UBI Banca Group

An introduction
to the UBI Banca Group
July, 2014
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Page 1
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or
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or sell for any investment instruments, to
effect any transaction, or to conclude any
legal act of any kind whatsoever.
This document may contain statements
that are forward-looking: such statements
are based upon the current beliefs and
expectations of UBI and are subject to
significant risks and uncertainties. These
risks and uncertainties, many of which are
outside the control of UBI, could cause the
results of UBI to differ materially from
those set forth in such forward looking
statements.
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officers and employees have any liability
whatsoever (in negligence or otherwise)
for any loss or damage howsoever arising
from any use of this document or its
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above mentioned presentation.
For further information about the UBI
Group, please refer to publicly available
information, including Annual, Quarterly
and Interim Reports.
By receiving this document you agree to
be bound by the foregoing limitations.
Please be informed that some of the
managers of UBI involved in the drawing
up and in the presentation of data
contained in this document either
participated in a stock option plan and
were therefore assigned stock of the
company or possess stock of the bank
otherwise acquired. The disclosure
relating
to
shareholdings
of
top
management is available in the half year
and the annual reports.
Methodology
All data are as at 31st March 2014 unless
otherwise stated.
Agenda
The UBI Banca Group
Background
UBI Banca and its Peers
UBI Banca’s profile in a snapshot
The Group Structure
Presence in Italy
The UBI Banca International Network
Contacts
Annexes
Page 2
Background

Unione di Banche Italiane Scpa (“UBI Banca”) was formed following the merger of the BPU Banca and Banca
Lombarda e Piemontese Groups (1st April 2007)

The history of UBI Banca is marked by a succession of mergers which have led banks with strong roots in local
communities to become the significant reality that exists today and employs approximately 18,300 people.
Birth of the “Banca
Mutua Popolare
della Città e
Provincia di
Bergamo” ,
subsequently
renamed “Banca
Popolare di
Bergamo” (BPB)
1869
1883
Birth of the
“Credito Agrario
Bresciano” (CAB)
Page 3
Birth of the “Società
per la Stagionatura e
l’Assaggio delle Sete
ed Affini”
subsequently
renamed “Banca
Popolare
Commercio e
Industria” (BPCI)
1888
1888
Birth of the “Banca
San Paolo di
Brescia” (BSPB)
Merger of BPB and
“Credito Varesino”
(BPB-CV)
1992
1963
BSPB acquires
“Banca di Valle
Camonica” (BVC)
Acquisition of “Banca
Popolare di Ancona”
(BPA) by BPB-CV. Birth of
the BPB-CV Group
1996
1998
Merger of CAB and BSPB
with the creation of “Banca
Lombarda” as parent
company and contribution of
branch network of CAB and
BSPB to “Banco di Brescia”0
Acquisition of
“Banca
Carime” by
BPCI
2001
Birth of the “BPU
Banca Group” from
the integration of
BPB-CV and BPCI
2003
2000
Acquisition of “Banca Regionale
Europea”* by Banca Lombarda.
The Group takes the name of
“Banca Lombarda e Piemontese
Group”
* Banca Regionale Europea was created in 1994 following the merger between “Cassa di Risparmio di Cuneo” and “Banca del
Monte di Lombardia”
1st April 2007
Birth of
“UBI Banca”
following the
merger of the
BPU Banca
Group and the
Banca
Lombarda e
Piemontese
Group
Background
UBI Banca is a “popular” bank with the legal status of a joint stock co-operative company. According to its
by-laws, each registered shareholder has the right to cast one vote (to become a registered shareholder it
is necessary to possess and hold at least 250 shares). There is therefore no reference shareholder*. UBI
Banca is the only listed bank in the Group
No one may hold shares amounting to more than 1% of the share capital (with the exception of collective
investment companies)
The said principles
are equally applied
to listed and nonlisted popular banks
On the basis of the latest update of the shareholders’ register, registered shareholders number 77,500. If
non registered shareholders are also considered, total shareholders (registered and unregistered)
number above 151,000.
