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UNICREDITO ITALIANO GROUP 1 st Half 2003 Results

UNICREDITO ITALIANO GROUP 1 st Half 2003 Results. London - September, 16 th 2003. EXCELLENT INCREASE IN NET INCOME AND GOOD EFFIENCY LEVELS AFTER SIX MONTHS FROM THE THREE SEGMENT BANKS START-UP. Net Income up 12.3% 1H03/1H02 (19.8% 2Q03/1Q03).

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UNICREDITO ITALIANO GROUP 1 st Half 2003 Results

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  1. UNICREDITO ITALIANO GROUP1st Half 2003 Results London - September, 16th 2003

  2. EXCELLENT INCREASE IN NET INCOME AND GOOD EFFIENCY LEVELS AFTER SIX MONTHS FROM THE THREE SEGMENT BANKS START-UP • Net Income up 12.3% 1H03/1H02 (19.8% 2Q03/1Q03) • Improvement of profitability and efficiency ratios (ROE from 17.2% in Dec02 to 20.2% in 1H03; Cost/Income from 54.6% in Dec02 to 52.1% in 1H03) • Good revenue generation (Total Revenues up 2.1% 1H03/1H02, +3,5% 2Q03/1Q03) supported by different Divisional drivers: • Retail: substantial increase in sales of high value added products (bancassurance and structured bonds) • Corporate: excellent increase of revenues from corporate derivatives sales (474 mln, +29% y/y) • Private & AM: record net sales of Pioneer (5.4 bn), more than doubled vs. 1H02 • New Europe: positive results from the launch of new products (2 bn AUM, +98% y/y) • Excellent capital ratios confirmed: Core Tier 1 at 7,07%, Total Capital Ratio 11,40%

  3. AGENDA 1H03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division

  4. VERY GOOD NET INCOME GROWTH (+12.3% on 1H02) SUPPORTED BY AN INCREASE IN OPERATING INCOME (+0.9% on 1H02) AND LOWER PROVISIONS’ NEEDS. HIGH PROFITABILITY AND EFFICIENCY LEVELS RECONFIRMED (ROE at 20.2%, C/I at 52.1%) NET INCOME (Euro mln) ROE (1) % +12.3% +0.9 pp +18.7% +3 pp 1,132 +19.8% 1,008 20.2 19.3 17.2 617 515 520 1H02 1H03 1H02 FY02 1H03 2Q02 1Q03 2Q03 OPERATING INCOME (Euro mln) COST/INCOME RATIO % +5.4% +0.6 pp +0.9% 2,599 2,576 -2.5 pp +6.6% 54.6 52.1 51.5 1,341 1,272 1,258 1H02 1H03 1H02 FY02 1H03 2Q02 1Q03 2Q03 (1) Calculated on end of period net equity excluding profit for the period

  5. WELL BALANCED BUSINESS PORTFOLIO SUPPORTS GOOD PROFITABILITY AND EFFICIENCY IN 1H03 … Total Group1 Retail Division Corporate Division Priv.& AM Division NE Division (Euro mln) 1H03 RESULTS Total revenues 2,461 1,663 444 813 5,423 Operating costs -1,503 -478 -310 -453 -2,824 Operating income 958 1,185 134 360 2,599 Loan-loss provisions -96 -213 -3 -72 -363 Net income for the Group 464 565 85 153 1,132 C/I Ratio 61.1% 28.6% 69.8% 55.7% 52.1% Employees2 25,799 6,072 3,122 30,128 70,356 (1)Balance due to the Parent Company, other Group companies and elisions (2)Including all the employees of Koc Financial Services (3,564 as at 30.6.2003)

  6. … AS WELL AS IN 2Q03 (Euro mln) Total Group1 Retail Division Corporate Division Priv.& AM Division NE Division 2Q03 RESULTS Total revenues 1,242 809 234 427 2,758 % Change vs 1Q032 +1.9% -5.3% +11.4% +10.4% +3.5% Operating costs -765 -246 -161 -233 -1,417 % Change vs 1Q032 +3.7% +6.0% +8.1% +6.0% +0.7% 1,341 Operating income 477 563 73 194 % Change vs 1Q032 -0.8% -9.5% +19.7% +16.2% +6.6% Loan-loss provisions -50 -157 -2 -31 -199 % Change vs 1Q032 +8.7% n.m. n.m. -24.5% +21.3% Net income for the Group 225 240 40 86 617 % Change vs 1Q032 -5.9% -26.2% -11.1% +26.9% +19.8% C/I Ratio 61.6% 30.4% 68.8% 54.6% 51.4% Change in bp vs 1Q032 +105 bp +324 bp -215 bp -226 bp -142 bp (1)Balance due to the Parent Company, other Group companies and elisions (2)Calculated on data at end of period FX

  7. GOOD GROWTH OF TOTAL REVENUES (+3.5 Y/Y AT CONSTANT FX), HELPED BY THE STRONG PERFORMANCE OF INCOME FROM FINANCIAL TRANSACTIONS AND HIGHER DIVIDENDS MORE THAN OFFSETTING THE SLIGHT DECREASE IN NET INTEREST INCOME AND NET COMMISSIONS TOTAL REVENUES (Euro mln) % ch. on 1H02 % ch. on 1Q03 % ch. on 2Q02 1H03 2Q03 TOTAL GROUP 5,423 +2.1 2,758 +3.5 +5.0 5,423 +3.5 2,760 +3.6 +4.6 At constant FX Net interest income (incl. Dividends) 2,655 -1.8 1,387 +9.4 +2.1 2,655 -0.4 1,387 +9.3 +1.4 At constant FX Net commissions 1,619 -1.8 830 +5.2 -1.0 1,619 -0.6 832 +5.7 -0.6 At constant FX Income from financial transactions 785 +27.6 349 -20.0 +37.9 785 +28.9 349 -19.9 +37.8 At constant FX Other net income 364 +6.1 192 +11.6 +9.7 364 +7.4 192 +11.8 +7.3 At constant FX 1 3 mln in 1Q03

  8. +2.1% CUSTOMER LOANS UP 2.1% ON DEC02 MAINLY DRIVEN BY DOMESTIC LENDING BOTH IN RETAIL AND CORPORATE TOTAL CUSTOMER LOANS* BREAKDOWN BY DIVISION bn • Retail Division up +2.9% on Dec02 supported by a positive contribution of residential mortgages to households (+6.4% on Dec02) • Corporate Division up2.1% on Dec02 also thanks to increased volumes to SMEs (+6.7%** 1H03/1Q03) • New Europe Division down 3.1% on Dec02 (+2.8% at unchanged FX) mainly hit by Zloty devaluation (-10.2% on Dec02) and decreased lending in Poland (-6.3% at unchanged FX) 115.2 112.8 111.4 Retail 42.6 +2.4% 41.4 41.6 +0.5% Corporate 57.2 +5.0% 56.0 54.5 -2.7% New Europe 12.1 -2.5% -0.6% 12.5 12.2 Other +6.3% +5.6% 2.9 3.1 3.2 1Q03 1H03 Dec02 % ch 01Q03/Deco2 % ch. 1H03/1Q03 * Excl. Repos ** Corporate Bank

