Merrill Lynch Banking & Insurance Conference London - October, 8 th 2003

1. UNICREDITO ITALIANO GROUP“Growth through Specialisation, Quality and Innovation”Alessandro Profumo - CEO Merrill Lynch Banking & Insurance Conference London - October, 8th 2003

2. AGENDA Group Highlights Divisional overview Retail Division Corporate Division Private & Asset Management Division New Europe Division

3. In the last three years financial institutions faced a tough macroeconomic scenario, characterised by modest GDP growth rates, strong contraction of interest rates, low returns and higher volatility in the financial markets • Thanks to its diversified portfolio of businesses, product innovation capabilities and commercial effectiveness, UCI was able to continue to grow and generate value • UCI forecasts only a moderate recovery of the economic cycle starting from 2004 and has assumed a conservative scenario for its 2003-2006 strategic plan • Leveraging on its client-focused organisational model, UCI will grow and create value for shareholders through the implementation of its clearly defined segment-tailored strategies even in a low growth macroeconomic environment … • … being ready to exploit the opportunities arising from an improved scenario READY TO GROW

4. UCI ORGANISATIONAL MODEL: CUSTOMER DRIVEN DIVISIONALISATION… Weight on 1H03 Group revenues pre Corporate Centre and elisions 45.7% 30.9% 8.3% 15.1% Corporate division Private & AM division New Europe division Retail division Pekao Zagrebacka Clarima(1) UBM Pioneer Bulbank UniCredit Banca per la casa(2) BMC(3) Xelion KFS TradingLab Locat(4) UniBanka UC Romania • Employees(5) (Jun 2003) • o/w Italy • o/w New Europe(5) • 70,356 • 40,228 • 30,128 • Branches(5) (Jun 2003) • o/w Italy • o/w New Europe(5) • 4,598 • 3,248 • 1,350 Zivnostenska (1) Consumer Finance (2) Retail mortgages (3) M/l term corporate financing (4) Leasing (5) KFS at 100%

5. 10,284 8.6 54.6 50 Revenue growth(mln) Cost/Income, % 4,670 11.5 Op. Income growth(mln) 4,728 8.0 Retail Division 2,734 9.9 Corporate Division 0.29 14.0 EPS 1,072 10.2 Private & AM Division 1,830 8.8 New Europe Division … LEADING TO SUSTAINED EPS GROWTH, SOUND EFFICIENCY RATIOS AND HIGH PROFITABILITY, WITH SIGNIFICANT VALUE CREATION FOR SHAREHOLDERS … CAGR 02-06 2002 2006 2002 7.2 6.8-7.2 Core Tier 1 ratio, % 17.2 21 ROE, % PAY-OUT RATIO FROM 55.2% IN 2002 TO AN AVERAGE 65% IN THE 2003-2006 TIMEFRAME

6. Intra-group synergies Pioneer UBI Retail business UCB UPB Corporate business UBM UBI Private Banking business Pioneer UBM TradingLab New Europe ... THROUGH TAILORED STRATEGIES FOR DIFFERENT CUSTOMER SEGMENTS AND GEOGRAPHIES High importance Revenue growth Low importance Existing customers New customers Efficiency Risk mgmt

7. AGENDA Group Highlights Divisional overview Retail Division Corporate Division Private & Asset Management Division New Europe Division

8. GROWTH FROM BOTH EXISTING AND NEW CUSTOMERS ON THE TOP OF MARKET TREND, WITH PARTICULAR FOCUS ON HIGH GROWTH/HIGH VALUE BUSINESSES, LEVERAGING ON SPECIALISATION More business with existing customers New business from new customers THROUGH • Focus on high growth/high value businesses; in particular: KEY GROWTH DRIVERS FOR THE MARKET: • Decreasing households’ savings rates (from 15.8% in 2003E to 15.3% in 2006E) coupled with higher consumptions leading to a 8.1% 2003-2006 CAGR in total households’ loans1 • Retail mortgages • Alignment to Eurozone averages of weight of retail mortgages and consumer credit on GDP in Italy: • Weight of retail mortgages on GDP in Italy: 12.2% in 2002 vs. 34.7% in Eurozone2 • Weight of consumer credit on GDP in Italy: 2.7% in 2002 vs. 8.2% in Eurozone2 • Consumer credit • Quality approach to Small Business thanks to specialisation 1 Source: Bank of Italy. Data including only consumer households 2 Source: Bank of Italy and ECB; data calculated taking into account consumer credit granted only by banks (financial enterprises not included)

