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UNICREDITO ITALIANO GROUP 1 st Quarter 2003 Results Alessandro Profumo - CEO

UNICREDITO ITALIANO GROUP 1 st Quarter 2003 Results Alessandro Profumo - CEO. May, 14 th 2003. DISCLAIMER.

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UNICREDITO ITALIANO GROUP 1 st Quarter 2003 Results Alessandro Profumo - CEO

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  1. UNICREDITO ITALIANO GROUP1st Quarter 2003 ResultsAlessandro Profumo - CEO May, 14th 2003

  2. DISCLAIMER • Starting from 1 January 2003, UCI operates in Italy through three new born segment banks (UniCredit Banca, UniCredit Banca d’Impresa, UniCredit Private Banking) resulting from the merger and the following spin-off of the former 7 regional banks • Accordingly, the divisional structure of the Group has been changed with the creation of a Retail Division, a Corporate Division and a Private & AM Division • Given the lack of 2002 quarterly accounting data comparable to 1Q03 for the three new segment banks and in order to facilitate the comprehension of y/y and q/q trends for the Italian banking activity, we provide a comparison between 2002 and 2003 on the aggregated results of the three new segment banks (former 7 regional banks pro-forma in 2002) • We provide a 2002 pro-forma for the aggregate three banks in order to consider the changes in perimeter and pricing due to S3 project implementation (reorganisation of the Group’s Real Estate properties and rationalisation of some companies)

  3. NEW DIVISIONAL STRUCTURE Corporate division Private & AM division New Europe division Retail division New Europe Banks Clarima(1) UBM Pioneer Adalya(2) BMC(3) Xelion TradingLab Locat(4) (1) Consumer Finance (2) Retail mortgages (3) M/l term corporate financing (4) Leasing

  4. AGENDA 1Q03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division Conclusions

  5. POSITIVE TREND IN TOTAL REVENUES AND GOOD COST CONTROL, AFTER THE START UP OF THE NEW 3 SEGMENT BANKS AND DESPITE THE STILL NOT FAVOURABLE ECONOMIC SCENARIO TOTAL REVENUES (Euro mln) +1.7% -0.7% At unchanged FX(1) +7.8% +5.9% 2,675 2,656 2,507 COST/INCOME RATIO % +134 bp -178 bp 1Q02 4Q02 1Q03 54.5 52.7 51.3 OPERATING EXPENSES (Euro mln) +4.2% +1.9% -3.1% -4.4% 1Q02 FY02 1Q03 1,464 1,373 1,399 1Q02 4Q02 1Q03 (1)Calculated on the FX of all the currencies of New Europe countries where UCI is present with fully consolidated banks.

  6. -0.9% -3.5% +23.2% +20.5% 1Q02 FY02 1Q03 GOOD NET INCOME GROWTH (+5.5% on 1Q02, +14.4% on Avg02) HIGH PROFITABILITY LEVELS RECONFIRMED (ROE AT 18.3% IN 1Q03, +1.1 pp on FY02) OPERATING INCOME (Euro mln) At unchanged FX(1) ROE (2) % 1,302 1,257 1,043 -0.1 pp +1.1 pp 1Q02 4Q02 1Q03 18.3 18.4 17.2 NET INCOME (Euro mln) +7.6% +5.5% +47.4% +46.2% 515 488 352 1Q02 4Q02 1Q03 (1)Calculated on the FX of all the currencies of New Europe countries where UCI is present with fully consolidated banks. (2) Calculated on end of period net equity excluding profit for the period and dividends related to FY02

  7. WITH THE NEW DIVISIONAL STRUCTURE WE CONFIRM A WELL DIVERSIFIED BUSINESS PORTFOLIO REVENUE COMPOSITION BY DIVISION (Euro mln) 2,658 -2 374 2,656 210 14.1% 855 7.9% 32.2% 1,219 100% 45.8% Retail Division Corporate Division Private & AM Division New Europe Division Total pre-Corp. Centre Corp. Centre and elisions(1) Group Total Weight of the division on Total pre Corporate Centre (1) Parent Company, USI, UPA, Audit, other companies and elisions

  8. TOTAL DEPOSITS NEARLY STABLE ON DEC02 (-0.9%) LINKED TO A SHIFT INTO INDIRECT DEPOSITS (+1.7% ON DEC02) • Direct deposits mainly hit by funding policy (bonds: -1.9% on Dec02) and by the FX impact (Zloty: -9%, $: -3.7% on Dec02) with outflows into indirect funds • Indirect deposits up 1.7% on Dec02 due to an increase in administered (+4.1%) and a slight decrease in managed funds (-0.8%). This last trend is determined by a negative impact both of market performance (MSCI: -5.6% on Dec02) and FX, nearly completely counterbalanced by positive inflows TOTAL DEPOSITS* (bn) 339.9 336.9 128.3 121.6 Direct -5.2% -0.9% Indirect 215.3 211.6 +1.7% 1Q03 Dec02 DIRECT DEPOSITS: BREAKDOWN BY DIVISION** (bn) • Retail Division down 1.3% on Dec02 with a different customer deposit mix: • Stable C/A • Negative trend of bonds and CDs • Corporate Division down19.4% also hit by seasonal corporate fiscal payments concentrated in the beginning of the year • New Europe Division down 7.2% on Dec02impacted by FX (-1% at unchanged FX) 108.8 112.5 -1.3% 55.7 55.0 Retail -3.3% Corporate 15.2 12.3 -19.4% 21.2 19.6 New Europe -7.2% 20.4 +7.2% 21.9 Other 1Q03 Dec02 *Incl. Repos ** Excl. Repos