  9. +0.7% +3.6% TOTAL DEPOSITS (incl. repos) UP 3.6% ON DEC02 DUE TO AN INCREASE IN BOTH ADMINISTERED AND MANAGED FUNDS • Direct deposits down 1.7% on Dec02 due to a decrease in repos (-18.2% on Dec02) while customer deposits (excl. repos) grow by 0.7% on Dec02; stable trend in securities in issue (+0.3% on Dec02). • Indirect deposits up 6.9% on Dec02 (+5.4% on 1Q03) due to an increase both on administered (approx. 4.5 bn securities placed by Retail and Private banks, +7.9% on Dec02) and on managed funds (+5.9% on Dec02) driven by strong net inflows and positive market performance (MSCI World: +10% on Dec02) but negatively hit by $ devaluation (-8.2% on Dec02) TOTAL DEPOSITS* (bn) 353.7 341.3 338.1 +3.6% Direct 129.5 122.8 127.2 -5.2% Indirect 211.8 215.3 226.5 +5.4% +1.7% Dec02 1Q03 1H03 % ch. 1H03/1Q03 % ch 01Q03/Deco2 CUSTOMER DEPOSITS**: BREAKDOWN BY DIVISION (bn) • Retail Division up 1,5% on Dec02 • Corporate Division down approx. 11% on Dec02 but up 15% on 1Q03 hit by seasonal corporate fiscal payments • New Europe Division down 7.4% on Dec02 mainly impacted by Zloty devaluation (-1.7% at unchanged FX) and switch into managed funds 81.0 80.5 77.4 38.6 +1.1% 39.0 +0.4% 39.2 Retail 10.6 11.9 -22.4% Corporate 9.2 +14.8% 20.4 -7.4% 0% 22.0 20.4 New Europe 10.8 +9.4% +24.1% 8.8 8.0 Other 1Q03 1H03 % ch. 1H03/1Q03 % ch 1Q03/Dec02 Dec02 * Incl. Repos ** Excl. Repos

  10. STRONG INCREASE OF TOTAL AuMs (+6.4% ON END OF MARCH) DRIVEN BY EXCELLENT SALES AND POSITIVE INVESTMENT PERFORMANCE IN 2Q03 … and excellent sales of high value added products indeed Strong recovery of Total AuMs (despite a less favourable Asset Mix) lead by positive market performance … • BANCASSURANCE (Italy) 108.4 UCI TOTAL AuM +6.4% 102.4 101.8 (Euro bn) • 2Q03 Total New Premiums written: Euro 1,932 mln (+9.4% on 1Q03); 1H03 Total New Premiums written: Euro 3,698 mln (+24.8% YoY) -0.6% 27.4 +16.1% +0.7% 23.5 23.7 18.3 • Euro 140 mln Recurring Premiums written in 1H03 (+65.0% YoY); Recurring Premiums/Total Premiums written ratio from 2.9% in 1H02 to 3.8% in 1H03 +11.3% 15.3 Insurance 16.4 +7.3% Segregated Accounts 24.4 -2.0% 26.0 24.8 -4.4% +3.5% vs 31.03.’03 +3.8% • Reinforced leadership in the segment: 18.6% mkt share in bancassurance (17.6% in 2002); 14.6% mkt share on total market (11.7% in 2002) -2.0% 38.3 37.6 36.9 Mutual & Hedge Funds1 31.12.’02 31.03.’03 30.06.’03 • HEDGE FUNDS (Worldwide) US, New Europe & Intl. Italy • 2Q03 Net Sales Euro 191 mln vs Euro 107 mln in 1Q03, +78.5%; 1H03 Net Sales Euro 298 mln vs Euro 155 mln in the whole 2002 PGAM AuM: Evolution by Asset Class 0.7% 1.6% 1.6% Hedge Funds 25.6% 27.8% 41.9% Equities • AM PRODUCTS in US, NEW EUROPE and in the INTERNATIONAL business areas 12.5% 13.4% 13.1% Balanced • 2Q03 Total Net Sales of Asset Management products in the foreign business areas increasing by 41.1% on 1Q03 (Euro 2,077 mln vs Euro 1,472 mln) 40.8% 38.3% 29.0% Bonds 18.9% 19.5% Money Market 15.3% • 1H03 Net Sales (Euro 3,549 mln) representing around 75% of Total 2002 Net Sales 2002 Avg. 1Q03 Avg. 2Q03 Avg. (1)Plain vanilla Mutual and Hedge Funds distributed in Italy (Total AuM in Mutual and Hedge Funds in Italy, including Mutual Funds in Segregated Accounts and Unit Linked, Euro 64.3 bn as at 31.6.2003 vs Euro 62.6 bn as at 31.12.2002, +2.8% - Source: Assogestioni)

  11. OPERATING COSTS BREAKDOWN % ch. on 1H02 % ch. on 1Q03 % ch. 2Q02 1H03 2Q03 (Euro mln) Staff Costs 1,639 +4.1 831 +2.8 +7.5 962 +0.8 472 -3.7 -1.0 Other Costs Depreciation 223 +7.2 114 +4.6 +10.7 TOTAL GROUP 2,824 +3.2 1,417 +0.7 +4.7 2,824 +4.7 1,419 +0.9 +4.4 At constant FX INVESTMENTS AND STAFF COSTS INCREASING AGAINST A GOOD COST CONTROL OF THE OTHER COSTS • First half 03 total group costs impacted by the “in progress” reorganisation and investments (depreciation +7.2% mainly due to the New Europe Division – IT and network investments) • C/I at 52.1% decreases to 51.5% net of one-off S3 costs • Staff costs’ increase vs. 1H02 (+4.1%) is mainly attributable to the new labour contract (weights 2.5%). More accruals for the variable part of some companies (UBM, TradingLab) due to the brilliant results achieved weight for 0.8%

  12. NON OPERATING ITEMS CHARACTERISED BY LOWER PROVISIONS’ NEEDS AND BY DECREASED NET EXTRAORDINARY INCOME vs. 1H02 • Euro 363 mln Net loan loss provisions (of which write-downs for Euro 670 mln and write-backs for Euro 307 mln), down 27.7% vs. 1H02 mainly due to lower net write-downs (152 mln) in New Europe (Euro mln) -136 2,599 -363 -136 +70 -825 • Tax Rate at 40.5% -77 • Net Write-downs of Financial Investments Euro -2 mln • Provisions for risks & charges Euro -134 mln • Disposal of Investments for Euro 31 mln • Euro 58 mln of release of reserves previously created 1,132 Operating income Goodwill amort. Net loan loss prov. Other net prov1 Net extr. income Taxes Minorities Net Income 1 Net write-downs of financial investments, Provisions for risks and charges, Provision to Reserve for General Banking risks

