Unicredit S.p.a. · MIL:UCG
Unicredit — FY2005 Earnings Presentation
81 slides from Unicredit's earnings presentation, Mar 22, 2006
Slide 1: 2005 Group Results
2005 GROUP RESULTS Alessandro Profumo - CEO Milan, March 22nd 2006
Slide 2: Agenda
AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexe s 2
Slide 3: Solid pro-forma results supported by good y/y performances of UCI and HVB
SOLID PRO-FORMA(1) RESULTS SUPPORTED BY THE GOOD Y/Y PERFORMANCES OF BOTH UCI GROUP AND HVB GROUP STANDALONE Solid figures for the new Group, with pro-forma (1) net income at 3,383 mln (including pre-tax restructuring charges of 580 mln) Normalized(2) net income at 3,808 mln, thanks to the good
Slide 4: 2005 Group pro-forma net income at 3,383 mln
2005 GROUP PRO-FORMA NET INCOME AT 3,383 MLN GOOD CONTRIBUTION OF STANDALONE GROUPS IMPACTED BY INTEGRATION AND ONE-OFF CHARGES; PROPOSED DIVIDEND GROWING 7.3% Y/Y (mln) PURCHASE 2005 UCI 2005 PRO OF WHICH OF WHICH PRICE GROUP UNICREDIT HVB GROUP ALLOCATION STATED (1) FORMA(2) STNDALONE STNDALONE AN
Slide 5: Restructuring costs and adjustments: 580 mln net in 2005
RESTRUCTURING COSTS AND ADJUSTMENTS: 580 MLN NET IN 2005 AS THE ANNOUNCED 1,350 MLN COULD NOT BE ENTIRELY BOOKED IN YEAR ONE Restructuring costs and adjustments(1): breakdown by Group Pre-tax and minorities Restructuring costs after adjustments (mln) 870 amount to 580 mln in 2005 P&L 177 The ann
Slide 6: Creation of a big European player with critical mass in all key areas
CREATION OF A BIG EUROPEAN PLAYER WITH CRITICAL MASS IN ALL KEY AREAS LOANS (bn) RWA AUM 426.6 418.6 271.7 266.1 246.2 157.0 160.5 172.4 114.7 112.8 75.2 35.5 o/w o/w o/w GROUP UCI HVB BACA GROUP UCI HVB BACA GROUP UCI HVB BACA DIRECT DEPOSITS BRANCHES EMPLOYEES 462.2 7,184 132,917(1) 4,880 284.1 71
Slide 7: All solvency ratios well above 2005 plan targets
ALL SOLVENCY RATIOS WELL ABOVE 2005 PLAN TARGETS; 2006 CORE TIER 1 TARGET (6%) FULLY ACHIEVABLE Total RWAs lower than planned mainly thanks to: 2005 Dynamic Capital Management: capital 2005 Plan(1) generating actions carried out by the Targets New Group (e.g. Locat securitization, partial dispos
Slide 8: Agenda
AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexe s 8
Slide 9: UCI standalone: quality results with strong P&L and volume growth
UCI STANDALONE: QUALITY RESULTS WITH STRONG P&L AND VOLUME GROWTH UCI standalone (excluding HVB and restructuring charges) net income at 2,573 mln, growing significantly +24.4% y/y Operating income up 10.6% y/y, thanks to strong contribution by all divisions: Retail +24.0% Corporate & Invest
Slide 10: UCI standalone 2005 key highlights
UCI STANDALONE 2005 KEY HIGHLIGHTS: DOUBLE DIGIT GROWTH IN OPERATING INCOME DRIVEN BY A SOLID REVENUE INCREASE IAS mln y/y % % ch. on FY05 4Q05 ch.(1) 4Q04(1) Total Revenues 11,024 +8.0% 2,794 +8.3% Operating Income 4,979 +10.6% 1,170 +2.9% Net Income 2,573 +24.4% 456 +8.8% C/I Ratio, % 54.8% -1.1 p
Slide 11: Net interest income good performance with acceleration in last quarter
NET INTEREST INCOME GOOD PERFORMANCE WITH ACCELERATION IN LAST QUARTER ALSO THANKS TO YAPI ACQUISITION NET INTEREST INCOME excl. Dividends (mln) Q/Q % ch. Y/Y % ch. 1,433 +4.2% 5,394 +10.6% 1,375 1,293 1,293 Italy 1,006 991 1,056 1,070 +1.3% 4,122 +8.0% New Europe 287 302 319 363 +13.8% 1,272 +19.8%
Slide 12: Increased lending volumes in all divisions and growing market shares