  9. CUSTOMER LOANS DOWN 1.3% ON DEC02 TOTAL CUSTOMER LOANS* BREAKDOWN BY DIVISION bn • Retail Division: substantial stability (+0.5% on Dec02) with a shift towards medium/long term loans • Corporate Division down 2.7% on Dec02 due to rationalisation of credit lines and a reduction of higher risk exposures • New Europe Division down 2.9% on Dec02 hit by Zloty devaluation (+3.4% at unchanged FX) 110.6 112.1 Retail -1.3% 41.4 41.6 +0.5% Corporate 56.0 54.5 -2.7% -2.9% 11.8 11.5 New Europe +6.3% Other 2.9 3.1 1Q03 Dec02 * Excl. Repos

  10. GOOD RESULTS IN 1Q03 COMPARED BOTH WITH 1Q02 AND 4Q02, HELPED BY THE INCREASED SPREAD IN ITALY AND THE IMPROVEMENT OF THE PARENT COMPANY MORE THAN COMPENSATING WEAKER RESULTS IN NEW EUROPE NET INTEREST INCOME y/y % Ch. % Ch. on 4Q02 1Q03 (Euro mln) TOTAL GROUP 1,258 -3.9 +1.5 1,258 -0.6 +3.7 At constant FX Aggr. 3 Banks 898 -0.9 +4.0 - UCI Banca (Retail Division) 588 - UCI Banca d’Impresa (Corporate Division) 294 - UCI Private Banking (PB & AM Division) 15 New Europe Banking 256 -22.3 -15.4 256 -10.4 -7.5 At constant FX Corporate Centre & elisions -14 -68.6 -64.3 Other Group companies 118 +0.6 +6.1 6 n.m. n.m. Dividends & oth. income from equity inv.1 1 Respectively 28 mln in 1Q02 and 49 mln in 4Q02

  11. GOOD RESILIENCE OF NET COMMISSIONS (-1.4% YoY, -0.4% QoQ AT UNCHANGED FX) NET COMMISSIONS YoY % Ch. % Ch. on 4Q02 Breakdown by company/division 1Q03 (Euro mln) TOTAL GROUP 787 -2.7% -1.5% 787 -1.4% -0.4% At constant FX Aggr. 3 Banks 448 -4.9% -0.2% - UCI Banca (Retail Division) 330 - UCI Banca d’Impresa (Corporate Division) 74 - UCI Private Banking (PB & AM Division) 44 UBM (Corporate Division) 31 +21.3% +88.1% PGAM Group (PB & AM Division) 115 -11.0% +3.1% New Europe Banking 86 -5.4% -10.4% 86 +8.0% -3.0% At constant FX Oth. Group companies, Corp. Centre & El. 107 +15.8% -15.2%

  12. GOOD IMPROVEMENT (+5.7%) OF COMMISSIONS FROM WEALTH MANAGEMENT VS 4Q02 … NET COMMISSIONS Breakdown by nature YoY % Ch. % Ch. on 4Q02 1Q03 (Euro mln) TOTAL GROUP 787 -2.7% -1.5% 410 -7.2% +5.7% Total Commissions from Wealth Management - Mutual funds 1 269 -12.7% +0.7% - Segregated Accounts 2 32 -56.2% -20.0% - Insurance Products 2 109 +78.7% +34.6% Securities in custody 75 +10.3% -11.8% Other services 302 +1.0% -7.6% (1) Includes subscription and management fees from Plain Vanilla Mutual Funds and management fees from Mutual Funds in Segregated Accounts and in Unit Linked (2)Management fees related to Mutual Funds underlying Segregated Accounts and Unit Linked not included (see note 1)

  13. 115.5 -11.3% 102.4 101.8 -0.6% 28.5 -17.5% +0.1% 23.5 23.7 13.5 +13.3% +7.3% 15.3 16.4 28.1 -7.5% -2.6% 26.0 25.3 -1.0% vs 31.12.’02 -17.2% -3.2% 45.4 37.6 36.4 31.3.’02 31.12.’02 31.03.’03 … DRIVEN BY STRONG SALES OF INSURANCE PRODUCTS IN ITALY AND MUTUAL FUNDS ABROAD, OFFSETTING THE SLIGHT DECREASE OF TOTAL AUMs ON DEC. 2002 AND THE LESS FAVOURABLE ASSET MIX … counterbalanced by excellent commercial results Negative impact of market and US$ devaluation on Total AUMs and Asset Mix… UCI TOTAL AuM ITALY • Bancassurance (Euro bn) • 1Q03 Total New Premiums written: Euro 1,766 mln (+73.6% YoY, +68.8% on 4Q02), of which around 700 mln in Capital Guaranteed UNISTAR (+3.1% YoY, +52% on 4Q02). Insurance Segregated Accounts • Euro 183 mln Recurring Premiums written (+237% YoY and +310% on 4Q02) Mutual Funds(1) • Confirmed leadership in the segment: 18.9% mkt share in bancassurance (17.6% in 2002); 14.9% mkt share on total market (11.7% in 2002) • Mutual Funds USA, New Europe & Intl. Italy 1Q03 Gross Sales 27.5% up YoY and +14.9% on 4Q02 (13.3 bn vs 10.4 bn in 1Q02 and 11.6 bn in 4Q02) PGAM AuM: Evolution by Asset Class 0.4% 1.2% 1.6% Hedge USA, NEW EUROPE & INT. 27.8% 36.4% 45.4% Equities 13.4% • Net Sales in USA sticking on 2002 momentum: 962 mln, +15.6% on 1Q02 at unchanged FX 15.0% 13.3% Balanced 38.3% 30.9% • Positive Net Sales in the International Division - ex Italy (Euro 226 mln) and strong trend in New Europe (Euro 284 mln, +302%) 28.0% Bonds 16.5% 18.9% Money Market 12.9% 1Q02 Avg. 4Q02 Avg. 1Q03 Avg. (1)Plain vanilla Mutual Funds distributed in Italy (Total AuM in Mutual Funds in Italy, including Mutual Funds in Segregated Accounts and Unit Linked, Euro 61.0 bn as at 31.3.2003 vs Euro 62.6 bn as at 31.12.2002, -2.5% - Source: Assogestioni)

