1H05 CONSOLIDATED RESULTS Alessandro Profumo - CEO

1H05 CONSOLIDATED RESULTS

Alessandro Profumo - CEO

Milan - September, 13th 2005

2

SUMMARY OF CONTENTS

Transition to International Accounting Standards: no major impact on net income and shareholders’ equity for the Group

1H05 and 2Q05 results in ITAS: strong performance of the Group

3

2Q05 ACHIEVEMENTS

Strengthened competitive positioning in Italian banking (lending market share +20 bp3, mutual funds market share +35 bp vs Dec04)

Solid performance of operating income (+11.4% y/y) benefiting from top-line growth (+6.5% y/y) and cost control (+1.4% y/y1)

Continued headcount reduction, in advance of the plan: -1,159 vs Jun04 and -669 vs Dec04 in Italy

Continued volume growth (AuM: +6 bn, Loans2: +4.3 bn q/q), despite UCB mortgage securitisation (3 bn)

(2) Ex-repos

Net income at 608 mln in 2Q05 (+4.3% y/y) and at 1.3 bn in 1H05 (+24% y/y)

(3) Gross of UCB mortgage securitization

(1) Calculated on operating costs net of recovered taxes

4

STRONG RESULTS, FURTHER OPERATING INCOME IMPROVEMENT

Total Revenues

(mln)

5,604

1,301

58 bp

+7.7%

+24.0%

-5 bp

Operating Income

Net Income

1H05 Y/Y ch.

2,556 +12.1%

54.4%C/I Ratio, %

8.03% +9 bpTier I ratio

Cost of Risk, bp(2)

(2) 1H05 data annualised

Ch. on FY04

1H05

34.0%Tax Rate, %

-179 bp

-174 bp

2,892

608

2Q05

1,347

53.4%

36.1%

+6.6%

-12.1%

% ch. on 1Q05

+11.5%

-202 bp

+412 bp

+6.5%

+4.3%

% ch. on 2Q04

+11.4%

-203 bp

+143 bp

Deltas mainly due to tax free gain from disposal of “Serenissima” stake in 1Q05

53.3%C/I Ratio net of recovered taxes(1), % -206 bp 52.3% -211 bp -232 bp

(1) Calculated excluding, both from costs and revenues, taxes recovered and accounted in the “other net revenues” line

5

NET INTEREST INCOME UP BOTH Q/Q AND Y/Y

2Q04

New Europe

Italy

1,210

939

271

1Q05

1,274

986

288

NET INTEREST INCOME excl. Dividends (mln)

1,286

976

309

2Q05

Sustained volume growth in all divisions driving net interest income good performance Italy:

Negative impact of UCB mortgage securitisation on Italy contribution (~7 mln in 2 months) Slight margin compression (mainly in UBI) driving lending spread to 3.61% (-25 bp Q/Q) (2), in line

with system trend New Europe:

Good volume growth in all New Europe banks, both at current and unchanged FX Slight margin compression in major banks, with the exception of Pekao

1H04

2,399

1,869

530

2,560

1,963

597

1H05

+6.7%

+5.0%

+12.7%

+0.9%

-1.1%

+7.5%

+6.2%Q/Q % ch.

Underlying y/y growth(1) would be +8.4%

(1) Y/y % ch. adjusted for securitisations (Locat, District bonds and UCB)(2) End of period short term spread (UBI + UCB) towards non financial companies

6

3.112.7

2.7

16.215.02.9

DEC 04

10.83%

11.05%

INCREASED LENDING VOLUMES AND MARKET SHARE GAINS WHILE MAINTAINING PRICING PREMIUM

Retail: loan growth driven by mortgages, consumer credit and small business. 2Q05 impacted by 3 bn mortgage securitisation

Corporate: up 5.0% vs Mar 05 with m/l term still growing (+3.4%2)

New Europe: +6.4% at unchanged FX with q/q increases in all banks (Pekao +5.2%, Bulbank +1.5%, Zaba +5.2%, Koc +11.6%)

Good lending spread (3.61%) with pricing premium vs industry (37 bp)

1 Net of repos2 Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos)3 Including 3 bn mortgages securitisation.

JUN 053

On total loans 10.79%

On M/L term loans 10.85%

MAR 05

10.88%

11.13%

MAR 05

139.6 143.9

Corporate

New Europe

JUN 04 JUN 05

131.3

Retail

63.0 63.8

57.9

66.9

+9.6%

Other

52.4 58.2

% ch. vs MAR 05

+3.0%

+8.4%

-0.7%

+5.0%

+7.9%

TOTAL CUSTOMER LOANS1 (bn)UCI LENDING MARKET SHARES2 IN ITALY

Excluding 3 bn mortgages securitisation, market shares would be:

11.03% (+20 bp on Dec 04) on total loans 11.23% (+18 bp on Dec 04) on M/L term

loans

7

NET COMMISSIONS DRIVEN BY SPECIFIC FOCUS ON ASSET MANAGEMENT PRODUCTS AND BY FURTHER DEVELOPMENT OF TRANSACTIONAL AND LENDING RELATED FEES

230212

(1) Up-front on AUM and AUC referred to UniCredit Banca, UniCredit Private Banking and Xelion

NET COMMISSIONS (mln)

+8.8%1,653

1,799

1,4231,587

1H04 1H05

+11.6%

-7.8%

98116 114

Up-front(1)

Other

928

2Q05

831

855

2Q04

739

1Q05

757

871+6.7%

-13.8%

+9.8%

Q/Q % ch.+8.7%

+12.7%

Y/Y % ch.

(2) Corporate finance + Equity capital market + Debt capital market

Key drivers of the growth: Strategic focus on recurring fees: segregated accounts & mutual funds fees (excl. up-

front) up 25 mln 2Q05/1Q05 and 95 mln 1H05/1H04 Corporate Division: foreign-trade (+7 mln 2Q/1Q, +9 mln 1H/1H), investment banking(2)

(+11 mln 2Q/1Q, +35 mln 1H/1H) and transaction services (+1 mln 2Q/1Q, +4 mln 1H/1H)

Trend of up-front fees impacted by lower emphasis on sales of third party structured bonds

8

Dec04

GROUP AUM REACHING NEW HEIGHTS: +18 BN IN ONE YEAR, +6 BN JUST IN THE LAST THREE MONTHS

(2) Calculated according to the “new” classification methodology adopted by Assogestioni since January 2005

(1) US + New Europe + International (ex Italy)

UCI TOTAL AUM(bn)

135

Jun05

141

Mar05Jun04

123

+4.4%

Italy

International1 35

4144

88 9497

+7.3%

+3.2%

+14.3%% ch. vs

Mar05

UCI mkt. share2 14.54%

… leading to continued gains in market share and # 2 ranking

4.6 bn net sales for Pioneer worldwide in 1H05 (vs 2.1 bn in 1H04)

UCI’s strong out-performance of the Italian market in mutual funds’ net sales: 3,421 mln out of 7,295 mln for the entire system as at end August 05…

A clear growth story based on Pioneer global presence: +18 bn AUM in 12 months, of which almost 9 bn in the international business units1 (+24.9% y/y)

Slight improvement of average pricing

14.89%

Aug05

15.17%

Jun05

Solid and consistent performance: 15 out of 47 US funds awarded 4 or 5 stars by Morningstar as well as 11 out of 65 Italian or Luxemburg funds

9

188

INCOME FROM FINANCIAL TRANSACTIONS(mln)

INCOME FROM FINANCIAL TRANSACTIONS SLIGHTLY AFFECTED BY LOWER CONTRIBUTION OF DERIVATIVES

2Q04

295

251

1Q05

287

159

2Q05

277

1H04 1H05

587564

450347

-3.9%

-22.9%

-6.5%

-4.0%

-15.4%

Lower contribution of derivatives to consolidated revenues (6.2% in 1H05 vs 8.6% in 1H04)

Of which: Derivatives

(Corporate + Institutional + Retail)

q/q % ch.

