An introduction
to the UBI Banca Group
December 2015
Disclaimer
This document has been prepared by
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informational purposes only.
It is not permitted to publish, transmit or
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The information, opinions, estimates and
forecasts contained herein have not been
independently verified and are subject to
change without notice.
They have been obtained from, or are
based upon, sources we believe to be
reliable but UBI makes no representation
(either expressed or implied) or warranty
on their completeness, timeliness or
accuracy.
Nothing contained in this document or
expressed
during
the
presentation
constitutes financial, legal, tax or other
advice, nor should any investment or any
other decision be solely based on this
document.
This document does not constitute a
Page 1
solicitation,
offer,
invitation
or
recommendation to purchase, subscribe or
sell for any investment instruments, to
effect any transaction, or to conclude any
legal act of any kind whatsoever.
This document may contain statements
that are forward-looking: such statements
are based upon the current beliefs and
expectations of UBI and are subject to
significant risks and uncertainties. These
risks and uncertainties, many of which are
outside the control of UBI, could cause the
results of UBI to differ materially from those
set forth in such forward looking
statements.
Under no circumstances will UBI or its
affiliates,
representatives,
directors,
officers and employees have any liability
whatsoever (in negligence or otherwise) for
any loss or damage howsoever arising
from any use of this document or its
contents or otherwise arising in connection
with the document or the above mentioned
presentation.
For further information about the UBI
Group, please refer to publicly available
information, including Annual, Quarterly
and Interim Reports.
By receiving this document you agree to be
bound by the foregoing limitations.
Please be informed that some of the
managers of UBI involved in the drawing
up and in the presentation of data
contained in this document either
participated in a stock option plan and were
therefore assigned stock of the company or
possess stock of the bank otherwise
acquired. The disclosure relating to
shareholdings of top management is
available in the half year and the annual
reports.
Methodology
All data are as at 30th September 2015
unless otherwise stated.
Agenda
The UBI Banca Group
Background
UBI Banca and its Peers
UBI Banca’s profile in a snapshot
The Group Structure
Presence in Italy
The UBI Banca International Network
Contacts
Annexes
Page 2
Background

Unione di Banche Italiane Spa (“UBI Banca”) was formed following the merger of the skills and experience of
the BPU Banca and Banca Lombarda e Piemontese Groups (1st April 2007)

The history of UBI Banca is marked by a succession of mergers which have led banks with strong roots in local
communities to the significant reality of today
Birth of the
“Banca Mutua
Popolare della
Città e Provincia
di Bergamo” ,
subsequently
renamed “Banca
Popolare di
Bergamo” (BPB)
1869
1883
Birth of the
“Credito Agrario
Bresciano”
(CAB)
Page 3
Birth of the
“Società per la
Stagionatura e
l’Assaggio delle
Sete ed Affini”
subsequently
renamed “Banca
Popolare
Commercio e
Industria” (BPCI)
1888
1888
Birth of the
“Banca San Paolo
di Brescia” (BSPB)
Merger of BPB and
“Credito Varesino”
(BPB-CV)
1992
1963
BSPB acquires
“Banca di Valle
Camonica” (BVC)
Acquisition of “Banca
Popolare di Ancona”
(BPA) by BPB-CV. Birth
of the BPB-CV Group
1996
1992
CAB acquires
“Banco di San
Giorgio” (BSG)
Acquisition of
“Banca
Carime” by
BPCI
2001
Birth of the “BPU
Banca Group” from
the integration of
BPB-CV and BPCI
2003
2000
Acquisition of
“Banca Regionale
Europea”* by
1998
Merger of CAB and BSPB Banca Lombarda.
The Group takes
with the creation of
the name of
“Banca Lombarda” as
“Banca
parent company and
Lombarda e
contribution of branch
network of CAB and BSPB Piemontese
Group”
to “Banco di Brescia”0
* Banca Regionale Europea was created in 1994 following the merger between “Cassa di Risparmio di Cuneo” and “Banca del
Monte di Lombardia”
1st April 2007
Birth of
“UBI Banca”
following the
merger of the
BPU Banca
Group and the
Banca
Lombarda e
Piemontese
Group
12 Oct
2015: UBI
becomes a
Joint Stock
Company
Background

UBI Banca is a joint stock company as from the 12th of October 2015. The transformation from co-operative was approved by a
general meeting of the shareholders on 10th October 2015, after a recent Law dated March 2015 established that cooperative
banks with total assets above 8€ bln must transform into Joint Stock Companies.