  14. BRILLIANT RESULT (+20% Y/Y) FROM FINANCIAL TRANSACTIONS DRIVEN BY THE CORPORATE DIVISION INCOME FROM FINANCIAL TRANSACTIONS YoY % Ch. % Ch. on 4Q02 1Q03 433 19.9 99.5 (Euro mln) TOTAL GROUP 104.2 22.0 433 At constant FX 9.5 Aggr. 3 Banks 97 140.5 - UCI Banca (Retail Division) -3 - UCI Banca d’Impresa (Corporate Division) 102 - UCI Private Banking (PB &AM Division) -2 New Europe Banking 30 -48.4 -50.6 -45.9 30 -42.7 At constant FX UBM (Corporate Division) 234 37.4 n.m. (1) TradingLab (Retail Division) 62 -0.8 n.m. (2) Corporate Centre & elisions 10 -148.6 -60.2 Other Group companies 1 -47.5 -72.1 1 Amount in Euro in 4Q02: 72 mln 2 Amount in Euro in 4Q02: 17 mln

  15. OPERATING COSTS UNDER CONTROL (+1.9% Y/Y) OPERATING COSTS BREAKDOWN YoY % Ch. % Ch. on 4Q02 1Q03 (Euro mln) Staff Costs 811 1.1 -0.7 Other Costs 481 2.6 -2.0 By Nature Depreciation 107 4.9 -31.4 TOTAL GROUP 1,399 1.9 -4.4 1,399 4.2 -3.1 At constant FX Aggr. 3 Banks 830 0.9 -5.5 - UCI Banca(Retail Division) 665 - UCI Banca d’Impresa(Corporate Division) 128 37 - UCI Private Banking(PB & AM Division) By Company / Division (1) UBM (Corporate Division) 47 19.7 2.1 PGAM Group (PB & AM Division) 84 -1.1 -5.1 New Europe Banking 211 -14.7 -18.4 -2.5 211 -11.7 At constant FX 1 Balance of total costs by company/division due to Corporate Centre, elisions and other Group companies

  16. NON OPERATING ITEMS CHARACTERISED BY A CONSERVATIVE PROVISIONING POLICY AND A LOW EXTRAORDINARY INCOME • Euro 164 mln Specific provisions (of which write-downs for Euro 298 mln and write-backs for Euro 134 mln), down 11.8% vs. 1Q02 (-7.5% at constant FX) mainly due to lower net write-downs of KFS and UBM (Euro mln) 1,257 -66 -164 -55 +20 -437 • Tax Rate at 44.3% -40 • Net Write-downs of Financial Investments Euro 15 mln, mainly due to Commerzbank • Provisions for risks & charges Euro 40 mln • Disposal of Investments (Polcard) for Euro 15 mln 515 Operating income Goodwill amort. Net loan loss prov. Other net prov1 Net extr. income Taxes Minorities Net Income 1 Net write-downs of financial investments, Provisions for risks and charges, Provision to Reserve for General Banking risks

  17. DECREASING NET NPLS AND TOTAL DOUBTFUL LOANS IN ABSOLUTE TERMS; SLIGHT DETERIORATION OF NET NPLs AND NET DOUBTFUL LOANS ON TOTAL NET LOANS RATIOS MAINLY DUE LOWER TOTAL LOANS Net NPLs and Doubtful Loans as % of Total Net Loans Coverage ratios 60.7% 60.3% Calculated on Loans at 31.12.2002 48.2% 3.68% 48.1% 3.77% 3.71% 1.87% 1.91% 1.87% 31.12.’02 31.3.’03 31.12.’02 31.3.’03 Net Doubtful Loans/ Total Net Loans Net NPLs/ Total Net Loans On Gross Doubtful Loans On Gross NPLs • Conservative provisioning policies in Italy, particularly in Corporate Banking, with increased coverage ratios either for Retail Banking (from 37.7% to 37.9% on Total Doubtful) or for Corporate Banking (from 40.6% to 41.7%) Dec 02 Mar 03 % Ch. (Euro mln) Net NPLs 2,150 2,145 -0.2% Other Net Doubtful Loans 2,109 2,082 -1.3% • 4.0% reduction of Gross and Net NPLs in New Europe as a result of the improved macroeconomic scenario and efficient workout policies Total Net Doub. Loans 4,259 4,227 -0.8%