2H05: y/y trend of derivatives expected to improve, mainly thanks to development of Institutional Derivatives

Reduction of derivatives largely balanced by New Europe, benefiting also from positive mark-to-market of government bond portfolios in 2Q05

10

Quarterly trends (at constant FX and net of taxes recovered in the “other net revenues” line): Personnel costs under control: -0.5% Q/Q, mainly thanks to staff reduction in Italy Other adm. expenses: +4.3% Q/Q, mainly driven by advertising and marketing expenses in Retail division

COSTS GROWTH MAINLY DRIVEN BY SIGNIFICANT FX EFFECT

OPERATING COSTS BREAKDOWN (net of taxes recovered in the “other net revenues” line)(mln)

1H04 1H05

1,689 1,768

916

220936

2102,8252,914 +3.2%

+2.2%

+4.7%

-4.5%

Personnel costs

Other admin. expenses

Depr. & amort.

2Q05

883 885

455102 481

108

1Q05

852

488

114

2Q04

1,454 1,4401,474 +2.4%

+5.7%

+0.3%

+1.4%

+5.2%TOTAL COSTS

Q/Q % ch.

Half year results (at constant FX and net of taxes recovered in the “other net revenues” line): Total operating costs growing only by 1.7% Personnel costs increase +3.5% mainly due to higher staff in NE division, higher accruals for MBOs (mainly Retail

and NE Divisions) and bonuses linked to UCI labour agreement (VAP) Other admin. expenses almost in line with 1H04 (+0.6%)

Taxes recovered in the “other net revenues” line 51 63 71 98 134

11

GLOBAL BANKING SERVICES: WELL ON TRACK VS PLAN TARGETS

REAL ESTATE: rationalisation of real estate assets including 51 UCB branches closed in 1H05

LEGAL ENTITIES RATIONALISATION: de-merger of UBMC “core” banking and project finance activities respectively in favour of UBI and a new dedicated company (effective from January 2006); approved merger into UCI segment banks of C.R. Carpi and Banca dell’Umbria (effective from July 2005)

UPA ROMANIA: received authorization for activity transfer, 87 people hired (as of June 2005) partly still having training & partly already active

CALL CENTER: 3 largest call centres consolidated into 1 (same location and IT platform), ~250 people involved (~80% of total); consolidation of the other 4 call centres expected in 2006

PURCHASING: positive impact in 2005 from doubled on-line purchases in Italy

Staff downsizing (-1,159 vs 1H04, -669 vs. Dec04) better than expected

2004

39,858 39,368

1H04

-1,159

ITALY

38,699

1H05

12

Weight on Net Loans

Provisions on performing loans 1,414 +2.7%

Coverage ratio 0.97% -

Total Net Doubtful Loans 5,179 +2.9%

Weight on Net Loans 3.46% +0.4 bp

mln, where not specified

Net Non Performing Loans 2,690 +0.5%

1.80% -4 bp

Jun05ch. on Mar05

ASSET QUALITY: REDUCTION OF FLOWS OF NEW DOUBTFUL LOANS AND INCREASED COVERAGE RATIOS ON NPLs AND WATCHLIST

(1) Defined as: Flow from performing loans to any category of doubtful loans less Flow-back from any category of doubtful loans to performing

Very limited increase of net NPLs (+0.5% q/q) and q/q reduction of net watchlist (-0.3% q/q)

Coverage ratios increased on NPLs (60.6% vs 60.2% as of Mar05) and watchlist (20.2% vs 19.8% as of Mar05), while stable on total doubtful (48%) and performing loans (0.97%)

Net loan loss provisions at 216 mln in 2Q05, in line with 1Q; 1H05 cost of risk (annualised) at 58 bp (-5 bp vs FY04), of which 17 bp for provisions on performing loans

1.4 bn provisions on performing loans (+37 mln vs Mar05); no additional provisions on Convertendo FIAT: conversion loss totally provisioned for at current market prices

1H04

1,014

1H05

996 -1.8%

NET FLOWS OF NEW DOUBTFUL LOANS1 (mln)

Stated cost of risk (annualised) 58 bp -5 bp

Jun05ch. on 2004

Total net doubtful loans increase (+143 mln, +2.9% q/q,) almost totally driven by restructured loans2 (+103 mln) and by loans to countries at risk (+32 mln), the latter mainly due to very prudent BanKIT rules for Bosnia

(2) Mainly due to changed accounting rules for new loans granted to single borrowers whose old credit lines had been restructured (these new loans could be classified as performing under the old rules while with the new ones they must be classified as restructured as well)

-8.3% netting 1H05 of 66 mln loans “under restructuring” moved to “performing” and thereafter re-classified as

“restructured” in 1Q05 (Shifts due to the new classification

categories adopted by BankIT since 1.1.2005)

13

GROUP RESULTS BENEFITING FROM BUSINESS DIVERSIFICATION

1H05 OPERATING INCOME BY DIVISION

y/y % ch.

1,063Corporate -3.2%

838Retail +38.3%

2,556TOTAL GROUP +12.1%

521New Europe +33.9%

CONTRIBUTION TO 1H05 GROUP OP. INCOME PRE CORPORATE CENTRE AND ELISIONS

273Private & AM +37.9%

mln

19.2%

10.1%

39.5%

31.2%

RETAIL DIVISION CORPORATE DIVISION

PRIVATE & AM DIVISION NEW EUROPE DIVISION

14

(1) Average data, net of minorities

(3) End of period, Pay-out ratio: Dps of previous year semestralised

1H05 RORAC(4)ABSORBED CAPITAL(1)

Total Group 9.6 bn

1H04

+6.0

% ch. on 1H04(2)

10.2 bn

1H05

Retail

51.0% +5.0

28.7%

NE

27.6% +13.1

12.9%

Corporate

12.1% +16.4

49.3%

Private & AM 9.3% +5.69.1%

Divisional weight

Excess Capital(3) 0.7 bn 1.1 bn

(4) Return on risk adjusted capital = Marginal Rarorac + Cost of Equity(2) On Absorbed Capital

42.7%

35.5%

24.3%19.6%

23.5%

Private & AM

NE Retail Corporate Group

Cost of equity 8.58%

Ma

rgin

al

RA

RO

RA

C

RISK ADJUSTED PROFITABILITY CONFIRMED AT HIGH LEVELS

Y/Y significant increase in EVA for Private, Retail and NE Divisions, thanks to high net income growth (RORAC +7.6, +5.5 & +1.6 pp y/y respectively)

15

RETAIL DIVISION: STRONG LENDING MARKET SHARE INCREASE DRIVING NET INTEREST INCOME TURNAROUND

EXCELLENT LENDING GROWTH (+10.4% Y/Y) …

Household mortgages(1) +10.4% y/y (-0.1% vs. Dec04)

Consumer credit +44.7% y/y (+18.9% vs. Dec04)

