The UBI Banca Group
Consolidated Results as at 30th June 2015
7th August 2015
Disclaimer
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The disclosure relating to shareholdings of top management is available in the annual reports.
Methodology
The “notes on the reclassified financial statements” contained in the periodic financial reports of the Group may be consulted for a fuller
comprehension of the rules followed in preparing the reclassified financial statements.
2
Executive Summary
Balance sheet indicators show top quality in terms of capital, liquidity and leverage
Profit net of non recurring items to 136 million, the highest half year results since 2H2008
notwithstanding the inclusion of the estimated annual contribution to the Resolution Fund
Stated Profit for the period to 124.4 million (+17.2% vs 106.2 in 1H2014)
First positive results of the commercial effort, to be intensified in 2H2015:
Lending +0.8% vs March 2015 and -0.4% vs Dec 2014
Strength of new origination in medium term loans in Network Banks: +49.22% y/y, with positive
growth indicators in all segments. Replacement rate in 1H2015 119%.
AUM and Insurance products growing respectively 18.7% and 13.7% vs 1H2014 reflected in
15.5% growth in securities related commissions
Asset quality confirmed with progressively growing coverage
3
Strength of Capital ratios confirmed, CET1 phased in at 12.94%, further derisking of the lending portfolio
9.5% LOADED
CET 1 FULLY
9.5%
CET 1 PHASED
IN
+49 bps
12.94%
12.45%
March '15
June '15
and +344 bps vs 9.5%
(SREP CET1 requirement)
• Lower minority interests included (-)
• Partial inclusion of non govies AFS
reserve (+)
• Decrease in RWA (+)
• Profit for the period included
12.62%
12.33%
12.20%
Including Govies AFS
reserve as at 3 August 2015
+13 bps
• Inclusion of AFS reserve (+)*
• Decrease in RWA (+)
• No self financing included for
future years (-)
March '15
June '15
* The Greek crisis impacted negatively for over 30 bps in June 2015 vs March 2015,
fully recovered at the date of this presentation
See annex 2
9.5%OF RWA
EVOLUTION
9.5%
PERFORMING LOAN PORTFOLIO
RISK PROFILE
(bln/€)
60.7
High risk 5%
59.5
50.6%
49.8%
RWA / TOTAL
ASSETS
RWA / TOTAL
ASSETS
March '15
June '15
Unrated 6.7%
vs 5.8% in Dec ’14
vs 5.5% in Dec ’14
• Decrease in RWA due to volumes
but also due to evidences of
improvement in levels of risk
Medium Risk
15.7%
MARCH
vs 17.7% in‘15
Dec ’14
MARCH
‘15
Low Risk 72.6%
vs 71% in Dec ’14
June 2015 vs December 2014
Perimeter: Network Banks + UBI Banca (IRB perimeter)
On the basis of supervisory regulations, the calculation of capital ratios as at 31st March 2015 does not include profit for the period
and the consequent changes in filters and deductions
4
Strength of Balance Sheet ratios confirmed
9.5% PHASED IN
TOTAL CAPITAL
15.62%
15.34%
+28 bps
and +462 bps vs 11%
(SREP TC requirement)
March '15
June '15
9.5%
Basel 3 LEVERAGE
RATIO
5.82%
MARCH
‘15
6.14%
5.73%
JUNE
‘15
Phased in
MARCH
‘15
5.88%
JUNE
‘15
Fully loaded
On the basis of supervisory regulations, the calculation of capital ratios as at 31st March 2015 does not include profit for the period
and the consequent changes in filters and deductions
5