  18. DIVISIONAL CONTRIBUTION TO GROUP NET INCOME GOODWILL AND HOLDING CHARGES: - 69 goodwill depr. - 120 holding loss (net of dividends), of which 24 negative interest income (Euro mln) CORE TIER 1 RATIO (considering all RWA) TOTAL CAPITAL RATIO (considering all RWA) From 7.21% (Dec 02) to 7.13% (1Q03) From 11.89% (Dec 02) to 11.10% (1Q03) 64.4(1) 673.0 -158.0(1) 44.7(1) 515 325.3(1) +7.7% 238.6(1) Corporate Division(3) Private & AM Division(4) Corp. Centre & elisions(6) New Europe Division(5) Total pre-Corp. Centre & elisions Retail Division(2) Group total (1)Net of infragroup dividends. Goodwill depreciation is fully charged to Corp. Centre (2) UniCredit Banca, Banca dell’Umbria, CRCarpi, TradingLab, TredingLab Inc., Clarima, Adalya, UniCredit Fondi, Pioneer Inv. Man. Luxemboug, Rolo Pioneer Luxembourg, UniCredit Capital Italia, Vivacity, Grofofactor, Creditras Previdenza (3) UniCredit Banca d’Impresa, UBM, Locat, Locat Rent, Locat Zagreb, BMC, Unicredito Gestione Crediti, UniRiscossioni, UCI Factoring, i-Faber, Quercia Funding, S+R Investimenti, Sviluppo Nord Ovest, Ventura Finance, UCI Internal Serivces, Broker Credit, UniCredit ServiceLab, Euro Capital Structures (4) UniCredit Private Banking, Pioneer Global Asset Management Spa, Xelion, Bac Marino, Bac Fiduciaria, Banque Monegasque, Cordusio Fiduciaria, FRT SIM, UniCredit Suisse, Rolo Pioneer SGRpA (5) Group Pekao, Bulbank, Unibanka, Group Zagrebacka, UniCredit Romania, KFS (6) Parent Company, USI, UPA, other financial companies and elisions

  19. 60.6% 27.2% 71.0% 56.4% n.m. 52.7% Cost/income ratio DIVISIONAL CONTRIBUTION TO GROUP P&L (Euro mln) CORPORATE CENTRE & ELISION TOTAL GROUP PRIVATE & AM NEW EUROPE CORPORATE RETAIL 628 376 18 253 -11 1,264 Interest income (incl. div.) 592 478 192 121 9 1,392 Net non interest income Total revenues 1,219 855 210 374 -2 2,656 Operating costs (incl. dep.) 738 232 149 211 69 1,399 481 622 61 163 -70 1,257 Net operating income 55 71 2 39 52 219 Net provisions 242 328 46 98 -158 555 Net income 239 325 45 64 -158 515 Net Income for the Group 2,866 4,425 486 1,043 617 9,437 Capital Absorption Balance due to roundings

  20. AGENDA 1Q03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division Conclusions

  21. 4.6% 3.5% 0.2% 0.1% 1.7% 2.3% RETAIL DIVISION: BREAKDOWN OF REVENUES BY COMPANY AND INCOME STATEMENT OF THE DIVISION RETAIL DIVISION TOTAL REVENUES (Euro mln) 1Q03 Net interest income (incl. div.) 627 Net non interest income 592 87.6% 1,219 Total revenues Administrative costs (incl. depr.) 738 481 Operating income 1,219 Net write-down of loans 46 Other net provisions 9 -4 Net extraordinary income 180 Taxes 45.8%of Group Revenues1 SGR 2 242 Net income 239 Net income for the Group Other companies 60.6 Cost Income ratio, % 1 Pre Corporate Centre and Elisions 2 Asset Management Distribution companies: UniCredit Fondi, Pioneer Inv. Management, Rolo Pioneer Lux. e UniCredit Capital Italia

  22. UNICREDIT BANCA 1Q03 RESULTS CHARACTERISEDBY GOOD PERFORMANCE IN TERMS OF SALES ACTIVITIESAND TIGHT COST CONTROL (Euro mln) • Change in deposits mix vs Dec 02, resulting from stability in current accounts and decrease in bonds, CDs and savings accounts • Substantial stability of loans vs Dec 02, resulting from lower short term and increased m/l term loans, driven by residential mortgages 1Q03 Net interest income (incl. div.) 588 Net non interest income 480 1,068 Total revenues • Good improvement in mark-up (5.96%, +32bp on Jan03) more than offsetting the decrease in mark-down (1.93%, -23bp on Jan03), with short term spread up 9bp Administrative costs (incl. depr.) 665 403 Operating income • Good sales of third party bonds (1.6bn, in line with the excellent results of 4Q02 pro-forma) and bancassurance products (1.4 bn single premiums, +74% on 4Q and 167 mln recurring premiums, + 271% on 4Q) Net write-down of loans 41 Other net provisions 8 -5 Net extraordinary income • Good reduction of employees (-382, from 24,681 at Dec 02 to 24,299 at end of March), with incentivisation costs lower than budgeted 152 Taxes 197 Net income for the Group • Net write-downs on loansresulting from 74 write-downs and 33 write-backs (of which 14 effective collections) 62.3 Cost Income ratio, %

  23. AGENDA 1Q2003 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division Conclusions

  24. 33.0% 5.2% 2.3% 4.2% CORPORATE DIVISION: BREAKDOWN OF REVENUES BY COMPANY AND INCOME STATEMENT OF THE DIVISION CORPORATE DIVISION TOTAL REVENUES 1Q03 (Euro mln) Net interest income (incl. div.) 376 Net non interest income 478 855 Total revenues 55.2% 855 Administrative costs (incl. depr.) 232 622 Operating income Net write-down of loans 55 Other net provisions 15 32.2 % of Group Revenues 1 4 Net extraordinary income 228 Taxes Other Companies 328 Net income 325 Net income for the Group 27.2 Cost Income ratio, % 1 Pre Corporate Centre and Elisions