9. RESIDENTIAL MORTGAGES: A DEDICATED BANK TO GROW FASTER THAN MARKET Residential mortgages: Market growth in Italy (CAGR)1 UCI Banca+UBCasa (stand alone) Key figures UCI Banca+UBCasa (stand alone): Market share evolution2 18.8% • ~21 bn residential mortgages as at 30.6.2003 (+6.4% on year-end 2002) ~10% 2002 ~12% • ~2.9 bn flow of new residential mortgages in 1H03 (1.3 bn in 1Q and 1.6 bn in 2Q, +23% QoQ) > 15% 2006 + 25% 1998-02 2002-06E LEVERAGING ON: UB CASA: a dedicated and integrated (production + distribution) “mortgage centre” with a target of ~70,000 new customers for the division by 2006 OUTSTANDING FOR: • Product innovation, as a response to more sophisticated and rapidly changing customer needs • Processing of mortgage workflows: 3 days on average for response, 20 days on average for granting • Credit scoring systems • Multichannel distribution: captive UCI Banca network, proprietary dedicated branches, mortgage brokers, real estate agent networks (Tecnocasa, FIAIP), PFAs networks, non-captive banking and financial intermediaries 1 Source: Bank of Italy for 1998-2002 data; internal estimates for 2002-2006 CAGR 2 Calculated on total M/L term consumer households’ loans – Source: Internal estimates on Bank of Italy data

10. ACQUISITION1 OF ABBEY NATIONAL-ITALY: A SUCCESSFUL INITIATIVE TO BECOME LEADER AMONG THE SPECIALISED PLAYERS IN THE DOMESTIC MARKET, PERFECTLY FITTING WITH THE STRATEGIC PLAN UBCasa + ABNI ABNI Key Highlights • Wider product range • Enhanced distribution capabilities through: • proprietary branches in key-cities • dedicated alternative channels • Acceleration of growth, becoming: • Leader among specialised players in Italy • 4th in the overall domestic market for flows of new mortgages granted in 2003, with ~5.5% market share • N° of customers: 48,000 • Mortgage portfolio2: 3.9 bn • Market Share3 in 2002: 3.2% • Market Share3 Jan-Aug03e: 4.0% • Good asset quality thanks to an efficient in-house-made scoring system: combined analysis of real estate properties value and cash-flow capability of the borrower • Strong multichannel sales approach: • 14 branches located in the main Italian cities • 60 Financial Advisors • Many distribution agreements with banks, real estate brokers, PFAs networks and other financial intermediaries UCI Banca + UBCasa + ABNI • ~15% market share in Italy for total outstanding residential mortgages, starting point for additional growth 1 Acquisition expected to be completed before year-end and subject to approval by the relevant authorities 2 As at 31 August 2003 3 Calculated on flow of new mortgages granted in the periods