INCREASED LENDING VOLUMES IN ALL DIVISIONS AND GROWING MARKET SHARES TOTAL CUSTOMER LOANS UCI LENDING MARKET SHARES(2) IN ITALY (IAS, bn) % ch. vs +14.9% SEP 05 +5.0% DEC 04 SEP 05(3) DEC 05(3) 152.3 160.5 +5.4% 139.7 On total loans 10.83% 10.77% 10.59% 60.0 62.6 +4.3% Retail 54.6 On M/L term loans
Slide 13: Net commissions accelerating quarter by quarter
NET COMMISSIONS ACCELERATING QUARTER BY QUARTER TO REACH THE HIGHEST EVER RESULT IN UNICREDIT HISTORY IN 4Q05 NET COMMISSIONS (mln) Q/Q % ch. Y/Y % ch. +2.1% 4,373 +12% +11.3% 1,113 1,163 +4.4% 1,026 1,071 +0.8% Excl. one-off on +10.9% tax collection(1) in 3Q05 Other +3.4% +9.7% +14.0% New Europe 14
Slide 14: Strong growth of Group AUM
STRONG GROWTH OF GROUP AUM THANKS TO POSITIVE MARKET DEVELOPMENT AND REMARKABLE SALES PERFORMANCE ACROSS ALL REGIONS A clear growth story based on Pioneer UCI TOTAL AUM (bn) global presence: +29 bn AUM in 12 % ch. vs months, of which 14 bn in the +22.6% Sep05 international business units(1,2) (+37
Slide 15: 4Q core income from financial transactions in line with previous quarter
4Q “CORE” INCOME FROM FINANCIAL TRANSACTIONS PRETTY IN LINE WITH THE PREVIOUS QUARTER INCOME FROM FINANCIAL TRANSACTIONS (mln) of which 74 mln one-off Y/Y % ch.(1) TOTAL from conversion of (excl. Exchangeable 296 Convertendo FIAT 956 -2.2% Ass. Generali effect) 225 253 Q/Q % ch. 182 -28.1% +1.7% Net
Slide 16: Operating costs: +2.3% y/y net of FX, perimeter and one-offs
OPERATING COSTS: +2.3% Y/Y NET OF FX EFFECTS, CHANGES IN PERIMETER AND ONE-OFFS FY05 OPERATING COSTS(1) 4Q05 OPERATING COSTS(1) mln mln Current FX, mln Constant FX, mln Current FX Constant FX exc. one-offs& exc. one-offs& perimeter changes perimeter changes +6.0% +8.5% 6,045 +2.3 +3.7% % 468 5,804 1
Slide 17: GBS Division: 2005 key achievements
GBS DIVISION: 2005 KEY ACHIEVEMENTS GBS DIVISION ITAS figures -1,554 ITALY -1,064(1) Staff Efficiency Headcount reduction: 1,554 vs June 2004 (launch of GBS staff rightsizing project) and 1,064 on Dec04 39,858 39,368 38,304 Jun04 Dec04 2005A Cost Management Review of most relevant Group Policies
Slide 18: Limited y/y growth of net loan loss provisions
LIMITED Y/Y GROWTH OF NET LOAN LOSS PROVISIONS; 4Q/3Q TREND AFFECTED BY EXTRAORDINARY RECOVERIES ACCOUNTED IN 3Q IN CORPORATE BANKING AND NEW EUROPE PROFIT (LOSS) & NET WRITE-DOWNS ON LOANS (mln) COST OF RISK(1) (bp) Y/Y % ch. 910 +2.5% 64 314 Reduction mainly 237 57 driven by Corporate and New Eu
Slide 19: Asset quality: limited growth of NPLs and doubtful loans
ASSET QUALITY: LIMITED GROWTH OF NPLs AND DOUBTFUL LOANS; REDUCED WEIGHT OF BAD & PROBLEM LOANS ON TOTAL LOAN PORTFOLIO TOTAL NET BAD & PROBLEM LOANS (mln) % ON TOTAL NET LOANS AND COVERAGE RATIOs (%) Past Due(1) 5,275 +3.5% -3.7% 69.0% 857 57.1% net of Past Due Coverage 68.2% 34.9% 56.9% 4,268 rati
Slide 20: Good operating performance and risk adjusted profitability of all divisions
GOOD OPERATING PERFORMANCE AND SIGNIFICANT RISK ADJUSTED PROFITABILITY OF ALL BUSINESS DIVISIONS 2005 OPERATING INCOME BY DIVISION 2005 RORAC(2) BY DIVISION Mln y/y % ch. +4.1% Corporate & IB 2,106 17.8% or +10.8%(1) Retail 1,641 +24.0% 21.3% New Europe 927 +19.4% 33.1% Private & AM 580 +29.9% 41.6%
Slide 21: Agenda
AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexe s 2 1
