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UniCredit 2004 Financial Results Overview

Discover the highlights of UniCredit's 2004 achievements, including improved profitability, strong volume growth, and enhanced revenue quality. Learn about market share gains, cost management, and stability in earnings. Explore the detailed breakdown of financial metrics and strategic initiatives that position UniCredit for success in 2005.

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UniCredit 2004 Financial Results Overview

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  1. 2004 CONSOLIDATED RESULTSAlessandro Profumo - CEO Milan - March, 15th 2005

  2. 2004 ACHIEVEMENTS • Improved profitability (Net Income: +8.7% y/y) • Strong volumes growth (AuM: +9.0% y/y, Loans: +10.8% y/y) provides a sound platform for 2005 • Strengthened competitive positioning in Italian banking (market share on loans(1): +37 bp y/y) • Revenue mix enhances stability and predictability of earnings: interest income excl. dividends up 3.7% y/y • Effective cost management (headcount down 677 on Jun04) • A well diversified business portfolio supports profitability (New Europe net income: +29% y/y, Private & AM net income: +59% y/y) (1) Pro-forma, including 2.5 bn relative to the Locat securitisation and 0.5 bn relative to the District Bonds

  3. A YEAR OF IMPROVED PROFITABILITY 4Q04 BEST QUARTER OF THE YEAR % ch. on 4Q03 FY04 Y/Y ch. 4Q04 Euro mln Total Revenues 10,375 -0.7% +5.3% 2,679 Operating Income 4,434 -5.8% +9.6% 1,124 Net Income 2,131 +8.7% +65.0% 627 ROE(1) 17.9% +20 bp EPS(2)(Euro) 0.336 +0.026 DPS(3)(Euro) 0.205 +0.034 Core Tier I ratio 7.35% +38 bp (3) To be proposed to the AGM (1) Calculated on end of period net equity excluding profit for the period (2) N° of shares in 2004 net of 87 mln of treasury stock

  4. ENHANCED QUALITY OF REVENUES – NET INTEREST INCOME UP NET INTEREST INCOME excl. Dividends 2.38% +14.4% Avg. Euribor 2.11% +7.2% 4,920 +3.7% 1,304 1,217 4,746 1,140 +4.1% 3,794 +2.3% 981 3,709 Italy 885 943 323 +18.0% 1,126 +8.6% New Europe 255 274 1,037 4Q03 3Q04 4Q04 2003 2004 • Strong interest income growth despite unfavourable interest rate environment • Good acceleration Q/Q both in Italy and New Europe • Sustained volume growth driving net interest income

  5. STRONG VOLUME GROWTH - GAINING MARKET SHARE WHILE MAINTAINING PRICING PREMIUM • Total loans(3)up 7.6% y/y, • Retail: +16.2% y/y driven by mortgages and consumer credit • Corporate: +0.1% y/y, +4.9% gross of securitisations (Locat and district bonds) • New Europe: +18.6% y/y (+10.6% at unchanged FX) • Stable lending spread y/y (3.82% vs 3.84%) with increasing pricing premium vs industry (53bp vs 38bp y/y) UCI LENDING MARKET SHARE IN ITALY 11.11%(1) On total loans (2) Pro-forma on total loans (2) ex securitisations On M/L term loans (2) (1) Pro-forma, including 2.5 bn relative to the Locat securitisation and 0.5 bn relative to the District Bonds (2) Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos) (3) Net of repos

  6. LOWER PROPORTION OF UP-FRONT ADDS TO STABILITY OF EARNINGS NET COMMISSIONS (Euro mln) +1.4% 3,289 -0.5% +13.3% 3,307 869 857 404 -37.7% 649 +8.3% 767 Up-front(1) 92 158 85 777 +13.9% 2,885 +8.5% Other 699 2,658 682 2003 2004 4Q03 3Q04 4Q04 Weight of Up-front on Total (%) 19.6 12.3 18.4 11.1 10.6 • Total net commissions substantially stable y/y, with improved quality • Other net commissions growth key drivers: • Fees on guarantees given & loans, +9.5% y/y • Fees on segregated accounts & mutual funds (excl. up-front), +11.0% y/y • Increasing trend in 4Q04 mainly driven by corporate transaction services and AUM growth (1) Up-front on AUM and AUC referred to UniCredit Banca, UniCredit Private Banking and Xelion Accounting data

  7. ENTERING 2005 WITH TOTAL ASSETS UNDER MANAGEMENT AT RECORD HIGH • Exploiting the value of being a global player: +21.9% y/y growth of AUM in the international business units2 UCI TOTAL AUM (bn) +9.0%1 vs Dec03 • Stability of pricing over the last year 128 +3.9%1 123 +4.9% • Sustained out-performance of the Italian mutual fund market in net sales in 2004 +21.9% vs Dec03 38 117 35 International2 31 • UCI the only market share gainer among the big Players in Italy +4.6 vs Dec03 90 88 Italy 86 Dec03 Dec04 UCI mkt. share3 13.39% 13.76% Sep04 Dec04 Dec03 • High value added inflows of hedge funds worldwide: 1,431 mln, +48% y/y (1)+2.1% Dec04/Sep04 % change and +7.1% Y/Y % change net of SAFECO AM acquisition completed in 4Q04 (2)US + New Europe + International (ex Itlay) (3)Calculated according to the “old” classification methodology adopted by Assogestioni (pro-forma data for all market players adopting the “new” Assogestioni methodology not available yet)