11. STRONG CONTRIBUTION OF CONSUMER LENDING TO THE DIVISION’S GROWTH … Consumer lending: Market growth in Italy (CAGR)1 Clarima + UCI Banca: Key figures Clarima + UCI Banca: Market share evolution • ~3.8 bn consumer loans as at 30.6.2003 (+10% vs year-end 2002), of which: • ~2 bn pure consumer credit • ~1.8 bn non-finalised short-term consumer loans 15-20% 13.5% 2002 ~7.5% > 9% 2006 • ~136,000 clients for Clarima as at 30.6.2003 + 20% 1995-02 2002-06E LEVERAGING ON: 3 MAIN DISTRIBUTION CHANNELS PARTNERSHIPS AND DIRECT MARKETING SPECIALISED FINANCIAL SHOPS UCI Banca Key goals: Key goals: Key goals: • ~800,000 net acquisitions of customers from 2003 to 2006 • Clarima as the “consumer credit specialist” of the Group • Exploitation of a dedicated and alternative distribution channel traditionally strong in Italy • Full commercial integration with UCI Banca • Revolving cards / Total cards ratio higher than 50% (ratio higher than 60% as at 30.6.2003) • Maximisation of UCI Banca customers potential as for credit cards and personal loans (~31,500 Clarima cards out of 1.1 mln Total cards as at 30.6.2003) • Focus on “credit at point of sale” 1 Source: internal calculations on Bank of Italy, Assofin and Eurofinas data for 1995-2002 CAGR; internal estimates for 2002-2006 CAGR

12. … THANKS TO TAILORED STRATEGIES FOR EACH DISTRIBUTION CHANNEL; FIRST POSITIVE EVIDENCE IN 1H03 RESULTS STRATEGIC GUIDELINES 1H03 COMMERCIAL RESULTS • New selected partners strong for distribution capability, customer base and brand • 23 strong partnerships as at 30.6.2003 PARTNERSHIPS AND DIRECT MARKETING • ~45,000 net new clients (from 91,000 as at 31.12.2002 to 136,000 as at 30.6.2003, +49%), of which ~70% from non-captive channels • Low acquisition costs per client thanks to high integration of product/model with the partner • Share of “revolving clients” on total direct channel new clients >80% • ~Euro 1,200 average outstanding loans per customer1as at 30.06.2003 • Leverage on cross-selling • Revolving credit cards/Total outstanding credit cards around 50%, vs 7% as total market average • Increase of penetration of Clarima cards on UCI Banca customer base • 21,735 outstanding finalised loans as at 30.6.2003 vs 12,250 as at 31.12.2003 • Conversion of UCI Banca “optional” cards into revolving cards UNICREDIT BANCA • ~2.7 mln transactions with credit cards in 1H03 vs 1 mln in the whole 2002, accounting for more than Euro 134 mln vs Euro 88 mln in the whole 2002 (+53%) • Increased share of wallet of UCI Banca clients (from 18% in 2002 to 31% in 2006) for personal loans SPECIALISED FINANCIAL SHOPS • Opening of 9 shops in selected high potential cities in January 2004 • Significant investments (~2 mln) to strengthen credit scoring systems in 1H03 • Other 15-20 openings starting from 2005 1 Calculated on active customers as at 30.6.2003

13. SPECIALISED HIGH QUALITY APPROACH TO SMALL BUSINESS IN ORDER TO INCREASE CUSTOMER PENETRATION AND EXPAND THE CLIENT BASE Small Business lending: UCI Banca Key figures Small Business lending: UCI Banca Market share evolution1 • ~13 bn loans as at 30.6.2003 (+1.0% on year-end 2002) 2002 < 7% 2006 > 8% • ~550,000 clients + 20% THANKS TO: Leveraging on specialisation to grow penetration: An EXAMPLE – 1st “Utilizza di Più” Campaign2 • Launch new segment-focused Imprendo packages Target • Strengthening of specialised branches Results • ~ 103,000 customers involved (minimum Credit line 5,000 Euro) • Good credit quality (top three – out of five – performing loan classes) 1,4 bn +15% • Leverage state of the art credit skills to: • grow penetration on existing customers through specific and targeted credit campaigns (i.e.: Utilizza di Più) • expand the client base – Target: +230,000 customers by year end 2006 1,2 bn Campaign • Call centre & account rep contact • Packaged pricing offer linked to new credit product • Four months time frame starting 01.02.03 Outstanding at 31.01.03 Outstanding at 31.05.03 1 Calculated on loans to sole proprietorships with up to 5 employees (=“Famiglie produttrici”), as a good proxy of the whole SB segment 2 A second campaign on other 62,000 clients, started at 28.8.2003 to last until year end, has shown in the first month a 9.6% increase of the outstanding loans (from 821 mln to 900 mln)

