9m05 consolidated results alessandro profumo - ceo milan - november, 10 th 2005

9M05 CONSOLIDATED RESULTS

Alessandro Profumo - CEO

Milan - November, 10th 2005

2

3Q05 ACHIEVEMENTS(1): EXCELLENT PERFORMANCE BASED ON GOOD QUALITY REVENUE GROWTH AND COST CONTROL

Operating income: 1,295 mln, +25.8% y/y based on total revenues up 14.0% y/y and limited cost increase (+2.8% y/y(2))

Outstanding results in asset management:

AuM: 152 bn (+18.9% on Dec04)

Net Sales: 7.8 bn in 9M05 vs 2.4 bn in 9M04

Mutual Funds market share in Italy: 15.30% in Oct05 vs 14.54% in Dec04

Strong net income:

622 mln in 3Q05 (+36.7% y/y), 676 in IAS

1,923 mln in 9M05 (+27.9% y/y), 2,118 in IAS

Improving Asset Quality(3):

Limited increase of net doubtful loans (+1.1% on Jun05)

Improved coverage ratios on tot. doubtful loans (57.1% in Sep05 vs 56.5% in Jun05)

(2) Calculated on operating costs net of recovered taxes. Data at constant FX

Revenues supported by core commercial banking business and wealth management:

Double-digit growth in net interest income (+11.9% y/y)

Strong increase in net commissions (+24.4% y/y)

(3) Data in IAS

(1) Italian GAAP

3

SOLID 3Q05 RESULTS, EXCELLENT Y/Y GROWTH

Total Revenues

(ITAS, mln)

8,446

1,923

52 bp

+9.7%

+27.9%

-11 bp

Operating Income

Net Income

9M05 Y/Y ch.

3,851 +16.4%

54.4%C/I Ratio, %

7.79% -16 bpTier I ratio

Cost of Risk, bp(2)

(1) 2004 data calculated excluding IAS 32 & 39

Ch. on FY04

9M05

34.4%Tax Rate, %

-2.6 pp

-0.9 pp

2,842

622

3Q05

1,295

54.4%

35.2%

-1.7%

+2.1%

% ch. on 2Q05

-3.8%

+1.0 pp

-0.9 pp

+14.0%

+36.7%

% ch. on 3Q04

+25.8%

-4.3 pp

+0.9 pp

Normalized for Fiat Convertendo (~180 mln)(3); stated figure at 36 bp

(3) Conversion of Convertendo FIAT at the end of September determined approx. +180 mln write-back of loan-loss provisions (made in the past) and a simultaneous write-down of the FIAT stake for approx. the same amount

53.2%C/I Ratio IAS, % -2.6(1) pp 53.2% n.a. -4.0(1) pp

59 bp n.a.Cost of Risk IAS, bp(2)

(2) 9M05 data annualised

4

Recognition of loans time value under IAS

Convertendo FIAT: different classification between IAS and ITAS (~180 mln)

Mark to market of AFS portfolio (mainly in NE) accounted in the P&L in ITAS and directly against net equity under IAS

3Q05 RESULTS IAS VS. ITALIAN GAAP

(mln) 3Q05 ITAS

3Q05 IAS

Net income 676 622

Total revenues 2,803 2,842

Administrative costs (incl. depr.) -1,492 -1,547

Gross operating profit 1,311 1,295

Profit/loss & net writedowns on loans -192 22

- o/w net interest income (excl. div.) 1,376 1,361

- o/w net commissions 1,111 954

- o/w trading income 227 208

Profit/loss & net writedowns on invest. 27 -179

Goodwill depreciation - -78

Fees on current accounts’ deposits accounted in other income in ITAS while in net commissions in IAS

No goodwill amortization in IAS

Recovered expenses accounted in other income in ITAS while in costs in IAS

MAIN DIFFERENCES

5

NET INTEREST INCOME UP BOTH Q/Q AND Y/Y

NET INTEREST INCOME excl. Dividends (mln)

3Q04 ITAS

New Europe

Italy

1,217

943

274

2Q05 ITAS

1,286

973

309

1,361

1,027

334

3Q05 ITAS

Comments on quarterly trend

Italy: good volume effect coupled with slight lending spread pressure, in line with the entire system

Good volume growth in retail division in all segments

Corporate division benefiting from higher avg. lending volumes and better deposit spread in UBI

New Europe: +7.1% at constant FX, sustained by strong volume growth (+4.2% at constant FX vs. June 05)

+5.9%

+5.5%

+8.1%

+11.9% Q/Q % ch.

3,974

3,065

909

9M05 IAS

1,376

1,056

320

3Q05 IAS

9M04 ITAS

9M05 ITAS

+8.4%

+6.3%

+15.9%

2,813

803

3,921

2,990

931

Y/Y % ch.

3,616

6

5.014.4

4.2

17.116.34.7

DEC 04

10.83%

11.05%

INCREASED LENDING VOLUMES IN ALL DIVISIONS AND STABLE MARKET SHARES

Retail: loan growth driven by mortgages, consumer credit and small business

Corporate: up 7.5% vs Dec 04 with good contribution of m/l term (+7.6% (2) vs Dec 04)

New Europe: +14.7% vs. Dec 04 at unchanged FX with good growth in all banks (Pekao +4.6%, Bulbank +20.9%, Zaba +17.5%, Koc +34.9%)

Slight recovery of lending spread at the end of September (3.76%(4)) with widening pricing premium vs industry (55 bp(4))

(1) Data as of January, 1st 2005, including IAS 32-39 application(2) Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos)

SEP 05(3)

On total loans 10.77%

On M/L term loans 10.85%

JUN 05(3)

10.79%

10.85%

JUN 05

150.5 153.2

Corporate

New Europe

DEC 04(1) SEP 05

140.4

Retail

66.4 71.3

60.0

71.4

+9.1%

Other

54.6 58.7

% ch. vs JUN 05

+1.8%

+4.9%

+2.2%

+0.2%

+12.4%

TOTAL CUSTOMER LOANS (IAS, bn)

UCI LENDING MARKET SHARES(2) IN ITALY

Excluding 3 bn mortgages securitisation, market shares would be:

10.98% (+15 bp on Dec 04) on total loans 11.19% (+14 bp on Dec 04) on M/L term

loans

(3) Including 3 bn mortgages securitisation(4) End of period data

7

VERY GOOD PERFORMANCE OF NET COMMISSIONS BENEFITING FROM FEES ON ASSET MANAGEMENT PRODUCTS AND ON INVESTMENT BANKING

Growth 3Q05/2Q05 driven by fees on asset management products (467 mln in 3Q05, +7.3%) and tax collection fees (+35 mln o/w 23 mln one-off related to 1H05) partially offset by lower investment banking fees in 3Q05

Y/Y growth key drivers: Fees on asset management products: +26.6% 3Q05/3Q04 and +14.0% 9M05/9M04 (to 1,335 mln) Corporate Division: foreign-trade (+3 mln 3Q/3Q, +12 mln 9M/9M), investment banking(1) (+14 mln

3Q/3Q, +45 mln 9M/9M) and transaction services (+2 mln 3Q/3Q, +5 mln 9M/9M)

3Q04 ITAS

767

2Q05 ITAS

929

NET COMMISSIONS (mln)

954

3Q05 ITAS

+2.8%

+24.4%Q/Q % ch. 3,204

9M05 IAS

1,111

3Q05 IAS

9M04 ITAS

9M05 ITAS

+13.8%2,753Y/Y % ch.

