2004 CONSOLIDATED RESULTS
Alessandro Profumo - CEO
Milan - March, 15th 2005
2
2004 ACHIEVEMENTS
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
A well diversified business portfolio supports profitability (New Europe net income: +29% y/y, Private & AM net income: +59% y/y)
Improved profitability (Net Income: +8.7% y/y)
Effective cost management (headcount down 677 on Jun04)
Strong volumes growth (AuM: +9.0% y/y, Loans: +10.8% y/y) provides a sound platform for 2005
(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
Total Revenues
Euro mln
10,375
2,131
0.336EPS(2) (Euro)
0.205
-0.7%
+8.7%
+0.026
+0.034
Operating Income
Net Income
FY04 Y/Y ch.
DPS(3) (Euro)
4,434 -5.8%
17.9%ROE(1) +20 bp
+5.3%
+65.0%
% ch. on 4Q03
+9.6%
2,679
627
4Q04
1,124
(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
(3) To be proposed to the AGM
7.35% +38 bpCore Tier I ratio
4
ENHANCED QUALITY OF REVENUES – NET INTEREST INCOME UP
4Q03
New Europe
Italy
Avg. Euribor
1,140
885
255
3Q04
2.38%
1,217
943
274
NET INTEREST INCOME excl. Dividends
1,304
981
323
4Q04
2.11%
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
2003
4,746
3,709
1,037
4,920
3,794
1,126
2004
+3.7%
+2.3%
+8.6%
+7.2%
+4.1%
+18.0%
+14.4%
5
10.74%
10.88%10.83%
10.26%
11.06%11.03%
10.80%
10.70%
Jun03 Dec03 Jun04 Dec04
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
(2) Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos)(3) Net of repos
On M/L term loans (2)
On total loans (2)
11.11%(1)
Pro-forma on total loans (2) ex securitisations
(1) Pro-forma, including 2.5 bn relative to the Locat securitisation and 0.5 bn relative to the District Bonds
6
LOWER PROPORTION OF UP-FRONT ADDS TO STABILITY OF EARNINGS
92158 85649 404
(1) Up-front on AUM and AUC referred to UniCredit Banca, UniCredit Private Banking and Xelion Accounting data
NET COMMISSIONS (Euro mln)
Up-front(1)
Other
Weight of Up-front on Total (%)
869
10.6
4Q04
777
857
4Q03
699
18.4
3Q04
11.1
682
767
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
-0.5%
19.6 12.3
3,307 3,289
2,6582,885
2003 2004
+8.5%
-37.7%
+1.4%
+13.3%
+8.3%
+13.9%
7
ENTERING 2005 WITH TOTAL ASSETS UNDER MANAGEMENT AT RECORD HIGH
UCI TOTAL AUM(bn)
Dec03
UCI mkt. share3 13.39%
Dec04
13.76%
UCI the only market share gainer among the big Players in Italy
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
Sustained out-performance of the Italian mutual fund market in net sales in 2004
(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)
123
Dec04
128
Sep04Dec03
117+4.9%
+3.9%1
+9.0%1 vs Dec03
Exploiting the value of being a global player: +21.9% y/y growth of AUM in the international business units2
(2) US + New Europe + International (ex Itlay)
Stability of pricing over the last year
Italy
International2 31
3538
86 88 90
+21.9% vs Dec03
+4.6 vs Dec03
8
145
INCOME FROM FINANCIAL TRANSACTIONS(mln)
REDUCED WEIGHT OF DERIVATIVES ON CONSOLIDATED REVENUES
4Q03
Of which: Derivatives1
239
184
3Q04
233
99
4Q04
173
2003 2004
1,287
993
1,070
694
-22.8%
-35.1%
Derivatives penalised by extraordinary 2003 results and by the transition of Corporate Derivatives market to the maturity phase
-27.9%
-25.7%
-31.3%
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
(mln)
Personnel costs
2003 2004
3,280 3,388
1,972
490
Other admin. expenses
Depr. & amort.2,081
472
4Q04
840 859
501
122566
130
3Q04
834
533
150
4Q03
Head count reduction well in progress (-677 from Jun04 to Dec04). Benefits will accrue in 2005
1,517 1,4631,555
5,7425,941
+6.3%
+13.0%
+2.3%
+2.5%
+6.6%
+3.5%
+5.5%
+3.3%
-3.7%
Operating costs up 3.5% y/y (up 1.7% at costant fx and adjusted for ANBI)
+1.7%
+3.2%
+1.7%
Adjusted by FX effect and acquisition of ANBI
-4.1%
TOTAL COSTS
Personnel costs up 3.3% y/y including new labour contract (up 1.7% at costant fx and adjusted for ANBI)
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)
Staff downsizing (-727 vs 1H04) well on track
2004
39,858 39,368
1H04
-727
Italy
39,131
Feb05
11
Stated cost of risk
Provisions on performing loans 1,307 -1.6%
Coverage ratio 0.96% -5 bp
Gross Doubtful Loans 9,469 +1.7%
63 bp -1 bp2
Weight on Gross Loans 6.47% -13 bp
mln, where not specified
Gross Non Performing Loans 6,586 +2.1%
Weight on Gross Loans 4.50% -7 bp
(2) Calculated on FY03 cost of risk (76 bp) net of extraordinary provisions on Parmalat (12 bp)
2004ch. on 2003
Dec04ch. on Sep04
ASSET QUALITY: SIGNIFICANT REDUCTION OF NET FLOWS OF NEW DOUBTFUL LOANS
(1) Defined as: Flow from performing loans to any category of doubtful loans less Flow-back from any category of doubtful loans to performing
Limited growth of gross doubtful loans (+1.7% q/q and +6.3% y/y)
Increased coverage ratios on doubtful loans:
Cost of risk at 63 bp (of which 16 bp for provisions on performing loans), in line with 2003 net of Parmalat2
60.2% on NPLs (vs 59.7% as of Dec03)
48.2% on total doubtful (vs 47.1% as of Dec03)
1.3 bn provisions on performing loans (+116 mln vs Dec03)
190
2003
2,208
2004
1,925 -12.8%Of which: Parmalat
-4.6% ex Parmalat
NET FLOWS OF NEW DOUBTFUL LOANS1, (mln)
12
MAIN NON OPERATING EFFECTS IN 2004
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%
Restructuring charges fully expensed in 2004 -246 mln
Release of provisions for general banking risks +130 mln
Extraordinary gains to offset restructuring charges
Deferred taxes
Disposal of real estate
+155 mln
+132 mln
EFFECT
Provisions to “future charges related to shareholdings” -73 mln
13
PERFORMANCE VS. 2007 STRATEGIC PLAN
62(1)
(2) Pro-forma, excluding Parmalat provisions
% weight of up-front revenues
2003
12.5
2007
6.7
Italy, total lending mkt share, %
2003
10.74
2007
12.60
2004(1)
Cost Income ratio, %
2003
55
2007
50
Cost of risk, pb
2007
60
2004
57.3
2004
7.8
11.11
2003
76
2004
63
64(2)
Further reduction of weight of up-front revenues on total (wealth management and derivatives)
Customer satisfaction as a driver for market shares increase
Processes
Revenues
Service to customers
Process redesign leading to efficiency improvements
Assets Cost of risk reduction
(1) Pro-forma, including 2.5 bn relative to the Locat securitisation and 0.5 bn relative to the District Bonds
14
17.5%
17.1%
41.6%
23.9%
RETAIL DIVISION CORPORATE DIVISION
PRIVATE & AM DIVISION NEW EUROPE DIVISION
GROUP RESULTS BENEFITING FROM BUSINESS DIVERSIFICATION
CONTRIBUTION TO GROUP NET INCOME BY DIVISION
y/y % ch.