UBI Banca’s governance model is based on a “dualistic” system. Under this dualistic governance system a
shareholders’ meeting appoints a Supervisory Board (strategic policy-making and supervision), which
then appoints a Management Board (day by day management of the company)
37.4
Market Capitalisation as at 27th June 2014
(EUR bln)
Source: “Il Sole 24ore” – Italian Financial Newspaper –
dated 28th June 2014
36.2
~7.5**
5.9
4.6
3.0
** Market capitalization calculated on last price of rights on 20th June 2014 (capital increase for 5 bln€ to be completed)
Page
* A distinction is made between registered shareholders, a status acquired following acceptance decided by the Management Board and enrolment in the
shareholders’ register with the right to participate in shareholders’ meetings, and non registered shareholders whose rights are financial only. For the purposes
4 of acceptance as a registered shareholder, certificates testifying to the ownership of at least 250 shares must be presented, while should they no longer be held,
this shall result in the loss of registered shareholder status in accordance with the law
2.2
UBI Banca and its Peers
Customer Loans as at 31st March 2014 (EUR bln)
Total Assets as at 31st March 2014 (EUR bln)
842
485
625
339
4th
127
Unicredit
Group
Intesa
Monte
San Paolo dei Paschi
di Siena
131
5th
201
87
124
Banco
Popolare
46
61
49
Gruppo
BPER
UBI
Banca
Banca
Popolare
di Milano
Total Direct Funding as at 31st March 2014 (EUR bln)
Unicredit
Group
Intesa
Monte
San Paolo dei Paschi
di Siena
UBI
Banca
2,373
129
1,990
89
46
Page 5
UBI
Banca
Source: Press releases.
Banca
Popolare
di Milano
5th
4th
Intesa
Monte
San Paolo dei Paschi
di Siena
Gruppo
BPER
6,134
372
Unicredit
Group
Banco
Popolare
33
No. of Branches as at 31st March 2014
7,921
560
91
86
Banco
Popolare
Gruppo
BPER
1,730
1,302
36
Banca
Popolare
di Milano
Monte
Unicredit
Intesa
Group San Paolo dei Paschi
di Siena
Banco
Popolare
UBI
Banca
716
Gruppo
Banca
BPER Popolare
di Milano
UBI Banca’s profile in a snapshot: predominant retail business, solid capital
base and low risk profile
Strong
competitive
positioning
 1st Italian cooperative banking Group by market capitalization
 EUR 87.1 bn customer lending and EUR 90.8 bn direct funding (loan/deposit ratio: 95.9%)
 As at Dec 2013, 81.6% of loans to customers were granted in Northern Italy, 10.1% in Central Italy and
8.3% in Southern Italy, while 72.6% of customer deposits came from Northern Italy, 12.4% from Central
Italy and 15% from Southern Italy*
 Capital ratios as at 31 March 2014: CET 1 ratio (phased in):12.2%; CET 1 ratio (fully loaded) under
Basel 3 rules: 11.2%
Solid Capital
and Balance
Sheet Position
 Low Leverage ratio (tangible assets / (tangible equity+non-controlling interests+net result for the period)):
14.1X. Applying Basel 3 requirements, leverage ratio (tier one capital / (on- and off-balance-sheet assets))
stands at 5.16% as at 31 Dec 2013
 Sound Liquidity position: The Group already complies with the Net stable Funding Ratio and Liquidity
Coverage Ratio as per Basel 3 requirements (also net of LTRO)
Good Asset
Quality
 Good asset quality compared to the Italian banking system (Net NPLs (“sofferenze”) /Total Loans
4.07%; Italian Banking system 4.27%)
 Annualised cost of credit of 91 bps of total loans
 Focus on traditional banking activities: Customer loans/total assets at 70.2%
Low Risk Profile
 Funding mainly from own customer base (approx. 80%); limited recourse to institutional markets
(MTNs, CBs, CP, CD and Preference shares altogether represent approx. 16% of total funding)
 Financial assets/total assets: 18.7%. Italian Govies represent 17.0% of total assets
Page 6
Figures as at 31st March 2014 unless otherwise stated
* Data referred to banking perimeter only.
