1q05 consolidated results alessandro profumo - ceo

1Q05 CONSOLIDATED RESULTS

Alessandro Profumo - CEO

Milan - May, 12th 2005

2

1Q05 ACHIEVEMENTS CONFIRM THE GROUP’S STRATEGY

Strengthened competitive positioning in Italian banking (lending market share +5 bp, mutual funds market share +16 bp vs Dec04)

Solid operating performance (Operating income: +13.0% y/y and +7.6% q/q ) benefiting from good results in all Divisions

Headcount reduction plan well on track: -917 vs Jun04 and -427 vs Dec04 in Italy

Continued volume growth (AuM: +5.2%, Loans1: +3.0% q/q)

(1) Ex-repos

Net income up 48.7% y/y, benefiting also from “Serenissima” disposal

3

HIGH QUALITY RESULTS: ALL KPIs MOVING IN THE RIGHT DIRECTION

Total Revenues

Euro mln

2,712

693

60 bp

+1.2%

+10.5%

-3 bp

Operating Income

Net Income

1Q05 Q/Q ch.

1,209 +7.6%

55.4%C/I Ratio, %

7.36% +0 bpCore Tier I ratio

Cost of Risk, bp(1)

+9.0%

+48.7%

Y/Y ch.

+13.0%

(1) 1Q05 data annualised

Including +200 mln gain from disposal of “Serenissima” stake

Ch. on FY041Q05

32.0%Tax Rate, %

-262 bp -155 bp

+10.9 pp -5.1 pp

4

GOOD PERFORMANCE OF NET INTEREST INCOME (+7.1% Y/Y)

1Q04

New Europe

Italy

1,189

930

259

4Q04

1,304

981

323

NET INTEREST INCOME excl. dividends

1,274

986

288

1Q05

Q/Q trends

1Q05 2 days shorter than 4Q04 (gap of ~28 mln)

Italy contribution constantly up

New Europe decrease vs. 4Q mainly due to FX effect (26 mln)

+7.1%

+6.1%

+10.9%

Y/Y % ch.

Underlying y/y growth(1) would be +9.5%

(1) Y/y % ch. adjusted by “1 day effect” (91 days in 1Q04 vs. 90 days in 1Q05) and Locat securitisation effect (amounting to ~13 mln)

5

Mar04

10.79%

10.74%

INCREASED LENDING VOLUMES AND MARKET SHARE GAINS WHILE MAINTAINING PRICING PREMIUM

Retail: loan growth driven by mortgages, consumer credit and small business Corporate: up 1.4% vs Dec04 with strong contribution of m/l term (+5.22%) New Europe: +5.0% at unchanged FX with q/q increases in all banks (Pekao +2.1%,

Bulbank +14.5%, Zaba +6.2%, Koc +10.1%) Good lending spread (3.87%, up from 3.82% in Dec04) with pricing premium vs industry

(49bp)

1 Net of repos2 Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos)3 Including 3 bn mortgages securitisation

Mar05

On Total Loans 10.88%

On M/L term loans 11.133%

Dec04

10.83%

11.05%

UCI LENDING MARKET SHARE2 IN ITALYTOTAL CUSTOMER LOANS1 (bn)

Dec04

135.6 139.6

+2.8%

Corporate

New Europe +6.6%

Mar04 Mar05

126.5

Retail

3.2

12

61.1

2.0

62.9

15

58.2

63.8

+10.4%

Other +31.7%

+1.4%

50.1 56.7

14

2.7

% vs Dec04+3.0%

6

SIGNIFICANT INCREASE IN NET COMMISSIONS (+9.1% Y/Y)

115113

93

(1) Up-front on AUM and AUC referred to UniCredit Banca, UniCredit Private Banking and Xelion

Accounting data

NET COMMISSIONS (Euro mln)

Up-front(1)

Other

Weight of Up-front on Total (%)

871

13.2

1Q05

756

798

1Q04

685

14.1

4Q04

10.7

776

869

Good y/y growth mainly driven by: Fees on segregated accounts & mutual funds (excl. up-front), +33 mln Fees from investment banking activity in UBM, +25 mln

Trend q/q characterised by Increased fees from wealth management (+ 9 mln excl. up front) Lower contribution of performance fees due to seasonal effect(2) (~ –18 mln)

+9.1%

+1.8%

+10.4%

Y/Y % ch.

(2) Till year-end 2004 performance fees on long-only funds were cashed by Pioneer once a year at year-end, with a seasonal effect in 4Q. Starting from 2005 they are calculated and cashed on a quarterly basis

7

TOTAL ASSETS UNDER MANAGEMENT: AROUND 7 bn GROWTH IN JUST THREE MONTHS

UCI TOTAL AUM(bn)

Dec04

UCI mkt. share2 14.54%

… and continued gains in market share, reaching 2nd ranking

Over 3.3 bn net sales for Pioneer worldwide in 3 months (vs 1.4 bn in 1Q04)

4 months of UCI’s out-performance of the Italian market in net sales: 680 mln out of 1.2 bn for the entire System …

(2) Calculated according to the “new” classification methodology adopted by Assogestioni since January 2005

128

Mar05

135

Dec04Mar04

123

+5.2%

Leveraging on Pioneer global presence: +12 bn AUM in 12 months, of which ~7 in the international business units1

(1) US + New Markets + International (ex Italy)

No pricing pressure

Italy

International1 3438

41

89 9094

+6.5%

+4.6%

Mar05

14.67%

Apr05

14.70%

+9.4%% ch. vs Dec04

8

INCOME FROM FINANCIAL TRANSACTIONS(mln)

INCOME FROM FINANCIAL TRANSACTIONS IN LINE WITH 1Q04

Derivatives posting a strong recovery vs 4Q04 (+91.2%), mainly due to the positive seasonal effect in 1Q05 …

Of which: Derivatives

(Corporate + Institutional + Retail) 98

1Q04

292

199

4Q04

173

188

1Q05

287 -1.7%

-5.4%

… and a slight reduction vs 1Q04 (-5.4%), with stable contribution to consolidated revenues (6.9% in 1Q05)

Y/Y % ch.