  13. ASSET QUALITY IMPACTED BY THE WEAK ECONOMIC CYCLE IN ITALY BUT IMPROVING IN NEW EUROPE; STRONG YoY REDUCTION OF GROSS NPLs ENTRY FLOWS AND SIGNIFICANT GROWTH OF COLLECTIONS Net NPLs and Doubtful Loans as % of Total Net Loans Coverage ratios 60.6% 60.0% 48.0% 47.7% 3.73% 3.71% 1.92% 1.87% 31.12.’02 30.06.’03 31.12.’02 30.06.’03 Net Doubtful Loans/ Total Net Loans Net NPLs/ Total Net Loans On Gross Doubtful Loans On Gross NPLs • Strong YoY reduction of gross NPLs entry flows from “in bonis” (Euro 252 mln in 1H03 vs Euro 418 mln in 1H02, -39.8%) and decreasing entry flows of other gross doubtful loans from “in bonis” (Euro 913 mln in 1H03 vs 937 in 1H02, -2.6%), mainly thanks to New Europe Cost of risk1 (bp, annualised) +9 bp 63 73 64 • +24.2% YoY growth of total collections (Euro 656 mln in 1H03 vs Euro 528 mln in 1H02) thanks to effective workout activities -1 bp 1H022 20022 1H03 • Cost of risk1 in line with 1H022 1 Calculated as Net Loan Loss Provisions on Net customers Loans at period-end; half-year data annualised on a daily basis (Total Net Loan Loss Provisions in the period / Number of days of the period x 365) 2 Data net of extraordinary provisions posted in 2002 (Bank Pekao and UniCredit Banca)

  14. CONFIRMED OUTSTANDING SOLVENCY RATIOS, WITH CORE TIER 1 RATIO ABOVE 7%.RISK ADJUSTED PROFITABILITY STILL AT HIGH LEVELS CORE TIER 1 RATIO (considering all RWA) TOTAL CAPITAL RATIO (considering all RWA) TOTAL RWA From Euro 135.9 bn (Dec 02) to Euro 144.4 bn (Jun 03), +6.25% From 7.21% (Dec 02) to 7.07% (Jun 03) From 11.89% (Dec 02) to 11.40% (Jun 03) Shareholder’s value added (c) =(a)-COE(2) Value added per unit of risk taken (c)/(b) NOPAT (a) Risk taken(1) (b) MARGINAL RARORAC % CAPITAL ABSORPTION VALUE CREATION RARORAC % NOPAT (Euro mln) 1,132 Group Total(3) 9,460 595 12.6 16.5 464 2,832 334 23.6 24.1 Retail Division 565 4,507 346 15.3 15.4 Corporate Division 85 471 -30 -12.9 27.0 Private & AM Division 153 New Europe Division 1,184 28 4.8 18.1 (1) Minimum regulatory capital, market risks, credit risks and operational risks (2) The Cost of Equity is related to the capital employed (Net equity for the Group and allocated capital for the business units) (3) Balance due to Corporate Center and Other companies, respectively -136 for NOPAT, 466 for Capital absorption and -83 for Value Creation

  15. AGENDA 1H03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division

  16. 86.5% 5.8% 0.2% 1.2% 3.5% 0.2% 2.6% RETAIL DIVISION : GOOD PERFORMANCE OF TOTAL REVENUES, OPERATING COSTS GROWTH DUE TO MARKETING EXPENSES AND TRAINING PROJECTS, 500 HEADCOUNT REDUCTION IN UNICREDIT BANCA VS. YEAR END RETAIL DIVISION BREAKDOWN OF1H03 REVENUES % ch. on 1Q03 1Q03 2Q03 Net interest income (incl. div.) 628 677 +7.8 Net non interest income 591 565 -4.4 Total revenues 1,219 1,242 +1.9 Administrative costs (incl. depr.) -738 -765 +3.7 Operating income 481 477 -0.8 Net write-down of loans -46 -50 +8.7 Other net provisions -9 -14 +55.6 Net extraordinary income -4 -3 -25.0 Taxes -180 -186 +3.3 Net income 242 224 -7.4 Net income for the Group 239 225 -5.9 Other companies Cost Income ratio, % 60.5 61.6 +105bp

  17. INCREASED LENDING VOLUMES NOT COUNTERBALANCING THE SHRINKING DEPOSIT SPREAD, BRINGING TO A REDUCTION OF NET INTEREST INCOME (EXCL. DIVIDENDS) VS. 1Q03 (-6.1% Q/Q) +2.4% EOP LOANS, Euro bn • UniCredit Banca: avg. lending spread from 5.81% in 1Q03 to 5.98% 2Q03, up 17bp 42.6 41.6 41.4 6.7 Other loans 6.5 2.0 +2.7% 7.0 -6.7% 1.9 Cons. credit +5.0% • Good flow of new residential mortgages(2), 1.6 bn in 2Q03 vs. 1.3 bn in 1Q03, +23% 1.8 +1.6% 13.1 13.2 -0.8% SB loans (1) 12.9 +1.6% Residential mortgages (2) 20.9 • Clarima: 81,000 cards actively used, +60% on Dec 02. 1.7mln transactions, +70% on full year 2002 20.1 19.6 +2.2% +4.1% 2002 1Q03 2Q03 EOP DEPOSITS, Euro bn 59.4 58.0 55.5 • UniCredit Banca: avg. deposit spread from 2.07% in 1Q03 to 1.81% in 2Q03, down 26bp Bonds 17.1 16.0 -6.7% -11.0% 14.2 -4.3% Other deposits 16.5 16.8 15.6 +1.4% -6.9% • Decrease of volumes mainly explained by bond, from 17.1 bn (Dec 02) to 14.2 bn (Jun 03), -17% Households c/accounts 25.8 25.7 25.3 -2.1% +1.7% 2002 1Q03 2Q03 (1) Includes short term and m/l term loans (2) Includes only households mortgages

  18. GROWTH OF NET COMMISSIONS (+1.1% Q/Q), DRIVEN BY THE GOOD PERFORMANCE OF BANCASSURANCE AND SECURITIES IN CUSTODY... RETAIL DIVISION: NET COMMISSIONS Breakdown by nature % Ch. on 1Q03 (Euro mln) 2Q03 1Q03 TOTAL RETAIL DIVISION 378 383 +1.3 212 213 +0.8 Total Commissions from Wealth Management • Mutual funds 1 158 149 -5.7 • Segregated Accounts 2 21 20 -5.6 • Insurance Products 2 97 107 +10.0 • Commissions paid back to Pioneer 3 -64 -63 n.m. Securities in custody 60 80 +31.6 Other services 106 90 -15.1 1 Includes subscription and management fees from Plain Vanilla Mutual Funds and management fees from Mutual Funds in Segregated Accounts and in Unit Linked 3 Management commissions paid back to Pioneer from the SGR of the division for the management of funds 2Management fees related to Mutual Funds underlying Segregated Accounts and Unit Linked not included (see note 1)