Slide 22: HVB Group 2005 key highlights: exceeding guidance
HVB GROUP 2005 KEY HIGHLIGHTS: EXCEEDING GUIDANCE DRIVEN BY GOOD COMMERCIAL PERFORMANCE AND COST CONTROL Stated 2005 net profit of 642 mln, impacted by 693 (1) mln of non-recurrent effects associated to the integration into UniCredit Group Adjusted net profit of 1,162(1) mln distinctly exceeding
Slide 23: 2005 net income adjusted for integration effects beats target of 1 bn
2005 NET INCOME ADJUSTED FOR INTEGRATION EFFECTS BEATS TARGET OF 1 BN STATED NET PROFIT IMPACTED BY NON RECURRENT-EFFECTS Pre-tax Profit mln 147 1,992 546 Additional loan-loss provisions 1,299 Restructuring costs 2005 stated 2005 pre-tax profit adjusted pre- tax profit Net Profit 642 1,162 (1) Res
Slide 24: Financial targets successfully met by HVB Group
FINANCIAL TARGETS SUCCESSFULLY MET BY HVB GROUP … HVB Group Y/Y % Y/Y % Ch.(1) net of FX effect 2005(1) Change(1) and first time (mln, if not differently specified) consolidation Good increase of core Total Revenues 9,697 +8.2 +4.5 revenues of which Net interest income – Resilient despite significan
Slide 25: Significant contribution from BA-CA
… WITH SIGNIFICANT CONTRIBUTION FROM BA-CA Y/Y % Y/Y % Ch.(1) BA-CA 2005(1) net of FX effect Change(1) and first time (mln, if not differently specified) consolidation Total Revenues 4,268 +10.3 +5.9 of which Net interest income – Strong CEE, Austrian Large Corp. excluding dividend 2,291 +4.7 -0.8 a
Slide 26: Solid growth of net interest income
SOLID GROWTH OF NET INTEREST INCOME NET INTEREST INCOME – excluding dividends (mln) 5,575 +5.1% 5,303 2,291 +4.7% o/w FY05/FY04 growth : BA-CA 2,188 +5.1%, despite weak economic environment, low 3,284 +5.4% 3,115 credit demand and high competitive pressure 2004 2005 GOOD COMMERCIAL PERFORMANCE FRO
Slide 27: Net commissions: best results ever
NET COMMISSIONS: BEST RESULTS EVER! NET COMMISSIONS (mln) 3,198 +14.1% 2,804 1,451 +18.3% FY05/FY04 growth(1): o/w BA-CA 1,227 Securities and custodial services (+19.4% y/y), 1,747 +10.8% foreign trade/money transfer (+15.7% y/y) and 1,577 lending operations (+10.9% y/y) 2004 2005 GOOD COMMERCIAL
Slide 28: +0.9% y/y adjusted cost growth
+ 0.9% Y/Y ADJUSTED COST GROWTH: EFFORT TO GAIN EFFICIENCY CLEARLY PAYING OFF HVB GROUP OPERATING COSTS +4.1% y/y growth net of first time consolidation(1) and FX effects: better than 2005 guidance of +6% +0.9% UCI pro-forma figures, mln +1.7% +1.5% +1.1% 58 6,608 102 6,608 +7.5% +2.3% 92 69 6,148
Slide 29: Total credit exposure and NPLs coverage ratio substantially in line
TOTAL CREDIT EXPOSURE AND NPLs COVERAGE RATIO SUBSTANTIALLY IN LINE 4Q/3Q HVB Group - Total Credit Exposure HVB Group – Coverage Ratio(2) (bn) (%) +0,1% 401.1 401.6 57.7% 56.4% 394.4 56.3% +1.8% -10 bp -1.4% pp 4Q04 3Q05(1) 4Q05 4Q04 3Q05(1) 4Q05 adjusted for initial application of modified IFRS HVB
Slide 30: RER portfolio: significant 5.9 bn downsizing since Dec04
RER PORTFOLIO: SIGNIFICANT AND SUCCESSFUL 5.9 BN DOWNSIZING SINCE DEC04, FULLY IN LINE WITH OUR GUIDANCE RER Portfolio – Total Credit Exposure (bn) 5.9 bn reduction of Total RER portfolio achieved in 2005, well above expectations, thanks to effective work- out policies and disposal of a first 15.4
Slide 31: German real estate exposure further declined