The Group Structure
UBI BANCA
provides management, co-ordination, control and supply of centralized services to the network banks (single IT System,
centralised risk management, centralised finance and treasury, commercial coordination, credit coordination, logistics,
purchasing, on line banking, etc...)
8 DOMESTIC NETWORK BANKS
353 branches
MAIN PRODUCT COMPANIES
100.00%
ASSET MANAGEMENT
316 branches
Northern
Italy
212 branches
244+3* branches
66 branches
Central
Italy
213 branches
Southern
Italy
242 branches
21 branches
677 fin. advisors
100.00%
UBI Pramerica
(partnership with Prudential US)
FACTORING
UBI Factor
LEASING
UBI Leasing
75.08% (1)
74.75% (2)
82.96% (3)
93.01% (4)
NON-LIFE BANCASSURANCE UBI Assicurazioni
(partnership with BNP Paribas/Ageas)
LIFE BANCASSURANCE * Aviva Vita (partnership with Aviva)
Aviva Assic. Vita (partnership with Aviva)
Lombarda Vita (partnership with Cattolica)
ON LINE TRADING
IW Bank
92.84% (5)
100.00%
*Redefinition of Aviva partnership and minorities structure
announced on 16 April 2014, expected to be completed
within end 2014 (see related press release)
Ownership Information updated as at 31 March 2014
N. of branches updated as at May 2014; * indicates branches outside Italy
Page 7
1) moreover, 8.69% of capital held by Aviva, 16.23% of capital held by Fondazione Banca del Monte di Lombardia 2) further 24.90% of Banca
Regionale Europea capital held by Fondazione Cassa di Risparmio di Cuneo and the rest by minority shareholders 3) moreover, 6.38% of
capital held by Cattolica Assicurazioni and the rest by minority shareholders 4) moreover, 6.49% of capital held by Aviva and the rest by
minority shareholders 5) moreover, 7.15% of capital held by Aviva and the rest by minority shareholders
Presence in Italy
Introduction to the UBI Banca Group:
Predominant Retail Business and Strong Northern Italian Franchise
1
795
196
47
Approx. 3.7 million clients, mainly retail
10
1
35
1,673 branches, of which 795 in Lombardy (which
generates over 20% of Italian GDP)
44
7
Market share in terms of branches above 20% in
some of the richest Provinces such as Bergamo,
Brescia and Varese
81
18
110
17
6
84
101
27
1
92
Current
Market Shares*
Branches accounts
& deposits
%
Loans
Bergamo
Brescia
Varese
Cuneo
40.4
35.0
20.9
15.6
22.1
22.5
23.4
24.0
29.4
27.5
27.4
19.3
National market share of 5.4% in terms of branches
1,673 branches in Italy + 6 branches abroad
(as at May 2014)
Page 8
*
Market shares calculated as at 31st Dec 2013 .