2,419

(1) Corporate finance + Equity capital market + Debt capital market

Higher net commissions in IAS mainly due to fees on deposits in current account accounted as other income according to Italian GAAP

8

Dec04

STRONG ACCELERATION OF GROUP AUM GROWTH: +24 BN YTD, +11 BN IN THE LAST THREE MONTHS, OF WHICH 4 BN FROM AMSOUTH ACQUISITION

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

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

UCI TOTAL AUM(bn)

141

Sep05

152(2)

Jun05Dec04

128

+8.1%

Italy

International(1,2) 38

4450

90 97102

+15.2%

+4.9%

% ch. vs Jun05

UCI mkt. share(3) 14.54%

… leading to continued gains in market share and # 2 ranking

UCI is undisputed leader of the Italian market in mutual funds’ net sales: 4,242 mln out of 7,393 mln for the entire system as at end October 05…

A clear growth story based on Pioneer global presence: +21 bn AUM in 9 months, of which almost 12 bn in the international business units(1,2)

(+43.3% y/y)

Further improvement in asset mix with positive impact on average pricing

15.24%

Oct05

15.30%

Sep05

(2) Including 4.3bn AuM of AmSouth acquired on September 26, 2005; Total AuM growth excluding AmSouth assets is + 15.5% vs. Dec04 and +5.1% vs. Jun05

+18.9%

Strong contribution from UPB and Xelion: 2.1 bn net sales of asset management products in 9M05 (+108% vs 9M04)

Solid and consistent performance versus competitors in the worldwide ranking : Pioneer funds rank in the 32th percentile on a 1-year basis and in the 28nd percentile on a 3-year basis

9

3Q05 penalised by negative mark-to-market of AFS government bond portfolios in New Europe (-11 mln vs a positive 49 mln mark-to-market accounted in 2Q05)

Good performance of Institutional derivatives in 3Q05; corporate derivatives, penalised by seasonal effect in 3Q, in line with expectations

INCOME FROM FINANCIAL TRANSACTIONS (mln)

INCOME FROM FINANCIAL TRANSACTIONS AFFECTED BY LOWER CONTRIBUTION OF DERIVATIVES AND MARK-TO-MARKET OF GOVERNMENT BOND PORTFOLIOS IN NEW EUROPE

Of which: Derivatives(Corporate +

Institutional + Retail)

3Q04 ITAS

233

2Q05 ITAS

276

208

3Q05 ITAS

-24.6%

-13.7%

-10.7%Q/Q % ch.

9M05 IAS

3Q05 IAS

9M04 ITAS

9M05 ITAS

Y/Y % ch.

137

820

594

772

484

-5.9%

-18.5%159144

-4.9%

227

137

746

484

ITAS/IAS gaps mainly related to mark-to-market of AFS bond portfolios in New Europe, accounted in the P&L under ITAS and directly against net equity under IAS

10

Lower personnel costs (-0.5% 3Q/2Q), mainly thanks to staff reduction in Italy (-263 people) Y/Y increase of total costs (+2.8% equal to +40 mln) driven by marketing expenses (+11.6 mln) and personnel costs (+12 mln for

renewal of labour contract and +8 mln for bonuses linked to UCI labour agreement – VAP)

+88 mln personnel costs (+3.4%), of which +24 mln linked to bonuses as per UCI labour contract “VAP”, + approx. 40 mln due to higher accruals for MBO

+35 mln other admin. expenses (+ 2.5%), mainly due to real estate maintenance costs and rents (+18 mln) and marketing and advertising expenses (+10 mln)

GOOD COSTS CONTROL, ALMOST NO GROWTH VS. 2Q05Y/Y TRENDS AFFECTED BY FX EFFECT AND HIGHER INDIRECT TAXES

OPERATING COSTS (net of taxes recovered in the “other net revenues” line)

2,5292,652

1,367

3421,426

3194,2384,397 +3.8%

+4.4%

+4.8%

-6.6%

Personnel costs

Other admin. expensesDepr. & amort.

886 883

480

108

490

109

841

449

122

3Q04 ITAS

1,4121,474 1,482 +0.5%

+1.9%

-0.3%

+4.9%

+1.2%

Q/Q % ch.

2Q05 ITAS

3Q05 ITAS

9M04 ITAS

9M05 ITAS

Taxes recovered in the “other net revenues” line 50 71 65 148 198

+2.8% at constant FX

+2.1%at constant FX

Quarterly trends (at constant FX and net of taxes recovered in the “other net revenues” line):

9M results (at constant FX and net of taxes recovered in the “other net revenues” line):

(mln)

3Q ITAS/IAS gap (1,547 mln vs 1,492 mln) due to recovered expenses(1)

(1) See annex for details

11

ASSET QUALITY: SIGNIFICANT REDUCTION OF COST OF RISK AND INCREASED COVERAGE RATIOS

Weight on Net Loans

Provisions on performing loans 1,259 -1.3%

Coverage ratio 0.84% -2 bp

Total Net Doubtful Loans 4,280 +1.1%

Weight on Net Loans 2.79% -2 bp

mln, where not specified - IAS

Net Non Performing Loans 2,168 +0.6%

1.42% -2 bp

Sep05 ch. on Jun05

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

9M04

1,417

9M05

1,412 -0.3%

Slight y/y reduction of net flows of new doubtful loans(1)

Cost of risk ( 9M annualised - ITAS) 52 bp(2) -11 bp

Sep05ch. on 2004

(2) Calculated adding back to net loan loss provisions ~180 mln net write-backs on Convertendo FIAT

Very limited q/q increase of net NPLs (+0.6%), net watchlist (+0.7%) and total net doubtful (+1.1%)

Increased coverage ratios on doubtful loans:

Net loan loss provisions impacted by Convertendo FIAT and one-off write-backs in New Europe and Corporate Division

~1.3 bn provisions on performing loans, slightly lower than Jun05 but +64 mln vs Dic04; 0.84% coverage ratio

68.2% on NPLs (vs 67.7% as of Jun05) 34.9% on watchlist (vs 32.7% as of Jun05) 57.1% on total doubtful (vs 56.5% as of Jun05)

Binding offers received for the sale of ~1.7 bn gross NPLs (equal to ~0.5 bn net NPLs); exclusive negotiation in progress

Significant reduction of cost of risk: 36 bp in 9M05 vs 63 bp in FY04; 52 bp(2) normalised for Convertendo FIATCost of risk ( 9M annualised - IAS) 59 bp

(mln, ITAS)

12

GROUP RESULTS BENEFITING FROM BUSINESS DIVERSIFICATION

9M05 OPERATING INCOME BY DIVISION

y/y % ch.

1,561Corporate -1.1%

1,227Retail +33.6%

3,852TOTAL GROUP +16.4%

800New Europe +32.6%

CONTRIBUTION TO 9M05 GROUP OP. INCOME PRE CORPORATE CENTRE AND ELISIONS

444Private & AM +46.3%

Mln, ITAS

19.8%

11.0%

38.7%

30.4%

RETAIL DIVISION CORPORATE DIVISION

PRIVATE & AM DIVISION NEW EUROPE DIVISION

13

RETAIL DIVISION: STRONG LENDING VOLUMES INCREASE DRIVING NET INTEREST INCOME TURNAROUND

EXCELLENT LENDING GROWTH (+9.4% Y/Y) …

Household mortgages(1) +9.8% y/y (+3.9% vs. Dec04)

Consumer credit +38.5% y/y (+24.7% vs. Dec04)

Small Business +12.7% y/y (+7.3% vs. Dec04), mainly thanks to s/term loans

… AND GOOD SPREAD RESILIENCE IN ALL KEY MARKETS…

3Q average spread(2) on:

new mortgages at 1.28% for UCB (+1 bp q/q) and 1.44% for UBCasa (+3 bp q/q)

small business(3) s/term loans at 7.37% (-22 bp q/q)

revolving cards at 11.89% (+12 bp q/q)

… SUSTAINING NET INTEREST INCOME SOUND PERFORMANCE (despite mortgage securitisation penalising 2Q by 8 mln and 3Q by 13 mln)