9

IMPROVED COST/INCOME AT 55.4% (VS. 57% IN 1Q04)

OPERATING COSTS BREAKDOWN(mln)

Personnel costs

Other admin. Expenseso. w.: indirect taxes and duties

Depr. & amort.

1Q05

859 883

566

130

518

102

4Q04

837

475

106

1Q04

1,418

1,555 1,503 -3.3%

-8.5%

+2.8%

+6.0%

-21.5%

Q/Q trend: Operating costs down 3.3% vs. 4Q04

TOTAL COSTS

Dec04

39,85839,368

Jun04

38,941

Mar05

Staff

Other administrative expenses down 8.5% mainly due to lower marketing expenses (-18 mln)

Italy

Group 1 71,214

Q/Q % ch.

1 incl. KFS calculated on a 100% basis

70,543 70,376

-917

Y/Y growth of operating costs mainly impacted by:

higher indirect taxes and duties on other admin. expenses in 1Q05 (approx.+26% equal to 16 mln) due to the new Finance Act

increased postal and telephone tariffs (+16.1% equal to 8 mln) adjustments for 2004 MBO (16 mln) and higher provisions for the new labour contract (13 mln)

787262

10

Stated cost of risk (annualised)

Provisions on performing loans 1,376 +5.3%

Coverage ratio 0.97% +1 bp

Net Doubtful Loans 5,036 +2.8%

60 bp -3 bp

Weight on Net Loans 3.46% -3 bp

mln, where not specified

Net Non Performing Loans 2,676 +2.1%


Mar05ch. on 2004

Mar05ch. on Dec04

ASSET QUALITY: REDUCTION OF FLOWS OF NEW DOUBTFUL LOANS AND LOWER WEIGHT OF DOUBTFUL ON TOTAL LOANS

(1) Defined as: Flow from performing loans to any category of doubtful loans less Flow-back from any category of doubtful loans to performing

Limited growth of net doubtful loans (+2.8% q/q and +1.9% y/y)

Stability of coverage ratios:

Cost of risk (annualised) at 60 bp, of which 22 bp for provisions on performing loans

60.2% on NPLs (in line with Dec04)

48.1% on total doubtful (vs 48.2% as of Dec04)

1.4 bn provisions on performing loans (+70 mln vs Dec04)

4Q04 1Q05

490

NET FLOWS OF NEW DOUBTFUL LOANS1, (mln)

1Q04

508642

-3.7% Q/Q

-23.8%

0.97% on performing loans (vs 0.96% as of Dec04)

11

DIVISIONAL PERFORMANCE: GROWTH FROM ALL DIVISIONS

OPERATING INCOME BY DIVISION

y/y % ch.

543Corporate +6.5%

416Retail +40.5%

1,209TOTAL GROUP +13.0%

221New Europe +16.3%

CONTRIBUTION TO GROUP OPERATING INCOME PRE CORPORATE CENTRE AND ELISIONS

132Private & AM +32.0%

mln

17.0%

10.0%

41.3%

31.7%

RETAIL DIVISION CORPORATE DIVISION

PRIVATE & AM DIVISION NEW EUROPE DIVISION

12

RETAIL DIVISION: CONTINUED LENDING GROWTH SUSTAINING NET INTEREST INCOME GOOD PERFORMANCE

EXCELLENT LENDING GROWTH (+16.2% Y/Y) …

Mortgages +21.9% y/y (+3.9% vs. Dec04)

Consumer credit +42.5% y/y (+8.1% vs. Dec04)

Small Business +11.0% y/y (+1.2% vs. Dec04)

… AND GOOD SPREAD RESILIENCE IN ALL KEY MARKETS…

1Q average spread(1) on:

new mortgages at 1.35% for UCB (+6 bp q/q) and 1.37% for UBCasa (-6 bp q/q)

small business(2) s/term loans at 7.87% (-11 bp q/q)

revolving cards at 11.37% (+17 bp q/q)

… SUSTAINING NET INTEREST INCOME GOOD PERFORMANCE (despite the fact that 1Q05 was 2 days shorter than 4Q04)

1Q04

562

4Q04

612

NET INTEREST INCOME (ex. div.), mln

1Q05

614

(1) Management accounts(2) Management accounts, includes also maximum overdraft charges

+9.1%

13

-746 vs. June 04

RETAIL DIVISION OPERATIONAL ACHIEVEMENTS

1H04

25,467

2004

25,136

TOTAL STAFF

SLIGHT INCREASE OF OPERATING COSTS (mainly 2004 MBO adjustments and indirect taxes)

CONTINUED FOCUS ON WEALTH MANAGEMENT PRODUCTS GENERATING RECURRING REVENUES

4Q04

1.5

1Q05

1.9

SALES OF SEGR. ACCOUNTS INVESTING IN FUNDS, bn

STAFF REDUCTION WELL UNDERGOING WITH BENEFITS EXPECTED DURING THE YEAR

OPERATING COSTS, mln

FEB 05

24,721

4Q04

743

1Q05

762

EXCELLENT INCREASE IN CONTRIBUTION TO GROUP NET INCOME

CONTRIB. TO GROUP NET INCOME, mln

1Q04

127

4Q04

126

1Q05

187

14

CORPORATE DIVISION: NET INTEREST INCOME SUPPORTED BY HIGHER LENDING VOLUMES

(2) Only UBI + UBMC (Source: BankIT Matrix)

NET INTEREST INCOME (excl. dividends), (mln)

(1) Almost totally recovered as “Other income”

TOTAL LOANS (ex Repos), (bn)

Of which: M/L2

Good loan growth: around 9.0% y/y gross of securitisations, +1.4% q/q …

… with significant contribution of M/L term lending (+14.5% y/y and +5.2% q/q)

Slight reduction of lending spreads for UBI (2.27% Avg. 1Q05, -3 bp q/q)

371360 358

1Q04 4Q04 1Q05

-3.4%

-0.4% Q/Q Y/Y trend penalised by the securitisation made by Locat in 4Q04 (~13 mln1); 1Q05 in line with 1Q04 net of this effect

Q/Q trend affected by “2 days less” in 1Q05 (~6 mln only for UBI)