GERMAN REAL ESTATE (EXCL. RER): EXPOSURE FURTHER DECLINED, PRIMARILY IN PROFESSIONAL REAL ESTATE SEGMENT German Real Estate (excl. RER)(1) – Total Gross Credit Exposure (bn) Y/Y % Change 86.9 -2.4 % 84.8 -3.2 % -5.5 % 82.1 Real Estate (IMO(2)) 29.6 28.0 26.5 -10.5 % Corporate Customers (FFB) 17.4 17
Slide 32: HVB Group core portfolio: modest increase of total exposure
HVB GROUP – CORE PORTFOLIO(1): MODEST INCREASE OF TOTAL EXPOSURE WITH SLIGHT 4Q/3Q REDUCTION OF WEIGHT OF TOTAL NPLs Core Portfolio(1) - Total Credit Exposure q/q % (bn) change 388.3 390.3 +0.5 % 379.0 NPLs 13.1 12.9 -1.5 % 12.8 (9-10 Classes) NPLs slightly decreased +0.8 % since 3Q05 while ARF +
Slide 33: Significant increase of assets profitability
SIGNIFICANT INCREASE OF ASSETS PROFITABILITY TOTAL RWAs (EoP) (1) TOTAL REVENUES/ TOTAL AVERAGE RWAs(1) (bn) (%) 254.7 +36 bp 246.2 -3.3% 3.87% o/w BA-CA 75.9 3.50% 78.8 +3.8% 178.8 167.4 -6.4% 2004 2005 2004 2005 Reduction of total RWAs, driven by lower real-estate collateralized credit exposure
Slide 34: Agenda
AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexe s 3 4
Slide 35: Clear integration achievements in only four months
CLEAR INTEGRATION ACHIEVEMENTS IN ONLY FOUR MONTHS, SHOWING THE STRENGTH OF THE NEW GROUP GOVERNANCE & KEY PEOPLE MANAGEMENT New Holding structure (Divisional/Functional approach) with new governance rules leading to clear accountability/responsibilities Key people empowered (senior Holding Func
Slide 36: Focus on organisation and cost management
FOCUS ON ORGANISATION AND COST MANAGEMENT ORGANISATION & PROCESSES Asset Management – Centralisation of investment management, product range rationalization and branding integration New organizational structure in HVB: Creation of GBS within HVB consolidating IT, back office and organizational
Slide 37: 2006 divisional early wins
2006 DIVISIONAL EARLY WINS RETAIL More deterministic incentive schemes for commercial German network to be adopted first in Retail (in 2H06) Re-launch of consumer credit products in Germany (Sofortkredit) CORPORATE & SMEs Launch of the Cross border clients groups (CBCG) project Leasing as an
Slide 38: What has been done so far regarding new Group's structure restructuring
WHAT HAS BEEN DONE SO FAR REGARDING NEW GROUP’S STRUCTURE RESTRUCTURING Mandatory offers on minorities of BPH (no shares tendered) and Yapi Kredi (0.005% of share capital tendered) already concluded Bank of the Regions agreement renegotiated with AVZ and BR Funds (1): Replacement of the previo
Slide 39: Agenda
AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexes 3 9
Slide 40: Annexes
ANNEXES Details on 2005 UCI standalone results Divisional Reporting Retail Division Corporate & IB Division Private Banking & AM Division New Europe Division 4 0
Slide 41: Consolidation area and other accounting issues
CONSOLIDATION AREA AND OTHER ACCOUNTING ISSUES Initial consolidation of HVB Group from October 31, 2005, in compliance with IFRS3 – “Business Combinations” Throughout the presentation, the following definitions apply: STATED Group P&L includes HVB Group net results for November and December 20
Slide 42: Fair value driven balance sheet adjustments in first consolidation
“FAIR VALUE DRIVEN” BALANCE SHEET ADJUSTMENTS IN FIRST CONSOLIDATION OF HVB AND BA-CA RESULT IN 1.2 BN LOWER GOODWILL “FAIR VALUE DRIVEN” BALANCE SHEET ADJUSTMENTS Impacts In first time consolidation some assets and liabilities 1.2 bn lower goodwill of HVB and BA-CA have been booked at fair value
