2004 CONSOLIDATED RESULTS Alessandro Profumo - CEO

2004 CONSOLIDATED RESULTS

Alessandro Profumo - CEO

Milan - March, 15th 2005

2

2004 ACHIEVEMENTS

Strengthened competitive positioning in Italian banking (market share on loans(1): +37 bp y/y)

Revenue mix enhances stability and predictability of earnings: interest income excl. dividends up 3.7% y/y

A well diversified business portfolio supports profitability (New Europe net income: +29% y/y, Private & AM net income: +59% y/y)

Improved profitability (Net Income: +8.7% y/y)

Effective cost management (headcount down 677 on Jun04)

Strong volumes growth (AuM: +9.0% y/y, Loans: +10.8% y/y) provides a sound platform for 2005

(1) Pro-forma, including 2.5 bn relative to the Locat securitisation and 0.5 bn relative to the District Bonds

3

A YEAR OF IMPROVED PROFITABILITY 4Q04 BEST QUARTER OF THE YEAR

Total Revenues

Euro mln

10,375

2,131

0.336EPS(2) (Euro)

0.205

-0.7%

+8.7%

+0.026

+0.034

Operating Income

Net Income

FY04 Y/Y ch.

DPS(3) (Euro)

4,434 -5.8%

17.9%ROE(1) +20 bp

+5.3%

+65.0%

% ch. on 4Q03

+9.6%

2,679

627

4Q04

1,124

(1) Calculated on end of period net equity excluding profit for the period(2) N° of shares in 2004 net of 87 mln of treasury stock

(3) To be proposed to the AGM

7.35% +38 bpCore Tier I ratio

4

ENHANCED QUALITY OF REVENUES – NET INTEREST INCOME UP

4Q03

New Europe

Italy

Avg. Euribor

1,140

885

255

3Q04

2.38%

1,217

943

274

NET INTEREST INCOME excl. Dividends

1,304

981

323

4Q04

2.11%

Strong interest income growth despite unfavourable interest rate environment

Good acceleration Q/Q both in Italy and New Europe

Sustained volume growth driving net interest income

2003

4,746

3,709

1,037

4,920

3,794

1,126

2004

+3.7%

+2.3%

+8.6%

+7.2%

+4.1%

+18.0%

+14.4%

5

10.74%

10.88%10.83%

10.26%

11.06%11.03%

10.80%

10.70%

Jun03 Dec03 Jun04 Dec04

STRONG VOLUME GROWTH - GAINING MARKET SHARE WHILE MAINTAINING PRICING PREMIUM

Total loans(3) up 7.6% y/y,

Retail: +16.2% y/y driven by mortgages and consumer credit

Corporate: +0.1% y/y, +4.9% gross of securitisations (Locat and district bonds)

New Europe: +18.6% y/y (+10.6% at unchanged FX)

Stable lending spread y/y (3.82% vs 3.84%) with increasing pricing premium vs industry (53bp vs 38bp y/y)

UCI LENDING MARKET SHARE IN ITALY

(2) Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos)(3) Net of repos

On M/L term loans (2)

On total loans (2)

11.11%(1)

Pro-forma on total loans (2) ex securitisations


6

LOWER PROPORTION OF UP-FRONT ADDS TO STABILITY OF EARNINGS

92158 85649 404

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

NET COMMISSIONS (Euro mln)

Up-front(1)

Other

Weight of Up-front on Total (%)

869

10.6

4Q04

777

857

4Q03

699

18.4

3Q04

11.1

682

767

Total net commissions substantially stable y/y, with improved quality

Other net commissions growth key drivers: Fees on guarantees given & loans, +9.5% y/y Fees on segregated accounts & mutual funds (excl. up-front), +11.0% y/y

Increasing trend in 4Q04 mainly driven by corporate transaction services and AUM growth

-0.5%

19.6 12.3

3,307 3,289

2,6582,885

2003 2004

+8.5%

-37.7%

+1.4%

+13.3%

+8.3%

+13.9%

7

ENTERING 2005 WITH TOTAL ASSETS UNDER MANAGEMENT AT RECORD HIGH

UCI TOTAL AUM(bn)

Dec03

UCI mkt. share3 13.39%

Dec04

13.76%

UCI the only market share gainer among the big Players in Italy

High value added inflows of hedge funds worldwide: 1,431 mln, +48% y/y

(1) +2.1% Dec04/Sep04 % change and +7.1% Y/Y % change net of SAFECO AM acquisition completed in 4Q04

Sustained out-performance of the Italian mutual fund market in net sales in 2004

(3) Calculated according to the “old” classification methodology adopted by Assogestioni (pro-forma data for all market players adopting the “new” Assogestioni methodology not available yet)

123

Dec04

128

Sep04Dec03

117+4.9%

+3.9%1

+9.0%1 vs Dec03

Exploiting the value of being a global player: +21.9% y/y growth of AUM in the international business units2

(2) US + New Europe + International (ex Itlay)

Stability of pricing over the last year

Italy

International2 31

3538

86 88 90

+21.9% vs Dec03

+4.6 vs Dec03

8

145

INCOME FROM FINANCIAL TRANSACTIONS(mln)

REDUCED WEIGHT OF DERIVATIVES ON CONSOLIDATED REVENUES

4Q03

Of which: Derivatives1

239

184

3Q04

233

99

4Q04

173

2003 2004

1,287

993

1,070

694

-22.8%

-35.1%

Derivatives penalised by extraordinary 2003 results and by the transition of Corporate Derivatives market to the maturity phase

-27.9%

-25.7%

-31.3%

Expected stabilisation of consolidated income from financial transactions around 2004 levels

(1) Corporate + Institutional + Retail Derivatives

9

EFFECTIVE COST MANAGEMENT (+2.2% Y/Y AND -1.2% 4Q04/4Q03 AT CONSTANT FX)

OPERATING COSTS BREAKDOWN

(mln)

Personnel costs

2003 2004

3,280 3,388

1,972

490

Other admin. expenses

Depr. & amort.2,081

472

4Q04

840 859

501

122566

130

3Q04

834

533

150

4Q03

Head count reduction well in progress (-677 from Jun04 to Dec04). Benefits will accrue in 2005

1,517 1,4631,555

5,7425,941

+6.3%

+13.0%

+2.3%

+2.5%

+6.6%

+3.5%

+5.5%

+3.3%

-3.7%

Operating costs up 3.5% y/y (up 1.7% at costant fx and adjusted for ANBI)

+1.7%

+3.2%

+1.7%

Adjusted by FX effect and acquisition of ANBI

-4.1%

TOTAL COSTS

Personnel costs up 3.3% y/y including new labour contract (up 1.7% at costant fx and adjusted for ANBI)

10

GLOBAL BANKING SERVICES: DELIVERY ON PLAN TARGETS

UPA: first steps in Romania (35 people hired in 1Q05 in training process)

ICT synergies (approx. 10 mln cost savings from insourcing in 2005)

Real estate rationalisation (sale of non core assets in 2004, 128 UCB branches to be closed in 2005)

Legal entities reduction (C. R. Carpi and Banca dell’Umbria to be merged into UCI banks in 2005)

