An introduction
to the UBI Banca Group
August 2015
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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,
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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
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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 June 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 Scpa (“UBI Banca”) was formed following the merger 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 become the significant reality that exists today and employs approximately 17,800 people.
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
1998
Merger of CAB and BSPB
with the creation of “Banca
Lombarda” as parent
company and contribution of
branch network of CAB and
BSPB to “Banco di Brescia”0
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 Banca Lombarda.
The Group takes the name of
“Banca Lombarda e Piemontese
Group”
* Banca Regionale Europea was created in 1994 following the merger between “Cassa di Risparmio di Cuneo” and “Banca del
Monte di Lombardia”
1st April 2007
Birth of
“UBI Banca”
following the
merger of the
BPU Banca
Group and the
Banca
Lombarda e
Piemontese
Group
Background
UBI Banca is a cooperative bank (“società cooperativa”). Its capital is represented by ordinary shares . Shareholders are divided
between unregistered shareholders (who have a right to share in dividends, options, etc. but have no voting rights) and registered
shareholders (who have both the right (i) to share in dividends, options, etc., and (ii) to vote at general meetings). To become a
registered shareholder, one must own and hold at least 250 shares and apply to the management board. Each registered shareholder
has only one vote. No one may hold shares amounting to more than 1% of the share capital (with the exception of collective
investment companies). As at June 2015, voting shareholders number nearly 81,750*.
A recent Law (March 2015) has established that cooperative banks with total assets above 8€ bln must transform into Joint Stock
Companies. Bank of Italy has recently issued instructions (11 June) and the Popolari involved have 18 months to transform into Joint
Stock Companies. UBI Banca, which totals €120 bln of total assets, is one of the Banks involved in this process.
UBI Banca is listed on the Milan Stock Exchange and included in the FTSE/MIB index.
UBI Banca’s governance model is based on a “dualistic” system. Under this dualistic governance system, the registered shareholders
appoints a Supervisory Board (strategy and supervision); the Supervisory Board, in turn, appoints a Management Board (day-by-day
management of the bank)
55.2
35.3
Market Capitalisation* as at
(EUR bln)
27th
August 2015
Source: “Il Sole 24ore” – Italian Financial Newspaper –
Dated 28th August 2015
* Total shareholders (voting and non voting) number around 155,000
Page 4
#3
6.5
5.7
5.4
4.2
3.8
UBI Banca and its Peers
No. of branches as at 30th June 2015
Total assets as at 30th June2015 (€ bln)
7,121
875
5,608
668
2,223
#5
1,813
1,530
1,274
125
654
Customer loans as at 30th June 2015 (€ bln)
119.5
61
49
Total direct funding as at 30th June 2015 (€ bln)
581
474
365
344
117
#4
#4
85
126
80
43
Page 5
#5
178
Source: Press releases.
33
94
84
46
37
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
208+3* branches
66 branches
Central
Italy
208 branches
Southern
Italy
216 branches
**
21 branches, ~ 772
financial advisors
100.00%
100.00%
83.76% (1)
74.77% (2)
84.13% (3)
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
99.54%
99.99%
100.00%
Information updated as at 31 March 2015, unless otherwise stated
* indicates branches outside Italy
**Merger between IW Bank and UBI Private Investment completed on 25 May 2015
Page 6
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
3) moreover, 5.50% of capital held by Cattolica Assicurazioni and the rest by minority shareholders
7
Presence in Italy
Introduction to the UBI Banca Group:
Predominant Retail Business and Strong Northern Italian Franchise
9
1
1
759
Approx. 3.6 million clients, mainly retail
27
1,557 branches, of which 759 in Lombardy (which
generates over 20% of Italian GDP)
169
38
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
40.7
34.8
23.2
15.5
22.4
21.9
24.3
20.3
30.5
26.7
28.0
17.9
National market share of 5.1% in terms of branches
1,557 branches in Italy + 6 branches abroad
As at 30th June 2015
Page 7
*
Market shares calculated as at 31st March 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 8
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 9
BRANCHES
LUXEMBOURG
MADRID
MUNICH
DUBAI
2015 upcoming opening of
Representative Office
New York
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 10
Dubai
Representative Office
Mumbai
Representative Office
Agenda
Contacts
UBI Banca Correspondent Banking
Representative Offices Contacts
Page 11
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
Lorenzo Tassini
Relationship Manager
[email protected]
• Turkey, Middle East, Africa
Marco Camozzi
Relationship Manager
[email protected]
• Global Players – Responsible for relationships with multiregional banking groups & Special Projects
Riccardo Rossi van Lamsweerde
Relationship Manager
[email protected]
Page 12
• Europe & CIS Countries
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 13
DUBAI
(since Aug 2015)
Tel +971 4 3277289
Fax +971 4 3277290
Agenda
Annex
Foreign Banks
Product Companies
Group Results
Group BIC codes
Page 14
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.