UBI Banca is listed on the Milan Stock Exchange and included , among others, in the FTSE/MIB and in the FTSE4Good indexes.

UBI Banca’s governance model is based on a “dualistic” system. Under this dualistic governance system, the shareholders
appoint a Supervisory Board (strategy and supervision); the Supervisory Board, in turn, appoints a Management Board (day-byday management of the bank)
51.3
30.3
Market Capitalisation* as at
2015 (EUR bln)
15th
December
Source: “Il Sole 24ore” – Italian Financial Newspaper –
Dated 16th December 2015
* Total shareholders (voting and non voting) number around 155,000
Page 4
#3
5.5
4.4
3.9
3.5
3.3
UBI Banca and its Peers
No. of branches as at 30th September 2015
Total assets as at 30th September 2015 (€ bln)
7,055
874
5,593
668
2,219
#5
1,813
1,561
1,245
123
655
Customer loans as at 30th September 2015 (€ bln)
116
61
50
Total direct funding as at 30th September 2015 (€ bln)
588
474
359
345
113
#4
#4
84
123
79
43
Page 5
#5
170
Source: Press releases and periodic reports
33
89
86
46
37
UBI Banca’s profile in a snapshot: predominant retail business, solid capital
base and low risk profile
 3rd Italian commercial banking Group by market capitalization
Strong
competitive
positioning
Solid Capital
and Balance
Sheet Position
 EUR 85.3 bn customer lending and EUR 89.0 bn direct funding (loan/deposit ratio: 94.2%)
 As at 30 June 2015, 81% of loans to customers were granted in Northern Italy, 10.7% in Central Italy
and 8.3% in Southern Italy, while 73.2% of customer deposits came from Northern Italy, 12.1% from
Central Italy and 14.7% from Southern Italy
 Capital ratios as at 30 Sept 2015:
CET 1 ratio phased in: 13% vs. 9.5% SREP requirement disclosed in Feb ‘15
CET 1 ratio fully loaded under Basel 3 rules: 12.56%
 Leverage ratio under Basel 3 (tier one capital / (on- and off-balance-sheet assets)) is at 6.22% phased in,
6.04% fully loaded
 Sound Liquidity position: the Group already complies with the Net stable Funding Ratio and Liquidity
Coverage Ratio as per Basel 3 requirements (also net of TLTRO)
Good Asset
Quality
 Good asset quality compared to the Italian banking system
 Annualised cost of credit of 89 bps of total loans vs. 97 bps of Italian Peers**
 Focus on traditional banking activities: Customer loans/total assets at 72.5%
Low Risk Profile
 Funding mainly from own customer base (approx. 80%); limited recourse to institutional markets
 Financial assets/total assets: approx. 17%. Italian Govies represent approx. 16% of total assets
Page 6
Figures as at 30th September 2015 unless otherwise stated
* Data referred to banking perimeter only.
** UCG, ISP, BP, MPS, BPER and BPM
The Group Structure
UBI BANCA provides management, co-ordination, control and supply of centralized services to the network