  8. REDUCED WEIGHT OF DERIVATIVES ON CONSOLIDATED REVENUES INCOME FROM FINANCIAL TRANSACTIONS 1,287 (mln) 993 -22.8% -27.9% 239 233 173 -25.7% 1,070 694 -35.1% Of which: Derivatives1 184 145 99 -31.3% 4Q03 3Q04 4Q04 2003 2004 • Derivatives penalised by extraordinary 2003 results and by the transition of Corporate Derivatives market to the maturity phase • Expected stabilisation of consolidated income from financial transactions around 2004 levels (1) Corporate + Institutional + Retail Derivatives

  9. EFFECTIVE COST MANAGEMENT (+2.2% Y/Y AND -1.2% 4Q04/4Q03 AT CONSTANT FX) OPERATING COSTS BREAKDOWN Adjusted by FX effect and acquisition of ANBI (mln) +3.5% 5,941 +2.5% +1.7% 5,742 -3.7% -4.1% 472 1,555 490 +6.3% 1,517 1,463 TOTAL COSTS +6.6% +5.5% 2,081 130 +3.2% 1,972 150 122 Depr. & amort. 566 +13.0% 501 533 Other admin. expenses +3.3% 3,388 +1.7% 3,280 859 +2.3% 834 840 Personnel costs 4Q03 2003 2004 3Q04 4Q04 • Operating costs up 3.5% y/y(up 1.7% at costant fx and adjusted for ANBI) • Personnel costs up 3.3% y/yincluding new labour contract (up 1.7% at costant fx and adjusted for ANBI) • Head count reduction well in progress (-677 from Jun04 to Dec04). Benefits will accrue in 2005

  10. GLOBAL BANKING SERVICES: DELIVERY ON PLAN TARGETS • UPA: first steps in Romania (35 people hired in 1Q05 in training process) • ICT synergies (approx. 10 mln cost savings from insourcing in 2005) • Real estate rationalisation (sale of non core assets in 2004, 128 UCB branches to be closed in 2005) • Legal entities reduction (C. R. Carpi and Banca dell’Umbria to be merged into UCI banks in 2005) Italy • Staff downsizing (-727 vs 1H04) well on track 39,858 39,368 39,131 -727 Feb05 1H04 2004

  11. ASSET QUALITY: SIGNIFICANT REDUCTION OF NET FLOWS OF NEW DOUBTFUL LOANS NET FLOWS OF NEW DOUBTFUL LOANS1, (mln) 2,208 ch. on Sep04 mln, where not specified Dec04 Of which: Parmalat 190 1,925 -12.8% Gross Doubtful Loans 9,469 +1.7% -4.6% ex Parmalat Weight on Gross Loans 6.47% -13 bp Gross Non Performing Loans 6,586 +2.1% 2003 2004 Weight on Gross Loans 4.50% -7 bp • Limited growth of gross doubtful loans (+1.7% q/q and +6.3% y/y) Provisions on performing loans 1,307 -1.6% • Increased coverage ratios on doubtful loans: Coverage ratio 0.96% -5 bp • 60.2% on NPLs (vs 59.7% as of Dec03) • 48.2% on total doubtful (vs 47.1% as of Dec03) ch. on 2003 2004 • 1.3 bn provisions on performing loans (+116 mln vs Dec03) 63 bp -1 bp2 Stated cost of risk • Cost of risk at 63 bp (of which 16 bp for provisions on performing loans), in line with 2003 net of Parmalat2 (1) Defined as: Flow from performing loans to any category of doubtful loans less Flow-back from any category of doubtful loans to performing (2)Calculated on FY03 cost of risk (76 bp) net of extraordinary provisions on Parmalat (12 bp)

  12. MAIN NON OPERATING EFFECTS IN 2004 EFFECT • Restructuring charges fully expensed in 2004 -246 mln • Provisions to “future charges related to shareholdings” -73 mln • Extraordinary gains to offset restructuring charges • Deferred taxes • Disposal of real estate +155 mln +132 mln • Release of provisions for general banking risks +130 mln • Lower tax rate mainly due to tax-free extraordinary gains, positive effects of “tax calculation on consolidated P&L” Tax rate from 39% to 32%

  13. PERFORMANCE VS. 2007 STRATEGIC PLAN % weight of up-front revenues 12.5 Further reduction of weight of up-front revenues on total (wealth management and derivatives) 7.8 Revenues 6.7 2004 2003 2007 Italy, total lending mkt share, % 12.60 Service to customers Customer satisfaction as a driver for market shares increase 11.11 10.74 2004(1) 2003 2007 Cost Income ratio, % 57.3 Process redesign leading to efficiency improvements 55 50 Processes 2004 2003 2007 Cost of risk, pb 76 63 60 Assets Cost of risk reduction 64(2) 62(1) 2007 2004 2003 (1) Pro-forma, including 2.5 bn relative to the Locat securitisation and 0.5 bn relative to the District Bonds (2) Pro-forma, excluding Parmalat provisions

  14. GROUP RESULTS BENEFITING FROM BUSINESS DIVERSIFICATION CONTRIBUTION TO GROUP NET INCOME BY DIVISION CONTRIBUTION TO GROUP NET INCOME PRE CORPORATE CENTRE AND ELISIONS mln y/y % ch. Corporate 949 -2.7% Retail 545 -6.7% New Europe 398 +29.2% Private & AM 390 +58.5% TOTAL GROUP 2,131 +8.7%