Slide 43: Very good performance of UCI in 2005
VERY GOOD PERFORMANCE OF UCI IN 2005 % ch on % ch on y/y% ch. IAS, mln 4Q05 3Q05 4Q04(1) FY05 (1) Total revenues 2,794 +0.2 +8.3 11,024 +8.0 - of which net interest income (excl. div.) 1,433 +4.3 +13.4 5,394 +10.6 - of which net commissions 1,163 +4.4 +13.7 4,373 +12.0 - of which trading income 96 -
Slide 44: Divisional contribution to consolidated results in 4Q05
DIVISIONAL CONTRIBUTION TO CONSOLIDATED RESULTS IN 4Q05 4Q05 RESULTS Retail Corporate Priv.& AM NE Total (mln - Data at current FX) IAS, mln Division Division Division Division Group(1) Total revenues 1,122 711 397 575 2,794 % Change vs 3Q05(2) +2.5% -12.5% +13.7% +1.6% +0.2% Operating costs -672 -2
Slide 45: Non operating items
NON OPERATING ITEMS 1Q05 2Q05 3Q05 4Q05 FY05 IAS, mln Operating income 1,215 1,303 1,291 1,170 4,979 Provisions for risks & -42 -34 -26 -52 -154 charges Net write-downs of loans -190 -237 -169 -314 -910 Profit/loss on investments 205 25 27 73 +330 Taxes -367 -340 -383 -306 -1,396 Minorities -44 -52
Slide 46: Asset quality: details by divisions
ASSET QUALITY: DETAILS BY DIVISIONS Retail Division Corporate & IB NE Division(1) Total Group(2) Division (IAS, mln - Data at end of period FX) Sep 05 Dec 05 Sep 05 Dec 05 Sep 05 Dec 05 Sep 05 Dec 05 Gross NPL 2,244 2,515 2,031 1,771 2,419 2,761 6,819 7,147 % change on Sep 05 +12.1% -12.8% +14.1% +4
Slide 47: Asset quality: details by divisions (cont.)
ASSET QUALITY: DETAILS BY DIVISIONS (CONT.) Retail Division Corporate & IB NE Division(1) Total Group(2) Division (IAS, mln - Data at end of period FX) Sep 05 Dec 05 Sep 05 Dec 05 Sep 05 Dec 05 Sep 05 Dec 05 Gross other bad & problem loans - 626 406 655 4 198 413 1,485 of which: Past Due 625 366 - 9
Slide 48: Annexes: Divisional Reporting
ANNEXES Details on 2005 UCI standalone results Divisional Reporting Retail Division Corporate & IB Division Private Banking & AM Division New Europe Division 4 8
Slide 49: Retail Division: FY05 results breakdown by company
RETAIL DIVISION: FY05 RESULTS BREAKDOWN BY COMPANY UniCredit Clarima UBCasa UniCredit TOTAL1 (mln) Banca Assicura Net Interest income (incl. div.) 2,240 170 131 2 2,509 Net non interest income 1,843 32 -4 11 1,882 Total revenues 4,083 202 127 13 4,391 Operating costs (incl. dep.) -2,608 -74 -60 -8 -
Slide 50: Retail Division: 4Q05 and 2005 income statement
RETAIL DIVISION: 4Q05 AND 2005 INCOME STATEMENT 4Q05 % ch. on % ch. on 2005 y/y % ch.1 (mln) 3Q05 4Q041 Net Interest income (incl. div.) 654 +3.8 +7.9 2,509 +8.1 Net non interest income 468 +0.5 +1.6 1,882 +9.1 Total revenues 1,122 +2.4 +5.2 4,391 +8.5 Operating costs (incl. dep.) -672 -2,4 +1.9 -2,
Slide 51: Retail Division: strong lending volumes increase
RETAIL DIVISION: STRONG LENDING VOLUMES INCREASE DRIVING NET INTEREST INCOME GOOD GROWTH Household mortgages +9.4% y/y (1)(2) EXCELLENT MARKET SHARE Consumer credit +37.4% y/y, with Clarima becoming (1) AND LENDING GROWTH (+14.5% #2 player in the Italian market Y/Y) … Small Business +10.0% y
Slide 52: Retail Division operational achievements
RETAIL DIVISION OPERATIONAL ACHIEVEMENTS SALES OF SEGR. ACCOUNTS INVESTING IN FUNDS, bn Continued focus on wealth management products 1.5 2.2 1.9 generating recurring revenues 4Q04 3Q05 4Q05 TOTAL STAFF -1,063 vs. June 04 Staff Reduction Plan Well on Track (~55% of 25,098 24,364 the total reduct