Staff downsizing (-727 vs 1H04) well on track

2004

39,858 39,368

1H04

-727

Italy

39,131

Feb05

11

Stated cost of risk

Provisions on performing loans 1,307 -1.6%

Coverage ratio 0.96% -5 bp

Gross Doubtful Loans 9,469 +1.7%

63 bp -1 bp2

Weight on Gross Loans 6.47% -13 bp

mln, where not specified

Gross Non Performing Loans 6,586 +2.1%


(2) Calculated on FY03 cost of risk (76 bp) net of extraordinary provisions on Parmalat (12 bp)

2004ch. on 2003

Dec04ch. on Sep04

ASSET QUALITY: SIGNIFICANT REDUCTION OF NET FLOWS OF NEW DOUBTFUL LOANS

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

Limited growth of gross doubtful loans (+1.7% q/q and +6.3% y/y)

Increased coverage ratios on doubtful loans:

Cost of risk at 63 bp (of which 16 bp for provisions on performing loans), in line with 2003 net of Parmalat2

60.2% on NPLs (vs 59.7% as of Dec03)

48.2% on total doubtful (vs 47.1% as of Dec03)

1.3 bn provisions on performing loans (+116 mln vs Dec03)

190

2003

2,208

2004

1,925 -12.8%Of which: Parmalat

-4.6% ex Parmalat

NET FLOWS OF NEW DOUBTFUL LOANS1, (mln)

12

MAIN NON OPERATING EFFECTS IN 2004

Lower tax rate mainly due to tax-free extraordinary gains, positive effects of “tax calculation on consolidated P&L”

Tax rate from 39% to 32%

Restructuring charges fully expensed in 2004 -246 mln

Release of provisions for general banking risks +130 mln

Extraordinary gains to offset restructuring charges

Deferred taxes

Disposal of real estate

+155 mln

+132 mln

EFFECT

Provisions to “future charges related to shareholdings” -73 mln

13

PERFORMANCE VS. 2007 STRATEGIC PLAN

62(1)

(2) Pro-forma, excluding Parmalat provisions

% weight of up-front revenues

2003

12.5

2007

6.7

Italy, total lending mkt share, %

2003

10.74

2007

12.60

2004(1)

Cost Income ratio, %

2003

55

2007

50

Cost of risk, pb

2007

60

2004

57.3

2004

7.8

11.11

2003

76

2004

63

64(2)

Further reduction of weight of up-front revenues on total (wealth management and derivatives)

Customer satisfaction as a driver for market shares increase

Processes

Revenues

Service to customers

Process redesign leading to efficiency improvements

Assets Cost of risk reduction


14

17.5%

17.1%

41.6%

23.9%

RETAIL DIVISION CORPORATE DIVISION

PRIVATE & AM DIVISION NEW EUROPE DIVISION

GROUP RESULTS BENEFITING FROM BUSINESS DIVERSIFICATION

CONTRIBUTION TO GROUP NET INCOME BY DIVISION

y/y % ch.

949Corporate -2.7%

545Retail -6.7%

2,131TOTAL GROUP +8.7%

398New Europe +29.2%

CONTRIBUTION TO GROUP NET INCOME PRE CORPORATE CENTRE AND ELISIONS

390Private & AM +58.5%

mln

15

CAPITAL ALLOCATION – DIRECTING CAPITAL TO HIGHER-RETURN BUSINESSES

(1) End of period, net of minorities (3) Pay-out ratio: 60%

2004 RORAC(4)

36.9%30.8%

19.8%17.4% 17.7%

Private & AM

NE Retail Corporate Group

Cost of equity 8.58%

ABSORBED CAPITAL(1)

Total Group 9.6 bn

2003

+2.5

y/y % ch.(2)

9.8 bn

2004

Retail

51.3% +0.9

28.9%

NE

27.7% +10.0

12.9%

Corporate

12.4% +9.3

49.1%

Private & AM 8.6% +12.09.1%

Divisional weight

Excess Capital(3) 0.2 bn 0.8 bn

Ma

rgin

al

RA

RO

RA

C

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

16

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

(1) Management accounts

(2) Management accounts, includes also maximum overdraft charges

630596

557 547563 570 593

612

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04

STEADY GROWTH OF NET INTEREST INCOME (ex dividends)

Mortgages +22.9% y/y

Consumer credit +31.2% y/y

Small Business +10.8% y/y

4Q average spread(1) on:new mortgages at 1.28% for UCB (stable q/q) and

1.43% for UBCasa (-3 bp q/q)small business(2) s/term loans at 8.37% (+5 bp q/q) revolving cards at 10.62% (+6 bp q/q)

EXCELLENT LENDING GROWTH, +16.4% Y/Y GOOD PRICING RESILIENCE IN ALL KEY MARKETS

Avg. Euribor 2.46%

2.78%

2.14% 2.09%2.16%

2.09% 2.11% 2.15%

17

-610 vs. June 04

RETAIL DIVISION OPERATIONAL ACHIEVEMENTS

1H04

25,467

2004

25,136

TOTAL STAFF

EFFECTIVE COST MANAGEMENT ALREADY TANGIBLE…

HIGH FOCUS ON WEALTH MANAGEMENT PRODUCTS GENERATING RECURRING REVENUES

2003

0.1

2004

3.5

SALES OF SEGR. ACCOUNTS INVESTING IN FUNDS, bn

GOOD CUSTOMER SATISFACTION POSITIVELY IMPACTING CHURN RATE

UniCredit Banca:

70,000 Small Business customers acquired

30,000 net new Small Business customers

… WITH BENEFITS FROM STAFF REDUCTION EXPECTED IN 2005

2002(1)

2,956

2003(1)

2,930

OPERATING COSTS, mln

2004

2,957

FEB 05

24,857

(1) Pro-forma to make perimeter comparable with 2004

18

CORPORATE DIVISION: NET INTEREST INCOME GROWTH DRIVEN BY HIGHER LOANS AND RESILIENT SPREAD

(2) Only UBI + UBMC (Source: BankIT Matrix)(3) Calculated on SMEs + Other corporate. Discount the securitisation of ~500 mln for Neafidi and Eurafidi

district bonds. Share of wallet at ~12.6% adding back these amounts

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

(1) Of which ~12 mln recovered as “Other income”

2003 2004

1,4211,486 +4.6%

23.4

TOTAL LOANS (ex Repos), (bn)

Dec03

62.8

Dec04 (Gross of

securitisations)

65.9 +4.9% y/y

Of which: M/L2

25.6 +9.2% y/y

3

Securitisations

Loan growth impacted by securitisations for ~3 bn (2.5 bn Locat in 4Q and 0.5 bn district bonds in 1Q & 4Q); y/y growth at 4.9% gross of securitisations

Significant contribution of M/L term lending

UBI share of wallet at 12.4%3 (vs 12.3% as at Dec03)

Higher lending spreads for UBI (2.34% Avg. 2004, +8 bp y/y)

356

387360

4Q03 3Q04 4Q04

+1.1%

-7.0%

4Q negatively impacted by Locat securitisation (~22 mln1)

19

HIGH FOCUS ON SERVICE REVENUES

NET COMMISSIONS, (mln)