Net of portfolio in run off, lending grows both compared to Dec 2014 and to
March 2015
GROWTH IN LENDING NET OF RUN-OFF (bln/€)
Total Lending
85.6
84.6
85.3
7.0
6.7
6.6
of which
Run-off
Active
78.6
Dec '14
77.9
Mar '15
78.7
June '15
Note: portfolio in run-off includes medium/long term and short term lending
6
Core lending in Network Banks (Retail, Corporate and Private) grows by 0.8
billion since Dec 2014, sustained by strong new origination
€ b ln, end date
Dec '14
Mar '15
June '15
TLTRO positive effect
% change vs
Dec '14
Mar '15
Approx. 6.1 bln/€ TLTRO taken in Dec ’14/Mar ’15
Private Customers
21.0
21.0
21.1
0.8%
0.7%
Small business
13.4
13.5
13.4
-0.5%
-0.8%
UBI Banca (former Banca 24/7)*
5.4
5.2
5.0
-5.8%
-2.5%
Prestitalia
1.9
1.8
1.7
-13.5%
-7.1%
Total Retail
41.6
41.4
41.2
-1.1%
-0.6%
Core corporate
14.2
14.3
14.5
2.0%
1.2%
Large corporate
8.1
8.0
8.5
5.2%
6.2%
UBI Banca (former Centrobanca)
4.9
4.8
4.7
-4.3%
-2.7%
Total Corporate
27.2
27.1
27.6
1.8%
2.0%
PRIVATE
0.8
0.8
0.8
2.6%
0.7%
OTHER**
16.1
15.3
15.7
-2.2%
2.5%
UBI Leasing
6.9
6.8
6.8
-2.4%
-0.7%
UBI Factor
2.0
2.0
2.1
2.3%
2.9%
UBI Banca***
1.6
1.3
1.7
5.8%
26.7%
85.6
84.6
85.3
-0.4%
0.8%
RETAIL
CORPORATE
of which:
TOTAL NET LENDING BOOK
Small business: turnover up to €15 mln
Core Corporate: turnover from €15 to €250 mln
Large Corporate: turnover > €250 mln
Loans disbursed:
 3 bln/€ as at end June
 4 bln/€ as at end July
New originations in Medium-Long Term lending
in Network Banks: +49.22% (1H15 vs 1H14)
of which:
Corporate
+95.5%
Retail-Private
+29.0%
Retail-Small Business +30.8%
-0.4 bln/€ run off stocks
*
Following the merger of Banca 24/7 in UBI Banca, effective July 2012, UBI Banca is managing the remaining stock of non captive mortgages and personal
and special purpose loans. Prestitalia is managing all “salary backed loan” operations, both stocks and new lending
** Minor companies, UBI Banca financial transactions, IAS adjustments, loans not segmented to commercial portfolios and intercompany eliminations
*** Repos with CCG for the investment of liquidity made by UBI Banca and higher margins on liability repos
7
Significant improvement in new Medium to Long Term lending inflows in
1H15, replacement rate 119% in Network Banks, 65% in Product Companies
FOCUS ON MEDIUM / LONG TERM LENDING* (73% of total lending)
NETWORK BANKS**
40.7 bln/€
(39.9 bln/€ in Dec’ 14)
TOTAL MLT STOCK**
New origination
in 1H15
=
Reimbursement
PRODUCT COMPANIES
10.4 bln/€
(57.5 bln/€ in Dec’ 14)
(10.9 bln/€ in Dec’ 14)
vs. 100% in 1H14
101% in FY14
in 1H15
New origination
57.3 bln/€
119%
Reimbursement
=
65%
vs. 49% in 1H14
54% in FY14
RUN-OFF PORTFOLIO
6.2 bln/€
(6.6 bln/€ in Dec’ 14)
NOTE: Numerator includes new disbursements, denominator includes reimbursements and exits to non performing.
* Management accounts, excluding Bad Loans and IAS effect
** Excludes UBI Banca Private Investment (merged with IW Bank in May 2015)
The portfolio in run off accounts for a decrease in lending of
0.4 bln/€ in 1H15
8
Solid liquidity position allows optimal management and flexibility of funding
mix
IAS amounts in b ln€
DIRECT FUNDING FROM ORDINARY
CUSTOMERS
Dec '14 March '15 June '15
% change vs.