  15. CAPITAL ALLOCATION – DIRECTING CAPITAL TO HIGHER-RETURN BUSINESSES ABSORBED CAPITAL(1) y/y % ch.(2) 2004 RORAC(4) 2003 2004 Total Group 9.6 bn 9.8 bn +2.5 36.9% 30.8% Divisional weight Corporate 51.3% 49.1% +0.9 19.8% Marginal RARORAC 17.7% 17.4% Retail 27.7% 28.9% +10.0 Cost of equity 8.58% NE 12.4% 12.9% +9.3 Private & AM 8.6% 9.1% +12.0 Private & AM NE Retail Corporate Group Excess Capital(3) 0.2 bn 0.8 bn (1) End of period, net of minorities (3) Pay-out ratio: 60% (2) On Absorbed Capital (4) Return on risk adjusted capital = Marginal Rarorac + Cost of Equity

  16. RETAIL DIVISION: STRONG LENDING MARKET SHARE INCREASE DRIVING NET INTEREST INCOME TURNAROUND STEADY GROWTH OF NET INTEREST INCOME (ex dividends) 2.78% Avg. Euribor 2.46% 2.16% 2.15% 2.14% 2.11% 2.09% 2.09% 630 612 596 593 570 563 557 547 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 GOOD PRICING RESILIENCE IN ALL KEY MARKETS EXCELLENT LENDING GROWTH, +16.4% Y/Y • Mortgages +22.9% y/y • Consumer credit +31.2% y/y • Small Business +10.8% y/y • 4Q average spread(1) on: • new mortgages at 1.28% for UCB (stable q/q) and 1.43% for UBCasa (-3 bp q/q) • small business(2) s/term loans at 8.37% (+5 bp q/q) • revolving cards at 10.62% (+6 bp q/q) (1) Management accounts (2) Management accounts, includes also maximum overdraft charges

  17. RETAIL DIVISION OPERATIONAL ACHIEVEMENTS SALES OF SEGR. ACCOUNTS INVESTING IN FUNDS, bn • HIGH FOCUS ON WEALTH MANAGEMENT PRODUCTS GENERATING RECURRING REVENUES 3.5 0.1 2004 2003 • UniCredit Banca: • 70,000 Small Business customers acquired • 30,000 net new Small Business customers • GOOD CUSTOMER SATISFACTION POSITIVELY IMPACTING CHURN RATE OPERATING COSTS, mln 2,956 2,957 • EFFECTIVE COST MANAGEMENT ALREADY TANGIBLE… 2,930 2003(1) 2004 2002(1) TOTAL STAFF -610 vs. June 04 25,467 • … WITH BENEFITS FROM STAFF REDUCTION EXPECTED IN 2005 25,136 24,857 2004 FEB 05 1H04 (1) Pro-forma to make perimeter comparable with 2004

  18. CORPORATE DIVISION: NET INTEREST INCOME GROWTH DRIVEN BY HIGHER LOANS AND RESILIENT SPREAD NET INTEREST INCOME (excl. dividends), (mln) 1,486 +4.6% +1.1% 1,421 387 360 -7.0% 356 4Q negatively impacted by Locat securitisation (~22 mln1) 2003 2004 4Q03 3Q04 4Q04 TOTAL LOANS (ex Repos), (bn) • Loan growth impacted by securitisations for ~3 bn(2.5 bn Locat in 4Q and 0.5 bn district bonds in 1Q & 4Q); y/y growth at 4.9% gross of securitisations 65.9 +4.9% y/y 3 62.8 Securitisations • Significant contribution of M/L term lending Of which: M/L2 • UBI share of wallet at 12.4%3 (vs 12.3% as at Dec03) 25.6 +9.2% y/y 23.4 Dec03 Dec04 (Gross of securitisations) • Higher lending spreads for UBI (2.34% Avg. 2004, +8 bp y/y) (1) Of which ~12 mln recovered as “Other income” (2) Only UBI + UBMC (Source: BankIT Matrix) (3) Calculated on SMEs + Other corporate. Discount the securitisation of ~500 mln for Neafidi and Eurafidi district bonds. Share of wallet at ~12.6% adding back these amounts

  19. HIGH FOCUS ON SERVICE REVENUES NET COMMISSIONS,(mln) 604 +5.8% +9.4% • Commercial focus on most recurring service-revenues: 571 157 +19.4% 143 131 • Foreign trade services: 135 mln, +24.1% y/y • Transaction services: 71 mln, +7.8% y/y 2003 2004 4Q03 3Q04 4Q04 • Derivatives still main source of revenues for UBM (~75%) … • More balanced revenue composition for UBM • … with a more balanced mix: higher weight of Institutional … • … and lower weight of Corporate Derivatives