Slide 53: Retail Division - mortgages and consumer financing
RETAIL DIVISION - MORTGAGES AND CONSUMER FINANCING RESIDENTIAL MORTGAGES STOCK, bn NEW FLOWS, bn mkt share(1) 17.76% 16.76%(2) 16.85% +4.2% (2) +9.4% (2) 35.3 8.7 33.5 8.4 32.2 UBCasa 2.5 2.8 +14.0% UCB 5.9 5.9 +0.1% DEC04 9M05 DEC05 DEC04 DEC05 CONSUMER FINANCING STOCK, bn NEW FLOWS OF REVOLVING CA
Slide 54: Retail Division - small business stock, spread and customer acquisition
RETAIL DIVISION - SMALL BUSINESS STOCK, SPREAD AND CUSTOMER ACQUISITION STOCK, bn, ITAS SHORT TERM SPREAD(1) +10.0% 7.99% 7.96% 7.99% 7.98% 16.4 7.87% 14.9 16.0 7.59% 7.35% 6,99% 2004 3Q05 2005 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 QUARTERLY TRENDS IN SMALL BUSINESS CUSTOMER ACQUISITION 19,000 19,
Slide 55: Retail Division - customer loans and deposits breakdown
RETAIL DIVISION - CUSTOMER LOANS AND CUSTOMER DEPOSITS BREAKDOWN AND DETAILS OF SHORT TERM SPREADS EOP LOANS, Euro bn, ITAS +9.4% UCB AVG. MARK UP(3) (Small Business), % 60.3 57.6 55.1 4.8 5.43 5.34 5.23 4.6 +3.2% 3.8 4.94 Other loans 5.2 -10.2% 3.5 +10.2% Cons. credit 2.8 +24.7% 16.4 16.0 +2.5% SB
Slide 56: Retail Banking Division - asset quality
RETAIL BANKING DIVISION - ASSET QUALITY: SIGNIFICANT SHIFT FROM DOUBTFUL LOANS TO NPLs IN 4Q05; LOWER WEIGHT OF BAD & PROBLEM LOANS ON TOTAL LOAN PORTFOLIO TOTAL NET BAD & PROBLEM LOANS (mln) % ON TOTAL NET LOANS AND COVERAGE RATIOs (%) Coverage ratios 53.3% 53.1% 38.9% 39.5% Past Due(1) 2,335 +4.6%
Slide 57: Annexes: Divisional Reporting
ANNEXES Details on 2005 UCI standalone results Divisional Reporting Retail Division Corporate & IB Division Private Banking & AM Division New Europe Division 5 7
Slide 58: Corporate & Investment Banking: 2005 income statement by company
CORPORATE & INVESTMENT BANKING DIVISION: 2005 INCOME STATEMENT- BREAKDOWN BY COMPANY Other UBI UBM LOCAT companies TOTAL(1) (mln) Net Interest income (incl. div.) 1,326 -11 216 78 1.609 Net non interest income 580 708 60 115 1.463 Total revenues 1,905 697 276 194 3.072 Operating costs (incl. dep.) -
Slide 59: Corporate & Investment Banking: 4Q05 and 2005 income statement
CORPORATE & INVESTMENT BANKING DIVISION: 4Q05 AND 2005 INCOME STATEMENT 4Q05 % ch. on % ch. on 2005 y/y % ch.1 (mln) 3Q05 4Q04(1) Net Interest income (incl. div.) 427 +6.5 +11.0 1,609 +3.1 Net non interest income 284 -31.0 +1.7 1,463 +5.2 Total revenues 711 -12.5 +7.1 3,072 +4.1 Operating costs (inc
Slide 60: Corporate & Investment Banking - asset quality
CORPORATE & INVESTMENT BANKING DIVISION - ASSET QUALITY: SIGNIFICANT REDUCTION OF NPLs AND DOUBTFUL LOANS; LOWER WEIGHT OF BAD & PROBLEM LOANS ON TOTAL LOAN PORTFOLIO TOTAL NET BAD & PROBLEM LOANS (mln) % ON TOTAL NET LOANS AND COVERAGE RATIOs (%) Past Due(1) Coverage 50.0% 42.4% ratios 49.9% 31.8%
Slide 61: Corporate & Investment Banking segments: 2005 income statements
CORPORATE & INVESTMENT BANKING SEGMENTS: 2005 INCOME STATEMENTS CORPORATE BANKING(1) INVESTMENT BANKING(2) (mln) 2005 y/y % ch.3 2005 y/y % ch.3 Net Interest income (incl. div.) 1,621 +1.8 -13 -59.8 Net non interest income 751 +8.5 714 +2.0 Total revenues 2,372 +3.8 701 +4.9 Operating costs (incl. d
Slide 62: Corporate Banking: strong core performance