949Corporate -2.7%
545Retail -6.7%
2,131TOTAL GROUP +8.7%
398New Europe +29.2%
CONTRIBUTION TO GROUP NET INCOME PRE CORPORATE CENTRE AND ELISIONS
390Private & AM +58.5%
mln
15
CAPITAL ALLOCATION – DIRECTING CAPITAL TO HIGHER-RETURN BUSINESSES
(1) End of period, net of minorities (3) Pay-out ratio: 60%
2004 RORAC(4)
36.9%30.8%
19.8%17.4% 17.7%
Private & AM
NE Retail Corporate Group
Cost of equity 8.58%
ABSORBED CAPITAL(1)
Total Group 9.6 bn
2003
+2.5
y/y % ch.(2)
9.8 bn
2004
Retail
51.3% +0.9
28.9%
NE
27.7% +10.0
12.9%
Corporate
12.4% +9.3
49.1%
Private & AM 8.6% +12.09.1%
Divisional weight
Excess Capital(3) 0.2 bn 0.8 bn
Ma
rgin
al
RA
RO
RA
C
(4) Return on risk adjusted capital = Marginal Rarorac + Cost of Equity(2) On Absorbed Capital
16
RETAIL DIVISION: STRONG LENDING MARKET SHARE INCREASE DRIVING NET INTEREST INCOME TURNAROUND
(1) Management accounts
(2) Management accounts, includes also maximum overdraft charges
630596
557 547563 570 593
612
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
STEADY GROWTH OF NET INTEREST INCOME (ex dividends)
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)
EXCELLENT LENDING GROWTH, +16.4% Y/Y GOOD PRICING RESILIENCE IN ALL KEY MARKETS
Avg. Euribor 2.46%
2.78%
2.14% 2.09%2.16%
2.09% 2.11% 2.15%
17
-610 vs. June 04
RETAIL DIVISION OPERATIONAL ACHIEVEMENTS
1H04
25,467
2004
25,136
TOTAL STAFF
EFFECTIVE COST MANAGEMENT ALREADY TANGIBLE…
HIGH FOCUS ON WEALTH MANAGEMENT PRODUCTS GENERATING RECURRING REVENUES
2003
0.1
2004
3.5
SALES OF SEGR. ACCOUNTS INVESTING IN FUNDS, bn
GOOD CUSTOMER SATISFACTION POSITIVELY IMPACTING CHURN RATE
UniCredit Banca:
70,000 Small Business customers acquired
30,000 net new Small Business customers
… WITH BENEFITS FROM STAFF REDUCTION EXPECTED IN 2005
2002(1)
2,956
2003(1)
2,930
OPERATING COSTS, mln
2004
2,957
FEB 05
24,857
(1) Pro-forma to make perimeter comparable with 2004
18
CORPORATE DIVISION: NET INTEREST INCOME GROWTH DRIVEN BY HIGHER LOANS AND RESILIENT SPREAD
(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
NET INTEREST INCOME (excl. dividends), (mln)
(1) Of which ~12 mln recovered as “Other income”
2003 2004
1,4211,486 +4.6%
23.4
TOTAL LOANS (ex Repos), (bn)
Dec03
62.8
Dec04 (Gross of
securitisations)
65.9 +4.9% y/y
Of which: M/L2
25.6 +9.2% y/y
3
Securitisations
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
Significant contribution of M/L term lending
UBI share of wallet at 12.4%3 (vs 12.3% as at Dec03)
Higher lending spreads for UBI (2.34% Avg. 2004, +8 bp y/y)
356
387360
4Q03 3Q04 4Q04
+1.1%
-7.0%
4Q negatively impacted by Locat securitisation (~22 mln1)
19
HIGH FOCUS ON SERVICE REVENUES
NET COMMISSIONS, (mln)
2003 2004
571604 +5.8%
143131
157
4Q03 3Q04 4Q04
+9.4%
+19.4%
Foreign trade services: 135 mln, +24.1% y/y
Transaction services: 71 mln, +7.8% y/y
Commercial focus on most recurring service-revenues:
More balanced revenue composition for UBM
Derivatives still main source of revenues for UBM (~75%) …
… with a more balanced mix: higher weight of Institutional …
… and lower weight of Corporate Derivatives
20
Dec04
… with increased market shares:
PRIVATE & ASSET MANAGEMENT DIVISION: SIGNIFICANT GROWTH OF TOTAL FINANCIAL ASSETS LEADING TO HIGHER REVENUES
Strong Tot. Financial Assets growth (+12.0% y/y1, up to 172 bn) …
All figures at unchanged FX(1) 10.3% net of SAFECO AM acquisition, completed in 4Q04
… driven by good net sales …
Asset Management: 3.5 bn
Asset Gathering: 8 bn2, of which 1.2 bn of AM products
Italy – Mutual Funds 13.76%
Poland – Invest. Funds 34.46%
Xelion – Net Sales4 25.23%
(4) Assoreti perimeter(2) Of which 4.9 bn related to relevant equity investments transferred under UPB’s custody
2003 2004
1,085
1,167
91
78
+7.5%
TOTAL REVENUES (bn)
Up-front fees
Net Commissions (ex up-front fees)
Other revenues
912815
179
177 -1.1%
-13.5%
+11.9%
Same growth than Total Financial Assets = stability of pricing
Dec03
13.39%
30.36%
13.66%
Asset Management: +10.0% y/y, up to 130 bn
Asset Gathering: +11.2% y/y, up to 66 bn
… and excellent performances … 32nd percentile rank on average worldwide for Pioneer “long funds”
24th percentile rank for mutual funds sold in Italy3 vs Italian peers
(3) Calculated on the aggregate Italy + Luxemburg domiciled Pioneer branded mutual funds
21
ENHANCED EFFICIENCY AND STRONG OPERATING INCOME PERFORMANCE
All figures at unchanged FX
Improved efficiency, exploiting economies of scale
Operating Income: 4Q04 best quarter since P&AM Division inception
Net income up to 390 mln (+61% y/y) also positively impacted by extraordinary items and lower taxes