  20. PRIVATE & ASSET MANAGEMENT DIVISION: SIGNIFICANT GROWTH OF TOTAL FINANCIAL ASSETS LEADING TO HIGHER REVENUES • Asset Management: +10.0% y/y, up to 130 bn • Strong Tot. Financial Assets growth (+12.0% y/y1, up to 172 bn) … TOTAL REVENUES(bn) • Asset Gathering: +11.2% y/y, up to 66 bn 1,167 +7.5% 1,085 177 -1.1% • Asset Management: 3.5 bn • … driven by good net sales … 78 -13.5% Other revenues 179 • Asset Gathering: 8 bn2, of which 1.2 bn of AM products Up-front fees 91 +11.9% 912 Net Commissions (ex up-front fees) 815 • … and excellent performances … • 32nd percentile rank on average worldwide for Pioneer “long funds” • 24th percentile rank for mutual funds sold in Italy3vs Italian peers 2003 2004 • … with increased market shares: Dec03 Dec04 • Same growth than Total Financial Assets = stability of pricing Italy – Mutual Funds 13.39% 13.76% Poland – Invest. Funds 30.36% 34.46% Xelion – Net Sales4 13.66% 25.23% All figures at unchanged FX (3) Calculated on the aggregate Italy + Luxemburg domiciled Pioneer branded mutual funds (1) 10.3% net of SAFECO AM acquisition, completed in 4Q04 (2) Of which 4.9 bn related to relevant equity investments transferred under UPB’s custody (4) Assoreti perimeter

  21. ENHANCED EFFICIENCY AND STRONG OPERATING INCOME PERFORMANCE C/I RATIO, % 64.1 63.7 63.2 -77bp • Improved efficiency, exploiting economies of scale 59.9 -374bp 3Q04 4Q04 2003 2004 OPERATING INCOME (mln) 429 +9.8% 390 • Operating Income: 4Q04 best quarter since P&AM Division inception 135 +36.9% 99 3Q04 4Q04 2003 2004 • 68 mln extraordinary gains (of which ~60% related to deferred taxes) • Tax rate -14.5 pp (to 16.4%) mainly due to benefits from fiscal consolidation and tax-free extraordinary gains • Net income up to 390 mln (+61% y/y) also positively impacted by extraordinary items and lower taxes All figures at unchanged FX

  22. NEW EUROPE DIVISION: SIGNIFICANT VOLUME GROWTH All figures stated at unchanged FX • GOOD LENDING GROWTH: +10.5% Y/Y (+18.5% at current FX) Mortgages(1)(Euro mln) Leasing(Euro mln) Consumer credit(1)(Euro mln) +10.9% +27.8% +36.7% 2,104 2,056 1,854 385 1,647 281 2003 2004 2003 2004 2003 2004 • GROWTH IN MUTUAL FUNDS DRIVING HIGHER REVENUES AND GAINS IN MARKET SHARE Mutual Funds(2)(Euro mln) Net non interest income(Euro mln) Market share (PPIM(3)) +35.6% +4.1 pp +8.4% 4,835 34.5% 30.4% 681 3,566 628 2003 2004 2003 2004 2003 2004 (1) Management accounts in LAS (2) New Europe Business Area of Pioneer is included at current FX ITAS (3) Pioneer Pekao Investment Management

  23. GOOD ECONOMIC PERFORMANCE COUPLED WITH IMPROVED ASSET QUALITY All figures stated at unchanged FX Total Revenues(Euro mln) Cost/income(%) +4.8% -0.8 pp • HIGHER OPERATING INCOME: +6.6% Y/Y 56.0 55.2 1,835 1,751 2003 2004 2003 2004 Cost of risk(bp) Coverage ratio of doubtful loans • CONSTANT IMPROVEMENT IN ASSET QUALITY 122 -33 bp +6.7 pp 89 70.8% 64.1% 2003 2004 2003 2004 Tax rate(%) Attributable Net income (Euro mln) +22.8% • NET INCOME POSITIVELY IMPACTED BY LOWER TAXES 398 -7.7 pp 25.3 324 17.6 2003 2004 2003 2004 ITAS

  24. PEKAO, ZABA & KFS INCREASE THEIR WEIGHT IN THE GROUP All figures stated at unchanged FX PEKAO NET INCOME FOR THE GROUP • Strong volume growth (mortgages(1) +80.6% y/y, mutual funds(2) +28.9% y/y) • Focus on revenues from services (net non interest income +13.8% y/y) • Improved asset quality (net doubtful loans -36% y/y) • Lower tax rate (statutory and one-off) y/y % ch. 167 Pekao +39.6% ZABA Zaba 102 +10.6% • Increased volumes (net loans +8.3% y/y, deposits +10.4% y/y) • Good asset quality (net doubtful loans -25.8% y/y) • Launch of new products in corporate (mainly cash management & leasing) and in retail (196,000 new C/A packages) 73 KFS +25.5% Others 56 +5.7% KFS • Higher quality of revenues throughfee generating products (+15% mutual funds stock, 245,000 new cards, 6.800 new C/A packages) • Decreased cost of risk (to 179 bp from 282 bp in 2003) • Strong increase in n° of clients (approx. +158,000) NE Division 398 +22.8(3)% (1) Management accounts in LAS, only LC (2) Pioneer Pekao Investment Management (3) +29.2% at current FX

  25. 2005 PRIORITIES: HOLDING THE BAR TO ACHIEVE 3-YEAR PLAN TARGETS • Building on 2004 achievements: • Growth in market shares in lending and financial assets to drive revenue growth: • Higher lending volumes in mortgages, consumer credit, small business in Italy and New Europe • Increase share of wallet of corporate customers while enhancing service revenue contribution • Leveraging on AM division global presence to increase AuMs • Cross-selling of asset gathering products to existing small business customers • Deliverefficiency improvement in line with 3-year plan • Strict control of cost of risk • Active Capital Management driving value creation and total shareholder return

