -                 -                  -                   -                 -
    - Long positions                                          -                 -                   -                   -                 -                  -                   -                 -
    - Short positions                                         -                 -                   -                   -                 -                  -                   -                 -
- Other derivatives                                           -                 -                   -                   -                 -                  -                   -                 -
    - Long positions                                          -                 -            15.060                     -                 -                  -                   -                 -
    - Short positions                                         -                 -            15.060                     -                 -                  -                   -                 -




         206
1.6      Regulatory trading portfolio: distribution by maturity (the date of repricing) of assets and liabilities
         cash financial assets and financial derivatives - OTHER CURRENCIES


                                                                                       Over 3 months       From 6 months       From 1 year       From 5 years                               Life
                   TYPE / RESIDUAL LIFE           On demand       To 3 months                                                                                       Over 10 years
                                                                                        to 6 months         to 1 year           to 5 years       to 10 years                            unspecified
                                                                                                                                                                                        maturity

1. Cash assets                                                -                    -                   -                   -                 -                  -                   -                   -
1.1 Debt securities                                           -                    -                   -                   -                 -                  -                   -                   -
    - With early redemption option                            -                    -                   -                   -                 -                  -                   -                   -
    - other                                                   -                    -                   -                   -                 -                  -                   -                   -
1.2 Other assets                                              -                    -                   -                   -                 -                  -                   -                   -
2. Cash liabilities                                           -                    -                   -                   -                 -                  -                   -                   -
2.1 Repos                                                     -                    -                   -                   -                 -                  -                   -                   -
2.2 Other liabilities                                         -                    -                   -                   -                 -                  -                   -                   -
3. Financial derivatives                                      -            (272)                       -                   -                 -                  -                   -                   -
3.1 With underlying security                                  -                    -                   -                   -                 -                  -                   -                   -
- Options                                                     -                    -                   -                   -                 -                  -                   -                   -
    - Long positions                                          -                    -                   -                   -                 -                  -                   -                   -
    - Short positions                                         -                    -                   -                   -                 -                  -                   -                   -
- Other derivatives                                           -                    -                   -                   -                 -                  -                   -                   -
    - Long positions                                          -                    -                   -                   -                 -                  -                   -                   -
    - Short positions                                         -                    -                   -                   -                 -                  -                   -                   -
3.2 Without underlying security                               -            (272)                       -                   -                 -                  -                   -                   -
- Options                                                     -                    -                   -                   -                 -                  -                   -                   -
    - Long positions                                          -            1.597                 2.183              2.139                    -                  -                   -                   -
    - Short positions                                         -            1.597                 2.183              2.139                    -                  -                   -                   -
- Other derivatives                                           -            (272)                       -                   -                 -                  -                   -                   -
    - Long positions                                          -            1.212                 1.103                743                    -                  -                   -                   -
    - Short positions                                         -            1.484                 1.103                743                    -                  -                   -                   -




                                                                                                                                                                                                  207
2.    Regulatory trading portfolio: distribution of exposures in securities
      of equity indices for the major countries of the listing market

Please note that there are no exposures in equities and equity indices.


3.    Regulatory trading portfolio: internal models and other methodologies
      sensitivity analysis
The trading supervision of Banca Popolare di Bergamo is made up of
swaps and cap / floor negotiations with the parent company. Please note that at the end of December, the VaR
Total trading book amounted to approximately € 532 with a NAV of approximately
Approximately € 418,553 (average VaR in 2009 of € 23,762).




208
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
         interest and price risk
The risk of interest rate is defined as the risk of a current or prospective
variation in net interest income and economic value of the Bank, following
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
          measuring the change in asset values in parallel shock scenarios
          the yield curve of reference;
     ·    to carry through an analysis of static gap (that is, assuming that the positions
          are constant over the period), an analysis of sensitivity of net interest income
          (Cash flow risk), which focuses on changes in income over a period
          twelve-month parallel shock scenarios assessed in the yield curve
          reference.

The sensitivity analysis of the economic value includes an estimate of the impacts arising from
phenomenon of early repayment of mortgages and loans, regardless of the presence of
contractually defined repayment options. This estimate is supported by analysis
statistics and quality conducted in 2008 on the main banks of UBI.
The estimate of variation margin includes both an estimate of the effect
reinvestment / refinancing flows due to the effect related to the elasticity and
stickiness of sight items. The factors of elasticity and the delay in rate
contract is differentiated by business segment for the classification of customers.


B.       Hedging fair value
During the year 2009 were carried out to cover specific and general
through derivative financial instruments to reduce exposure to adverse changes
in fair value (fair value hedge) due to interest rate risk. In particular, they
subject coverage of the fixed-rate and mixed rate exceeding
year (hedged) for a total of approximately 1.92 billion EUR in the denomination, and
bonds (hedging) and zero coupon fixed rate for a total
approximately 2.78 billion EUR in the denomination. The total amount of coverage at 31
December 2009 amounted respectively to 2.748 billion (fixed-rate and mixed) and
5.854 million (bonds). The derivatives used were of the type
Interest rate swaps.
The verification is carried out from the covers of the effectiveness of the Risk Management
Parent. In detail, the effectiveness of inspections are carried out as
provided by the International Accounting Standards by the activation of the prospective tests
coverage, followed by back-testing performed on a monthly basis.


C.       Hedging of cash flows
In the financial statements of Banca Popolare di Bergamo are the effects of reports of "roof
cash "in relation to the emissions of certificates of deposit in foreign currency
Japanese (JPY), emissions covered by the Domestic Currency Swap (DCS).


                                                                                                  209
Quantitative information
1.1        Banking portfolio: distribution by maturity (repricing date) of financial assets and liabilities-
           CURRENCY: EURO


                                                                              Over 3 months         From 6 months        From 1 year            From 5 years                               Life
                TYPE / RESIDUAL MATURITY   On demand       To 3 months                                                                                              Over 10 years
                                                                               to 6 months           to 1 year            to 5 years            to 10 years                             unspecified maturity



1. Cash assets                              13.062.710           9.923.847             905.552               46.391               459.329                246.365            821.122                      -
1.1 Debt securities                                    -            20.089                    501                   -                       -                   -                   -                    -
    - with early redemption option                     -                  -                     -                   -                       -                   -                   -                    -
    - other                                            -            20.089                    501                   -                       -                   -                   -                    -
1.2 Loans to banks                            5.428.215            279.590             101.460                   616                    3.963                   -                   -                    -
1.3 Loans to customers                        7.634.495          9.624.168             803.591                45.775               455.366               246.365            821.122                      -
    - current accounts                        4.883.560                   -                     -                   -                       -                   -                   -                    -
    - other loans                             2.750.935          9.624.168             803.591                45.775               455.366               246.365            821.122                      -
      - with early redemption option           270.980           8.696.898             688.509                36.010               440.536               246.365            821.122                      -
      - other                                 2.479.955            927.270             115.082                 9.765                   14.830                   -                   -                    -
2. Cash liabilities                         12.943.613           2.960.032           1.777.156            1.669.183             3.421.254                 15.695                251                      -
2.1 Deposits from customers                  12.876.559            260.670              97.776                      -                       -                   -                   -                    -
    - current accounts                       12.599.700                   -                     -                   -                       -                   -                   -                    -
    - other payables                           276.859             260.670              97.776                      -                       -                   -                   -                    -
      - with early redemption option                   -                  -                     -                   -                       -                   -                   -                    -
      - other                                  276.859             260.670              97.776                      -                       -                   -                   -                    -
2.2 Due do banks                                65.962                    -                     -                   -                       -                   -                   -                    -
    - current accounts                          49.348                    -                     -                   -                       -                   -                   -                    -
    - other payables                            16.614                    -                     -                   -                       -                   -                   -                    -
2.3 Debt securities in issue                      1.092          2.699.362           1.679.380             1.669.183             3.421.254                15.695                251                      -
    - with early redemption option                     -                  -                     -                   -                       -                   -                   -                    -
    - other                                       1.092          2.699.362           1.679.380             1.669.183             3.421.254                15.695                251                      -
2.4 Other liabilities                                  -                  -                     -                   -                       -                   -                   -                    -
    - with early redemption option                     -                  -                     -                   -                       -                   -                   -                    -
    - other                                            -                  -                     -                   -                       -                   -                   -                    -
3. Financial derivatives                               -       (1.305.838)          (2.198.200)            ( 131.111 )          3.426.158              (237.070)                    -                    -
3.1 With underlying security                           -                  -                     -                   -                       -                   -                   -                    -
    - Option                                           -                  -                     -                   -                       -                   -                   -                    -
      + Long positions                                 -                  -                     -                   -                       -                   -                   -                    -
      + Short positions                                -                  -                     -                   -                       -                   -                   -                    -
    - Other derivatives                                -                  -                     -                   -                       -                   -                   -                    -
      + Long positions                                 -                  -                     -                   -                       -                   -                   -                    -
      + Short positions                                -                  -                     -                   -                       -                   -                   -                    -
3.2 Without underlying security                        -        (1.305.838)         (2.198.200)            ( 131.111 )           3.426.158              (237.070)                   -                    -
    - Options                                          -                  -             10.377               (10.377)              (10.377)                     -                   -                    -
      + Long positions                                 -            13.809              10.377                      -                       -                   -                   -                    -
      + Short positions                                -            13.809                      -             10.377                   10.377                   -                   -                    -
    - Other derivatives                                -        (1.305.838)         (2.208.577)            (120.734)             3.436.535              (237.070)                   -                    -
      + Long positions                                 -         3.455.586             319.594               760.290             4.337.975                 3.487                    -                    -
      + Short positions                                -         4.761.424           2.528.171               881.024              901.440                240.557                    -                    -



              210
1.2        Banking portfolio: distribution by maturity (repricing date) of financial assets and liabilities-
           CURRENCY: DOLLARS


                                                                     Over 3 months   From 6 months   From 1 year        From 5 years                      Life
               TYPE / RESIDUAL MATURITY   On demand   To 3 months                                                                      Over 10 years
                                                                      to 6 months    to 1 year        to 5 years        to 10 years                    unspecified
                                                                                                                                                       maturity

1. Cash assets                            101 267        36 205             880              15
1.1 Debt securities-
    - with early redemption option-
    - other-
1.2 Loans to banks-                        75.596
1.3 Loans to customers                      25,671        36,205            880              15
    -C/c                                    12,833
    - Other loans                          12 838         36 205            880              15
      - with early redemption option-
      - Other                              12 838         36 205            880              15
2. Cash liabilities                        85 584         43 207          7.296              41                    35
2.1 Customer deposits                       74 .019           44
    -C/c                                    74 .019           44
    - other payables-
      - with early redemption option-
      - other-
2.2 Due to banks                             9,909         34,720          6,953
    - current accounts-
    - Other liabilities                      9,909          34,720        6,953
2.3 Debt securities                          1,656          8,443           343              41                    35
    - with early redemption option-
    - Other                                  1.656          8.443           343              41                    35
2.4 Other liabilities-
    - with early redemption option-
    - other-
3. Financial derivatives-
3.1 With underlying security-
    - Options-
      + Long positions-
      + Short positions-
    - Other derivatives-
      + Long positions-
      + Short positions-
3.2 Without underlying security-
    - Options-
      + Long positions-
      + Short positions-
    - Other derivatives-
      + Long positions-
      + Short positions-




                                                                                                                                                                     211
1.3             Banking portfolio: distribution by maturity (repricing date) of financial assets and liabilities-
                Currency of denomination SWISS FRANC


                                                                                 Over 3 months                From 6 months   From 1 year   From 5 years                       Life
                TYPE / RESIDUAL MATURITY   On demand       To 3 months                                                                                     Over 10 years
                                                                                  to 6 months                 to 1 year        to 5 years   to 10 years                    unspecified maturity



1.   Cash assets                                 5 082               9175                        1056

1.1 Debt securities-
     - with early redemption option-

     - other-

1.2 Loans to banks-                              5.073

1.3 Loans to customers                                 9             9,175                       1,056

     - current accounts-

     - Other loans                                     9             9,175                       1,056

        - with early redemption option-

        - Other                                        9             9175                        1,056

2.   Cash liabilities                            4389                8130                        3397

2.1 Deposits from customers-                     4.288

     -C/c                                        4.288

     - other payables-

        - with early redemption option-

        - other-

2.2 Due from banks -                                                     7426                      3370

     - current accounts-

     - Other liabilities                                                 7,426                     3,370

2.3 Debt securities                               101                    704                             27

     - with early redemption option-

     - Other                                      101                     704                            27

2.4 Other liabilities-

     - with early redemption option-

     - other-

3.   Financial derivatives-

3.1 With underlying security-

     - Options-

        + Long positions-

        + Short positions-

     - Other derivatives-

        + Long positions-

        + Short positions-

3.2 Without underlying security-

     - Options-

        + Long positions-

        + Short positions-

     - Other derivatives-

        + Long positions-

        + Short positions-




                212
1.4             Banking portfolio: distribution by maturity (re-pricing date) of financial assets and liabilities-
                Currency of denomination JAPANESE YEN


                                                                           Over 3 months           From 6 months       From 1 year       From 5 years                               Life
                TYPE / RESIDUAL MATURITY   On demand      To 3 months                                                                                           Over 10 years
                                                                            to 6 months            to 1 year                to 5 years   to 10 years                            unspecified maturity



1.   Cash assets                               1,813               9,161                  1,044

1.1 Debt securities-
     - with early redemption option-

     - other-

1.2 Loans to banks-                            1.513

1.3 Loans to customers                              300           9,161                   1,044

     - current accounts-

     - Other loans                                  300           9,161                    1,044

       - with early redemption option-

       - Other                                   300              9,161                   1,044

2.   Cash liabilities                          5.150            514.522              245.814                       52 351                               4959

2.1 Deposits from customers-                        616

     -C/c                                       616

     - other payables-

       - with early redemption option-

       - other-

2.2 Due from banks -                                            11,172                     338

     - current accounts-

     - Other liabilities -                                      11,172                     338

2.3 Debt securities                          4.534             503.350               245.476                       52 351                                4959

     - with early redemption option-

     - Other                                4.534              503.350               245.476                       52 351                                4959

2.4 Other liabilities-

     - with early redemption option-

     - other-

3.   Financial derivatives-                                   802.512

3.1 With underlying security-

     - Options-

       + Long positions-

       + Short positions-

     - Other derivatives-

       + Long positions-

       + Short positions-

3.2 Without underlying security-                              802.512

     - Options-

       + Long positions-

       + Short positions-

     - Other derivatives -                                   802,512

       Long positions -                                      802,512

       + Short positions-




                                                                                                                                                                                                       213
1.5        Banking portfolio: distribution by maturity (repricing date) of financial assets and liabilities–
           Other currencies of denomination


                                                                         Over 3 months        From 6 months   From 1 year   From 5 years                      Life
               TYPE / RESIDUAL MATURITY   On demand     To 3 months                                                                        Over 10 years
                                                                          to 6 months         to 1 year        to 5 years   to 10 years                    unspecified
                                                                                                                                                           maturity

1. Cash assets                                 12 536            3,030                   36
1.1 Debt securities-
    - with early redemption option-
    - other-
1.2 Loans to banks-                           12.050
1.3 Loans to customers                          486             3,030                    36
    -C/c                                         317
    - Other loans                               169             3,030                    36
      - with early redemption option-
      - Other                                   169             3,030                    36
2. Cash liabilities                           12,141            5,197
2.1 Deposits from customers-                 12.043
    -C/c                                     12,043
    - other payables-
      - with early redemption option-
      - other-
2.2 Due to banks                                 93             4,301
    -C/c                                         93
    -other payables                                            4.301
2.3 Debt securities                              5               896
    - with early redemption option-
    - Other                                      5              896
2.4 Other liabilities-
    - with early redemption option-
    - other-
3. Financial derivatives-
3.1 With underlying security-
    - Options-
      + Long positions-
      + Short positions-
    - Other derivatives-
      + Long positions-
      + Short positions-
3.2 Without underlying security-
    - Options-
      + Long positions-
      + Short positions-
    - Other derivatives-
      + Long positions-
      + Short positions-




           214
2. Bank portfolio: internal models and other methods for sensitivity analysis
The exposure to interest rate risk of Banca Popolare di Bergamo, measured
through sensitivity analysis in a scenario of parallel shift of the yield curve equal to
100 bp, came at the end of the period, before the effect arising from the phenomenon on
lapses, to € -34.5 million (-59.3 million EUR at December 31, 2008). La
risk measure, the net impact of the phenomenon on extinctions
assets, amounted to € -12.5 million (-39.7 million EUR at December 31, 2008), that
to 0.59% of regulatory capital, compared to the threshold - defined by the Policy Risks
Financial Group for Banca Popolare di Bergamo on this indicator - 1% of
Regulatory Capital. The exhibition includes approximately -5.7 million EUR relating to interest
rate swaps on bond firm commitment still in employment at 31
December 2009 excluded from the calculations. Excluding this contribution, the risk exposure
interest rate would stand at -6.8 million EUR, equal to 0.32% of Equity
Security.
The table below shows the risk measures identified in the periods cited in a scenario
parallel variation of the reference rates of 200 bp, consistent with what
required by prudential regulations, related to the regulatory capital at period end.


                                         Risk indicators - annual average                                            2009 year                2008 year

parallel shift of 200 bp
sensitivity / regulatory capital                                                                                           1.5%                       2.4%




                                         Risk indicators - point values                                              31/12/2009                31/12/2008

parallel shift of 200 bp
sensitivity / regulatory capital                                                                                           1.0%                       0.8%




At December 31, 2009, the impact on net interest income, assuming the shift of the curve
reference rates of 100 basis points is equal to 45.5 million EUR, while in case
reduction of the same (-100 bp) the impact on net interest income is estimated at -62.3
(in millions of EUR. These levels of exposure include the effect on the viscosity of Post
visible (both in terms of elasticity of changes in rate of transfer rates of
reference to domestic rates, which in terms of delay of implementation of
variations thereof).
Here are profiles of capital to the date of repricing and breakdown
of sensitivity (100 bp) for time buckets.


                      Profile of Gap Period                                                                               Cut-off date: 31/12/2009


                             10 000
                  Millions




                              8 000

                              6 000

                              4 000

                              2 000

                                  0

                             -2 000

                             -4 000

                             -6 000

                             -8 000
                                      VIEW    1M      3M       6M     1Y        2Y       3Y      4Y     5Y     7Y   10Y      15Y     20Y      > 20Y


                                         Imbalance Active / Passive        Hedging derivatives        Lapses                   Overall Gap




                                                                                                                                                             215
               Sensitivity bucket: Scenario 100 bp                                                                Cut-off date: 31/12/2009


                    30

         Millions   20

                    10

                      0

                    -10

                    -20

                    -30

                    -40
                          VIEW   1M      3M       6M          1Y    2Y        3Y         4Y    5Y      7Y   10Y   15Y     20Y      > 20Y


                                 Imbalance Active / Passive        Hedging derivatives        Lapses               Overall Gap




Within the main component of the banking book is classified as
AFS category IAS - Available for Sale, which includes government bonds.
Background information indicates that at the end of December, the overall portfolio VaR
bank Banca Popolare di Bergamo amounted to € 3529 (€ 3896 to June 30
2009) with a NAV of approximately € 20.6 million Euros (20.5 million EUR at June 30
2009).




216
2.3 Foreign exchange risk

Currency risk is the risk of incurring losses, due to adverse changes
Course 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 Company,
exposure to exchange rate risk is determined by the methodology proposed by
Bank Italy and is quantified in 8% of the "net open position in foreign exchange," where
it 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 EUR on the basis of the exchange rate or price for
         gold;
    3. adding, separately, all net long positions and all the net positions
         court.