Small Business +11.8% y/y (+4.1% vs. Dec04), mainly thanks to s/term loans

… AND GOOD SPREAD RESILIENCE IN ALL KEY MARKETS…

2Q average spread(2) on:

new mortgages at 1.27% for UCB (+1 bp q/q) and 1.41% for UBCasa (+2 bp q/q)

small business(3) s/term loans at 7.59% (-28 bp q/q)

revolving cards at 11.77% (+40 bp q/q)

… SUSTAINING NET INTEREST INCOME SOUND PERFORMANCE (despite mortgage securitisation carried out in 2Q penalising Q/Q trend by 7 mln)

2Q04

570

1Q05

614

NET INTEREST INCOME (ex. div.), mln

2Q05

614

(2) Management accounts(3) Management accounts, including also maximum overdraft charges

+7.7%(+8.9% ex securitisation)

(1) Trend due to 3 bn securitisation carried out in 2Q05. Excluding securitisation, mortgage growth would be +20.5% y/y and +9.0% vs. Dec04

16

STAFF COSTS, mln

-834 vs. June 04

1H04

25,467

2004

25,136

TOTAL STAFF

1H05

24,633

RETAIL DIVISION OPERATIONAL ACHIEVEMENTS

STAFF REDUCTION PLAN WELL ON TRACK (~50% of the total reduction announced in the plan already achieved)…

CONTINUED FOCUS ON WEALTH MANAGEMENT PRODUCTS GENERATING RECURRING REVENUES

SALES OF SEGR. ACCOUNTS INVESTING IN FUNDS, bn

… WITH CLEAR EFFECTS ON TOTAL STAFF COSTS, DESPITE NEW LABOUR CONTRACT

EXCELLENT CONTRIBUTION TO GROUP NET INCOME

CONTRIB. TO GROUP NET INCOME, mln

2Q04

131

1Q05

187

2Q05

188

4Q04

1.5

1Q05

1.9

2Q05

1.7

2Q04

384

1Q05

403

2Q05

387

+43.9%

17

375

358363

2Q04 1Q05 2Q05

-3.2%

+1.3%

+2.1% gross of securitisations (~20 mln)

CORPORATE DIVISION: STRONG LENDING GROWTH SUSTAINS NET INTEREST INCOME, OFFSETTING LOWER SPREADS

(2) Only UBI + UBMC (Source: BankIT Matrix)(3) Calculated on SMEs and other non-financial enterprises excluding largest Groups. Source: Credit Bureau data as of Jun05

NET INTEREST INCOME (excl. dividends), (mln)

(1) Almost totally recovered as “Other income”

1H04 1H05

745

721

+1.1%

Locat + District bond securitisations

impact1

75333

-3.3%

TOTAL LOANS (ex Repos), (bn)

Of which: M/L2

Significant growth of customers loans: +10.0% y/y gross of securitisations, +5.0% q/q …

… with positive contribution of M/L term lending (+14.0% y/y and +3.4% q/q)

Reduction of lending spreads for UBI (2.12% Avg. 2Q05, -10 bp q/q and -13 bp y/y)

63.0 63.866.9

Jun04 Mar05 Jun05

+6.2%

+5.0% vs Mar05

24.5 27.0 27.9

+10.0% gross of securitisations

+3.4% vs Mar05

q/q % ch.

UBI share of wallet3 at 13.8% (vs 13.4% as of Dec04)

18

FOCUS ON SERVICE REVENUES AND RISK PROFILE

NET COMMISSIONS, (mln)

1H04 1H05

226

273 +21.0%

126129

144

2Q04 1Q05 2Q05

+14.4%

+11.5%

Foreign trade services: 74 mln in 1H05 (+14.5% y/y), 40 mln in 2Q05 (+21.0% 2q/1q)

Transaction services: 37 mln in 1H05 (+11.7% y/y), 19 mln in 2Q05 (+5.5% 2q/1q)

More balanced revenue composition for UBM in 1H05 vs 1H04

Derivatives: 67% (-10 pp)

Investment Banking1: 19% (+7 pp)

Sales & Trading on cash products: 14% (+3 pp)

NET FLOWS OF NEW DOUBTFUL LOANS2, (mln)

Default Rate3 at 0.68% in 1H05 vs 0.83% in 1H04

Relevant reductions of net flows of new doubtful loans both in 2Q05 vs 1Q05 and in 1H05 vs 1H04

(2) 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

1H04 1H05

520453 -12.8%

1Q05 2Q05

253200 -21.0%

q/q % ch.

(3) Defined as: (Flows from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans)/ Total Gross In Bonis Loans as of previous 31 December

Investment Banking1: 107 mln in 1H05, (+47.7% y/y), 59 mln in 2Q05 (+22.2% 2q/1q)

(1) Investment Banking: Corporate Finance (UBI, UBM and UBMC) + Equity Capital Market (UBM) + Debt Capital Market (UBM)

19

626

46

PRIVATE & ASSET MANAGEMENT DIVISION: CONTINUED ASSET AND RECURRING MANAGEMENT FEES GROWTH

Significant growth of Tot. Financial Assets (bn)

All figures at unchanged FX

Excellent net sales in 1H05:

Asset Management: 4.6 bn net sales, vs 2.1 bn in 1H04

Asset Gathering (UPB+Xelion): 3.3 bn net sales in 1H05 (+24% y/y), of which c. 0.9 bn of AM products

(1) Assoreti perimeter

Xelion: top-league performance in net sales in Italy(1), ranking # 2 with 14% market share (as of end June 05)

(2) Till year-end 2004 performance fees on long-only funds were cashed by Pioneer once a year at year-end, with a seasonal effect in 4Q. Starting from 2005 they are calculated and cashed on a quarterly basis

TOTAL REVENUES (mln)

Up-front fees

Management & other fees

Performance fees(2)

1Q05

316326

+3.2%

+3.3%

2Q04 2Q05

286

223

172

240

228

248

Q/Q % ch.

NII & other 44

46

163181 189

Jun04 Mar05 Jun05

+16.0%

1448

92

1H04

569

642

1H05

308

488

88

+10.1%

12.8%

+4.7% vs Mar05

443

+10.3%

+14.1% Resilient margins thanks to

product and asset mix:

Asset Mix (Pioneer): avg. weight of stocks and equity funds at 29.5%in 1H05, up 203bp y/y; avg. weight of hedge funds at 3.1% in 1H05, up 55bp y/y;

Margins(3) (in bp of average AuM): up from 57.6bp in 1H04 to 59.1bp in 1H05

(3) Net commissions, excluding performance fees

20

EXCELLENT VALUE CREATION THANKS TO REVENUE GROWTH AND STRONG EFFICIENCY GAINS

All figures at unchanged FX

Revenue rising q/q (+3.2%) and y/y (+12.8%), driven by sales of Focus Invest and the new Investment Program and by improvement in the asset mix

Net income for the Group at 102 mln in 2Q05 (+4.3% q/q) and 199 mln in 1H05 (+25.1% y/y)

2Q05 operating income increased by 4.7% vs 1Q, confirming an excellent trend (+37.5%1H05/1H04,) thanks to revenue growth and cost control

OPERATING INCOME (mln)

1Q05 2Q05

133 139+4.7%

1H04 1H05

198272 +37.5%

C/I RATIO, %

1Q05 2Q05

57.8 57.2

1H04 1H05

65.157.5 -763bp-62bp

C/I ratio further declining by 62bp q/q (-763bp 1H05/1H04); expected moderate recovery of costs for new projects in 2H05 at Pioneer