banks (single IT System, centralised risk management, centralised finance and treasury, commercial
coordination, credit coordination, logistics, purchasing, on line banking, etc...)
NETWORK BANKS
MAIN PRODUCT COMPANIES
350 branches
288 branches
Northern
Italy
196 branches
207+3* branches
65 branches
Central
Italy
208 branches
Southern
Italy
216 branches
**
21 branches, ~ 809
financial advisors
100.00%
100.00%
83.76% (1)
74.77% (2)
98.16%
ASSET MANAGEMENT UBI Pramerica
(partnership with Prudential US)
FACTORING
UBI Factor
LEASING
UBI Leasing
LIFE BANCASSURANCE Lombarda Vita (partnership with Cattolica)
Aviva Vita Spa
Aviva Assicurazioni Vita Spa
99.57%
99.99%
100.00%
Information updated as at 30 September 2015, unless otherwise stated
* indicates branches outside Italy
**Merger between IW Bank and UBI Private Investment completed on 25 May 2015
Page 7
1) moreover, 16.24% of capital held by Fondazione Banca del Monte di Lombardia
2) further 24.90% of Banca Regionale Europea capital held by Fondazione Cassa di Risparmio di Cuneo and the rest by minority shareholders
8
Presence in Italy
Introduction to the UBI Banca Group:
Predominant Retail Business and Strong Northern Italian Franchise
9
1
1
758
Approx. 3.6 million clients, mainly retail
27
1,555 branches, of which 758 in Lombardy (which
generates over 22.3% of Italian GDP)
169
37
43
7
Market share in terms of branches above 20% in
some of the richest Provinces such as Bergamo,
Brescia and Varese
80
18
106
17
6
78
94
19
1
84
Current
Market Shares*
Branches accounts
& deposits
%
Loans
Bergamo
Brescia
Varese
Cuneo
38.8
34.4
21.5
16.5
22.6
22.0
24.2
20.4
30.2
25.9
27.4
17.6
National market share of 5.1% in terms of branches
1,555 branches in Italy + 6 branches abroad
As at 30th September 2015
Page 8
*
Market shares calculated as at 30th June 2015 in terms of branches and as at
31st December 2014 in terms of volumes.
Agenda
UBI Banca International Network
International Network
Presence in the world
Page 9
International Network
COMMERCIAL BANKS
FOREIGN BRANCHES
MENTON, NICE AND ANTIBES
(Banca Regionale Europea)
REPRESENTATIVE
OFFICES
SUBSIDIARIES
FOREIGN BRANCHES
KRAKOW
(UBI Factor)
SHANGHAI
(Zhong Ou Asset
Management Company)
MOSCOW
SAO PAULO
MUMBAI
SHANGHAI
HONG KONG
VIENNA
(Business Consultant)
NEW YORK
(Upcoming opening 2015)
FOREIGN BANKS
Head office in Luxembourg
SUBSIDIARIES
UBI TRUSTEE SA
(Luxembourg)
Page 10
BRANCHES
LUXEMBOURG
MADRID
MUNICH
CASABLANCA
(Upcoming opening 2015)
DUBAI
2015 upcoming opening of
Representative Office New York
Representative Office Casablanca
Presence in the world
Munich
UBI Banca International
Branch
Krakow
UBI Factor Branch
Vienna
Business Consultant
Moscow
Representative Office
Luxembourg
• UBI Banca International
• UBI Trustee SA
• UBI Management Co SA