Dec '14
74.0
72.7
71.7
-3.0%
44.3
1.8
44.1
1.7
44.7
1.6
0.8%
-12.3%
23.6
3.3
1.0
22.9
3.2
0.7
21.7
3.2
0.5
-8.0%
-1.9%
-43.8%
DIRECT FUNDING FROM INSTITUTIONAL
CUSTOMERS
19.3
18.4
22.6
17.4%
Covered Bonds
EMTN
CD and ECP
Repos with CCG
9.8
3.1
0.8
5.5
9.8
3.1
0.5
5.0
9.7
3.1
0.7
9.1
-1.2%
-0.6%
-10.9%
64.4%
TOTAL DIRECT FUNDING
93.2
91.1
94.3
1.2%
Current accounts and deposits
Term deposits, other payables and repos
Securities in issue:
Network banks + UBI
Extra-captive customers*
Other (mainly customer CDs)
• Careful management of cost of funding
allowed by strong group liquidity:
1. increase in lower cost current
accounts and deposits, also due to
the presence of excess liquidity to
be invested
2. customer move from low yield retail
bonds to higher return products
(AUM)
saving over 49 mln/€ in 1H15 vs 1H14
and over 6 mln/€ 2Q15 vs 1Q15
• Higher recourse to CCG at negative
rates
See annex 6
* Bonds placed on third party banks networks
9
Less than 5.2 bln/€ maturities of Retail and Institutional bonds in 2H15
RETAIL BONDS: NEW ISSUANCES
(Nominal amounts in € bln, net of bond repurchases)
RETAIL BONDS: Maturity Profile
Decreasing spreads vs. 6M Euribor
(bps)
150
126
110
9.54
102
84
58
45
3.67
FY12 FY13 1Q14 2Q14 3Q14 4Q14 1H15
Retail
Bonds
1Q
2Q
3Q
4Q
1.62
2.00
1.07
2.60
3.59
2H15
INSTITUTIONAL BONDS: Maturity Profile
• 2015 maturities concentrated in 4Q
7.95
2015 Maturities
2016
2017
2018 and
following
(Nominal amounts in € bln)
COVERED BONDS*
EMTN
• Bond maturities well planned and
distributed over time
2015 Maturities
0.53
Covered Bond
EMTN
2Q
4Q
0.03
0.53
-
0.97
4.61
1.80
0.97
0.80
0.05
0.15
1.00
2017
2018
2019
0.10
2H15
1.05
1.05
2016
0.03
2020 and
following
* Inclusive of original 0.5 bln/€ of private placement with BEI expiring within 2022. Further 1.4 bln/€ retained issue not included
10
AuM +18.7% and Bancassurance products +13.1% vs June ’14, drive +15.5%
increase in securities related commissions
June '14
Dec '14
Mar '15
June '15
AuM
Bancassurance
AuC
28.7
12.1
32.9
30.7
12.6
32.5
34.2
13.3
33.9
34.0
13.8
31.3
18.7%
13.7%
-4.9%
10.7%
9.1%
-3.8%
Total Indirect Funding
73.7
75.9
81.4
79.1
7.3%
4.2%
bln/€
Indirect Funding
Evolution
% change % change
vs June '14 vs Dec '14
• Even though volumes are
impacted by market valuations
in June ‘15 (Greek crisis),
relevant increase is confirmed
both compared to June 14 and
to Dec 14
• Positive impact on commission
income
from securities,
moving to 372 mln/€ in 1H15
from 323 in 1H14
Market effect June’15 vs Mar’ 15:
AuM: -1.0 bln/€
AuC: -1.7 bln/€
Total indirect funding: -2.7 bln/€
Dec ‘14
5%
UBI Pramerica SGR
AUM
Composition
June ‘15
6%
7%
13%
12%
51%
25%
Bond
5%
50%
26%
Balanced
Equity
Flexible
Cash
11
The Italian Govies portfolio: after 4Q14 significant maturities, replaced with
lower yield bonds, no relevant maturities in 2015.
Progressive downsizing of the Italian Govies Portfolio
(IAS value, € bln)
BALANCE
SHEET VALUE:
~ 94%
OF FINANCIAL
ASSETS
TOTAL
HTM
HFT
AFS
~ 17%
OF TOTAL
ASSETS
21.9
21.6
20.4
3.6
0.8
3.5
0.8
3.5
0.8
17.5
17.2
16.1
Dec '14
Mar '15
June '15
In nominal terms:
• 19.2 bln/€ as at 31 Dec ‘14
• 18.4 bln/€ as at 31 March ‘15
• 18.1 bln/€ as at 30 June ‘15
AFS reserve on IT Govies as
at 30 June ‘15: +37.5 mln/€
at 3 August ’15 > +200 mln/€
ITALIAN
GOVIES
(market values, € bln)
Modified rate duration of
Italian Govies portfolio: 1.3*
MATURITY
PROFILE
0.5
HTM
HFT
AFS
3.5
8.6
0.1
5.3
0.1
0.1
0.2
1.9
2015
2016
2017
2018-2019
Over
* 76.6% of the AFS portfolio is covered through asset swaps
12
Confirmed sound liquidity position framework
 NSFR and LCR > 1
 Loan to Deposit ratio = 90.5%
...Total eligible assets at 26.8 bln/€, 58% of current accounts and deposits
Eligible Assets
26.8 bln/€