61.1 62.9 63.8

1Q04 4Q04 1Q05

+4.3%

+1.4% vs Dec04

23.5 25.6 27.0

+9.0% gross of securitisations

+5.2% vs Dec04

15

HIGHER SERVICE REVENUES AND IMPROVED RISK PROFILE

NET COMMISSIONS, (mln)

Foreign-trade services: 33 mln, +22.6% y/y

Transaction services: 18 mln, +7.9% y/y

Strong performance of net commissions, driven by:


Default Rate2 at 0.38% vs 0.60% in 1Q04

Net flows of net doubtful loans 33% down vs 1Q04

(1) Defined as: Flow from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans(2) Defined as: (Flows from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans)/ Total Gross In

Bonis Loans as of previous 31 December

100111

129

1Q04 4Q04 1Q05

+29.3%

+16.7% Q/Q

377

253

1Q04 1Q05

-32.8%

UBM Investment Banking activities (Equity Capital Market and Leverage Finance): 39 mln vs 14 mln both in 1Q04 and 4Q04

16

Mar05

14.67%

Dec04

14.54%

Apr05

14.70%

Poland – Invest. Funds

Increased market shares:

PRIVATE & ASSET MANAGEMENT DIVISION: CONTINUED ASSETS GROWTH LEADING TO HIGHER MANAGEMENT FEES

Significant growth of Tot. Financial Assets (+11.9% y/y & +3.1% q/q up to 179 bn)

All figures at unchanged FX

Excellent net sales:

Asset Management: 3.3 bn

Asset Gathering (UPB+Xelion): 0.7 bn, of which 0.5 bn of AM products

Italy – Mutual Funds

36.14%

(1) Assoreti perimeter

TOTAL REVENUES (mln)

Up-front fees

Management & other fees

Growth of Management fees pretty in line with Total Financial Assets, no margin pressure

34.46%

Asset Management: +10.2% y/y & +3.6% q/q up to 136 bn Asset Gathering: +11.2% y/y & 1.8% q/q, up to 67 bn

Xelion: confirmed leadership in Italy1

Performance fees

Q/Q decrease of total revenues totally due to lower up-front and performance fees2

(2) Till year-end 2004 performance fees on long-only funds were cashed by Pioneer once a year at year-end, with a seasonal effect in 4Q. Starting from 2005 they are calculated and cashed on a quarterly basis

4Q04

341312 -8.7%

+4.9%

1Q04 1Q05

280

216

136

225

42

26

236

822

+11.4%

+9.3%

Q/Q % ch.

Net Interest & other Income 45

4846

17

FURTHER EFFICIENCY GAINS SUPPORTING PROFITABILITY

All figures at unchanged FX

Operating Income:

Net income at 97 mln, +45% y/y; 35% reduction vs 4Q, which benefited from ~47 mln tax-free extraordinary gains

C/I RATIO, %

OPERATING INCOME (mln)

4Q04 1Q05

57.7

1Q04

59.864.8-210bp q/q

-710bp Improved efficiency, thanks to:

Leverage on economies on scale

Cost control: 1Q05 operating costs at 180 mln, in line with 1Q04 and 12% lower than 4Q04

4Q04 1Q05

132

1Q04

13798

-4.3% q/q

+33.4%

Excellent y/y performance: +33.4%

Slight q/q decrease directly linked to lower up-front and performance fees

18

STRONG LENDING GROWTH: +15.9% Y/Y (+24.1% at current FX)

INCREASED MUTUAL FUND BUSINESS WITH POSITIVE IMPACT ON REVENUES

All figures stated at unchanged FX

(1) Management accounts in LASITAS

Mortgages(1) (Euro mln) Leasing (Euro mln) Consumer credit(1) (Euro mln)

Mutual Funds(2) (Euro mln) Net non interest income

(Euro mln)Market share (PPIM(3))

NEW EUROPE DIVISION: STRONG VOLUME GROWTH SUPPORTING REVENUES

(3) Pioneer Pekao Investment Management

(2) New Europe Business Area of Pioneer is included at current FX

1Q05

2,139

4Q04

2,2031,753

1Q04 1Q05

398

4Q04

439299

1Q04 1Q05

1,557

4Q04

1,6241,297

1Q04

1Q05

4,865

4Q04

5,6164,179

1Q04 1Q05

179

4Q04

183167

1Q04 1Q05

34.5

4Q04

36.131.9

1Q04

+25.7% +46.6% +25.2%

+34.4% +10.0% 4.2 pp

19(1) 1Q05 data annualised

ASSET QUALITY STILL IMPROVING

NET INCOME BENEFITS FROM LOWER PROVISION NEEDS

BETTER OPERATING INCOME: +12.1% Q/Q, +8.3% Y/Y

ITAS

Total Revenues (Euro mln) Cost/income (%)

Cost of risk(1) (bp) Coverage ratio of doubtful loans

Attributable Net income (Euro mln)

STRONG NET INCOME, ENHANCED EFFICIENCY AND BETTER ASSET QUALITY


1Q05

481

4Q04

475442

1Q04

1Q05

70.7

4Q04

71.966.0

1Q04

1Q05

99

4Q04

10386

1Q04

1Q05

58.8

4Q04

53.553.8

1Q04

1Q05

89

FY04

78

Net Provisions on loans (Euro mln)

1Q05

26

4Q04

2936

1Q04

+19.8%-19.8%

-11 bp +5.9 pp

-0.3 pp+7.5%

20

THE ACQUISITION OF YAPI REPRESENTS A FURTHER STEP FORWARD, ALLOWING KFS TO REACH A SIGNIFICANT POSITION IN A LARGE HIGH-GROWTH COUNTRY

UCI entered the Turkish market in October 2002 via a JV: Turkey was at the time among the NE countries with lower presence of foreign banks (~7% of total assets)

Since the JV, KFS:

Implemented a thorough client segmentation

Upgraded its IT system

Acquired over 400,000 new clients

Opened 40 new branches, increasing its network size by 28%

Achieved positive results with ROE steadily at ~ 25% and Cost / Income < 45%

KFS is currently the 8th Turkish bank by total assets, 3rd in Asset Management and market leader in Leasing and Factoring