21

STRONG LENDING GROWTH: +18.9% Y/Y (+27.5% at current FX)

FURTHER DEVELOPMENT OF MUTUAL FUNDS WITH POSITIVE IMPACT ON REVENUES AND MARKET SHARE

All figures at unchanged FX – P&L in ITAS

(1) Management accounts in LAS

NEW EUROPE DIVISION: CONTINUED VOLUME GROWTH SUSTAINING REVENUES GOOD PERFORMANCE

(3) Pioneer Pekao Investment Management

(2) New Europe Business Area of Pioneer is included at current FX

Mortgages(1) (Euro mln)

Jun05

2,231

Mar05

2,3551,904

Jun04

+23.7%

Consumer credit(1) (Euro mln)

Jun05

1,660

Mar05

1,8561,393

Jun04

+33.3%

Mutual Funds(2) (Euro mln)

Jun05

5,707

Mar05

6,347

4,361

Jun04

+45.5%

Market share (PPIM(3))

Jun05

36.1

Mar05

36.432.3

Jun04

+4.1 pp

Net non interest income

(Euro mln)

1H05

253

2Q05

439

186

1Q05

+26.7%

Y/Y % ch.

+42.4%

2Q/2Q % ch.

Net interest income (Euro mln)

1H05

302

2Q05

597

295

1Q05

+4.2%

Y/Y % ch.

+4.0%

2Q/2Q % ch.

22(1) 1H05 data annualised

IMPROVED ASSET QUALITY RATIOS

CAUTIOUS PROVISIONING POLICY AND GOOD PROFITABILITY

STRONG OPERATING INCOME INCREASE: +23.5% vs. 1H04, +37.2% 2Q05/2Q04

Total Revenues (Euro mln) Cost/income (%)

Cost of risk(1) (bp) Coverage ratio on doubtful loans

Attributable Net income (Euro mln)

STRONG GROWTH IN OPERATING INCOME DRIVEN BY REVENUE INCREASE; IMPROVED EFFICIENCY AND PROFITABILITY

All figures at unchanged FX – P&L in ITAS

1H05

70.7%

Dec04

73.5%68.4%

1H041H05

90

FY04

84

Net Provisions on loans (Euro mln)

-6 bp

1H05

563

2Q05

1,048

485

1Q05

+13.2%

Y/Y % ch.

+18.5%

2Q/2Q % ch.

1H05

47.8%

2Q05

50.3%53.2%

1Q05

-4.1 ppY/Y ch.

-7.1 pp2Q/2Q ch.

+5.1 pp

Y/Y ch.

1H05

135

2Q05

241

106

1Q05

+26.2%

Y/Y % ch.

+30.3%2Q/2Q % ch.

1H05

38

2Q05

68

30

1Q05

-3.8%

Y/Y % ch.

+12.9%2Q/2Q % ch.

23

UCI APPROACH TO IAS/IFRS ADOPTION

3Q05 and FY2005 financial statements, including Management Discussion & Analysis and explanatory notes, will be prepared according to IAS

Disclosure on IAS:

First Time Adoption adjustments on 31/12/2004 Shareholders’ Equity (excluding IAS 39) and 1/1/2005 Shareholders’ Equity (with IAS 39 applied)

Reconciliation from IT GAAP to IAS of 2004 Net Income (ex IAS 39, in annex) and 1H05 Net Income and Shareholders Equity (with IAS 39 applied)

“Prudent attitude” in the adoption of IAS. In order to minimize volatility on Shareholders Equity & Net income:

No revaluation of Real Estate No restatement on past Business Combinations

Synchronized IAS and Basel 2 approach on loan loss provisioning

24

1H05 IAS1

1,442

14,900

1H05 ITAS

1,301

14,223

% ch.

NO MAJOR IMPACT OF IAS APPLICATION ON UCI 1H05 NET INCOME AND SHAREHOLDERS’ EQUITY

No changes in our Business Model due to the IAS Transition

Net Income +10.8

Shareholders’ Equity +4.8

As anticipated, no substantial changes between Net Income and Shareholders’ Equity reported under Italian GAAP vs. IAS:

Impact of First Time Adoption on Shareholders Equity not material

Negligible impact on Net Income (main effect due to goodwill amortisation)

Positive impact of IAS 39 in First Time Adoption

1 Including IAS 32/39 and IFRS 4

mln

25

IFRS TRANSITION: IMPACT ON SHAREHOLDERS’ EQUITY

SHAREHOLDERS’ EQUITY 31-12-2004 14,035

SHAREHOLDERS’ EQUITY 01-01-2005 14,373

FINANCIAL INSTRUMENTS (IAS 39)

Time value recognition on loans Holdings Other financial instruments at Fair Value

-607+1,081

+25

+500

GOODWILL(IFRS 3)

2004 goodwill amortization Negative consolidation differences Impairment of goodwill

+272+54-24

+302

EMPLOYEEBENEFITS(IAS 19, IFRS 2)

Share-based payments (stock options & stock granting)

TFR, pension funds, bonuses and deferred compensation

-63-38

-101

OTHER MINOR IMPACTS

Deferred tax assets Other impacts Minorities

11-8

-52

-49

TREASURY SHARES(IAS 32)

Treasury shares directly deducted from equity -358 -358

mln

FIXED ASSETS(IAS 16 & 38)

Positive impact from write-back of land depreciation

Write-off of intangible assets

+54

-10

+44

26

1H05 CONSOLIDATED NET INCOME: FROM ITALIAN GAAP TO IAS

30-06-05Net Income

ITAS

30-06-05 Net Income

IAS

mln

1,301

1,442+151

Goodwill

+11

Fixed assets

-12

Employee benefits

+14

Other

-26

Loans and financial

instruments valued at amortized

cost

Provisions for risk & charges

+4

+12

Consolidation perimeter

Financial instruments at fair value

-13

27

HVB DEAL: WHAT HAS BEEN DONE SO FAR

Initial proceedings with all relevant Regulatory and Antitrust Authorities; approvals already received by a number of key Regulators (BankIT, Bafin, FMA-Austria)

Approval by UniCredit EGM

Offers on HVB and Bank Austria launched

Recommendation by HVB Management Board and positive statement from HVB Supervisory Board

Integration Unit established, with responsibility for monitoring the implementation process both at parent company and subsidiary level (within the limits imposed by applicable laws)

Ongoing

COMPLETION OF THE TRANSACTION EXPECTED WITHIN THIS YEAR

1H05 CONSOLIDATED RESULTS

Annexes

29

Details on 1H05 consolidated results

Divisional Reporting

Retail Division

Corporate Division

Private Banking & AM Division

New Europe Division

Details on IAS reporting

AGENDA

30 (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

2Q05 & 1H05 CONSOLIDATED INCOME STATEMENT

Net extraordinary income


Total revenues

Operating income

Provisions on loans

Administrative costs (incl. depr.)

Other net provisions(1)

Goodwill depr.

(mln)

Minorities

Taxes

% ch. on 2Q04

Net interest income (incl. div.)

- of which Dividends

+6.9

+6.5

-12.5

-44.8

+2.6

+11.4

+47.0

+23.1

+45.3

+14.3

+6.1

% ch. on 1Q05 2Q05

1,483

2,892

-1,545

1,347

-216

56

-38

-89

-70

-382

1,409

123

+5.1

+6.6

+0.7

-73.3

+2.8

+11.5

-10.1

+25.7

+43.4

+9.9

+8.4

n.m. +5.1

y/y % ch. 1H05

2,896

5,604

-3,048

2,556

-430

263

-82

-159

-117

-730

2,708

148

Net income +4.3608 -12.1 1,301 +24.0

+7.9

+7.7

-1.8

n.m.