  19. ... AND BY A GOOD INCREASE IN INDIRECT DEPOSITSSUSTAINED BY EXCELLENT SALES OF VALUE ADDED PRODUCTS INDIRECT DEPOSITS(1), Euro bn 97.7 96.5 +1.2% • MAIN TRENDS IN STOCKS OF AUMs • Total assets invested in Funds(2) from 44.7 bn to 46.0 bn, +2.8% Q/Q • Total Insurance policies(3) from 4.0 bn to 4.3 bn, +6.3% Q/Q AUMs 51.7 50.3 +2.8% Administered assets 46.2 46.0 -0.4% 1Q03 2Q03 Structured bonds Bancassurance single premiums Bancassurance recurring premiums = share of total insurance sales +50% 3.9% +48% +31% 4.4 bn 154 mln 3.8 bn 3.4% 3.0 bn 2.9 bn 104 mln Jan-Aug 2002 Jan-Aug 2003 Jan-Aug 2002 Jan-Aug 2003 Jan-Aug 2002 Jan-Aug 2003 (1) Management accounts, including only deposits of private customers (2) Plain vanilla mutual funds + Segregated accounts invested in funds + Unit Linked invested in funds (3) Unit Linked not invested in funds + traditional policies

  20. COST OF RISK OF THE DIVISION IN LINE WITH THE PREVIOUS YEAR, EVEN AFTER A SUBSTANTIAL INCREASE OF GENERIC PROVISIONS LEADING TO AN IMPROVED COVERAGE RATIO ON PERFORMING LOANS Net NPLs and Doubtful Loans as % of Total Net Loans Coverage ratios 3.89% 3.94% 48.8% 48.2% 37.8% 37.7% 1.99% 2.07% 31.12.’02 30.06.’03 31.12.’02 30.06.’03 Net Doubtful Loans/ Total Net Loans Net NPLs/ Total Net Loans On Gross Doubtful Loans On Gross NPLs • Increased coverage ratio on Performing Loans, from 56 bp as at Dec 2002 to 67 bp at end of June, +11 bp • Increased coverage ratio on Gross Doubtful Loans • Cost of risk in line with the previous year(2) • Effective workout activities, resulting in total collections of Euro 29 mln Cost of risk(1) (bp, annualised) 48 bp 45 bp -3 bp 2002 1H03 (1) Calculated as Net Loan Loss Provisions on Net customers Loans at period-end; half-year data annualised on a daily basis (Total Net Loan Loss Provisions in the period / Number of days of the period x 365) (2) Pro-forma, net of extraordinary provisions

  21. KEY HIGHLIGHTS ON OTHER COMPANIES OF THE DIVISION BANCA DELL’UMBRIA TRADINGLAB • Good revenue growth (+3.4% y/y) coming from • stable Net Interest Income (+0.2% y/y) • good Net Non Interest income growth (+9.0%), driven by 15.5% increase in net commissions • Excellent efficiency improvement, cost/income ratio from 57.8% in 1H02 to 55.9% in 1H03 • Total revenues from Euro 99 mln to Euro 141 mln, + 42.4% y/y • 1H03 non captive revenues representing 62.3% of total revenues (59.2% in FY2002) • Excellent performance of DLN(1) Origination business, with growing volumes (+58% y/y) and margins (+94% y/y) • 2Q avg. Daily VaR: Euro 2.9mln, -6.1% vs. avg. 2002 CLARIMA UNICREDIT BANCA PER LA CASA • Good increase in the number of cards issued (136,000, +49% vs. Dec 02) • Good increase in the number of partnerships, from 17 in Dec 02 to 23 at end of June • Increased number of employees to strengthen call centre • Set-up of the operating platform almost completed • Good increase in the flow of new mortgages, from Euro 130 mln in 1Q to Euro 160 mln in 2Q, +23% q/q (1) Derivative Linked Notes

  22. AGENDA 1H03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division

  23. 29.7% 5.7% 5.5% 2.7% THE CORPORATE DIVISION SHOWS A VERY GOOD EFFICIENCY WITH A COST/INCOME AT 30.4% IN 2Q03 (AT 28.6% IN 1H03) AND A GOOD PROFITABILITY (1H03 RARORAC AT 15.3%) CORPORATE DIVISION BREAKDOWN OF 1H03 REVENUES % ch. 1Q03 2Q03 (Euro mln) Net interest income (incl. div.) 376 368 -2.1 Net non interest income 478 441 -7.7 854 809 -5.3 Total revenues 56.4% Operating costs (incl. depr.) -232 -246 +6.0 622 563 -9.5 Operating income Net write-downs of loans -56 -157 +180.4 Other net provisions -15 -10 -33.3 4 16 n.m. Net extraordinary income -228 -169 -25.9 Taxes Other Companies 327 243 -25.7 Net income 325 240 -26.2 Net income for the Group 27.2% 30.4% +324bp Cost Income ratio, %

  24. UNICREDIT BANCA D’IMPRESA RESULTS SHOW NET INTEREST INCOME IN 2Q03 ALMOST IN LINE WITH 1Q03 AND THE EXPECTED DETERIORATION IN ASSET QUALITY DUE TO THE ECONOMIC CYCLE % ch. on 1Q03 (Euro mln) 1Q03 2Q03 • Net interest income: –1.1% vs. March03 as result of the recovery in 2Q03 vs. 1Q03 in both loans (avg. loans +2.96%) and deposits (avg. deposits+3.87%) coupled with an avg. short term spread decreasing from 3.99 in 1Q03 to 3.79 in 2Q03 294 291 -1.1 Net interest income 175 -1.7 Net non interest income 178 Of which: 82 +11.2 74 - commissions 88 -13.3 102 - trading profits • Net non interest income: -1.7% vs. March03 mainly due to the seasonal decrease of the revenues from corporate derivatives (-15% 2Q/1Q03) -1.3 472 Total revenues 466 -137 +7.2 Operating costs -128 -4.5 344 329 Operating income • Provisions: the 2Q/1Q03 increase is due to NPLs’ growth explained by cyclical reasons and by the adoption of a cautious policy of higher coverage on thein bonis loans due to the tough macroeconomic cycle -130 +174.2 Net write-downs of loans -48 -6 -57.6 Other net provisions -15 109 -33.6 165 Net income -33.6 165 Net income for the Group 109 29.4% +230bp 27.1% Cost Income RATIO, %

  25. LOANS % ch. Jun03/Mar03 % ch. Jun03/Dec02 Dic02 Jun03 Mar03 (Euro mln) Largest 42 groups 6,077 4,990 6,545 +31.2 +7.7 7,450 6,477 7,532 Other corporates* +1.1 +16.3 21,489 20,802 22,203 +3.3 +6.7 SMEs 5,174 4,130 4,754 -8.1 +15.1 Public sector and others 39,103 37,486 41,034 +4.9 +9.5 Total FIRST HINTS OF INCREASE IN LENDING MARKET SHARE.LOANS TO SMEs GROWING SLIGHTLY FASTER THAN THESYSTEM. VOLUMES IMPACTED BY SOME DEALS TO LARGE CORPORATE • System’s data show an increase in loans from Dec02 to Jun03 of 2.6% and from Mar03 to Jun03 of 1.0% against respectively +3.3% and +6.7% of UBI loans to SMEs • Largest 42 groups: increase mainly due to the “Autostrade”and Fidis deals Source: Credit Bureau * With turnover > 50 mln