UCI IN TURKEY: TIMELY ENTRANCE, SUCCESSFUL JOINT VENTURE NOW AIMING AT LEADERSHIP WITH THE ACQUISITION OF YKB

21

YKB: STRATEGIC RATIONALE

Significant scale (top three privately owned banking groups in Turkey)

Successful experience of UCI’s partnership with Koç Group

Strong operational fit with KFS: distribution and production platforms with leading positions in most strategic business areas

KFS & YAPI WILL CREATE:

1ST IN CREDIT CARDS

1ST IN ASSET MANAGEMENT

1ST IN LEASING

1ST IN FACTORING

3RD PRIVATELY OWNED BANK IN TURKEY BY ASSET SIZE

3RD BY DEPOSITS

Acquisition in a large country with substantial growth potential

22

KFS (50/50 UCI- Koc Group) to acquire 57.42% of Yapi from Çukurova

KFS, after deal closing and the relevant approval, will launch a tender offer for all YKB remaining shares

Terms of the offer:

Price for 57.42% Euro 1,160 mln (implied value for 100%: 2,021mln), subject to price adjustment for the market value of the participation of Turkcell at the time of closing

Çukurova to restructure its exposure to YKB, to be given the right to acquire YKB participation in Turkcell and to purchase YKB stakes in Fintur, Digiturk and Superonline

Offer subordinated to the approval of all relevant authorities and realisation of certain condition precedents

YKB: DEAL STRUCTURE

1Q05 RESULTS - ANNEXES

24

AGENDA

Group

Divisional Reporting

Retail Division

Corporate Division

Private & AM Division

New Europe Division

25 (1) Net write-downs of financial investments, provisions for risks and charges,

provisions for possible loan losses and provisions to reserve for general banking risk

1Q05 CONSOLIDATED INCOME STATEMENT

Net extraordinary income

Net non interest income

Total revenues

Operating income

Provisions on loans

Administrative costs (incl. depr.)

Other net provisions(1)

Goodwill depr.

(Euro mln)

Minorities

Taxes

% ch. on 1Q04

Net interest income (incl. div.)

- of which Dividends

+9.1

+9.0

+11.5

n.m.

+6.0

+13.0

n.m.

-1.4

+23.7

+17.6

+8.9

% ch. on 4Q04 1Q05

1,413

2,712

-1,503

1,209

-214

207

-44

-70

-47

-348

1,299

25

+10.6

+1.2

-7.4

n.m.

-3.3

+7.6

n.m.

+14.8

+38.2

n.m.

-7.3

-74.5 n.m.

Net income +48.7693 +10.5

26

Retail Division

Corporate Division

Priv.& AM Division

NE Division

Total Group(1)

Total revenues+1.8% +17.5% -3.8% -10.1% +1.2%

Operating costs

Operating income

Net write-downs of loans

Net income for the Group

C/I Ratio

+2.6% -4.7% -6.7% -18.1% -3.3%

+0.5% +29.6% +0.8% +1.1% +7.6%

-0.6% -8.3% n.m. -2.8% -7.4%

+48.5% +17.8% -32.2% -1.9% +10.5%

+0.5 pp -6.8 pp -1.9 pp -5.2 pp -2.6 pp

(1) Balance due to the Parent Company, other Group companies and elisions

(2) Calculated on data at end of period FX

(Euro mln - Data at end of period FX)

DIVISIONAL CONTRIBUTION TO CONSOLIDATED RESULTS IN 1Q05

1,178 764 312 475 2,712

-762 -221 -180 -254 -1,503

417 543 132 221 1,209

-84 -96 0 -29 -214

187 251 97 103 693

64.7% 28.9% 57.7% 53.4% 55.4%

(3) Including all the employees of Koc Financial Services (4,134 as at 31.03.2005)

Employees(3) 24,721 5,269 3,574 29,778 70,376

1Q05 RESULTS

% Change vs 4Q04(2)

% Change vs 4Q04(2)

% Change vs 4Q04(2)

% Change vs 4Q04(2)

% Change vs 4Q04(2)

Change in pp vs 4Q04(2)

27

NON OPERATING ITEMS

Operating income

Goodwill amort.

Net Income



Net extraord. income

Taxes

Minorities

4Q04

1,124

-61

627

-231

-221

61

-141

-34

1Q04

1,070

-71

466

-192

-9

2

-296

-38

1,209

-70

693

1Q05

-214

-44

207

-348

-47

(1) Net write-downs of financial investments & provisions for risks and charges

Reserve for general bkg risk +130 --

28

-on tot. Gross doubtful loans, % 38.2% 35.3% 48.2%70.8%38.6% 33.5% 71.9% 48.1%

-on total gross NPL, % 48.7% 40.1% 84.8% 60.2%48.7% 39.5% 85.1% 60.2%

Total gross doubtful loans 3,536 2,722 3,040 9,469+0.2% +2.4%

Net Doubtful Loans/Tot. Net Loans,% 3.49%3.86% 2.60% 6.32%

3,620

3.82%

+2.4% +5.0%2,858

2.73%

3,047

5.71%

9,695

3.46%

% change on Dec 04

Gross Doubtful Loans/Tot. Gr. Loans,% 6.47%6.06% 3.93% 18.5%6.04% 4.01% 17.5% 6.40%

Total net doubtful loans 2,185 1,762 888 4,901-3.7% +2.8%

2,223+1.7% +7.9%

1,901 855 5,036% change on Dec 04

ASSET QUALITY: DETAILS BY DIVISIONS

Coverage ratios

Retail Division

Dec 04 Mar 05

1 Balance due to other Group companies

(mln - Data at end of period FX)

Corporate Division

NE Division Total Group 1

Gross NPL

% change on Dec 04

Gross NPL/Tot. Gr. Loans,%

Net NPL/Tot. Net Loans,%

2,153 1,8582,45

06,586

+1.6% +2.0%

3.69% 2.68% 14.9% 4.50%

1.95% 1.65% 2.66% 1.87%

2,236

3.73%

1.97%

+3.8% +0.4%

1,866

2.62%

1.62%

2,489

14.3%

2.48%

6,716

4.43%

1.84%

Net NPL

% change on Dec 04

1,105 1,114 373 2,621

-0.5% +2.1%

1,146

+3.8% +1.4%

1,130 371 2,676

Dec 04 Mar 05 Dec 04 Mar 05 Dec 04 Mar 05

29

Group


Retail Division

Corporate Division


New Europe Division

AGENDA

30

RETAIL DIVISION: P&L

Interest income (incl. div.)


