UBI Banca is the third largest Italian commercial banking group in terms of market cap with a market share above 7%, 1,881 branches in Italy mainly concentrated in the wealthiest areas of the country, and over 21,800 staff. UBI Banca is a banking Group listed on the Milan Stock Exchange and included in the FTSE/MIB index.
The UBI Banca Group operates through the SDIR-NIS service managed by Blt Market Services, company of the London Stock Exchange Group, for the transmission of the Regulated Information. For the storage of the Regulated Information, the UBI Banca Group operates through the "1Info" authorised storage device, managed by Computershare S.p.A.
It was created on the 1st of April 2007 from the merger between BPU - Banche Popolari Unite and Banca Lombarda e Piemontese. It is organised on the basis of a poly-functional, federal and integrated model. It is composed of a listed co-operative Parent Bank (UBI Banca) performing centralised functions of governance, control, coordination and support; nine Network Banks (Banca Popolare di Bergamo, Banco di Brescia, Banca Popolare Commercio e Industria, Banca Regionale Europea, Banca Popolare di Ancona, Banco di San Giorgio, Banca Carime, Banca di Valle Camonica, UBI Banca Private Investment), in charge of the relationship with the historical reference territories; an online Bank (IW Bank); and specialist companies operating in different sectors (corporate banking, consumer credit, asset management, factoring (UBI Factor), leasing (UBI Leasing), life and non-life bancassurance (UBI Assicurazioni and UBI Assicurazioni Vita S.p.A.)).
Fig. 1 - History of the Group UBI Banca (source: UBI Banca official website)
The Group has an international network made up of foreign banks and branches, representative offices and product companies. For instance, UBI Banca International offers services to corporate customers and High Net Worth individuals in Luxembourg, China and Singapore (such as fiduciary operations and corporate financing, financial and estate planning through engineering solutions, corporate and syndicated loans, international bonds and guarantees issues). As it clearly emerges from fig.2 (data as at 31st December 2011), the Group has a large retail component. However, it also has a traditional presence in the sector of small and medium enterprises and a private banking activity that places the Group among the top players in the Italian market.
Fig.2 - UBI Group retail component (source: UBI Banca official website)
The Group’s main figures as at 31st December 2011 show that it is close to 4 million customers served through a divionalised and segmented commercial model, it has 19,405 employees at the end of the period, 102.8 billion euros of direct funding, 99.7 billion euros of loans to customers, 72.1 billion euros of indirect funding, 129.8 billion euros of total assets, 349.4 million euros of net profit for the year before impairments on goodwill and intangible assets, and 1,841.5 million euros of net loss for the year after impairments on goodwill and intangible assets.
UBI Banca has adopted a new governance model, recently introduced into the Italian legislation and known as the “dualistic” system. The dualistic governance system consists of a Supervisory Board and a Management Board; shareholders appoint the Supervisory Board, which then appoints the Management Board.
The Supervisory Board performs the duties of strategic policy-making and control of the management of the company. Currently, its chairman is Corrado Faissola.
The Management Board has exclusive responsibility for the management of the company and for performing all those operations necessary for implementing the business purpose of the company in compliance with the general strategies and plans drawn up by the Supervisory Board. Currently, its chairman is Emilio Zanetti.
1The acronym stands for ‘Società Consortile per Azioni’, Italian Consortium Joint-Stock Company.