(net of haircut,
as at 30 June 2015)
Composition (%)
Usage (bln/€)
8%
10%
9%
Pledged to ECB*
CCG Repos
73%
Unencumbered
Italian Govies
Retained securitisations
Retained covered bonds
Other (ABACO)
6.1
8.7
12.0
* TLTRO for 6.1 bln/€ expiring Sept 2018
13
In normalised terms, 1H15 net profit is the best half year result since 2008
MAIN INCOME STATEMENT ITEMS
1H14
Figures in € mln
% change
1H15 vs 1H14
1H15
2Q14
1Q15
% change
% change
2Q15 vs 2Q14 2Q15 vs 1Q15
2Q15
Net interest income
909
847
(6.8%)
454
431
417
(8.3%)
(3.3%)
Net commission income
610
669
9.7%
310
341
328
5.9%
(3.9%)
Net result from finance
137
111
A
(18.7%)
74
58
53
(28.3%)
(8.5%)
Profits of equity-accounted investees
21
20
B
(5.3%)
10
6
13
37.3%
117.3%
Other income items
60
62
2.7%
35
30
32
(8.7%)
6.5%
Operating income
1,736
1,709
(1.6%)
882
866
843
(4.5%)
(2.7%)
Staff costs
(648)
(655)
1.1%
(322)
(335)
(320)
(0.6%)
(4.5%)
Other administrative expenses
(311)
(313)
0.6%
(159)
(148)
(165)
4.0%
11.6%
(85)
(78)
(8.7%)
(43)
(38)
(39)
(7.9%)
2.0%
(1,044)
(1,046)
0.1%
(523)
(521)
(524)
0.2%
0.5%
692
663
(4.1%)
359
345
319
(11.3%)
(7.5%)
Net impairment losses on property, equipment and investment
property and intangible assets
Operating expenses
Net operating income
(429)
(389)
(9.3%)
(230)
(190)
(199)
(13.7%)
4.6%
Net impairment losses on other financial assets and liabilities
Net impairment losses on loans
(2)
(3)
67.3%
(4)
(1)
(2)
(35.2%)
n.s.
Net provisions for risks and charges
(3)
(29)
n.s.
7
(4)
(25)
n.s.
n.s.
Profits (losses) from disposal of equity investments
(0)
0
n.s.
0
(0)
0
70.4%
n.s.
257
242
(6.0%)
133
149
93
(30.0%)
(37.5%)
Pre-tax profit from continuing operations
C
C
Taxes on income for the period from continuing operations
(135)
(99)
(26.8%)
(77)
(62)
(37)
(51.5%)
(40.1%)
Profits for the period attributable to non-controlling interests
(16)
(17)
8.7%
(8)
(10)
(7)
(8.8%)
(24.5%)
(1)
n.s.
n.s.
n.s.
Charges for exit incentives
(net of tax and non-controlling interests)
(1)
Profit for the period
106
124
17.2%
48
76
49
1.0%
(36.1%)
Profit for the period NET OF NON-RECURRING ITEMS
131
136
3.9%
72
82
54
(24.4%)
(33.5%)
Notes:
A
Net result from finance includes ~66 mln/€ from AFS disposals - Govies and other - in 1H15 (vs. ~98 mln/€ in 1H14)
B
Profits from equity-accounted investees, include:
• 8.5 mln/€ from Zhong Ou in 1H15 (vs. 0.7 mln/€ in 1H14) thanks to strong growth in AuM reaching close to €18 billion at end June15
• 9.2 mln/€ from Lombarda Vita in 1H15 (vs. 4.2 mln/€ in 1H14)
C
Net provisions for risk and charges include the estimated annual contribution to the Single Resolution Fund for 22.8 mln/€
PPA allocated line by line
14
NII mainly impacted by reduction in financial component following sale of
high yield securities in 4Q15.
Customer margin under pressure as volumes and prices reflect strong
competition and run off
See annex 6
Half year evolution
Net Interest Income
(€ mln)
NII from Financial Assets &
Interbank Exposure
NII from Business with
Customers
Quarterly evolution
909
847
454
431
190
151
96
79
417
73
719
696
358
352
344
1H14
1H15
2Q14
1Q15
2Q15
-8.0% QoQ
-24.6% YoY
-2.3% QoQ
-3.9% YoY
15
Net Commission Income at 669 mln/€: +9.7% YoY
See annex 7
Half year evolution
(€ mln)
Quarterly evolution
(€ mln)
+9.7%
Net commission income
from:
Securities
Management, Trading
& Advisory Services*
669
610
323
+15.5%
372
Volumes YoY:
+18.7% AuM
+ 13.7% Bancassurance
- 4.9% AuC
162
-16
Banking Services
Commissions
287
341
310
328
193
179
-6
+3.3%
297
147
148
149
1H15
2Q14
1Q15
2Q15
of which
… Negative commissions
on State guaranteed
bonds**
€ mln
Upfront fees***
% on total commissions
1H14
1H14
1H15
2Q14
1Q15
2Q15
82
92
40
52
40
13.4%
13.8%
13.1%
15.3%
12.3%
* Includes FX negotiations.