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
C/I RATIO, %
3Q04 4Q04
63.759.9 -374bp
2003 2004
64.163.2 -77bp
OPERATING INCOME (mln)
3Q04 4Q04
99135 +36.9%
2003 2004
390 429 +9.8%
22
GOOD LENDING GROWTH: +10.5% Y/Y (+18.5% at current FX)
GROWTH IN MUTUAL FUNDS DRIVING HIGHER REVENUES AND GAINS IN MARKET SHARE
All figures stated at unchanged FX
(1) Management accounts in LASITAS
2004
1,647
2003
Mortgages(1) (Euro mln)
2,104
+27.8%
2004
281
2003
Leasing (Euro mln)
385
+36.7%
2004
1,854
2003
Consumer credit(1) (Euro mln)
2,056
+10.9%
2004
3,566
2003
Mutual Funds(2) (Euro mln)
4,835
+35.6%
2004
628
2003
Net non interest income
(Euro mln)
681+8.4%
2004
30.4%
2003
Market share (PPIM(3))
34.5%+4.1 pp
NEW EUROPE DIVISION: SIGNIFICANT VOLUME GROWTH
(3) Pioneer Pekao Investment Management
(2) New Europe Business Area of Pioneer is included at current FX
23
CONSTANT IMPROVEMENT IN ASSET QUALITY
NET INCOME POSITIVELY IMPACTED BY LOWER TAXES
HIGHER OPERATING INCOME: +6.6% Y/Y
ITAS
2004
1,751
2003
Total Revenues (Euro mln)
1,835
+4.8%
2004
56.0
2003
Cost/income (%)
55.2-0.8 pp
2004
122
2003
Cost of risk (bp)
89-33 bp
2004
64.1%
2003
Coverage ratio of doubtful loans
70.8%
+6.7 pp
2004
25.3
2003
Tax rate (%)
17.6-7.7 pp
2004
324
2003
Attributable Net income (Euro mln)
398+22.8%
GOOD ECONOMIC PERFORMANCE COUPLED WITH IMPROVED ASSET QUALITY
All figures stated at unchanged FX
24
NET INCOME FOR THE GROUP
y/y % ch.
167Pekao +39.6%
102Zaba +10.6%
NE Division
73KFS +25.5%
56Others +5.7%
PEKAO, ZABA & KFS INCREASE THEIR WEIGHT IN THE GROUP
PEKAO 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)
ZABA 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)
KFS Higher quality of revenues through fee 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)
(1) Management accounts in LAS, only LC(2) Pioneer Pekao Investment Management
All figures stated at unchanged FX
398 +22.8(3)%
(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
Deliver efficiency improvement in line with 3-year plan
Strict control of cost of risk
Active Capital Management driving value creation and total shareholder return
2004 RESULTS - ANNEXES
27
AGENDA
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
28 (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
4Q04 & FY04 CONSOLIDATED INCOME STATEMENT
Net extraordinary income
Net non interest income
Total revenues
Operating income
Provisions on loans
Administrative costs (incl. depr.)
Other net provisions(1)
Goodwill depr.
(Euro mln)
Minorities
Taxes
% ch. on 4Q03
Net interest income (incl. div.)
- of which Dividends
-3.7
+5.3
-41.7
-61.9
+2.5
+9.6
-23.5
+1.7
+54.5
-32.5
+15.2
% ch. on 3Q04 4Q04
1,277
2,679
-1,555
1,124
-231
61
-91
-61
-34
-141
1,402
98
+5.1
+7.5
+4.1
+10.9
+6.3
+9.1
n.m.
-15.3
-32.0
-46.6
+9.7
+60.7 +27.3
y/y % ch. FY04
5,175
10,375
-5,941
4,434
-891
218
-149
-276
-169
-1,036
5,200
280
Net income +65.0627 +37.8 2,131 +8.7
-5.3
-0.7
-6.9
+1.4
+3.5
-5.8
-46.8
+4.5
+36.3
-22.4
+4.3
+16.2
29
Retail Division
Corporate Division
Priv.& AM Division
NE Division
Total Group(1)
Total revenues+6.0% -3.3% +18.2% +16.4% +7.5%
Operating costs
Operating income
Net write-downs of loans
Net income for the Group
C/I Ratio
-0.5% +9.5% +10.8% +29.2% +6.3%
+20.1% -9.2% +30.7% -1.5% +9.1%
+21.5% -16.5% n.m. -4.3% +4.1%
-21.9% +4.9% +63.6% -7.4% +37.8%
-4.2 pp +4.6 pp -4.0 pp +5.8 pp -0.7 pp
(1) Balance due to the Parent Company, other Group companies and elisions
(2) Calculated on data at end of period FX
(Euro mln - Data at end of period FX)
DIVISIONAL CONTRIBUTION TO CONSOLIDATED RESULTS IN 4Q04
1,157 695 324 529 2,679
-743 -267 -193 -309 -1,555
414 428 131 219 1,124
-84 -103 -1.5 -30 -231
126 203 143 106 627
64.2% 38.4% 59.6% 58.6% 58.0%
(3) Including all the employees of Koc Financial Services (3,921 as at 31.12.2004)
Employees(3) 25,136 6,334 3,700 29,540 70,543
4Q04 RESULTS
% Change vs 3Q04(2)
% Change vs 3Q04(2)
% Change vs 3Q04(2)
% Change vs 3Q04(2)
% Change vs 3Q04(2)
Change in pp vs 3Q04(2)
30
6.2% 6.2%7.2%
6.0%
4.9%5.6% 5.5%
5.3%
8.0%
12.1%
13.3%
2.1%
4.6%
12.2%
11.7%
9.1%
0%
2%
4%
6%
8%
10%
12%
14%
mar-03 jun-03 sep-03 dec-03 mar-04 jun-04 sep-04 dec-04
NET INTEREST INCOME
4Q03 1Q043Q032Q031Q03
Avg. Euribor 2.46%
2.78%
2.14% 2.09%2.16%
2Q04
2.09%
1,140 1,1891,1601,1931,251
885 930911924988
1,210
939
255 259251268263 270
3Q04
2.11%
1,217
943
274
(1) Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos)
NET INTEREST INCOME excl. Dividends
1,304
981
323
4Q04
2.15%
+4.1%
+10.9%
On M/L term loans (1)
On total loans (1)
UCI(2) Market Share
Italian industry
Total Loans(1), y/y % ch.
