UBI Banca Group Business Analysis

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The Group with market capitalization of €4.5 billion, mainly domestic, has a multiregional coverage with 1,700 branches and a significant presence in the most dynamic regions of Central and Southern Italy. Furthermore, the Group has an International Network mainly driven by customer needs. UBI Banca Group employees are over 18,000 and its shares are listed on the Milan Borsa and are included in the FTSE index.
The UBI Banca Group was formed on 1 April 2007 from the merger of the BPU Banca Group and the Banca Lombarda Group. The Group operates mainly on the retail market and is present in most regions of Italy. The Group has adopted a two tier system of management and oversight with two boards, a supervisory board and a management board.

 Banco …show more content…

Whereas, Germany’s GDP grew modestly by 0.1%, Austria by 0.7%, Switzerland by 1.4%, and the UK by 0.2%. The forecast for 2013 shows another reduction of 1.3% in its GDP. This factor poses the most serious threat to the banking industry in the short and medium term for several reasons. Italian households that maintained a minimum savings rate of 9% of disposable income until 2007, have dropped it to 4.4% in 2012, compared to Germany’s 10.1%, France’s 16.2%, and Sweden’s 10.5%. As unemployment and sub employment increases, the rate of household savings will decrease further, causing an increasing rate of reduction in the availability of bank funds as deposits. The rate of non-performing debt that banks hold continues to increase. To maintain the present demands of Italy’s social services and with the reduced tax revenue, the costs of holding sovereign debt will increase further and the risks associated with loans extended to private industry will continue to rise. The European Union has manifested constantly its concern about the lack of competitiveness of the Italian industry. The present sensitiveness of the Italian economy and the impact that these circumstances may impose upon its financial …show more content…

Some of its banks date back to the 15th century, and Italy’s strong participation in the development of global trade. From Venice’s Marco Polo venture to Asia, to Renaissance’s industry and trade developments started in Florence, have propelled a very dynamic financial sector in the nation. More recently, banks were instrumental in the development of a progressive industry, based on technology and of agricultural products. The sector has changed its structure since, and the fewer banks that operate in Italy have concentrated their operations in focused products and targeted specific regions in Italy. Globalization and the financial crises that most economies experienced have affected Italy in a very significant manner. The forecast for the next few years does not provide a bright picture for the economy. Italian banks will have to diversify, both with additional products and markets to counter the negative effects of recent phenomena. Strong guidelines should provide a solid base for the integrity of this industry, both in capitalization and

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