  26. 2004 RESULTS - ANNEXES

  27. AGENDA Group Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division

  28. 4Q04 & FY04 CONSOLIDATED INCOME STATEMENT (Euro mln) % ch. on 3Q04 % ch. on 4Q03 4Q04 FY04 y/y % ch. Net interest income (incl. div.) +9.7 +15.2 +4.3 1,402 5,200 - of which Dividends +60.7 +27.3 +16.2 98 280 Net non interest income +5.1 -3.7 -5.3 1,277 5,175 2,679 10,375 Total revenues +7.5 +5.3 -0.7 Administrative costs (incl. depr.) +6.3 +2.5 +3.5 -1,555 -5,941 4,434 +9.1 +9.6 -5.8 Operating income 1,124 Goodwill depr. -61 -276 -15.3 +1.7 +4.5 Provisions on loans -231 -891 +4.1 -41.7 -6.9 Other net provisions(1) n.m. -23.5 -46.8 -91 -149 Net extraordinary income +10.9 -61.9 +1.4 61 218 Taxes -46.6 -32.5 -22.4 -141 -1,036 -34 -169 Minorities -32.0 +54.5 +36.3 627 2,131 Net income +37.8 +65.0 +8.7 (1) Net write-downs of financial investments, provisions for risks and charges, provisions for possible loan losses and provisions to reserve for general banking risk

  29. DIVISIONAL CONTRIBUTION TO CONSOLIDATED RESULTS IN 4Q04 Total Group(1) 4Q04 RESULTS Retail Division Corporate Division Priv.& AM Division NE Division (Euro mln - Data at end of period FX) Total revenues 1,157 695 324 529 2,679 +6.0% -3.3% +18.2% +16.4% +7.5% % Change vs 3Q04(2) Operating costs -743 -267 -193 -309 -1,555 -0.5% +9.5% +10.8% +29.2% +6.3% % Change vs 3Q04(2) Operating income 414 428 131 219 1,124 +20.1% -9.2% +30.7% -1.5% +9.1% % Change vs 3Q04(2) Net write-downs of loans -84 -103 -1.5 -30 -231 +21.5% -16.5% n.m. -4.3% +4.1% % Change vs 3Q04(2) Net income for the Group 126 203 143 106 627 -21.9% +4.9% +63.6% -7.4% +37.8% % Change vs 3Q04(2) C/I Ratio 64.2% 38.4% 59.6% 58.6% 58.0% -4.2 pp +4.6 pp -4.0 pp +5.8 pp -0.7 pp Change in pp vs 3Q04(2) Employees(3) 25,136 6,334 3,700 29,540 70,543 (1)Balance due to the Parent Company, other Group companies and elisions (3)Including all the employees of Koc Financial Services (3,921as at 31.12.2004) (2)Calculated on data at end of period FX

  30. NET INTEREST INCOME NET INTEREST INCOME excl. Dividends Total Loans(1), y/y % ch. 2.78% Avg. Euribor 2.46% 2.16% 2.15% 2.14% 2.11% 2.09% 2.09% +14.4% +7.2% 1,304 1,251 UCI(2) Italian industry 1,217 1,210 1,193 1,189 1,160 1,140 11.11%(1) UCI(2) Market Share +10.9% +4.1% Italy ex. Parent Company 981 988 924 911 885 930 939 943 323 263 268 251 255 259 270 274 New Europe 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 On total loans (1) On total loans (1) ex securitisations On M/L term loans (1) (1) Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos) (2) Proforma including ANBI in 2003 and excluding Locat and District Bonds securitisations in 2004

  31. GOOD VOLUME GROWTH MAINLY SUPPORTED BY RETAIL AND NEW EUROPE TOTAL CUSTOMER LOANS1 % ch. on Dec03 % ch. on Sep04 Dec04 Breakdown By Division (bn) Retail 56.7 +4.5 +16.2 Corporate 62.9 +0.4 +0.1 New Europe 14.0 +6.0 +18.6 New Europe (unchanged FX) 14.0 +2.5 +10.6 Other 2.0 -35.3 -20.9 TOTAL GROUP 135.6 +1.8 +7.6 1 Excl. Repos

  32. NET COMMISSIONS: QUARTERLY TREND 869 857 855 839 830 798 781 767 92 116 158 157 112 183 Up-front(1) 85 151 +13.9% 777 739 699 686 682 673 656 Other 630 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 Weight of Up-front on Total (%) 19.3 21.8 18.9 18.4 14.1 13.6 11.1 10.6 (1) Up-front on AUM and AUC referred to UniCredit Banca, UniCredit Private Banking and Xelion Accounting data