  26. EXCELLENT RESULTS OF UBM IN BOTH TOP AND BOTTOM LINE ALSO RECOGNISED BY STANDARD AND POOR’S RATING “AA-” y/y % ch. y/y % ch. • Rating based on recognition of central role of UBM within the Group and top level quality of risk management 1H03 2Q03 (Euro mln) Financial Products Sales and Trading 431 +25.0 190 +31.2 390 +24.7 172 +28.3 of which derivatives • Revenue increase driven by good performance of derivatives and by the investment banking activities +76 Investment Banking 64 +11.8 23 Total revenues +28.8 495 +29.9 213 Staff costs -58 +17.9 -27 +4.4 • Strong and efficient risk control with an avg daily VAR of 3.8 mln in 1H03 vs. 4.1 in 1H02. Other costs (incl. depr.) -37 +2.5 -21 +5.0 Operating income 400 +35.2 165 +38.3 Net income 234 +41.8 92 +44.3 • Excellent efficiency thanks to the consistent revenue growth and a less than proportional increase in costs C/I Ratio 19.1% -318 bp 22.6% -530 bp

  27. Corporate Finance • UBI and UBM are implementing common operating business processes able to deliver sophisticated corporate finance deals and techniques to Italian SMEs • Busy pipeline of deals with UBM acting as structurer and advisor and UBIdynamically managing its greatly diversified credit portfolio and booking power • One of the first example of the potential synergies is the structuring of guaranteed district bonds (e.g.: Neafidi bond) SYNERGIES BETWEEN UBI AND UBM: CONSOLIDATION IN THE CORPORATE DERIVATIVES BUSINESS AND REPLICATION OF THE SAME JOINT BUSINESS MODEL IN THE CORPORATE FINANCE ACTIVITY (Euro mln) % ch. on 1H02 Corporate Derivatives 2Q03 1H03 Thanks to the successful joint action of UBM and UBI the Group revenues from corporate derivatives show an excellent growth 1H03/1H02 (+29%). Moreover, focus on sales quality through the implementation of daily monitoring toolsstrengthens long term business sustainability +27.7 UBM 281 114 captive 148 +22.7 62 non captive 133 +33.8 52 189 87 +28.8 UBI n.a. 4 3 Other companies 341 152 Total Captive +27.7 UCI TOT. REVENUES FROM SALES 474 204 +29.3

  28. +25 bp 73 bp 48 bp 2002 1H03 CAUTIOUS PROVISIONING POLICY OF THE CORPORATE DIVISION TAKING ACCOUNT OF THE ECONOMIC ENVIRONMENT Net NPLs and Doubtful Loans as % of Total Net Loans Coverage ratios 45.9% 45.5% 41.0% 40.6% 2.50% 2.42% 1.53% 1.49% 31.12.’02 30.06.’03 31.12.’02 30.06.’03 Net Doubtful Loans/ Total Net Loans Net NPLs/ Total Net Loans On Gross Doubtful Loans On Gross NPLs Cost of risk1 • Deterioration of business cycle causing a slight worsening of netNPLs and net Doubtful Loans on the total net loans (+4 bp and +8 bp respectively from Dec02 to Jun03) • Increased provisioning levels (from 48 to 73 bp) to take into account the financial deterioration of specific industrial sectors • Improved coverage ratios on Gross Doubtful Loans and Gross NPLs (+40 bp both) • +10 bp on coverage ratio on Performing Loans 1 Calculated as Net Loan Loss Provisions on Net Customers Loans at period-end; half-year data annualised on a daily basis (total Net Loan Loss Provisions in the period / number of days of the period x 365)

  29. AGENDA 1H03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division

  30. 56.5% 30.5% 8.4% 4.6% SIGNIFICANT QoQ IMPROVEMENT OF REVENUES AND OPERATING INCOME; NET INCOME PENALISED BY HIGHER PROVISIONS AND TAXES AND LOWER EXTRAORDINARY INCOME % ch.on 1Q03 PRIVATE BANKING & AM DIVISION 1H03 TOTAL REVENUES1 (Euro mln – Data at end of period FX) 1Q03 2Q03 Net interest income 18 20 +11.1 Net non interest income 192 214 +11.5 210 234 +11.4 Total revenues (Stand alone) Operating costs (incl. depr.) -149 -161 +8.1 61 73 +19.7 Operating income UPB subsidiaries2 Net write-downs of loans -1 -2 n.m. Other net provisions -1 -5 n.m. +5 +1 n.m. Net extraordinary income -18 -25 +38.9 Taxes 46 42 -8.7 Net income 45 40 -11.1 Net income for the Group 71.0% 68.8% -215 bp Cost/Income ratio, % (1) % contribution of the single companies to Division Total Revenues pre infra-group elisions (2)BAC S. Marino, BAC S. Marino Fiduciaria, UPAM, Cordusio Fiduciaria, FRT Sim, UniCredit Consulting, UniCredit Suisse Bank, Banque Monegasque de Gestion.

  31. INCREASED TOTAL FINANCIAL ASSETS WITH IMPROVED MIX; SALES GAINING MOMENTUM DRIVEN BY HEDGE FUNDS AND INSURANCE PRODUCTS (Stand alone) Fin. Assets as of 31.12.2002 Fin. Assets as of 30.06.2003 1Q03 Net Sales 2Q03 Net Sales • Total Financial Assets 1.9% up on Dec. ’02, with increased weight of AUMs (from 46.4% to 46.7%, +30 bp) (Euro mln) AUMs 16,974 -47 -51 17,418 - Mutual Funds 6,000 56 -85 6,048 • Positive trend of Gross Sales of AM products and Structured bonds: from Euro 280 mln in January to Euro 629 in June; weight of Hedge Funds on gross sales from 1.8% in January to 6.8% in June - Hedge Funds 81 20 75 179 - Segregated Accounts 8,335 -243 -300 8,032 - Insurance Products 2,558 1201 2601 3,159 17,000 -473 -413 16,912 Securities in Custody2 2,625 853 2463 2,956 Deposits • Turnaround of Total Net Sales of AM products in June (+Euro 55 mln), after 4 months of negative net sales 36,599 -9 154 37,286 TOTAL UPB Asset Mix Gross Sales monthly trend (AM Products4 + Structured Bonds) – Euro mln • Strong QoQ growth of Net Sales of Hedge Funds (Euro 75 mln vs Euro 20 mln) and Insurance Products (Euro 260 mln vs Euro 120 mln) 7.2% 7.9% +70 bp Deposits 629 583 513 Securities in Custody 467 -100 bp 45.4% 46.4% 461 280 +30 bp 46.7% 46.4% AUMs • Around Euro 800 mln inflows from 2nd Tax Amnesty5 Jan. Feb. Mar. Apr. May Jun. Dec. 2002 Jun. 2003 (1)New Premiums written (2)Including Repos (5)The figure relates to UniCredit Private Banking together with its subsidiaries (3) Absolute delta (including market performance for Securities in Custody) (4) Mutual Funds, Hedge Funds, Segregated Accounts and Insurance Products