Total revenues

Operating costs (incl. dep.)

Net operating income

Net income

Cost/income ratio, %

Q/q% ch.

1Q05

Net provisions

mln

Net income for the Group(2)

Y/y% ch.

- of which: Staff costs

- of which: Other adm. expenses

- o/w: Net write-down of loans

627

552

1,178

-762

417

188

64.7

187

-403

-342

-84

-95

+2.1

+1.6

+1.8

+2.6

+0.5

+48.4

+46 bp

+48.5

+3.9

+2.3

-0.6

-13.4

+11.4

+21.7

+16.0

+5.9

+40.5

+47.7

-616 bp

+47.7

+4.5

+9.0

+50.3

+52.2

Net extraordinary income (loss) -1 n.m. n.m.

31

Interest income (incl. div.)


Total revenues



Net income

Cost/income ratio, %

TOTAL(1)Banca d. Umbria

UniCredit Banca

Net provisions

mln


UBCasa


- of which: Other costs

Clarima

RETAIL DIVISION: 1Q05 RESULTS BREAKDOWN BY COMPANY

- o/w: Net write-down of loans

512

513

1,025

-695

330

143

68.0

140

-375

-305

-61

-71

28

18

46

-25

21

10

53.7

10

-13

-11

-3

-4

32

2

34

-17

17

7

49.5

8

-6

-11

-7

-7

36

13

49

-17

32

12

35.0

12

-5

-12

-13

-13

(1) Balance due to rounding and elisions of infragroup dividends and goodwill amortisation

CR Carpi

9

6

15

-8

7

4

56.2

4

-4

-4

-

-

(2) Net of consolidation adjustments and minorities

Net extraordinary income (loss) -1 - -1 - -

627

552

1,178

-762

417

188

64.7

187

-403

-342

-84

-95

-1

32

1.2 1.4

RETAIL DIVISION - MORTGAGES AND CONSUMER FINANCING

RESIDENTIAL MORTGAGESSTOCK, bn NEW FLOWS, bn

CONSUMER FINANCING1Q04 1Q05

27.5

33.5 +21.9%

NEW FLOWS OF PERSONAL LOANS, mln

1Q04 1Q05

52 mln66 mln

REVOLVING CARDS TOTAL SPENDING(2) (+67k revolving cards in 1Q05)

DEC04

32.2

mkt share(1)

17.40%17.71% 17.75%

(1) Group market share, related to mortgages to households as of Bank of Italy definition in table TDME0070 of the monthly bulletin

(2) POS and ATM spending

1Q04 1Q05

183

350

+91%

1Q04 1Q05

1.81.8

+3.4%

0.50.5

UCB

UBCasa

+12.6%

-13.5%

STOCK, bn

1Q04 1Q05

2.1

3.0+42.5%

DEC04

2.8

33

RETAIL DIVISION - SMALL BUSINESS STOCK, SPREAD AND CUSTOMER ACQUISITION

STOCK, bn

1Q052004

SHORT TERM SPREAD(1)

1Q04

(1) Management accounts, includes also maximum overdraft charges

16.6 16.8

+1.2% 8.08%7.96%

2Q04

7.98%

3Q04

7.98%

4Q04

7.87%

1Q04

18,000

2Q04

19,000

3Q04

15,000

4Q04

17,500

QUARTERLY TRENDS IN SMALL BUSINESS CUSTOMER ACQUISITION

1Q05

1Q05

17,000

34

RETAIL DIVISION - CUSTOMER LOANS AND CUSTOMER DEPOSITS BREAKDOWN AND DETAILS OF SHORT TERM SPREADS

SB loans (1)

Residential mortgages (2)

Cons. creditOther loans

EOP LOANS, Euro bn

UCB AVG. MARK UP(4) (Households), %

Other deposits

Households c/accounts

Bonds

EOP DEPOSITS, Euro bn UCB AVG. MARK-DOWN(4) (Households), %

4Q041Q04

4Q041Q04

+8.1%

(1) Includes short term and m/l term loans(2) Includes only households mortgages

+17.3%

+9.7%

+31.8%-6.4%

+5.8%

-2.0%

+7.7%

50.1

27.5

15.1

2.15.4

64.1

21.5

15.4

27.2

UCB AVG. MARK UP(4) (Small Business), %

7.03

1Q04

1.65

5.60

1Q05

1Q05

58.2

66.9

33.5

21.8

16.8

3.04.9

15.7

29.4

+13.1%

+3.9%

+1.2%

+8.1%-2.7%

-4.5%

+4.4%

+0.5%

+4.7%

7.08

2Q04

1.65

5.47

(3) Including ANBI(4) Source: Bank of Italy matrix data

56.7

67.2

32.2

22.8

16.6

2.85.0

15.1

29.3

7.33

3Q04

1.67

5.55

-0.3%

7.21

4Q04

1.71

5.42

1Q04 2Q04 3Q04 4Q04

1Q04 2Q04 3Q04 4Q04

7.27

1Q05

1.70

5.43

1Q05

1Q05

35

RETAIL DIVISION - NET COMMISSIONS

RETAIL DIVISION: NET COMMISSIONS

mln

Securities in custody

TOTAL RETAIL DIVISION

Total Commissions from Wealth Management

- Mutual funds (1)

- Segregated Accounts (2)

Other services

- Insurance Products (3)

Breakdown by nature

(1) Includes subscription and management fees from Plain Vanilla Mutual Funds(2) Includes management fees related to underlying Mutual Funds. Net commissions related to Focus Invest do no impact consolidated results

Y/y% ch.

+65.3

+27.9

+20.4

-24.3

n.m.

+19.0

+4.2

1Q05

89

386

179

45

53

119

81

(3) Includes management fees related to underlying Mutual Funds

Q/q% ch.