 
Antibes, Menton, Nice
Banca Regionale Europea
Branches

Shanghai
Representative Office

Madrid
UBI Banca International
Branch



Shanghai
Zhong Ou Asset Management
Company Co. Ltd*
Hong Kong
Representative Office

São Paulo
Representative Office
* Joint-venture in which UBI Banca holds 35% of the total share.
Page 11
Dubai
Representative Office
Mumbai
Representative Office
Agenda
Contacts
UBI Banca Correspondent Banking
Representative Offices Contacts
Page 12
Sergio Passoni
UBI Banca
Head of Global Transaction and Operations
Isabella Moavero - Head of Correspondent Banking and Representative Offices
Correspondent Banking - [email protected]
Alistair Newell
Relationship Manager
[email protected]
• Indian Subcontinent, China & Far East, Oceania
Ernst Rolf Hartmann
Relationship Manager
[email protected]
• North America, Central America, South America,
Caribbean, Israel
Page 13
Lorenzo Tassini
Relationship Manager
[email protected]
• Turkey, Middle East, Africa, Europe & CIS Countries
Marco Camozzi
Relationship Manager
[email protected]
• Global Players – Responsible for relationships with multiregional banking groups & Special Projects
Representative Offices Contacts
MUMBAI
Ms Rajeshree Balsari
[email protected]
92 Mittal Chambers, 9th Floor,
Nariman Point,
400 021 Mumbai - India
Tel. +91 22 22023601
Fax +91 22 22023603
MOSCOW
HONG KONG
SHANGHAI
Mr Andrea Croci
Ms Lu Bo
Mr Luigi Landoni
[email protected]
[email protected]
Suite 2911, Tower Two,
Times Square 1, Matheson St. Causeway Bay Hong Kong S.A.R.
The Center
Suite 3304
989, Changle Road
200031 Shanghai – China
Office 113, Level 1, Tower 1
Al Fattam Currency House,
Dubai Intl Financial Centre
Dubai, UAE
P.O. BOX 506989
Tel. +852 2878 7393
Fax +852 2878 7932
Tel +86 21 61675333
Fax +86 21 61675582
SAO PAULO
VIENNA (Business Consult.)
Mr Ferdinando Pelazzo
Mr Isidoro Guerrerio
Ms Annick Stockert
[email protected]
[email protected]
[email protected]
.it
10, Nikolskaya str., 4th floor,
Business Centre “Nikolskaya
Plaza”
109012 Moscow - Russia
Al. Ministro Rocha Azevedo,
456 Ed. Jaù - 4° And.Cj.402
CEP 01410-000 São Paulo Brazil
Seilerstätte 16/11
1010 Vienna
Austria
Tel. +7 495 725 4466
Fax +7 495 725 4465
Tel. +55 11 3063 0454
Fax +55 11 3063 3785
Tel. +43 1 514 37 26
Fax +43 1 514 37 60
Page 14
DUBAI
(since Aug 2015)
Tel +971 4 3277289
Fax +971 4 3277290
Agenda
Annex
Group Results
Product Companies
Group BIC codes
Page 15
The UBI Banca Group: consolidated results as at 30th September 2015
MAIN INCOME STATEMENT ITEMS
Figures in € mln
Net interest income
9M14
9M15
% change
9M15 vs 9M14
1,376
1,246
Net commission income
908
970
6.8%
Net result from finance
151
139
(7.7%)
14
53
28
100.8%
(47.6%)
29
23
(19.6%)
8
13
4
(56.1%)
(73.3%)
Other income items
102
93
(8.6%)
OUTLOOK42
32
31
(24.9%)
(2.4%)
Operating income
2,558
2,467
(3.5%)
Staff costs
(977)
(973)
(0.4%)
Other administrative expenses
(458)
(455)
(0.8%)
 The overall
income
be higher than(10.1%)
in
822 trend for operating
843
758 is forecast to(7.7%)
the third quarter although with differing contributions from the
(329)
(320)
(318)
(3.3%)
(0.6%)
individual components:
Net impairment losses on property, equipment and investment
property and intangible assets
(128)
(115)
(10.2%)
(1,563)
(1,542)
(1.3%)
995
925
(7.0%)
(626)
(558)
(10.9%)
Profits of equity-accounted investees
Operating expenses
Net operating income
Net impairment losses on loans
(9.5%)
% change
% change
Profit
net of non
recurring
items to
136 million,
the
3Q14
2Q15
3Q15
3Q15 vs 3Q14
3Q15 vs 2Q15
highest half year results since 2H2008.
(14.8%) (+17.2%
(4.3%)
Stated468
Profit for 417
the period399
to 124.4 million
299
328
300
0.7%
(8.4%)
vs 106.2 in 1H2014)