  32. STRONG OPERATING PERFORMANCE; NET INCOME NEGATIVELY AFFECTED BY ONE-OFF PROVISIONS (Stand alone) 1Q03 2Q03 % Ch. (Euro mln) • Good resilience of Net interest income, thanks to increasing average deposits offsetting lower spreads 15.1 15.0 -0.7 Net interest income • Strong +29.2% growth of Net commissions driven by increased sales of high value added products (Hedge Funds and Insurance) and the improvement of the Asset Mix 45.4 59.9 +31.8 Net non interest income of which: 44.0 56.9 +29.2 - Net commissions 60.6 74.9 +23.7 Total revenues • Return on Average Financial Assets from 0.68% in 1Q to 0.81% in 2Q Operating costs (incl. depr.) -37.3 -42.9 +15.1 • Operating costs increase due to higher average staff (1,099 in 2Q vs 1,022 in 1Q), non-competition agreements with Private Bankers and other expenses for the development of the new bank of which: -22.3 -25.9 +16.5 - Staff costs -15.0 -16.9 +12.6 - Administrative expenses 23.3 32.0 +37.4 Operating income • Increase of Provisionsmainly due to Euro 3.4 mln posted in 2Q to face operational risks (one-off cost, not fiscally deductible) -1.5 -5.3 n.m. Net provisions -10.1 -13.5 +33.9 Taxes • Net Income including subsidiaries1: Euro 16.6 mln, in line with 1Q 12.0 12.2 +2.1 Net income for the Group 61.5% 57.2% -428 bp Cost/Income ratio, % (1)BAC S. Marino, BAC S. Marino Fiduciaria, UPAM, Cordusio Fiduciaria, FRT Sim, UniCredit Consulting, UniCredit Suisse Bank, Banque Monegasque de Gestion.

  33. LEADERSHIP IN ITALY BY TOTAL NET SALES IN 1H03, THANKS TO AN EXCELLENT +77% YoY GROWTH;ING PROVIDING ADDITIONAL SALES CAPACITY AND PERFECTLY FITTING WITH THE COMPANY STRATEGY PFAs • Streamlining of the Network: • Exit of “marginal” PFAs (Euro 1.36 mln Average Tot. Financial Assets of lost PFAs) • Recruitment of 125 new PFAs, generating on average Euro 2.9 mln net sales in 1H03 ~2,360 1,833 1,610 ING -223 ING ADDS: 31.12.2002 Pro-forma1 30.6.2003 30.6.2003 Pro-forma with ING • 750 PFAs, reinforcing Xelion’s 5th position among Italian PFAs networks Net Sales • Net sales 77% up YoY, ranking Xelion 1st in Italy for Total Net Sales in 1H03 (around 15% market share) and 2nd for Net sales per PFA2 +77% (Euro mln) ~1,300 1,008 • Improving QoQ trend (Euro 521 mln in 2Q vs Euro 487 mln in 1Q), with increasing weight of AM products3(83.2% in 2Q vs 67.8% in 1Q) ING 570 ING ADDS: 1H02 Pro-forma1 1H03 1H03 Pro-forma with ING • Important additional sales capacity (~Euro 300 mln in 1H03) Total Fin. Assets • Total Financial Assets 23% up vs 31.12.2002; Total Financial Assets per PFA from Euro 2.7 mln as of 31.12.2002 to Euro 3.7 mln as of 30.6.2003 (+39.7%) +23% ~9,600 (Euro mln) ING 5,988 • Weight of AM products3 from 70.5% as at end of March to 71.1% as at end of June (+68 bp) 4,883 ING ADDS: • ~Euro 3.6 bn Financial Assets (of which more than 90% in AM products3), making Xelion the 5th asset gatherer in Italy by Fin. Assets 31.12.2002 Pro-forma1 30.6.2003 30.6.2003 Pro-forma with ING (1) Pro-forma including data of “former Xelion”, UniCredit Banca and OnBanca (2) Among top-players for Total AUMs as at 30.6.2003; 5th taking into account all the Italian players (3) AM Products: Mutual Funds + Sicav + Segregated Accounts + Insurance products

  34. EXCELLENT NET SALES IN ALL THE BUSINESS AREAS;NEW HIGH FOR TOTAL AUMs AT THE END OF AUGUST,HIGHER THAN 11 bn VS YEAR END 2002 1H03 Net Sales AuMs as of 31.12.2002 AuMs as of 30.06.20031 Jul.+Aug. 03 Net Sales2 AuMs as of 31.08.20031 (Euro mln) 1Q03 2Q03 Italy 80,759 632 1,253 84,090 442 85,351 - Captive 65,693 268 940 67,985 574 69,342 - Non captive 15,066 364 313 16,105 -132 16,009 3,741 226 566 4,581 204 5,064 International (ex-Italy)3 US 17,665 962 1,149 20,053 427 22,042 US in USD 18.525 1,035 1,299 22.915 485 24,085 1,523 284 362 2,046 260 2,413 New Europe 103,688 2,104 3,330 110,770 1,333 114,870 TOTAL PIONEER 1,517 107 191 1,812 172 2,064 Alternative Investments 3 • Strong QoQ Net Sales trend: Italy +98%, International ex-Italy +150%, US +19% (+25.5% in USD), New Europe +27% • Increased market shares on total AUMs in US5 (from 1.36% as of Dec. 2002 to 1.5% as of end of June) and in Poland (from 24.7% to 26.6%) • Excellent +19.4% growth of Hedge Funds vs Dec. 2002 (1) Balance due to market and FX effects (2) Provisional figures, susceptible to small changes (4) Data already included in the other business areas (3) Including Momentum (5) Calculated on Non-proprietary funds