  25. UNICREDIT BANCA D’IMPRESA 1Q03 RESULTS SHOW EXCELLENT EFFICIENCY THANKS TO GOOD REVENUES (Euro mln) 1Q03 • Loans to customers at 39,333 mlnin line with end of 2002 (-0.4%),but showing a consistent improvement of the pricing (mark up at 2.69, +49 bps vs Dec. 02).Short term component weights around 60% • Deposits (excl. Repos)at 7,597 mln with mark down at 1.24 (-35 bps vs Dec. 02) Net interest income 294 Net non interest income 178 472 Total revenues Administrative costs 128 344 Operating income • Commissions at 74 mln mainly deriving from current accounts and foreign transaction services • Very good result of trading profits totalling 102 mln deriving almost all from derivatives products Net write-downs of loans 47 Other net provisions 15 1 Net extraordinary income 118 Taxes 165 Net income • Net write-downs of loans deriving from 68 mln of write offs and 21 mln of write backs (o.w. 15 mln from collections) 165 Net income for the Group 27.1 Cost Income RATIO, %

  26. AGENDA 1Q03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division Conclusions

  27. 18.0 Net interest income (incl. div.) 192.2 Net non interest income 210.2 Total revenues 28.8% 149.3 Administrative costs (incl. depr.) 60.9 Operating income 58.1% 4.6% 8.5% 1.0 Net write-down of loans 1.2 Other net provisions 4.9 Net extraordinary income 17.5 Taxes 46.1 Net income 44.7 Net income for the Group 71.0 Cost Income ratio, % PRIVATE BANKING & ASSET MANAGEMENT DIVISION: BREAKDOWN OF REVENUES BY COMPANY AND INCOME STATEMENT OF THE DIVISION 1Q03 PRIVATE BANKING & AM DIVISION TOTAL REVENUES (Euro mln) 210.2 7.9%of the Group1 Total Revenues Other 2 (1)Pre Corporate Centre & Elisions (2)BAC S. Marino, BAC S. Marino Fiduciaria, UPAM, Cordusio Fiduciaria, FRT Sim, UniCredit Suisse Bank, Banque Monegasque de Gestion.

  28. UNICREDIT PRIVATE BANKING: THE START-UP OF THE BIGGEST ITALIAN PRIVATE BANK • Around 95,200 customers as at end of March,with 376 net acquisition of clients in 3 months 1Q03 Net interest income (incl. div.) 15.1 • 153 branches and 557 Private Bankers as at end of March (53.8% of total staff) Net non interest income 45.4 of which: 44.0 - Net commissions • Total Direct + Indirect Deposits slightly decreasing on Dec 2002 (Euro 36.4 bn as at 31.03 vs Euro 36.6 as at 31.12), mainly due to the negative impact of market performance on AUMs (-Euro 243 mln), not completely offset by the increase of direct deposits 60.6 Total revenues Administrative costs (incl. depr.) 37.3 of which: 22.3 - Staff costs 15.0 - Administrative expenses • Net commissions at Euro 44.0 mln, of which: • Euro 30.4 mln from Asset Management1 • Euro 13.1 mln from Securities in Custody1 23.3 Operating income 10.1 Taxes 12.0 Net income for the Group • Euro 12.0 mln contribution to Net income for the Group (UCI PB stand alone); Euro 16.6 mln including subsidiaries2 61.5 Cost Income ratio, % (1)Management accounts (2)BAC S. Marino, BAC S. Marino Fiduciaria, UPAM, Cordusio Fiduciaria, FRT Sim, UniCredit Suisse Bank, Banque Monegasque de Gestion.

  29. AGENDA 1Q03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division Conclusions

  30. 51.1%2 23.5%2 6.9%2 13.7%2 3.3%2 1.4%2 NEW EUROPE DIVISION: BREAKDOWN OF REVENUES BY BANKS AND INCOME STATEMENT OF THE DIVISION y/y % ch.6 % ch. on 4Q026 1Q03 NEW EUROPE DIVISION TOTAL REVENUES (Euro mln) (Euro mln) Net interest income3 253 -10.9 -8.0 Net non interest income 121 -15.9 -31.1 374 Total revenues -12.6 -17.0 Administrative costs4 211 -2.5 -11.7 163 -22.9 -23.0 374 Operating income Net write-down of loans 41 -18.8 -58.7 Other net provisions5 2 n.m. n.m. 16 Net extraordinary income n.m. n.m. 14.1%of Group Revenues1 42 Taxes -21.1 +20.8 98 Net income -9.3 +55.6 64 Net income for the Group +64.5 -7.7 56.4 50.27 Cost/Income ratio (%) 53.08 1 Pre Corporate Centre and Elisions 5 Including provisions to reserve for general banking risk 2 Weight of the bank Total Revenues on Division Total Revenues – only UCI’s portion 3 Including dividends 6 At unchanged FX 4 Including depreciations 7 in 1Q02 8 in 4Q02

  31. Divisional results negatively affected by the still not favourable macroeconomic environment and FX impact in Poland (Zloty devaluation -18.8% y/y, -9.0% on Dec02) • Increased net income of the division in the last quarter to 64 mln in 1Q03 (-7.7% y/y, + 64.5% on 4Q02 at unchanged FX) supported by an overall good cost control and a lower impact of Pekao’s provisioning • Net customer loans (+4.9% y/y, +3.4% on 4Q02 at unchanged FX) hit by decreased lending in Pekao more than counterbalanced by the other banks • Direct deposits (-2.4% y/y, -1.0% on 4Q02 at unchanged FX) with a higher weight of securities (from 0.8% in 1Q02 to 2.1% in 1Q03) mainly driven by increased bonds in Pekao in order to exploit fiscal benefits • Assets under Management: 2.3 bn in 1Q03, +33% y/y, +8.1% on 4Q02 • Volumes • Zivnostenska • Banka • A successful acquisition of the 10th Czech Republic Bank ranked on total assets (close last February) • Development of new IT systems • Divisionalisation and focus on attractive segments to sustain growing revenue generation • Credit process redesign to reduce risk • Development of one single Pan European platform for Credit Card business • Special projects DIVISIONAL KEY HIGHLIGHTS