3Q04

584

2Q05

605

NET INTEREST INCOME (ex. div.), mln

3Q05

604

(2) Management accounts(3) Management accounts, including also maximum overdraft charges

+3.4%(+5.7% ex securitisation)

(1) Trend due to 3 bn securitisation carried out in 2Q05. Excluding securitisation, mortgage growth would be +18.9% y/y and +12.5% vs. Dec04

ITAS

14

STAFF COSTS (mln, ITAS)

-1,068 vs. June 04

9M04

25,176

2004

25,051

TOTAL STAFF

9M05

24,314

RETAIL DIVISION OPERATIONAL ACHIEVEMENTS

STAFF REDUCTION PLAN WELL ON TRACK (~55% of the total reduction announced in the 3 year plan already achieved)…

CONTINUED FOCUS ON WEALTH MANAGEMENT PRODUCTS GENERATING RECURRING REVENUES

SALES OF SEGR. ACCOUNTS INVESTING IN FUNDS, bn

… WITH CLEAR EFFECTS ON TOTAL STAFF COSTS, DESPITE NEW LABOUR CONTRACT

EXCELLENT CONTRIBUTION TO GROUP NET INCOME

CONTRIB. TO GROUP NET INCOME (mln, ITAS)

3Q04

155

2Q05

182

3Q05

195

3Q04

1.7

2Q05

1.7

3Q05

2.2

3Q04

383

2Q05

385

3Q05

382

+25.6%

15

394369

384

3Q04 2Q05 3Q05

-2.5%

+4.0%

+2.8% gross of securitisations (~21 mln)

CORPORATE DIVISION: NET INTEREST INCOME SUSTAINED BY HIGHER AVERAGE LOANS AND DEPOSIT SPREADS, OFFSETTING LOWER LENDING SPREADS

(2) Only UBI + UBMC (Source: BankIT Matrix)(3) Calculated on SMEs and other non-financial enterprises excluding largest Groups. Source: Credit Bureau data as of Aug05

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

(1) Almost totally recovered as “Other income”

9M04 9M05

1,152

1,118

+1.7%

Locat + District bond securitisations

impact(1)

1,172

54

-3.0%

TOTAL LOANS (ex Repos), (ITAS, bn)

Of which: M/L(2)

Significant y/y growth of customers loans (+5.3% gross of securitisations), mainly driven by M/L-term lending (+10.9%)

Slight q/q reduction of customers loans (~0.8 bn) almost totally due to conversion of Convertendo FIAT (~0.6 bn) at the end of Sept.05; 3Q05 avg. loans significantly higher than 2Q05 (i.e. +2.1 bn for UBI) due to the strong increase in 2Q05

Reduction of lending spreads for UBI (2.01% Avg. 3Q05, -9 bp q/q) partly offset by increased deposit spread (0.94% Avg. 3Q05, +10 bp q/q)

64.1 68.5 67.7

Sep04 Jun05 Sep05

+5.6%

-1.1% vs Jun05

25.9 28.9 28.7

+5.3% gross of securitisations

-0.9% vs Jun05

q/q % ch.

UBI share of wallet at 14.3%(3) (vs 13.8% as of Dec04 and 14.2% as of Jun05)

+10.9%

16

FOCUS ON SERVICE REVENUES AND RISK PROFILE: STRONG Y/Y GROWTH OF NET COMMISSIONS AND LOWER FLOWS OF NEW DOUBTFUL LOANS

NET COMMISSIONS (ITAS, mln)

9M04 9M05

319392 +23.1%

90

146116

3Q04 2Q05 3Q05

+28.7%

-20.6% Foreign trade services: 111 mln in 9M05 (+11.6% y/y), 38 mln in 3Q (+7.7% 3q05/3q04)

Transaction services: 54 mln in 9M05 (+9.9% y/y), 18 mln in 3Q (+12.3% 3q05/3q04)

Continued increase of UBM’s revenue stream diversification

Derivatives: 68% in 9M05 (-10 pp)

Investment Banking(1): 17% in 9M05 (+6 pp)

Sales & Trading on cash products: 15% in 9M05 (+4 pp)

NET FLOWS OF NEW DOUBTFUL LOANS(2) (ITAS, mln)

Default Rate(3) at 0.87% in 9M05 vs 1.20% in 9M04

Strong y/y reduction of net flows of new doubtful loans in 9M05

(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

9M04 9M05

752583 -22.5%

q/q % ch.

(3) 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

Investment Banking(1): 141 mln in 9M05, (+47.0% y/y), 34 mln in 3Q (+73.3% 3q05/3q04)

(1) Investment Banking: Corporate Finance (UBI, UBM and UBMC) + Equity Capital Market (UBM) + Debt Capital Market (UBM)

17

311547

PRIVATE & ASSET MANAGEMENT DIVISION: STRONG REVENUE GROWTH DRIVEN BY INCREASING ASSETS AND MARGINS

Significant growth of Tot. Financial Assets (ITAS, bn)

All figures at unchanged FX

Excellent net sales in 9M05:

Asset Management: 7.8 bn net sales, vs 2.4 bn in 9M04

Asset Gathering (UPB+Xelion): 4.4 bn net sales in 9M05 (+65% y/y), of which c. 2.1 bn of asset management products, i.e. 47% of net sales, vs. 23% as of June 30, 2005.

(1) 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

TOTAL REVENUES (ITAS, mln)

Up-front fees

Management & other fees

Performance fees(1)

2Q05

328359

+9.5%

+7.0%

3Q04 3Q05

281

222

121

249

266

266

Q/Q % ch.

NII & other 46

47

165190

203

Sep04 Jun05 Sep05

2978

140

9M04

855

1004

9M05

4110

757

135

+13.3%

+17.5%

+6.9% vs Jun05 (+4.5% excl. 4.3bn assets of AmSouth)

669

+20.3%

+27.8%

Strong improvement in margins thanks to product and asset mix:

Asset Mix (Pioneer): avg. weight of stocks and equity funds at 31%in 3Q05, up 398 bp y/y and 145 bp q/q; avg. weight of hedge funds at 3.0% in 3Q05, flat y/y and q/q

Margins(2) (in bp of average AuM): up from 59.4 bp in 2Q05 to 60.5 bp in 3Q05; up from 58.6 bp in 9M04 to 59.8 bp in 9M05

(2) Net commissions, excluding performance fees

23.8%

Performance fees(1) increased by 155% q/q thanks to a strong contribution from hedge funds (fees on Italian funds were flat q/q)

18

STEEP ACCELERATION IN OPERATING INCOME GROWTH BOTH Q/Q AND Y/Y, THANKS TO RISING REVENUES, MARGINS IMPROVEMENTS AND COST CONTROL

All figures at unchanged FX

Revenue rising q/q (+9.5%) and y/y (+17.5%), driven by sales of Focus Invest and by a clear improvement in the asset mix

Net income for the Group at 121 mln in 3Q05 (+18.6% q/q) and 322 mln in 9M05 (+28.4% y/y)

Strong operating income growth, +20% q/q, confirming an excellent trend (+45.5%9M05/9M04), thanks to revenue growth and cost control

OPERATING INCOME (ITAS, mln)

2Q05 3Q05

140 168+20.0%

9M04 9M05

305444 +45.5%

C/I RATIO, %

2Q05 3Q05

57.1 53.0

9M04 9M05

64.355.8 -850 bp-412 bp C/I ratio further declining by 412 bp

q/q (-850 bp 9M05/9M04); costs growing at a very moderate pace compared to revenues (+1.6% q/q and +2.0% 9M05/9M04)

19

NEW EUROPE DIVISION: REVENUES GOOD PERFORMANCE SUPPORTED BY FURTHER VOLUME GROWTH

SIGNIFICANT LENDING GROWTH: +19.1% Y/Y (+28.8% at current FX) …

Mortgages(1) (Euro mln)

Sep05

2,365

Jun05

2.5672,070

Sep04

+24.0%

Consumer credit(1) (Euro mln)

Sep05

1,851

Jun05

2,0681,533

Sep04

+34.9%

... AND CONTINUED DEVELOPMENT IN MUTUAL FUNDS …

Direct Deposits (Euro bn)

Sep05

24.2

Jun05

24.624.4

Sep04

+0.7%

Mutual Funds(2) (Euro mln)

Sep05

6,339

Jun05

7,007

4,583

Sep04

+52.9%

(1) Management accounts in LAS(2) New Europe Business Area of Pioneer is included at current FX

… POSITIVELY IMPACTING ON REVENUE INCREASE

Net interest income (Euro mln)

9M05

931

328

3Q05

+6.2%

Y/Y % ch.