  35. AGENDA 1H03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division

  36. 42.8%1 24.6%1 6.5%1 17.6%1 4.0%1 3.0%1 1.4%1 NEW EUROPE: ACCELERATION OF REVENUES GENERATION IN 2Q03 DRIVEN BY FEES AND COMMISSIONS. GOOD PROFITABILITY (NET INCOME UP 39.1% y/y, +28.4% on 1Q03) IN A CONTEXT OF IMPROVING CREDIT RISK. %ch. at unchanged FX y/y % ch. % ch. on 1Q03 % ch. on 2Q02 NEW EUROPE DIVISION 1H03 2Q03 (Euro mln) -3.3 +4.6 +5.2 Net interest income2 530 270 BREAKDOWN OF REVENUES +0.7 +24.6 +18.5 Net non interest income 283 156 -1.9 +11.2 +9.7 813 Total revenues 427 +4.6 +5.9 +12.2 Operating Costs3 -453 -233 -9.1 +18.2 +6.8 360 194 Operating income -64.7 -20.0 -79.2 Net write-down of loans -72 -31 +91.1 n.s. n.m. Other net provisions4 -4 -6 -52.4 -66.7 -88.2 20 Net extraordinary income 4 +16.7 -0.0 +119.7 -84 Taxes -42 +37.5 +17.8 +154.5 220 Net income 119 +149.0 153 Net income for the Group 86 +39.1 +28.4 55.7 Cost/Income ratio (%) 54.6 +3.4 pp -2.2 pp +1.2 pp 1 Weight of the bank Total Revenues on Division Total Revenues – only UCI’s portion; balance due to Demir Romlease (weight: 0.2%) 4 Including provisions to reserve for general banking risk 2 Including dividends 3 Including depreciations

  37. +97.9% +34.4% 2.0 1.5 1.0 1H02 Dec02 1H03 TREND IN VOLUMES AND COMMERCIAL INDICATORS VOLUMES (at unchanged FX) Loans (Euro bn) Deposits (Euro bn) Assets under Management1(Euro bn) +4.5% -0.3% +3.1% -0.5% 12.2 21.1 21.1 11.8 21.0 11.7 1H02 Dec02 1H03 1H02 Dec02 1H03 COMMERCIAL INDICATORS Branches2 Front Office Staff/ Tot. Staff2 Active Customers2 (mln) 6.3 6.0 1,350 60.1% 1,347 other 60% golden 15% 15% Dec02 1H03 Dec02 1H03 Dec02 1H03 1 New Europe business area of Pioneer 2 KFS is included at 100%

  38. PEKAO IMPROVES PROFITABILITY THANKS TO SUCCESSFUL HIGH VALUE ADDED PRODUCT SALES AND REDUCED COST OF RISK. ZABA: GOOD OPERATING INCOME GROWTH THANKS TO HIGHER NET INTEREST INCOME (DRIVEN BY INCREASED VOLUMES) AND TIGHT COST CONTROL • NET INCOME +85.7% y/y • TOTAL REVENUES -11.7% y/y • Net interest income down 18.9% mainly impacted by deposits spread (–1.1 pp vs. June 02) and debt securities spread reduction (-1 pp vs. June 02) • Net commissions up 18.5% benefiting from a re-pricing on C/A packages and increased AUM • OPERATING COSTS +4.8% y/y • Higher depreciation (+21.6%) mainly due to IT investments • VOLUMES: • Customer loans -6.3% on Dec02: thanks to a selective lending policy asset quality remained stable with a slight increase in coverage ratio on Doubtful loans (62.7% in 1H03 from 62.2% in Dec02) • Direct deposits down -3.5% on Dec02 more than offset by a strong increase in investment funds • OPERATING INCOME +1% y/y, +25% excluding exceptional items • TOTAL REVENUES+0.2% y/y, +9.4%excluding exceptional items • Net interest income up 22.7% y/y despite margin pressure in a context of growing volumes • Trading profits down –66.8% y/y, -24% excluding exceptional items, mainly impacted by mark to market evaluation of Pliva shares (Euro -5 mln in 1H03, Euro +17 mln in 1H02) • OPERATING COSTS -0.5% y/y • Higher depreciation (+26.1%) linked to IT investments and branch network restructuring • Increased staff costs (+5.1%) despite headcount reduction (-1.5% y/y, to 5,296), mainly due to incentives • Lower administrative costs (-17.8%) due to tight cost control policies • VOLUMES: • Customer loans +13.5% on Dec02 in a context of improving structural macroeconomic conditions • Direct deposits +3.2% on Dec02 with higher loans/deposits ratio (to 64.6% from 58.7% in Dec02) All figures at unchanged FX, Data net of infragroup items

  39. SUCCESSFUL COMMERCIAL ACHIEVEMENTS IN THE FIRST HALF IMPROVEMENT IN MARKET SHARES PEKAO KFS • Euro 1.4 bn AUM in Mutual Funds1(+87% on Dec02) • Market Share in Mutual Funds1 +270 bp (to 26.6%) • Euro 138 mln AUM in Pension Funds (+19% on Dec02) • Euro 50 mln AUM in Accumulation Plans • Staff decreasing 4.9% (-866 on Dec02) • +100,000 Credit Cards (+32%), mkt share +50 bp (to 2.5%) • +500 new active Private clients (+12%) • 1° in leasing, among top 3 in AM UNIBANKA • +14% AUM, +13% AUC • +20% Affluent clients • +33 bp mkt share on Deposits ZABA • Euro 82 mln AUM in Mutual Funds (+34%on Dec02) • +140,000 Cards in 1H03 (to 1.9 mln), mkt share +49 bp (to 33.7%) • +64,000 Retail C/A in 1H03 (to 1.7 mln) • Retail loans mkt share +60bp (to 24.1%) UCROMANIA • Loans +37% (to Euro 81 mln), mkt sh. +20bp (to 1.5%) • Deposits +47% (to Euro 75 mln), mkt sh. +33bp (to 0.9%) • New retail C/A +24% BULBANK ZIVNO • Corporate Loans +33% on Dec02, mkt share +130 bp (to 11.7%) • +26,000 total clients • Total loans +6% • Credit and Debit Cards +31% 1 Mutual funds distributed by Pekao

  40. GOOD ASSET QUALITY IN NEW EUROPE IMPACTED BY PRUDENT LENDING POLICY IN PEKAO Net NPLs and Doubtful Loans as % of Total Net Loans Net Doubtful/Loans % 1H03 Coverage ratios Net NPL/ Loans % 1H03 ch. on Dec02 (pp) ch. on Dec02 (pp) At unchanged FX 79.8 79.9 Pekao 4.5 12.5 +0.7 +1.1 62.5 62.5 Zaba 2.2 4.8 -0.7 -0.6 KFS 5.0 8.3 +0.0 -1.4 Bulbank 1.1 1.6 +0.9 -1.6 Zivno 0.7 6.5 -0.8 -0.9 2002 1H03 Unibanka 3.9 7.1 -0.5 +1.8 On Gross Doubtful Loans On Gross NPLs Total NE +0.1 3.5 +0.0 8.9 • Stable Net NPL/Net Loans ratio and slight increase of Net Doubtful/Loans ratio Cost of risk1 (bp, annualised) • Net NPL/Loans and Net Doubtful/Loans ratios increase in Pekao mainly due to prudent lending policy (Net loans –6.3% on Dec02) +15% -27% 1882 1632 119 • Decreasing cost of risk thanks to stable asset quality and lower provisions’ needs • Stable coverage ratios both on NPL and on Doubtful loans • Strong decrease of gross NPLs entry flows from in Bonis -70.5% on 1H02, good increase of collections (+19% y/y) 1H02 2002 1H03 1 Calculated as Net Loan Loss Provisions on Net customers Loans at period-end; half-year data annualised 2 Data obtained deducting extraordinary provisions from stated figure