14. AGENDA Group Highlights Divisional overview Retail Division Corporate Division Private & Asset Management Division New Europe Division

15. GROWTH IN SME’S MARKET THROUGH SPECIALISED APPROACH AND BETTER PENETRATION OF EXISTING CUSTOMER BASE • Increase the share of wallet of selected existing customers and • acquisition of new customers in selected areas through the development of a full range of high-value added products in order to become the main financial partner for integrated lending and services • Low risk profile, full implementation of Basel II guidelines • Strong cooperation between UBI and UBM in order to offer high value added product and services

16. UBI’S CORE CUSTOMER BASE REPRESENTS OVER 76% OF THE BANKING SYSTEM’S TOTAL OUTSTANDING LOANS WITH ROOM FOR FURTHER GROWHT IN LENDING COVERAGE … High degree of client coverage • The total amount of loans of UBI customers, either with UBI or with other banks, represents 76% of total loans • In historical areas3 the lending coverage increases to around 90% • Room for further growth in coverage remains in some rich areas, such as Lombardy, and in some provinces in the North East Ch. in Lending coverage1(Jun03/ Dec02, bp) UBI Core Clients Total Market Client coverage Lending coverage1 Jun03 56,067 117,321 47.8% 76.2% +60 Total …except in Lombardy… 10,248 34,688 29.5% 66.8% +40 Lombardy …except in the South2 5,702 15,821 36.0% 57.5% Southern Italy -190 Source: UBI calculations on internal data and Credit Bureau data 2 Abruzzo, Basilicata, Calabria, Campania, Molise, Apulia,Sicily, Umbria 1Lending coverage refers to the amount of total outstanding loans of UBI customers (both towards UBI and other banks) relative to the total stock of outstanding loans on the corporate market. 3 Emilia-Romagna, Friuli-Venezia Giulia, Piedmont, Trentino-Alto Adige, Aosta Valley, Veneto

17. … AND IN REVENUE STREAM GENERATED BY THE NON “TOP 10%” UBI’S CORE CUSTOMERS Revenues concentration • The top 10% of UBI core customers generates: • over 60% of total outstanding loans • over 50% of UBI’s total revenues • over 50% of commission margins (net of derivatives) Outstanding loans (%) Total revenues (%) Number of clients 1H03 63.9% 54.5% 5,607 I Decile 76.4% 14,017 81.6% I Quartile 12.8% 16.8% II Quartile 14,017 4.1% 6.2% 14,017 III Quartile • The top 10% is fairly well distributed among large, medium and small enterprises 1.6% 0.6% 14,016 IV Quartile 100% 56,067 100% Total Source: UBI calculations on internal data

18. FIRST HINTS OF IMPROVEMENT IN LENDING MARKET SHARE IN 1H03 LOANS System % ch. Jun03/Mar03 UBI % ch. Jun03/Mar03 Dic02 Jun03 Mar03 (Euro mln) Largest 42 groups 6,077 4,990 6,545 +7.7 +4.3 7,450 6,477 7,532 Other corporates1 +16.3 +2.7 SMEs 21,489 20,802 22,203 +6.7 +1.0 Public sector and others2 5,174 4,130 4,754 +15.1 +3.8 Total 39,103 37,486 41,034 +9.5 +2.6 • Loans to SMEs growing slightly faster than the system: system’s data show an increase of 1% (Jun03/Mar03) against +6.7% of UBI loans to SMEs • Largest 42 groups: increase mainly due to the “Autostrade”and Fidis deals • Share of wallet: 10.6% in 1H03 (from 10.2% in Dec02) in line with our 3 years plan target of 13% and long term target of 15% Source: Credit Bureau 1 With turnover > 50 mln 2 Mainly financial companies and public entities as defined by Bank of Italy