+10.0%

Y/Y % ch.

Net non interest income

(Euro mln)

9M05

647

200

3Q05

+22.5%

Y/Y % ch.

+14.3%

Y/Y % ch.

All figures at unchanged FX – P&L & BS in ITAS

+15.9% +34.3%

% ch. at current FX

20

Total Revenues +12.5% 9M/9M (+11.1% 3Q05/3Q04)

Operating Costs +4.9% 9M/9M (+5.3% 3Q05/3Q04)

Cost/Income ratio 50.2% in 9M05, -3.6 pp y/y

BETTER ASSET QUALITY

Improved coverage ratio of doubtful loans (to 76.8%(3), +6.6 pp vs. 01/01/05)

Lower weight of net NPL on total net loans (to 1.6%(3) vs. 2.3% as at 01/01/05)

STRONG RESULTS: ASSET QUALITY, EFFICIENCY AND PROFITABILITY STILL IMPROVING

GOOD PERFORMANCE OF OPERATING INCOME

9M05

272

3Q05

800299

2Q05

+21.3%

Y/Y % ch.

+17.6%

3Q05/3Q04 % ch.

Cost of risk(1) (bp)

9M05

90

FY04

-20 bp

9M05

161

3Q05

404

136

2Q05

+27.5%

Y/Y % ch.

+30.0%

3Q05/3Q04 % ch.EXCELLENT NET

INCOME GROWTH

Operating Income (Euro mln)

Attributable Net income (Euro mln)


Excl. one off write back in

Zaba(2)

54

70

(2) Write-back of approx. 21 mln as release of funds for guaranteed loans

(3) Data in IAS

All figures at unchanged FX – P&L in ITAS

% ch. at current FX

+38.4%

+32.6%

21

UPDATE ON HVB DEAL: MAIN ACHIEVEMENTS SO FAR …

Success of HVB offer, following:

88.14% acceptance level as of 24 October 2005 (end of Acceptance Period(1)), well above the 65% threshold

(1) Additional Acceptance Period (pursuant to the German Takeover Act) until 11 November 2005

Unconditional merger control clearance received from EU Commission on 18 October 2005

Issuance of verification by an independent expert that the value of the HVB Shares tendered conforms to the expert evaluation rendered to UniCredit shareholders’ meeting on 29 July 2005 resolving on the capital increase

Very positive results also on BA-CA offer:

(2) Additional Acceptance Period (pursuant to the Austrian Takeover Act) until 18 November 2005

10.64% acceptance level as of 31 October 2005 (end of Acceptance Period(2)) representing ~47% of the free float

88.17% of BA-CA aggregate share capital held by UniCredit directly and through HVB

Integration process proceeding as planned (within the limits still imposed by applicable laws):

Integration Office, 7 CEO’s Projects, 8 Cooperation Teams working as “main integration engine” Ready for Day 1 management; definition of a smooth integration plan well on track

Shares representing 10.59% of the share capital tendered in the exchange offer and shares representing 0.05% of the share capital tendered in the cash offer

22

… AND NEXT EXPECTED STEPS

End of Additional Acceptance periods of HVB and BA-CA offers, respectively 11/18 November

Publication of final result of shares tendered during Additional Acceptance Period of HVB offer17 November

Settlement of HVB offer and commencement of trading of UniCredit shares on FSE23 November

UniCredit BoD passing resolution to liberate capital increase for settlement of HVB offer. Birth of the New Group18 November

21 November UniCredit shares admitted to listing on FSE

30 November UniCredit BoD passing resolution to liberate capital increase for settlement of

BA-CA offer

Beginning of December

Settlement of BA-CA offer

UniCredit Shareholders’ Meeting; election of new BoD (24 members) to enter in charge for the financial years 2006-200816 December

23

NEW GROUP’S NEXT FINANCIAL COMMUNICATION EVENTS

22 March 2006(1)

FY05 consolidated results

12 May 2006(1)

Annual Shareholders’ General Meeting for approval of FY05 consolidated results

(1) Tentative date

1Q06 consolidated results

Beginning of July 2006

New Group’s First Investor Day: bottom-up Divisional Plan

Update on the integration process

9M05 CONSOLIDATED RESULTS

Annexes

25

y/y% ch.(1) 9M05

3,878

-92

-676

-160

-1,090

2,118 +28.4

+76.9

+15.6

+2.4

+20.3

+22.9

258 n.m.

-4,400

3,974

8,278 +9.1

+3.9

+11.9

3,204 +11.3

746 -8.6

-2,622 +5.1

171 +5.6

53.2% -2.6 pp

VERY GOOD PERFORMANCE OF UCI

Gross operating profit

Provisions for risk & charges

Net write-downs on loans

IAS, mln

Minorities

Taxes

Net income

Net Profit (loss) on investments

(1) 3Q04 & 9M04 excluding IAS 32 & 39

Administrative costs (incl. depr.)

- of which net interest income (excl. div.)

Total revenues

- of which net commissions

- of which trading income

- of which staff costs

- of which recovered expenses

COST/INCOME ratio (%)

y/y% ch.(1) 3Q05

1,311

-24

-192

-64

-382

+0.0

+23.4

-13.1

+25.5

+39.4

676 +32.5

27 +50.0

-1,492

1,376

+4.9

+14.4

2,803 +12.8

1,111 +19.6

227 -1.3

-880 +5.3

58 +1.8

53.2% -4.0 pp

26

9M05 & 3Q05 RESULTS IAS VS. ITALIAN GAAP

Gross operating profit

Provisions for risk & charges


(mln)

Minorities

Taxes

- of which net interest income (excl. div.)

9M05 ITAS9M05 IAS

-4,400

3,878

-92

-676

-160

-1,090

3,974

-112

-4,595

3,851

-408

-177

-1,101

3,921

3Q05 ITAS3Q05 IAS

-1,492

1,311

-24

-192

-64

-382

1,376

Net income 2,118 1,923 676 622

Total revenues 8,278 8,446 2,803 2,842

-26

-1,547

1,295

22

-60

-371

1,361

- of which net commissions 3,204 2,753 1,111 954

- of which trading income 746 772 227 208

- of which staff costs -2,622 -2,652 -880 -884

- of which recovered expenses 171 - 58 -

258 -175 27 -179

Goodwill depreciation - -237 - -78

Net extraordinary income - 282 - 19

Net write-downs on loans

Net Profit (loss) on investments

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

charges

3Q05 & 9M05 CONSOLIDATED INCOME STATEMENT

Net extraordinary income


Total revenues

Operating income

Provisions on loans


Other net provisions(1)

Goodwill depr.

Minorities

Taxes

% ch. on 3Q04

Net interest income (incl. div.)

- of which Dividends

+19.1

+14.0

-110.1

-64.5

+5.7

+25.8

n.m.

+9.0

+21.2

+40.5

+9.2

% ch. on 2Q05 3Q05

1,447

2,842

-1,547

1,295

+22

19

-205

-78

-60

-371

1,395

34

-2.5

-1.7

-110.3

-64.6

+0.1

-3.8

n.m.