  33. DETAILS ON TRENDS OF UCI’S TOTAL ASSET UNDER MANAGEMENT AND MARKET SHARE IN THE ITALIAN MUTUAL FUND INDUSTRY UCI TOTAL AUM +9.0%1 vs Dec. 03 128.0 (bn) • NET SALES OF MUTUAL FUNDS (Italy): UCI vs ITALIAN INDUSTRY 123.2 +3.9%1 117.4 +4.9% +21.2% vs Dec. 03 37.9 +9.0% 34.8 TOP 3 PLAYERS(EX UCI) ITALIAN INDUSTRY US, New Europe & International +11.2% 31.3 UCI 23.9 23.1 -391 +12.1% +3.4% 20.6 Insurance +5.3% +7.6% 22.7 23.9 25.8 Segregated Accounts +4.6% vs Dec. 03 Mutual & Hedge Funds -9,803 -3.3% -2.2% 42.8 41.4 40.4 -18,117 Dec03 Sep04 Dec04 • MUTUAL FUNDS (Italy): UCI’S MARKET SHARE2 EVOLUTION Italy US, New Europe & Intl. ASSET MIX (PGAM) Dec03 Jun04 Sep04 Dec04 Avg.3Q03 Avg.4Q04 Avg.2003 Avg.2004 Equity + Hedge 30.1% 31.0% 27.4% 30.3% UCI 13.39% 13.51% 13.63% 13.76% Bond + Liquidity 61.3% 61.4% 62.5% 61.1% Balanced + others 8.6% 7.6% 10.1% 8.6% (1)+2.1% Dec04/Sep04 % change and +7.1% Y/Y % change net of SAFECO AM acquisition completed in 4Q04 (2)Calculated according to the “old” classification methodology adopted by Assogestioni (pro-forma data for all market players adopting the “new” Assogestioni methodology not available yet)

  34. DETAILS ON CONSOLIDATED INCOME FROM FINANCIAL TRANSACTIONS – QUARTERLY TREND INCOME FROM FINANCIAL TRANSACTIONS (mln) 436 349 295 292 263 233 239 173 Of which: Derivatives1 365 324 252 199 196 184 145 99 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 (1) Corporate + Institutional + Retail Derivatives

  35. NON OPERATING ITEMS 1Q04 2Q04 3Q04 4Q04 FY04 4,434 1,070 1,210 1,030 1,124 Operating income -276 -71 -72 -72 -61 Goodwill amort. Net write-downs of loans -891 -192 -246 -222 -231 -279 -9 -27 -22 -221 Other net provisions(1) 218 2 100 55 61 Net extraord. income -1,036 -296 -335 -264 -141 Taxes Reserve for general bkg risk 130 - - - 130 -169 -38 -47 -50 -34 Minorities 466 583 455 627 2,131 Net Income (1) Net write-downs of financial investments & provisions for risks and charges

  36. ASSET QUALITY: DETAILS BY DIVISIONS Retail Division Corporate Division NE Division Total Group 1 (mln - Data at end of period FX) Sep 04 Dec 04 Sep 04 Dec.04 Sep 04 Dec 04 Sep 04 Dec 04 Total gross doubtful loans 3,479 3,536 2,869 2,755 2,806 3,040 9,311 9,469 % change on Sep04 +1.6% -4.0% +8.4% +1.7% Gross Doubtful Loans/Tot. Gr. Loans,% 6.23% 6.06% 4.32% 3.97% 18.1% 18.5% 6.60% 6.47% Total net doubtful loans 2,160 2,185 1,823 1,771 774 888 4,839 4,901 % change on Sep04 +1.2% -2.8% +14.8% +1.3% 3.98% 3.86% 2.82% 2.62% 5.83% 6.32% 3.58% 3.49% Net Doubtful Loans/Tot. Net Loans,% 2,095 2,153 1,940 1,891 2,320 2,450 6,451 6,586 Gross NPL % change on Sep04 +2.8% -2.5% +5.6% +2.1% Gross NPL/Tot. Gr. Loans,% 3.75% 3.69% 2.92% 2.72% 15.0% 14.9% 4.57% 4.50% Net NPL 1,075 1,105 1,113 1,122 359 373 2,577 2,621 % change on Sep04 +2.7% +0.9% +3.9% +1.7% Net NPL/Tot. Net Loans,% 1.98% 1.95% 1.72% 1.66% 2.71% 2.66% 1.91% 1.87% Coverage ratios 37.9% 38.2% 36.5% 35.7% 72.4% 70.8% 48.0% 48.2% -on tot. Gross doubtful loans, % -on total gross NPL, % 48.7% 48.7% 42.6% 40.7% 84.5% 84.8% 60.1% 60.2% 1 Balance due to other Group companies

  37. AGENDA Group Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division

  38. RETAIL DIVISION: P&L Q/q % ch. Y/y % ch. Y/y % ch. mln 4Q04 2004 Interest income (incl. div.) 614 +1.5 +13.9 2,360 +0.9 Net non interest income 543 +11.5 +10.6 1,963 -2.3 Total revenues 1,157 +6.0 +12.3 4,323 -0.6 Operating costs (incl. dep.) -743 -0.5 +3.4 -2,957 +2.6 - of which: Staff costs -388 +0.7 +3.3 -1,543 +2.8 - of which: Other adm. expenses -334 +0.2 +12.4 -1,322 +4.9 Net operating income 414 +20.1 +32.8 1,366 -6.8 Net provisions -110 +36.2 -12.3 -335 +5.6 - o/w: Net write-down of loans -84 +21.5 -3.1 -281 +15.2 Net extraordinary income (loss) -123 n.m. n.m. -129 n.m. Net income 126 -21.8 +59.8 546 -6.6 Net income for the Group(2) 126 -21.9 +54.9 545 -6.7 Cost/income ratio, % 64.2 -421 bp -552 bp 68.4 +211 bp