** State Guaranty Bonds: first reimbursement 3 bln/€ value 7th March ’14 and remaining 3 bln/€ value 7th August ’14
*** Includes all kinds of up front fees, i.e. on funds&sicav, on insurance products, on other third party products
16
Net of non-recurring items, total costs down 0.6% 1H15 vs 1H14
mln/€
% change
1H15 vs 1H14
% change
2Q15 vs 2Q14
% change
2Q15 vs 1Q15
320
-0.6%
-4.5%
147
159
0.3%
8.5%
-
1
6
n.s.
n.s.
-8.7%
43
38
39
-7.9%
2.0%
1,046
0.1%
523
521
524
0.2%
0.5%
1,038
-0.6%
523
520
518
-0.9%
-0.4%
1H14
1H15
2Q14
1Q15
2Q15
Staff costs
648
655
1.1%
322
335
Other Adm. Expenses exclunding
IW Bank-UBI PI integration costs
311
306
-1.8%
159
IW Bank-UBI PI integration costs*
-
7
n.s.
D&A (including PPA**)
85
78
Total operating costs
1,044
Total operating costs excl. IW
Bank-UBI PI integration costs
1,044
1
1
2Q15 Staff Costs benefited from release of higher
provision to staff severance fund (booked in 1Q15 in
relation to previous National Labour Contract) after recent
approval of New Contract
The best half year result in terms of normalised Total Operating Costs since 1H 2007
* Costs related to the integration between IW Bank and UBI Banca Private Investment effective 25 May 2015
** PPA effect amounted to 9.8 mln/€ in 1H14 and to 6.6 mln/€ in 1H15
17
An impressive track record: total Group costs down by 20% since inception
(Amounts net of non-recurring items)
TOTAL OPERATING COSTS
1H 2015 vs. 1H 2007...
-19.8%
1,294 1,305 1,316 1,287
(€ mln, net of PPA)
1,244 1,228
1,222 1,209 1,216
1,198
1,137 1,128
1,072 1,070
1H
2H
1H
2007
STAFF COSTS
2H
1H
2008
2H
1H
2009
2H
1H
2010
1H 2015 vs. 1H 2007
(€ mln)
2H
1H
2011
1H
785
2H
396
811
774
1H
2007
2H
369
745
1H
2008
720 714 704 738 713
689 685
2H
2009
1H
2H
2010
1H
2H
2011
1H
2H
2012
2H
1H
2013
2H
2014
1H
2015
1H 2015 vs. 1H 2007
(€ mln, net of PPA)
-17.2%
383 387 385 385
372 376
356 362 352 350
335
325
646 655 648 654 655
1H
2H
2013
1H
2H
2014
1H
2015
June 2015 vs. April 2007
STAFF HEADCOUNTS
1H
OTHER ADM. EXPENSE
-18.7%
805
2H
2012
1,044 1,060 1,038
June Dec June Dec June Dec June Dec June Dec June Dec June Dec June
2008
2009
2010
2011
2012
2013
2014
306
2007
2008
2009
2010
2011
2012
NUMBER OF DOMESTIC BRANCHES
2013
2014
2015
June 2015 vs. April 2007
-21.0%
21,700 21,550 20,680 20,926 20,285 20,260 19,699
19,546 19,407 19,306 19,090 18,485 18,337 18,438 18,132 17,789
2007
322
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H
-18.0%
Apr
311
2015
1,970 1,929 1,944 1,939 1,955 1,884 1,892 1,877 1,875 1,801 1,727 1,726 1,725
1,673 1,668 1,557
Apr June Dec June Dec June Dec June Dec June Dec June Dec June Dec June
2007
2008
2009
2010
2011
2012
2013
2014
2015
Note: staff headcounts at the end of the period
18
Increased coverage compared to March 2015 and Dec 2014.