+4.3

+12.1

n.m.

+11.2

+37.6

+15.7

+7.5

+22.3

31

Retail Division

Corporate Division

Priv.& AM Division

NE Division

Total Group(1)

Total revenues+1.1% -2.0% +5.9% +20.7% +6.6%

Operating costs

Operating income

Net write-downs of loans

Net income for the Group

C/I Ratio

+1.0% +3.8% +4.8% +8.0% +2.8%

+1.3% -4.4% +7.4% +35.2% +11.5%

-9.0% +4.2% n.m. +34.5% +0.7%

+0.6% -1.1% +6.8% +32.6% -12.1%

-0.1 pp +1.7 pp -0.6 pp -5.6 pp -2.0 pp

(1) Balance due to the Parent Company, other Group companies and elisions

(2) Calculated on data at end of period FX

(mln - Data at end of period FX)

DIVISIONAL CONTRIBUTION TO CONSOLIDATED RESULTS IN 2Q05

1,191 751 330 573 2,892

-769 -231 -189 -274 -1,545

422 520 141 299 1,347

-76 -100 -1 -39 -216

188 250 103 137 608

64.6% 30.8% 57.3% 47.8% 53.4%

(3) Including all the employees of Koc Financial Services (3,999 as at 30.06.2005)

Employees(3) 24,633 5,192 3,527 29,865 70,258

2Q05 RESULTS

% Change vs 1Q05(2)

% Change vs 1Q05(2)

% Change vs 1Q05(2)

% Change vs 1Q05(2)

% Change vs 1Q05(2)

Change in pp vs 1Q05(2)

32

NON OPERATING ITEMS

Operating income

Goodwill amort.

Net Income



Net extraord. income

Taxes

Minorities

1Q05

1,209

-70

693

-214

-44

207

-348

-47

2Q04

1,210

-72

583

-246

-27

100

-335

-47

1,347

-89

608

2Q05

-216

-38

56

-382

-70

(1) Net write-downs of financial investments & provisions for risks and charges

1H05

2,556

-159

1,311

-430

-72

263

-730

-117

1H04

2,280

-143

1,049

-438

-36

102

-631

-85

(mln)

33

-on tot. Gross doubtful loans, % 38.6% 33.5% 48.1%71.9%38.7% 32.4% 73.5% 48.0%

-on total gross NPL, % 48.7% 39.5% 85.1% 60.2%48.8% 39.5% 86.0% 60.6%

Total gross doubtful loans 3,620 2,858 3,047 9,695+1.0% +2.7%

Net Doubtful Loans/Tot. Net Loans,% 3.46%3.82% 2.73% 5.71%

3,708

3.93%

+2.4% +4.0%2,971

2.77%

3,077

5.01%

9,957

3.46%

% change on Mar 05

Gross Doubtful Loans/Tot. Gr. Loans,% 6.40%6.04% 4.01% 17.5%6.22% 4.00% 16.4% 6.40%

Total net doubtful loans 2,223 1,901 855 5,036-4.9% +2.9%

2,272+2.2% +5.7%

2,009 814 5,179% change on Mar 05

ASSET QUALITY: DETAILS BY DIVISIONS

Coverage ratios

Retail Division

Mar 05 Jun 05

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 Mar 05Gross NPL/Tot. Gr. Loans,%

Net NPL/Tot. Net Loans,%

2,236 1,8662,48

96,716

+1.8% +1.7%

3.73% 2.62% 14.3% 4.43%

1.97% 1.62% 2.48% 1.84%

2,275

3.81%

2.01%

+1.7% +1.4%

1,892

2.55%

1.58%

2,534

13.5%

2.18%

6,829

4.39%

1.80%

Net NPL

% change on Mar 05

1,146 1,130 371 2,676

-4.6% +0.5%

1,164

+1.5% +1.4%

1,145 354 2,690

Mar 05 Jun 05 Mar 05 Jun 05 Mar 05 Jun 05

34



Retail Division

Corporate Division


New Europe Division


AGENDA

35

Interest income (incl. div.)


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: 1H05 RESULTS BREAKDOWN BY COMPANY

- o/w: Net write-down of loans

1,038

1,041

2,079

-1,387

692

466

66.7

285

-735

-619

-119

-142

55

38

93

-50

43

23.4

53.8

22.5

-25

-23

-4

-6

64

6

70

-37

33

18

52.9

21

-12

-24

-11

-11

77

27

104

-39

65

22

37.6

22

-10

-29

-27

-28

(1) Balance due to rounding and elisions of infragroup dividends, goodwill amortisation and consolidation adjustments

CR Carpi

18

12

30

-18

12

8

61.1

7

-9

-9

-

-

(2) Net of consolidation adjustments and minorities

Net extraordinary income (loss) 158 3 1 -1 -

1,245

1,124

2,370

-1,531

838

376

64.6

376

-790

-704

-160

-186

+2

36

RETAIL DIVISION: P&L

Interest income (incl. div.)


Total revenues



Net income

Cost/income ratio, %

Q/q% ch.

2Q05

Net provisions

mln

Net income for the Group(2)

Y/y% ch.


- of which: Other adm. expenses

- o/w: Net write-down of loans

619

572

1,191

-769

422

188

64.6

188

-387

-361

-76

-91

-1.2

+3.7

+1.1

+1.0

+1.3

+0.2

-6 bp

+0.6

-3.9

+5.6

-9.0

-4.0

+6.9

+19.4

+12.6

+2.8

+36.1

+43.3

-612 bp

+43.9

+0.6

+6.5

+4.4

+10.0

Net extraordinary income (loss) +3 n.m. -28.0

Y/y% ch.

1H05

1,245

1,124

2,370

-1,532

838

375

64.6

375

-790

-704

-160

-186

+9.2

+20.5

+14.3

+4.4

+38.3

+45.3

-614 bp

+45.3

+2.6

+7.7

+24.3

+29.2

+2 n.m.

37

2.8 3.0

RETAIL DIVISION - MORTGAGES AND CONSUMER FINANCING

RESIDENTIAL MORTGAGESSTOCK, bn NEW FLOWS, bn

CONSUMER FINANCING1H04 1H05

29.2

32.2+10.4%(2)

NEW FLOWS OF PERSONAL LOANS, mln

1H04 1H05

119 mln 122 mln

REVOLVING CARDS TOTAL SPENDING(3) (+179k revolving cards in 1H05)

DEC04

32.2

mkt share(1)

17.61% 17.71%16.60%(2)

(1) Group market share, related to mortgages to households as of Bank of Italy definition in table TDME0070 of the monthly bulletin(2) Excluding 3 bn securitisation, mortgage growth would be +20.5% y/y and market share 17.62%

1H04 1H05

512

942

+84%

1H04 1H05

4.14.2

+2.0%

1.01.1

UCB

UBCasa

+8.3%

-8.2%

STOCK, bn

1H04 1H05

2.3

3.3+44.7%

DEC04

2.8

(3) POS and ATM spending

38

RETAIL DIVISION - SMALL BUSINESS STOCK, SPREAD AND CUSTOMER ACQUISITION

STOCK, bn

1H05

SHORT TERM SPREAD(1)