  32. ASSET QUALITY IN NEW EUROPE NEGATIVELY IMPACTED BY ECONOMIC SCENARIO IN POLAND, IMPROVEMENT IN ALL OTHER COUNTRIES Net NPLs and Doubtful Loans as % of Total Net Loans Coverage ratios Net Doubtful/Loans % 1Q03 80.3 80.3 Net NPL/ Loans % 1Q03 ch. on Dec02 (pp) ch. on Dec02 (pp) At unchanged FX 63.5 62.5 Pekao 4.1 12.3 +0.3 +1.0 Zaba 2.5 4.9 -0.4 -0.5 KFS 4.0 8.6 -0.7 -0.5 2002 1Q03 Bulbank 0.2 2.5 -0.1 -0.7 On Gross Doubtful Loans On Gross NPLs Unibanka 4.1 4.9 -0.2 -0.4 Total NE 3.5 -0.0 9.3 +0.4 • Stable net NPLs/Net Loans ratio • Net Doubtful/Loans ratio up 0.4% on Dec02 impacted by a not favourable macroeconomic environment in Pekao nearly counterbalanced by an improvement in all other NE banks (Zaba -0.5pp, KFS –0.5 pp, Bulbank -0.7pp, Unibanka -0.4pp onDec02) At unchanged FX Dec 02 1Q03 % ch. (Euro mln) +7.7 1,076 Net Doubtful Loans 999 Net NPLs +3.1 396 408 • Stable coverage ratio on gross NPLs loans, slight decrease on gross Doubtful due to a different mix (lower weight of NPLs) Net Loans +3.4 11,178 11,553

  33. AGENDA 1Q03 Group Highlights Divisional Reporting Retail Division Corporate Division Private & AM Division New Europe Division Conclusions

  34. SUMMING UP • Good revenue generation supported by a well diversified business portfolio • Net income growth (+5.5% on 1Q02, +14.4% on Avg02), despite a still not favourable economic environment • High profitability (ROE at 18.3% in 1Q03) and efficiency (Cost/Income ratio at 52.7% in 1Q03) levels reconfirmed • Good start up of the new three segment banks in the 1Q03

  35. Annex

  36. 1Q03 CONSOLIDATED INCOME STATEMENT Y/Y % ch. % ch. on 4Q02 (Euro mln) 1Q03 Net interest income (incl. div.) -5.5 -1.9 1,264 Net non interest income +4.0 +14.3 1,392 Total revenues 2,656 -0.7 +5.9 Administrative costs (incl. depr.) +1.9 -4.4 1,399 1,257 -3.5 +20.5 Operating income Goodwill depr. -4.3 +11.9 66 Net write-down of loans -11.8 -50.3 164 Other net provisions* n.m. n.m. 55 Net extraordinary income n.m. n.m. 20 Taxes -2.0 n.m. 437 40 Minorities -45.2 +33.3 515 +5.5 +46.2 Net income (*) Including provisions to reserve for general banking risk

  37. DIVISIONAL CONTRIBUTION TO THE GROUP OPERATING INCOME OPERATING INCOME: COMPOSITION BY DIVISION (Euro mln) 1,327 -70 163 1,257 61 12.3% 622 4.6% 46.9% 100% 481 36.2% Retail Division Corporate Division Private & AM Division New Europe Division Total pre-Corp. Centre Corp. Centre and elisions(1) Group Total Weight of the division on Total pre Corporate Centre (1) Parent Company, USI, UPA, Audit, other companies and elisions

  38. ASSET QUALITY: DETAILS BY DIVISIONS Retail Banking Corporate Banking NE Banking Total Group 1 (Euro mln) Dec. 02 Mar. 03 Dec. 02 Mar. 03 Dec. 02 Mar. 03 Dec. 02 Mar. 03 1,608 1,614 1,583 1,604 2,159 2,072 5,466 5,402 Gross NPL % change on Dec. ‘01 +0.4% +1.3% -4.0% -1.2% Gross NPL/Tot. Gr. Loans,% 3.77% 3.77% 2.66% 2.82% 15.6% 15.4% 4,57% 4,62% Net NPL/Tot. Net Loans,% 1.99% 1.99% 1.49% 1.57% 3.57% 3.53% 1,87% 1,91% Total gross doubtful loans 2,585 2,608 2,360 2,357 2,964 2,873 8,225 8,140 % change on Dec. ‘01 +0.9% -0.1% -3.1% -1.0% 6.07% 6.08% 3.97% 4,14% 21.4% 21.4% 6,87% 6,96% Gross Doubtful Loans/Tot. Gr. Loans,% 3.89% 3.89% 2,42% 2,48% 9.09% 9.31% 3,71% 3,77% Net Doubtful Loans/Tot. Net Loans,% Coverage ratios -on total gross NPL, % 48.8% 48.6% 45.5% 45.8% 80.3% 80.3% 60.7% 60.3% 37.7% 37.9% 40.6% 41.7% 63.5% 62.5% 48.2% 48.1% -on tot. Gross doubtful loans, % (1) Balance due to other Group companies (mainly Parent Company)

  39. RETAIL DIVISION: RESULTS BREAKDOWN BY BANK (Euro mln) UniCredit Banca Other banks (1) Other companies TOTAL (2) TradingLab Interest income (incl. div.) 588 36 -8 11 628 Net non interest income 480 21 63 28 592 Total revenues 1,068 57 55 39 1,219 Operating costs (incl. dep.) 665 33 17 23 738 - of which: Staff costs 361 18 6 5 390 - of which: Other costs 304 15 11 18 348 Net operating income 403 24 38 16 481 Net provisions 49 3 - 3 55 - o/w: Net write-down of loans 41 3 - 2 46 Net income 197 11 23 11 242 Net income for the Group 197 9 23 11 239 Cost/income ratio, % 62.3 58.1 31.3 n.m. 60.6 (1) CR Carpi, Banca dell’Umbria (2) Balance due to roundings