Flattening of net deteriorated loan stocks
COVERAGE
GROSS DETERIORATED LOAN STOCKS
(€ mln)
+2.4%
12,674 13,049 13,227 13,368
Dec '14
Mar '15
June '15
Performing loans
0.63%
0.60%
0.58%
Total deteriorated loans
27.1%
27.7%
27.8%
including write-offs
of which
Bad Loans (Sofferenze)
37.1%
37.4%
37.6%
38.6%
38.8%
38.7%
including write-offs
53.4%
53.2%
53.0%
Unlikely to pay
16.7%
17.0%
17.1%
Past due loans
4.4%
4.7%
5.4%
See annex 3
Disposal of highly
provisioned positions (Bad
Loans) in 1H15: 100.5
mln/€ (of which 94 in
2Q15)
10,958
8,589
+3.0%
+15.7%
NET DETERIORATED LOAN STOCKS
+27.6%
(€ mln)
+1.5%
Dec '11 Dec '12 Dec '13 Dec '14 Mar '15 June '15
9,312
9,508
9,565
9,651
8,105
+2.1%
6,280
+14.9%
+29.1%
Dec '11 Dec '12 Dec '13 Dec '14 Mar '15 June '15
Note: the increase in 2012 vs 2011 deteriorated loans also reflects change in posting criteria for past due (from 180 to 90 days)
19
New inflows from performing to deteriorated loans flat in June15 vs June14
INFLOWS FROM PERFORMING TO DETERIORATED LOANS (NPE)
TOTAL DETERIORATED LOANS (NPE)
TOT. DET. LOANS (NPE)
BAD LOANS
(“Sofferenze”)
(€/mln)
UNLIKELY TO PAY
810.1
-4.2%
4,307
4,124
PAST DUE
-36.2%
1,260.2
1,275.0
677.1
534.1
2,632
1,077
384.9
1,031
65.3
63.8
658
FY12
FY13
FY14
June '14 June '15
June '14 June '15
June '14 June '15
June '14 June '15
Quarterly Average
• Decrease of inflows to Bad Loans (“Sofferenze”) and Past Due Loans
• Increase of inflows to Unlikely to Pay Loans also following application of rules
on forborne positions which involved reclassification of past due loans (highly
guaranteed) to Unlikely to pay
LLPs (€/mln)
LLPs are significantly lower than in 1H14
-9.3%
429
1H14
389
1H15
LLPs (€/mln) - quarterly
-4.2%
230
-13.7%
199 190
199
1Q141Q
1Q15
2Q142Q
2Q15
20
Outlook

The actions undertaken in the first half and the expected progressive improvement in the
macroeconomic environment should allow a further increase in new grants of loans in the
second half of the year in order to counter the strong competitive pressure on pricing.

Net fee and commission income should benefit year-on-year from positive trends expected for
assets under management and insurance and from possible growth in fees and commissions
associated with the trend for lending.

The continuation of the favourable evolution of the general macroeconomic environment and,
hopefully, the absence of further tensions in the more critical countries of the euro area could
allow a result to be achieved for trading and hedging activity in line with that of the first half.

Actions planned for 2015 allow to confirm our objective of containing operating expenses in line
with those for 2014, notwithstanding the additional costs in relation to the contribution to the
European Resolution Fund and the Deposit Guarantee Scheme, estimated at over €30 million
for the entire year and which will be recognised in the item “other administrative expenses”
once final quantification, expected before year-end, is received.

The improvements in the macroeconomic environment and the exit from recession, recently
confirmed by the principal economic research institutes, should allow loan losses to be
contained at a level lower than in 2014.