-9.2

+0.1

+12.3

+18.0

+17.6

-8.0

+6.3

36

RETAIL DIVISION - DETAILS ON ASSET QUALITY

Provisions on performing loans 327 +3.6%

Coverage ratio 0.58% - bp





Weight on Net Loans 1.97% +2 bp

Cost of risk(1) 58 bp +8 bp

1Q05ch. on

Dec. 04

1Q05ch. on 2004

(1) Annualised

-16.4%

1Q04 1Q05

240

200

REDUCTION OF NET FLOWS OF NEW DOUBTFUL LOANS(2) VS. 1Q04

(2) Defined as: Flow from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans

37

Group


Retail Division

Corporate Division


New Europe Division

AGENDA

38

CORPORATE DIVISION: 1Q05 INCOME STATEMENT- BREAKDOWN BY COMPANY

Net Interest income (incl. div.)


Total revenues



Net income

TOTAL1UBI

Net provisions

(Euro mln)

Net income for the group


- of which: Other admin. expenses

Other companies

- o/w: Net write-downs of loans

322

145

467

332

-57

-77

-135

129

128

28.9%Cost/income Ratio

-90

-112

UBM LOCAT

-13

219

206

151

-24

-29

-56

92

92

27.0%

-

-

33

25

58

44

-5

-8

-13

21

21

23.1%

-7

-7

20

13

33

16

-10

-8

-17

9

11

51.6%

-

-1

362

402

764

543

-95

-122

-221

251

251

28.9%

-96

-121

1 Balance due to roundings and elisions of infragroup dividends and goodwill amortisation

39

CORPORATE DIVISION: 1Q05 INCOME STATEMENT



Total revenues

Operating costs (incl. depr.)

Operating income

Net income

Total net provisions

Taxes


Cost Income ratio, %

(Euro mln) 1Q05/4Q04 % ch. 1Q05

764

-221

543

-171

28.9%

-121

251

251

362

402

1Q05/1Q04 % ch.

+17.4

-4.7

+29.6

n.s.

-666bp

-22.9

+17.3

+20.1

-0.8

+40.6

+5.5

+3.3

+6.5

+6.2

-61bp

+13.1

+4.1

+3.7

-2.7

+14.2

40

CORPORATE DIVISION - DETAILS ON ASSET QUALITY

1Q05ch. on 2004

Provisions on performing loans 747 +7.2%

Coverage ratio 1.09% +4 bp


Cost of risk (annualised) 56 bp -14 bp

Weight on Net Loans 2.73% +13 bp




Mar05ch. on Dec04

(1) Defined as: Flow from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans


377

253

1Q04 1Q05

-32.8%

41

(Euro mln)

Net interest income 322


Cost Income RATIO, %

128

28.9%

Net non interest income 145

Total revenues

Operating costs

Operating income

467

-135

332


Other net provisions

-90

-22

Of which:

97

- Trading profits 47

- Net commissions

UNICREDIT BANCA D’IMPRESA: 1Q05 INCOME STATEMENT

1Q05/4Q04 % ch. 1Q05 1Q05/1Q04

% ch.

-1.3

-3.0

+43 bp

-7.0

-3.1

-1.7

-3.7

-10.2

-54.5

-5.4

+15.6

+0.8

-3.1

+13 bp

+5.4

+2.2

+2.6

+2.0

-9.7

n.s.

+7.2

+3.1

42

UBM: 1Q05 INCOME STATEMENT

(Euro mln)

Total revenues

Staff costs

Other costs (incl. depr.)

Operating income

Net income

C/I Ratio

206

-29

-26

151

92

27.0%

Net extraord. income 1

Taxes -59

1Q05/4Q04 % ch. 1Q05 1Q05/1Q04

% ch.

+156.8

+24.8

-26.3

n.s.

n.s.

vs. 73.6%

-91.1

n.s.

+8.7

+2.7

+1.2

+11.4

+11.2

-177 bp

-59.1

10.2



-13

219

-16.3

+129.2

+68.9

+11.0

Avg. daily VAR 1

1 Pls. note that the comparison with 1q04 is not significant as UBM did not included TradingLab, merged in UBM from July 1st, 2004

3.6 -8.1 n.s.

43

Group


Retail Division

Corporate Division


New Europe Division

AGENDA

44

PRIVATE & AM DIVISION: 1Q05 INCOME STATEMENT – BREAKDOWN BY COMPANY



Total revenues


Operating income

Net income

Cost/Income Ratio




- of which: other admin. expenses

(Euro mln)


TOTAL DIVISION1

27

285

312

-180

-86

-88

132

-2

100

97

57.7%

-

UPB +

Subsidiaries

18

67

85

-55

-33

-21

30

-1

27

13

64.4%

10

4

202

206

-94

-48

-44

112

-

62

8645.8

%

-

3

15

19

-29

-5

-23

-11

-1

-9

-7

n.s.

-

PGAM Group UniCredit Xelion Banca

2

1

3

-2

-1

-1

1

-

20

5

n.s.

-10

Other Companies

1 Balance due to roundings and elisions of infragroup dividends and goodwill amortisation

45

PRIVATE & AM DIVISION: 1Q05 INCOME STATEMENT



Total revenues

Operating costs (incl. depr.)

Operating income

Net income


Taxes


Cost Income ratio, %

1Q05/4Q04 % ch. 1Q05

312

-180

132

-30

57.7%

-2

97

100

27

285

1Q05/1Q04 % ch.