UCI(2)
(2) Proforma including ANBI in 2003 and excluding Locat and District Bonds securitisations in 2004
New Europe
Italy ex. Parent Company 10.74%
10.88%10.83%
10.26%
11.07%11.03%
10.80%
10.70%
Jun03 Dec03 Jun04 Dec04
11.11%(1)
On total loans (1) ex securitisations
+7.2%
+14.4%
31
% ch. on Dec03
% ch. on Sep04
GOOD VOLUME GROWTH MAINLY SUPPORTED BY RETAIL AND NEW EUROPE
Dec04
TOTAL CUSTOMER LOANS1
Breakdown By Division (bn)
1 Excl. Repos
+6.0
Retail +16.2
Corporate +0.1
New Europe +18.6
TOTAL GROUP +7.6
Other
56.7
62.9
14.0
135.6
2.0
+4.5
+0.4
+1.8
-35.3 -20.9
+2.5New Europe (unchanged FX) +10.614.0
32
Up-front(1)
Other
Weight of Up-front on Total (%)
NET COMMISSIONS: QUARTERLY TREND
869
10.6
4Q04
92
777
781
1Q03
798
1Q04
839
2Q03
830
3Q03
857
4Q03
686630
699673656
151 183 157 158 112
855
2Q04
116
19.3 21.8 18.9 18.4 14.1 13.6
3Q04
85
11.1
682739
+13.9%
767
(1) Up-front on AUM and AUC referred to UniCredit Banca, UniCredit Private Banking and Xelion
Accounting data
33
41.4
23.9
23.1
34.8
123.2
Dec04
40.4
25.8
23.9
37.9
128.0
Sep04
NET SALES OF MUTUAL FUNDS (Italy): UCI vs ITALIAN INDUSTRY
DETAILS ON TRENDS OF UCI’S TOTAL ASSET UNDER MANAGEMENT AND MARKET SHARE IN THE ITALIAN MUTUAL FUND INDUSTRY
Dec03
UCI
Jun04 Sep04
13.39% 13.51% 13.63%
UCI TOTAL AUM(bn)
Italy US, New Europe & Intl.
Mutual & Hedge Funds
Segregated Accounts
Insurance
Dec03
+4.6% vs Dec. 03
42.8
22.7
20.6
31.3
117.4
+11.2%
+4.9%
+12.1%
+5.3%
-3.3%
+9.0%
+3.9%1
+3.4%
+7.6%
-2.2%
+21.2% vs Dec. 03
+9.0%1 vs Dec. 03
ASSET MIX (PGAM)
Avg.3Q03
Equity + Hedge
Avg.4Q04
30.1% 31.0%
Bond + Liquidity 61.3% 61.4%
Balanced + others 8.6% 7.6%
Dec04
13.76%
US, New Europe & International
-391
UCI
ITALIAN INDUSTRY
-9,803
TOP 3 PLAYERS
(EX UCI)
-18,117
Avg.2003 Avg.2004
27.4% 30.3%
62.5% 61.1%
10.1% 8.6%
MUTUAL FUNDS (Italy): UCI’S MARKET SHARE2 EVOLUTION
(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)
(1) +2.1% Dec04/Sep04 % change and +7.1% Y/Y % change net of SAFECO AM acquisition completed in 4Q04
34
INCOME FROM FINANCIAL TRANSACTIONS(mln)
99145
4Q031Q03 2Q03 3Q03
436
365
349
324
263
196
239
184
292
1Q04
199
2Q04
295
252
3Q04
233
4Q04
173
DETAILS ON CONSOLIDATED INCOME FROM FINANCIAL TRANSACTIONS – QUARTERLY TREND
Of which: Derivatives1
(1) Corporate + Institutional + Retail Derivatives
35
NON OPERATING ITEMS
Operating income
Goodwill amort.
Net Income
Net write-downs of loans
Other net provisions(1)
Net extraord. income
Taxes
Minorities
1Q04
1,070
-71
466
-192
-9
2
-296
-38
2Q04
1,210
-72
583
-246
-27
100
-335
-47
4,434
-276
2,131
FY04
-891
-279
218
-1,036
-169
(1) Net write-downs of financial investments & provisions for risks and charges
3Q04
1,030
-72
455
-222
-22
55
-264
-50
4Q04
1,124
-61
627
-231
-221
61
-141
-34
Reserve for general bkg risk - -130 - 130
36
-on tot. Gross doubtful loans, % 37.9% 36.5% 48.0%72.4%38.2% 35.7% 70.8% 48.2%
-on total gross NPL, % 48.7% 42.6% 84.5% 60.1%48.7% 40.7% 84.8% 60.2%
Total gross doubtful loans 3,479 2,869 2,806 9,311+8.4% +1.7%
Net Doubtful Loans/Tot. Net Loans,% 3.58%3.98% 2.82% 5.83%
3,536
3.86%
+1.6% -4.0%2,755
2.62%
3,040
6.32%
9,469
3.49%
% change on Sep04
Gross Doubtful Loans/Tot. Gr. Loans,% 6.60%6.23% 4.32% 18.1%6.06% 3.97% 18.5% 6.47%
Total net doubtful loans 2,160 1,823 774 4,839+14.8% +1.3%
2,185+1.2% -2.8%
1,771 888 4,901% change on Sep04
ASSET QUALITY: DETAILS BY DIVISIONS
Coverage ratios
Retail Division
Sep 04 Dec 04
1 Balance due to other Group companies
(mln - Data at end of period FX)
Corporate Division
NE Division Total Group 1
Gross NPL
% change on Sep04
Gross NPL/Tot. Gr. Loans,%
Net NPL/Tot. Net Loans,%
2,095 1,9402,32
06,451
+5.6% +2.1%
3.75% 2.92% 15.0% 4.57%
1.98% 1.72% 2.71% 1.91%
2,153
3.69%
1.95%
+2.8% -2.5%
1,891
2.72%
1.66%
2,450
14.9%
2.66%
6,586
4.50%
1.87%
Net NPL
% change on Sep04
1,075 1,113 359 2,577
+3.9% +1.7%
1,105
+2.7% +0.9%
1,122 373 2,621
Sep 04 Dec.04 Sep 04 Dec 04 Sep 04 Dec 04
37
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
AGENDA
38
RETAIL DIVISION: P&L
Interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Net operating income
Net income
Cost/income ratio, %
Y/y% ch.
Q/q% ch.
4Q04
Net provisions
mln
Net income for the Group(2)
Y/y% ch.