2003 2004

571604 +5.8%

143131

157

4Q03 3Q04 4Q04

+9.4%

+19.4%

Foreign trade services: 135 mln, +24.1% y/y

Transaction services: 71 mln, +7.8% y/y

Commercial focus on most recurring service-revenues:

More balanced revenue composition for UBM

Derivatives still main source of revenues for UBM (~75%) …

… with a more balanced mix: higher weight of Institutional …

… and lower weight of Corporate Derivatives

20

Dec04

… with increased market shares:

PRIVATE & ASSET MANAGEMENT DIVISION: SIGNIFICANT GROWTH OF TOTAL FINANCIAL ASSETS LEADING TO HIGHER REVENUES

Strong Tot. Financial Assets growth (+12.0% y/y1, up to 172 bn) …

All figures at unchanged FX(1) 10.3% net of SAFECO AM acquisition, completed in 4Q04

… driven by good net sales …

Asset Management: 3.5 bn

Asset Gathering: 8 bn2, of which 1.2 bn of AM products

Italy – Mutual Funds 13.76%

Poland – Invest. Funds 34.46%

Xelion – Net Sales4 25.23%

(4) Assoreti perimeter(2) Of which 4.9 bn related to relevant equity investments transferred under UPB’s custody

2003 2004

1,085

1,167

91

78

+7.5%

TOTAL REVENUES (bn)

Up-front fees

Net Commissions (ex up-front fees)

Other revenues

912815

179

177 -1.1%

-13.5%

+11.9%

Same growth than Total Financial Assets = stability of pricing

Dec03

13.39%

30.36%

13.66%

Asset Management: +10.0% y/y, up to 130 bn

Asset Gathering: +11.2% y/y, up to 66 bn

… and excellent performances … 32nd percentile rank on average worldwide for Pioneer “long funds”

24th percentile rank for mutual funds sold in Italy3 vs Italian peers

(3) Calculated on the aggregate Italy + Luxemburg domiciled Pioneer branded mutual funds

21

ENHANCED EFFICIENCY AND STRONG OPERATING INCOME PERFORMANCE

All figures at unchanged FX

Improved efficiency, exploiting economies of scale

Operating Income: 4Q04 best quarter since P&AM Division inception

Net income up to 390 mln (+61% y/y) also positively impacted by extraordinary items and lower taxes

68 mln extraordinary gains (of which ~60% related to deferred taxes)

Tax rate -14.5 pp (to 16.4%) mainly due to benefits from fiscal consolidation and tax-free extraordinary gains

C/I RATIO, %

3Q04 4Q04

63.759.9 -374bp

2003 2004

64.163.2 -77bp

OPERATING INCOME (mln)

3Q04 4Q04

99135 +36.9%

2003 2004

390 429 +9.8%

22

GOOD LENDING GROWTH: +10.5% Y/Y (+18.5% at current FX)

GROWTH IN MUTUAL FUNDS DRIVING HIGHER REVENUES AND GAINS IN MARKET SHARE

All figures stated at unchanged FX

(1) Management accounts in LASITAS

2004

1,647

2003

Mortgages(1) (Euro mln)

2,104

+27.8%

2004

281

2003

Leasing (Euro mln)

385

+36.7%

2004

1,854

2003

Consumer credit(1) (Euro mln)

2,056

+10.9%

2004

3,566

2003

Mutual Funds(2) (Euro mln)

4,835

+35.6%

2004

628

2003

Net non interest income

(Euro mln)

681+8.4%

2004

30.4%

2003

Market share (PPIM(3))

34.5%+4.1 pp

NEW EUROPE DIVISION: SIGNIFICANT VOLUME GROWTH

(3) Pioneer Pekao Investment Management

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

23

CONSTANT IMPROVEMENT IN ASSET QUALITY

NET INCOME POSITIVELY IMPACTED BY LOWER TAXES

HIGHER OPERATING INCOME: +6.6% Y/Y

ITAS

2004

1,751

2003

Total Revenues (Euro mln)

1,835

+4.8%

2004

56.0

2003

Cost/income (%)

55.2-0.8 pp

2004

122

2003

Cost of risk (bp)

89-33 bp

2004

64.1%

2003

Coverage ratio of doubtful loans

70.8%

+6.7 pp

2004

25.3

2003

Tax rate (%)

17.6-7.7 pp

2004

324

2003

Attributable Net income (Euro mln)

398+22.8%

GOOD ECONOMIC PERFORMANCE COUPLED WITH IMPROVED ASSET QUALITY


24

NET INCOME FOR THE GROUP

y/y % ch.

167Pekao +39.6%

102Zaba +10.6%

NE Division

73KFS +25.5%

56Others +5.7%

PEKAO, ZABA & KFS INCREASE THEIR WEIGHT IN THE GROUP

PEKAO Strong volume growth (mortgages(1) +80.6% y/y,

mutual funds(2) +28.9% y/y) Focus on revenues from services (net non interest

income +13.8% y/y) Improved asset quality (net doubtful loans -36% y/y) Lower tax rate (statutory and one-off)

ZABA Increased volumes (net loans +8.3% y/y, deposits

+10.4% y/y) Good asset quality (net doubtful loans -25.8% y/y) Launch of new products in corporate (mainly cash

management & leasing) and in retail (196,000 new C/A packages)

KFS Higher quality of revenues through fee generating

products (+15% mutual funds stock, 245,000 new cards, 6.800 new C/A packages)

Decreased cost of risk (to 179 bp from 282 bp in 2003) Strong increase in n° of clients (approx. +158,000)

(1) Management accounts in LAS, only LC(2) Pioneer Pekao Investment Management


398 +22.8(3)%

(3) +29.2% at current FX

25

2005 PRIORITIES: HOLDING THE BAR TO ACHIEVE 3-YEAR PLAN TARGETS

Building on 2004 achievements:

Growth in market shares in lending and financial assets to drive revenue growth:

Higher lending volumes in mortgages, consumer credit, small business in Italy and New Europe

Increase share of wallet of corporate customers while enhancing service revenue contribution

Leveraging on AM division global presence to increase AuMs

Cross-selling of asset gathering products to existing small business customers

Deliver efficiency improvement in line with 3-year plan

Strict control of cost of risk

Active Capital Management driving value creation and total shareholder return

2004 RESULTS - ANNEXES

27

AGENDA

Group

Divisional Reporting

Retail Division

Corporate Division

Private & AM Division

New Europe Division

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

provisions for possible loan losses and provisions to reserve for general banking risk

4Q04 & FY04 CONSOLIDATED INCOME STATEMENT

Net extraordinary income


Total revenues

Operating income

Provisions on loans

Administrative costs (incl. depr.)

Other net provisions(1)

Goodwill depr.

(Euro mln)

Minorities

Taxes

% ch. on 4Q03

Net interest income (incl. div.)

- of which Dividends

-3.7

+5.3

-41.7

-61.9

+2.5

+9.6

-23.5

+1.7

+54.5

-32.5

+15.2

% ch. on 3Q04 4Q04

1,277

2,679

-1,555

1,124

-231

61

-91

-61

-34

-141

1,402

98

+5.1

+7.5

+4.1

+10.9

+6.3

+9.1

n.m.