1Q04

(1) Management accounts, includes also maximum overdraft charges

17.3+2.9% 8.08%

7.96%

2Q04

7.98%

3Q04

7.98%

4Q04

7.87%

1Q04

18,000

2Q04

19,000

3Q04

15,000

4Q04

17,500

QUARTERLY TRENDS IN SMALL BUSINESS CUSTOMER ACQUISITION

1Q05

1Q05

17,000

2004

16.6 7.59%

2Q051Q05

16.8

2Q05

19,000

39

DEC04

DEC04

1Q05

1Q05

58.2

66.9

33.5

21.8

16.8

3.04.9

15.7

29.4

+3.9%

+1.2%

+8.1%-2.7%

-4.5%

+4.4%

+0.5%

56.7

67.2

32.2

22.8

16.6

2.85.0

15.1

29.3

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(3) (Households), %

Other deposits

Households c/accounts

Bonds

EOP DEPOSITS, Euro bn UCB AVG. MARK-DOWN(3) (Households), %

(1) Includes short term and m/l term loans(2) Includes only households mortgages

UCB AVG. MARK UP(3) (Small Business), %

7.03

1Q04

1.65

5.60

7.08

2Q04

1.65

5.47

(3) Source: Bank of Italy matrix data

2Q05

2Q05

57.9

67.8

32.2

23.0

17.3

3.35.1

14.8

29.9

7.33

3Q04

1.67

5.55

+1.3%

7.21

4Q04

1.71

5.42

1Q04 2Q04 3Q04 4Q04

1Q04 2Q04 3Q04 4Q04

7.27

1Q05

1.70

5.43

1Q05

1Q05

7.30

2Q05

1.70

5.34

2Q05

2Q05

-1.6%

+2.9%

+10%+1.9%

-0.7%(+4.4% ex

securitisation)

40

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.

+31.6

+17.5

+21.8

-24.4

n.m.

+6.8

+3.5

2Q05

63

381

184

42

54

133

88

(3) Includes management fees related to underlying Mutual Funds

Q/q% ch.

-28.8

-1.5

+3.0

-6.0

+2.7

+12.2

+8.2

1H05

152

767

364

87

107

252

169

Y/y% ch.

+49.4

+22.5

+21.1

-24.3

n.m.

+12.2

+3.8

41

RETAIL DIVISION - DETAILS ON ASSET QUALITY

Provisions on performing loans 331 +1.2%

Coverage ratio 0.59% +1 bp


Weight on Net Loans 2.01% +4 bp



Weight on Net Loans(2) 3.93% +11 bp

Cost of risk(1) 56 bp +6 bp

1H05ch. on Mar 05

1H05ch. on 2004

(1) Annualised

-7.0%

1H04 1H05

446 415

REDUCTION OF NET FLOWS OF NEW DOUBTFUL LOANS(3) VS. 1H04


(2) Excluding the 3 bn mortgage securitisation, the weight of Total Net Doubtful Loans on Net loans would be 3.73%, down 9 bp Q/Q

42



Retail Division

Corporate Division


New Europe Division


AGENDA

43

CORPORATE DIVISION: 1H05 INCOME STATEMENT- BREAKDOWN BY COMPANY

Net Interest income (incl. div.)


Total revenues



Net income

TOTAL1UBI

Net provisions

(Euro mln)

Net income for the group


- of which: Other admin. expenses

Other companies

- o/w: Net write-downs of loans

639

309

948

672

-121

-154

-276

271

266

29%Cost/income Ratio

-187

-217

UBM LOCAT

-5

392

387

276

-56

-50

-111

169

167

29%

-1

-3

68

45

113

85

-11

-16

-28

43

45

25%

-10

-14

37

30

67

31

-17

-15

-37

19

24

54%

3

5

739

776

1,515

1,063

-206

-235

-452

502

501

29.8%

-196

-229

1 Balance due to roundings and elisions of infragroup dividends and goodwill amortisation

44

CORPORATE DIVISION: 1H05 INCOME STATEMENT



Total revenues

Operating costs (incl. depr.)

Operating income

Net income

Total net provisions

Taxes


Cost Income ratio, %

(Euro mln) 2Q05/1Q05 % ch. 2Q05

751

-231

520

-168

30.8%

-108

250

251

377

374

2Q05/2Q04 % ch.

-2.0

+3.8

-4.4

-1.1.

+171bp

-10.7

-1.1

-1.1

+4.0

-7.3

-7.9

+2.3

-11.7

-15.9

+304bp

-27.0

-17.6

-17.5

-2.5

-12.7

1H05 Y/Y % ch.

1,515

-452

1,063

-339

29.8%

-229

501

502

739

776

-1.5

+2.7

-3.2

-6.4

+126bp

-10.2

-7.9

-7.9

-2.6

-0.4

45

CORPORATE DIVISION - DETAILS ON ASSET QUALITY


NET FLOWS OF NEW DOUBTFUL LOANS1, (mln)

520

453

1H04 1H05

-12.8%

Weight on Net Loans

Provisions on performing loans 763 +2.1%

Coverage ratio 1.07% -2 bp


Weight on Net Loans 2.77% +4 bp



1.58% -4 bp

Jun05ch. on Mar05

Stated cost of risk (annualised) 54 bp -16 bp

Jun05ch. on 2004

46

(Euro mln)

Net interest income 317


Cost Income RATIO, %

139

29%

Net non interest income 165

Total revenues

Operating costs

Operating income

482

-142

340


Other net provisions

-98

-8

Of which:

118

- Trading profits 37

- Net commissions

UNICREDIT BANCA D’IMPRESA: 1H05 INCOME STATEMENT

2Q05/1Q05 % ch. 2Q05 2Q05/2Q04

% ch.

-1.4

+9.8

+59 bp

+13.7

+3.3

+5.4

+2.4

+8.6

-65.7

+22.0

-20.0

+1.1

+24.7

+151 bp

+2.3

+1.5

+7.0

-0.6

-27.7

+63.3

+23.3

-40.6

639

266

29%

309

948

-277

672

-187

-30

215

84

Y/Y% ch. 1H05

+0.9

+9.2

+83 bp

+3.7

+1.8

+4.8

+0.6

-20.1

n.s.

+15.5

-22.3

47

UBM: 1H05 INCOME STATEMENT

(Euro mln)

Total revenues

Staff costs

Other costs (incl. depr.)

Operating income

Net income

C/I Ratio

180

-20

-35

125

75

31%

Net extraord. income 2

Taxes -47

2Q05/1Q05% ch. 2Q05 2Q05/2Q04

% ch.

-12.6

-30.6

+33.8

-17.1

-18.4

+381bp

n.s.

-20.2

-27.5

-26.5

+5.1

-33.5

-53.4

619 bp

-95.9

-46.8



7

173

-156.1

-20.9

n.s.

-30.1

387

-50

-62

276

167

29%

3

-107

Y/Y% ch. 1H05

-11.8

-11.7

+3.4

-14.7

-31.5

+236bp

-95.1

-25.4

-6

392

-13.0

-11.9

48



Retail Division

Corporate Division


New Europe Division


AGENDA

49

PRIVATE & AM DIVISION: 1H05 INCOME STATEMENT – BREAKDOWN BY COMPANY



Total revenues


Operating income

Net income

Cost/Income Ratio




- of which: other admin. expenses

(Euro mln)


TOTAL DIVISION2

54

588

642

-369

-176

-181

272

-7

206

199

57.5%

5

UPB +

Subsidiaries

37

141

178

-113

-67

-44

65

-3

36

36

59.7%

10

8

414

422

-196

-97

-92

226

-1

183

176

46.5%

4

7

32

39

-58

-11

-44

-19

-3

-14

-14

n.s.