  39. RETAIL DIVISION: 2004 RESULTS BREAKDOWN BY COMPANY mln UniCredit Banca Banca d. Umbria CR Carpi Clarima TOTAL(1) UBCasa Interest income (incl. div.) 2,031 107 113 113 37 2,360 Net non interest income 1,817 73 12 37 23 1,963 Total revenues 3,848 180 125 150 60 4,323 Operating costs (incl. dep.) -2,681 -97 -72 -72 -35 -2,957 - of which: Staff costs -1,431 -51 -24 -18 -18 -1,543 - of which: Other costs -1,166 -42 -45 -53 -15 -1,322 Net operating income 1,168 83 53 78 25 1,366 Net provisions -302 -16 -23 -37 -2 -335 - o/w: Net write-down of loans -208 -12 -23 -37 -2 -281 Net extraordinary income (loss) -132 3 1 1 - -129 Net income 412 62 21 47 15 546 Net income for the Group(2) 396 39 28 47 14 545 Cost/income ratio, % 69.7 53.8 57.8 48.1 58.8 68.4 (1) Balance due to rounding and elisions of infragroup dividends and goodwill amortisation (2) Net of consolidation adjustments and minorities

  40. RETAIL DIVISION - MORTGAGES AND CONSUMER FINANCING RESIDENTIAL MORTGAGES STOCK, bn NEW FLOWS, bn mkt share(1) 17.71% 17.61% 17.17% +20.9% +22.9% 32.4 8.4 29.3 6.9 26.2 2.5 +24.1% UBCasa 2.0 5.7 +19.3% UCB 4.8 2003 2004 DEC03 2Q04 DEC04 CONSUMER FINANCING STOCK, bn NEW FLOWS OF PERSONAL LOANS, mln REVOLVING CARDS TOTAL SPENDING(3) (+275k revolving cards in 2004) 2004 mkt share(2) at 13.2% mkt share(4) +67.9% 7.4% +31.2% 1,163 2.8 2.4% 339 mln 2.1 693 93 mln DEC03 DEC04 2003 2004 2003 2004 (3) POS and ATM spending (1) Group market share, related to mortgages to households as of Bank of Italy definition in table TDME0070 of the monthly bulletin (4) Calculated on ASSOFIN data (2) Calculated on ASSOFIN data. Not calculated in 2003 because personal loans were sold directly by UCB and not through Clarima

  41. RETAIL DIVISION - SMALL BUSINESS STOCK, SPREAD AND CUSTOMER ACQUISITION STOCK, bn SHORT TERM SPREAD(1) 16.6 +10.8% 8.63% 8.37% 8.32% 8.25% 8.21% 15.0 2003 2004 2003 1Q04 2Q04 3Q04 4Q04 QUARTERLY TRENDS IN SMALL BUSINESS CUSTOMER ACQUISITION 19,000 18,000 17,500 15,000 12,600 4Q03 1Q04 2Q04 3Q04 4Q04 (1) Management accounts, includes also maximum overdraft charges

  42. RETAIL DIVISION - CUSTOMER LOANS AND CUSTOMER DEPOSITS BREAKDOWN AND DETAILS OF SHORT TERM SPREADS 56.7 +8.1% EOP LOANS, Euro bn UCB AVG. MARK UP(5) (Small Business), % 52.4 5.0 +7.4% 48.8 5.99 5.95 5.93 5.5 5.69 5.55 5.60 2.8 5.47 -8.1% 5.42 Other loans 5.5 +0.2% 2.3 +21.8% 2.1 +7.8% Cons. credit 16.6 15.5 +7.3% SB loans (1) 15.0 +3.3% 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 UCB AVG. MARK UP(5) (Households), % 32.2 7.33 7.33 29.2 Residential mortgages (2) 26.2 +10.5% 7.21 7.18 7.18 7.08 +11.0% 7.04 7.03 2003 pro-forma(3) 2Q04 4Q04 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 EOP DEPOSITS, Euro bn UCB AVG. MARK-DOWN(5) (Households), % +5.1% 67.2 63.9 60.2 +6.5% 21.0(4) 22.8(4) 17.7 Bonds +8.8% +18.3% 2.32 2.03 1.78 1.72 1.67 1.71 15.1 15.3 15.4 Other deposits -1.9% 1.65 1.65 +0.4% Households c/accounts 27.6 29.3 27.2 +1.6% +6.2% 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 2003 2Q04 4Q04 (1) Includes short term and m/l term loans (2) Includes only households mortgages (3) Including ANBI (4) 2Q04 increase vs. December is due to the issue of bonds by UBCasa to fund mortgage book expansion (5) Source: Bank of Italy matrix data

  43. RETAIL DIVISION - NET COMMISSIONS RETAIL DIVISION: NET COMMISSIONS Breakdown by nature mln Q/q % ch. Y/y % ch. Y/y % ch. 4Q04 2004 TOTAL RETAIL DIVISION 386 +17.4 +9.5 1,341 -3.6 159 +0.2 +2.7 619 -7.1 Total Commissions from Wealth Management • Mutual funds (1) 38 -23.9 -41.8 203 -5.8 • Segregated Accounts (2) 45 +3.2 n.m. 110 +64.4 • Insurance Products (3) 77 +16.7 -5.4 305 -20.4 Securities in custody 98 +100.1 +18.2 248 -18.3 Other services 129 +6.6 +12.4 474 +12.6 (1) Includes subscription and management fees from Plain Vanilla Mutual Funds (2) Includes management fees related to underlying Mutual Funds. Net commissions related to Focus Invest do no impact consolidated results (3) Includes management fees related to underlying Mutual Funds