-15.3

-32.0

-46.6

+9.7

+60.7 +27.3

y/y % ch. FY04

5,175

10,375

-5,941

4,434

-891

218

-149

-276

-169

-1,036

5,200

280

Net income +65.0627 +37.8 2,131 +8.7

-5.3

-0.7

-6.9

+1.4

+3.5

-5.8

-46.8

+4.5

+36.3

-22.4

+4.3

+16.2

29

Retail Division

Corporate Division

Priv.& AM Division

NE Division

Total Group(1)

Total revenues+6.0% -3.3% +18.2% +16.4% +7.5%

Operating costs

Operating income

Net write-downs of loans

Net income for the Group

C/I Ratio

-0.5% +9.5% +10.8% +29.2% +6.3%

+20.1% -9.2% +30.7% -1.5% +9.1%

+21.5% -16.5% n.m. -4.3% +4.1%

-21.9% +4.9% +63.6% -7.4% +37.8%

-4.2 pp +4.6 pp -4.0 pp +5.8 pp -0.7 pp

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

(2) Calculated on data at end of period FX

(Euro mln - Data at end of period FX)

DIVISIONAL CONTRIBUTION TO CONSOLIDATED RESULTS IN 4Q04

1,157 695 324 529 2,679

-743 -267 -193 -309 -1,555

414 428 131 219 1,124

-84 -103 -1.5 -30 -231

126 203 143 106 627

64.2% 38.4% 59.6% 58.6% 58.0%

(3) Including all the employees of Koc Financial Services (3,921 as at 31.12.2004)

Employees(3) 25,136 6,334 3,700 29,540 70,543

4Q04 RESULTS

% Change vs 3Q04(2)

% Change vs 3Q04(2)

% Change vs 3Q04(2)

% Change vs 3Q04(2)

% Change vs 3Q04(2)

Change in pp vs 3Q04(2)

30

6.2% 6.2%7.2%

6.0%

4.9%5.6% 5.5%

5.3%

8.0%

12.1%

13.3%

2.1%

4.6%

12.2%

11.7%

9.1%

0%

2%

4%

6%

8%

10%

12%

14%

mar-03 jun-03 sep-03 dec-03 mar-04 jun-04 sep-04 dec-04

NET INTEREST INCOME

4Q03 1Q043Q032Q031Q03

Avg. Euribor 2.46%

2.78%

2.14% 2.09%2.16%

2Q04

2.09%

1,140 1,1891,1601,1931,251

885 930911924988

1,210

939

255 259251268263 270

3Q04

2.11%

1,217

943

274

(1) Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos)

NET INTEREST INCOME excl. Dividends

1,304

981

323

4Q04

2.15%

+4.1%

+10.9%

On M/L term loans (1)

On total loans (1)

UCI(2) Market Share

Italian industry

Total Loans(1), y/y % ch.

UCI(2)

(2) Proforma including ANBI in 2003 and excluding Locat and District Bonds securitisations in 2004

New Europe

Italy ex. Parent Company 10.74%

10.88%10.83%

10.26%

11.07%11.03%

10.80%

10.70%

Jun03 Dec03 Jun04 Dec04

11.11%(1)

On total loans (1) ex securitisations

+7.2%

+14.4%

31

% ch. on Dec03

% ch. on Sep04

GOOD VOLUME GROWTH MAINLY SUPPORTED BY RETAIL AND NEW EUROPE

Dec04

TOTAL CUSTOMER LOANS1

Breakdown By Division (bn)

1 Excl. Repos

+6.0

Retail +16.2

Corporate +0.1

New Europe +18.6

TOTAL GROUP +7.6

Other

56.7

62.9

14.0

135.6

2.0

+4.5

+0.4

+1.8

-35.3 -20.9

+2.5New Europe (unchanged FX) +10.614.0

32

Up-front(1)

Other

Weight of Up-front on Total (%)

NET COMMISSIONS: QUARTERLY TREND

869

10.6

4Q04

92

777

781

1Q03

798

1Q04

839

2Q03

830

3Q03

857

4Q03

686630

699673656

151 183 157 158 112

855

2Q04

116

19.3 21.8 18.9 18.4 14.1 13.6

3Q04

85

11.1

682739

+13.9%

767

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

Accounting data

33

41.4

23.9

23.1

34.8

123.2

Dec04

40.4

25.8

23.9

37.9

128.0

Sep04

NET SALES OF MUTUAL FUNDS (Italy): UCI vs ITALIAN INDUSTRY

DETAILS ON TRENDS OF UCI’S TOTAL ASSET UNDER MANAGEMENT AND MARKET SHARE IN THE ITALIAN MUTUAL FUND INDUSTRY

Dec03

UCI

Jun04 Sep04

13.39% 13.51% 13.63%

UCI TOTAL AUM(bn)

Italy US, New Europe & Intl.

Mutual & Hedge Funds

Segregated Accounts

Insurance

Dec03

+4.6% vs Dec. 03

42.8

22.7

20.6

31.3

117.4

+11.2%

+4.9%

+12.1%

+5.3%

-3.3%

+9.0%

+3.9%1

+3.4%

+7.6%

-2.2%

+21.2% vs Dec. 03

+9.0%1 vs Dec. 03

ASSET MIX (PGAM)

Avg.3Q03

Equity + Hedge

Avg.4Q04

30.1% 31.0%

Bond + Liquidity 61.3% 61.4%

Balanced + others 8.6% 7.6%

Dec04

13.76%

US, New Europe & International

-391

UCI

ITALIAN INDUSTRY

-9,803

TOP 3 PLAYERS

(EX UCI)

-18,117

Avg.2003 Avg.2004

27.4% 30.3%

62.5% 61.1%

10.1% 8.6%

MUTUAL FUNDS (Italy): UCI’S MARKET SHARE2 EVOLUTION

(2) Calculated according to the “old” classification methodology adopted by Assogestioni (pro-forma data for all market players adopting the “new” Assogestioni methodology not available yet)

(1) +2.1% Dec04/Sep04 % change and +7.1% Y/Y % change net of SAFECO AM acquisition completed in 4Q04

34

INCOME FROM FINANCIAL TRANSACTIONS(mln)

99145

4Q031Q03 2Q03 3Q03

436

365

349

324

263

196

239

184

292

1Q04

199

2Q04

295

252

3Q04

233

4Q04

173

DETAILS ON CONSOLIDATED INCOME FROM FINANCIAL TRANSACTIONS – QUARTERLY TREND

Of which: Derivatives1

(1) Corporate + Institutional + Retail Derivatives

35

NON OPERATING ITEMS

Operating income

Goodwill amort.

