Annual Accounts and Report as at 30 June 2011 Draft - Mediobanca

Germany (8%). At the reporting date impaired loans (non-performing, substandard,restructured and overdue items) amounted to €183m (€243.6m),after adjustments totalling €93.1m (€32.7m); impaired assets representjust 1% (1.47%) of the total loan book, while non-performing loans werevirtually nil. During the twelve months two sub-standard loans were repaid(one of which at its nominal value, in an amount of €111m), while four newsuch positions were recorded (for a net amount of €34.2m, with a coverageratio of 65%). In loan syndication, where Mediobanca acts as bookrunnerand arranges club deals, transactions worth a total of €55.7bn (€34bn)were arranged, in a reference market largely characterized by refinancingdeals. The area generated approximately 45% of the wholesale bankingdivision’s revenues.Funding and treasury accounts — funding remained stable, downfrom €44,921.7m to €44,908.2m, and comprises: €38,307.1m(€38,625.1m) in debt securities in issue, €318.4m of which in short-termfunding (CDs and commercial paper); €3,949.9m (€3,099.9m) in depositsand current accounts, and €2,651.2m (€3,182.7m) in other forms offunding, chiefly bank debt used in the leasing business. Treasury accountsconsist of €199.3m (€264.2m) in cash and cash equivalents, €4,031.6m(€9,002.1m) in debt securities, €1,860.9m (€1,214.2m) in equities,€576.1m (€367.5m) in downward adjustments to derivative contracts, and€3,953.8m (€6,249.2m) in net short-term applications of funds, €2,015.6mof which to Group companies. This area generated 30% of the wholesalebanking division’s revenues.Fixed assets and AFS bonds — these include €1,642.9m (€719.8m) infinancial assets held to maturity, €2,358.2m (€734.7m) in unlisted debtsecurities recognized at cost, and €5,053.5m (€3,727.3m) in AFS bonds.During the period under review, there were purchases worth €4,879.1m(mostly in the AFS segment), sales and redemptions totalling €851.5m,impairment charges amounting to €82.6m, adjustments to reflect amortizedcost in an amount of €20.2m, and downward adjustments to reflect fairvalue totalling €87.5m. Overall, writedowns of €127.7m were charged tothis portfolio at the reporting date, €93.1m of which were taken through thenet equity valuation reserves.– 35