- of which: Staff costs
- of which: Other adm. expenses
- o/w: Net write-down of loans
614
543
1,157
-743
414
126
64.2
126
-388
-334
-84
-110
+1.5
+11.5
+6.0
-0.5
+20.1
-21.8
-421 bp
-21.9
+0.7
+0.2
+21.5
+36.2
+13.9
+10.6
+12.3
+3.4
+32.8
+59.8
-552 bp
+54.9
+3.3
+12.4
-3.1
-12.3
+0.9
-2.3
-0.6
+2.6
-6.8
-6.6
+211 bp
-6.7
+2.8
+4.9
+15.2
+5.6
2004
2,360
1,963
4,323
-2,957
1,366
546
68.4
545
-1,543
-1,322
-281
-335
Net extraordinary income (loss) -123 n.m. n.m. n.m.-129
39
Interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Net operating income
Net income
Cost/income ratio, %
TOTAL(1)Banca d. Umbria
UniCredit Banca
Net provisions
mln
Net income for the Group(2)
UBCasa
- of which: Staff costs
- of which: Other costs
Clarima
RETAIL DIVISION: 2004 RESULTS BREAKDOWN BY COMPANY
- o/w: Net write-down of loans
2,031
1,817
3,848
-2,681
1,168
412
69.7
396
-1,431
-1,166
-208
-302
107
73
180
-97
83
62
53.8
39
-51
-42
-12
-16
113
12
125
-72
53
21
57.8
28
-24
-45
-23
-23
113
37
150
-72
78
47
48.1
47
-18
-53
-37
-37
2,360
1,963
4,323
-2,957
1,366
546
68.4
545
-1,543
-1,322
-281
-335
(1) Balance due to rounding and elisions of infragroup dividends and goodwill amortisation
CR Carpi
37
23
60
-35
25
15
58.8
14
-18
-15
-2
-2
(2) Net of consolidation adjustments and minorities
Net extraordinary income (loss) -132 3 1 1 -129-
40
4.8 5.7
RETAIL DIVISION - MORTGAGES AND CONSUMER FINANCING
RESIDENTIAL MORTGAGESSTOCK, bn NEW FLOWS, bn
CONSUMER FINANCINGDEC03 DEC04
26.2
32.4 +22.9%
NEW FLOWS OF PERSONAL LOANS, mln
2003 2004
93 mln
339 mln
REVOLVING CARDS TOTAL SPENDING(3) (+275k revolving cards in 2004)
2Q04
29.3
mkt share(1)
17.17%17.61% 17.71%
(1) Group market share, related to mortgages to households as of Bank of Italy definition in table TDME0070 of the monthly bulletin
(3) POS and ATM spending
2003 2004
693
1,163
+67.9%
2003 2004
6.98.4
+20.9%
2.02.5
UCB
UBCasa
+19.3%
+24.1%
DEC03 DEC04
2.1
2.8
+31.2%
STOCK, bn
(2) Calculated on ASSOFIN data. Not calculated in 2003 because personal loans were sold directly by UCB and not through Clarima
mkt share(4)
2.4%
7.4%
2004 mkt share(2) at 13.2%
(4) Calculated on ASSOFIN data
41
RETAIL DIVISION - SMALL BUSINESS STOCK, SPREAD AND CUSTOMER ACQUISITION
STOCK, bn
20042003
SHORT TERM SPREAD(1)
2003 1Q04
(1) Management accounts, includes also maximum overdraft charges
15.0
16.6 +10.8% 8.63%
8.21%
2Q04
8.25%
3Q04
8.32%
4Q04
8.37%
4Q03 1Q04
12,600
18,000
2Q04
19,000
3Q04
15,000
4Q04
17,500
QUARTERLY TRENDS IN SMALL BUSINESS CUSTOMER ACQUISITION
42
RETAIL DIVISION - CUSTOMER LOANS AND CUSTOMER DEPOSITS BREAKDOWN AND DETAILS OF SHORT TERM SPREADS
SB loans (1)
Residential mortgages (2)
Cons. creditOther loans
EOP LOANS, Euro bn
UCB AVG. MARK UP(5) (Households), %
Other deposits
Households c/accounts
Bonds
EOP DEPOSITS, Euro bn UCB AVG. MARK-DOWN(5) (Households), %
2Q042003pro-forma(3)
2Q042003
+8.1%
(1) Includes short term and m/l term loans(2) Includes only households mortgages(3) Including ANBI
+11.0%
+3.3%
+7.8%
+0.2%
+18.3%
+0.4%
+1.6%
48.8
26.2
15.0
2.15.5
60.2
17.7
15.3
27.2
UCB AVG. MARK UP(5) (Small Business), %
7.18
1Q03
2.32
5.99
7.18
2Q03
2.03
5.93
7.33
3Q03
1.78
5.95
7.04
4Q03
1.72
5.69
7.03
1Q04
1.65
5.60
(4) 2Q04 increase vs. December is due to the issue of bonds by UBCasa to fund mortgage book expansion
4Q04
4Q04
56.7
67.2
32.2
22.8(4)
16.6
2.85.0
15.1
29.3
+7.4%
+10.5%
+7.3%
+21.8%-8.1%
+8.8%
-1.9%
+6.2%
+6.5%
7.08
2Q04
1.65
5.47
(5) Source: Bank of Italy matrix data
52.4
63.9
29.2
21.0(4)
15.5
2.35.5
15.4
27.6
7.33
3Q04
1.67
5.55
+5.1%
7.21
4Q04
1.71
5.42
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
43
RETAIL DIVISION - NET COMMISSIONS
RETAIL DIVISION: NET COMMISSIONS
mln
Securities in custody
TOTAL RETAIL DIVISION
Total Commissions from Wealth Management
- Mutual funds (1)
- Segregated Accounts (2)
Other services
- Insurance Products (3)
Breakdown by nature
(1) Includes subscription and management fees from Plain Vanilla Mutual Funds(2) Includes management fees related to underlying Mutual Funds. Net commissions related to Focus Invest do no impact consolidated results
Y/y% ch.
+18.2
+9.5
+2.7
-41.8
n.m.
+12.4
-5.4
4Q04
98
386
159
38
45
129
77
(3) Includes management fees related to underlying Mutual Funds
Q/q% ch.
+100.1
+17.4
+0.2
-23.9
+3.2
+6.6
+16.7
2004
248
1,341
619
203
110
474
305
Y/y% ch.
-18.3
-3.6
-7.1
-5.8
+64.4
+12.6
-20.4
44
RETAIL DIVISION - DETAILS ON ASSET QUALITY
Coverage ratio 48.7% +4 bp
Provisions on performing loans 315 +4.3%
Coverage ratio 0.58% -2 bp
Gross Doubtful Loans 3,536 +1.6%
Coverage ratio 38.2% +30 bp
Weight on Gross Loans 6.06% -17 bp
mln, where not specified
Gross Non Performing Loans 2,153 +2.8%
Weight on Gross Loans 3.69% -6 bp
Cost of risk 50 bp - bp
Dec. 04ch. on
Sep. 04
2004ch. on 2003
(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
-5.7%
2003 2004
908
856
REDUCTION OF NET FLOWS OF NEW DOUBTFUL LOANS(1) VS. 2003 …
-8.0%
1H04 2H04
446
410
… CONFIRMED BY 2H04 TREND VS. 1H04
45
CUSTOMER SATISFACTION
PRIVATE CUSTOMERS, TRIM INDEX (1)
2003 4Q04
47
51
2003 4Q04
4340
UNICREDIT BANCA AVG. TOP 4 COMPETITORS
Stability of front-end relationship with customers
Improved waiting time (shorter queues) Improved advisory on investment services,
with room for further improvement
SMALL BUSINESS, TRIM INDEX (1)
2003 4Q04
42
48
2003 4Q04
41
36
UNICREDIT BANCA AVG. TOP 4 COMPETITORS
Dedicated service model
Improved advisory on lending products
Focus on quality of sales
Source: NFO Infratest, Customer satisfaction analyses
(1) On a scale from 0 to 70
46
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
AGENDA
47
CORPORATE DIVISION: 2004 INCOME STATEMENT- BREAKDOWN BY COMPANY
Net Interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Net operating income
Net income
TOTAL1UBI
Net provisions
(Euro mln)
Net income for the group
- of which: Staff costs
- of which: Other admin. expenses
Other companies
- o/w: Net write-downs of loans
1,287
584
1,871
1,338
-231
-299
-533
505
493
28.5%Cost/income Ratio
-450
-504
UBM LOCAT
-32
684
652
426
-103
-107
-226
308
309
34.7%
9
3
186
30
216
160
-22
-31
-56
93
96
25.7%
-23
-25
64
233
297
99
-102
-88
-198
44
51
66.8%
-6
-31
1,504
1,531
3,035
2,022
-458
-526
-1,013
950
949
33.4%
-476
-562
1 Balance due to roundings and elisions of infragroup dividends and goodwill amortisation
48
CORPORATE DIVISION: 4Q04 AND 2004 INCOME STATEMENT
Net interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. depr.)