Agenda
UBI Banca International Network
International Network
Presence in the world
Page 9
International Network
COMMERCIAL BANKS
FOREIGN BRANCHES
MENTON, NICE AND ANTIBES
(Banca Regionale Europea)
REPRESENTATIVE
OFFICES
SUBSIDIARIES
FOREIGN BRANCHES
KRAKOW
(UBI Factor)
SHANGHAI
(Zhong Ou Asset
Management Company)
FOREIGN BANKS
Head office in Luxembourg
SUBSIDIARIES
UBI TRUSTEE SA
(Luxembourg)
Page 10
BRANCHES
LUXEMBOURG
MADRID
MUNICH
MOSCOW
SAO PAULO
MUMBAI
SHANGHAI
HONG KONG
VIENNA
(Business Consultant)
Presence in the world
Munich
UBI Banca International
Branch
Krakow
UBI Factor Branch
Vienna
Business Consultant
Moscow
Representative Office
Luxembourg
• UBI Banca International
• UBI Trustee SA

 
Antibes, Menton, Nice
Banca Regionale Europea
Branches

Shanghai
Representative Office



Madrid
UBI Banca International
Branch
Shanghai
Zhong Ou Asset Management
Company Co. Ltd*
Hong Kong
Representative Office

São Paulo
Representative Office
Page 11
Mumbai
Representative Office
* Joint-venture in which UBI Banca holds 35% of the total share. (Other partners: Guodu Securities Co. Ltd. holds 30% of the
total share, Beijing Baijun Investment Co., Ltd holds 30% of the total share and WinnerKey Investment Co. Ltd holds 5% of
the total share). At 31st December 2013, the ex Lombarda China Fund Management Co., actives in the management of retail
funds and of IPO, handled an AUM of 14.5 billions of Rmb (about 1.7 billions of euro).
Agenda
Contacts
UBI Banca Correspondent Banking
Representative Offices Contacts
Page 12
UBI Banca
Sergio Passoni
Head of Global Transaction and Operations
Isabella Moavero - Head of Correspondent Banking and Representative Offices
Correspondent Banking - [email protected]
Alistair Newell
Area Manager
[email protected]
BANGLADESH
INDIA
MALDIVES
PAKISTAN
SOUTH EAST EUROPE
SRI LANKA
Western
Europe:
UKBALTIC COUNTRIES
SCANDINAVIA
IRELAND
ICELAND
CYPRUS
GREECE
Western Europe:
MALTA
CYPRUS
GREECE
IRELAND
MALTA
UK
Page 13
Marco Camozzi
Lorenzo Tassini
Area Manager
Area Manager
Area Manager
[email protected]
[email protected]
[email protected]
AUSTRALASIA
ASIA
NORTH AMERICA
RUSSIA AND CIS COUNTRIES
AFRICA
MIDDLE EAST
TURKEY
Ernst Rolf Hartmann
LATIN AMERICA
CARIBBEAN
EASTERN EUROPE
ISRAEL
Western Europe:
Western Europe:
AUSTRIA
GERMANY
SWITZERLAND
PORTUGAL
SPAIN
BELGIUM
FRANCE
LUXEMBOURG
NETHERLANDS
VATICAN CITY
MONTE-CARLO
Representative Offices Contacts
HONG KONG
MUMBAI
SHANGHAI
Mr Andrea Croci
Ms Rajeshree Balsari
Ms Lu Bo
[email protected]
[email protected]
[email protected]
Suite 2911, Tower Two,
Times Square 1, Matheson St. Causeway Bay Hong Kong - S.A.R.
92 Mittal Chambers, 9th Floor,
Nariman Point,
400 021 Mumbai - India
The Center
Suite 3304
989, Changle Road
200031 Shanghai – China
Tel. +852 2878 7393
Fax +852 2878 7932
Tel. +91 22 22023601
Fax +91 22 22023603
MOSCOW
SAO PAULO
Tel +86 21 61675333
Fax +86 21 61675582
VIENNA (Business Consultant)
Mr Ferdinando Pelazzo
Mr Isidoro Guerrerio
Ms Annick Stockert
[email protected]
[email protected]
[email protected]
10, Nikolskaya str., 4th floor,
Business Centre “Nikolskaya Plaza”
109012 Moscow - Russia
Al. Ministro Rocha Azevedo,
456 Ed. Jaù - 4° And.Cj.402
CEP 01410-000 São Paulo Brazil
Seilerstätte 16/11
1010 Vienna
Austria
Tel. +55 11 3063 0454
Fax +55 11 3063 3785
Tel. +43 1 514 37 26
Fax +43 1 514 37 60
Tel. +7 495 725 4466
Fax +7 495 725 4465
Page 14
Agenda
Annex
Foreign Banks
Product Companies
Group Results
Group BIC codes
Page 15
Foreign Banks
Qualified and specific services offered to Corporate customers:
 establishment of international companies
 trustee operations and corporate financing
 payment services
 corporate and syndicated loans
 issuance of bonds and international guarantees
 cash pooling
 factoring
Services offered to Private customers:
 wealth management and investment advisory;
 heritage and personal wealth planning with tailor made financial engineering solutions;
 investment Funds and Sicav;
 financial and asset planning with tailored engineering solutions;
 term deposits in all major currencies,;
 trading and safekeeping of securities on all the major stock and bond markets;
 spot and forward foreign exchange transactions;
 services for the establishment of Trust Companies through UBI Trustee SA based in Luxembourg.