Net Income



Net extraord. income

Taxes

Minorities

1Q04

1,070

-71

466

-192

-9

2

-296

-38

2Q04

1,210

-72

583

-246

-27

100

-335

-47

4,434

-276

2,131

FY04

-891

-279

218

-1,036

-169

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

3Q04

1,030

-72

455

-222

-22

55

-264

-50

4Q04

1,124

-61

627

-231

-221

61

-141

-34

Reserve for general bkg risk - -130 - 130

36

-on tot. Gross doubtful loans, % 37.9% 36.5% 48.0%72.4%38.2% 35.7% 70.8% 48.2%

-on total gross NPL, % 48.7% 42.6% 84.5% 60.1%48.7% 40.7% 84.8% 60.2%

Total gross doubtful loans 3,479 2,869 2,806 9,311+8.4% +1.7%

Net Doubtful Loans/Tot. Net Loans,% 3.58%3.98% 2.82% 5.83%

3,536

3.86%

+1.6% -4.0%2,755

2.62%

3,040

6.32%

9,469

3.49%

% change on Sep04

Gross Doubtful Loans/Tot. Gr. Loans,% 6.60%6.23% 4.32% 18.1%6.06% 3.97% 18.5% 6.47%

Total net doubtful loans 2,160 1,823 774 4,839+14.8% +1.3%

2,185+1.2% -2.8%

1,771 888 4,901% change on Sep04

ASSET QUALITY: DETAILS BY DIVISIONS

Coverage ratios

Retail Division

Sep 04 Dec 04

1 Balance due to other Group companies

(mln - Data at end of period FX)

Corporate Division

NE Division Total Group 1

Gross NPL

% change on Sep04

Gross NPL/Tot. Gr. Loans,%

Net NPL/Tot. Net Loans,%

2,095 1,9402,32

06,451

+5.6% +2.1%

3.75% 2.92% 15.0% 4.57%

1.98% 1.72% 2.71% 1.91%

2,153

3.69%

1.95%

+2.8% -2.5%

1,891

2.72%

1.66%

2,450

14.9%

2.66%

6,586

4.50%

1.87%

Net NPL

% change on Sep04

1,075 1,113 359 2,577

+3.9% +1.7%

1,105

+2.7% +0.9%

1,122 373 2,621

Sep 04 Dec.04 Sep 04 Dec 04 Sep 04 Dec 04

37

Group


Retail Division

Corporate Division


New Europe Division

AGENDA

38

RETAIL DIVISION: P&L

Interest income (incl. div.)


Total revenues

Operating costs (incl. dep.)

Net operating income

Net income

Cost/income ratio, %

Y/y% ch.

Q/q% ch.

4Q04

Net provisions

mln

Net income for the Group(2)

Y/y% ch.

- of which: Staff costs

- of which: Other adm. expenses

- o/w: Net write-down of loans

614

543

1,157

-743

414

126

64.2

126

-388

-334

-84

-110

+1.5

+11.5

+6.0

-0.5

+20.1

-21.8

-421 bp

-21.9

+0.7

+0.2

+21.5

+36.2

+13.9

+10.6

+12.3

+3.4

+32.8

+59.8

-552 bp

+54.9

+3.3

+12.4

-3.1

-12.3

+0.9

-2.3

-0.6

+2.6

-6.8

-6.6

+211 bp

-6.7

+2.8

+4.9

+15.2

+5.6

2004

2,360

1,963

4,323

-2,957

1,366

546

68.4

545

-1,543

-1,322

-281

-335

Net extraordinary income (loss) -123 n.m. n.m. n.m.-129

39

Interest income (incl. div.)


Total revenues



Net income

Cost/income ratio, %

TOTAL(1)Banca d. Umbria

UniCredit Banca

Net provisions

mln

Net income for the Group(2)

UBCasa


- of which: Other costs

Clarima

RETAIL DIVISION: 2004 RESULTS BREAKDOWN BY COMPANY

- o/w: Net write-down of loans

2,031

1,817

3,848

-2,681

1,168

412

69.7

396

-1,431

-1,166

-208

-302

107

73

180

-97

83

62

53.8

39

-51

-42

-12

-16

113

12

125

-72

53

21

57.8

28

-24

-45

-23

-23

113

37

150

-72

78

47

48.1

47

-18

-53

-37

-37

2,360

1,963

4,323

-2,957

1,366

546

68.4

545

-1,543

-1,322

-281

-335

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

CR Carpi

37

23

60

-35

25

15

58.8

14

-18

-15

-2

-2

(2) Net of consolidation adjustments and minorities

Net extraordinary income (loss) -132 3 1 1 -129-

40

4.8 5.7

RETAIL DIVISION - MORTGAGES AND CONSUMER FINANCING

RESIDENTIAL MORTGAGESSTOCK, bn NEW FLOWS, bn

CONSUMER FINANCINGDEC03 DEC04

26.2

32.4 +22.9%

NEW FLOWS OF PERSONAL LOANS, mln

2003 2004

93 mln

339 mln

REVOLVING CARDS TOTAL SPENDING(3) (+275k revolving cards in 2004)

2Q04

29.3

mkt share(1)

17.17%17.61% 17.71%

(1) Group market share, related to mortgages to households as of Bank of Italy definition in table TDME0070 of the monthly bulletin

(3) POS and ATM spending

2003 2004

693

1,163

+67.9%

2003 2004

6.98.4

+20.9%

2.02.5

UCB

UBCasa

+19.3%

+24.1%

DEC03 DEC04

2.1

2.8

+31.2%

STOCK, bn

(2) Calculated on ASSOFIN data. Not calculated in 2003 because personal loans were sold directly by UCB and not through Clarima

mkt share(4)

2.4%

7.4%

2004 mkt share(2) at 13.2%

(4) Calculated on ASSOFIN data

41

RETAIL DIVISION - SMALL BUSINESS STOCK, SPREAD AND CUSTOMER ACQUISITION

STOCK, bn

20042003

SHORT TERM SPREAD(1)

2003 1Q04

(1) Management accounts, includes also maximum overdraft charges

15.0

16.6 +10.8% 8.63%

8.21%

2Q04

8.25%

3Q04

8.32%

4Q04

8.37%

4Q03 1Q04

12,600

18,000

2Q04

19,000

3Q04

15,000

4Q04

17,500

QUARTERLY TRENDS IN SMALL BUSINESS CUSTOMER ACQUISITION

42

RETAIL DIVISION - CUSTOMER LOANS AND CUSTOMER DEPOSITS BREAKDOWN AND DETAILS OF SHORT TERM SPREADS

SB loans (1)

Residential mortgages (2)

Cons. creditOther loans

EOP LOANS, Euro bn

UCB AVG. MARK UP(5) (Households), %

Other deposits

Households c/accounts

Bonds

EOP DEPOSITS, Euro bn UCB AVG. MARK-DOWN(5) (Households), %

2Q042003pro-forma(3)

2Q042003

+8.1%

(1) Includes short term and m/l term loans(2) Includes only households mortgages(3) Including ANBI

+11.0%

+3.3%

+7.8%

+0.2%

+18.3%

+0.4%

+1.6%

48.8

26.2

15.0

2.15.5

60.2

17.7

15.3

27.2

UCB AVG. MARK UP(5) (Small Business), %

7.18

1Q03

2.32

5.99

7.18

2Q03

2.03

5.93

7.33

3Q03

1.78

5.95

7.04

4Q03

1.72

5.69

7.03

1Q04

1.65

5.60

(4) 2Q04 increase vs. December is due to the issue of bonds by UBCasa to fund mortgage book expansion

4Q04

4Q04

56.7

67.2

32.2

22.8(4)

16.6

2.85.0

15.1

29.3

+7.4%

+10.5%

+7.3%

+21.8%-8.1%

+8.8%

-1.9%

+6.2%

+6.5%

7.08

2Q04

1.65

5.47

(5) Source: Bank of Italy matrix data

52.4

63.9

29.2

21.0(4)

15.5

2.35.5

15.4

27.6

7.33

3Q04

1.67

5.55

+5.1%

7.21

4Q04

1.71

5.42

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04

43

RETAIL DIVISION - NET COMMISSIONS

RETAIL DIVISION: NET COMMISSIONS

mln

Securities in custody

TOTAL RETAIL DIVISION

Total Commissions from Wealth Management

- Mutual funds (1)

- Segregated Accounts (2)

Other services

- Insurance Products (3)

Breakdown by nature

(1) Includes subscription and management fees from Plain Vanilla Mutual Funds(2) Includes management fees related to underlying Mutual Funds. Net commissions related to Focus Invest do no impact consolidated results

Y/y% ch.