The higher of the total net long positions and the total net short positions
represents the "net open position in foreign exchange."


B. Hedging foreign exchange risk
The foreign exchange market operations carried out by Group Treasury is working through
instruments such as forward exchange transactions, forex swaps, currency swaps and domestic
foreign exchange options, optimizing the risk profile arising from currency positions of
Group.

Quantitative information

The exposure to currency risk, as determined by the methodology described above,
not significant at 31 December 2009.




                                                                                              217
1. Distribution of assets, liabilities and derivatives by foreign currency


                                                                                                Currencies


                    Items
                                                           POUNDS                    YEN                FRANCO               DOLLAR
                                  US Dollar                                                                                                       OTHER CURRENCIES
                                                           ENGLISH               JAPAN                  SWISS FRANC        AUSTRALIAN


A. Financial assets                       138.360                   9.706                 12.085              15.266                          -            7.380
A.1 Debt securities                                    -                     -                      -                  -                      -                    -
A.2 Equity securities                                  -                     -                      -                  -                      -                    -
A.3 Loans to banks                            75.596                6.301                   1.513              5.049                          -            5.759
A.4 Loans to customers                        62.764                3.405                  10.572             10.217                          -            1.621
A.5 Other financial assets                             -                     -                      -                  -                      -                    -
B. Other assets                               1.081                   446                       40               640                          -              214
C. Financial liabilities                  136.139                   9.740                822.792              15.905                          -            7.586
C.1 Deposits from banks                       51.559                2.702                  11.505             10.785                          -            1.680
C.2 Deposits from customers                   74.063                6.137                     616              4.288                          -            5.906
C.3 Debt securities                           10.517                  901                810.671                 832                          -                    -
C.4 Other financial liabilities                        -                     -                      -                  -                      -                    -
D. Other liabilities                             103                         -                      -                 1                       -               10
E. Financial derivatives                         347                 (273)               802.512                       -                      -                    -
E.1 Options                                            -                     -                      -                  -                      -                    -
  E.1.1 Long Positions                    101.280                   4.662                  16.221                      -           24.988                  1.258
  E.1.2 Short positions                   101.280                   4.662                  16.221                      -           24.988                  1.258
E.1 Other derivatives                            347                 (273)               802.512                       -                      -                    -
  E.1.1 Long Positions                        79.737                2.308                836.833                       -              1.187               15.810
  E.1.2 Short positions                       79.390                2.581                  34.321                      -              1.187               15.810
Total assets                              320.458               17.122                   865.179              15.906              26.175                  24.662
Total liabilities                         316.912               16.983                   873.334              15.906              26.175                  24.664
Imbalance                                     3.546                   139                 ( 8.155 )                    -                      -               (2)




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).




218
2.4 Derivative financial instruments

A. FINANCIAL DERIVATIVES

A.1 Regulatory trading portfolio: end of period notional amounts
     average


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

    Asset / Type of derivative
                                                          Over the         Counterparts       Over the           Counterparts
                                                          counter            Central          counter              Central

1. Debt and interest rates                                 6.173.408                      -   (4.110.738)                       -
  a) Options                                                 798.373                      -      (529.046)                      -
  b) Swaps                                                 5.375.035                      -   (3.581.692)                       -
  c) Forward                                                           -                  -                  -                  -
  d) Futures                                                           -                  -                  -                  -
  e) Other                                                             -                  -                  -                  -
2. Equity securities and stock indexes                                 -                  -                  -                  -
  a) Options                                                           -                  -                  -                  -
  b) Swaps                                                             -                  -                  -                  -
  c) Forward                                                           -                  -                  -                  -
  d) Futures                                                           -                  -                  -                  -
  e) Other                                                             -                  -                  -                  -
3. Currency and gold                                         533.926                      -   ( 1.106.915 )                     -
  a) Options                                                 296.816                      -      (173.117)                      -
  b) Swaps                                                             -                  -                  -                  -
  c) Forward                                                 237.110                      -                  -                  -
  d) Futures                                                           -                  -                  -                  -
  e) Other                                                             -                  -      (933.798)                      -
4) Goods                                                               -                  -                  -                  -
5) Other underlying                                                    -                  -        (1.258)                      -
                                              Total        6.707.334                      -   ( 5.218.911 )                     -
                                         Average values    7.065.314                      -   (5.263.298)                       -




                                                                                                                           219
A.2 Banking: end of period notional and average amount
A.2.1 Hedging


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

      Asset / Type of derivative
                                                    Over the counter       CCPs       Over the counter       CCPs


1. Debt and interest rates                                   8.895.436            -            4.126.082            -
  a) Options                                                    18.504            -              126.543            -
  b) Swaps                                                   8.876.932            -            3.999.539            -
  c) Forward                                                           -          -                      -          -
  d) Futures                                                           -          -                      -          -
  e) Other                                                             -          -                      -          -
2. Equity securities and stock                                         -          -                      -          -
indexes                                                                -          -                      -          -
  a) Options                                                           -          -                      -          -
  b) Swaps                                                             -          -                      -          -
  c) Forward                                                           -          -                      -          -
  d) Futures                                                           -          -                      -          -
  e) Other                                                    802.512             -            2.483.444            -
3. Currency and gold                                                   -          -                      -          -
  a) Options                                                           -          -                      -          -
  b) Swaps                                                             -          -                      -          -
  c) Forward                                                           -          -                      -          -
  d) Futures                                                  802.512             -            2.483.444            -
  e) Other                                                             -          -                      -          -
4) Goods                                                               -          -                      -          -
5) Other underlying                     Total               9.697.948             -           6.609.526             -
                                   Average values           9.889.846             -           6.184.129             -




220
A.2.2 Other derivatives


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

    Asset / Type of derivative
                                                      Over the counter       CCPs       Over the counter       CCPs


1. Debt and interest rates                                               -          -                      -           -
  a) Options                                                             -          -                      -           -
  b) Swaps                                                               -          -                      -           -
  c) Forward                                                             -          -                      -           -
  d) Futures                                                             -          -                      -           -
  e) Other                                                               -          -                      -           -
2. Equity securities and stock indexes                             5.682            -               15.334             -
  a) Options                                                       5.682            -               15.334             -
  b) Swaps                                                               -          -                      -           -
  c) Forward                                                             -          -                      -           -
  d) Futures                                                             -          -                      -           -
  e) Other                                                               -          -                      -           -
Asset / Type of derivative                                               -          -                      -           -
  a) Options                                                             -          -                      -           -
  b) Swaps                                                               -          -                      -           -
  c) Forward                                                             -          -                      -           -
  d) Futures                                                             -          -                      -           -
  e) Other                                                               -          -                      -           -
4) Goods                                                                 -          -                      -           -
5) Other underlying                                                      -          -                      -           -
                                          Total                   5.682             -              15.334              -
                                     Average values               5.682             -              14.673              -




                                                                                                                      221
A.3 Financial derivatives: the gross positive fair value - breakdown products


                                                    - positive fair value               - positive fair value



          Wallets / Type of derivative             Total 31/12/2009                    Total 31/12/2008


                                                 Over the         Counterparts       Over the          Counterparts
                                                 counter            Central          counter             Central

1. Regulatory trading portfolio:                      48.426                     -        82.545                      -

  a) Options                                           2.877                     -         3.038                      -
  b) Interest rate swap                               41.299                     -        36.766                      -
  c) Cross currency swap                                      -                  -                 -                  -
  d) Equity swap                                              -                  -                 -                  -
  e) Forward                                           4.250                     -        42.544                      -
  f) Futures                                                  -                  -                 -                  -
  g) Other                                                    -                  -              197                   -
2. Banking book - cover                             144.696                      -       350.589                      -
  a) Options                                                  -                  -                 -                  -

  b) Interest rate swap                             138.377                      -        93.535                      -
  c) Cross currency swap                                      -                  -                 -                  -
  d) Equity swap                                              -                  -                 -                  -
  e) Forward                                                  -                  -                 -                  -
  f) Futures                                                  -                  -                 -                  -
  g) Other                                             6.319                     -       997,054                      -
3. Banking - Other derivatives                         2.033                     -         1.759                      -
  a) Options                                           2.033                     -         1.759                      -
  b) Interest rate swap                                       -                  -                 -                  -
  c) Cross currency swap                                      -                  -                 -                  -
  d) Equity swap                                              -                  -                 -                  -
  e) Forward                                                  -                  -                 -                  -
  f) Futures                                                  -                  -                 -                  -

  g) Other                                                    -                  -                 -                  -

                                         Total      195.155                      -      434.893                       -




222
A.4 Financial derivatives: Gross negative fair value - breakdown products


                                                    - negative fair value               - negative fair value



          Wallets / Type of derivative             Total 31/12/2009                    Total 31/12/2008


                                                 Over the         Counterparts       Over the         Counterparts
                                                 counter            Central          counter            Central

1. Regulatory trading portfolio:                      48.346                     -        82.051                     -

  a) Options                                           2.877                     -         3.038                     -
  b) Interest rate swap                               41.227                     -        36.319                     -
  c) Cross currency swap                                      -                  -                -                  -
  d) Equity swap                                              -                  -                -                  -
  e) Forward                                           4.242                     -        42.497                     -
  f) Futures                                                  -                  -                -                  -
  g) Other                                                    -                  -              197                  -
2. Banking book - cover                               72.754                     -        79.295                     -
  a) Options                                                  -                  -                -                  -

  b) Interest rate swap                               53.553                     -        44.429                     -
  c) Cross currency swap                                      -                  -                -                  -
  d) Equity swap                                              -                  -                -                  -
  e) Forward                                                  -                  -                -                  -
  f) Futures                                                  -                  -                -                  -
  g) Other                                            19.201                     -        34.866                     -
3. Banking - Other derivatives                         1.383                     -         1.599                     -
  a) Options                                           1.383                     -         1.599                     -
  b) Interest rate swap                                       -                  -                -                  -
  c) Cross currency swap                                      -                  -                -                  -
  d) Equity swap                                              -                  -                -                  -
  e) Forward                                                  -                  -                -                  -
  f) Futures                                                  -                  -                -                  -

  g) Other                                                    -                  -                -                  -

                                         Total      122.483                      -      162.945                      -




                                                                                                                223
A.5 OTC financial derivatives - Regulatory trading portfolio: notional amounts, fair value of the gross positive and negative
     for counterparts - contracts not covered by netting agreements


                                                    Governments and central                                                                                     Company         BUSINESS NOT
      Contracts not covered by netting agreements                             Other public entities       Banks                   Financial companies                                                  Other entities
                                                    banks                                                                                                     insurance          financial
                                                         Central




- On debt securities and interest rates
  - notional value                                                       -                            -           4.293.617                    604.667                      -          1.224.383                    50.741

  - positive fair value                                                  -                            -               3.947                       5.703                     -             32.293                         452

  - negative fair value                                                  -                            -              39.338                         517                     -              1.943                         522

  - future exposure                                                      -                            -              40.591                       1.305                     -              9.074                         447

2) Equity and equity indices and

  - notional value                                                       -                            -                       -                           -               324                      -                            -

  - positive fair value                                                  -                            -                       -                           -                 3                      -                            -

  - negative fair value                                                  -                            -                       -                           -                 -                      -                            -

  - future exposure                                                      -                            -                       -                           -                 3                      -                            -

3) Exchange rates and gold

  - notional value                                                       -                            -            266.792                      29.881                      -           234.912                         2.016

  - positive fair value                                                  -                            -               3.676                         130                     -              2.210                           14

  - negative fair value                                                  -                            -               2.349                         767                     -              2.871                           38

  - future exposure                                                      -                            -               2.778                         293                     -              2.446                           22

4) Other amounts

  - notional value                                                       -                            -                       -                           -                 -                      -                            -

  - positive fair value                                                  -                            -                       -                           -                 -                      -                            -

  - negative fair value                                                  -                            -                       -                           -                 -                      -                            -
  - future exposure                                                      -                            -                       -                           -                 -                      -                            -




A.6 OTC financial derivatives - Regulatory trading portfolio: notional amounts, fair value of the gross positive and negative
     for counterparts - contracts covered by netting agreements


This case is not present in the trading of the Bank's supervision.




           224
A.7 OTC financial derivatives: banking book – notional values, positive and negative gross fair value per counterparty –                                                                                         contracts not
included in clearing agreements–
     contracts not covered by netting agreements


                                                    Governments and central                                                                                     Company       BUSINESS NOT
      Contracts not covered by netting agreements                             Other public entities       Banks                   Financial companies                                                Other entities
                                                    banks                                                                                                     insurance        financial
                                                         Central




- On debt securities and interest rates
  - notional value                                                       -                            -           8.895.436                               -               -                      -                            -

  - positive fair value                                                  -                            -             138.377                               -               -                      -                            -

  - negative fair value                                                  -                            -              53.553                               -               -                      -                            -

  - future exposure                                                      -                            -              35.432                               -               -                      -                            -

2) Equity and equity indices and

  - notional value                                                       -                            -               2.841                               -               -                      -                    2.841

  - positive fair value                                                  -                            -               2.033                               -               -                      -                            -

  - negative fair value                                                  -                            -                       -                           -               -                      -                    1.383

  - future exposure                                                      -                            -                 170                               -               -                      -                      170

3) Exchange rates and gold

  - notional value                                                       -                            -                       -                 15.425                    -           136.838                   650.248

  - positive fair value                                                  -                            -                       -                         68                -                  865                      5.387

  - negative fair value                                                  -                            -                       -                     426                   -              2.198                    16.578

  - future exposure                                                      -                            -                       -                     154                   -              1.430                        6.648

4) Other amounts

  - notional value                                                       -                            -                       -                           -               -                      -                            -

  - positive fair value                                                  -                            -                       -                           -               -                      -                            -

  - negative fair value                                                  -                            -                       -                           -               -                      -                            -
  - future exposure                                                      -                            -                       -                           -               -                      -                            -




A.8 OTC financial derivatives: banking book – notional values, positive and negative gross fair value – contracts included in                                                                                                     clearing
agreements–
     contracts covered by netting agreements

This case is not present in the trading of the Bank's supervision.




                                                                                                                                                                                                              225
A.9 residual life of OTC derivatives: notional



                                                                                                  Over 1 year and
                       Underlying / Residual life                             To 1 year                               Over 5 years        Total
                                                                                                   to 5 years



Regulatory trading portfolio:
  A.1 Financial derivatives on debt securities and interest rates                 1.526.522           2.168.235          2.478.651        6.173.408
  A.2 Financial derivative contracts on equity securities and stock indexes                   -                   -                  -                -
  A.3 Financial derivatives on exchange rates and gold                              529.205                4.720                     -      533.925
  A.4 Financial derivative contracts on other values                                          -                   -                  -                -
B) Banking
  B.1 Financial derivatives on debt securities and interest rates                 3.033.460           5.249.792            612.184        8.895.436
  B.2 Financial derivative contracts on equity securities and stock indexes               5.682                   -                  -        5.682
  B.3 Financial derivatives on exchange rates and gold                              802.512                       -                  -      802.512
  B.4 Financial derivative contracts on other values                                          -                   -                  -                -
                                                     Total 31/12/2009             5.897.381           7.422.747          3.090.835       16.410.963
                                                     Total 31/12/2008             5.442.572           5.633.069            768.130       11.843.771




A.10 Financial derivatives OTC: CCR / financial risk -
     Internal models

The case is not relevant.




B. CREDIT DERIVATIVES

There are no credit derivatives.




C. FINANCIAL AND CREDIT DERIVATIVES

OTC financial and credit derivatives: net fair value and future exposure per counterparty
    for counterparts


The case is not relevant.




226
Section 3 - Liquidity risk

Qualitative information
A. General, management processes and methods of risk measurement
    liquidity

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 from 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 their thresholds
early warning, also declined the rules for pursuing and maintaining through
policies for the collection and use of coordinated and efficient for the structural
Network banks and product companies.
Finally, the policy aims to make homogeneous, for all Group companies, both
ways and means that the criteria for identification of the economic conditions
possibly identifying in advance the specific exceptions.
Principals of liquidity risk on behalf of the network banks are centralized at the
Parent and compete:
    ·    the Macro Finance Area (garrison level 1) that will monitor
         daily liquidity and risk management within the limits defined;
    ·    Area Risk Management (garrison level 2), which is responsible for measuring
         synthetic risk indicators and periodic testing of the limits

With particular reference to the position in terms of structural balance, the risk of
Liquidity is monitored primarily through a model in which liquidity gap is
determined the temporal evolution of the net cash flows in order to highlight
any critical liquidity conditions in the hold. The liquidity needs of the total
is determined as the sum of the negative gap (outflows exceed cash flows in
entrance) found for each time band. Any positive gap found in
a band gap is increased to reduce its negative in successive time zones.
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
quantify the degree of risk coverage generated by the position taken.