Net impairment losses on other financial assets and liabilities
(2)
(6)
n.s.
Net provisions for risks and charges
(4)
(48)
n.s.
Profits (losses) from disposal of equity investments
(0)
0
n.s.
362
314
(13.4%)
Taxes on income for the period from continuing operations
(187)
(128)
(31.8%)
Profits for the period attributable to non-controlling interests
(25)
(23)
(9.3%)
(1)
n.s
Pre-tax profit from continuing operations
Charges for exit incentives
(net of tax and non-controlling interests)
Profit for the period
150
162
8.1%
Profit for the period NET OF NON-RECURRING ITEMS
175
176
0.3%
PPA allocated line by line
Page 16
(147)
(165)
(142)
(3.7%)
(14.2%)
‐
the pressure on net interest income may continue, although to a
(42) extent than
(39)
(37)
(13.0%)
(5.9%)
lesser
in the third quarter,
in a background
of limited
growth in loans and strong competition on spreads at system level
(518)following the
(524)
(497)
(5.3%)
and
continuation
of the strategy(4.2%)
to re-position the
proprietary
securities
portfolio;
303
319
262
(13.8%)
(17.9%)
‐
net
income
from the usual
(197)fee and commission
(199)
(169) should benefit
(14.5%)
(15.3%)
positive
seasonal
factors
normally
experienced
in
the
last quarter
(0)
(2)
(3)
n.s.
28.2%
of the year;
‐
a favourable
environment
for containing
sovereignn.s.
risk could allow n.s.
0
0
0
better results to be achieved for trading and hedging activity than
93
72
(31.7%)
(22.9%)
in 105
the previous quarters.
(1)
(25)
(19)
n.s.
(24.9%)
(45.1%)
(22.9%)
 Actions (52)
undertaken in (37)
2015 allow to (29)
confirm the objective
of containing
(9)
(7)
(6)
(40.1%)
operating expenses in line with those for 2014, notwithstanding (25.2%)
the
additional costs related to the contribution to the European Resolution
Fund and the Deposit Guarantee Scheme, estimated at over €30 million
for the current
year.
44
49
38
(14.0%)
(22.6%)
 Improvements in the macroeconomic environment, confirmed by the
leading indicators,
should
losses to be contained
at a level
45
54 allow loan 40
(10.3%)
(26.2%)
lower than in 2014.
Product Companies
UBI Leasing offers its clients financing for asset acquisition such as: instrumental
leasing, real estate leasing, car leasing, aero naval leasing as well as specific insurance
and accessory services.
6.8 bln EUR in net Loans to Customers
UBI Factor offers highly specialized factoring services to companies and public
administrations. The company is based in Milan with a capillary structure across the
national territory and is present also in Poland with its Krakow subsidiary. Since 1984
UBI Factor is part of the Factors Chain International network which allows it to retain a
presence in more than 75 countries and with more than 270 foreign partners.
6.1 bln EUR Turnover; 1.9 bln EUR net Loans to Customers
Asset Management – Joint Venture with Prudential US
UBI Pramerica develops, manages, markets and distributes a wide range
of financial products and services dedicated to private customers and institutions. It
has been awarded various international prizes.
41.2 bln EUR in Assets Under Management
Page 17
Data as at 30.09.2015 unless otherwise stated
Other foreign Banks
Recent merger between IW Bank (market leader in online trading in Italy with a strategy
based on three fundamental objectives: continuous product/service innovation, constant
development of technological platforms, professional support for the customer) and UBI
Private Investment, the network of financial agents of the UBI Group
Qualified and specific services offered to Corporate and Private customers
Page 18
Group BIC codes
BEPOIT21
BCABIT21
BREUITM1
POCIITM1
BLOPIT22
BPAMIT31
CARMIT31
BVCAIT21
BLPIIT21
UBIBESMM
Madrid Branch
BEPODEMM
Munich Branch
CABILULL


Page 19
BIC ACTIVE
BIC NON ACTIVE