21
Annexes
22
Annex 1
Main Reclassified Balance Sheet Items
MAIN ASSETS ITEMS
Figures in millions of euro
30.06.2014
31.12.2014
31.03.2015
30.06.2015
% annual
change
% quarterly
change
Financial assets (AFS, HFT, FV, HTM)
22,153
23,746
23,158
21,870
-1.3%
-5.6%
Loans to customers
87,119
85,644
84,634
85,340
-2.0%
0.8%
Property, equipment and investment property
1,765
1,729
1,711
1,756
-0.5%
2.6%
Intangible assets
2,896
1,777
1,768
1,760
-39.2%
-0.4%
2,512
1,465
1,465
1,465
-41.7%
0.0%
Tax assets
2,567
2,992
2,928
2,753
7.2%
-6.0%
Other assets
1,169
931
848
1,435
22.8%
69.3%
Total assets
123,226
121,787
119,924
119,454
-3.1%
-0.4%
of which: goodwill*
MAIN LIABILITIES AND EQUITY ITEMS
Figures in millions of euro
30.06.2014
31.12.2014
31.03.2015
30.06.2015
% annual
change
% quarterly
change
Net interbank position**
11,886
9,952
9,029
5,858
-50.7%
-35.1%
Due to customers
47,127
51,617
50,818
55,331
17.4%
8.9%
Securities issued
43,049
41,590
40,324
38,996
-9.4%
-3.3%
620
630
735
441
-28.9%
-40.0%
10,603
10,530
10,018
9,762
-7.9%
-2.6%
Non-controlling interests
823
555
540
549
-33.3%
1.6%
Profit for the period
106
(726)
76
124
17.2%
63.9%
123,226
121,787
119,924
119,454
-3.1%
-0.4%
Tax liabilities
Net worth attributable to the Parent
Total liabilities and equity
* Goodwill impairment in 2014
** Including € 6.1 bln TLTRO and € 3 bln short term financing as at end March 2015
23
Capital Ratios (Phased in, Basel 3) as at June ‘15:
Common Equity Tier 1 Ratio at 12.94%, Total Capital Ratio at 15.62%
mln/€
Dec '14 June '15
Common Equity Tier 1 Capital
(before filters and transitional provisions)
8,029.9
8,163.1
Transitional provisions (minority interest)
Transitional provisions (AFS Reserves)
Common Equity Tier 1 Capital filters
Italian Govies filters
258.1
-92.5
-1.9
-60.0
191.9
-96.0
-3.2
-14.1
8,133.6
8,241.7
Common Equity Tier 1
(after filters)
Common Equity Tier 1 regulatory adjustments: negative elements
for deduction excess of expected losses over impairment losses
Common Equity Tier 1 Capital (CET1)
Additional Tier 1 before deductions
Additional Tier 1 regulatory adjustments: negative elements for
deduction excess of expected losses over impairment losses
Additional Tier 1
Tier 1 Capital
mln/€
Dec '14
June '15
Risk weighted assets
61,762.6
59,526.3
4,572.7
4,362.8
14.7
14.6
Total prudential requirements
Credit risk
CVA (Credit Value Adjustment) risk
Mark et risk
Operational risk
-518.3
-536.1
7,615.3
7,705.6
37.6
39.2
-37.6
-39.2
-
-
7,615.3
CET 1 PHASED IN
7,705.6
12.33%
Tier 2 instruments grandfathering
-
-
2,187.8
1,813.2
Tier 2 capital regulatory adjustments
-361.4
-221.0
of which: negative elements for deduction excess of expected
losses over impairment losses
-370.6
-246.5
Tier 2 Capital
1,826.3
1,592.2
TOTAL OWN FUNDS
9,441.6
9,297.8
Tier 2 Capital after transitional provisions
Annex 2
Dec '14
56.5
84.1
297.1
300.6
TOTAL CAPITAL
PHASED IN
12.94%
15.29%
15.62%
June '15
Dec '14
June '15
24
Annex 3
Asset Quality details
Days of
arrears
0
90
PERFORMING LOANS
t
PAST-DUE LOANS
PERFORMING
FORBORNE
Figures in mln€
BAD LOANS
(“Sofferenze”)
UNLIKELY TO PAY
NON PERFORMING FORBORNE
Net exposure
Gross exposure
Coverage
Mar '15
June '15
Mar '15
June '15
Mar '15
June '15
75,525
76,127
75,069
75,689
0.60%
0.58%
2,392
2,342
2,355
2,307
1.52%
1.51%
13,227
13,368
9,565
9,651
27.68%
27.80%
of which forborne
2,169
2,483
1,851
2,104
14.67%
15.25%
- Bad loans ("Sofferenze" )
6,728
6,829
4,115
4,187
38.84%
38.68%
- “Unlikely to pay” loans
6,042
6,150
5,014
5,096
17.01%
17.13%
5,087
955
5,223
927
4,241
773
4,349
747
16.63%
19.04%
16.74%
19.37%
- Past due loans
458
389
437
368
4.65%
5.39%
Total loan book
88,753
89,495
84,634
85,340
4.64%
4.64%
4,560
4,825
4,206
4,411
7.77%
8.58%
Performing loans
of which forborne
Non performing exposures
- Former impaired loans
- Former restructured loans
of which: forborne
% Incidence on total loans...