1

PGAM Group1 UniCredit Xelion Banca

2

1

3

-2

-1

-1

1

0

1

1

n.s.

0

UC Luxemburg

1 The Net Income and Net Income for the Group lines of PGAM Group are gross of goodwill amortisation

2 Balance due to rounding and elisions of intra-group dividends and goodwill amortisation

50

PRIVATE & AM DIVISION: 2Q05 AND 1H05 INCOME STATEMENT



Total revenues

Operating costs (incl. depr.)

Operating income


Net income


Taxes


Cost Income ratio, %

2Q05/1Q05 % ch. 2Q05

330

-189

141

-34

57.3%

5

-5

103

107

27

303

1H052Q05/2Q04 % ch. Y/y % ch.

+3.2

+2.1

+4.7

+7.0

-62 bp

n.s.

n.s.

+4.3

+4.1

-1.0

+3.6

+14.1

-0.3

+41.4

+200.3

-826 bp

-46.8

n.s.

+10.5

+10.1

+11.4

+14.3

642

-369

272

-64

57.5%

5

-7

199

206

54

588

+12.8

-0.4

+37.5

+58.2

-763 bp

-40.8

n.s.

+25.1

+25.7

+9.5

+13.1

(Euro mln - Data at current FX, % ch. at fixed FX)

51

1 Including Repos

PRIVATE & AM DIVISION: DETAILS ON TOTAL FINANCIAL ASSETS Y/Y AND 2Q/1Q TRENDS

(bn - data at constant FX)

Securities in custody

Direct deposits1

AUMs

PRIVATE & AM DIVISION TOTAL FINANCIAL ASSETS

+4.7%+16% Y/Y

Jun04

5.9

26.9

130.2

6.8

29.9

143.8

163180.5

7.4

31.9

149.7

189

Mar05 Jun05% weight of AUM products 79.279.779.9

521 Balance due to rounding

Italy

New Markets

92,809

3,702

TOTAL PIONEER

Alternative Investments3

129,614

3,830

3,435

795

4,642

301

US 25,032 -286

International (ex-Italy) 7,889

699

AuM as at 31.12.2004

US in USD 34,0963 -362

100,342

4,869

142,580

4,363

27,841

9,529

AuM as at 30.06.20051

33,6653

AuM as at 31.08.052

103,415

28,113

10,449

5,175

147,152

4, 359

34,292

1H05 Net sales

PIONEER GROUP: DETAILS ON NET SALES AND AUM TREND (Jan05-Aug05)

2 Provisional figures; balance due to Market Performance (including FX effect)

4,098

845

8,323

231

3,095

285

-69

1,651

233

2,342

-41

-187

644

-227

Net sales Jul-Aug.05

1H05 Mkt. Perf. (mln - Data at end of period FX)

53

Finanza & Futuro

RasbankCredem + Euromob.7,617Credem + Euromob.

1 Calculated on average PFAs2 AUMs, Securities in Custody, Bancassurance and liquidity3 Ranking taking into account only the 10 largest Italian players by Total Financial Assets as at 30.06.2005

Source: Assoreti

Net Inflows:788 Mln,3rd in Italy

Data as at 30.06.05 – Mln

TOTAL NET INFLOWS 2 & 3

Xelion 788

Mediolanum 730

Azimut 910

Banca Generali 1,001

329

Credem + Euromob. 484

409Rasbank

Fideuram + SPI 345

Data as at 30.06.05

1,965 PFAs,5th in Italy

NUMBER OF PFAs

Fideuram + SPI 4,155

Mediolanum 3,980

3,668

Banca Generali 4,906

Finanza & Futuro 1,098

Bipielle Network

1,078

Banca SAI 1,481

1,125

Tot. Fin. Assets:~13.4 bn,5th in Italy


TOTAL FINANCIAL ASSETS

Fideuram + SPI 61,094

Mediolanum 22,583

Rasbank 20,032

10,114Azimut

8,008

Xelion 13,401

16,761

Fineco 6,945

Net Inflows per PFA1:3rd among Top-

Players


NET INFLOWS PER PFA 2 & 3

Azimut 1.01

Xelion 0.39

Credem + Euromob. 0.45

0.23

Mediolanum

0.20

Finanza & Futuro

0.08

0.00

Fideuram + SPI

-0.09

Banca Generali

0.18

XELION: SECOND BEST PLAYER IN NET SALES(14% MARKET SHARE) AND GOOD PRODUCTIVITY PER PFA

Rasbank

Xelion 1,965

Fineco 1,445

Fineco

Fineco

Banca Generali

Bipielle Network -0.05Bipielle Network 4,379

-55

Finanza & Futuro -94

Bipielle Network

54



Retail Division

Corporate Division


New Europe Division


AGENDA

55

2.6%(1)

2.3%(1)

(Euro mln)

Net interest income(2)


Total revenues

Operating Costs(3)

Operating income

Net write-down of loans


Net income


Taxes

(4) Including provisions to reserve for general banking risk

(2) Including dividends

(3) Including depreciation

%ch. at unchanged FX

7.2%(1)

40.5%(1)

22.2%(1)

21.2%(1)

(1) Weight of the bank Total Revenues in 1H05 on Division Total Revenues – only UCI’s portion; balance due to UniLeasing Romania, UniLeasing Bulgaria and Xelion Poland


Tax Rate (%)

NEW EUROPE DIVISION % ch. on 2Q04

+4.2

+42.4

+18.5

+3.1

+37.2

+12.9

n.m.

+35.4

+12.3

n.m.

+30.3

+8.3 pp

3.5%(1)

BREAKDOWNOF REVENUES

ITAS

2Q05

310

253

563

-269

294

-38

2

206

-2

-50

135

19.8

% ch. on 1Q05

+3.8

+35.7

+16.0

+4.0

+29.8

+28.2

-29.8

+33.5

-49.0

+21.6

+27.2

-1.5 pp

1H05

609

439

1,048

-527

521

-68

5

359

-7

-92

241

20.5

y/y % ch.

+5.2

+26.5

+13.2

+4.6

+23.5

-3.8

n.m.

+27.8

n.m.

+43.8

+26.2

+1.8 pp

Cost of Risk (bp) 84 -6 bp

ROE (%) 21.2 +2.1 pp

Cost/Income ratio (%) -7.1 pp47.8 -5.4 pp 50.3 -4.1 pp

NEW EUROPE DIVISION: 2Q05 & 1H05 INCOME STATEMENT

56

NEW EUROPE DIVISION: 2Q05 & 1H05 TREND IN VOLUMES

ITAS

% ch. on

Mar05

Jun05(Euro mln)

% ch. on

Dec04

Net Customer Loans

- o/w Pekao

Mortgages(1)

+6.3

+5.2

+11.7

+7.4

+5.6 +23.7

16,238

6,796

2,355

- o/w Pekao LC +9.2 +54.6663

- o/w Pekao

Mutual Funds(2)