                                                                                               227
Quantitative information
Time breakdown by contractual residual maturity of financial assets and liabilities - Currency: Euro


                                                                              From 1          From 7                                                     From 3             From 6
                                                                                                               For more than 15 days over 1 month                                              From 1 year
                 ITEMS / MATURITIES                        On demand          TO 7 DAYS       TO 15 DAYS                                                months to 6        months to 1                               Over 5 years       INDEFINITE       Total
                                                                                                                   1 month up to 3 months                                                       to 5 years
                                                                                days            days                                                        months            year


Cash assets                                                 12.393.082            226.614         162.242               646.892           748.988            553.703              646.845             4.081.133           6.083.708                  -    25.543.207
A.1 Government securities                                                 -               -                -                   -                    -                 -                    -             20.591                     -                -            20.591
Other debt securities                                                     -               -                -                   -                    -                 -                    -                     -                  -                -                  -
A.3 Mutual fund shares                                                    -               -                -                   -                    -                 -                    -                     -                  -                -                  -
A.4 Funding                                                  12.393.082           226.614          162.242              646.892           748.988             553.703             646.845             4.060.542           6.083.708                  -     25.522.616
    - Banks                                                   5.250.743            30.690           37.294               55.404           156.071             100.941                    125                 2.577                  -                -      5.633.845
    - Customers                                               7.142.339           195.924          124.948              591.488           592.917             452.762             646.720             4.057.965           6.083.708                  -     19.888.771
Doubtful loans                                                                                                                                                                                                                                                          -
Loans outstanding                                                                                                                                                                                                                                                       -
Cash liabilities                                            12.841.751             30.718          43.743               312.622           818.182            158.701              981.399             6.182.265           1.225.925                  -    22.595.306
B.1 Deposits                                                 12.822.310                   -                -                   -                    -                 -                    -                     -            5.601                  -     12.827.911
    - Banks                                                      54.072                   -                -                   -                    -                 -                    -                     -                  -                -            54.072
    - Customers                                              12.768.238                   -                -                   -                    -                 -                    -                     -            5.601                  -     12.773.839
B.2 Debt securities                                              12.542               384            6.708              257.776           678.972              60.925             980.802             6.177.341           1.214.837                  -      9.390.287
B.3 Other liabilities                                             6.899            30.334          37.035                54.846           139.210              97.776                    597                 4.924            5.487                  -           377.108
Off-balance sheet "transactions"                            (1.119.169)            15.822           3.520                21.892           119.132              32.487             153.495              370.229              488.896                  -           86.304
C.1 Financial derivatives with underlying asset exchange                  -               -                -                   -              (67)                    -                    -                     -                  -                -               (67)
    - Long positions                                                      -           264            4.226               22.712            92.295              59.242               71.755                   2.360                  -                -           252.854
    - Short positions                                                     -           264            4.226               22.712            92.362              59.242               71.755                   2.360                  -                -           252.921
C.2 Financial derivatives without exchange of capital                     -        15.822            2.861               18.757            95.846              ( 4.321 )          ( 45.471 )                 2.052                  -                -            85.546
    - Long positions                                                      -        19.370            6.382               19.949           113.817              13.734                7.481                   2.071                  -                -           182.804
    - Short positions                                                     -         3.548            3.521                1.192            17.971              18.055               52.952                     19                   -                -            997,054
C.3 Deposits and loans receivable                                         -               -                -                   -                    -                 -                    -                     -                  -                -                  -
    - Long positions                                                      -               -                -                   -                    -                 -                    -                     -                  -                -                  -
    - Short positions                                                     -               -                -                   -                    -                 -                    -                     -                  -                -                  -
Irrevocable commitments to make loans                        (1.119.994)                  -           659                 3.135            23.353              36.808             198.966               368.177             488.896                  -                  -
    - Long positions                                            117.441                   -           659                 3.135            23.353              36.808             198.966               368.177             488.896            15.039       1.252.474
    - Short positions                                         1.237.435                   -                -                   -                    -                 -                    -                     -                  -          15.039       1.252.474
C.5 Financial guarantees issued                                     825                   -                -                   -                    -                 -                    -                     -                  -                -              825




           228
1.2        Time breakdown by contractual residual maturity of financial assets and liabilities - Currency: YEN
           JAPAN


                                                                            From 1            From 7                                     From 1               From 3              From 6
                                                                                                                   From 15                                                                            From 1 year
                   ITEMS / MATURITIES                      On demand        TO 7 DAYS         TO 15 DAYS                               up to 3 months        months to 6         months to 1                                    Over 5 years       INDEFINITE       Total
                                                                                                                 days to 1 month                                                                       to 5 years
                                                                              days              days                                        months               months              year


Cash assets                                                    1.571              2.386                361                 4.002                2.652                1.043                        -                         -                  -                -       12.015
A.1 Government securities                                               -                 -                  -                     -                     -                   -                    -                     -                      -                -                    -

Other debt securities                                                   -                 -                  -                     -                     -                   -                    -                     -                      -                -                    -

A.3 Mutual fund shares                                                  -                 -                  -                     -                     -                   -                    -                     -                      -                -                    -

A.4 Funding                                                     1.571             2.386                361                 4.002                2.652                 1.043                       -                     -                      -                -           12.015

    - Banks                                                     1.513                     -                  -                     -                     -                   -                    -                     -                      -                -            1.513

    - Customers                                                    58             2.386                361                 4.002                2.652                 1.043                       -                     -                      -                -           10.502

Doubtful loans                                                                                                                                                                                                                                                                       -

Loans outstanding                                                                                                                                                                                                                                                                    -

Cash liabilities                                               5.155             43.035            73.033                81.909              316.541              245.814               52.351                  4.959                          -                -      822.797

B.1 Deposits                                                     621              5.460                      -             4.205                1.502                  338                        -                     -                      -                -           12.126

    - Banks                                                         5             5.460                      -             4.205                1.502                  338                        -                     -                      -                -           11.510

    - Customers                                                  616                      -                  -                     -                     -                   -                    -                     -                      -                -               616

B.2 Debt securities                                             4.534            37.575             73.033                77.704              315.039              245.476               52.351                     4.959                      -                -       810.671

B.3 Other liabilities                                                  -                  -                  -                     -                     -                   -                    -                     -                      -                -                    -

Off-balance sheet "transactions"                               3.454                      -                  -                     -         (10.178)                  751                        -                     -                      -                -           ( 5.973 )

C.1 Financial derivatives with underlying asset exchange               -                  -                  -                     -                     -                   -                    -                     -                      -                -                    -

    - Long positions                                                   -                  -          1.502                 4.506                6.759               26.819               10.957                         -                      -                -           50.543

    - Short positions                                                  -                  -          1.502                 4.506                6.759               26.819               10.957                         -                      -                -           50.543

C.2 Financial derivatives without exchange of capital                  -                  -                  -                     -          (12.882)                       -                    -                     -                      -                -       (12.882)

    - Long positions                                                   -                  -                  -                     -            6.319                        -                    -                     -                      -                -             6.319

    - Short positions                                                  -                  -                  -                     -           19.201                        -                    -                     -                      -                -           19.201

C.3 Deposits and loans receivable                               3.454                     -                  -                     -            2.704                  751                        -                     -                      -                -             6.909

    - Long positions                                            3.454                     -                  -                     -            2.704                  751                        -                     -                      -                -             6.909

    - Short positions                                                  -                  -                  -                     -                     -                   -                    -                     -                      -                -                    -

Irrevocable commitments to make loans                                  -                  -                  -                     -                     -                   -                    -                     -                      -                -                    -

    - Long positions                                                   -                  -                  -                     -                     -                   -                    -                     -                      -                -                    -

    - Short positions                                                  -                  -                  -                     -                     -                   -                    -                     -                      -                -                    -

C.5 Financial guarantees issued                                        -                  -                  -                     -                     -                   -                    -                     -                      -                -                    -




                                                                                                                                                                                                                                                                        229
1.3        Time breakdown by contractual residual maturity of financial assets and liabilities - Currency:
           US Dollar


                                                                            From 1          From 7                                   From 1          From 3            From 6
                                                                                                                From 15                                                                  From 1 year
                   ITEMS / MATURITIES                      On demand        TO 7 DAYS       TO 15 DAYS                             up to 3 months   months to 6       months to 1                           Over 5 years       INDEFINITE         Total
                                                                                                              days to 1 month                                                             to 5 years
                                                                              days            days                                      months          months            year


Cash assets                                                  100.391              1.612          10.376                7.862              17.007              869                   15                  -                  2                  -      138.134
A.1 Government securities                                               -               -                -                     -                -                 -                  -                  -                  -                  -                -

Other debt securities                                                   -               -                -                     -                -                 -                  -                  -                  -                  -                -

A.3 Mutual fund shares                                                  -               -                -                     -                -                 -                  -                  -                  -                  -                -

A.4 Funding                                                  100.391              1.612          10.376                 7.862             17.007              869                   15                  -                  2                  -      138.134

    - Banks                                                    75.596                   -                -                     -                -                 -                  -                  -                  -                  -           75.596

    - Customers                                                24.795             1.612          10.376                 7.862             17.007              869                   15                  -                  2                  -           62.538

Doubtful loans                                                                                                                                                                                                                                                 -

Loans outstanding                                                                                                                                                                                                                                              -

Cash liabilities                                              85.605             11.875             205               11.422              19.694            7.285                   41                 35                  -                  -      136.162

B.1 Deposits                                                  74.040             11.109                   -           10.412               13.233           6.942                    -                  -                  -                  -      115.736

    - Banks                                                        24            11.106                   -           10.412               13.189           6.942                    -                  -                  -                  -           41.673

    - Customers                                               74.016                    3                 -                 -                  44                 -                  -                  -                  -                  -           74.063

B.2 Debt securities                                             1.656               766             205                1.010                6.461             343                   41                 35                  -                  -           10.517

B.3 Other liabilities                                           9.909                   -                 -                 -                   -                 -                  -                  -                  -                  -            9.909

Off-balance sheet "transactions"                                (164)                   -           278                     -                233                  -                  -                  -                  -                  -             347

C.1 Financial derivatives with underlying asset exchange               -                -           278                     -                  69                 -                  -                  -                  -                  -              347

    - Long positions                                                   -            273            2.805              16.855               74.064          35.394             49.265               2.360                   -                  -      181.016

    - Short positions                                                  -            273            2.527              16.855               73.995          35.394             49.265               2.360                   -                  -      180.669

C.2 Financial derivatives without exchange of capital                  -                -                 -                 -                   -                 -                  -                  -                  -                  -                -

    - Long positions                                                   -                -                 -                 -                   -                 -                  -                  -                  -                  -                -

    - Short positions                                                  -                -                 -                 -                   -                 -                  -                  -                  -                  -                -

C.3 Deposits and loans receivable                                      -                -                 -                 -                   -                 -                  -                  -                  -                  -                -

    - Long positions                                                   -                -                 -                 -                   -                 -                  -                  -                  -                  -                -

    - Short positions                                                  -                -                 -                 -                   -                 -                  -                  -                  -                  -                -

Irrevocable commitments to make loans                           (164)                   -                 -                 -                 164                 -                  -                  -                  -                  -                -

    - Long positions                                               91                   -                 -                 -                 164                 -                  -                  -                  -                157              412

    - Short positions                                            255                    -                 -                 -                   -                 -                  -                  -                  -                157              412
C.5 Financial guarantees issued                                        -                -                 -                 -                   -                 -                  -                  -                  -                  -                -




           230
1.4        Time breakdown by contractual residual maturity of financial assets and liabilities - Currency:
           British Pound


                                                                           From 1          From 7                                 From 1              From 3              From 6
                                                                                                                From 15                                                                    From 1 year
                   ITEMS / MATURITIES                      On demand       TO 7 DAYS       TO 15 DAYS                           up to 3 months       months to 6         months to 1                         Over 5 years       INDEFINITE       Total
                                                                                                              days to 1 month                                                               to 5 years
                                                                             days            days                                    months              months              year


Cash assets                                                   11.858               169           1.390                   425              814                      35                  -                 -                  -                -       14.691
A.1 Government securities                                              -               -                -                   -                -                       -                 -                 -                  -                -                 -

Other debt securities                                                  -               -                -                   -                -                       -                 -                 -                  -                -                 -

A.3 Mutual fund shares                                                 -               -                -                   -                -                       -                 -                 -                  -                -                 -

A.4 Funding                                                    11.858              169            1.390                   425              814                     35                  -                 -                  -                -           14.691

    - Banks                                                     6.301                  -                -                   -                -                       -                 -                 -                  -                -            6.301

    - Customers                                                 5.557              169            1.390                   425              814                     35                  -                 -                  -                -            8.390

Doubtful loans                                                                                                                                                                                                                                                 -

Loans outstanding                                                                                                                                                                                                                                              -

Cash liabilities                                               6.142                   -           152                      -            3.446                      -                  -                 -                  -                -            9.740

B.1 Deposits                                                    6.137                  -                  -                 -            2.702                      -                  -                 -                  -                -            8.839

    - Banks                                                            -               -                  -                 -            2.702                      -                  -                 -                  -                -            2.702

    - Customers                                                 6.137                  -                  -                 -                    -                  -                  -                 -                  -                -            6.137

B.2 Debt securities                                                 5                  -            152                     -              744                      -                  -                 -                  -                -              901

B.3 Other liabilities                                                  -               -                  -                 -                    -                  -                  -                 -                  -                -                    -

Off-balance sheet "transactions"                                       -               -          (273)                     -                    -                  -                  -                 -                  -                -            (273)

C.1 Financial derivatives with underlying asset exchange               -               -          (273)                     -                    -                  -                  -                 -                  -                -             (273)

    - Long positions                                                   -               -                  -              473               552               3.063                2.883                  -                  -                -            6.971

    - Short positions                                                  -               -            273                  473               552               3.063                2.883                  -                  -                -            7.244

C.2 Financial derivatives without exchange of capital                  -               -                  -                 -                    -                  -                  -                 -                  -                -                    -

    - Long positions                                                   -               -                  -                 -                    -                  -                  -                 -                  -                -                    -

    - Short positions                                                  -               -                  -                 -                    -                  -                  -                 -                  -                -                    -

C.3 Deposits and loans receivable                                      -               -                  -                 -                    -                  -                  -                 -                  -                -                    -

    - Long positions                                                   -               -                  -                 -                    -                  -                  -                 -                  -                -                    -

    - Short positions                                                  -               -                  -                 -                    -                  -                  -                 -                  -                -                    -

Irrevocable commitments to make loans                                  -               -                  -                 -                    -                  -                  -                 -                  -                -                    -

    - Long positions                                                   -               -                  -                 -                    -                  -                  -                 -                  -                -                    -

    - Short positions                                                  -               -                  -                 -                    -                  -                  -                 -                  -                -                    -
C.5 Financial guarantees issued                                        -               -                  -                 -                    -                  -                  -                 -                  -                -                    -




                                                                                                                                                                                                                                                              231
1.5        Time breakdown by contractual residual maturity of financial assets and liabilities


                                                                           From 1           From 7                               From 1          From 3             From 6
                                                                                                               From 15                                                                From 1 year
                   ITEMS / MATURITIES                      On demand       TO 7 DAYS        TO 15 DAYS                         up to 3 months   months to 6        months to 1                          Over 5 years       INDEFINITE         Total
                                                                                                             days to 1 month                                                           to 5 years
                                                                             days             days                                  months          months             year


Cash assets                                                   11.001                   72         5.098                 438            5.140              999                    54                 -                  -                  -       22.802
A.1 Government securities                                              -                -                -                 -                -                  -                  -                 -                  -                  -                -

Other debt securities                                                  -                -                -                 -                -                  -                  -                 -                  -                  -                -

A.3 Mutual fund shares                                                 -                -                -                 -                -                  -                  -                 -                  -                  -                -

A.4 Funding                                                    11.001                  72          5.098                 438            5.140             999                    54                 -                  -                  -           22.802

    - Banks                                                    10.831                   -                -                 -                -                  -                  -                 -                  -                  -           10.831

    - Customers                                                   170                  72          5.098                 438            5.140             999                    54                 -                  -                  -           11.971

Cash liabilities                                              10.400                    -                -            7.481            2.223            3.397                     -                 -                  -                223       23.724

B.1 Deposits                                                   10.299                   -                -             7.414            1.587           3.370                     -                 -                  -                 91           22.761

    - Banks                                                       116                   -                -             7.414            1.587           3.370                     -                 -                  -                  -           12.487

    - Customers                                                10.183                   -                -                 -                -                  -                  -                 -                  -                 91           10.274

B.2 Debt securities                                               101                   -                -                67              636                 27                  -                 -                  -                132              963

B.3 Other liabilities                                                  -                -                -                 -                -                  -                  -                 -                  -                  -                -

Off-balance sheet "transactions"                                       -                -                -                 -                -                  -                  -                 -                  -                  -                -

C.1 Financial derivatives with underlying asset exchange               -                -                -                 -                -                  -                  -                 -                  -                  -                -

    - Long positions                                                   -                -                -               861            9.606          24.030               8.746                   -                  -                  -           43.243

    - Short positions                                                  -                -                -               861            9.606          24.030               8.746                   -                  -                  -           43.243

C.2 Financial derivatives without exchange of capital                  -                -                -                 -                -                  -                  -                 -                  -                  -                -

    - Long positions                                                   -                -                -                 -                -                  -                  -                 -                  -                  -                -

    - Short positions                                                  -                -                -                 -                -                  -                  -                 -                  -                  -                -

C.3 Deposits and loans receivable                                      -                -                -                 -                -                  -                  -                 -                  -                  -                -

    - Long positions                                                   -                -                -                 -                -                  -                  -                 -                  -                  -                -

    - Short positions                                                  -                -                -                 -                -                  -                  -                 -                  -                  -                -

Irrevocable commitments to make loans                                  -                -                -                 -                -                  -                  -                 -                  -                  -                -

    - Long positions                                                   -                -                -                 -                -                  -                  -                 -                  -                  -                -

    - Short positions                                                  -                -                -                 -                -                  -                  -                 -                  -                  -                -
C.5 Financial guarantees issued                                        -                -                -                 -                -                  -                  -                 -                  -                  -                -




           232
Section 4         Operational Risk

Qualitative information
A. General, management processes and methods for measuring operational risk
For operational risk means the risk of loss resulting from inadequate or
dysfunction of processes, people and systems or from external events.
Fall into this category, among others, losses resulting from fraud, human errors, interruptions
operations, unavailability of systems, breaches of contract, natural disasters.
This definition includes legal risk of loss resulting from violations of laws or
regulations, contractual liability, tort or other disputes
but excludes strategic and reputational risk.
Operational risk is characterized by relations of cause and effect such that, compared to one or
multiple triggers, you build the injurious event, or effect, which is directly
connectable to an economic loss.
We define, therefore, all the operating loss resulting from adverse economic effects
events to be operating as recorded in company accounts and unlikely to have impact on
Income statement.
In compiling the policy of operational risk management has placed the UBI Banca Group
particular attention to the maintenance of an adequate risk profile consistent with the
risk appetite defined by the Senior Management. The Group policy provides for the risks
operation are identified, measured and monitored as part of the overall process
Operational Risk Management with the following objectives:
        identify the causes of adverse events leading to loss
        operational 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,
        to ensure, in the light of the extent and actual exposure to risk;
        optimize the allocation and absorption of risk capital and operating
        provisioning policies with the goal of creating value for shareholders;
        support decision making on the opening of new business activities,
        products and systems;
        develop a culture of operational risk at business unit awareness
        the entire hotel;
        meet the regulatory requirements of the New Basel Capital
        Supervision of banks and banking groups.

In light of the regulatory framework defined by the publication of Circular 263,
27/12/2006 Bank of Italy, the Bank shall adopt the Standardised Approach (TSA) to calculate
operational risk capital requirement and has initiated a process aimed at
Watch the Authority to request permission to use an internal model of type
Advanced (Advanced Measurement Approach, AMA) in combined use with the TSA method
(AMA partial, when used with "partial" means the adoption of the method only for AMA
Some Business Line), presently used for management purposes only.


Organizational Model
Operational risk pervades the entire hotel and is situated in each function and organizational unit.
It was therefore defined an organizational model for management that gives
duties and responsibilities at both peripheral and central of the separate legal entities
involved in the Group. Within the parent company was formed a committee
Operational Risk with tasks of verification and the overall process of Operational
Risk Management and Risk Management in the Area is also an active
specific service ("Operational Risk") dedicated to the design, development and
maintenance of business methods for detection, measurement, monitoring and verification


                                                                                                       233
effectiveness of mitigation of operational risk and related systems
reporting. For the design and development and the structure of the methodological
AMA model as well as maintenance of the computing environment, the Service Risk
Operating with the support of the Service Models Methodologies and operating within
Area Risk Management. Within the Risk Capital & Policies are also operating
OpRisk & Service Financial Policies, responsible, in collaboration with other units
organizations, to the definition of policy management, monitoring and mitigation
operational risk including those of insurance risk management and good service
Patterns and Processes, 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 scope
       the completion of the overall legal framework for risk management
       operational;
       Operational Risk Management Support Units (SROL) plays the main role of support
       Contact Operational Risk in the government's overall risk management process
       operating legal entity to which they belong;
       Risk Champion (RC) oversees the conduct of the operational process
       Operational risk management for its overall validity, in relation
       to their business area by coordinating and supporting the Owners of Risk
       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 the loss events
       incumbents and / or potential occurring / detect in the course of activities
       daily. 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 systematic adverse events that occurred
       resulted in an actual loss. The operating losses are recognized
       periodically reconciled with the accounting and updated in real time by Risk
       Owner and / or Risk Champion in a procedure, available on the Intranet
       Group, with separate disclosure of the recoveries may be obtained, even
       through the activation of specific insurance policies;
       a structured process of mapping and assessment of risk scenarios and
       Business environment and internal control system relevant (Risk
       Assessment) inherent in the business areas of the Group, supported by a procedure
       information for its integrated management, with the intention of providing a self-
       critical operations in terms of potential exposure to the risk of future losses of
       adequacy of controls and mitigation measures in place;
       a database of operational losses suffered by the Italian system from 2003. The
       Group supports the initiative launched by the ABI DIPO Centre in terms of
       operational risks for the exchange of data loss in the system since its date of
       constitution;
       a system for measuring the economic and regulatory capital for the
       determining capital requirements for operational risk for business
       unit through the AMA and standardized method. With regard to risk measurement
       operating through the AMA model currently implemented, subject to regular
       validation process and internal audit, is kind and Loss Distribution Approach
       Risk Management Area was developed internally by the engine
       SAS SAS OpRisk VaR calculation and integration through the adoption of the method
       Bayesian information sources outlined in the preceding paragraphs (internal losses, external and
       risk assessment).