  40. IMPROVED COVERAGE RATIO ON GROSS DOUBTFULLOANS THANKS TO CONSERVATIVE PROVISIONING POLICY,DESPITE THE SLIGHT INCREASE IN TOTAL DOUBTFUL LOANS Net NPLs and Doubtful Loans as % of Total Net Loans Coverage ratios Calculated on Loans at Dec 2002 3.73% 3.71% 3.73% 50.2% 50.0% 1.94% 39.7% 39.5% 1.93% 1.94% 31.12.’02 31.3.’03 31.12.’02 31.3.’03 Net Doubtful Loans/ Total Net Loans Net NPLs/ Total Net Loans On Gross Doubtful Loans On Gross NPLs • Conservative provisioning policy, with increasedcoverage ratio on Gross Doubtful Loans (from 39.5% to 39.7%) • Increase in total provisions (+1.3% on Dec02) more than offsettingthe 0.9% increase of Gross Doubtful Loans, leading to 0.6% increase in Net Doubtful Loans • Increased coverage on performing loans (from 52 bp as at Dec02 to 60 bp) Dec 02 Mar 03 % Ch. (Euro mln) Net NPLs 717 722 +0.7 Other Net Doubtful Loans 661 664 +0.5 Total Net Doub. Loans 1,378 1,386 +0.6

  41. BREAKDOWN OF DEPOSITS AND LOANS VOLUMES (Euro bn) 1Q03 1Q03 53.2 DEPOSITS LOANS to private customers 22.9 32.0 1.9 Current Accounts Current Accounts 4.6 Savings Accounts 18.6 Mortgages 2.7 Repos 2.0 Personal loans 1.8 0.4 CDs & other time deposits Other loans 12.0 Bonds 36.4 LOANS to small business1 11.6 LOANS 5.1 7.5 Current Accounts Current Accounts 5.0 24.8 Mortgages Mortgages 0.1 2.1 Personal loans Personal loans 1.4 2.0 Other loans Other loans Source: Bank of Italy Matrix data 1 Defined following Bank of Italy Matrix definitions, as sum of Imprese produttive, Quasi società non finanziarie con meno di 20 addetti and Famiglie produttrici

  42. TRADINGLAB PROFIT & LOSS (Euro mln) • Good increase in Structured bonds origination (+121% y/y and +47% vs 4Q02), with a slight reduction in the average spread y/y % ch. 1Q03 Net interest income (incl. div.) -7.6 +0.7 Net non interest income 63.1 +1.3 • Lower turnover on Covered Warrants (-62% y/y and -12% vs 4Q02), with increased market share vs. 4Q (38.6% from 35.2%) 55.5 +1.4 Total revenues Administrative costs (incl. depr.) 17.4 -6.2 38.1 +5.3 Operating income • Non captive revenues representing 63.8% of the total, from 59.3% in 2002 - - Net extraordinary income 15.3 -0.3 Taxes 22.7 +8.7 Net income for the Group • Decrease in administrative costs mainly driven by the decrease in advertising expenses 31.3 -253 bp Cost Income ratio, %

  43. Unicredit Banca d’Impresa (Euro mln) UBM TOTAL (2) Other companies (1) Locat (UCI stake) (100%) (88%) (100%) 16 Interest margin (incl. div.) 294 376 52 14 266 -7 478 41 Net non interest income 178 282 472 Total revenues 56 855 45 47 128 14 43 232 Operating costs (incl. dep.) 130 20 8 32 70 - of which: Staff costs 6 102 24 15 58 - of which: Other costs 236 344 11 31 622 Net operating income 71 4 4 Net provisions 62 4 -3 15 - o/w: Net write-down of loans 15 142 328 16 5 Net income 165 142 165 14 325 4 Net income (UCI’s portion) 16.6% 27.1% Cost/income 30.2% 27.2% 76.8% CORPORATE DIVISION: RESULTS BREAKDOWN BY BANK (1) Balance due to roundings

  44. UNICREDIT BANCA D’ IMPRESA: BREAKDOWN OF DEPOSITS AND LOANS VOLUMES (Euro bn) 1Q03 1Q03 7.9 39.3 DEPOSITS LOANS 11.2 7.4 Current Accounts Current Accounts 0.2 Savings Accounts 13.1 Other short term loans 0.3 Repos Mortgages 7.8 Other m/l term loans 7.2 1Q03 39.3 LOANS by class of customer 1.6 Public Bodies 4.5 Large Corporate1 33.2 SMEs2 Source: Bank of Italy Matrix data 1 Turnover > Euro 250 mln 2 Euro 250 mln >Turnover > Euro 2.5-3.5 mln

  45. ASSET QUALITY RATIOS SHOWING A SLIGHT DETERIORATION OF NPLs AS A CONSEQUENCE OF THE MACROECONOMIC ENVIRONMENT Net NPLs and Doubtful Loans as % of Total Net Loans Coverage ratios Calculated on Loans at Dec 2002 2.07% 40.1% 39.5% 36.0% 34.6% 2.12% 2.12% 1.11% 1.13% 1.05% Dec 02 1Q03 Dec 02 1Q03 Net Doubtful Loans/ Total Net Loans Net NPLs/ Total Net Loans On Gross Doubtful Loans On Gross NPLs • Conservative provisioning policy leads to an increased coverage ratio on gross doubtful loans (from 34.6% as at Dec. 02 to 36.0% in 1Q03) • Despite a decrease in Gross Doubtful Loans (-0.3% from Dec. 02 to March 03) we have increased the total provisions by 4.0%, driving down total Net Doubtful Loans by 2.5% % Ch.on Dec02 Dec 02 1Q03 (Euro mln) Net NPLs 431.2 453.2 5.1 Other Net Doubtful Loans 437.4 393.7 -10.0 Total Net Doub. Loans 868.6 846.9 -2.5 • Net NPLs and netwatchlist represent respectively 53.5% and 29.4% of the total net doubtful loans