-11.5

-11.2

-2.9

-0.9

n.m. +35.3

y/y % ch. 9M05

4,343

8,446

-4.595

3,851

-408

282

-287

-237

-177

-1,101

4,103

182

Net income +36.7622 +2.1 1,923 +27.9

+11.4

+9.7

-38.3

+79.3

+4.8

+16.4

n.m.

+10.4

+30.7

+23.0

+8.0

+0.1

ITAS, mln

28

Retail Division

Corporate Division

Priv.& AM Division

NE Division

Total Group(1)

Total revenues-1.7% -37.8% +8.3% -2.5% -1.7%

Operating costs

Operating income

Net write-downs of loans

Net income for the Group

C/I Ratio

-2.4% +1.4% +0.5% +2.1% +0.1%

-0.4% -7.8% +18.8% -6.7% -3.8%

+18.6% -210.5% -201.5% -98.1% -110.3%

+7.0% -7.9% +17.5% +19.8% +2.1%

-0.5 pp +2.1 pp -4.1 pp +2.3 pp +1.0 pp

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

(2) Calculated on data at end of period FX

(mln - Data at end of period FX)

DIVISIONAL CONTRIBUTION TO CONSOLIDATED RESULTS IN 3Q05

1,158 721 359 559 2,842

-749 -236 -190 -280 -1,547

410 486 169 279 1,295

-90 110 1 -1 22

195 234 121 164 622

64.6% 32.7% 53.0% 50.0% 54.4%

(3) IAS Including all the employees of Koc Financial Services (3,942 as at 30.09.2005)

Employees(3) 24,360 5,426 3,572 30,858 71,314

3Q05 RESULTS

% Change vs 2Q05(2)

% Change vs 2Q05(2)

% Change vs 2Q05(2)

% Change vs 2Q05(2)

% Change vs 2Q05(2)

Change in pp vs 2Q05(2)

ITAS, mln

29

OPERATING COSTS - DETAILS ON ITAS/IAS RECONCILIATION: GAP ALMOST TOTALLY DUE TO RECOVERED EXPENSES

3Q05 OPERATING COSTS: FROM ITAS TO IAS (mln)

9Q05 OPERATING COSTS: FROM ITAS TO IAS (mln)

IAS 19 – Employees’

benefits(1)

3Q05 ITAS

3Q05 IAS

-18

+16+28

1,547

1,492

Share-based payments

Consolidation perimeter changes

OthersRecovered expenses

Property Depreciation

-58 -7 -16

(1) Actuarial evaluation of personnel long-term benefits: TFR, pension funds, bonuses and deferred compensation

IAS 19 – Employees’

benefits(1)

9M05 ITAS

9M05 IAS

-66

+34+82

4,595

4,400

Share-based payments

Consolidation perimeter changes

OthersRecovered expenses

Property Depreciation

-171 -20 -54

30

NON OPERATING ITEMS

Operating income

Goodwill amort.

Net Income



Net extraord. income

Taxes

Minorities

2Q05

1,347

-89

609

-216

-39

55

-382

-69

3Q04

1,030

-72

455

-222

-22

55

-264

-50

1,295

-78

622

3Q05

22

-205

19

-371

-60

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

9M05

3,851

-237

1,923

-408

-287

282

-1,101

-177

9M04

3,310

-215

1,504

-660

-58

157

-895

-135

ITAS, mln

31

-on tot. Gross doubtful loans, % 54.4% 53.3%

-on total gross NPL, % 63.9% 61.9%

Total gross doubtful loans 3,608

Net Doubtful Loans/Tot. Net Loans,% 2.81%

3,731

2.90%

+3.4%% change on Jun 05

Gross Doubtful Loans/Tot. Gr. Loans,% 5.91% 5.98%

Total net doubtful loans 1,646 1,743+5.9%% change on Jun 05

ASSET QUALITY: DETAILS BY DIVISIONS

Coverage ratios

Retail Division

Jun 05 Sep 05

(1) Balance due to other Group companies

(IAS, mln - Data at end of period FX)

Corporate Division

NE Division Total Group(1)

Gross NPL

% change on Jun 05Gross NPL/Tot. Gr. Loans,%

Net NPL/Tot. Net Loans,%

2,202

3.61%

1.36%

2,244

3.60%

1.42%

+1.9%

Net NPL

% change on Jun 05

796 854

+7.3%

Jun 05 Sep 05 Jun 05 Sep 05 Jun 05 Sep 05

41.9% 41.8%

49.6% 50.0%

3,085

2.51%

3,158

2.57%

+2.4%

4.21% 4.31%

1,791 1,839+2.7%

1,973

2.69%

1.39%

2,031

2.77%

1.42%

+2.9%

995 1,015

+2.0%

73.2% 76.8%

85.6% 88.6%

2,912

4.78%

2,946

3.98%

+1.2%

15.58% 15.03%

781 682-12.7%

2,376

12.71%

2.09%

2,419

12.35%

1.61%

+1.8%

342 275

-19.6%

56.5% 57.1%

67.7% 68.2%

9,726

2.81%

9,970

2.79%

+2.5%

6.18% 6.23%

4,232 4,280+1.1%

6,678

4.25%

1.43%

6,819

4.26%

1.42%

+2.1%

2,156 2,168

+0.6%

32

UNICREDIT GROUP RATINGS

Long Term

S&P

Short Term

OutlookFinancial Strength

Last Change

Moody’s

Fitch Ratings

A+

A1

A+

A-1

P-1

F1

Negative

Stable

Stable

28.10.05

03.11.05

28.10.05

-

B-

B/C(1)

(1) Individual Rating

33

Details on 9M05 consolidated results

Divisional Reporting

Retail Division

Corporate Division

Private Banking & AM Division

New Europe Division

AGENDA

34

Interest income (incl. div.)


Total revenues

Operating costs (incl. dep.)

Net operating income

Net income

Cost/income ratio, %

TOTAL(1)UniCredit Banca

Net provisions

Mln, ITAS

Net income for the Group(2)

Clarima

- of which: Staff costs

- of which: Other adm. expenses

RETAIL DIVISION: 9M05 RESULTS BREAKDOWN BY COMPANY

- o/w: Net write-down of loans

1,618

1,607

3,225

-2,163

1,062

628

67.1

457

-1,135

-974

-188

-222

121

39

159

-59

100

34

37.1

34

-15

-44

-42

-44

(1) Balance due to rounding and elisions of infragroup dividends, goodwill amortisation and consolidation adjustments(2) Net of consolidation adjustments and minorities

Net extraordinary income (loss) 161 -1

1,850

1,652

3,503

-2,275

1,227

559

65.0

559

-1,168

-1,052

-249

-284

+4

UBCasa

99

7

105

-54

52

27

50.7

32

-17

-35

-18

-18

1

NOTE: historical data have been restated to reflect the spin-off of CR Carpi and Banca dell’Umbria activities between UCB, UBI and UPB

35

RETAIL DIVISION: P&L

Interest income (incl. div.)


Total revenues



Net income

Cost/income ratio, %

Q/q% ch.

3Q05

Net provisions

Mln, ITAS

Net income for the Group(2)

Y/y% ch.


- of which: Other adm. expenses

- o/w: Net write-down of loans

623

536

1,158

-749

410

195

64.6

195

-382

-347

-90

-99

+2.2

-5.8

-1.7

-2.4

-0.4

+7.2

-45 bp

+7.0

-0.8

-4.0

+18.6

+9.2

+3.4

+10.9

+7.4

+0.6

+22.6

+25.3

-438 bp

+25.6

-0.2

+3.8

+31.4

+24.4

Net extraordinary income (loss) +2 n.m. n.m.

Y/y% ch.

9M05

+7.6

+17.4

+12.0

+3.1

+33.6

+38.9

-566 bp

+39.2

+1.7

+6.3

+27.8

+27.7

n.m.