234
Reporting
To support the monitoring of operational risks has created a system of
reporting 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 model
organizational support for the multiple information needs inherent in the federal model of
Group, with the aim of ensuring the standardization of information and allow
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
Bank / Group Companies and the Operational Risk Committee, is designed to periodically
central level by the Operational Risk Management and includes, with varying degrees of detail and frequency
time (monthly / quarterly) differentiated according to needs, analysis andamentale
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
vulnerability and the description of actions to be taken for the prevention and
risk mitigation and their effectiveness.


Mechanisms of risk transfer
UBI Banca Group has entered into the appropriate insurance policies to cover major
operational risks transferred taking into account the requirements of the Statement of Supervision
Prudential (circ. 263/2006, Bank of Italy). The policies were taken out by UBI Banca
ScpA own behalf and on behalf of the network banks and product companies of the Group
concerned.


Legal risk
Banca Popolare Bergamo SpA is involved in several legal proceedings
and various legal proceedings arising out of the ordinary course of its
assets. 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
Overall, a significant negative effect on financial and economic situation
Bank.
Among the relevant judgments entered into by the Bank, are currently pending actions
exerted by an insolvency Longoni Sport SpA for a required
€ 9,947,855 and a dispute relating to the purchase of covered warrants and warrants
Olivetti (the latter through internet banking) to a total value of Euro
5,630,000. In the latter case, the counterparty, as well as to challenge the non-disclosure
risks arising from transactions in covered, has disowned the signatures on
contracts required by law on Securities and Capital
reference. With regard to this matter and as a result of investigations conducted from auditing internal
there was no liability of the Bank in carrying out such operations.
Subsequently, the party has recognized as its first subscriptions
disregarded, but proposed action for fraud by claiming to have signed the blank sheet,
subsequently compiled by the Bank improperly. The Court has not yet
pronounced on the admission of this lawsuit.
In the face of requests received, the Bank considered that sufficient appropriations to lie in
according to a reconstruction of the statements of the amounts potentially at risk and taking
account of the more established case law on this issue.
They are also being drawn up the terms for settling a dispute which has arisen
in 2004 in which the customer disputed the alleged violation by the Bank of
information requirements and fairness made to bear the rules
financial intermediation on the basis of lack of information to customers about the
risks and the inadequacy of investments, respectively, in bonds
and equity and a consequent demand for compensation for the overall
amount of € 5,589,536.00. With decision No. 3290/09 on the Court of Appeal of Rome

                                                                                                     235
partly accepted the demands of the customer and ordered the bank to pay the
principal amount of Euro 779,739.74 plus interest and ordered the customer to
pay the sum of Euro 334,862.00 plus interest in the scope and
start date specified in the reasons (debt claimed by the Bank in respect of
counterparts. The payments for the termination of that litigation will be performed
using funds already set aside.



Quantitative information
The graphs below show that the main sources of event risk
Operations for the Bank in January 2004 - December 2009 "Processes" (50% of
impacts and 27% of frequencies) and "external causes" (47% and 27% of the impacts of frequencies).
The risk drivers "Processes" include, among other things, the errors are not intentional, the lack of preparation
personnel, procedural and process inefficiencies, non-compliance procedures and
internal controls. The risk drivers "external causes" includes human actions are caused by third parties and
not directly controlled by banks such as theft and robbery, fraud
cards, the damage caused by natural events (earthquakes, floods, etc..), other external events.




The performance impact gross of insurance recoveries and other recoveries outside
shows a reduction of 41% over the previous year due to the contraction
of disputes with customers in default on a bond and compound interest. In terms of
high number of events the last two years shows an increase in card fraud
debt for which they have been set up appropriate interventions for prevention and risk reduction.


                     Distribution of operating losses for each year of survey (January 2004 - December 2009)



             50%
             45%

             40%

             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
Commercial banking         External fraud                                      639.012               0
Retail Brokerage           Execution, delivery and process management          569.176               0
Retail banking             Clients, Products & Business Practices              465.683               0
Commercial banking         Clients, Products & Business Practices              414.091               0
Retail banking             Damage from external events                         412.022       405.195


The analysis of operating losses about the data recorded in the period between 1 January 2004 and
December 31, 2009 shows a concentration of the phenomenon in the types of event
"External fraud (70% frequency and 64% of the total impacts detected) and" Run,
delivery and process management "(16% frequency and 12% of the total impacts detected).
For the same period of analysis, data from the banking system (ABI-Association DIPO)
have the largest concentration of operational losses at the event
type "Customers Products & Business Practices" (21% frequency and 29% of the total impacts
detected) and "External fraud" (42% frequency and 26% of the total impacts detected).




UBI Banca Group contributes to the overall frequency of 6.90% and the
5.53% of the impacts of the Association DataBase DIPO-ABI.




                                                                                                    237
Capital requirement
The Bank shall take over from 2008, the standardized approach (TSA) for the calculation of
capital charge on operational risk (see Bank of Italy Circular No 263, 27
December 2006 New regulations relating to the prudential supervision of banks).
The capital requirement determined by the standardized components (TSA) results from
multiplying the gross income (the "relevant indicator" of the item 120
the scheme of the income statement of former Bank of Italy Circular No 262, 22
December 2005), broken down by lines of business regulations, for the specific coefficients
beta defined by supervisory regulations (see Bank of Italy Circular No 263, December 27
2006 and No. 155, December 18, 1991). The relevant indicator per business line
regulation was extrapolated from the data management control, using the criteria of
classification defined by the legislation and in compliance with regulations.
The capital requirement at December 31, 2009, calculated as the requirements concerning the
last three years, amounted to € 133.5 million. It is absorbed by 58% from the line of
Retail banking business, 19% from Commercial Banking, 13% from the Trading & Sales and
10% of the retail brokerage. The average coefficient of absorption compared to the
material is 13%.
The capital requirement at December 31, 2009 shows a reduction of EUR 9 million (-
6%) compared to December 31, 2008 primarily due to lower margin
intermediation.




238
PART F – INFORMATION ON EQUITY
Section 1                       Shareholders' equity
Qualitative information

The company's assets is the capital and reserves, for whatever reason
formed. The aggregate (whose values are given in the following tables) is in defense of
all business risks in previous comments. Policies and processes adopted in
management of the assets relate to all of the choices to define the size and
optimum combination of various means of capitalization, so that the envelope
sheet is consistent with the risk appetite of the Bank, in accordance with the requirements
supervision.

According to current supervisory arrangements, banks belonging to banking groups
eligible for a reduction of 25% of the total capital requirement -
applicable on an individual basis - provided that the total requirement is established
respected.
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 respected, using, if necessary, to increases
principal.


QUANTITATIVE INFORMATION
B.1 assets: breakdown



                                          Line items/ Amounts                           31/12/2009                31/12/2008



1. Share capital                                                                               1.256.300                 1.256.300
2. Share premium                                                                                              -                         -
3. Reserves                                                                                     466.777                   194.231
        retained earnings                                                                       439.072                   166.526
        a) Legal                                                                                     76.334                    57.692
        b) statutory                                                                            342.494                        88.300
        c) Own shares                                                                                         -                         -
        d) other                                                                                     20.244                    20.534
        - other                                                                                      27.705                    27.705
4. Equity instruments                                                                                         -                         -
5. (Own shares)                                                                                               -                         -
6. Valuation reserves                                                                                ( 1.741 )             ( 11.381 )
        - financial assets available-for-sale                                                           116                         (3)

        Tangible assets                                                                                       -                         -
        Intangible assets                                                                                     -                         -
        Hedging of foreign investments:                                                                       -                         -
        Cash flow hedges                                                                               (599)                   ( 8.807 )
        exchange gains and losses                                                                             -                         -
        Non-current assets held for sale                                                                      -                         -
        - Gains (losses) related to defined benefit pension plans                                      (967)                   ( 2.281 )
        - Quote of the valuation reserves related to investments accounted for the PN                         -                         -
        Special revaluation laws                                                                       (291)                     (290)
7. Profit (Loss) for the year                                                                   179.015                   372.848
Total                                                                                         1.900.351                 1.811.998




                                                                                                                                            239
B.2        14.9 Revaluation reserves for available-for-sale assets: breakdown:
           breakdown


                                                                                              31/12/2009                                                   31/12/2008
                             Assets/Amounts
                                                                               Positive reserve              NEGATIVE RESERVE              Positive reserve        NEGATIVE RESERVE

Debt securities:                                                                                  116                              -                           -                  (3)

2. Equity securities                                                                                 -                             -                           -                      -

3. Units in UCITS                                                                                    -                             -                           -                      -

4. Loans                                                                                             -                             -                           -                      -

                                                                       Total                      116                              -                           -                  (3)




B.3        14.9 Revaluation reserves for available-for-sale assets: breakdown:
           annual changes


                                                                                   Debt securities             Equity securities             UCITS units                Loans



1. Opening balance                                                                                   (3)                               -                       -                      -
2. Positive changes                                                                                119                                 -                       -                      -

2.1 Fair value increases                                                                           119                                 -                       -                      -
2.2 Reclassification through profit or loss of negative reserves                                         -                             -                       -                      -
    - due to impairment                                                                                  -                             -                       -                      -
    on disposal                                                                                          -                             -                       -                      -
2.3 Other changes                                                                                        -                             -                       -                      -
3. Negative changes                                                                                      -                             -                       -                      -
3.1 Fair value reductions                                                                                -                             -                       -                      -
3.2 Impairment of deterioration                                                                          -                             -                       -                      -
3.3 Reversal to income statement from positive reserves: on disposal                                     -                             -                       -                      -
3.4 Other changes                                                                                        -                             -                       -                      -
4. Closing balance                                                                                 116                                 -                       -                      -




240
Section 2                    SECTION 2 - REGULATORY CAPITAL AND CAPITAL RATIOS

2.1 Regulatory capital

Qualitative information
The capital has been calculated using the current regulations, as well as
defined by the provisions of the supervisor.


1. Tier 1 capital
The Tier consists of the capital from retained earnings to net asset
intangible, there are no "innovative capital instruments."

2. Tier 2 capital
The Tier consists of the valuation reserves, hybrid instruments
capitalization and subordinated loans, already mentioned in Section 3 - Securities
movement - the balance sheet liabilities, totaling 300 million nominal of
50 of them signed by the parent company.

3. Tier 3 capital
There is no capital for the third level.



QUANTITATIVE INFORMATION


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

A. Tier 1 capital before the application of prudential filters                 1.811.532          1.680.642

Tier 1 before prudential filters:                                                          -                (3)
    Positive IFRS prudential filters (+)                                                   -                  -
    Negative IFRS prudential filters (-)                                                   -                (3)
C. C. Tier 1 capital gross of items to be deducted (A+B)                       1.811.532          1.680.639
D. Items to be deducted from Tier 1 capital                                                -                  -
E. Total tier 1 capital (C-D)                                                  1.811.532          1.680.639
F. Tier 2 capital prior to application of prudential filters                     298.549            288.912
G. Precautionary filters for tier 2 capital                                          (58)                     -
    Positive IFRS prudential filters (+)                                                   -                  -
    Negative IFRS prudential filters (-)                                             (58)                     -
H. Tier 2 capital gross of items to be deducted (F+G)                            298.491            288.912
I. Deductions from TIER 2                                                                  -                  -
L. Total Tier 2 capital (H-I)                                                    298.491            288.912
M. Items to be deducted from Tier 1 and Tier 2 capital                                     -                  -
N. Regulatory capital (E + L – M)                                              2.110.023          1.969.551
O. Tier 3 capital                                                                          -                  -
P. Regulatory capital including tier 3 (N + O)                                 2.110.023          1.969.551




                                                                                                            241
2.2 Capital adequacy

A. Qualitative information
The garrison of the capital adequacy of the Bank is centralized at the parent company UBI
Banca. The latter, beginning as a guidance and coordination of the Company
belonging to the Group - Exchange capitalization requirements, both in the strictest sense,
through the issuance of subordinated debt or hybrid capital instruments
of subsidiaries. The top management of the Parent shall make proposals for action
their governing bodies which decide on it. The proposal, once approved
bodies in the Parent Company is then subject to the competent organs of the
Subsidiaries. On the basis of the development plan of the Group, risk profiles and related
compliance with regulatory capital constraints, the parent company analyzes and coordinates the needs of
capitalization, lending themselves as privileged counterparts in access to markets
capital, in an integrated optimum design of the heritage.
The approach adopted for the assessment of capital adequacy is based on two
assumptions:
             adequately support the Bank's operations, even in light of plans
             defined strategic;
             meet from time to time the signs of the Supervisory Body for
             of the levels of capitalization.
To this end, it is constantly monitored the progress of the Capital Ratio (Tier 1) and Total
Capital ratio. The loan growth strategy is shaped by the levels
of return and risk compared to its absorption sheet.


B. Quantitative information

                                                                                           Non-weighted amounts          Weighted amounts / requirements
                                          Categories/amounts
                                                                                          Total           Total            Total             Total
                                                                                       31/12/2009      31/12/2008       31/12/2009        31/12/2008

A. RISK ASSETS
A.1 Credit and counterparty risk                                                         43.195.591       48.159.251      14.353.259         15.302.793

        1. Standardized approach                                                          43.195.591       48.159.251      14.353.259         15.302.793

        2. Method based on internal ratings                                                      -                -               -                  -

              2.1 Foundation                                                                     -                -               -                  -

              2.2 Advanced                                                                       -                -               -                  -
        3. Securitizations                                                                       -                -               -                  -
B. REGULATORY CAPITAL REQUIREMENTS

B.1 Credit and counterparty risk                                                                                           1.148.261          1.224.224

B.2 Market risk                                                                                                                  273                 642

        1. Standardized approach                                                                                                  273                642

        2. Internal models                                                                                                        -                  -
        3. Concentration risk                                                                                                     -                  -
B.3 Operational risk                                                                                                         133.487            142.641

        1. Basic approach                                                                                                         -                  -

        2. Standardized approach                                                                                              133.487            142.641

        3. Advanced method                                                                                                        -                  -
B.4 Other prudential requirements                                                                                                 -                  -

B.5 Other elements of the calculation (*)                                                                                   (320.505)          (341.877)
B.6 Total prudential requirements                                                                                            961.516          1.025.630

C. RISK ASSETS AND CAPITAL RATIOS

C.1 Risk-weighted assets                                                                                                  16.025.264         17.093.839
C.2 capital / risk weighted assets (Tier 1 capital ratio)                                                                     11.30%               9.83%

C.3 Regulatory capital including Tier 3 / risk-weighted assets (Total capital ratio)                                          13.17%             11.52%

(*) In calculating capital requirements banks in the Italian banking groups also take account of
reduction requirements of 25%.

The ratios reported were prepared under the rules laid down by the 2nd update
Circular 263 of December 27, 2006 and the 12th update of Circular 155, 5
February 2008 (Basel 2), issued by the Bank of Italy.

242
PART G - BUSINESS COMBINATIONS
          businesses
Section 1 – Transactions carried out during the year
During the year, were not performed aggregation operations.




Section 2 - Transactions carried out after the balance sheet
With regard to the operation optimization Place, in January 2010,
it refers to what has been widely shown in the "Report on Operations - Other
information "and" Part A - Accounting Policies - Section 3 - Events after the date of
the balance sheet. "




                                                                                        243
Part H - Related-party transactions
Parent Company
1. Company name

UNION FOR ITALIAN BANKS
Cooperative shares.
In abbreviated form UBI Banca.

2. Head Office
Piazza Vittorio Veneto, 8 - 24122 Bergamo
Register of Companies of Bergamo No 03053920165
Register of Banks 5678.8
Register of Banking Groups 3111.2
Member of the Interbank Deposit Protection.

Management and coordination
In accordance with art. 2497 Civil Code, it sets out in the attached summary of
essential data of the last budget of the Parent ended December 31, 2008.


1. Information on the compensation of key management personnel

Directors' fees (1)



                                                                                          31/12/2009


          A) short-term benefits for employees (2)                                                     3.200

          Benefits following termination of employment (3)                                              209

          Other long-term benefits                                                                         -

          Allowances termination of employment                                                             -

          Share-based payments                                                                             -




(1) The "Managers" means the "entity's key management personnel including administrators
entity. "
(2) For example: wages, salaries and social security contributions, bonus payments instead of holiday and
sick leave, benefits in kind. Are included within the fixed and variable fees paid to
Directors as equivalent to the cost of labor and social security contributions paid by the company for employees.
(3) For example: pensions, other retirement benefits, life insurance and health care
after the employment relationship.



In regard to compensation paid during the year to key management personnel
strategic, including the General Manager, states that, in addition to the fixed component
of pay set by individual agreements, there is a significant
variable component linked to the achievement of strategic objectives of the Group.
With reference to the base salary is highlights the presence, in addition to the usual
payment in cash, of benefit to the completion of the remuneration package which
the supplementary pension fund, the health insurance policy, the policy and any injuries
allocation of company car for mixed use. There are no plans
encourage medium to long term.

In particular, we highlight the following institutions pay (for the definition of which can be found
the appropriate accounting policy):



244
   a) short-term benefits in favour of employees (*)
        In the short-term benefits are included salaries, social security contributions,
        replacement allowance for ex holidays not taken, sick leave, permits
        salaries, benefits such as medical care, and housing.
        Among the short-term benefits is subject, including the variable part of pay
        payment of which is related to qualitative and quantitative targets to annual value
        related to the Business Plan. This component accounts for an average of about 26.8%
        total labor cost paid by the company reported to the perimeter
        considered.

   b) benefits subsequent to employment
       In the post-employment benefits are covered by pension plans,
       pension, insurance and the treatment of severance pay.
       For managers in question are active forms of life insurance and
       supplementary pension benefits even after the time horizon
       termination of employment.

2. Information on transactions with related parties
In accordance with the provisions of the Consob Communication n. 97001574 of 20
February 1997, no 98015375 dated 27 February 1998, No 1025564 of 6 April 2001, No 14990
April 14, 2005 and most recently with the announcements No DEM/6064293 of 28 July 2006
No 15519 of July 28, 2006, states that all operations carried out by the parent company with
their related parties were carried out according to criteria of fairness
procedure, under conditions similar to those applied in transactions with entities
independent third parties.

Following the repeal of that by CONSOB April 14, 2005, the
third paragraph of art. 71-bis of Consob Regulation 11971/1999, whereby the
Previous n.2064231 Communication of 30 September 2002 defined the concept of parts
related, thus not only this definition refers to a related party of the issuer, the
accordance with International Accounting (International Accounting Standards - IAS) No 24,
part if:
a) directly or indirectly controls, is controlled by or is under control
     common with the issuer, or has an interest to exercise
     significant influence or joint control over the offeree issuer;
b) the issuer is an associate (as defined in IAS 28 - Investments
     in associates);
c) is a joint venture in which the issuer is a participant;
d) is a key management of the issuer or its parent,
     meaning to key management people who have the power and
     responsibility for planning, directing and controlling                               activities
     issuer, including the directors of the issuer;
e) is a close relative of one of the persons mentioned in subparagraphs a) or) (for immediate family members
     include those who have the potential to influence the individual
     related to the issuer, or be influenced in their relationship with the issuer);
f) is an entity controlled, jointly controlled or significantly influenced by a
     one of the persons referred to in subparagraphs d) or e), or those persons holding directly or
     indirectly, a significant proportion of the voting rights in that entity;
g) is a pension fund for employees of the issuer or any entity it
     correlated.