+18.2

+9.5

+2.7

-41.8

n.m.

+12.4

-5.4

4Q04

98

386

159

38

45

129

77

(3) Includes management fees related to underlying Mutual Funds

Q/q% ch.

+100.1

+17.4

+0.2

-23.9

+3.2

+6.6

+16.7

2004

248

1,341

619

203

110

474

305

Y/y% ch.

-18.3

-3.6

-7.1

-5.8

+64.4

+12.6

-20.4

44

RETAIL DIVISION - DETAILS ON ASSET QUALITY

Coverage ratio 48.7% +4 bp

Provisions on performing loans 315 +4.3%


Gross Doubtful Loans 3,536 +1.6%

Coverage ratio 38.2% +30 bp



Gross Non Performing Loans 2,153 +2.8%


Cost of risk 50 bp - bp

Dec. 04ch. on

Sep. 04

2004ch. on 2003

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

-5.7%

2003 2004

908

856

REDUCTION OF NET FLOWS OF NEW DOUBTFUL LOANS(1) VS. 2003 …

-8.0%

1H04 2H04

446

410

… CONFIRMED BY 2H04 TREND VS. 1H04

45

CUSTOMER SATISFACTION

PRIVATE CUSTOMERS, TRIM INDEX (1)

2003 4Q04

47

51

2003 4Q04

4340

UNICREDIT BANCA AVG. TOP 4 COMPETITORS

Stability of front-end relationship with customers

Improved waiting time (shorter queues) Improved advisory on investment services,

with room for further improvement

SMALL BUSINESS, TRIM INDEX (1)

2003 4Q04

42

48

2003 4Q04

41

36

UNICREDIT BANCA AVG. TOP 4 COMPETITORS

Dedicated service model

Improved advisory on lending products

Focus on quality of sales

Source: NFO Infratest, Customer satisfaction analyses

(1) On a scale from 0 to 70

46

Group


Retail Division

Corporate Division


New Europe Division

AGENDA

47

CORPORATE DIVISION: 2004 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

1,287

584

1,871

1,338

-231

-299

-533

505

493

28.5%Cost/income Ratio

-450

-504

UBM LOCAT

-32

684

652

426

-103

-107

-226

308

309

34.7%

9

3

186

30

216

160

-22

-31

-56

93

96

25.7%

-23

-25

64

233

297

99

-102

-88

-198

44

51

66.8%

-6

-31

1,504

1,531

3,035

2,022

-458

-526

-1,013

950

949

33.4%

-476

-562

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

48

CORPORATE DIVISION: 4Q04 AND 2004 INCOME STATEMENT



Total revenues

Operating costs (incl. depr.)

Operating income


Net income

Total net provisions

Taxes



(Euro mln) 4Q04/3Q04 % ch. 4Q04

695

-267

428

-70

38.4%

20

-175

203

203

365

330

20044Q04/4Q03 % ch.

y/y % ch.

-3.2

+9.4

-9.7

-54.5

+449bp

n.s.

+36.7

+5.2

+5.2

-5.9

-

-5.8

+6.0

-11.9

+12.9

+438bp

n.s.

-40.9

+89.7

+89.7

+3.4

-14.3

3,035

1,013

2,022

-596

33.4%

86

-562

949

950

1,504

1,531

-7.1

-0.9

-9.9

-4.6

+210bp

n.s.

-12.3

-2.7

-3.0

+2.0

-14.6

49

CORPORATE DIVISION - DETAILS ON ASSET QUALITY


2004ch. on 2003

Provisions on performing loans 751 -4.4%


Gross Doubtful Loans 2,755 -4.0%


Cost of risk 70 bp +1 bp2



Gross Non Performing Loans 1,891 -2.5%


Dec04ch. on Sep04

(2) Calculated on FY03 cost of risk (91 bp) net of extraordinary provisions on Parmalat (22 bp)

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

NET FLOWS OF NEW DOUBTFUL LOANS1, (mln)

1Q04

377

-43.4%

2Q04 3Q04 4Q04

143

233

132

50

(Euro mln)

Net interest income 326


Cost Income RATIO, %

132

28.4%

Net non interest income 156

Total revenues

Operating costs

Operating income

482

-137

345


Other net provisions

-100

-49

Of which:

102

- Trading profits 40

- Net commissions

UNICREDIT BANCA D’IMPRESA: 4Q04 AND 2004 INCOME STATEMENT

4Q04/3Q04 % ch. 4Q04 20044Q04/4Q03

% ch. y/y

% ch.

-0.5

+11.8

-46 bp

+19.3

+5.2

+3.5

+5.9

-13.1

n.s.

+14.9

+15.3

+13.6

+187.0

+12 bp

+17.9

+14.9

+15.4

+14.8

-57.0

n.s.

+18.7

-5.3

1,287

493

28.5%

584

1,871

-533

1,338

-450

-54

378

184

+9.2

+12.8

-22 bp

-6.3

+3.8

+3.0

+4.1

-10.7

+35.1

+15.4

-33.9

51

21.4

UBI AVG. CUSTOMER LOANS1, bn

+2.4%

UBI AVG. TOTAL LENDING SPREAD(1), %

2.18%2.40%

2.30%

(1) Average quarterly figures; only performing loans (“impieghi vivi”) taken into account

45.046.5 47.6

4Q03 3Q04 4Q04 4Q03 3Q04 4Q04

(mln, end of period figures)

Largest groups

Dec032

7,369

Dec042

4,904

Y/Y % ch.

-33.5%

SMEs & other corporate 27,559 28,538 +3.6%

Public Sect. & Others3 6,864 10,106 +47.2%

(3) Including non-financial companies with Total Revenues lower than 1.5 mln (around 7 bn as of Dec04 vs 4.7 bn as of Dec03)

Financial companies 4,244 3,348 -21.1%

TOTAL 46,036 46,896 +1.9%

- Share of Wallet 12.3% 12.4% +10 bp

-10 bp

UBI NET INTEREST MARGIN (excluding dividends), mln

295325 323

4Q03 3Q04 4Q04

o/w: M/L 18.6 19.7

(2) Source: Credit Bureau

-0.6% q/q

+9.5% y/y

UBI: NET INTEREST INCOME (excluding DIVIDENDS) QUARTERLY TREND & LOAN PORTFOLIO COMPOSITION

52

UBM: 4Q04 AND 2004 INCOME STATEMENT

(Euro mln)

Total revenues

Staff costs

Other costs (incl. depr.)