  41. Annex

  42. 1H03 CONSOLIDATED INCOME STATEMENT y/y % ch. % ch. on 1Q03 % ch. on 2Q02 (Euro mln) 1H03 2Q03 Net interest income (incl. div.) -1.8 +9.4 +2.1 2,655 1,387 - of which Dividends +33.1 n.s. +64.0 185 182 Net non interest income +6.2 -1.9 +8.3 2,768 1,371 Total revenues 5,423 +2.1 2,758 +3.5 +5.1 Administrative costs (incl. depr.) +3.2 +0.7 +4.7 -2,824 -1,417 2,599 1,341 +0.9 +6.6 +5.4 Operating income Goodwill depr. +10.6 +6.1 +29.6 -136 -70 Net write-down of loans -27.7 +21.3 -36.8 -363 -199 Other net provisions* -9.9 +47.3 -40.9 -136 -81 Net extraordinary income -51.4 +150.0 -67.9 70 50 Taxes -1.7 -11.2 -1.3 -825 -388 -77 -36 Minorities -10.5 -12.2 n.s. 1,132 617 +12.3 +19.8 +18.7 Net income (*)Net write-downs of financial investments, provisions for risks and charges, provisions for possible loan losses and provisions to reserve for general banking risk

  43. DIVISIONAL CONTRIBUTION TO THE GROUP OPERATING INCOME OPERATING INCOME: COMPOSITION BY DIVISION (Euro mln) -38 360 2,637 2,599 134 13.7% 1,185 5.1% 44.9% 100% 958 36.3% Retail Division Corporate Division Private & AM Division New Europe Division Total pre-Corp. Centre Corp. Centre and elisions(1) Group Total Weight of the division on Total pre Corporate Centre (1) Parent Company, USI, UPA, Audit, other companies and elisions

  44. DIVISIONAL CONTRIBUTION TO THE GROUP TOTAL REVENUES REVENUE COMPOSITION BY DIVISION (Euro mln) 5,381 +42 813 5,423 444 14.1% 1,663 7.9% 32.2% 2,461 100% 45.8% Retail Division Corporate Division Private & AM Division New Europe Division Total pre-Corp. Centre Corp. Centre and elisions(1) Group Total Weight of the division on Total pre Corporate Centre (1) Parent Company, USI, UPA, Audit, other companies and elisions

  45. ASSET QUALITY: DETAILS BY DIVISIONS Retail Banking Corporate Banking NE Banking Total Group 1 (Euro mln - Data at end of period FX) Dec. 02 Jun. 03 Dec. 02 Jun. 03 Dec. 02 Jun. 03 Dec. 02 Jun. 03 1,608 1,698 1,583 1,651 2,180 2,129 5,487 5,589 Gross NPL % change on Dec. ‘02 +5.6% +4.3% -2.3% +1.9% Gross NPL/Tot. Gr. Loans,% 3.77% 3.87% 2.66% 2.75% 14.94% 15.07% 4,56% 4,60% Net NPL 824 880 862 894 436 427 2,161 2,238 % change on Dec. ‘02 +6.9% +3.7% -2.1% +3.5% Net NPL/Tot. Net Loans,% 1.99% 2.07% 1.49% 1.53% 3.46% 3.50% 1,87% 1,92% Total gross doubtful loans 2,585 2,696 2,360 2,471 3,027 2,910 8,288 8,254 % change on Dec. ‘02 +4.3% +4.7% -3.9% -0.4% Gross Doubtful Loans/Tot. Gr. Loans,% 6.07% 6.14% 3.97% 4,11% 20.75% 20.61% 6,89% 6,79% Total net doubtful loans 1,611 1,678 1,402 1,459 1,132 1,091 4,310 4,317 % change on Dec. ‘02 +4.2% +4.0% -3.7% +0.2% 3.89% 3.94% 2,42% 2,50% 8.99% 8.94% 3,73% 3,71% Net Doubtful Loans/Tot. Net Loans,% Coverage ratios -on total gross NPL, % 48.8% 48.2% 45.5% 45.9% 80.0% 79.9% 60.6% 60.0% 37.7% 37.8% 40.6% 41.0% 62.6% 62.5% 48.0% 47.7% -on tot. Gross doubtful loans, % (1) Balance due to other Group companies (mainly Parent Company)

  46. RETAIL DIVISION: RESULTS BREAKDOWN BY BANK (Euro mln) UniCredit Banca Other banks (1) Other companies TOTAL (2) TradingLab Interest income (incl. div.) 1,144 72 71 18 1,305 Net non interest income 984 44 71 57 1,156 Total revenues 2,128 116 141 76 2,461 Operating costs (incl. dep.) 1,346 65 40 51 1,503 - of which: Staff costs 719 35 15 10 780 - of which: Other costs 574 28 22 39 662 Net operating income 782 51 102 24 959 Net provisions 103 9 - 7 120 - o/w: Net write-down of loans 83 8 - 5 96 Net income 363 24 66 14 467 Net income for the Group 363 22 66 14 464 Cost/income ratio, % 63.2 56.2 28.2 n.m. 61.0 (1) CR Carpi, Banca dell’Umbria (2) Balance due to roundings

  47. 744 106 31 -11 919 106 95 1663 137 91 478 27 263 15 42 49 12 215 46 1185 68 238 12 15 9 14 212 570 32 31 28 565 31 28.70% 28.8% CORPORATE DIVISION: RESULTS BREAKDOWN BY BANK Unicredit Banca d’Impresa (Euro mln) UBM TOTAL Other companies (1) Locat 24 Interest margin (incl. div.) 585 471 Net non interest income 353 495 938 Total revenues 95 265 Operating costs (incl. dep.) 58 148 - of which: Staff costs 37 117 - of which: Other costs 400 673 Net operating income 11 Net provisions 199 - o/w: Net write-downs of loans 11 178 234 Net income 274 234 274 Net income (UCI’s portion) 28.20% Cost/income 19.10% (1) Balance due to roundings

  48. UNICREDIT BANCA D’ IMPRESA: BREAKDOWN OF DEPOSITS AND LOANS VOLUMES (Euro bn) 1H03 1H03 42.3 LOANS 9.0 DEPOSITS 11.2 8.5 Current Accounts Current Accounts 0.2 14.7 Other short term loans Savings Accounts 0.3 Mortgages Repos 8.1 Other m/l term loans 8.3 Source: Bank of Italy Matrix data

  49. UBI RISK PROFILE COMPARED TO THE SYSTEM Source: UBI estimates on Centrale dei Bilanci data

  50. UBM VAR CHANNEL UBM Daily VAR(1) and P&L (June 2002 – June 2003) Euro mln Daily P&L VaR • 1H03 avg. daily VAR at Euro 3.8 mln vs 4.1 in 1H02 and 2Q03 avg. daily VAR at Euro 4.2 vs. 3.9 in 2Q02 (1) Figure are calculated with a 98-99% asymmetric double tail confidence interval.

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