1,850

1,652

3,503

-2,275

1,227

559

65.0

559

-1,168

-1,052

-249

-284

+4


36

4.5 4.7

RETAIL DIVISION - MORTGAGES AND CONSUMER FINANCING

RESIDENTIAL MORTGAGESSTOCK, bn NEW FLOWS, bn

CONSUMER FINANCING9M04 9M05

30.5

33.5+9.8%(2)

NEW FLOWS OF PERSONAL LOANS, mln

9M04 9M05

195 mln201 mln

REVOLVING CARDS TOTAL SPENDING(3) (+235k revolving cards in 9M05)

DEC04

32.2

mkt share(1)

17.67% 17.76%16.76%(2)

(1) Group market share, related to mortgages to households as of Bank of Italy definition in table TDME0070 of the monthly bulletin(2) Excluding 3 bn securitisation, mortgage growth would be +18.9% y/y and market share 17.75%

9M04 9M05

886

1,334

+50.5%

9M04 9M05

6.5 6.6

+1.3%

2.0 1.9

UCB

UBCasa

+6.1%

-9.1%

STOCK, bn

9M04 9M05

2.5

3.5+38.5%

DEC04

2.8

(3) POS and ATM spending

37

RETAIL DIVISION - SMALL BUSINESS STOCK, SPREAD AND CUSTOMER ACQUISITION

STOCK, bn, ITAS

9M05

SHORT TERM SPREAD(1)


16.0

+7.3%

1Q04

18,000

2Q04

19,000

3Q04

15,000

4Q04

17,500

QUARTERLY TRENDS IN SMALL BUSINESS CUSTOMER ACQUISITION

1Q05

17,000

2004

14.9

1H05

15.6

2Q05

19,000

3Q05

12,000

(1) Management accounts, includes also maximum overdraft charges

1Q04

7.99% 7.96%

2Q04

7.99%

3Q04

7.98%

4Q04

7.87%

1Q05

7.59%

2Q05

7.35%

3Q05

38

DEC04

DEC04

2Q05

2Q05

56.3

67.8

32.2

23.1

15.6

3.35.1

14.8

29.9

+0.1%

+4.9%

+18.9%-0.3%

+1.2%

-1.6%

+2.1%

55.1

67.2

32.2

22.8

14.9

2.85.2

15.1

29.3

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, ITAS

UCB AVG. MARK UP(3) (Households), %

Other deposits

Households c/accounts

Bonds

EOP DEPOSITS, Euro bn, ITAS UCB AVG. MARK-DOWN(3) (Households), %

UCB AVG. MARK UP(3) (Small Business), %

7.03

1Q04

1.65

5.60

7.08

2Q04

1.65

5.47

(2) Includes only households mortgages(3) Source: Bank of Italy matrix data

3Q05

3Q05

57.6

68.3

33.5

24.0

16.0

3.54.6

14.6

29.8

7.33

3Q04

1.67

5.55

+1.8%

7.21

4Q04

1.71

5.42

1Q04 2Q04 3Q04 4Q04

1Q04 2Q04 3Q04 4Q04

7.27

1Q05

1.70

5.43

1Q05

1Q05

7.30

2Q05

1.70

5.34

2Q05

2Q05

+4.1%

+2.3%

+4.9%-9.9%

+2.4%

7.20

3Q05

1.69

5.23

3Q05

3Q05

NOTE: historical data have been restated to reflect the spin-off of CR Carpi and Banca dell’Umbria activities between UCB, UBI and UPB(1) Includes short term and m/l term loans

+4.0%

-1.7%

-0.4%

39

RETAIL DIVISION - DETAILS ON ASSET QUALITY

Provisions on performing loans 372 -2.6 %

Coverage ratio 0.63% -2 bp

Net Non Performing Loans 854 +7.3%

Weight on Net Loans 1.42% +7 bp




Sep 05ch. on Jun 05

+1.2%

9M04 9M05

624 632

NET FLOWS OF NEW DOUBTFUL LOANS(1) (mln, ITAS)


Cost of risk ( 9M annualised - ITAS) 58 bp +8 bp

Sep 05ch. on 2004

Cost of risk ( 9M annualised - IAS) 60 bp

40



Retail Division

Corporate Division


New Europe Division

AGENDA

41

CORPORATE DIVISION: 9M05 INCOME STATEMENT- BREAKDOWN BY COMPANY

Net Interest income (incl. div.)


Total revenues



Net income

TOTAL1UBI

Net provisions

(Euro mln, ITAS)

Net income for the group


- of which: Other admin. expenses

Other companies

- o/w: Net write-downs of loans

988

461

1,449

1,027

-187

-233

-422

429

425

29.1%Cost/income Ratio

-72

-293

UBM LOCAT

-8

547

539

364

-86

-82

-175

220

218

32.5%

-1

-4

104

69

173

131

-17

-24

-42

66

69

24.5%

-15

-18

52

42

94

41

-26

-22

-53

26

29

56.9%

1

2

1,136

1,117

2,253

1,561

-315

-360

-692

742

742

30.7%

-87

-313

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

42

CORPORATE DIVISION: 9M05 INCOME STATEMENT



Total revenues

Operating costs (incl. depr.)

Operating income

Net income

Total net provisions

Taxes


Cost Income ratio, %

(Euro mln, ITAS) 3Q05/2Q05 % ch. 3Q05

721

-236

485

-170

32.7%

82

234

233

384

337

3Q05/3Q04 % ch.

-5.0

+1.4

-7.8

-1.1

+205bp

n.s.

-7.9

-8.3

+0.1

-10.2

+5.5

+9.0

+3.8

+13.2

+106bp

n.s.

+22.1

+21.8

-2.8

+16.8

9M05 Y/Y % ch.

2,253

-692

1,561

-514

30.7%

-313

742

742

1,136

1,117

+0.7

+4.8

-1.1

-0.4

+122bp

n.s.

+0.2

+0.1

-2.6

+4.2

43

CORPORATE DIVISION - DETAILS ON ASSET QUALITY


752

583

9M04 9M05

-22.5%

(2) Calculated adding back to net loan loss provisions ~180 mln net write-backs on Convertenda FIAT; stated figure at 16 bp

NET FLOWS OF NEW DOUBTFUL LOANS(1) (mln, ITAS)

Weight on Net Loans

Provisions on performing loans 595 5.5%

Coverage ratio 0.85% +3 bp




Net Non Performing Loans 1,015 +2.0%

1.42% +3 bp

Sep05 ch. on Jun05

Cost of risk ( 9M annualised - ITAS) 50 bp(2) -20 bp

Sep05ch. on 2004

Cost of risk ( 9M annualised - IAS) 62 bp

44

(Euro mln, ITAS)

Net interest income 335


Cost Income RATIO, %

152

29.0%

Net non interest income 147

Total revenues

Operating costs

Operating income

483

-140

342


Other net provisions

116

-191

Of which:

103

- Trading profits 36

- Net commissions

UNICREDIT BANCA D’IMPRESA: 9M05 INCOME STATEMENT

3Q05/2Q05 % ch. 3Q05 3Q05/3Q04

% ch.

+3.4

+6.3

-24 bp

-11.8

-1.8

-2.6

-1.4

n.s.

n.s.

-14.3

-5.7

+0.3

+25.6

+30 bp

+11.4

+3.4

+4.5

+3.0

n.s.

n.s.

+13.3

+1.7

988

425

29.1%

461

1,449

-422

1,027

-72

-221

321

121

Y/Y% ch. 9M05

+0.7

+14.8

+65 bp

+6.0

+2.4

+4.7

+1.4

-79.6

n.s.

+14.7

-16.4

45

UBM: 9M05 INCOME STATEMENT

(Euro mln, ITAS)

Total revenues

Staff costs

Other costs (incl. depr.)

