Introduction to the UBI Banca Group
October 2016
History of UBI Banca

Unione di Banche Italiane Spa (“UBI Banca”) was formed following the merger of the skills and
experience 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 the significant reality of today
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)
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
1992
CAB
acquires
“Banco di
San Giorgio”
(BSG)
Acquisition
of “Banca
Carime” by
BPCI
2001
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
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”
1st April 2007
Birth of
“UBI Banca”
following the
merger of the
BPU Banca
Group and
the 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”
12 October
2015
UBI is the
first
popolare
bank to
become a
Joint Stock
Company
14 October
2016
UBI EGM
resolved on
the transition
from the
federal model
to the Single
Bank
2
UBI Banca ranks 4th / 5th among major Italian banks by key indicators
Total assets as at 30th June 2016 (bln/€)
No. of branches as at 30th June 2016
6,606
891
5,242
717
2,048
#5
1,733
1,537
#5
164
1,176
124
655
Customer loans as at 30th June 2016 (bln/€)
117
62
50
Total direct funding 30th June 2016 (bln/€)
596
489
397
360
108
#4
#4
84
112
79
44
35
88
83
46
37
Source: Press releases
3
The Group structure, the heritage of the federal model…
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...)
NETWORK BANKS
347 branches
287 branches
Northern
Italy
192 branches
204+3* branches
63 branches
Central
Italy
202 branches
Southern
Italy
211 branches
**
21 branches, ~ 824
financial advisors
MAIN PRODUCT COMPANIES
100.00%
ASSET MANAGEMENT
UBI Pramerica
(partnership with Prudential US)
FACTORING
UBI Factor
LEASING
UBI Leasing
100.00%
83.76% (1)
74.79%
(2)
98.70%
LIFE BANCASSURANCE Lombarda Vita (partnership with Cattolica)
Aviva Vita Spa
Aviva Assicurazioni Vita Spa
99.59%
99.99%
100.00%
Information updated as at 30th June 2016
* Indicates branches outside Italy
** Merger between IW Bank and UBI Private Investment completed on 25 May 2015
1) moreover, 16.24% 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
4
…streamlined to the simplification of the new organisational model
CURRENTLY
AS FROM
SPRING 2017
Nord-Ovest
Milano e Emilia Romagna
Bergamo e Lomb. Ovest
Brescia e Nord-Est
Centro-Sud
# of branches in Italy
UBI
Banca Popolare di Bergamo
4
347
Banco di Brescia Spa
287
Banca Popolare Commercio e Industria Spa
192
Banca Regionale Europea Spa
Banca Popolare di Ancona Spa
204
202
Banca Carime Spa
211
Banca di Valle Camonica Spa
IW Bank Spa
63
21
Single bank project
envisages the closure of
approx.130 points of
sale
other revisions of the
branch structure
-18%
A reduction of 18% in the # of points
of sale over the period Dec ‘15-2019
(network banks perimeter)
5
Strong presence of the Group in the Italian wealthiest regions
The network: branch distribution*
Valle
d’Aosta (1)
Contribution
to GDP ***
Branches
Loans
to Customers
Current
accounts and
deposits
55.0%
6.0%
6.4%
5.0%
Lombardy
21.6%
12.9%
9.4%
8.4%
Piedmont
7.6%
6.9%
5.2%
4.7%
Liguria
2.8%
4.4%
6.8%
3.6%
22.0%
3.3%
2.7%
2.5%
11.5%
4.2%
3.0%
2.8%
Trentino Alto Adige (1)
Lombardy
Friuli Venezia Giulia (9)
(749)
Liguria (36)
Emilia Romagna (42)
Tuscany
(7)
Latium
(105)
Campania
(76)
in %
Northern Italy
Veneto (27)
Piedmont
(167)
Sardinia (1)
UBI Banca Market Share**
Marches (78)
Umbria (18)
Abruzzo (16)
Molise (6)
Apulia (93)
among which:
Central Italy
among which:
Latium
Basilicata (19)
Marches
2.5%
7.5%
8.9%
6.9%
23.0%
7.1%
5.2%
5.8%
Campania
6.1%
5.3%
4.4%
3.9%
Apulia
4.4%
7.3%
4.8%
5.8%
100.0%
5.2%
5.3%
4.3%
Southern Italy
among which:
Calabria (80)
Market share < 2%
2% <= Market share < 5%
5% <= Market share < 15%
Market share >= 15%
* As at 30 June 2016
** Market shares as at 31 December 2015
*** Source: Istat (GDP in terms of value added). 2014 data
Italy
6
The Group in a snapshot: predominant retail business, solid capital base,
low risk profile
Strong
competitive
positioning
Low Risk
Profile
Good Asset
Quality
■ 1,531 branches in Italy and 6 abroad, with a market share of 5.2% serving approx. 3.6 million clients
■ 4th largest bank in Italy by customer lending and direct funding
■ Focus on Northern Italy where 81.2% of loans to customers and 74.1% of customer deposits are generated
■ Focus on traditional banking activities: Customer Loans / Total Assets at 72%
■ Financial Assets / Total Assets: c. 16%. Italian Govies represent 13.9% of total assets
■ 76.4% of Performing Exposures is low risk (76.0% in March 2016)
■ Good asset quality compared to the Italian banking system. Second lowest ratio of gross NPEs/total gross
loans among peers at 14.9% (10.1% net)
■ Strong improvement in coverage up to 44.3% for NPEs and to 58.3% for Bad Loans (including write-offs),
respectively +667 bps and +584 bps vs. Mar ‘16
■ Strong liquidity position framework with total eligible assets at € 27 bln (~55% of current accounts and
Funding and
Liquidity
deposits) and both LCR and NSFR >100%
■ Funding mainly from own customer base (approx. 80%)
■ Current accounts and deposits from ordinary customers at € 49.1 mln (+2.9% vs. December 2015)
■ Capital ratios as at 30.06.2016, after booking 95% of the new Business Plan costs (€ 1.2bln gross; € 0.8bln
net)
Solid Capital
and Balance
Sheet Position
 CET 1 ratio phased in: 11.43% vs. 9.25% SREP requirement, representing a buffer of 2.83 p.p.
 CET 1 ratio fully loaded under Basel 3 rules: 11.02% (not including approx. +70 bps from repurchase of
minorities and use of DTA on shortfall, as shown in UBI 2019-2020 Business Plan, announced in June
2016)
■ Basel 3 Leverage ratio at 5.7% phased in, 5.5% fully loaded
■ RWAs density of c. 53%
Figures as at 30 June 2016 unless otherwise stated
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Presence in the world
Munich
UBI Banca International
Branch
Luxembourg
• UBI Banca International**
• UBI Trustee SA
• UBI Management Co SA
Krakow
UBI Factor Branch
Shanghai
Zhong Ou Asset Management
Company Co. Ltd*
Antibes, Menton, Nice
Banca Regionale Europea
Branches
Madrid
UBI Banca International
Branch






Shanghai
Representative Office


New York
Representative Office
from January 2016
São Paulo
Representative Office



Hong Kong
Representative Office
Mumbai
Representative Office

Casablanca
Representative
Office from February
2016
Vienna
Business Consultant
Moscow
Representative Office
* Joint-venture in which UBI Banca holds the 35% of the total share.
** On 28th April 2016 UBI Banca signed a contract for the sale of 100% of the share capital of UBI Banca
International S.A. to EFG International AG. The transaction is expected to be completed during the first half of 2017.
Dubai
Representative Office
from August 2015
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