-8.7

-11.6

-4.3

+86.4

-193 bp

-95.2

-34.8

-33.5

-0.8

-9.4

+11.4

-0.5

+33.4

+4.5

-695 bp

+12.9

+44.9

+47.4

+7.7

+11.8

(Euro mln - Data at current FX, % ch. at fixed FX)

46

PRIVATE & AM DIVISION: DETAILS ON TOTAL FINANCIAL ASSETS Y/Y AND Q/Q TRENDS

(bn - Data at end of period FX)

Securities in custody

Direct deposits1

AUMs

PRIVATE & AM DIVISION TOTAL FINANCIAL ASSETS

+3.9% q/q

Mar04

5.8

25.6

129.6

6.9

29.3

135.7

161.0171.9

6.8

29.9

141.9

178.6

Dec04 Mar051 Including Repos

+10.9%

+11.9% at fixed FX

+3.1% q/q at fixed FX

471 Balance due to roundings

Italy

New Markets

92,809

3,885

TOTAL PIONEER

Alternative Investments

129,614

3,830

2,356

382

3,331

213

US 25,032 -25

International (ex-Italy) 7,889 617

AuM as at 31.12.2004

US in USD 34,096 -31

96,417

4,358

135,587

4,166

25,947

8,864

AuM as at 31.03.20051

33,638

AuM as at 30.4.20052

97,123

25,327

8,641

4,266

135,357

4,226

32,816

1Q05 Net sales

PIONEER GROUP: DETAILS ON NET SALES AND AUM TREND (Dec04-Apr05)

2 Provisional figures; balance due to Market Performance (including FX effect)

1,253

91

2,642

123

940

358

-428

156

74

212

143

-103

85

-133

Net sales Apr.05

1Q05 Mkt. Perf. (mln - Data at end of period FX)

48

Finanza & Futuro

Rasbank

Credem + Euromob.

7,049Credem + Euromob.

1 Calculated on average PFAs2 AUMs, Securities in Custody, Bancassurance and liquidity3 Ranking taking into account only the 10 major Italian players by Total Financial Assets as at 31.3.20054 Including Banca Generali + SIMGENIA Sim

Source: Assoreti

Net Inflows:455 Mln,2nd in Italy

Data as at 31.3.2005 – Mln

TOTAL NET INFLOWS 2 & 3

Xelion 455

354

Generali Group4

319

268

Credem + Euromob. 119

Rasbank

78Fineco

66

Finanza & Futuro -44

Fideuram + SPI

-28

Data as at 31.3.2005

2,023 PFAs,5th in Italy

NUMBER OF PFAs

Fideuram + SPI

4,966

Rasbank

4,207

4,015

Generali Group4

3,723

Finanza & Futuro 1,122

1,076

Tot. Fin. Assets:~12.6 bn,5th in Italy


TOTAL FINANCIAL ASSETS

Fideuram + SPI 59,887

Mediolanum 21,454

Rasbank 20,367

9,206Azimut

7,843

Credit Suisse 7,1235

Xelion 12,565

16,055

Fineco 6,632

Net Inflows per PFA1:2rd among Top-

Players


NET INFLOWS PER PFA 2 & 3

Azimut 0.30

Xelion 0.22

0.11Credem + Euromob.

0.09

0.08

Generali Group4

0.08

Finanza & Futuro

0.02

-0.04

Fideuram + SPI

-0.09

Mediolanum

0.05

ASSORETI PERIMETER, RANKING BY GROUP: XELION, STRONG NET SALES (17.2% MARKET SHARE) AND HIGH PRODUCTIVITY PER PFA

Mediolanum

Xelion 2,023

Banca SAI 1,471

Azimut

Generali Group4

Fineco 1,451

Bipielle Network 1,168

Fineco

Credit Suisse

459

Mediolanum

Credit Suisse

5 Data as of 31.12.2004 (data as of 31.3.2005 not disclosed)

49

Group


Retail Division

Corporate Division


New Europe Division

AGENDA

50

Tax Rate (%) -4.2 pp21.2 +2.1 pp

ROE (%)

Cost/Income ratio (%) -0.3 pp53.5 -5.3 pp

17.0 +0.9 ppy/y ch.

2.9%(1)

2.1%(1)

(Euro mln)

Net interest income(2)


Total revenues

Operating Costs(3)

Operating income

Net write-down of loans


Net income


Taxes

(4) Including provisions to reserve for general banking risk

(2) Including dividends(3) Including depreciation

%ch. at unchanged FX

7.3%(1)

41.4%(1)

21.0%(1)

20.9%(1)

(1) Weight of the bank Total Revenues in 1Q05 on Division Total Revenues – only UCI’s portion; balance due to UniLeasing Romania and Xelion Poland


NEW EUROPE DIVISION % ch. on 1Q04

+6.2

+10.0

+7.5

+6.7

+8.3

-19.8

-

+18.1

n.m.

-4.7

+19.83.8%(1)

BREAKDOWNOF REVENUES

ITAS

1Q05

292

183

475

-254

221

-29

3

150

-5

-41

103

% ch. on 4Q04

-3.4

+3.0

-1.0

-10.2

+12.1

+11.4

-86.2

+4.0

-67.5

+18.8

+6.2

NEW EUROPE DIVISION: 1Q05 INCOME STATEMENT

51

NEW EUROPE DIVISION: 1Q05 TREND IN VOLUMES

ITAS

% ch. on

Dec04

Mar05(Euro mln)

% ch. on

Mar04

Net Customer Loans

- o/w Pekao

Mortgages(1)

+5.0

+2.1

+15.9

+6.4

+3.0 +25.7

14,987

6,395

2,203

- o/w Pekao LC +6.3 +71.3600

- o/w Pekao

Mutual Funds(2)

+1.3 -5.8

+15.4 +34.4

Deposits -0.4 +4.323,200

10,819

5,616

- o/w Pekao(3) +13.3 +30.63,612

NET CUSTOMER LOANS 1Q05/4Q04: Bulbank +14.5%, KFS

+10.1%, Zaba +6.2% Mar05/Mar04: Bulbank +77.3%, KFS

+47.0%, Zaba +14.5%

(3) Pioneer Pekao Investment Management

At unchanged FX

MUTUAL FUNDS in PEKAO: Market share(3): to 36.1 up 4.2 pp y/y

(1) Management accounts in LAS

(2) New Europe Business Area of Pioneer is included at current FX

52

NEW EUROPE ASSET QUALITY

Net NPLs and Doubtful Loans as % of Total Net Loans 84.8

Dec04 Mar05

85.1

70.8 71.9

Coverage ratios

On Gross Doubtful Loans

On Gross NPLs

Net NPL/ Loans %

Mar05

Total NE -0.62.5

ch. on Dec04 (pp)

Net Doubtful/Loans %

Mar05

ch. on Dec04 (pp)

5.7-0.2

At unchanged FX

Zaba -0.31.9 2.9-0.2

Unibanka -0.43.0 5.5-0.1

Pekao -0.63.6 7.3-0.1

Bulbank 0.1 -0.21.5-

KFS -0.82.0 4.5-0.6

Cost of risk(1)

-11 bp

(bp, annualised)

89

78

1Q05FY04

(1) Calculated as Net Loan Loss Provisions on Net Customer Loans at period-end. 1Q05 data annualised

ITAS

53

Interest margin (incl. div.)