In particular, consistent with the organizational model that provides
centralization at UBI Bank of activities of strategic planning and management, and at
UBI Sistemi e Servizi SCPA activities of a technical-operational, the parent company and its
subsidiary to the various Group companies provide a range of services, regulated by
appropriate intercompany contracts drawn up based on the criteria of fairness, transparency and
homogeneity of the agreed payments for services rendered under such contracts have been
determined according to market conditions or, where they are not found on


                                                                                                   245
appropriate market benchmarks in relation to the specific characteristics of
services rendered on the basis of cost incurred.
Among the major intra-group contracts valid at the end of the year
indicate those that implement the centralization of activities at the parent company in the Areas
Government, Business and involving the parent company and the main banks of the Group
as well as agreements implementing the so-called consolidated tax return (referred to in Articles 117
to 129 of Presidential Decree No. 917/1986 of the Consolidated Income Tax) concluded by
Parent. Also to be announced all intercompany agreements that implement
centralization at UBI Sistemi e Servizi activities support all major
UBI Group of Companies.

With regard to the operation performed by the parent company with all its related parties
states that are not found atypical and / or unusual transactions of this type,
however, were not carried out even by persons other than related party transactions.
For atypical or unusual - just as described in the CONSOB
98015375 dated 27 February 1998 and No. 1025564 of 6 April 2001 - are all those
operations to materiality or importance, the nature of the counterparty, the subject of
transaction (including in relation to trading), how to determine the
transfer price and time of occurrence (close to the end of period)
may give rise to doubts regarding the accuracy / completeness of information in
financial statements, conflicts of interest, the protection of company assets, protection of
minority shareholders.

Further information about the transactions with related parties are set forth in
following tables.




246
Transactions with Group companies and companies subject to significant influence

                                                                                                                                            31/12/2009

                                                                           Assets                Assets
                                             Assets/liabilities
                        Related party                                    financial              financial       Due from              Due from               Derivatives          Deposits from       Deposits from          Securities in       Guarantees
                                            Held
                                                                      available for           held                banks                 customers            hedge                  banks              customers          issue                  GIVEN
                                            held for trading
                                                                           sale               to maturity

Parent company                                                    -                       -                 -       4.945.701                       -                      -               83.740                     -        2.311.070               83.564
Subsidiaries                                                      -                       -                 -                 -                     -                      -                      -                   -                   -                   -
Associates                                                        -                       -                 -                 -                     7                      -                      -                   -                   -                   -
Joint venture                                                     -                       -                 -                 -                     -                      -                      -                   -                   -                   -
Check / Connect to / from parent                                  -                       -                 -         669.376                 20.602                       -               26.168           147.187                       -              5.694
Executives                                                        -                       -                 -                 -                1.310                       -                      -          14.124                   137                     -
Other related parties                                             -                       -                 -                 -              105.792                       -                      -         142.542                   221                     -




The reports listed in the line "Affiliated companies" are for Systems and Services and UBI UBI Banca International SA, and in line
"Check / linked to / from parent" shows the other Group companies consolidated.



                                                                                                                                                31/12/2009

                                                                                                                                                                                                                                              Other operating expenses
                            Related party                 Interest and                      Dividends and       Commissions           Interest and other         income                        Expenditure         Commissions
                                                         similar income                   similar income           active                 management          similar charges              administered              passive                    management


Parent                                                                    120.902                           -              10.458                       77                 ( 67.981 )                 (48.096)                ( 2.854 )                       -
Subsidiaries                                                                          -                     -                     -                      -                           -                       -                       -                        -
Associate                                                                             -                     -                     -                     53                        (11)                ( 59.291 )                     -                        -
Joint venture                                                                         -                     -                     -                      -                           -                       -                       -                        -
Check / Connect to / from parent                                             4.288                          -              78.942                   119                        ( 2.802 )              ( 10.831 )              (1.024)                    (385)




In the line "Check / linked to / from parent" shows the Group's companies do not attend, but included in the scope of
consolidation.
Administrative expenses consist of fees for "service" to the parent company and UBI Sistemi e Servizi, and charges for personnel
seconded, net of recoveries.




                                                                                                                                                                                                                                                   247
                                                                                                                                             31/12/2009


                              Related party                                                                                                   Expenses/income
                                                                                                                Commissions                                           Other income                              Expenditure
                                                                          Net interest                                                         from operations
                                                                                                                   net                                                operating expenses                   administered
                                                                                                                                                 financial


                                                                                                     (610)                         89                           1                              1                                 -
Executives
Other related parties                                                                           2.427                          17.636                          17                              2                              (75)




                                                                                                                                                               31/12/2009

                                                                                   Assets                    Assets
                                               Assets/liabilities
                        Related party                                            financial                 financial            Due from               Due from                  Derivatives                 Deposits from      Deposits from          Securities in   Guarantees
                                              Held
                                                                              available for              held                     banks                  customers               hedge                         banks             customers          issue              GIVEN
                                              held for trading
                                                                                   sale                  to maturity

With related parties                                                  -                          -                     -            5.615.077                   127.712                            -               109.908              303.853          2.311.428          89.257
Total                                                               730                  21.283                        -            5.728.086                19.959.411                  71.942                    154.529           13.387.126        10.309.137        2.095.345
Incidence                                                                 -                          -                     -                 98.03%                 0.64%                              -            71.12%                2.27%               22.42%         4.26%




                                                                                                                                                         31/12/2009


                              Related party                                                                                                                           Expenses/income
                                                                                                                                                Commissions                                                Other income                     Expenditure
                                                                          Net interest                            Dividends                                            from operations
                                                                                                                                                   net                                                     operating expenses          administered
                                                                                                                                                                            financial


                                                                                               56.213                                -                  103.246                            18                                (133)                (118.218)
With related parties
Total                                                                                         572.204                                -                  287.514                         6.535                           56.893                    (524.344)

Incidence                                                                                       9.82%                                    -               35.91%                         0.27%                           -0.23%                     22.55%




            248
Part I - Share-Based Payment
           equity
For the Bank there is no such case.




                                      249
Part L - Segment reporting
In accordance with the provisions of IAS 14 and IFRS 8, the Bank, in
As a listed issuer with Italy as the home Member State under the
provisions of Legislative Decree no. 58/98 (Consolidated Law on Finance), Art. 1 letter. c w-as
changed following the introduction into Community law the so-called " Direct
Transparency "       would be required to draw up in their separate financial statements
of segment defined as the mode of representation of information
viability of the sector.
Furthermore, post the features of the Bank and in consideration of consistency with
the group information, it is considered more significant in producing the information
sector on a consolidated basis, which we refer.
In this context, the Bank shall, in conjunction with other network banks, making
part of an autonomous area.




Bergamo, March 18, 2010




                                                                    The Board of Directors




250
251
      Attached to the Financial Statements
                FOR THE PERIOD




252
A summary of the essential data of the parent company UBI
ScpA Bank (formerly Art. 2497 cod. civ.)

                                                     BALANCE SHEET
                                                           (in EUR’ 000)




                                                                           31/12/2008


   ASSETS'

    Cash and cash equivalents                                                     246.459

    Financial assets held for trading                                           2.424.111

    Financial assets designated at fair value through profit and loss             460.157

    Financial assets available for sale                                         2.767.513

    C) financial assets held to maturity                                        1.620.567

    Loans to banks                                                             29.298.338

    Loans to customers                                                         10.446.768

    Hedging derivatives                                                            72.787

    Equity investments                                                         11.909.207

    Fixed assets                                                                1.273.974

    Tax assets                                                                    593.404

    Non-current assets and disposal groups held for sale                           13.931

    Other assets                                                                  856.101

   TOTAL ASSETS                                                                61.983.317




                                                                           31/12/2008


   LIABILITIES'

    Due to customers and debt securities in issue                              19.942.079

    Due to banks                                                               28.732.514

    Financial liabilities held for trading                                      1.222.187

    Hedging derivatives                                                            74.820

    Tax liabilities                                                               411.849

    Other liabilities                                                           1.186.374

    Provision for employee severance pay                                           44.483

    Provisions for risks and charges                                               10.329

    equity                                                                     10.334.796

    Profit for the period                                                          23.886

   TOTAL LIABILITIES                                                           61.983.317




                                                                                            253
                                                    INCOME STATEMENT
                                                        (in EUR’ 000)




                                                                        31/12/2008


      Net interest income                                                      (250.789)

      Net fee and commission income                                              13.174

      Operating income                                                         473.897

      Net profit (loss) from financial activities                               (26.580)

      Operating expenses                                                       (248.430)

      Income (loss) before tax from continuing operations                      ( 257.468 )

      Income taxes                                                             281.354

      Net profit (loss) for the period                                          23.886




254
Public disclosure of fees for audit and other services
audit in accordance with Article of the Issuers Regulation. 149
k.

Pursuant to art. 149 k of the Issuers Regulation is
reported in the table below, information on the fees paid to
of the auditing firm KPMG and the companies belonging to the same network for
following services:
    1) review services which include:
             the task of auditing the annual accounts finalized the expression of an opinion
             professional;
             the audit work of the interim accounts.


    2) Certification services that include assignments in which the auditor considers a
        specific factor, the determination is made by another person who is
        responsible, through appropriate policies, in order to express a conclusion that
        provide the recipient with a degree of reliability in relation to that specific element.


    3) Tax consultancy services.

    4) Other services including positions as a residual.

The charges listed in the chart, for the year 2009, are
under contract, including any indexes (but also living expenses,
the possible contribution to vigilance and VAT).
Are not included, as that provision, the fees paid to any auditor
secondary or subjects of their networks.

                                 Person who has                                                 COMPENSATION
     Type of service                disbursed              Recipient of the service
                                                                                              (in thousand)
                                     Service
Audit                              KPMG S.p.A.        Banca Popolare di Bergamo SpA                  371
Certification services             KPMG S.p.A.        Banca Popolare di Bergamo SpA                   17
Tax advice
Other services
Total                                                                                                388




                                                                                                      255
Real estate listings

                                                                                       Revaluation of      Revaluation of     Revaluations                           Funds               Other
                              Location                               Investments                                                                Gross values                                            Val. in budget
                                                                                            Law                M                   IAS                           Amortization       Movements


1   BERGAMO                 P. ZZA V. VENETO, 8                         3.183.912,53       8.307.651,92                0,00       753.092,50    12.244.656,95       -6.040.250,65                0,00       6.204.406,30
2   ROME                    Via Benedetto Croce, 24                     5.099.999,99                0,00               0,00              0,00     5.099.999,99        -505.164,82                0,00       4.594.835,17
3   SEREGNO                 Via San Vitale, 17/21                       1.559.999,99                0,00               0,00              0,00     1.559.999,99        -244.004,04                0,00       1.315.995,95
                                                                       9.843.912,51        8.307.651,92                0,00      753.092,50     18.904.656,93       -6.789.419,51                0,00     12.115.237,42




It specifies that the properties listed under 2 and 3 are acquired in leasing.




      256
257
      Articulation
       territorial




258
259
The branch presented include the effects of the optimization
Territorial.

LOMBARDIA

        Province of Bergamo
Bergamo
        Piazza Vittorio Veneto, 8
        Viale Vittorio Emanuele II, 5 (c / o INPS)
        Viale Vittorio Emanuele II, 2
        Via dei Caniana, 2 (c / o University)
        Via Borgo Palazzo, 51
        Via Borgo Santa Caterina, 6
        Gomba Street, 6
        Via Borgo Palazzo, 135
        Via Gleno, 49
        Via Mattioli, 69
        Piazza Risorgimento, 15
        Piazza Pontida, 39
        Via Leone XIII, 2
        Via San Bernardino, 96
        Via Stezzano, 87 (c / o Kilometrorosso)
        Via Wolf Brigade, 2
        Largo Rezzara - Piazza Pontida, 3
Adrara Madaschi Via San Martino, 103
Adrara San Rocco Piazza Papa Giovanni XXIII, 6
Albano Sant'Alessandro Via Cavour, 2
Albino
        Via Mazzini, 181
        Long Street, 1 (Fraz Fiobbio)
Almè Via Torre d'Oro, 2
Almenno San Bartolomeo Via Falcone, 2
Almenno San Salvatore Via Marconi, 3
Alzano Lombardo Piazza Garibaldi, 3
Arcene Corso Europa, 7
Ardesio Via Locatelli, 8
Azzano San Paolo Piazza IV Novembre, 4
Bariano Via A. Locatelli, 12
Barzana Via San Rocco
Berbenno
        Via Stoppani, 102 (Fraz Ponte Giurino)
        Piazza Roma, 2
Bolton Piazza IV Novembre, 14
Above Bonate Piazza Vittorio Emanuele II, 20
Via Capitan Bossico Rodari, 2
Bremer Via Libertà, 25
Brignano Gera d'Adda Via Mons Donini, 2
Calcined Coclino Street, 8 / C
Football Via Papa Giovanni XXIII, 153
Calusco d'Adda Via Vittorio Emanuele II, 7
Via San Gervasio trusses Paris, 4
Caprino Bergamasco Via Roma, 10
Caravaggio Piazza G. Garibaldi, 1
Carvico Via Europa Unita, 3
Casazza Via Nazionale del Tonale, 92
Casirate d'Adda Piazza Papa Giovanni XXIII, 1
VALLEVE
        Via Donizetti, 2 (Fraz Bratton - Dorga)
        Via A. Manzoni, 20


260
Via Sant'Andrea Cazzano A. Turkeys, 18
Dine on Via Giovanni XXIII, 16
Dine In Via Verdi, 5
Dinners Via Vittorio Veneto, 9
Via Cerete Moscheni, 44 (Fraz Cerete Low)
Chiuduno Via Cesare Battisti, 1
Cisano Bergamasco Via Pascoli, 1
Ciserano Via Borgo San Marco ang. Via Garibaldi, 7 (Fraz Zingonia)
Cividate Plan Via Papa Giovanni XXIII, 3
Clusone Via Verdi, 3
Coleraine
        Via Tortola, 58
        Via Papa Giovanni XXIII, 33 (Fraz Dezzo Scalve)
Comun Nuovo Via Cesare Battisti, 5
Costa Volpino Via Nazionale, 150
Curno Largo Vittoria, 31
Dalmine
        Buttaro Street, 2
        Memorial Square July 6, 1944 (c / o Tenaris SpA)
Dossena Carale Street, 9
Entratico Piazza Aldo Moro, 18
Fontanella Via Cavour, 156
Spread Via Foresto Tremellini, 1
Via C. Gandino Battisti, 5
Gazzaniga Via Marconi, 14
Gorlago Gregis Square, 12
Donor Gorle Piazzetta, 5
Grassobbio Viale Europa, 8 / B
Grumello del Monte Via Martiri della Libertà, 10
Leffe Via Mosconi, 1
Lovere
        Via Tadini, 30
        Via Paglia, 45 (c / o Lovere Sidermeccanica SpA)
Madone Via Papa Giovanni XXIII, 44
Mapello Dordi Square, 5
Via Martinengo Pinetti, 20
Monasterolo Castle Via Monte Grappa, 27
Nembro Liberty Square
Honor Via Danghelo
Via Orio al Serio Airport, 13
Osio Sopra Via XXV Aprile, 29
Osio Sotto Via Cavour, 2
Paladina Via IV Novembre, 13
Palosco Piazza A. Manzoni, 16
Parre Via Duca d'Aosta, 20 / A
Piario Via Mazzini, 1 / A
Piazza Brembana Via B. Belotti, 10
Via Ponte Nossa Frua, 24
Ponteranica Pontesecco Street, 32
Ponte San Pietro Piazza SS Peter and Paul, 19
Pontida Via Lega Lombarda, 161
Presezzo Capersegno Street, 28
Ranica Piazza Europa, 2
Romano di Lombardia Via Tadini, 2
Imagna Calchera Via Rota, 1
Tosi Via Rovetta, 13
Via San Giovanni Bianco Cantiglio Martyrs, 19
San Pellegrino Terme, Via S. Charles, 3
Sant'Omobono Terme Viale alle Fonti, 8
                                                                     261
Sarnico Piazza Umberto I
Scanzorosciate Via Roma, 27
Schilpario Via Torri, 8
Sedrina Via Roma, 14
Selvino Via Monte Rosa - Birch Street corner
Seriate Viale Italy, 24
Sovere Via Roma, 36
Spirano Via Dante, 9 / B
Stezzano Via Bergamo, 1
Carabello Suisio Via Poma, 31
Taleggio Via Roma, 63 (Fraz Olda)
Tavernola Bergamo Via Roma, 12
Telgate Morecambe Street, 17
Torre Boldone Via Carducci, 12
Torre de Roveri Piazza Conte Sforza, 3
Trescore Via Locatelli, 45
Treviglio Viale strips, 11
Ubiale Clanezzo Via Papa Giovanni XXIII, 1
Urgnano Via Matteotti, 157
Valbrembo Via Roma, 52
Verdello Via Castello, 31
Via S. Vertova Rocco, 45
Viadanica Stone Street, 4
Vigolo Via Roma, 8
Villa d'Adda Via Fossa, 8
Villa d'Almè Via Roma - corner Via Locatelli, 1
Villongo Via Bellini, 20
Vilminore Scalve Piazza Giovanni XXIII, 2
Via G. Zandobbio Green, 2
Zogno Viale Martiri della Libertà, 1

        Province of Brescia
Brescia Via Gramsci, 39
Chiari Bettolini Street, 6
Concesio Viale Europa, 183
Darfo Piazza Col. Lorenzini, 6
Desenzano del Garda Viale Andreis, 74
Esine Via Manzoni, 97
Manerbio Via Dante, 5
Orzinuovi Piazza Vittorio Emanuele II, 31/33
Ospitaletto Via Martiri della Libertà, 27
Palazzolo Piazza Roma, 1
Paratico Via Don G. Moio, 17
Rezzato Via Europa, 5
San Paolo Via Mazzini, 62
San Zeno Naviglio Via Tito Hope, 1

        Province of Como
Como
        Via   Giovio, 4
        Via   Thousand 2 / B
        Via   Badone, 48 (Fraz Camerlata)
        Via   Gallio ang. Via Bossi
        Via   Cattaneo, 3
        Via   Aldo Moro, 46/48
        Via   Giulio Cesare, 26/28




262
Canterbury
        Piazza Marconi, 9
        Via Enrico Toti, 1 / A (Fraz Vighizzolo)
        Largo Adua, 11
Casnate with Bernate SS Giovi, 5
Cermenate
        Via Matteotti, 28
        Via Matteotti, 29/31
Grass
        Via Leopardi, 7 / E
        Via Mazzini, 12
Guanaba Via Roma, 24
Lomazzo Via Monte Generoso, 11
Lurate Caccivio Via Varese, 88
Mariano Comense
        Course Brianza, 20
        Viale Lombardia, 54-54 / A
Olginate Comasco
        Via Roma, 39
        Via Roma, 75
San Oltrona Mamette Piazza Europa, 6
Rovellasca Via Volta, 1

         Province of Lecco
Lecco
         Corso Matteotti 3
         Resinelli Street, 2
         Piazza Alessandro Manzoni, 16
         Via Amendola, 6
Via Don Bulciago Channels 33/35
Italy kick off, 8
Calolziocorte Piazza Vittorio Veneto, 18 / A
Carenno Via Roma, 36
Cernusco Lombardone Via S. Catherine, 4
Costa Masnaga Via Cadorna, 18
Merate Via Alessandro Manzoni, 56
Monte Marenzo Town Hall Square, 5
Via S. Olginate Agnes, 38
Valmadrera Via Fatebenefratelli, 23