...in gross terms, June ‘15
Unlikely to pay
loans, 6.9%
Bad loans, 7.6%
Past due loans,
0.4%
...in net terms, June ‘15
Unlikely to pay
loans, 6.0%
Bad loans, 4.9%
Past due loans,
0.4%
Performing
loans, 85.1%
Performing
loans, 88.7%
25
Annex 4
Other key elements to assess the Group loan portfolio
June 2015
 Loan To Value* (Network banks + UBI):
 Performing loans:
 Retail: 45.9% (45.6% in Dec ’14)
 Corporate: 38.8% (39.8% in Dec ‘14)
 Unlikely to pay and Past due loans:
 Retail: 55.5% (55.6% in Dec ’14)
 Corporate: 47.6% (49.4% in Dec ‘14)
 % of secured (real estate + personal guarantees) positions as at Dec ’14
(table A.3.2 of the notes to the accounts):
Total: 77.5%
Performing: 77.2%
* Arithmetic mean
** Management data
Total non performing exposure: 80.0%
(over 66% assisted by real estate**)
26
Annex 5
Securities Portfolio composition*
Composition of the portfolio
BY TYPE OF
FINANCIAL
INSTRUMENT
BY FINANCIAL
PROFILE
BY CURRENCY
BY GEOGRAPHICAL
DISTRIBUTION
BY RATINGS (BONDS)
31.12.2014
31.03.2015
30.06.2015
Government bonds
95.6%
97.0%
97.1%
Corporate bonds (mainly bank issues)
3.3%
2.2%
2.0%
Hedge funds
0.5%
0.6%
0.6%
Funds and shares
0.6%
0.3%
0.3%
Floating rate**
57.9%
61.6%
61.6%
Fixed rate
38.2%
34.5%
35.5%
Structured securities
2.8%
3.0%
1.8%
Shares, funds, convertible bonds
1.1%
1.0%
1.0%
Securities in euro
99.7%
99.7%
99.7%
Securites of the euro area
99.9%
99.9%
99.9%
USA securities
0.00%
0.00%
0.00%
Investment grade
99.4%
99.3%
99.4%
Average rating
Baa2
Baa2
Baa2
*
Analysis refers to a portfolio which excludes participations, some smaller portfolios and derivatives. Management accounts,
positions determined on trade date
** Fixed rate securities with asset swaps are considered as floating rate securities; securities in asset swap represent 97% of
floating rate securities as at 30 June 2015
27
Annex 6
Net Interest Income - Customer Spread details
CUSTOMER SPREADS
in bps on avg. STOCK*
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
23
23
7
1
0
-5
Mark up vs 1M Euribor
Short term
Medium-long term
278
361
253
278
348
257
286
347
268
281
335
266
275
323
261
268
308
258
Mark down vs 1M Euribor
-98
-95
-99
-96
-89
-86
-8
-191
-146
-186
-7
-163
-146
-183
-19
-130
-148
-191
-20
-125
-142
-189
-16
-112
-136
-186
-18
-89
-129
-187
180
183
187
185
186
182
196
198
204
203
201
196
1M Euribor
Sight deposits
Term deposits
Retail bonds
Institutional bonds
UBI Group - Customer spread
of which
UBI Network Banks cust. spread
* Average period data referred to the whole consolidated Group (Network banks+ Product companies + UBI)
28
Annex 7
Net Commission Income details
Net Commission Income (€ mln)
MANAGEMENT, TRADING & ADVISORY
SERVICES*
1H14
323
1H15
372
1H15 / 1H14
(%)
15.5%
2Q14
1Q15
2Q15 / 2Q14 2Q15 / 1Q15
(%)
(%)
2Q15
163
193
179
9.9%
-7.4%
of which:
Portfolio management
124
157
27.1%
64
77
80
24.6%
3.3%
Placement of securities
94
121
29.1%
47
68
53
14.7%
-20.9%
Third party services distrib ution
87
91
5.1%
44
46
45
3.5%
-1.1%
287
297
3.3%
147
148
149
1.5%
0.7%
127.3%
66.2%
-20.3%
n.s.
n.s.
BANKING RELATED COMMISSIONS
of which:
Guarantees (b anking activity)
11
25
(16)
-
Collection and payment services
59
Services for factoring transactions
Current accounts management
of which for State guaranteed bonds
Other services
TOTAL
7
14
11
n.s.
(6)
-
-
56
-6.6%
30
27
29
-5.4%
6.5%
10
8
-17.2%
5
4
4
-16.6%
-4.7%
98
94
-4.1%
51
46
48
-5.1%
3.9%
109
114
4.7%
54
57
57
5.2%
0.9%
12.6%
304
341
328
7.9%
-3.9%
594
669
* Includes FX negotiations
29