Total revenues



Net income

ROE

Cost/income

TOTAL(1)

292

183

475

-254

221

150

17.0%

53.5%

Net provisions -33

(1) Balance due to roundings and other small companies

(Euro mln)

(UCI stake)

Net income(3) (UCI’s portion) 103

- of which: Staff costs -129

- of which: Other costs -89

NEW EUROPE DIVISION: 1Q05 RESULTS BREAKDOWN BY BANK

- o/w: Net write-down of loans -29

UNI BANKA (77.2%)

5

7

12

-9

3

4

16.7%

76%

-1

3

-5

-4

-1

BULBANK (86.1%)

18

10

28

-9

19

19.3%

33%

-3

14

12

-4

-3

-2

Group PEKAO (53.0%)

140

114

255

-138

116

16.7%

54%

80

-15

46

-71

-48

-15

63

20

83

-49

35

23

13.3%

58%

-6

19

Group ZABA

(81.9%)

-27

-15

-3

5

2

7

-6

1

1

7.1%

86%

-3

-3

-

1

-

52

16

68

-28

40

22

23.9%

42%

-14

-11

-8

22

KFS(2) (50.0%)

-7

(2) Consolidated with proportional method (50%)

8

5

13

-10

3

1

4.7%

78%

-5

-4

-1

1

Zivno (96.6%)

-1

UniCredit Romania (99.9%)

ITAS

Banks’ data gross of consolidation adjustment

(3) Net of consolidation adjustment

54

NET INCOME FOR THE GROUP

y/y % ch.

46Pekao +20.9%

19Zaba -21.7%

NE Division

22KFS +61.2%

16Others +56.4%

STRONG NET INCOME GROWTH AND VALUE OF A DIVERSIFIED PORTFOLIO

PEKAO Significant lending growth: +6.4% y/y, +2.1% q/q (o/w

mortgages(1) +71% y/y, +6.3% q/q), with positive impact on net interest income (+1.4% y/y)

Strong performance in Mutual Funds(2): +30.6% y/y, +13.3% q/q with even higher market share (to 36.1%(4))

Good cost management: +0.5% y/y

Decreased cost of risk: to 94 bp(5), -25 bp on FY04

ZABA Net income (-5 mln y/y) mainly due to pressure on spreads,

new accounting for up-front fees, and FX loss linked to Kuna appreciation (+3% in 1Q05)

Further lending growth: net loans +14.5% y/y, +6.2% q/q (o/w mortgages(6) +17.6% y/y, +1% q/q)

Improvement in Mutual Funds: +74% y/y, +21% q/q

KFS Strong lending growth: net loans +47.0% y/y, +10.1% q/q

Lower negative impact of monetary loss (+9 mln y/y)

Focus on retail products: Mutual Funds +6% y/y, +7% q/q; ~59,000 cards and ~8,000 C/A packages sold in 1Q05

(1) Management accounts in LAS, only LC(2) Pioneer Pekao Investment Management


103 +19.8(3)%

(3) +25.9% at current FX

(4) Pioneer Pekao Investment Management (5) 1Q05 data annualised(6) Management accounts in LAS, only bank

55

% ch. on 1Q04(4)

+2.2

+0.6

+1.5

+.5

+2.7

-36.6

n.m.

+12.5

n.m.

+6.5

+20.9

-0.9 pp

1Q05

140

114

255

-138

116

-15

-

80

-

-22

46

21%

% ch. on 4Q04(4)

-5.8

-3.6

-4.9

-4.7

-5.1

-26.4

n.m.

-12.5

n.m.

+0.6

+12.3

+2.2 pp

-52 bp54% +11 bp

CONSOLIDATED INCOME STATEMENT: PEKAO


(1) Including dividends(2) Including depreciations

(4) At unchanged FX

(Euro mln)



Total revenues

Operating costs(2)

Operating income



Net income


Taxes

ITAS

Data gross of consolidation adjustment


(5) Net of consolidation adjustment

Cost/Income

Tax Rate

56


(1) Including dividends(2) Including depreciations

(4) At unchanged FX

CONSOLIDATED INCOME STATEMENT: ZAGREBACKA

ITAS

(Euro mln)



Total revenues

Operating costs(2)

Operating income



Net income


Taxes


% ch.(4) on 1Q041Q05

63

20

83

-49

35

-3

-

23

-2

-6

19

% ch. on 4Q04(4)

-20.2

-5.5

-17.1

-13.6

-21.4

n.m.

n.m.

-40.3

-54.7

-42.2

-40.1

+0.2

-21.2

-6.0

+3.2

-16.7

-47.5

n.m.

-22.4

n.m.

-10.7

-21.7

Data gross of consolidation adjustment (excluding Net Income for the Group that is net)

57

TURKEY: POSITIVE OUTLOOK, PROGRESS ON EU RELATIONS

Population: 72.4 mln (2004)

Indebtedness of Individuals: 7% of GDP (2004f)

S&P country rating: BB-/Stable

Real GDP y/y % growthInflation (CPI) y/y, DecInflation (WPI), y/y, DecReference rate (eop)Exchange Rate (eop)

8.99.3

13.818.0

1.8321

2004

6.08.08.0

13.51.8657

2005f

Source: NE division research network

Loans -o/w retail-o/w corporate

52.1107.742.9

2004e

35.354.429.7

2005f

Deposits -o/w retail-o/w corporate

25.623.534.9

18.617.023.3

Mutual Funds 22.2 35.6

Strong growth driven by investment and personal consumption

Disinflation process will continue

Monetary policy will be accommodating with rate cuts

Loans mainly driven by declining interest rates; Deposits mainly driven by Corporate side

MACROECONOMIC DATA BANKING SECTOR

y/y % growth

1q05 consolidated results alessandro profumo - ceo

Documents

bn net sales

bn growth

ppgood performance of

bn aum

good yy growth

vs dec04

months vs

net of repos2 source