         Province of Milan
Milano
       Via Manzoni, 7
       Corso Europa, 16 (c / o Centrobanca SpA)
       Piazza Cinque Giornate, 1
       Via Foppa, 26
       Course Italy, 22
       Via Richard, 5 (c / o Nestle SpA)
       Via Rizzoli, 8 (c / o RCS)
Cassano d'Adda, Via Milano, 14
Cornwall Via Tolomeo, 1 (c / o St Microelectronics SpA)
Cornate d'Adda
       Via Circonvallazione, 10/12/14
       Via Silvio Pellico, 10 (Fraz Colnago)
Grezzago Piazza Aldo Moro
Mezzago Via Concordia, 22
Trezzo
       Via A. Hall, 11
       Piazza Libertà, 1
                                                          263
Vaprio d'Adda Memorial Square, 2
Villasanta Via Confalonieri, 5

         Province of Monza - Brianza
Monza
        Via Borgazzi, 83
        Piazza Giuseppe Cambiaghi, 1
        Via San Rocco, 44
        Pesa Via del Lino, 2
        Via Boito, 70
        Via F. Cavallotti, 136
        Via F. Cavallotti, 27
        Via Manzoni, 22/30
        Via Carlo Rota, 50
        Piazza Duomo, 5
Agrate Brianza
        Via C. Olivetti, 2 (c / o St Microelectronics SpA)
        Via Marco D'Agrate, 61
Arcore Via Casati, 45
Biassono Via Cesana and Villa, 104
Brugherio Via de Gasperi, 56/62/64
Carate Brianza Via Cusani, 49/51
Carnate Via Don Minzoni
Cesano Maderno Via Conciliazione, 29 (Fraz Binzago)
Concorezzo Via Monza, 33 (c / o Alcatel Italy SpA)
Desio Via Matteotti, 10
Giussano Via IV Novembre, 80 (Fraz Brugazzo)
Limbiate Via dei Mille, 32
Liss Via San Carlo, 4
Meda Street Independence, 11
Nova Milanese Via Brodolini, 1
Seregno
        Via S. Vitale, 17
        Via Medici Seregno, 29/31
        Corso Matteotti, 64
Sulbiate Mattavelli Street, 2
See al Lambro Largo della Repubblica, 7
Vimercate
        Via B. Cremagnani, 20 / A
        Via Torri Bianche, 3
        Via Garibaldi, 12
        Via Giuseppe Mazzini, 72
        Via Trento, 30 (c / o Alcatel - Lucent SpA)

         Province of Varese
Varese
         Via Vittorio Veneto, 2
         Via Dalmatia, 63
         Piazza IV Novembre, 1 (Fraz Biumo Lower)
         Via Val Venosta, 4 (Fraz Lower Biumo - c / o Ascom Varese)
         Luigi Viale Borri, 155
         Viale Borri, 237 (c / o Bassani Ticino SpA)
         Pasubio Street, 2
         Via Caracciolo, 24
         Via Virgilio, 27
         Via San Vito Silvestro, 60
         Via B. Luini, 3
         Via Veratti, 10
         Baptistery Piazza, 2


264
Varese
         Viale Borri, 106
         Via Griffi, 6
         Via S. Sanvito, 55
         Via Magenta, 3
         Luigi Viale Borri, 146
Via M. Angera Greppi, 33
Azzate Via Vittorio Veneto, 23
Besozzo
         Via XXV Aprile, 77
         Via XXV Aprile, 24
Biandronno Piazza Cavour
Bisuschio Via Mazzini, 28
Bodio Lomnago Via Risorgimento, 23
Busto Arsizio
         Piazza S. John, 3 / A
         Course Italy, 54
         Via Magenta, 64
         Viale Alfieri, 26
         Viale Cadorna, 4 - Via Cattaneo, 9
         Via Foscolo, 10
         Corso Europa ang. Piazza Venzago
Cairate
         Via Mazzini, 13
         Via Genova, 1 (Fraz Bolladello)
Canterbury Street Turcotte, 1
Caravate Via XX Settembre, 22
Cardano al Campo
         Via A. Gramsci, 89
         Via Gerolamo Cardano, 19
Caronno Pertusella Via Roma, 190
Casale Litta Via Roma, 4
Casorate Sempione Via Milano, 17
Cassano Magnano
         Via Aldo Moro, 6
         Via Aldo Moro, 10 / B
Castellanza Soldini Square c / o Libero Istituto Universitario Carlo Cattaneo
Castiglione Olona
         Via Papa Celestine, 22
         Via Cesare Battisti, 58
Castronno Via Roma, 51
Cavaria with Premezzo Via Scipione Ronchetti, 1318
Cislago Via IV Novembre, 250
Cittiglio Valcuvia Street, 19
Ermizada Clive Street, 10
Comerio Lake Street, 2
Cunardo Luinese Street, 1 / A
Via Cuveglio Battle of San Martino, 50
Cuvio Via Giuseppe Maggi, 20
Davenport Via Giovanni XXIII, 1
Fagnano Olona Piazza Cavour, 11
Ferno Piazza Dante Alighieri, 7
Gallarate
         Via A. Manzoni, 12
         Via Buonarroti, 20
         Via Marsala, 34
         Via Varese, 7 / A (Fraz Cascinetta)
         Via Raffaello Sanzio, 2
         Via Torino, 28
                                                                                265
Gallarate
        Piazzale Europa, 2
        Via Verdi, 1
Gavirate
        Piazza della Libertà, 2
        Via IV Novembre, 21
Gazzada Schianno Via Roma, 47 / B
Gemonio Via Giuseppe Verdi, 24
Gerenzano Via GP Clerici, 124
Germantown Piazza XX Settembre, 51
Gorla Maggiore Via Verdi, 2
Gornate Olona Square Parakeets, 1
Induno Olona
        Via G. Porro, 28
        Via G. Porro, 46
Ispra, Via Mazzini, 59
Jerago con Orago Via Matteotti, 6
Lavena Ponte Tresa
        Via Valle, 4
        Piazza A. Gramsci, 8 (Fraz Ponte Tresa)
Laveno Mombello
        Via Labienus, 53
        Via Labienus, 81
        Via Labienus, 89
Leggiuno Bernardoni Street, 9
Lonate Ceppino Via Don Albertario, 3
Lonate Pozzolo
        Piazza Mazzini, 2
        Via Cavour, 1
Luino
        Via Vittorio Veneto, 6 / A
        Via Piero Chiara, 7
Macclesfield Viale Garibaldi, 13
Malnate Republic Square - corner Via Garibaldi
Marchirolo SS 233,27
Marnhull Via Diaz, 12 - corner Via Genova
Via Mercallo Prandoni, 1
Mesenzana Via Provinciale, 11
Monvalle Piazza Marconi, 1
Mornington Via Cellini, 3 - corner Via Carugo
Olgiate Olona, Via G. Mazzini, 56
Origgio
        Via Repubblica, 10
        Road Varesina, 233 (c / o Novartis SpA, Italy)
Port Lugano Via Roma, 2
Porto Valtravaglia Square Dock, 17
Saltrio Via Cavour, 27
Samarate Street N. Locarno, 19 (Fraz Verghera)
Saronno
        Via P. Micca, 10
        Via Roma, 85
        Via Giuseppe Garibaldi, 5
        Piazza Borella, 4
        Via San Giuseppe, 29
Sesto Calende
        Via XX Settembre, 35
        Piazza Cesare Abba, 1
Solbiate Via Arno A. Agnelli, 7
Somma Lombardo Corso della Repubblica - ang. Via Rebaglia


266
Sumirago Via Brioschi, 2
Ternate Piazza Libertà, 14
Tradate
        Via XXV Aprile, 1 - Ing corner of Corso Bernacchi
        Via Vittorio Veneto, 77 (Fraz Have Guazzone)
        Via Antonio Cantore, 1
        Corso Bernacchi, 5
Travedona Monate Via Roma, 1
Uboldo
        Via R. Sanzio, 46
        Via Italy, 2
Varano Borghi Via Vittorio Veneto, 6
See Piazza S. Olona Rocco, 8
Venegono Mauceri Lower Street, 16
Venegono
        Via Paolo Busti, 3
        Piazza Monte Grappa, 8
Viggiù Via A. Castagna, 1

LAZIO
        Rome Province
Rome
      Via Crociferi, 44
      Via del Monte della Farina, 23
      Via S. Silverio, 57
      Largo Salinari, 24 - ang. Via B. Cross 82/84
      Viale Gorizia, 34
      Via di Porta Castello, 32
      Via Val Maira, 125/131
      Via Tiburtina, 604
      Via Airport, 14/16
      Via Pietro Boccanelli, 30 (c / o Development SpA Italy - Campo Elba)
      Via Calabria, 46 (c / o Development SpA Italy)
      Via Gattamelata, 109
      Via Donna Olimpia, 128
Monterotondo Via Salaria, 204
Pomezia Via dei Castelli Romani, 22




                                                                             267
      GLOSSARY




268
ABF (A pecuniary RBITRO BANK F)
The referee Banking Finance (ABF) is an organization for the ADR
disputes in accordance with art. 128-bis of the Consolidated Banking Law (Banking Law), introduced by Law
Savings (Act No. 262/2005). The organization and operation are ABF
governed by the "Measures on the systems of ADR in
regarding transactions and banking and financial services "issued by the Bank of Italy June 18
2009.
Membership is compulsory by all banks and other financial intermediaries.
All'ABF operational since October 15, 2009, may be referred all disputes concerning
concerns the determination of rights, obligations and entitlements, irrespective of
relation to which they relate. If the applicant's request relates to the payment
a sum of money for any reason, the case falls within the knowledge ABF
provided that the amount claimed does not exceed € 100,000.
Are excluded disputes relating to services / investment activities and the siting of
financial products and transactions and services that are components of products
financial, for which we can now turn to the Ombudsman at Jury banking
Mediator for the banks and financial institutions (see definition) and in the future to the Dispute Resolution Chamber
Arbitration and next up with Consob 43.
The completion of the complaint to the intermediary stage of a condition
preliminary and need to refer to the ABF, which can be used in cases of successful
unsatisfactory outcome of the complaint or failure of the complaint within the thirty
days after receipt by the Bank.
The action is free except for the payment of an amount equal to 20 € for contribution to
costs of the procedure that must be repaid by the Bank to the applicant if the
College grants the application in whole or in part.
Unlike the instrument of reconciliation, which seeks to facilitate the achievement of a
agreement between the parties, the ABF expresses a decision on the complaints received through a dedicated
the bench, regardless of the ability of the parties to resort to the judicial authorities or
stipulated by any other means to protect their interests.
The ABF consists of a decision-making body consisting of three colleges (Milan, Rome and Naples) and
by a technical secretariat held by the Bank of Italy. In each panel is the decision-making body
composed of five members, three of which (including the chairperson) appointed by the Bank
of Italy, one from an intermediary associations and associations representing
customers.

ABS (A B SSETI ACKED S ECURITIES)
Financial instruments issued in connection with securitization transactions (see definition) whose
yield and redemption are guaranteed by the originator's assets (see definition), for
exclusively to the satisfaction of the rights incorporated in such securities.
Technically, the debt securities are issued by a special purpose vehicle (SPV - cf. Definition).
The portfolio underlying the securitization transaction may consist of loans
mortgages, loans, bonds, trade receivables, receivables from credit cards or
more. Depending on the type of assets underlying the ABS can be
classified as:
      · Credit loan obligations CLOs (the portfolio consists of bank loans);
      · Collateralized bond obligation CBO (the portfolio is made up of bonds);
      · Collateralized debt obligations (CDO's portfolio consists of bonds,
          and debt securities generally);
      · RMBS residential mortgage backed securities (the portfolio consists of loans
          mortgage loans on residential buildings;
      · CMBS commercial mortgage backed securities (the portfolio consists of loans
          mortgages on commercial real estate).



43   Resolution No. 16763 of 29 December 2008, Consob has approved the rules for the implementation of Decree
     No legislative October 8, 2007 179 on the Chamber of Conciliation and Arbitration, and procedures. La
     full operation of the Chamber will start once in place the necessary procedures. It
     may be submitted, at the initiative of the investor, all disputes relating to investment services,
     unlimited amount, provided that you have filed a complaint with the broker.
                                                                                                                269
ACQUISITION FINANCE
Funding the service of corporate acquisitions.

ADR (A LTERNATIVE D ISPUTE eSolutions R)
In Italian, "Alternative Dispute Resolution." The acronym refers to a set of methods,
tools, techniques, extra-judicial dispute resolution: one or both sides
rely on an impartial third party to end a dispute, refer the matter without
court.

ALM (A & L IABILITY SSETI M ANAGEMENT)
Integrated management of assets and liabilities designed to allocate resources with a view to
optimization of the risk-return ratio.

A LTERNATIVE I NVESTMENT
Range of forms of investment including, among other things, private equity investments
(See definition) and investments in hedge funds (see definition).

ASSET MANAGEMENT
Management activities of financial investments of others.

ATM (A UTOMATED T ELLER M Achin)
Automatic equipment for the making by the clients of such operations
For example, cash withdrawals, payment of cash or checks, the request for
account information, payment of utilities, phone cards, etc.. The customer activates the
introducing a card terminal and entering a personal identification code.

RISK-WEIGHTED ASSETS
It is the amount obtained by multiplying the total capital requirements (risk
credit, market risks and other prudential requirements) by a factor equal to:
          14.3 for companies belonging to banking groups;
          12.5 for banking groups (consolidated) and the companies do not belong to banking groups.

A HEARING
Control process on the business and corporate accounts are being done by both
internal structures (internal audit - see. definition) and from third parties (external audits).

BACKTESTING
Retrospective analysis to verify the reliability of measurement of risk associated with
positions in asset portfolios.

BANCASSURANCE
An expression that indicates the typical insurance product offering through the network
operation of the banks.

B Anking BOOK
Usually identifies the part of a portfolio of securities, or other financial instruments in
generally intended to "proprietary".

B ASILEA 2
New international agreement on capital which have been redefined guidelines for
the determination of minimum capital requirements of banks 44.


44   The first version of the agreement, known as Basel 1, dates back to 1988 and was also signed in the city
     Switzerland where the headquarters of the Bank for International Settlements (BIS), an organization that promotes from 1930
     monetary and financial cooperation on a global scale, known in Italy as Bank Settlements
     International Settlements (BIS). It operates within the Basel Committee, established by the governors of central banks
     of the ten most industrialized countries (G10) at the end of 1974, which was responsible for the drafting of the agreements. Make
     it today

270
The new prudential regulation is based on three pillars.
      First pillar (Pillar 1): while aiming for a level of capitalization of
      8% of risk weighted exposures was outlined a new system
      rules for the measurement of risks inherent in banking and finance (credit,
      counterparty, market and operational), which provides alternative methods of calculation
      characterized by different levels of complexity with the ability to use, after
      approval of the Supervisory Body, the models developed internally;
      second pillar (Pillar 2): The banks should adopt processes and tools
      determine the level of overall internal capital (Internal Capital Adequacy
      Assessment Process - ICAAP) adequate to manage any type of risk, even
      other than those guarded by the total capital requirement (Pillar).
      Supervisory Authority has the task of examining the ICAAP, to formulate
      enable a comprehensive assessment and, where necessary, appropriate corrective action;
      third pillar (Pillar 3): introduces requirements for publication of information
      on capital adequacy, risk exposure and the characteristics
      General of the systems for the identification, measurement and management of such
      RISK.

POINT B ASIS (basis points)
Corresponds to a hundredth of a percentage point (0.01%).

BASIS SWAP
A contract under which the exchange between two parties, of payments related to variable rates
based on a different index.

BENCHMARK
Benchmark for investments: it can be represented by the indices
market that is best known by others deemed more representative of the profile
risk and return.

BEST PRACTICE
Behavior commensurate with the most significant experiences and / or at the best level reached
art skills to a certain field technical / professional.

CAGR - C G ROWTH OMPOUND A NNUAL R ATE (COMPOUND ANNUAL GROWTH RATE)
Annual growth rate applied to an investment or other activities for a period
MAP. The formula for calculating CAGR is [(present value / base value) ^ (1 / number of years) -1].

CAPITAL ALLOCATION
Process leading to the decision of how to distribute the investment between the different categories of
financial assets (including bonds, equities and cash). The choices of capital
allocation are determined by the need to optimize the risk / reward ratio in
relation to the timing and expectations of the investor.

C Aptiva
Term generally referring to "networks" or companies that work exclusively with clients
company or group.




 by representatives from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, Netherlands,
 Spain, Sweden, Switzerland, United Kingdom, United States.
 The Basel Committee has no supranational authority: member countries may decide to accede to the agreements but
 are not bound to accept the decisions of the Committee. The obligation of the provisions of Basel 2 for
 EU countries follows, in fact, by a directive of the European parliament has adopted in September 2005.
 The first Basel Accord, signed by the central authorities of more than 100 countries, established the obligation for banks
 members to set aside a share of capital equal to 8% of loans made independently
 from assessment through rating procedures, the reliability of companies that had requested them.
                                                                                                                271
CARTOLARIZZAZIONE
Operation of the transfer of credits or other financial assets not traded company
vehicle (SPV - cf. definition) which has as its sole object the execution of such operations
and provides for the conversion of such debt or assets in securities traded on a market
secondary.

C ERTIFICATI (INSURANCE) OF CAPITALIZATION
The capitalization contracts fall within the scope of regulations on
direct life insurance pursuant to Legislative Decree no. 174 of 17 March 1995. As
defined in Art. 40 of legislative decree, to issue contracts under which a
insurance company agrees to pay, in return for payment of premiums
single or periodic, a lump sum equal to the premium paid regularly reassessed on the basis of
Performance of a separate internal management of financial assets or, if higher, a
guaranteed minimum return. They can not be shorter than five years and is
made it possible for the contractor to obtain the surrender of the contract since the beginning of the second
year. Under Article. 31 of the aforementioned Legislative Decree no. 174, financial assets to cover
technical provisions are reserved exclusively for the performance of obligations
related to capitalization contracts (separate management). Consequently, if
liquidation of the insurance company (art. 67), the beneficiaries of such policies are of
that holders of claims secured by liens.

COMMERCIAL PAPER
Short-term securities issued to raise funds as an alternative to a third party underwriters
other forms of debt.

C ONCILIATORE BANK F pecuniary
The "Council banks and financial institutions - Association for the resolution of bank,
financial and corporate - ADR "is an initiative under the auspices of the ABI from the first
ten banking groups, including the UBI Banca Group, to give the Customer Services
Disputes rapid and efficient alternative to the courts (ADR
English: Alternative Dispute Resolution - cf. definition).
The services offered are:
        Conciliation is to try to resolve a dispute by entrusting a
        experienced and independent person (the mediator) to facilitate the task
        reaching an agreement between the parties to avoid litigation in the courts.
        The agreement is binding on the parties and may be approved by the Court
        making it enforceable. The conciliation service at the Council
        banks and financial institutions was held by the 'Body of conciliation Banking, joined the
        register of bodies appointed to manage the reconciliation efforts in accordance with art. 38
        of Legislative Decree no. January 17, 2003, No 5;
        Arbitration: procedure in which the parties submit a dispute to an arbitrator or
        A panel of arbitrators, giving them the power to decide;
        Banking Ombudsman Jury: body launched in 1993 in the ABI to which the
        Customers, unsatisfied claims of the decisions of the Bank, or whose
        complaint has not succeeded within the prescribed period, may apply for free in
        second instance. The Ombudsman's management was transferred to the Conciliator
        banks and financial institutions from 1 June 2007.
        Ombudsman may be subject to litigation services
        investment relating to the determination of rights, obligations and entitlements,
        irrespective of relationship to which they relate. If the request
        subject to the payment of a sum of money, the matter falls within the
        Ombudsman's jurisdiction if the amount claimed does not exceed € 100,000;
        The Ombudsman shall decide within 90 days of receipt of the request for
        intervention. The Ombudsman does not exclude recourse to the customer the option of applying in
        Judicial Authority at any time, in a conciliatory body, or a
        arbitration, while the decision is binding on the party.