Operating income

Net income

C/I Ratio

152

-32

-32

88

51

42%

Taxes -37

3Q05/2Q05% ch. 3Q05 3Q05/3Q04

% ch.

-15.8

+57.4

-9.7

-29.4

-31.6

vs 31%

-23.0

+14.6

+16.2

+35.3

+8.2

-26.3

+344 bp

-7.2



-2

154

n.s.

-11.1

n.s.

+7.9

539

-82

-93

364

218

32.5%

-143

Y/Y% ch. 9M05

-5.7

-2.5

+12.4

-10.1

-23.2

+327bp

-21.4

-8

547

-53.2

-7.1

46



Retail Division

Corporate Division


New Europe Division

AGENDA

47

PRIVATE & AM DIVISION: 9M05 INCOME STATEMENT – BREAKDOWN BY COMPANY



Total revenues


Operating income

Net income

Cost/Income Ratio




- of which: other admin. expenses

(ITAS, Euro mln)


TOTAL DIVISION2

81

924

1,004

-561

-265

-278

444

-8

334

322

55.8%

+4

UPB +

Subsidiaries

69

221

290

-170

-101

-66

120

-4

82

59

58.6%

+10

11

651

662

-299

-145

-144

363

-1

192

281

45.2%

+3

10

50

60

-88

-16

-66

-28

-4

-27

-21

n.m.

+1

PGAM Group1 UniCredit Xelion Banca

3

1

4

-4

-2

-1

0

+1

1

1

n.s.

+1

UC Luxemburg

1 The Net Income and Net Income for the Group lines of PGAM Group are gross of goodwill amortisation

2 Balance due to rounding and elisions of intra-group dividends and goodwill amortisation

48

PRIVATE & AM DIVISION: 3Q05 AND 9M05 INCOME STATEMENT



Total revenues

Operating costs (incl. depr.)

Operating income


Net income


Taxes


Cost Income ratio, %

3Q05/2Q05 % ch. 3Q05

359

-190

169

-40

53.0%

-2

-1

121

126

26

333

9M053Q05/3Q04 % ch. Y/y % ch.

+9.5

+1.6

+20.0

+19.4

-412 bp

n.m.

n.m.

+18.6

+18.4

-4.8

+10.8

+27.8

+7.0

+63.5

+74.5

-1027 bp

n.m.

n.m.

+35.5

+35.2

+6.2

+29.8

1,004

-561

444

-106

55.8%

+4

-8

322

334

81

924

+17.5

+2.0

+45.5

+61.9

-850 bp

n.m.

n.m.

+28.4

+28.7

+8.3

+18.4

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

49(1) Including Repos

PRIVATE & AM DIVISION: DETAILS ON TOTAL FINANCIAL ASSETS Y/Y AND 3Q/2Q TRENDS

(bn - data at constant FX)

Securities in custody

Direct deposits(1)

AUMs

PRIVATE & AM DIVISION TOTAL FINANCIAL ASSETS

Sep04

6.3

27.5

131.5

7.6

32.5

150.3

165.3

190.4

7.3

33.8

162.2

203.3

Jun05 Sep05% weight of AUM products 79.879.079.5

+4.5%

+6.9%

ex AmSouth +20.4% y/y

+23.0% y/y

ex AmSouth

AmSouth acquisition(2) accounts for 4.3 bn AUM

(2) AmSouth acquired by Pioneer on 26.09.05; AuM $ 5.17 bn

50

(1) Balance due to rounding

Italy

New Markets

92,809

3,885

TOTAL PIONEER

Alternative Investments

129,614

3,830

5,744

1,617

7,794

214

- US ex AmSouth 25,032 -581

International (ex-Italy) 7,888

1,013

AuM as at 31.12.2004

US in USD 34,096 -721

105,161

5,442

149,642

4,384

28,338

10,701

AuM as at 30.09.2005(1)

39,295

AuM as at 31.10.05(2)

104,462

31,818

10,614

5,376

152,270

4,454

38,255

9M05 Net sales

PIONEER GROUP: DETAILS ON NET SALES AND AUM TREND (Oct05)

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

6,608

1,196

12,234

340

3,887

544

750

484

66

574

75

-149

172

-179

Net sales Oct05

9M05 Mkt. Perf.

(mln - Data at end of period FX)

- AmSouth acquisition(3) 4,293(3)

US 32,63225,032 -581 3,887of which

TOTAL PIONEER incl. AmSouth 153,935

(3) Acquired on September 26, 2005, AuM $ 5,179.8 mln

129,614 7,794 12,234 152,270574

51

Finanza & Futuro

Rasbank

Credem + Euromob.

7,617Credem + Euromob.

1 Calculated on average PFAs2 AUMs, Securities in Custody, Bancassurance and liquidity3 Ranking taking into account only the 10 largest Italian players by Total Financial Assets as at 30.06.2005

Source: Assoreti

Net Inflows:788 Mln,3rd in Italy

Data as at 30.09.05 – Mln

TOTAL NET INFLOWS 2 & 3

Xelion 1,247

Mediolanum 1,043

Azimut 1,369

Banca Generali 1,570

530

Credem + Euromob. 668

223Rasbank

Fideuram + SPI 755

Data as at 30.09.05

1,965 PFAs,5th in Italy

NUMBER OF PFAs

Fideuram + SPI 4,143

Mediolanum 3,999

3,655

Banca Generali 4,889

Finanza & Futuro 1,076

Bipielle Network

1,070

Banca SAI 1,483

1,093

Tot. Fin. Assets:~13.4 bn,5th in Italy


TOTAL FINANCIAL ASSETS

Fideuram + SPI 61,094

Mediolanum 22,583

Rasbank 20,032

10,114Azimut

8,008

Xelion 13,401

16,761

Fineco 6,945

Net Inflows per PFA1:3rd among Top-

Players


NET INFLOWS PER PFA 2 & 3

Azimut 1.51

Xelion 0.62

Credem + Euromob. 0.62

0.37

Mediolanum

0.32

Finanza & Futuro

0.18

0.06

Fideuram + SPI

0.07

Banca Generali

0.26

XELION: SECOND BEST PLAYER IN NET SALES(14% MARKET SHARE) AND GOOD PRODUCTIVITY PER PFA

Rasbank

Xelion 1,974

Fineco 1,419

Fineco

Fineco

Banca Generali

Bipielle Network -0.06Bipielle Network 4,379

Finanza & Futuro 75

-67Bipielle Network

52



Retail Division

Corporate Division


New Europe Division

AGENDA

53

2.4%(1)

2.4%(1)

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

6.8%(1)

40.8%(1)

21.3%(1)

22.2%(1)

(1) Weight of the bank Total Revenues in 9M05 on Division Total Revenues – only UCI’s portion; balance due to UniLeasing Romaniaand Xelion Poland


Tax Rate (%)

NEW EUROPE DIVISION % ch. on 3Q04

+9.3

+14.3

+11.1

+5.3

+17.6

n.m.

-90.3

+22.8

-61.4

+64.4

+30.0

+4.2 pp

3.5%(1)

BREAKDOWNOF REVENUES

3Q05

344

200

544

-272

272

-0

2

219

-1

-53.4

161

19.6

% ch. on 2Q05

+9.5

-22.2

-4.8

-0.1

-9.1

n.m.

-29.7

+4.9

-76.4

+3.8

+18.4

-17 bp

9M05

960

647

1,607

-807

800

-69

7

583

-8

-147

404

20.1

y/y % ch.

