3 Table of Contents Our “Mission” .................................................................................................................................................... 5 Corporate Officers and General Management ..................................................................................... 6 UBI Banca Group’s Sales Network ............................................................................................................ 7 Ratings ................................................................................................................................................................. 8 Primary data and indicators ..................................................................................................................... 10 Directors’ Report ........................................................................................................................................... 11 The reference scenario ........................................................................................................................... 12 Banco di Brescia’s Activities in 2010 .............................................................................................. 23 The Internal Control System ............................................................................................................... 31 Reclassified Financial Statements .................................................................................................... 33 Research and Development Activities ............................................................................................ 44 Contractual Relationships with Group Companies.................................................................... 45 Other Information .................................................................................................................................... 46 Key Events after the Reporting Period ........................................................................................... 64 Business Outlook ...................................................................................................................................... 64 Proposals to the Shareholders ............................................................................................................ 65 Accounting Statements .............................................................................................................................. 66 Balance Sheet ............................................................................................................................................. 67 Income Statement .................................................................................................................................... 68 Statement of comprehensive income .............................................................................................. 69 Statement of Changes in Shareholders’ Equity .......................................................................... 70 Cash Flow Statement .............................................................................................................................. 72 Notes ................................................................................................................................................................... 73 Part A – Accounting Policies..................................................................................................................... 74 A.1 – General Information..................................................................................................................... 74 Section 1 Statement of Compliance with the international accounting standards . 74 Section 2 General preparation principles ............................................................................. 74 Section 3 Events occurring after the Balance Sheet date ................................................ 75 Section 4 Other aspects .............................................................................................................. 75 List of the main IAS/IFRS standards endorsed by the European Commission................. 80 A.2 – Part Relating to the Main Financial Statement Items ................................................. 83 A.3 – Disclosure on the fair value .................................................................................................... 103 Part B – Information on the Balance Sheet ..................................................................................... 105 Part C – Information on the Income Statement ............................................................................ 151 Part D – Comprehensive income ........................................................................................................... 168 Part E – Information on Risks and the related Hedging Policies ........................................... 169 Section 1 Credit risk .................................................................................................................. 169 Section 2 Market risk ................................................................................................................ 193 Section 3 Liquidity risk ............................................................................................................. 224 Section 4 Operational risk ....................................................................................................... 235 Part F – Information on Shareholders’ Equity ................................................................................ 242 Part G – Business Combination Transactions Regarding Businesses or Business Units ............................................................................................................................................................................. 247 Part H –Related Party Transactions .................................................................................................... 248 Part I – Share-based Payment Agreements ...................................................................................... 252 Part L – Segment Reporting .................................................................................................................... 253 Attachments to the Financial Statements ....................................................................................... 254 Independent Auditors’ Report ............................................................................................................... 280 Report of the Board of Statutory Auditors……………………………………………………………….282 4 Our “Mission” We are an alliance of Banks, with a rich history, united under a federal model, integrated and multi-functional, able to capitalise on the strength of the sales Network and convey our synergies in the market. We are integral participants in the economic and social life of the areas in which we operate, with a distinct ability to interpret, serve and support the development of local economies. We pursue the objective of promoting progress and creating value for all of our stakeholders. We support the development of a healthy economic and entrepreneurial infrastructure, growing together with our customers through excellent products and services. (from “The Charter of Values” of UBI Banca Group, approved on 29th January 2008) 5 Corporate Officers and General Management BOARD OF DIRECTORS Chairman Gino Trombi (*) Vice Chairman Pierfrancesco Rampinelli Rota (*) Costantino Vitali (*) Director and Secretary Franco Bossoni (*) Directors Francesco Bettoni, Giuseppe Camadini, Gaudenzio Cattaneo (*), Giorgio Franceschi, Stefano Gianotti, Andrea Gibellini, Pierangelo Gramignola, Victor Massiah, Giambattista Montini, Francesco Passerini Glazel, Flavio Pizzini (*), Franco Polotti (*), Gianfederico Soncini. (*) members of the Executive Committee BOARD OF STATUTORY AUDITORS Chairman Paolo Golia Standing Auditors Eugenio Ballerio, Alessandro Masetti Zannini Alternate Auditors Primo Cancarini, Guido Piccinelli GENERAL MANAGEMENT General Manager Elvio Sonnino Vice General Managers Paola Montresor, Stefano Vittorio Kuhn INDEPENDENT AUDITORS Reconta Ernst & Young S.p.A. 6 UBI Banca Group’s Sales Network 7 Ratings The tables below summarise the Group’s ratings from the international agencies of Standard & Poor’s, Fitch Ratings, Moody’s. On 23rd April 2010 Standard & Poor’s, as part of a general analysis on Italian banks, confirmed the short and long term counterpart rating of UBI Banca, reviewing the Outlook from Stable to Negative due to a perceived decreased ability of the Group to absorb a cost of credit higher than expected in case the fragile recovery in progress found it hard to become consolidated. On 17th December 2010 FitchRatings reduced the long-term counterparty rating of UBI Banca from A to A+, with a Stable Outlook, thus confirming all the other ratings. This action was taken in consideration of the slowdown in economic activities experienced in Italy, and the persisting low market rates which, in the company’s opinion, make a rapid recovery of operating profits very unlikely for UBI Banca. In the meanwhile Fitch underlined: the importance of the Group’s distribution network, located in the richest regions in the country; the solid management and perception of the credit risk, which resulted in a lower credit deterioration than its competitors; the suitable capitalisation as regards the risk conservative approach; the suitable liquidity with well

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