Leasing
UBI Leasing offers its clients financing for asset acquisition such as: instrumental
leasing, real estate leasing, car leasing, aero naval leasing as well as specific
insurance and accessory services.
7.4 bln EUR in net Loans to Customers
Page 16
Data as at 31.12.2013
Product Companies
Factoring
UBI Factor offers highly specialized factoring services to companies and public
administrations. The company is based in Milan with a capillary structure across the
national territory and is present also in Poland with its Krakow subsidiary. Since 1984
UBI Factor is part of the Factors Chain International network which allows it to retain a
presence in more than 75 countries and with more than 270 foreign partners.
7.6 bln EUR Turnover; 2.3 bln EUR net Loans to Customers
Asset Management – Joint Venture with Prudential US
UBI Pramerica develops, manages, markets and distributes a wide range
of financial products and services dedicated to private customers and institutions. It
has been awarded various international prizes.
27.8 bln EUR in Assets Under Management
Online Trading
IW Bank is a market leader in online trading in Italy with a strategy based on
three fundamental objectives: continuous product/service innovation, constant
development of technological platforms, professional support for the customer.
6.8 mln of transactions executed over the period (FY13)
Page 17
Data as at 31.12.2013
UBI Banca Main Consolidated figures
Main balance sheet
figures
Dec 2013
Mar 14
Figures in millions of euro
Loans to customers
88,421
87,095
Direct funding
92,604
90,844
of which: Direct Funding from Ordinary
Customers (current accounts + retail
bonds)
74,660
74,920
of which: Direct Funding from
Institutional Customers
17,944
15,924
10,888
11,389
124,241
123,983
Loans to customers / total assets
71.2%
70.2%
Indirect funding (AuM + AuC)
71,652
73,392
of which: AUM
39,554
39,796
of which: AUC
32,098
33,596
Net Interbank exposure
(not included in Direct Funding – mainly
LTRO)
Total assets
Page 19
Page 20
 Lending volumes trends vs. Dec 2013 show a
decrease of 1.5% reflecting weakness in GDP and
low demand
 Net of volatile CCG (Cassa di Compensazione e
Garanzia, Italian Clearing House) repos, Direct
Funding grows by 2.7% vs Dec. ‘13, driven by bond
issuances both to ordinary customers of the
Network Banks and to institutional investors
 As at 31 March 2014, Loan to Deposit Ratio:
95.9%
 Liquidity buffer:
Eligible Assets as at 5th May 2014: € 33.2 bln (of
which € 19.6 unencumbered representing approx.
46% of Short Term Deposits
1Q14: improving profitability and cost control confirmed
*
€ mln
Page 20
* Loan loss provisions at 198.6 mln euro in 1Q14.
In terms of cost of credit, they correspond to 91 bps for the UBI Banca Group vs. an average 108 bps for the other 6 major
Italian banking Groups reported in slide n° 5
Group BIC codes
BEPOIT21
BCABIT21
BREUITM1
POCIITM1
BLOPIT22
BPAMIT31
CARMIT31
BVCAIT21
BLPIIT21
CABILULL


Page 21
BIC ACTIVE
BIC NON ACTIVE
UBIBESMM
Madrid Branch
BEPODEMM
Munich Branch