  46. y/y % ch. EXCELLENT RESULTS OF UBM WITH TOTAL REVENUES, OPERATING INCOME AND NET INCOME INCREASING RESPECTIVELY BY 31%, 33% AND 40% Y/Y 1Q03 (Euro mln) CorporateLab (Corporate Derivatives) 187* +36 • Revenues increase (30.7% y/y) driven by the good performance of the derivative business and the investment and corporate banking activities (the closing of the deal “Autostrade” generated approx. 21 mln) Investment & Corporate Banking 40 +160 Sales & Trading (incl. Institutional Deriv.) 55 -12 Total revenues 282 30.7 • Excellent efficiency, with Cost / Income at 16.6% despite an increase in operating costs (+19.7% y/y) mainly due to a rise in staff costs (e.g.: + 93 employees vs 1Q02) and depreciation (+28.6% y/y). Staff costs 32 33.1 Other costs (incl. depr.) 15 -2.7 Operating income 236 33.2 Net income 142 40.2 C/I Ratio 16.6% -153 bp * Of which Euro 166 mln from sales (51.2% captive and 48.8% non-captive) and Euro 21 mln from trading

  47. UBM VAR CHANNEL UBM Daily VAR(1) and P&L (Jan 2002 – April 2003) Euro mln Daily P&L VaR • Slight widening of the VAR channel starting from January 2003 mainly due to an increase in interest rates derivatives volumes • Still conservative policy in risk measurement • 1Q03 avg. daily VAR at Euro 3.5 mln vs 4.2 in 1Q02 and vs 3.0 in 4Q02 (1) Figure are calculated with a 98-99% asymmetric double tail confidence interval.

  48. PRIVATE & AM DIVISION: 1Q03 INCOME STATEMENT BREAKDOWN BY COMPANY (Euro mln) Unicredit Private Banking PGAM Group Xelion Other companies TOTAL 1 Interest margin (incl. div.) 15 -4 1 6 18 45 126 9 12 192 Net non interest income Total revenues 60 122 10 18 210 37 84 18 10 149 Operating costs (incl. dep.) 22 46 2 6 76 - of which: Staff costs 15 34 12 4 65 - of which: Other costs 23 38 -8 8 61 Net operating income 1 0 0 1 2 Net provisions 1 0 0 0 1 - o/w: Net write-down of loans Net income 12 37 -8 5 46 Net income (UCI’s portion) 12 37 -8 4 45 Cost/Income 61.5% 68.8% n.m. 55.6% 71.0% 45.7% 12.4% n.a. n.a. 27.6% Tax Rate (1) Balance due to roundings

  49. VERY GOOD NET SALES FOR PIONEER IN 1Q03, WITH STRONG RESULTS IN ALTERNATIVE INVESTMENTS. EXCELLENT RESULTS IN APRIL: NET SALES AROUND 50% OF TOTAL 1Q03 2002 AuMs as of 31.12 1Q03 Net Sales 2003 AuMs as of 31.03 1 2003 AuMs as of 30.04 1 April 2003 Net Sales (Euro mln) Italy 80,759 632 79,944 146 81,106 - Captive 65,699 268 64,471 -40 65,368 - Non captive 15,060 364 15,473 186 15,738 International (ex-Italy) 2 3,741 226 3,750 267 4,065 USA 17,665 962 17,651 537 18,772 1,522 284 1,674 82 1,822 New Europe 103,688 2,104 103,019 1,032 105,765 TOTAL PGAM 1,517 107 1,614 63 1,681 Alternative Investments 3 • Positive contribution of all the Business Divisions either in 1Q02 or in April • 1Q03 Net sales +17% y/y, driven by USA (+15.6% y/y at unchanged FX), Italy (+459% y/y) and New Europe (+302.2% y/y) (1) Balance due to market and FX effects (2) Including Momentum. (3) Data already included in the other divisions

  50. NEW EUROPE DIVISION: RESULTS BREAKDOWN BY BANK (Euro mln) Group PEKAO (53.2%) UNI BANKA (76.3%) Group ZABA (81.9%) UniCredit Romania (99.8%) TOTAL (1) BULBANK (85.2%) KFS (50.0%) (UCI stake) 144 12 8 53 2 35 253 Interest margin (incl. div.) Net non interest income 91 8 3 18 2 -1 121 236 20 11 71 4 34 374 Total revenues 129 8 7 42 3 22 211 Operating costs (incl. dep.) 107 66 4 3 25 1 8 - of which: Staff costs 47 3 3 12 1 10 76 - of which: Other costs 106 12 4 28 1 12 163 Net operating income 41 -2 2 -4 1 1 39 Net provisions 41 -2 2 -2 1 0 41 - o/w: Net write-down of loans 58 10 2 25 0 3 98 Net income 31 9 1 19 0 3(2) 64 Net income (UCI’s portion) ROE 16.8% 16.5% 17.7% 20.4% n.m. 12.8% 17.4% 54.9% 38.8% 67.2% 60.3% 73.6% 63.9% 56.4% Cost/income (1) Balance due to roundings (2) Consolidation with proportional method (50%)

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