Operating income
Net extraordinary income
Net income
Total net provisions
Taxes
Net income for the group
Cost Income ratio, %
(Euro mln) 4Q04/3Q04 % ch. 4Q04
695
-267
428
-70
38.4%
20
-175
203
203
365
330
20044Q04/4Q03 % ch.
y/y % ch.
-3.2
+9.4
-9.7
-54.5
+449bp
n.s.
+36.7
+5.2
+5.2
-5.9
-
-5.8
+6.0
-11.9
+12.9
+438bp
n.s.
-40.9
+89.7
+89.7
+3.4
-14.3
3,035
1,013
2,022
-596
33.4%
86
-562
949
950
1,504
1,531
-7.1
-0.9
-9.9
-4.6
+210bp
n.s.
-12.3
-2.7
-3.0
+2.0
-14.6
49
CORPORATE DIVISION - DETAILS ON ASSET QUALITY
Coverage ratio 40.7% -198 bp
2004ch. on 2003
Provisions on performing loans 751 -4.4%
Coverage ratio 1.13% -10 bp
Gross Doubtful Loans 2,755 -4.0%
Coverage ratio 35.7% -74 bp
Cost of risk 70 bp +1 bp2
Weight on Gross Loans 3.97% -35 bp
mln, where not specified
Gross Non Performing Loans 1,891 -2.5%
Weight on Gross Loans 2.72% -19 bp
Dec04ch. on Sep04
(2) Calculated on FY03 cost of risk (91 bp) net of extraordinary provisions on Parmalat (22 bp)
(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
NET FLOWS OF NEW DOUBTFUL LOANS1, (mln)
1Q04
377
-43.4%
2Q04 3Q04 4Q04
143
233
132
50
(Euro mln)
Net interest income 326
Net income for the group
Cost Income RATIO, %
132
28.4%
Net non interest income 156
Total revenues
Operating costs
Operating income
482
-137
345
Net write-downs of loans
Other net provisions
-100
-49
Of which:
102
- Trading profits 40
- Net commissions
UNICREDIT BANCA D’IMPRESA: 4Q04 AND 2004 INCOME STATEMENT
4Q04/3Q04 % ch. 4Q04 20044Q04/4Q03
% ch. y/y
% ch.
-0.5
+11.8
-46 bp
+19.3
+5.2
+3.5
+5.9
-13.1
n.s.
+14.9
+15.3
+13.6
+187.0
+12 bp
+17.9
+14.9
+15.4
+14.8
-57.0
n.s.
+18.7
-5.3
1,287
493
28.5%
584
1,871
-533
1,338
-450
-54
378
184
+9.2
+12.8
-22 bp
-6.3
+3.8
+3.0
+4.1
-10.7
+35.1
+15.4
-33.9
51
21.4
UBI AVG. CUSTOMER LOANS1, bn
+2.4%
UBI AVG. TOTAL LENDING SPREAD(1), %
2.18%2.40%
2.30%
(1) Average quarterly figures; only performing loans (“impieghi vivi”) taken into account
45.046.5 47.6
4Q03 3Q04 4Q04 4Q03 3Q04 4Q04
(mln, end of period figures)
Largest groups
Dec032
7,369
Dec042
4,904
Y/Y % ch.
-33.5%
SMEs & other corporate 27,559 28,538 +3.6%
Public Sect. & Others3 6,864 10,106 +47.2%
(3) Including non-financial companies with Total Revenues lower than 1.5 mln (around 7 bn as of Dec04 vs 4.7 bn as of Dec03)
Financial companies 4,244 3,348 -21.1%
TOTAL 46,036 46,896 +1.9%
- Share of Wallet 12.3% 12.4% +10 bp
-10 bp
UBI NET INTEREST MARGIN (excluding dividends), mln
295325 323
4Q03 3Q04 4Q04
o/w: M/L 18.6 19.7
(2) Source: Credit Bureau
-0.6% q/q
+9.5% y/y
UBI: NET INTEREST INCOME (excluding DIVIDENDS) QUARTERLY TREND & LOAN PORTFOLIO COMPOSITION
52
UBM: 4Q04 AND 2004 INCOME STATEMENT
(Euro mln)
Total revenues
Staff costs
Other costs (incl. depr.)
Operating income
Net income
C/I Ratio
80
-24
-36
21
26
73.6%
Net extraord. income 6
Taxes -1
4Q04/3Q04 % ch. 4Q04 20044Q04/4Q03
% ch. y/y
% ch.
-39.4
-14.8
+51.9
-74.0
-36.9
vs. 38.5%
n.s.
n.s.
-52.8
-19.7
-5.3
-79.5
-58.4
vs.39.3%
+34.1
n.s.
652
-107
-119
426
309
34.7%
63
-184
-33.9
-21.0
-7.6
-41.0
-31.3
+786 bp
n.s.
-28.5
Net interest income (incl. div.)
Net non interest income
-15
96
+49.6
-33.1
n.s.
-44.1
-32
684
n.s.
-24.5
Avg. daily VAR 1 3.9 n.s.
1 Pls. note that the avg. daily VAR refers to UBM standing alone for 2003 and 1H04, while for 2H04 it reflects UBM new perimeter (incl. TradingLab, merged in UBM from July 1st, 2004)
3.9 n.s. n.s.
53
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
AGENDA
54
PRIVATE & AM DIVISION: 2004 INCOME STATEMENT – BREAKDOWN BY COMPANY
Net interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Operating income
Net income
Cost/Income Ratio
Total net provisions
Net income for the group
- of which: Staff costs
- of which: other admin. expenses
(Euro mln)
Net extraordinary income
TOTAL DIVISION2
101
1,066
1,167
-738
-331
-377
429
-20
401
390
63.2%
68
UPB +
Subsidiaries
74
282
356
-233
-130
-99
123
-8
68
65
65.5%
-
11
722
733
-377
-176
-186
356
+4
257
351
51.5%
53
14
54
68
-110
-16
-85
-43
-4
-35
-25
n.s.