CORPORATE BANKING(1): STRONG “CORE PERFORMANCE” NET INTEREST INCOME (excl. dividends, mln) Good resilience of net interest income (+1.9% y/y) 1,621 +1.9% 1,591 Strong loan growth (from 64.9 bn to 70.8 bn, +9.2% y/y) mainly driven by M/L term (+10.7%(2)) offsetting lower lending spreads (from 2.2
Slide 63: Investment Banking: top-line growth with diversified revenue mix
INVESTMENT BANKING(1): TOP-LINE GROWTH WITH ENHANCED DIVERSIFICATION OF THE REVENUE MIX AS MAIN DRIVER TO HIGHER CONTRIBUTION TO CONSOLIDATED RESULTS TOTAL REVENUES (mln) Good revenue growth, driven by: +4.9% 701 Excellent results in Investment Banking (120 mln(2), +56.4% y/y), 668 mainly thanks
Slide 64: Annexes: Divisional Reporting
ANNEXES Details on 2005 UCI standalone results Divisional Reporting Retail Division Corporate & IB Division Private Banking & AM Division New Europe Division 6 4
Slide 65: Private & Asset Management Division: strong revenue growth
PRIVATE & ASSET MANAGEMENT DIVISION: STRONG REVENUE GROWTH DRIVEN BY INCREASING ASSETS AND MARGINS Significant growth of Tot. Financial Assets (bn) and excellent net sales in 2005 Pioneer (Asset Management): +18.6% vs Dec04 excl. 4.3bn +21% from AmSouth acquisition Net sales at 9.7 bn, vs 3.5
Slide 66: Big jump of operating income in 2005
BIG JUMP OF OPERATING INCOME IN 2005, +30% Y/Y, THANKS TO RISING REVENUES AND MARGINS IMPROVEMENT OPERATING INCOME (IAS, mln) Outstanding growth of gross operating income, +29.9% y/y, thanks to an 578 +29.9% excellent performance of revenue and costs rising at a much slower pace than 445 top-line
Slide 67: Private & AM Division: 2005 income statement by company
PRIVATE & AM DIVISION: 2005 INCOME STATEMENT – BREAKDOWN BY COMPANY UPB UniCredit Subsidiaries TOTAL (ITAS, Euro mln) PGAM Group Xelion Banca UPB + DIVISION2 UCI Lux Net interest income (incl. div.) 16 14 67 26 109 Net non interest income 895 71 262 40 1,267 Total revenues 911 85 329 66 1,376 Operat
Slide 68: Private & AM Division: 4Q05 and FY05 income statement
PRIVATE & AM DIVISION: 4Q05 AND FY05 INCOME STATEMENT (Euro mln - Data at current FX, % ch. 4Q05 4Q05/3Q05 4Q05/4Q04 2005 Y/y % ch. at fixed FX) % ch. % ch. Net interest income (incl. div.) 28 +8.8 +0.7 109 +7.1 Net non interest income 370 +14.1 +16.7 1,267 +16.6 Total revenues 397 +13.7 +15.4 1,376
Slide 69: Private & AM Division: total financial assets trends
PRIVATE & AM DIVISION: DETAILS ON TOTAL FINANCIAL ASSETS Y/Y AND 4Q/3Q TRENDS PRIVATE & AM DIVISION TOTAL FINANCIAL ASSETS (bn - data at current FX) 21.0% REMINDER: % CH. AT CONSTANT FX +18.6% ex AmSouth Dec05/Dec04: +18.5% +3.0% 209.4 Dec05/Dec04 excl. AmSouth: +16.1% 203.3 AmSouth Dec05/Sep0
Slide 70: Pioneer Group: net sales and AUM trend
PIONEER GROUP: DETAILS ON NET SALES AND AUM TREND (Feb06) AuM as at FY05 Net FY05 Mkt. AmSouth AuM as at Net sales AuM as at 31.12.2004 sales Perf. acquisition(3) 31.12.2005(1) Feb06 28.02.06(2) (mln - Data at end of period FX) Italy 92,809 7,404 7,818 108,031 513 109,656 International (ex-Italy) 7,
Slide 71: Xelion 2005 performance
XELION 2005 PERFORMACE: SECOND BEST PLAYER IN NET SALES (13% MARKET SHARE) AND IN PRODUCTIVITY PER PFA Data as at 31.12.05 – Mln Data as at 31.21.05 Data as at 31.12.05 – Mln Data as at 31.12.05 – Mln Tot. Fin. Assets: Net Inflows per PFA1: Net Inflows: 1,965 PFAs, ~14.8 bn, 2nd among Top- 788 Mln,
Slide 72: Annexes: Divisional Reporting