+6.6

+22.5

+12.5

+4.9

+21.3

-34.7

-39.1

+26.0

66.4

+51.1

+27.5

+2.8 pp

Cost of Risk (bp) 54 -36 bp

ROE (%) 22.9 +2.6 pp

Cost/Income ratio (%) -2.8 pp50.1 +2.4 pp

50.2 -3.6 pp

NEW EUROPE DIVISION: 3Q05 & 9M05 INCOME STATEMENT

ITAS, Euro mln

54

NEW EUROPE DIVISION: 3Q05 & 9M05 TREND IN VOLUMES

% ch. on

Jun05

Sep05(Euro mln)

% ch. on

Sep04

Net Customer Loans

- o/w Pekao

Mortgages(1)

+4.2

+0.8

+19.1

+9.9

+8.5 +24.0

17,069

7,060

2,567

- o/w Pekao LC +11.0 +46.1758

Mutual Funds(3) +10.5 +52.97,007

- o/w Pekao(4) +9.9 +58.04,604

NET CUSTOMER LOANS 3Q05/2Q05: KFS +11.4%, Zaba

+5.7%, Bulbank +3.6% Sep05/Sep04: Bulbank +41.8%, KFS

+38.9%, Zaba +19.7%

(4) Pioneer Pekao Investment Management

At unchanged FX

MUTUAL FUNDS in PEKAO: Market share(4): to 33.8% up 1.1 pp y/y

(1) Management accounts in LAS

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

ITAS

(2) Total savings = Deposits + Mutual Funds

- o/w Pekao +2.8 +8.3

Total Savings(2) +3.5 +8.931,579

15,948

55

NEW EUROPE ASSET QUALITY

Net NPLs and Doubtful Loans as % of Total Net Loans 85.6

Jun05 Sep05

88.6

73.2 76.8

Coverage ratios (%)

On Gross Doubtful Loans

On Gross NPLs

Net NPL/ Loans %

Sep05

Total NE -0.81.6

ch. on Jun05 (pp)

Net Doubtful/Loans %

Sep05

ch. on Jun05 (pp)

4.0-0.5

At current FX

Zaba -0.11.4 2.2-0.1

Unibanka -0.31.1 2.2-0.5

Pekao -1.32.1 4.7-0.9

Bulbank 0.2 -0.11.2-

KFS -0.51.6 3.7-0.1

Cost of risk(1)

-36 bp

(bp, annualised)

90

54

9M052004

(1) Calculated as Net Loan Loss Provisions on Net Customer Loans at period-end, 9M05 data annualised

ITAS

-20 bp Excl. one off write back in

Zaba(2)

70

(2) Write-back of approx. 21 mln as release of liability funds for guaranteed loans

IAS

IAS

56

Interest margin (incl. div.)


Total revenues



Net income

ROE

Cost/income

TOTAL(1)

960

647

1,607

-807

800

583

22.9%

50.2%

Net provisions -76

(1) Balance due to roundings, other small companies & adjustments to be ITAS compliant

(ITAS Euro mln)

(UCI stake)

Net income(3) (UCI’s portion) 404

- of which: Staff costs -408

- of which: Other costs -288

NEW EUROPE DIVISION: 9M05 RESULTS BREAKDOWN BY BANK

- o/w: Net write-down of loans -69

UNI BANKA (77.2%)

16

17

34

-28

6

8

13.7%

82.6%

1

7

-12

-12

+1

BULBANK (86.1%)

56

31

87

-31

56

22.0%

35.2%

-7

42

36

-12

-12

-5

Group PEKAO (52.9%)

480

367

847

-434

413

22.3%

51.2%

297

-47

171

-225

-149

-47

206

93

298

-153

146

116

22.0%

51.2%

-4

95

Group ZABA

(81.9%)

-82

-49

-1

13

13

26

-20

6

4

8.0%

77.3%

-10

-9

-2

4

-2

175

59

234

-99

135

86

31.3

42.2%

-50

-38

-17

86

KFS(2) (50.0%)

-15

(2) Consolidated with proportional method (50%)

24

16

40

-32

8

7

8.2%

79.9%

-14

-12

1

6

Zivno (96.6%)

1

UniCredit Romania (99.9%)

Banks’ data gross of consolidation adjustment

(3) Net of consolidation adjustment

57

VERY GOOD PERFORMANCE OF NE BANKS IN 9M05

PEKAO

Revenue growth (+8.5% y/y, +5.1% 3Q05/3Q04) thanks to good performance of net interest income (+6.5% y/y, +4.1% q/q), benefiting also from significant lending growth: +9.9% y/y, +0.8% q/q (o/w mortgages(1) +46.1% y/y, +11.0% q/q & consumer loans +45.8% y/y, +13.4% q/q)

Stable costs, further efficiency improvement (C/I to 51.2%, -4.2 pp y/y)

Stock of Mutual Funds still increasing (+58.0% y/y, +9.9% q/q)

ZABA

Operating income: +18.6% y/y, mainly due to net interest income growth, positive impact of securities transactions and cost control (+2.5% y/y)

Strong lending growth: net loans +19.7% y/y, +5.7% q/q (o/w mortgages(3) +15.8% y/y, +8.5% q/q, consumer loans(3) +22.0% y/y, +8.0% q/q)

KFS

Operating income: +18.3% y/y, mainly thanks to net interest income and net commission growth

Significant lending growth: net loans +38.9% y/y, +11.4% q/q, (o/w consumer loans(3) +98.9% y/y, +25.5% q/q)

Further development of fee generating products: Mutual Funds +17% y/y, +1% q/q; ~100,000 cards and ~16,000 C/A packages sold in 3Q05

(1) Management accounts in LAS, only LC

ITAS - All figures stated at unchanged FX


(3) Management accounts in LAS, only bank

58

CONSOLIDATED INCOME STATEMENT: PEKAO

(3) Including provisions to reserve for general banking risk

(1) Including dividends(2) Including depreciations

(Euro mln)



Total revenues

Operating costs(2)

Operating income



Net income


Taxes

% ch. on 3Q04

3Q05

173

125

298

-145

153

-17

-1

111

-0

-24

% ch. on 2Q05

+7.9

+1.5

+5.1

-0.1

+10.6

+23.4

n.m.

+7.9

n.m.

+14.7

+19.7

+20.8

+20.1

+0.8

+46.6

+12.9

n.m.

+25.2

n.m.

+121.4

Data gross of consolidation adjustment

9M05

480

367

847

-434

413

-47

-2

297

-0

-67

y/y % ch.

+10.4

+6.2

+8.5

+0.3

+18.7

-16.6

n.m.

+16.4

-97.5

+87.4

Net income for the Group(4) 56 -21.1 +26.8 171 +28.9

(4) Net of consolidation adjustment

ROE 22.3% +1.3 pp

Cost of Risk 89 bp -28 bpCost/Income 49% -2.5 pp -9.3 pp 51.2% -4.2 pp

Tax Rate 18% +0.9 pp +6.8 pp 18.4% +6.1 pp

% ch. at unchanged FX

ITAS

59

(3) Including provisions to reserve for general banking risk

(1) Including dividends(2) Including depreciations

(4) At unchanged FX

CONSOLIDATED INCOME STATEMENT: ZAGREBACKA

(Euro mln)



Total revenues

Operating costs(2)

Operating income



Net income


Taxes


% ch.(4) on 3Q043Q05

78

43

122

-52

70

+16

+0

71

-1

-14

58

% ch. on 2Q05(4)

+20.6

+49.8

+29.7

-0.6

+67.7

n.m.

-47.4

+214.0

+120.7

+145.9

+214.0

+9.4

+43.9

+19.6

+7.9

+30.3

n.m.

-64.7

+71.8

-120.1

+89.0

+71.6

9M05

206

93

298

-153

146

-1

+1

116

-3

-26

95

y/y % ch.(4)

+3.2

+27.7

+9.7

+2.5

+18.6

-93.8

n.m.

+28.2

-147.4

+31.6

+28.7

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

ITAS% ch. at unchanged FX

9m05 consolidated results alessandro profumo - ceo milan - november, 10 th 2005

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