4.3 bln EUR Turnover; 2.1 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.
27.6 bln EUR in Assets Under Management
Page 15
Data as at 30.06.2015 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 16
UBI Banca’s profile in a snapshot: predominant retail business, solid capital
base and low risk profile
 1st Italian cooperative banking Group by market capitalization
Strong
competitive
positioning
Solid Capital
and Balance
Sheet Position
 EUR 85.3 bn customer lending and EUR 94.3 bn direct funding (loan/deposit ratio: 90.5%)
 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 June 2015:
CET 1 ratio phased in: 12.94% vs. 9.5% SREP requirement
CET 1 ratio fully loaded under Basel 3 rules: 12.33%
 Leverage ratio under Basel 3 (tier one capital / (on- and off-balance-sheet assets)) is at 6.14% phased in,
5.88% 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 91 bps of total loans vs. 98 bps of Italian Peers**
 Focus on traditional banking activities: Customer loans/total assets at 71.38%
Low Risk Profile
 Funding mainly from own customer base (over 76%); limited recourse to institutional markets
 Financial assets/total assets: 18.3%. Italian Govies represent approx. 17% of total assets
Page 17
Figures as at 30th June 2015 unless otherwise stated
* Data referred to banking perimeter only.
** UCG, ISP, BP, MPS, BPER and BPM
The UBI Banca Group: consolidated results as at 30th June 2015
MAIN INCOME STATEMENT ITEMS
% change
1H15 vs 1H14
1H14
1H15
Net interest income
909
847
Net commission income
610
669
9.7%
Net result from finance
137
111
(18.7%)
Profits of equity-accounted investees
21
20
(5.3%)
Other income items
60
62
2.7%
Operating income
1,736
1,709
(1.6%)
Staff costs
(648)
(655)
1.1%
Other administrative expenses
(311)
(313)
0.6%
(85)
(78)
(8.7%)
(1,044)
(1,046)
0.1%
692
663
(4.1%)
Figures in € mln
Net impairment losses on property, equipment and investment
property and intangible assets
Operating expenses
Net operating income
Net impairment losses on loans
(6.8%)
(429)
(389)
(9.3%)
Net impairment losses on other financial assets and liabilities
(2)
(3)
67.3%
Net provisions for risks and charges
(3)
(29)
n.s.
Profits (losses) from disposal of equity investments
(0)
0
n.s.
257
242
(6.0%)
Taxes on income for the period from continuing operations
(135)
(99)
(26.8%)
Profits for the period attributable to non-controlling interests
(16)
(17)
8.7%
(1)
n.s.
Pre-tax profit from continuing operations
Charges for exit incentives
(net of tax and non-controlling interests)
Profit for the period
106
124
17.2%
Profit for the period NET OF NON-RECURRING ITEMS
131
136
3.9%
Page 18
Profit net of non recurring items to 136 million, the
highest half year results since 2H2008
Stated Profit for the period to 124.4 million (+17.2%
vs 106.2 in 1H2014)
Profits from equity-accounted investees, include 8.5 mln/€ from Zhong Ou in
1H15 (vs. 0.7 mln/€ in 1H14) thanks to strong growth in AuM reaching close to
€18 billion at end June15
OUTLOOK
 The actions undertaken in the first half and the expected progressive
improvement in the macroeconomic environment should allow a further
increase in new grants of loans in the second half of the year in order to counter
the strong competitive pressure on pricing.
 Net fee and commission income should benefit year-on-year from positive
trends expected for assets under management and insurance and from possible
growth in fees and commissions associated with the trend for lending.
 The continuation of the favourable evolution of the general macroeconomic
environment and, hopefully, the absence of further tensions in the more critical
countries of the euro area could allow a result to be achieved for trading and
hedging activity in line with that of the first half.
 Actions planned for 2015 allow to confirm our objective of containing operating
expenses in line with those for 2014, notwithstanding the additional costs in
relation to the contribution to the European Resolution Fund and the Deposit
Guarantee Scheme, estimated at over €30 million for the entire year and which
will be recognised in the item “other administrative expenses” once final
quantification, expected before year-end, is received.
 The improvements in the macroeconomic environment and the exit from
recession, recently confirmed by the principal economic research institutes,
should allow loan losses to be contained at a level lower than in 2014
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