+0.6 +1.9

+11.2 +28.2

Deposits +1.4 +0.923,936

10,992

6,347

- o/w Pekao(3) +11.4 +26.34,063

NET CUSTOMER LOANS 2Q05/1Q05: KFS +11.6%, Zaba

+5.0%, Bulbank +1.6% Jun05/Jun04: Bulbank +64.8%, KFS

+33.5%, Zaba +19.4%

(3) Pioneer Pekao Investment Management

At unchanged FX

MUTUAL FUNDS in PEKAO: Market share(3): to 36.4 up 4.1 pp y/y

(1) Management accounts in LAS

(2) New Europe Business Area of Pioneer is included at current FX

57

NEW EUROPE ASSET QUALITY

Net NPLs and Doubtful Loans as % of Total Net Loans 85.1

Mar05 Jun05

86.0

71.9 73.5

Coverage ratios (%)

On Gross Doubtful Loans

On Gross NPLs

Net NPL/ Loans %

Jun05

Total NE -0.72.2

ch. on Mar05 (pp)

Net Doubtful/Loans %

Jun05

ch. on Mar05 (pp)

5.0-0.3

At unchanged

FX

Zaba -0.41.6 2.5-0.3

Unibanka -1.53.1 4.0+0.1

Pekao -0.93.1 6.4-0.4

Bulbank 0.2 -0.41.1-

KFS -0.21.7 4.3-0.4

Cost of risk(1)

-6 bp

(bp, annualised)

90 84

1H052004

(1) Calculated as Net Loan Loss Provisions on Net Customer Loans at period-end, 1H05 data annualised

ITAS

58

Interest margin (incl. div.)


Total revenues



Net income

ROE

Cost/income

TOTAL(1)

609

439

1,048

-527

521

359

21.2%

50.3%

Net provisions -75

(1) Balance due to roundings, other small companies & adjustments to be ITAS compliant

(Euro mln)

(UCI stake)

Net income(3) (UCI’s portion) 241

- of which: Staff costs -267

- of which: Other costs -187

NEW EUROPE DIVISION: 1H05 RESULTS BREAKDOWN BY BANK

- o/w: Net write-down of loans -68

UNI BANKA (77.2%)

11

13

23

-19

5

7

17.5%

79.3%

0

6

-9

-8

+1

BULBANK (86.1%)

37

21

58

-20

38

21.2%

33.9%

-6

27

23

-8

-8

-4

Group PEKAO (52.9%)

297

235

532

-280

252

20.9%

52.6%

180

-29

112

-145

-96

-29

130

50

180

-103

77

46

13.0%

57.0%

-20

38

Group ZABA

(81.9%)

-55

-33

-17

9

7

16

-13

3

2

6.2%

80.0%

-6

-5

-1

2

-1

116

38

155

-65

90

51

25.4%

41.9%

-34

-24

-19

51

KFS(2) (50.0%)

-17

(2) Consolidated with proportional method (50%)

15

10

25

-21

4

3

6.2%

82.4%

-9

-8

0

3

Zivno (96.6%)

0

UniCredit Romania (99.9%)

ITAS

Banks’ data gross of consolidation adjustment

(3) Net of consolidation adjustment

59

VERY GOOD PERFORMANCE OF NE BANKS IN 1H05

PEKAO

Revenue growth (+3.1% y/y, +7.0% q/q) thanks to good performance of net interest income (+4.1% y/y, +6.3% q/q), benefiting also from significant lending growth: +8.9% y/y, +5.2% q/q (o/w mortgages(1) +54.3% y/y, +9.2% q/q & consumer loans +16.6% y/y, +31.2% q/q)

Stable costs with improved efficiency (C/I to 52.6%, -1.6 pp y/y) Lower cost of risk: -33 bp vs. Dec04 to 85 bp(2) and improved doubtful loans coverage ratio (+1.8

pp q/q to 78.7%) Further growth in Mutual Funds (+45.7% y/y, +11.4% q/q)

ZABA

Operating income: +9.6% y/y, mainly thanks to mark to market of securities portfolio Cautious provisioning policy Further lending growth: net loans +19.4% y/y, +5.0% q/q (o/w mortgages(3) +14.9% y/y, +2.8% q/q,

consumer loans(3) +33.0% y/y, +3.9% q/q) Improvement in Mutual Funds: +55% y/y, +18% q/q

KFS

Strong lending growth: net loans +33.5% y/y, +11.6% q/q, with positive impact on net interest income (+17% y/y, +6.1 q/q)

Lower negative impact of monetary loss (+10 mln y/y) Focus on retail products: Mutual Funds +23% y/y, +6% q/q; ~51,000 cards and ~14,000 C/A

packages sold in 2Q05

(1) Management accounts in LAS, only LC

All figures stated at unchanged FX

(2) 1H05 data annualised

(3) Management accounts in LAS, only bank

60

CONSOLIDATED INCOME STATEMENT: PEKAO


(1) Including dividends(2) Including depreciations

(Euro mln)



Total revenues

Operating costs(2)

Operating income



Net income


Taxes

% ch. on 2Q04

2Q05

156

119

275

-141

134

-14

-1

100

-0

-54

% ch. on 1Q05

+10.1

+3.2

+7.0

+0.6

+14.5

-8.5

+58.0

+24.1

n.m.

+34.7

+9.2

-0.7(5)

+4.7

-0.5

+10.7

-14.6

-92.6

+10.9

-93.9

n.m.

ITASData gross of consolidation adjustment

1H05

297

235

532

-280

252

-29

-1

180

-0

-42

y/y % ch.

+5.7

-0.1(6)

+3.1(7)

0.0

+6.8

-27.7

-84.4

+11.6

-94.2

+72.8

Net income for the Group(4) 69 +60.9 +44.2 112 +29.9

(4) Net of consolidation adjustment

ROE 20.9% -0.1 pp

Cost of Risk 85 bp -33 bpCost/Income 51% -3.2 pp -2.7 pp 52.6% -1.6 pp

Tax Rate 17% -4.5 pp +12.7 pp 18.8% +5.8 pp

(7) +5.4% without “one off items” in 2004

% ch. at unchanged FX

(5) +9.4% without “one off items” in 2004(6) +5.0% without “one off items” in 2004

61


(1) Including dividends(2) Including depreciations

(4) At unchanged FX

CONSOLIDATED INCOME STATEMENT: ZAGREBACKA

ITAS

(Euro mln)



Total revenues

Operating costs(2)

Operating income



Net income


Taxes


% ch.(4) on 2Q042Q05

66

30

95

-53

42

+14

+1

23

-0

-6

19

% ch. on 1Q05(4)

+2.6

+43.4

+12.5

+7.4

+19.6

n.m.

n.m.

-2.4

-89.8

-7.7

0.0

-0.6

+73.5

+14.5

-3.0

+48.3

n.m.

n.m.

+13.4

n.m.

+6.6

+14.0

1H05

130

50

180

-103

77

-17

+1

46

-3

-12

38

y/y % ch.(4)

-0.2

+16.2

+3.8

-0.1

+9.6

+55.5

n.m.

-8.0

n.m.

-3.1

-7.6

Data gross of consolidation adjustment (excluding Net Income for the Group that is net)

62



Retail Division

Corporate Division


New Europe Division


AGENDA

63

Reserve for loan losses

Deferred taxes

NEGLIGIBLE IMPACT OF IAS ADOPTION ON 2004 CONSOLIDATED NET INCOME

31-12-04Net Income

ITAS

31-12-04 Net Income

IAS

mln

2,131 2,069

Goodwill

Fixed assetsReserve for

General Banking

Risks Reserve for risk &

charges

Employee benefits

Other

NON RECURRING IMPACT OF IAS TRANSITION = -281 MLN

283 -16

-46

-30-125

-24

-149+45

1H05 CONSOLIDATED RESULTS Alessandro Profumo - CEO

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