19. ORGANISATIONAL MODEL AND PRODUCT INNOVATION AS KEY SUCCESSFUL FACTORS FOR CORPORATE DERIVATIVES BUSINESS GROWTH, THAT CAN BE EXPLOITED IN THE OTHER BUSINESS LINES Corporate derivatives total revenues • KEY FACTORS FOR A SUSTAINABLE REVENUE STREAM: % ch. on 1H02 1H03 (Euro mln) +27.7 UBM 281 • Market leadership with a substantial market share • Entry barrier: internal flexible risk management tool able to cater future customer needs • Mastery in risk management recognised by S&P assigning to UBM the same long term credit rating of the group (AA-) • Margin per unit notional not expected to be under further pressure; product innovation will boost margins again • Strict quality control in sales to favour recurrent custom • Target customers in 3 years plan represents approx. 55% of group’s potential customers base (20,000 vs. 36,000) 189 +28.8 UBI 474 +29.3 GROUP TOTAL Efficient integration between product specialists and relationship managers Product specialists 14 Corporate finance 887 Relationship managers 64 Derivatives Foreign services 22

20. AGENDA Group Highlights Divisional overview Retail Division Corporate Division Private & Asset Management Division New Europe Division

21. GROWTH THANKS TO FIRST-CLASS PRODUCTS AND SERVICES, LEVERAGING ON STRONG INTEGRATION BETWEEN PRODUCTION AND DISTRIBUTION Growth from existing customers Growth from new customers THANKS TO: • Portfolio optimisation and increased share of wallet with existing customers • Acquisition of new customers leveraging on a widespread presence in attractive areas and on distinctive competitive advantages • Independence of advice • Quality of service • Easiness and proximity to the client • World-class performance thanks to active management • Wide offer with High-Alfa products • Support fron/to UCI’s networks in Italy and new partnerships with third parties • Strong distribution capabilities in US and in the “International” business units

22. WIDESPREAD NETWORK, CONCENTRATED IN THE MOSTATTRACTIVE ITALIAN “PROVINCES”, AND DISTINCTIVE COMPETITIVE ADVANTAGES AS KEY GROWTH DRIVERS Distribution of the first 36 Italian “provinces” by potential for private banking and presence of specialised competitors UCI PB COMPETITIVE ADVANTAGES • VS Local domestic players: • Higher service quality • Wider offer of products/ services • Superior skills • Synergies with other Group companies • Dedicated business model • VS National domestic players: • Focused strategy • VS Foreign players: • Wide-spread presence all-across the country UniCredit PB is present in 59 (out of 103) “provinces”, representing 88% Total Private Banking Financial Assets in Italy • Deeper knowledge/ understanding of the clients

23. 1H03 RESULTS FULLY CONSISTENT WITH THE PLAN TARGETS; ING PROVIDING ADDITIONAL SALES CAPACITY AND PERFECTLY FITTING WITH THE COMPANY STRATEGY Net Sales • Net sales 77% up YoY, ranking Xelion 1st in Italy for Total Net Sales in 1H03 (around 15% market share) and 2nd for Net sales per PFA2 +77% (Euro mln) ~1,300 1,008 • Improving QoQ trend (Euro 521 mln in 2Q vs Euro 487 mln in 1Q), with increasing weight of AM products3(83.2% in 2Q vs 67.8% in 1Q) ING 570 ING ADDS: 1H02 Pro-forma1 1H03 1H03 Pro-forma with ING • Important additional sales capacity (~Euro 300 mln in 1H03) PFAs Fin. Assets per PFA (Euro mln) • Streamlining of the Network: • Exit of “marginal” PFAs (Euro 1.36 mln Average Tot. Financial Assets of lost PFAs) • Recruitment of 125 new PFAs, generating on average Euro 2.9 mln net sales in 1H03 ~4.1 3.7 2.7 ~2,360 1,833 1,610 ING -223 ING ADDS: 31.12.2002 Pro-forma1 30.6.2003 30.6.2003 Pro-forma with ING • 750 PFAs, reinforcing Xelion’s 5th position among Italian PFAs networks Total Fin. Assets +23% • Total Financial Assets 23% up vs 31.12.2002 ~9,600 (Euro mln) • Weight of AM products3 from 70.5% as at end of March to 71.1% as at end of June (+68 bp) ING 5,988 4,883 ING ADDS: • ~Euro 3.6 bn Financial Assets (of which more than 90% in AM products3), making Xelion the 5th asset gatherer in Italy by Fin. Assets 31.12.2002 Pro-forma1 30.6.2003 30.6.2003 Pro-forma with ING (1) Pro-forma including data of “former Xelion”, UniCredit Banca and OnBanca (2) Among top-players for Total AUMs as at 30.6.2003; 5th taking into account all the Italian players (3) AM Products: Mutual Funds + Sicav + Segregated Accounts + Insurance products