Operating income

Net income

C/I Ratio

80

-24

-36

21

26

73.6%

Net extraord. income 6

Taxes -1

4Q04/3Q04 % ch. 4Q04 20044Q04/4Q03

% ch. y/y

% ch.

-39.4

-14.8

+51.9

-74.0

-36.9

vs. 38.5%

n.s.

n.s.

-52.8

-19.7

-5.3

-79.5

-58.4

vs.39.3%

+34.1

n.s.

652

-107

-119

426

309

34.7%

63

-184

-33.9

-21.0

-7.6

-41.0

-31.3

+786 bp

n.s.

-28.5



-15

96

+49.6

-33.1

n.s.

-44.1

-32

684

n.s.

-24.5

Avg. daily VAR 1 3.9 n.s.

1 Pls. note that the avg. daily VAR refers to UBM standing alone for 2003 and 1H04, while for 2H04 it reflects UBM new perimeter (incl. TradingLab, merged in UBM from July 1st, 2004)

3.9 n.s. n.s.

53

Group


Retail Division

Corporate Division


New Europe Division

AGENDA

54

PRIVATE & AM DIVISION: 2004 INCOME STATEMENT – BREAKDOWN BY COMPANY



Total revenues


Operating income

Net income

Cost/Income Ratio




- of which: other admin. expenses

(Euro mln)


TOTAL DIVISION2

101

1,066

1,167

-738

-331

-377

429

-20

401

390

63.2%

68

UPB +

Subsidiaries

74

282

356

-233

-130

-99

123

-8

68

65

65.5%

-

11

722

733

-377

-176

-186

356

+4

257

351

51.5%

53

14

54

68

-110

-16

-85

-43

-4

-35

-25

n.s.

5

PGAM Group UniCredit Xelion Banca

2

9

11

-18

-9

-7

-7

-2

-5

-1

n.s.

10

Other Companies1

1 Mainly companies deriving from the acquisition of ING and not integrated in UniCredit Xelion Banca and UIB Luxemburg2 Balance due to roundings and elisions of infragroup dividends and goodwill amortisation

55

PRIVATE & AM DIVISION: 4Q04 AND 2004 INCOME STATEMENT



Total revenues

Operating costs (incl. depr.)

Operating income


Net income


Taxes



4Q04/3Q04 % ch. 4Q04

324

-193

131

-14

59.6%

47

-18

143

146

28

296

20044Q04/4Q03 % ch. Y/y % ch.

+24.1

+16.8

+36.9

-25.5

-374 bp

n.s.

n.s.

+68.1

+64.9

+11.8

+25.3

+9.9

-1.0

+31.8

-39.9

-665 bp

n.s.

-18.1

n.s.

n.s.

+14.0

+9.6

1,167

-738

429

-76

63.2%

68

-20

390

401

101

1,066

+7.5

+6.2

+9.8

-29.3

-77 bp

n.s.

-37.1

+61.1

+64.8

+6.9

+7.5

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

56

1 Including Repos

PRIVATE & AM DIVISION: DETAILS ON TOTAL FINANCIAL ASSETS Y/Y AND 4Q/3Q TRENDS

3 Including Euro 2.3 bn deriving from the acquisition of SAFECO AM completed in December 2004

(bn - Data at end of period FX)

Securities in custody

Direct deposits1

AUMs

PRIVATE & AM DIVISION TOTAL FINANCIAL ASSETS

+5.1%2

+10.8% Y/Y

Dec03

5.7

25.5

124.0

6.1

26.9

130.6

155.2163.6

6.9

29.3

135.73

171.93

Sep04 Dec04

+12.0% Y/Y at fixed FX

2 +6.4% at fixed FX

571 Balance due to roundings

Italy

New Europe

89,095

2,577

TOTAL PIONEER

Alternative Investments3

119,436

2,449

-28

716

3,499

1,431

US 21,884 767

International (ex-Italy) 5,880 2,045

AuM as at 31.12.2003

US in USD 27,639 1,009

92,809

3,702

129,6143

3,830

25,0323

8,071

AuM as at 31.12.20041

34,0963

AuM as at 28.2.20052

93,925

25,678

8,746

4,171

132,520

4,084

34,042

2004 Net sales

PIONEER GROUP: DETAILS ON NET SALES AND AUM TREND (Dec03-Feb04)

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

3,742

408

4,403

-49

106

147

1,891

30

239

439

177

-210

380

-275

Net sales Jan-Feb.05

2004 Mkt. Perf. (mln - Data at end of period FX)

3 Balance due to SAFECO AM acquisition (Euro 2,276 mln, around USD 3 bn)

58

Finanza & Futuro

Rasbank + BNL Inv.ti4 Credem + Euromob.

6,905Credem + Euromob.

1 Calculated on average PFAs2 AUMs, Securities in Custody, Bancassurance and liquidity3 Ranking taking into account only the 10 major Italian players by Total Financial Assets as at 31.12.20044 BNL Investimenti acquired by RasBank during 2004

Source: Assoreti

Net Inflows:2,019 Mln,1st in Italy

Data as at 31.12.2004 – Mln

TOTAL NET INFLOWS 2 & 3

Xelion 2,019

Mediolanum 1,285

Azimut 1,035

Banca Generali 773

607

Credem + Euromob. 513

Credit Suisse

409Rasbank + BNL Inv.ti4

211

Finanza & Futuro -174

Fideuram + SPI -867

Data as at 31.12.2004

2,060 PFAs,5th in Italy

NUMBER OF PFAs

Fideuram + SPI 4,273

Mediolanum 4,049

3,811

Banca Generali 2,220

Finanza & Futuro 1,150

Banca 121

1,082

Azimut 881

698

Tot. Fin. Assets:~12.1 bn,5th in Italy


TOTAL FINANCIAL ASSETS

Fideuram + SPI 58,882

Mediolanum 20,804

Rasbank + BNL Inv.ti4 18,946

8,413Azimut

7,852

Credit Suisse 7,123

Xelion 12,058

14,132

Fineco 6,474

Net Inflows per PFA1:2rd among Top-

Players


NET INFLOWS PER PFA 2 & 3

Azimut 1.27

Xelion 0.94

Credit Suisse 0.67

Credem + Euromob. 0.47

0.39

Banca Generali

0.32

Finanza & Futuro

0.10

-0.15

Fideuram + SPI -0.20

Mediolanum

0.29

XELION: LEADERSHIP FOR TOTAL NET SALES(25.2% MARKET SHARE) AND OUTSTANDING PRODUCTIVITY PER PFA

Rasbank + BNL Inv.ti4

Xelion 2,060

Fineco 1,476

Fineco Fineco

Banca Generali

59

Group


Retail Division

Corporate Division


New Europe Division

AGENDA

60

2.7%(1)

2.1%(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

6.7%(1)

42.4%(1)

18.9%(1)

23.3%(1)

(1) Weight of the bank Total Revenues in 4Q04 on Division Total Revenues – only UCI’s portion; balance due to UniLeasing Romania and Xelion Poland


Tax Rate (%)

NEW EUROPE DIVISION % ch. on 4Q03

+6.0

+6.7

+6.3

+5.7

+7.1

-41.8

+90.9

+49.0

-54.3

+41.7

+38.6

-1.1 pp

3.5%(1)

BREAKDOWNOF REVENUES

ITAS

4Q04

299

176

475

-279

196

-26

21

143

-14

-34

97

19.1

% ch. on 3Q04

+1.0

+6.0

+2.8

+13.9

-9.7

-16.7

+50.0

-15.4

n.m.