272
CONDUIT
See also the voice SPE / SPV.

C ONSUMER FINANCE (consumer credit)
Loans granted to households for the purpose of personal consumption of goods and
services.

C ONTRACT ADMINISTRATION OF WORK
Case report of work completed, regulated by Decree. September 10, 2003, No 276
(So-called Biagi Law, based on the enabling act Feb. 14, 2003, No 30), whereby a
legal entity that relies on the work performance of an employee hired by
business administration approved by the Ministry of Labour. The relationship between
the user and the enterprise of administration are governed by a contract which governs
profiles and also pay contributions (social security charges).
This form of contract replaced the temporary employment relationship established by Law 24
June 1997, No 196 (cd Treu reform).

AT 1 R T C IER ATIO
Ratio of core capital (Tier 1 - cf. Definition) net tools
innovative capital and total risk-weighted assets (see definition).

CORPORATE GOVERNANCE
Through the composition and functioning of the internal and external organs, the
structure           corporate governance         defines the distribution of rights and
responsibilities among the participants in the life of a society, with reference to the distribution of
tasks, taking responsibility and decision-making. Key objective
corporate governance is the maximization of shareholder value, resulting in
the medium to long term, positive elements for the other stakeholders,
such as customers, suppliers, employees, creditors, consumers and the community.

C OST I nHow R ATIO
Economic indicator defined as the ratio between operating costs and margin
intermediation.

OVERED C BOND
Special bonds that, in addition to the guarantee of the issuing bank may use
also the guarantee of a portfolio of mortgage loans or other high quality
assigned for that purpose, for a special purpose vehicle 45.
Banks wishing to issue covered bonds must not have a heritage
less than € 500 million and a total capital ratio at
Consolidated no less than 9%. Assets that could be used as collateral, the share
transferred does not exceed the following limits set according to the level of
capitalization:
       25% in cases of capital charge                  9% and 10% with Tier I ratio     6%;
       60% in cases of capital charge                  10% and 11% with Tier I ratio     6.5%;
       no limit in cases of capital charge                        11% with Tier I ratio   7%.

CPI (C REDIT P ROTECTION I NSURANCE)
Insurance credit protection that may be subscribed by the borrowers
financial loans (personal loans, mortgages and credit cards) to provide them (as


45   Under Italian law April 30, 1999, No 130, governs the case of bank bonds
     guaranteed (art. 7-bis). The operational plan provides for the sale by a bank to a company vehicle
     high credit quality assets (loans and mortgages to the government) and the emission from
     a bank, also different from the seller, obligations guaranteed by the vehicle in respect of the assets
     purchased and made into a special fund. The profiles are contained in the application of discipline
     Ministerial Regulation No. 310, 14 December 2006 and the supervisory arrangements of the Bank of Italy 15
     May 2007.
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insurance) to cover payment of the outstanding debt or a number of installments
case of temporary or permanent adverse events (involuntary loss of employment,
illness, injury, permanent disability or death). These policies can be combined
including financial firms, with a coverage of events
may affect the shareholders, directors or key figures of the company.

C REDIT CRUNCH (credit crunch)
Significant decline (or sudden tightening of conditions) in credit to
business after a prolonged period of expansion, can enhance the phase
recession ..

C REDIT S D EFAULT WAP
Contract under which a person, upon payment of a premium magazine, moved to a
another person the credit risk inherent in a loan or a title, the occurrence of a
certain event-related deterioration of the creditworthiness of the borrower.

C ADEQUATE INCOME RESTORED
Position for which the Bank has agreed with the debtor time to pay,
renegotiating the conditions of exposure rate lower than the market.

DEFAULT
Identify the condition of stated inability to honor its debt and / or
payment of relevant interests.

D ERIVATI OTC NEGOTIATIONS WITH THE C LIENTELA
Support activities for clients in the management of financial risks, particularly those
caused by the oscillation of the exchange rates, interest rates and prices of
commodities (raw materials).

D ISASTER RECOVERY GEOGRAPHIC
Set of technical procedures and organize in the face of a catastrophic event that
result in the unavailability of complete data processing site. The aim is to reactivate the
business-critical applications at a secondary site (known as recovery). The system
disaster recovery is defined as "geographical" when it is located at least 50 km from the system
origin. The primary objective is to mitigate the risks arising from catastrophic events with
possible impact on an entire metropolitan area (ie earthquakes, floods, events
war etc..) as required by international safety standards.

DURATION
Refers to a security or a bond portfolio, is usually an indicator
calculated as a weighted average of the schedule of payments for interest and principal
associated with the same title.

EAD (E Xposure EFAULT ATD)
Estimated future value of an exposure at default (as defined) of the corresponding
debtor.

ETF (T RADED E XCHANGE F UND)
Particular type of investment fund trades on such an action, having
as the sole investment objective is to replicate the index to which it relates
(Benchmark) through a totally passive management. The ETF sums up the
characteristics of a fund and an action, allowing investors to exploit
strengths of both instruments through diversification and reducing the
risk their own funds, while ensuring flexibility and transparency of information
real-time trading of the shares.




274
ETC (E XCHANGE C OMMODITIES RADED T)
Financial instruments issued in connection with the issuer or investment in commodities
physical (in this case are defined physically-backed ETCs) or derivatives matters
first. The price of ETCs is therefore linked directly or indirectly upon
the underlying. Similarly to the ETF (see definition) ETCs are traded on a stock exchange
actions, passively replicating the performance of the commodity or index
raw materials to which they refer.

And URIBOR (E URO Interbank Offered Rate)
Interbank interest rate at which leading banks exchange deposits in EUR
repayments. It is calculated as the simple average of daily quotations
at eleven o'clock on a sample of banks with high credit selected
periodically by the European Banking Federation. Euribor contracts are tied to various
variable rate loan (eg home loans).

FACTORING
Transfer agreement, without recourse (with credit risk borne by the transferee) or pro
recourse (with credit risk borne by the seller), trade receivables to banks or
specialized companies for administration and collection, which may be associated with a
financing to the seller.

FAIR VALUE
Amount for which, under conditions of free competition, a good can be exchanged
a liability settled, between knowledgeable, willing parties. It is often identical to the price of
market. In accordance with IAS (see definition) the banks apply the fair value evaluation
financial instruments (assets and liabilities) held for trading and available for sale,
and derivatives, and may also use it for the enhancement of equity and
tangible and intangible assets (with different modes of impact on the income
For the different economic activities in question).

F Loor
Interest rate derivative contract, negotiated outside the regulated markets, with the
which is a limit to the reduction of the minimum lending rate.

FRA (F ORWARD ATE A greement R)
Contract whereby the parties agree to receive (pay) at the end the difference between the
value of the transaction amount calculated by applying an interest rate
predetermined and the value obtained on the basis of the level reached by a reference rate
chosen by the parties.

FUNDING
Supply in various ways, the funds needed to finance the activity
company or a particular financial transactions.

F) FUTURES
Standardized forward contracts, which the parties agree to exchange at a price
default and a future date, the securities or commodities. These contracts are normally
traded on organized markets where it is guaranteed to run. Unlike
options (see definition) which confer the right but not the obligation to buy futures
oblige the two contracting to sell or buy.

GOODWILL
Identifies the goodwill paid for the acquisition of a shareholding equal to
difference between the cost and the corresponding share of net assets, for the non-
attributable to the assets of the acquired company.




                                                                                                     275
HEDGE FUND
Mutual fund that has the chance - denied to the incumbents - to use
sophisticated instruments or investment strategies such as short selling (selling
discovered), derivatives (options or futures, including more than 100% of assets), the hedging
(Cover of the portfolio from market volatility through short selling and use
derivatives) and leverage (borrowing money to invest in order to take
loan).

IAS / IFRS
International Accounting Standards (Internatrional Accounting Standards - IAS) issued
by 'International Accounting Standards Board (IASB), a private international organization
established in April 2001, involving the accounting profession in most countries
and, as observers, the European Union, the IOSCO (International Organization of
Securities Commissions) and the Basel Committee. This institution has inherited
International Accounting Standards Committee (IASC), established in 1973 with the aim of
promote harmonization of rules for the preparation of financial statements of companies. With
transformation of the IASC into the IASB has decided, inter alia, to name the new principles
Accounting International Financial Reporting Standards (IFRS).
At the international level is an ongoing effort to harmonize IAS / IFRS with U.S.
GAAP (see definition).

IBAN (I nternational B ANK A CCOUNT N UMBER)
International Standard Banking used to identify the user. From 1 July 2008 the use
IBAN code - consisting of 27 characters - it is obligatory not only for foreign payments,
but also to those made in Italy.

I dentity ACCESS MANAGEMENT
Technical and organizational solution that lets you manage and control the entire life cycle of
allocation, management and revocation of access privileges to IT resources and hence the
business information by each user.

IMPAIRMENT
As part of the IAS (see definition) refers to the loss of an asset of
budget, detected when the carrying amount is greater than the recoverable amount that is
amount which may be obtained from the sale or use of the activity. The test
impairment should be performed on all activities, except for those designated at fair
value, for which the losses (and gains) in value are implied.

The NCAGLI
Receivables at nominal value in respect of persons in situations of objective difficulty, which
believes, however, be overcome in a reasonable period of time.

The Ndex LINKED
Life insurance policy whose performance at maturity depends on a parameter
reference, which may be a stock index, a basket of securities or some other indicator.

I NDEX T ANKAN
Indicator of the Japanese economy built on the basis of the results of an investigation
conducted by the Bank of Japan last month of each quarter. Investigated
are both the manufacturing sector than in services, according to a segmentation
of business size (large, medium, small enterprises).

 INTERNAL AUDIT
Function that is institutionally attached internal audit activity (see definition).




276
The NVESTING ESTATE
Property held for the purpose of obtaining income or benefit from the relative increase
BOOK.

INVESTMENT BANKING
The investment banking is a highly specialized segment of finance that
deals in particular to assist companies and governments in the issuance of titles and more generally
of raising funds on the capital market.

INVESTMENT GRADE
High-quality bonds that have received a rating (see definition) medium-high
(Eg, no less than BBB by Standard & Poor's).

The NVESTOR
Party, other than the originator (see definition) and the sponsor (see definition), which
holds a securitization exposure to (see definition).

IRB (I nternal R ating Ased B)
Approach of rating (see definition) internal to the Basel 2 (see definition)
divided into basic and advanced methods. The advanced method is used only by institutions
credit that meet the minimum requirements more stringent and requires that all estimates of
input for the assessment of credit risk (PD, LGD, EAD, Maturity - cf. definitions)
are carried out internally. Otherwise, according to the basic method, only the PD is
estimated by the Bank.

Joint Venture
Agreement between two or more firms for the performance of a given economic activity
through, usually, the establishment of a joint stock company.

JUNIOR
In a securitization transaction (see definition), is the most subordinate tranches of securities
issued, which is the first to bear losses that may occur during recovery
the underlying assets.

L easing
Contract under which one party (lessor) grants to another (lessee) for a
determined the use of property purchased or built by the landlord on choice and
indication of the lessee, with the option to purchase the latter's ownership of the property to
predetermined conditions at the end of the lease.

LGD (OSS The G iven D EFAULT)
Estimated loss rate in the event of default (see definition) of the debtor.

L ower T IER II
Subordinated liabilities that contribute to the formation of the Tier II or Tier
(See definition) provided that the contracts that govern the issue include
specifically that:
    a) in the event of liquidation of the issuer's debt is repayable only after
         have been fulfilled, all other non-subordinated creditors;
    b) the duration of the relationship is equal to or greater than 5 years and, if the deadline is
         indeterminate, is expected to repay a notice of at least 5 years;
    c) the early repayment of liabilities takes place only at the initiative of the issuer and
         provides for the clearance of the Bank of Italy.

The amount of subordinated loans admitted to the supplementary capital is reduced by an
every fifth year during the five years preceding the date of the report, in the absence
an amortization schedule that produces similar effects.
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MARK TO MARKET
Evaluation of a portfolio of securities and other financial instruments based on the prices
expressed by the market.

MARK DOWN
Difference between the average rate paid technical forms of direct funding and considered
Euribor.

MARK UP
Difference between the average lending rate of technical forms used el'Euribor considered.

MATURITY
Residual life exposure, calculated according to Prudential.

MERCHANT BANKING
Under this meaning is covered by the underwriting of securities - equity or
debt - corporate customers for subsequent placement on the market, taking
shareholdings in more permanent but always with the goal of
subsequent sale, the business consulting firm for mergers and acquisitions or
restructuring.

MEZZANINE
In a securitization transaction (see definition), is the tranche can
intermediate between the subordination of junior tranches (see definition), and that of
senior tranches (see definition).

MONOLINE
Insurance companies whose only line of business is the financial assurance.
Activities is included in their insurance obligations (such as ABS and MBS)
which has as its underlying mortgage loans and private debts. In exchange for a
Committee, the insurance guarantees the repayment obligation by taking
directly to the risk of insolvency of the debtor.

MUTUI SUBPRIME
The concept is not applicable to subprime mortgage operation in itself, but rather to
borrower (the borrower). Technically subprime means a borrower who does not
has a "credit history" fully successful, as characterized by events
adverse credit such as, for example, the presence of non-rate returns from previous
loans, unpaid checks and / or protest, and so on. These past events are symptomatic of
increased intrinsic risk of the counterparty, which corresponds to greater
remuneration required by the intermediary to grant the loan.
Operations with subprime customers has grown in the U.S. financial market, where
against the conclusion of the loans, usually was accompanied by a business
securitization and issuance of securities.
Are called Alt-A mortgage loans other than those granted on the basis of documentation
incomplete or inadequate.

NON PERFORMING
Term generally refers to loans with an irregular pattern.

NUTS (N OMENCLATURA ERRITORIALI T U NITS OF STATISTICS FOR THE S 'I TALY)
Nomenclature used for statistical purposes in Europe (Eurostat), which provides the following
subdivision:
Northern Italy: Piemonte, Valle d'Aosta, Liguria, Lombardy, Trentino Alto Adige
                      Veneto, Friuli Venezia Giulia, Emilia Romagna;
Central Italy:        Tuscany, Umbria, Marche, Lazio;


278
Southern Italy:       Abruzzo, Molise,       Campania        Puglia,   Basilicata   Calabria,    Sicily,
                      Sardinia.

O BBLIGAZIONI STRUCTURED
Bonds whose interest and / or redemption value of nature depend on a parameter
real (related to commodity prices) or on the performance of indices. In such cases, the option
Implicit is separated from the host contract for accounting purposes.
In the case of inflation rates or parameters (eg Credit Certificates
Treasury) the option implicit is not separated from the host contract for accounting purposes.

Option
Represents the right but not the commitment, acquired with the payment of a premium,
buy (call option) or sell (put option) a financial instrument at a price
determined (strike price) within (American option) or at a future date (European
option) determined.

Mutual funds (OF THE B ODY C NVESTING OLLETTIVO OF ISPARMIO R)
This item includes UCITS (see definition) and other investment trusts (mutual funds
real estate investment, mutual funds closed).

UCITS (OF THE B ODY C NVESTING OLLETTIVO V ALUES IN OBILIARI M)
The item includes the open-ended investment funds, Italian and foreign, and
investment company with variable capital (SICAV).

ORIGINATOR
Person who gives up his portfolio of assets in cash deferred to the SPV (see
definition) to be securitized.

OTC (VER O T HE C ounter)
Transactions carried out directly between the parties, without using a regulated market.

P AST TWO
Due exposure and / or past due by more than 180 days, according to
definition provided in the existing supervisory instructions.

W orld SURVEILLANCE
It is the sum of core capital - for the calculation without
limitation - and supplementary capital, which is allowed within the maximum
tier 1 capital.
Are deducted - to 50% from Tier and 50% of the assets
Extra - investments, innovative capital instruments, hybrid instruments
capitalization and other subordinated assets held in banks and financial companies
(In particular, are deducted investments in banks and financial institutions in excess of
10% non-consolidated, as well as all investments in banks and financial companies
less than 10% and subordinated assets from banks, given for the share
exceed 10% of core capital and supplementary).
They are also alleged to investments in insurance and liabilities
subordinated loans from those companies as well as the securitization positions.

PAYOUT RATIO
Identify the percentage of net income distributed by the company to its shareholders.

P LAIN vanilla swap
Interest rate swap (see definition), in which one party receives a variable payment
tied to LIBOR (usually the six-month LIBOR rate) and corresponds to the other party a
fixed interest rate, calculated by adding a spread to the performance of a type
defined bonds.

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PD (P ROBABILITY OF D EFAULT)
The probability that the borrower reaches the default status (see definition) in
one-year.

P OLIZZE Capitalisation
See in this respect the "Certificates (insurance) of capitalization."


POS (P oint ALE SFO)
Automated equipment through which you can make, card debt,
credit or debit card, the payment for goods or services from the supplier.

PREFERENCE SHARES
Innovative capital instruments issued by foreign subsidiaries included in the banking group,
that associated with other forms of remuneration at market rates anchored features
subordination particularly prominent, such as failure to recover in the years
Subsequent interest not paid by the Bank and parent participation in
losses of the Bank in case they lead to a significant reduction in
capital requirements. The conditions under which the preference shares may be
counted as core capital of banks and banking groups shall be established by
Regulatory instructions of the Bank of Italy.

P remain under
Financial instruments whose scheme provides that the holders of the negotiating documents
representative of the loan are met then the other creditors in case of
liquidation of the issuer.

PRICE SENSITIVE
Term that is generally referring to information or data is not public domain,
likely, if made public, to influence significantly the price of a title.

PRIVATE EQUITY
Activities targeted the acquisition of ownership interests and their subsequent transfer
to specific counterparts, without public.

PROJECT FINANCE
Financing projects based on a forecast of cash flows generated by
themselves. Unlike ordinary credit risk analysis, the technique of
project finance provides, in addition to the analysis of expected cash flows, the examination of specific elements
which the technical characteristics of the project, the suitability of the sponsor to carry it out, the markets
placement of the product.

R ating
Evaluation of the quality of a company or its debt securities issues on the basis
financial soundness of the company and its prospects.

R ISCHIO SECURITISATION
Risk that the economic substance of the securitization is not fully
reflected in pricing decisions and risk management.

R ISCHIO BUSINESS
Risk of adverse changes and unexpected earnings / margins than expected data, linked to
volatility in volumes due to competitive pressures and market situations.




280
R ISCHIO CONCENTRATION
Risk resulting from exposures in the banking counterparties, groups of
counterparties in the same industry or engaged in the same activities or
belonging to the same geographical area. The concentration risk can be distinguished
into two subtypes:
        single name concentration risk;
        sector concentration risk.

R ISCHIO CREDIT
Risk of loss resulting from a counterpart to the
which there is credit exposure.

R ISCHIO OF COMPLIANCE
Risk of judicial or administrative sanctions, financial loss or significant
reputational damage as a result of violations of mandatory rules (legal or
regulations) or of self-regulation (codes of conduct, statutes, codes of
Conduct).

R ISCHIO LIQUIDITY
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 capital losses.

R ISCHIO MARKET
Risk of changes in market value of positions in the trading book
purposes of supervision for unexpected changes in market conditions and merits credit.
It includes the risks arising from unexpected changes in exchange rates and
commodity prices that refer to locations throughout the budget.

R ISCHIO OF REPUTATION
Risk of loss resulting from a negative perception of the image of the Bank of
number of customers, counterparties, shareholders of the Bank, investors, regulators or other
stakeholders.