24. 10 9 8 7 6 5 4 3 2 1 0 UBS AXA Dexia Pictet Russell Fidelity Vontobel PIONEER Templeton JP Morgan ING Baring BNP Paribas Merrill Lynch Credit Suisse Credit Agricole STRONG NET SALES, TOP-CLASS PERFORMANCESAND FOCUS ON HIGH VALUE ALTERNATIVE INVESTMENTS: THREE MILESTONES TO MEET THE PLAN TARGETS Standard and Poor's Fund Rankings 2002 – Funds sold in Europe (Number of funds of different categories with top 10 rankings by Asset Manager) 2003 Net Sales (Jan-Aug) 2003 Perf. effect (Jan-Aug) Total AuMs as of 31.08.2003 % Ch. of AuMs on 31.12.2002 (Euro mln) 2,327 2,265 85,351 +5.7 Italy 996 327 5,064 +35.4 International (ex-Italy)1 2,538 1,839 22,042 +24.8 US 2,819 2,741 24.085 +30.0 US in USD 906 -16 2,413 +58.4 New Europe 6,767 4,415 114,870 +10.8 TOTAL PIONEER 470 77 2,064 +36.1 Alternative Investments2 • ~11% AUMs growth in the first 8 months of 2003, in line with the plan target (+12% 2003-2006 CAGR) • Excellent +36.1% growth of Hedge Funds vs Dec. 2002, with increased weight on Total AUMs (1.8% vs 1.5% as at Dec. 2002) in line with the plan growth path (3.6% as at year end 2006) • Acquisition from Oak Ridge Investments of 2 growth funds totalling around USD 24 mln and with high Morningstar ratings3, in order to complete the product range adding 2 quality growth funds to Pioneer’s strong reputation in value funds 1 Including Momentum 2 Data already included in the other business areas 3 Oak Ridge Large Cap Equity Fund (5 stars from Morningstar) and Oak Ridge Small Cap Equity Fund (4 stars from Morningstar)

25. AGENDA Group Highlights Divisional overview Retail Division Corporate Division Private & Asset Management Division New Europe Division

26. GROWTH LEVERAGING ON THE OPPORTUNITY OF AN UNDERPENETRATED BANKING SYSTEM AND ON UCI’S EXPERIENCE • Positive gap of New Europe in terms of GDP growth, compared to EU market, both in the recent past and in the forthcoming period • Different strategic focus with: CLEAR LEADER BANKS1: profitability growth and consolidation of existing position • Focus on most profitable (golden) customer base: Private, Affluent and Small Business through offer of new value added products (i.e. AUM) to existing clients and new customer acquisition • Selective approach for Large Corporate (except Bulgaria); cost control and cross-selling for mass market; no significant customer base increase is expected RISING LEADER BANKS2: quick and healthy market share growth • Aggressive new customer acquisition campaigns for both Retail and Corporate through enlargement of golden customer base with final goal of being in the “top 5” of the market • Improvement in risk management and efficiency • Development of a common advanced product shelf, creation of joint factories and implementation of tailored segment service models supported by homogeneous IT systems and applications • Future growth driven mainly by organic growth (with some potential acquisitions) 1 Pekao, Zaba and Bulbank 2 UniBanka, KFS, UCR and Zivno