5
PGAM Group UniCredit Xelion Banca
2
9
11
-18
-9
-7
-7
-2
-5
-1
n.s.
10
Other Companies1
1 Mainly companies deriving from the acquisition of ING and not integrated in UniCredit Xelion Banca and UIB Luxemburg2 Balance due to roundings and elisions of infragroup dividends and goodwill amortisation
55
PRIVATE & AM DIVISION: 4Q04 AND 2004 INCOME STATEMENT
Net interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. depr.)
Operating income
Net extraordinary income
Net income
Total net provisions
Taxes
Net income for the Group
Cost Income ratio, %
4Q04/3Q04 % ch. 4Q04
324
-193
131
-14
59.6%
47
-18
143
146
28
296
20044Q04/4Q03 % ch. Y/y % ch.
+24.1
+16.8
+36.9
-25.5
-374 bp
n.s.
n.s.
+68.1
+64.9
+11.8
+25.3
+9.9
-1.0
+31.8
-39.9
-665 bp
n.s.
-18.1
n.s.
n.s.
+14.0
+9.6
1,167
-738
429
-76
63.2%
68
-20
390
401
101
1,066
+7.5
+6.2
+9.8
-29.3
-77 bp
n.s.
-37.1
+61.1
+64.8
+6.9
+7.5
(Euro mln - Data at current FX, % ch. at fixed FX)
56
1 Including Repos
PRIVATE & AM DIVISION: DETAILS ON TOTAL FINANCIAL ASSETS Y/Y AND 4Q/3Q TRENDS
3 Including Euro 2.3 bn deriving from the acquisition of SAFECO AM completed in December 2004
(bn - Data at end of period FX)
Securities in custody
Direct deposits1
AUMs
PRIVATE & AM DIVISION TOTAL FINANCIAL ASSETS
+5.1%2
+10.8% Y/Y
Dec03
5.7
25.5
124.0
6.1
26.9
130.6
155.2163.6
6.9
29.3
135.73
171.93
Sep04 Dec04
+12.0% Y/Y at fixed FX
2 +6.4% at fixed FX
571 Balance due to roundings
Italy
New Europe
89,095
2,577
TOTAL PIONEER
Alternative Investments3
119,436
2,449
-28
716
3,499
1,431
US 21,884 767
International (ex-Italy) 5,880 2,045
AuM as at 31.12.2003
US in USD 27,639 1,009
92,809
3,702
129,6143
3,830
25,0323
8,071
AuM as at 31.12.20041
34,0963
AuM as at 28.2.20052
93,925
25,678
8,746
4,171
132,520
4,084
34,042
2004 Net sales
PIONEER GROUP: DETAILS ON NET SALES AND AUM TREND (Dec03-Feb04)
2 Provisional figures; balance due to Market Performance (including FX effect)
3,742
408
4,403
-49
106
147
1,891
30
239
439
177
-210
380
-275
Net sales Jan-Feb.05
2004 Mkt. Perf. (mln - Data at end of period FX)
3 Balance due to SAFECO AM acquisition (Euro 2,276 mln, around USD 3 bn)
58
Finanza & Futuro
Rasbank + BNL Inv.ti4 Credem + Euromob.
6,905Credem + Euromob.
1 Calculated on average PFAs2 AUMs, Securities in Custody, Bancassurance and liquidity3 Ranking taking into account only the 10 major Italian players by Total Financial Assets as at 31.12.20044 BNL Investimenti acquired by RasBank during 2004
Source: Assoreti
Net Inflows:2,019 Mln,1st in Italy
Data as at 31.12.2004 – Mln
TOTAL NET INFLOWS 2 & 3
Xelion 2,019
Mediolanum 1,285
Azimut 1,035
Banca Generali 773
607
Credem + Euromob. 513
Credit Suisse
409Rasbank + BNL Inv.ti4
211
Finanza & Futuro -174
Fideuram + SPI -867
Data as at 31.12.2004
2,060 PFAs,5th in Italy
NUMBER OF PFAs
Fideuram + SPI 4,273
Mediolanum 4,049
3,811
Banca Generali 2,220
Finanza & Futuro 1,150
Banca 121
1,082
Azimut 881
698
Tot. Fin. Assets:~12.1 bn,5th in Italy
Data as at 31.12.2004 – Mln
TOTAL FINANCIAL ASSETS
Fideuram + SPI 58,882
Mediolanum 20,804
Rasbank + BNL Inv.ti4 18,946
8,413Azimut
7,852
Credit Suisse 7,123
Xelion 12,058
14,132
Fineco 6,474
Net Inflows per PFA1:2rd among Top-
Players
Data as at 31.12.2004 – Mln
NET INFLOWS PER PFA 2 & 3
Azimut 1.27
Xelion 0.94
Credit Suisse 0.67
Credem + Euromob. 0.47
0.39
Banca Generali
0.32
Finanza & Futuro
0.10
-0.15
Fideuram + SPI -0.20
Mediolanum
0.29
XELION: LEADERSHIP FOR TOTAL NET SALES(25.2% MARKET SHARE) AND OUTSTANDING PRODUCTIVITY PER PFA
Rasbank + BNL Inv.ti4
Xelion 2,060
Fineco 1,476
Fineco Fineco
Banca Generali
59
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
AGENDA
60
2.7%(1)
2.1%(1)
(Euro mln)
Net interest income(2)
Net non interest income
Total revenues
Operating Costs(3)
Operating income
Net write-down of loans
Net extraordinary income
Net income
Other net provisions(4)
Taxes
(4) Including provisions to reserve for general banking risk
(2) Including dividends(3) Including depreciation
%ch. at unchanged FX
6.7%(1)
42.4%(1)
18.9%(1)
23.3%(1)
(1) Weight of the bank Total Revenues in 4Q04 on Division Total Revenues – only UCI’s portion; balance due to UniLeasing Romania and Xelion Poland
Net income for the Group
Tax Rate (%)
NEW EUROPE DIVISION % ch. on 4Q03
+6.0
+6.7
+6.3
+5.7
+7.1
-41.8
+90.9
+49.0
-54.3
+41.7
+38.6
-1.1 pp
3.5%(1)
BREAKDOWNOF REVENUES
ITAS
4Q04
299
176
475
-279
196
-26
21
143
-14
-34
97
19.1
% ch. on 3Q04
+1.0
+6.0
+2.8
+13.9
-9.7
-16.7
+50.0
-15.4
n.m.
+13.3
-16.4
+4.1 pp
FY04
1,154
681
1,835
-1,013
822
-125
31
585
-18
-125
398
17.6
y/y % ch.