ANNEXES Details on 2005 UCI standalone results Divisional Reporting Retail Division Corporate & IB Division Private Banking & AM Division New Europe Division 7 2
Slide 73: New Europe Division: 4Q05 & FY05 income statement
NEW EUROPE DIVISION: 4Q05 & FY05 INCOME STATEMENT NEW EUROPE DIVISION P&L (at unchanged year end 2003 FX, including Yapi Kredi in 4Q05) 4Q05 on%3Q05 ch. % ch. on 4Q04(4) FY05 y/y % ch.(4) BREAKDOWN IAS, Euro mln OF REVENUES Net interest income(2) 330 +12.1 +32.8 1,174 +12.5 Net non interest income 1
Slide 74: New Europe Division: significant volume growth
NEW EUROPE DIVISION: SIGNIFICANT VOLUME GROWTH WITH POSITIVE IMPACT ON REVENUES INCREASE Figures and % ch. at unchanged FX(1) – P&L & BS in IAS Mortgages(3) (Euro mln) Consumer credit(3) (Euro mln) +45.7% STRONG LENDING +25.9% GROWTH: +38.5%(2) 2,769 2,091 2,327 2,199 2,593 Y/Y (+45.3% at current
Slide 75: Improved operating performance driven by increasing revenues
IMPROVED OPERATING PERFORMANCE DRIVEN BY INCREASING REVENUES; FURTHER ASSET QUALITY IMPROVEMENT Figures and % ch. at unchanged FX(1) – P&L in IAS Operating Income (Euro mln) Total Revenues +7.3% y/y, 3 benefiting from strong lending growth STRONG y/y % ch. (+11.6% incl. YKB) Operating Costs +6
Slide 76: New Europe Division: 4Q05 & FY05 income statement
NEW EUROPE DIVISION: 4Q05 & FY05 INCOME STATEMENT NEW EUROPE DIVISION P&L (at unchanged year end 2003 FX, excluding Yapi Kredi) 4Q05 % ch. on % ch. on FY05 y/y % IAS, Euro mln 3Q05 4Q04(3) ch.(3) Net interest income(1) 286 -2.8 +14.9 1,130 +8.2 Net non interest income 157 -26.8 -13.8 727 +5.9 Total
Slide 77: New Europe Division: 4Q05 & FY05 income statement
NEW EUROPE DIVISION: 4Q05 & FY05 INCOME STATEMENT NEW EUROPE DIVISION P&L (at current FX(1), including Yapi Kredi in 4Q05) % ch. on % ch. on y/y % 4Q05 3Q05 4Q04(4) FY05 ch.(4) IAS, Euro mln Net interest income(2) 368 +12.4 +41.0 1,290 +20.6 Net non interest income 207 -13.2 +7.6 837 +18.7 Total rev
Slide 78: New Europe Division: 4Q05 & FY05 trend in volumes
NEW EUROPE DIVISION: 4Q05 & FY05 TREND IN VOLUMES % ch. % ch. at unchanged Dec05 y/y % on FX (Euro mln) ch. vs. Sep05 IAS Net Customer Loans(1) 20,875 +20.4 +38.5 NET CUSTOMER LOANS - o/w Pekao 7,507 +5.3 +10.2 Dec05/01.01.05: KFS +62.2% (excl. Mortgages(2) 2,769 +6.8 +25.9 Yapi), Zaba +21.8% -
Slide 79: New Europe Division: FY05 results breakdown by bank
NEW EUROPE DIVISION: FY05 RESULTS BREAKDOWN BY BANK (IAS Euro mln) Group BULBANKUNI BANKA Group UniCredit KFS(2) Zivno TOTAL(1) PEKAO (77.2%) ZABA Romania (50.0%) (100%) (UCI stake) (52.9%) (86.1%) (81.9%) (99.9%) Interest margin (incl. div.) 598 82 23 262 20 263 32 1,290 Net non interest income 456
Slide 80: Very good performance of NE banks in FY05
VERY GOOD PERFORMANCE OF NE BANKS IN FY05 IAS - % ch. at unchanged FX PEKAO Revenue growth, with good performance of net interest income (+3.9% y/y), driven by improving asset mix (net loans: +10.2% y/y with strong sale of consume loans, +103.5% y/y, stock of mortgages(1) +40.7% y/y) Costs under
Slide 81: Consolidated income statement: Zagrebacka
CONSOLIDATED INCOME STATEMENT: ZAGREBACKA (Euro mln) % ch. on y/y % ch. IAS 4Q05 FY05 % ch. at unchanged FX 3Q05 (4) Net interest income(1) 59 -13.9 253 -2.5 Net non interest income 32 -52.0 158 +25.3 Total revenues 91 -32.8 411 +6.6 Operating costs(2) -65 +5.2 -243 +9.2 Operating income 26 -65.1 16