27. 4% 4% 5% 29% 14% 14% 87% 43% New Europe4 EU3 UCI IS PRESENT IN MAJOR NE COUNTRIES WITH SIGNIFICANT SCOPE FOR GROWTH IN A STILL UNDERDEVELOPED RETAIL MARKET BANKING PENETRATION in 2002 Weight of country’s GDP on Total NE area GDP in 2002 (%) (Loans+Deposits)/GDP Share loans retail over total loans Cards per ths inhabitants2 Poland 28.3 1,280 27.4 52% 224% Turkey Czech Rep. 10.5 29% 349 66% Hungary 10.0 6.8 Romania New Europe1 EU EU New Europe1 New Europe1 Slovakia EU 3.6 3.4 Croatia Breakdown of retail financial assets Non Interest Income/Total revenues in 1H03 (%) • Mortgages and consumer credit expected to be the key retail products • Lower weight of Asset Management, expected to partially substitute deposits Slovenia 3.3 Bulgaria 2.4 Life Insuran. Baltics5 4.3 Pension Funds NE GDP (bn) 702 Mutual Funds 45.0 • Leading position of UCI in Poland, main country in NE area for GDP • GDP growth in NE +4.6% (cagr 03-06) 34.8 Retail Bank Deposits UCI’s 3 Italian Banks UCI’s NE banks 1 Poland, Croatia, Hungary, Estonia, Slovenia, Czech Rep. Turkey, Latvia, Bulgaria, Romania, Slovakia, Lithuania 2 2001 figures 4 Countries with UCI’s presence 5 Lithuania, Latvia, Estonia 3 2001 data considering France, Germany, Italy, Spain and UK as proxy for EU

28. PIONEER BANCASSURANCE STRENGTHENED SYNERGIES WITH INVESTMENT AND INSURANCE PRODUCT PROVIDERS IN NEW EUROPE Mission Activities • Pioneer market leader in Poland with around 25% market share • Bulbank first bank to distribute foreign mutual funds in Bulgaria • Distribution or advisory agreements in place or under discussion (UCR and KOC) with NE Banks and group local Asset Managers To extend financial product offer in order to guarantee portfolio diversification • Launch of structured TD (capital and minimum yield guaranteed) in Pekao, Unibanka and Zaba and negotiations in progress in the other Banks (Bulbank and Koc) To introduce product innovation in order to meet customer needs in term of security and yield • Innovative product launched with strong success in different forms (also linked to Pioneer funds) TLAB - UBM • Pre-joint venture agreement in Poland (with Pioneer asset manager) and distribution agreements for life and non life products in place (Unibanka, Bulbank, Zaba, Koc) or under discussion in the other Banks To complete financial products offer with a segmented insurance offer with a particular focus on Life insurance • Pekao best life insurance seller in Poland thanks to the Unit linked products

29. Gross Loans (Euro bn) Deposits (Euro bn) 8.7% 14.8% +2.4% -0.5% 14.1 21.1 13.8 21.0 Dec02 1H03 CAGR 02-06 Dec02 1H03 CAGR 02-06 DECREASING COST OF RISK: Net Provisions/Net Loans (bp) SUCCESSFUL ACHIEVEMENT IN THE FIRST HALF 2003 WITH HIGH GROWTH IN AUM AND DECREASED COST OF RISK BP target VOLUMES (at unchanged FX) Assets under Management1(Euro bn) • Higher Gross Loans on Deposits ratio to 67.2% in 1H03 (from 58.4% in 2002) well on track to achieve 2006 target (72.7%) 44.0% +34.4% 2.0 1.5 Dec02 1H03 CAGR 02-06 COST OF RISK AND EFFICIENCY 2006 REVENUE TARGETS Employees3 (cagr 02-06) 31,006 30,128 TOTAL REVENUES: +8.8% 28,188 1882 158 119 Retail 11.3% Corporate 17.7% 2002 1H03 2006 2002 1H03 2006 1 New Europe business area of Pioneer 2 Excluding the impact of 2002 extraordinary provisions 3 KFS 100%