INTEREST RATE RISK
Current or prospective risk of a change in net interest income and value
loss of the company, as a result of unexpected changes in interest rates that impact the
banking porfolio.

R ISCHIO OPERATING
Risk of loss resulting from inadequate or failed procedures,
human resources and systems or from external events. Fall into this category the
losses arising from fraud, human error, business disruption, unavailability of
systems, breaches of contract, natural disasters. This includes legal risk.

R ISCHIO SHARED
Risk of loss arising from the investment portfolio.

R ISCHIO RESIDUE
Risk of incurring losses resulting from unforeseen ineffectiveness of recognized technical
to decrease the risk of credit used by companies (eg mortgage).

R ISCHIO STRATEGY
Current or prospective risk of a decline in earnings or capital arising from:
        changes in the operating environment;

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        inadequate implementation of decisions;
        lack of responsiveness to changes in the competitive environment.

SENIOR
In a securitization transaction (see definition) is the tranche with the highest degree of
privilege of priority in terms of remuneration and reimbursement.

SENSITIVITY ANALYSIS
Analysis system that aims to identify the sensitivity of certain activities or
liabilities related to changes in interest rates or other benchmarks.

SEPA (S ingle E uropean P AYMENTS TO REA)
The Single Euro Payments Area came into force on 1 January 2008 in which
you can gradually make and receive payments in EUR with underlying conditions,
uniform rights and obligations. It joined the 31 European countries (in addition to 27 countries
Switzerland, European Union, also Norway, Iceland and Liechtenstein). The introduction of
New Banking Code IBAN (see definition) is one of the tools used to
standardize banking transactions.

SERVICER
In securitization transactions (see definition) is the person who - based on a
special servicing contract - continues to manage the assets subject to claims or
securitization after they have been transferred to the company responsible for issuing vehicle
SECURITIES.

IDE S POCKET
It is a measure to protect all participants in a hedge fund (see definition)
which is activated only in "exceptional cases" where the sudden drop of the degree of liquidity
of assets held in the portfolios of funds, combined with high claims for reimbursement of
shares, can have negative consequences for the management of the fund. To avoid undermining
the interest of participants in the hedge fund, should it become necessary to mobilize
activities that had become illiquid in the absence of a market that ensures the formation of prices
reliable, the creation of side pocket allows you to transfer illiquid assets to a fund
closed-end mutual investment specially formed (so-called closed-end fund side
pocket).
The operation is carried out through a partial division of the hedge fund as a result of
as liquid assets continue to be held in the fund, while those
illiquid assets are transferred to the closed side pocket. The hedge fund, but scaled
liquid, continues to conduct its business in accordance with the investment policy laid down in
management regulations, while the side pocket of closed-end fund (which may not issue new
shares) is managed with a view to disposal of illiquid assets held by proceeding to
redemptions of shares gradually that the assets are liquidated.

S TENDERER
Claims against persons in a state of insolvency (even if not judicially determined) or
in basically similar situations.

SPONSOR
Party, other than the originator (see definition), which establishes and manages a
conduit (see definition) in a securitization transaction (see definition).

SPREAD
This term usually indicates:
        the difference between two interest rates;
        the difference between the bid and ask prices in trading in securities;
        the price an issuer of securities recognized in addition to a rate
      reference.


282
SPE / SPV
The Special Purpose Entity (SPE) or Special Purpose Vehicle (SPV) - also known as "conduits" -
subject (companies, trusts or other entities) that are specially made for the
achieve a specific objective, clearly defined and delimited, or for conducting
a specific operation.
The SPE / SPV have a legal structure independent of the other parties involved
transaction, and generally do not have their operational and management structures.

STAKEHOLDER
Individuals or groups, of particular interests in respect of a company or because
depend on this for the realization of their goals or because they suffer so
significant positive or negative effects on its business.

S tock OPTION
Term used to describe the options available to managers of a company, enabling
to buy shares of the company based on a predetermined exercise price.

STRESS TEST
Simulation procedure used to evaluate the impact of market scenarios "extreme" but
plausible exposure to the risk of the Bank.

SURROGA
Procedure by which the borrower (ie those who have entered into a loan) contracts with
another bank a new loan to pay off the original loan transferred to the new
Bank lending to the same safeguards (including the mortgage), who already attended the
Bank "original."

S WAP (interest rate swaps and currency swaps)
Operation consists in the exchange of financial flows between operators according to certain
contractual arrangements. In the case of a swap interest rate (interest rate swaps), the
parties exchange interest payment streams calculated on a notional principal
reference based on different criteria (eg. a party is a flow
fixed rate, the other variable rate). In the case of a swap currencies (currency swap), the
exchange specific amounts of two different currencies, returning in time
default in a manner which address both the capital and interest.

T ACE RISK FREE - FREE RATE R ISK
Interest rate risk-free activity. It is used in practice to indicate the rate of
short-term government bonds, which also can not be considered risk free.

T IER I (core capital)
It consists of the paid-up capital, reserves (including share premium), by
innovative capital instruments (only in conditions which ensure full
the stability of the Bank) 46, the utility of the term, the prudential filters positive heritage
base. These elements are to be deducted from the shares, goodwill, fixed assets
assets, losses incurred in previous years and in the current year, adjustments
value calculated on the trading book for supervisory purposes, the negative prudential filters
asset base.



46   The innovative capital instruments may be taken in core capital subject to a maximum of 20
     percent of the amount of core capital, including the instruments themselves. Within that limit the
     instruments which provide for automatic review clauses in the rate of return (so-called step-up) related
     the right to reimbursement or other terms designed to encourage repayment by the issuer must be
     contained in the limit of 15 per cent of the assets including the basic tools
     themselves. Any surplus may be counted as Tier II capital, as tools
     hybrid capital.
                                                                                                                283
T IER II (TIER)
It consists of the revaluation reserves, non-innovative capital instruments
counted as core capital, hybrid capital instruments (liabilities
indeterminate duration and other instruments redeemable at the issuer's prior
consent of the Bank of Italy), the subordinated debt (an amount reduced by 1 / 5
during the five years preceding the date of expiry), the net gains on
investments, the positive supplementary capital prudential filters, the possible
excess of total net write-downs than expected loss from
positive exchange differences. From these elements are to be deducted the following components
negative: Net unrealized losses on equity investments, prudential filters negative heritage
additional other negative elements.

T IER III (Tier 3 subordinated loans)
Subordinated loans, which meet the following conditions:
        have been fully paid;
        not included in the calculation of supplementary capital (see definition);
        have an original maturity of less than two years, if the deadline is
        indeterminate, a notice is provided for the reimbursement of at least 2 years;
        meet the requirements for similar liabilities in computable
        Tier except, of course, the truth regarding the duration
        the loan;
        are subject to the "tying clause" (so-called "lock-in clause"), according to the
        which the principal and interest may not be repaid if such repayment
        the total amount of funds the Bank's capital to a level below the
        100% of the total capital requirements.

T rading BOOK
Usually identifies the part of a portfolio of securities, or other financial instruments in
generally intended for trading activity.

TROR (T OTAL R ATE S TURN OFR WAP)
It is a contract under which the "protection buyer" (also called "total return payer") is committed
to give all the cash flows generated by the reference obligation to the "protection seller" (or
also "total return receiver"), who moved to return to the "protection buyer" flows
cash related to the performance of the "reference rate". The dates of payment flows
cash coupon (or the date of expiry of the contract) the total return payer "is
the total return receiver "any appreciation of the reference obligation in the case of
depreciation of the reference obligation "will be the" total return receiver "to pay the
its equivalent to the total return payer ". In essence, the TROR configures a product
structured finance, are constructed with a credit derivative and a
interest rate derivatives (interest rate swaps "- cf. Definition).

T rading ON LINE
System for the sale of financial assets held, as implemented by computer.

TRIGGER EVENT
Contractual default event which triggered the occurrence of certain powers in
Head to the contractors.

UNIT-LINKED
Life insurance policies with benefits linked to the value of investment funds.

P to T U IER II
Hybrid capital instruments that contribute to the formation of capital
supplementary or Tier II (see definition) where the contract provides that:



284
   a)  in case of losses that result in a reduction of paid-up capital and
       reserves below the minimum level of capital involved in authorizing
       banking activity, the amounts arising from these liabilities and interests
       aging can be used to cover the losses, in order to allow
       issuing entity to continue trading;
   (B) in case of negative developments for the management, the right to be interrupted
       remuneration to the extent necessary to prevent or minimize the occurrence
       Leak;
   c) in the event of liquidation of the issuer, the debt is repaid only after
       have been satisfied with all other subordinated creditors.

The perpetual hybrid capital instruments must not be durable or
more than 10 years. The contract must be made explicit that the clause makes the
repayment of the loan to the clearance of the Bank of Italy.

U.S. GAAP (G ENERALLY A CCEPTED A CCOUNTING P RINCIPLES)
Accounting standards issued by FASB (Financial Accounting Statement Board), generally
accepted in the United States of America.

VAR (V ALUE AT R ISK)
It measures the maximum potential loss that a position in a financial instrument or
a portfolio can be defined with a probability (confidence level) in a
time horizon (period or holding period).

WARRANT
Negotiable instrument that gives the holder the right to purchase from or
sale to the fixed-income securities or shares according to specific rules.

ZERO-COUPON
Zero coupon bonds, whose return is determined by the difference between the price of
emissions (or purchase) and the redemption value.




                                                                                          285
             Reports
      Auditors




286
287
288
     Reports
Board of Auditors




                    289
Statutory Auditors 'Report To the Shareholders'
      (According to Art. 2429, Section 2, Civil Code)


Dear Shareholders,
                  We considered the draft financial statements of the Company "BANK
Popolare di Bergamo SpA "31 December 2009, prepared by the Directors and
informed the Board of Auditors together with the Report of the
On operations.

Among the significant events to report during the year, include:
     The Memorandum of Understanding for the anticipation of "extraordinary redundancy fund" to
     support workers to achieve an earlier release of the fund during the period
     between the suspension of the employment and payment by
     INPS;
     The Memorandum of Understanding "Suspension of mortgage rates" in favor of customers
     territory to defer the payment of installments of loans for the purchase
     of a main event of a reduction in income due to loss of
     measures for job mobility or redundancy;
     The agreement with Caritas and the Foundation of Bergamo MIA -
     Congregation Mercy Maggiore - in favor of individuals in temporary state
     difficulties for the loss of jobs;
     The accession by the UBI Banca Group, at the initiative of the Banking Association
     Italian "Agreement for the suspension of debts of small and medium enterprises to
     the credit system "aims to support SMEs that are in temporary difficulties
     leases;
     The loan agreement, signed by the UBI, the "Cassa"
     pursuant to the agreement signed May 28, 2009 by ABI and the Cash Deposits
     and loans to provide new funding opportunities for small and medium-sized enterprises
     using the funds arising from the case of postal savings deposits and
     Loans;
     Participation in the project "Confiducia" Law and the operation of the Convention Tending to 662
     financing of small and medium businesses with a guarantee of Medio Credito;
     The development of the renegotiation and restructuring of loans provided for in Articles. 67 and
     182 bis of Legislative N.169/12 bye-law in September 2007;
     The activation of specific actions to contain the credit risk on
     counterparts belonging to the most critical segment of small business and small operators
     economic, with the use of the instrument CMR (Customer Relationship Management);
     The continuation of actions to implement the Business Plan Integration
     2007 - 2010 with the completion of the migration of the information system.;
     The approval of the Draft Spatial optimization of the network banks aimed at
     optimize the structure of the distribution network through the specialization of
     same geographical areas with a focus on the area's historic roots;
     The update of the document describing the Organizational Model D. Legislative Decree No.
     231/2001, with the adoption of new regulations and the start of Module 2
     initiative planning;
     The completion of the system integration of models of risk assessment and
     starting the implementation of new measurement tools, to define models
     assessment and risk monitoring consistent with requirements of the legislation
     Supervision (Basel 2) and self assessment of the quality system of risk management
     operating the Standardised Approach;
     The approval by the Extraordinary 22 June 2009 of some
     statutory changes adopted for the implementation of the provisions contained in
     Measure of the Bank of Italy on 4 March 2008 concerning the organization and
     corporate governance of banks;
      The Bank's involvement on the part of UBI BANCA issuance of bonds

290
      guaranteed bank (Covered Bond) in a program of up to 10
      billion EUR. The Bank has acted as an originator of a portfolio of loans
      residential places to guarantee the bonds issued for € 1.35 billion in completed
      December 2009;
      The early termination of the securitization "Albenza 2" whose activities
      servicing by BPB SpA ended December 31, 2008;
      The establishment by the parent company of the Corporate Governance Project
      referring to all the banks in the Group, in accordance with the Financial Regulator in
      organization and governance of banks;
      The adjustment to the rules of the Legislative No bye-law of April 9, 2008 81 on the
      safe work environment.

The supervision given to the Board of Auditors, pursuant to law, was carried out in
year in accordance with the principles of conduct of the Board
recommended by the National Board of Certified Public Accountants, having
into account the recommendations of the Consob and the Bank of Italy.

The Board shall inform the Shareholders that it played during the year,
following activities:
       has monitored compliance with the Act, the bylaws and compliance with principles
       to good administration;
       made no 11 meetings, summarizing that meeting in the control activities carried out by
       members of the Board, individually, and participated in a meeting
       at the company UBI Sistemi e Servizi ScpA;
       participated in No 2 Meetings of Shareholders, No 14 meetings of the Board of
       Administration and No 15 Executive Committee meetings were held in accordance with the
       statutory requirements, laws and regulations governing the operation and
       for which it may reasonably ensure that decisions taken are in accordance with the
       Law and the Articles of Association and are not imprudent, risky,
       conflict of interest or which undermines the integrity of corporate assets;
       acquired knowledge and supervised, for the competence, the adequacy of
       the organizational structure and compliance with the law and the principles of
       proper administration. This is achieved through direct observation, information gathering from
       administrative contact, and through meetings with representatives of companies for the functions
       Auditing and Compliance and the Independent Auditors;
       assessed and verified the adequacy of internal control system and
       administration and accounting, as well as its reliability in correctly representing
       management events, through information received from the internal reference for the Audit and
       for Compliance functions centralized at the parent company, the Company
       Review, by those directly responsible of their duties, and by analysis of
       business records;
       has monitored compliance with the consistency of conduct adopted by the Company
       with the guidelines established by the Parent;
       has established compliance with the reporting requirements of the Parent Company, pursuant to
       art. 114, paragraph 2, of Legislative Legislative Decree No. 58/1998, the information asked to the Company;
       requested and obtained from the Director General and Directors of the Company, other than
       meetings, information on the most important operations carried out by the Company and
       acknowledges that they were not considered imprudent or reckless,
       no conflict of interest, contrary to the resolutions approved or which
       compromise the integrity of corporate assets;
       issued, and where required under law or statute, its opinion on
       decisions of particular importance for the Company which, among other things, the approval of the
       Draft amendment to the bylaws and the "Debt Issuance Programme
       Guaranteed bank UBI;
       has consistently followed the work of internal audit, provided by
       Parent UBI Banca ScpA, expressing their views on the
       Annual report on its activities and the program to be implemented, and verified the
       Implementation of the audit plan and results achieved;

                                                                                                   291
      verified the performance of customers' complaints, expressing periodically
      comments on them;


      has occurred, in general, the compliance by the Bank's obligations
      Send correspondence and communications with supervisors;
      has verified the existence of processes and structures to the monitoring and oversight of
      risks related to banking;
      had systematic contacts with the Compliance Department of the Bank and the
      Parent.

The Board also gives acknowledge that the Company:
      has complied with its obligations under the Law 197/1991 and the provisions of
      Bank of Italy and the FIU on money laundering;
      has fulfilled obligations relating to the rules governing the "privacy"
      regarding the processing of personal data and the drafting of the document
      Programmatic Security, in accordance with the provisions of Legislative Legislative Decree No. 196/2003 and
      other applicable standards;
      has fulfilled the requirements established by art. 2497-bis of the Code;
      did not have atypical or unusual transactions, including with respect to related parties;
      adopted the procedure and intra-group transactions with related parties
      art. 2391-bis of the Civil Code;
      carried out during 2009, intra-group transactions of a financial nature,
      commercial and service provision, in relation to which the Trustees
      provided information in the annual report and in the notes. These
      operations were carried out with the objectives of rationalization and cost
      on the basis of specific contracts for service with UBI and UBI Sistemi e Servizi ScpA
      Bank ScpA;
      has complied with capital requirements imposed by the supervisory regulations;
      carried out an evaluation process of the risks and uncertainties inherent in the activity
      turning point. The results of this investigation suggest with a reasonable expectation that
      the Bank should be able to cope, thus confirming the assumptions of
      its continuity. In this context, the Bank has adopted appropriate tools
      allow the adjustment of its strategies with respect to changes in the context of
      reference. The report of the Board of Directors includes an adequate
      illustration of the main risks to the Bank and the Group are exposed.

The Company is subject to the direction and coordination of the parent company "UBI
ScpA Bank "and, in accordance with the provisions of the Civil Code, have provided all
information relating to relations with the parent company.

The periodic auditing, verification of the Interim Report and Audit
Report of the individual has been given to the independent auditors KPMG SpA ", company
which has been entrusted, in accordance with the provisions of the Act, the following positions
which charges for the year 2009, excluding living expenses and VAT, are:
 - Auditing                                   €    371,000.00;
 - Certification services                     €     17000.00;
 Other                                        €           0.00;
 Total                                        €    388,000.00;

The Board of Auditors has regularly entertained with the independent auditors, moments of
exchange of information, from which there were no facts or circumstances or irregularities
should be brought to the attention of the College. Therefore, the Auditing Company
occurred during the year 2009, the company's accounts are properly kept and
correct recognition of events in the accounting records and in Annual Report
ended December 31, 2009, and correspondence with the results of the same
accounting and, accordingly, issued its report on March 19
2010, from which they emerge reliefs or exemptions. The Board has, however, supervised


292
the general layout on the financial statements and its compliance with the law and respect
the specific legislation for the preparation of bank balance sheets.
The financial statements have been prepared in accordance with the D. Legislative Decree No. 38/2005, according to
the
accounting principles issued by the IASB (IFRS) and related interpretations dell'IFRC, and is
been prepared on the basis of the instructions for the preparation of financial statements issued by the Bank
of Italy, also supplemented by the provisions of the joint paper by the Bank of Italy, Consob
and ISVAP 4th of March 3, 2010. The financial statements are consistent with those defined by
Bank of Italy Circular No 262/2005 as amended from 1 of 18 updated
November 2009 which included a full review.
The accounting policies applied in respect to the classification, evaluation and
cancellation are substantially the same adopted for the financial statements
2008.
The notes describes the policies adopted and provides all the information
necessary as specified by law, including information on the risks of credit,
market, liquidity and operational. The report prepared by the Directors shows
operating performance.

This surveillance, as described above, resulted, with reference to the
with art. TUB 52 the required report to the Bank of Italy for the delayed
delivery of the summary document of 2008 relating to the loans and loan customers
(Private. The irregularity is correctly shown in the annual report and is now
resolved.
The Board of Auditors gives Finally, note that it had received during the year, complaints of
wrongful acts pursuant to art. 2408 of the Civil Code.
In those circumstances, the Board invites you to approve the budget for 2009 so
as presentatoVi, and expresses an opinion in favor of the proposed allocation
of profit made by the Board of Directors.




Bergamo, March 19, 2010




                                                  BOARD OF STATUTORY AUDITORS
                                                 Ferruccio Rota Sperti    Chairman
                                                 Antonio Amador           Statutory Auditor
                                                 Luigi Piantoni           Statutory Auditor




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