+13.3

-16.4

+4.1 pp

FY04

1,154

681

1,835

-1,013

822

-125

31

585

-18

-125

398

17.6

y/y % ch.

+2.8

+8.4

+4.8

+3.4

+6.6

-19.4

-13.9

+27.7

-54.3

-19.4

+22.8

-7.7 pp

Cost of Risk (bp) 89 -33 bp

ROE (%) 19.9 +2.7 pp

Cost/Income ratio (%) -0.4 pp58.7 +5.7 pp

55.2 -0.8 pp

NEW EUROPE DIVISION: 4Q04 & FY04 INCOME STATEMENT

61

(1) Excluding for KFS (included at current FX)

NEW EUROPE DIVISION: 4Q04 & FY04 TREND IN VOLUMES

ITAS

% ch. on

Sep04

Dec04(Euro mln)

% ch. on

Dec03

Net Customer Loans

- o/w Pekao

Mortgages(2)

+2.5

+1.4

+10.5

+4.7

+5.0 +27.8

14,051

6,255

2,097

- o/w Pekao LC +13.4 +80.6564

- o/w Pekao(3)

Mutual Funds(4)

-6.9 -8.0

+9.0 +35.6

Deposits -1.9 +3.522,974

10,667

4,835

- o/w Pekao(5) +13.9 +28.93,187

NET CUSTOMER LOANS 4Q04/3Q04: Bulbank +17.7%, KFS

+3.0%, Zaba +1.6% Dec04/Dec03: Bulbank +52.8%, KFS

+31.7%, Zaba +8.3%

(5) Pioneer Pekao Investment Management

At unchanged FX(1)

MUTUAL FUNDS in PEKAO: Market share(5): to 34.5 up 4.1 pp y/y

(2) Management accounts in LAS

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

(3) Deposits: -2.1% y/y, -3.0% q/q also considering the impact of Zloty appreciation vs. Dollar; Total customer savings: +4.6% y/y, +1.3% q/q

62

NEW EUROPE ASSET QUALITY

Net NPLs and Doubtful Loans as % of Total Net Loans 84.5

Sep04 Dec04

84.8

72.4 70.8

Coverage ratios

On Gross Doubtful Loans

On Gross NPLs

Net NPL/ Loans %

Dep04

Total NE +0.42.7

ch. on Sep04 (pp)

Net Doubtful/Loans %

Dec04

ch. on Sep04 (pp)

6.3-0.1

At unchanged

FX

Zaba +0.22.0 3.1+0.2

Unibanka 0.03.1 5.9+0.3

Pekao -0.83.7 7.9-0.4

Bulbank 0.1 +0.61.70.0

KFS +0.22.7 5.3+0.4

Cost of risk(1)

-33 bp

(bp, annualised)

122

89

20042003

(1) Calculated as Net Loan Loss Provisions on Net Customer Loans at period-end ITAS

63

Interest margin (incl. div.)


Total revenues



Net income

ROE

Cost/income

TOTAL(1)

1,154

681

1,835

-1,013

822

585

19.9%

55.2%

Net provisions -143

(1) Balance due to roundings and other small companies

(Euro mln)

(UCI stake)

Net income(3) (UCI’s portion) 398

- of which: Staff costs -492

- of which: Other costs -382

NEW EUROPE DIVISION: FY04 RESULTS BREAKDOWN BY BANK

- o/w: Net write-down of loans -125

UNI BANKA (77.2%)

25

19

44

-34

10

10

12.4%

78.3%

-6

8

-14

-15

-5

BULBANK (85.2%)

65

35

100

-43

57

18.0%

42.8%

-5

44

37

-15

-21

-4

Group PEKAO (53.0%)

566

450

1,016

-560

456

21.1%

55.1%

336

-84

167

-278

-204

-74

256

106

362

-200

162

126

22.3%

55.1%

-12

102

Group ZABA

(81.9%)

-104

-68

-14

14

13

27

-22

5

2

2.9%

80.3%

-10

-10

-4

1

-3

192

48

240

-107

134

73

25.9%

44.4%

-50

-45

-30

73

KFS(2) (50.0%)

-24

(2) Consolidated with proportional method (50%)

29

16

46

-40

5

6

6.6%

88.6%

-18

-15

-2

3

Zivno (96.6%)

-1

UniCredit Romania (99.9%)

ITAS

Banks’ data gross of consolidation adjustment

(3) Net of consolidation adjustment

64

CONSOLIDATED INCOME STATEMENT: PEKAO


(1) Including dividends(2) Including depreciations

(4) At unchanged FX

(Euro mln)



Total revenues

Operating costs(2)

Operating income



Net income


Taxes

% ch.(4) on 4Q03

4Q04

149

119

267

-145

122

-20

+12

91

-2

-21

% ch. on 3Q04(4)

+7.0

+19.7

+12.3

+5.2

+22.0

+35.8

-7.8

+6.8

-38.0

+106.6

+3.3

+19.7

+10.0

-0.4

+25.5

-54.6

n.m.

+139.3

-20.4

+61.8

ITAS

Data gross of consolidation adjustment

FY04

566

450

1,016

-560

456

-74

+19

336

-10

-56

y/y % ch.(4)

-3.9

+13.8

+3.3

-0.9

+8.8

-37.4

+18.0

+48.8

n.m.

-35.7

Net income for the Group(5) 41 -12.6 +104.1 167 +39.6

(5) Net of consolidation adjustment

ROE 21.1% +6.1 pp

Cost of Risk 118 bp -80 bpCost/Income 54.2% -3.6 pp -5.7 pp 55.1% -2.3 pp

Tax Rate 19.0% +8.2 pp -6.8 pp 14.2% -13.5 pp

65


(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 4Q034Q04

62

21

98

-55

43

+5

+5

38

-5

-11

31

% ch. on 3Q04(4)

-10.7

+21.8

-1.1

+17.0

-17.4

n.m.

n.m.

-6.2

n.m.

+43.9

-6.6

-21.4

+7.5

-12.9

-8.4

-18.1

-47.5

n.m.

+12.3

-76.9

+75.0

+5.3

FY04

256

106

362

-200

162

-14

+5

126

+1

-30

102

y/y % ch.(4)

-0.6

-1.3

-0.8

-0.8

-0.8

n.m.

n.m.

+10.3

-106.2%

+25.9

+10.6

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

2004 CONSOLIDATED RESULTS Alessandro Profumo - CEO

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