  44. RETAIL DIVISION - DETAILS ON ASSET QUALITY ch. on Sep. 04 mln, where not specified Dec. 04 REDUCTION OF NET FLOWS OF NEW DOUBTFUL LOANS(1) VS. 2003 … Gross Doubtful Loans 3,536 +1.6% 908 Weight on Gross Loans 6.06% -17 bp 856 Coverage ratio 38.2% +30 bp -5.7% Gross Non Performing Loans 2,153 +2.8% Weight on Gross Loans 3.69% -6 bp 2003 2004 Coverage ratio 48.7% +4 bp … CONFIRMED BY 2H04 TREND VS. 1H04 446 Provisions on performing loans 315 +4.3% 410 Coverage ratio 0.58% -2 bp -8.0% ch. on 2003 2004 Cost of risk 50 bp - bp 1H04 2H04 (1) Defined as: Flow from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans

  45. CUSTOMER SATISFACTION PRIVATE CUSTOMERS, TRIM INDEX (1) SMALL BUSINESS, TRIM INDEX (1) UNICREDIT BANCA AVG. TOP 4 COMPETITORS UNICREDIT BANCA AVG. TOP 4 COMPETITORS 51 48 47 43 42 41 40 36 2003 4Q04 2003 4Q04 2003 4Q04 2003 4Q04 • Stability of front-end relationship with customers • Dedicated service model • Improved waiting time (shorter queues) • Improved advisory on lending products • Improved advisory on investment services, with room for further improvement • Focus on quality of sales Source: NFO Infratest, Customer satisfaction analyses (1) On a scale from 0 to 70

  46. AGENDA Group Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division

  47. CORPORATE DIVISION: 2004 INCOME STATEMENT- BREAKDOWN BY COMPANY Other companies (Euro mln) TOTAL1 UBI UBM LOCAT Net Interest income (incl. div.) 1,287 -32 186 64 1,504 Net non interest income 584 684 30 233 1,531 Total revenues 1,871 652 216 297 3,035 Operating costs (incl. dep.) -533 -226 -56 -198 -1,013 -299 -107 -31 -88 -526 - of which: Staff costs -231 -103 -22 -102 -458 - of which: Other admin. expenses 1,338 426 160 99 2,022 Net operating income -504 3 -25 -31 -562 Net provisions - o/w: Net write-downs of loans -450 9 -23 -6 -476 Net income 505 308 93 44 950 Net income for the group 493 309 96 51 949 28.5% 34.7% 25.7% 66.8% 33.4% Cost/income Ratio 1 Balance due to roundings and elisions of infragroup dividends and goodwill amortisation

  48. CORPORATE DIVISION: 4Q04 AND 2004 INCOME STATEMENT y/y % ch. (Euro mln) 4Q04/3Q04 % ch. 4Q04/4Q03 % ch. 2004 4Q04 Net interest income (incl. div.) 365 -5.9 +3.4 1,504 +2.0 Net non interest income 330 - -14.3 1,531 -14.6 Total revenues 695 -3.2 -5.8 3,035 -7.1 Operating costs (incl. depr.) -267 +9.4 +6.0 1,013 -0.9 Operating income 428 -9.7 -11.9 2,022 -9.9 -175 +36.7 -40.9 -562 -12.3 Total net provisions 20 n.s. n.s. 86 n.s. Net extraordinary income -70 -54.5 +12.9 -596 -4.6 Taxes Net income 203 +5.2 +89.7 950 -3.0 Net income for the group 203 +5.2 +89.7 949 -2.7 38.4% +449bp +438bp 33.4% +210bp Cost Income ratio, %

  49. CORPORATE DIVISION - DETAILS ON ASSET QUALITY ch. on Sep04 mln, where not specified Dec04 Gross Doubtful Loans 2,755 -4.0% NET FLOWS OF NEW DOUBTFUL LOANS1, (mln) Weight on Gross Loans 3.97% -35 bp 377 Coverage ratio 35.7% -74 bp Gross Non Performing Loans 1,891 -2.5% 233 Weight on Gross Loans 2.72% -19 bp 143 132 -43.4% Coverage ratio 40.7% -198 bp Provisions on performing loans 751 -4.4% 1Q04 2Q04 3Q04 4Q04 Coverage ratio 1.13% -10 bp ch. on 2003 2004 70 bp +1 bp2 Cost of risk (1) Defined as: Flow from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans (2)Calculated on FY03 cost of risk (91 bp) net of extraordinary provisions on Parmalat (22 bp)

  50. UNICREDIT BANCA D’IMPRESA: 4Q04 AND 2004 INCOME STATEMENT y/y % ch. 4Q04/3Q04 % ch. 4Q04/4Q03 % ch. (Euro mln) 4Q04 2004 326 -0.5 +13.6 1,287 +9.2 Net interest income Net non interest income 156 +19.3 +17.9 584 -6.3 Of which: - Net commissions 102 +14.9 +18.7 378 +15.4 - Trading profits 40 +15.3 -5.3 184 -33.9 Total revenues 482 +5.2 +14.9 1,871 +3.8 -137 +3.5 +15.4 -533 +3.0 Operating costs Operating income 345 +5.9 +14.8 1,338 +4.1 -100 -13.1 -57.0 -450 -10.7 Net write-downs of loans Other net provisions -49 n.s. n.s. -54 +35.1 +11.8 +187.0 493 +12.8 Net income for the group 132 28.4% -46 bp +12 bp 28.5% -22 bp Cost Income RATIO, %

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