+2.8
+8.4
+4.8
+3.4
+6.6
-19.4
-13.9
+27.7
-54.3
-19.4
+22.8
-7.7 pp
Cost of Risk (bp) 89 -33 bp
ROE (%) 19.9 +2.7 pp
Cost/Income ratio (%) -0.4 pp58.7 +5.7 pp
55.2 -0.8 pp
NEW EUROPE DIVISION: 4Q04 & FY04 INCOME STATEMENT
61
(1) Excluding for KFS (included at current FX)
NEW EUROPE DIVISION: 4Q04 & FY04 TREND IN VOLUMES
ITAS
% ch. on
Sep04
Dec04(Euro mln)
% ch. on
Dec03
Net Customer Loans
- o/w Pekao
Mortgages(2)
+2.5
+1.4
+10.5
+4.7
+5.0 +27.8
14,051
6,255
2,097
- o/w Pekao LC +13.4 +80.6564
- o/w Pekao(3)
Mutual Funds(4)
-6.9 -8.0
+9.0 +35.6
Deposits -1.9 +3.522,974
10,667
4,835
- o/w Pekao(5) +13.9 +28.93,187
NET CUSTOMER LOANS 4Q04/3Q04: Bulbank +17.7%, KFS
+3.0%, Zaba +1.6% Dec04/Dec03: Bulbank +52.8%, KFS
+31.7%, Zaba +8.3%
(5) Pioneer Pekao Investment Management
At unchanged FX(1)
MUTUAL FUNDS in PEKAO: Market share(5): to 34.5 up 4.1 pp y/y
(2) Management accounts in LAS
(4) New Europe Business Area of Pioneer is included at current FX
(3) Deposits: -2.1% y/y, -3.0% q/q also considering the impact of Zloty appreciation vs. Dollar; Total customer savings: +4.6% y/y, +1.3% q/q
62
NEW EUROPE ASSET QUALITY
Net NPLs and Doubtful Loans as % of Total Net Loans 84.5
Sep04 Dec04
84.8
72.4 70.8
Coverage ratios
On Gross Doubtful Loans
On Gross NPLs
Net NPL/ Loans %
Dep04
Total NE +0.42.7
ch. on Sep04 (pp)
Net Doubtful/Loans %
Dec04
ch. on Sep04 (pp)
6.3-0.1
At unchanged
FX
Zaba +0.22.0 3.1+0.2
Unibanka 0.03.1 5.9+0.3
Pekao -0.83.7 7.9-0.4
Bulbank 0.1 +0.61.70.0
KFS +0.22.7 5.3+0.4
Cost of risk(1)
-33 bp
(bp, annualised)
122
89
20042003
(1) Calculated as Net Loan Loss Provisions on Net Customer Loans at period-end ITAS
63
Interest margin (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Net operating income
Net income
ROE
Cost/income
TOTAL(1)
1,154
681
1,835
-1,013
822
585
19.9%
55.2%
Net provisions -143
(1) Balance due to roundings and other small companies
(Euro mln)
(UCI stake)
Net income(3) (UCI’s portion) 398
- of which: Staff costs -492
- of which: Other costs -382
NEW EUROPE DIVISION: FY04 RESULTS BREAKDOWN BY BANK
- o/w: Net write-down of loans -125
UNI BANKA (77.2%)
25
19
44
-34
10
10
12.4%
78.3%
-6
8
-14
-15
-5
BULBANK (85.2%)
65
35
100
-43
57
18.0%
42.8%
-5
44
37
-15
-21
-4
Group PEKAO (53.0%)
566
450
1,016
-560
456
21.1%
55.1%
336
-84
167
-278
-204
-74
256
106
362
-200
162
126
22.3%
55.1%
-12
102
Group ZABA
(81.9%)
-104
-68
-14
14
13
27
-22
5
2
2.9%
80.3%
-10
-10
-4
1
-3
192
48
240
-107
134
73
25.9%
44.4%
-50
-45
-30
73
KFS(2) (50.0%)
-24
(2) Consolidated with proportional method (50%)
29
16
46
-40
5
6
6.6%
88.6%
-18
-15
-2
3
Zivno (96.6%)
-1
UniCredit Romania (99.9%)
ITAS
Banks’ data gross of consolidation adjustment
(3) Net of consolidation adjustment
64
CONSOLIDATED INCOME STATEMENT: PEKAO
(3) Including provisions to reserve for general banking risk
(1) Including dividends(2) Including depreciations
(4) At unchanged FX
(Euro mln)
Net interest income(1)
Net non interest income
Total revenues
Operating costs(2)
Operating income
Net write-down of loans
Net extraordinary income
Net income
Other net provisions(3)
Taxes
% ch.(4) on 4Q03
4Q04
149
119
267
-145
122
-20
+12
91
-2
-21
% ch. on 3Q04(4)
+7.0
+19.7
+12.3
+5.2
+22.0
+35.8
-7.8
+6.8
-38.0
+106.6
+3.3
+19.7
+10.0
-0.4
+25.5
-54.6
n.m.
+139.3
-20.4
+61.8
ITAS
Data gross of consolidation adjustment
FY04
566
450
1,016
-560
456
-74
+19
336
-10
-56
y/y % ch.(4)
-3.9
+13.8
+3.3
-0.9
+8.8
-37.4
+18.0
+48.8
n.m.
-35.7
Net income for the Group(5) 41 -12.6 +104.1 167 +39.6
(5) Net of consolidation adjustment
ROE 21.1% +6.1 pp
Cost of Risk 118 bp -80 bpCost/Income 54.2% -3.6 pp -5.7 pp 55.1% -2.3 pp
Tax Rate 19.0% +8.2 pp -6.8 pp 14.2% -13.5 pp
65
(3) Including provisions to reserve for general banking risk
(1) Including dividends(2) Including depreciations
(4) At unchanged FX
CONSOLIDATED INCOME STATEMENT: ZAGREBACKA
ITAS
(Euro mln)
Net interest income(1)
Net non interest income
Total revenues
Operating costs(2)
Operating income
Net write-down of loans
Net extraordinary income
Net income
Other net provisions(3)
Taxes
Net income for the Group
% ch.(4) on 4Q034Q04
62
21
98
-55
43
+5
+5
38
-5
-11
31
% ch. on 3Q04(4)
-10.7
+21.8
-1.1
+17.0
-17.4
n.m.
n.m.
-6.2
n.m.
+43.9
-6.6
-21.4
+7.5
-12.9
-8.4
-18.1
-47.5
n.m.
+12.3
-76.9
+75.0
+5.3
FY04
256
106
362
-200
162
-14
+5
126
+1
-30
102
y/y % ch.(4)
-0.6
-1.3
-0.8
-0.8
-0.8
n.m.
n.m.
+10.3
-106.2%
+25.9
+10.6
Data gross of consolidation adjustment (excluding Net Income for the Group that is net)