An introduction
to the UBI Banca Group
June 2015
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Page 1
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This document may contain statements
that are forward-looking: such statements
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For further information about the UBI
Group, please refer to publicly available
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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 31st March 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 18,000 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 March 2015, voting shareholders number nearly 81,000*.
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)
54.2
37.7
Market Capitalisation** as at
(EUR bln)
12th
June 2015
Source: “Il Sole 24ore” – Italian Financial Newspaper –
Dated 13th June 2015
Page 4
* Total shareholders (voting and non voting) number around 150,000
** MPS quotations not reported as the Bank is under capital increase
#3
6.7
5.5
4.1
3.7
UBI Banca and its Peers
No. of branches as at 31st March 2015
Total assets as at 31st March 2015 (€ bln)
7,361
840
5,779
682
2,225
#5
1,852
1,560
1,273
126
702
Customer loans as at 31st March 2015 (€ bln)
120
61
49
Total direct funding as at 31st March 2015 (€ bln)
573
483
370
346
123
#4
#4
85
132
81
44
Page 5
#5
188
Source: Press releases.
33
91
86
44
37
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 84.6 bn customer lending and EUR 91.1 bn direct funding (loan/deposit ratio: 92.9%)
 As at 31 December 2014, 81.5% of loans to customers were granted in Northern Italy, 10.2% in
Central Italy and 8.3% in Southern Italy, while 72.5% of customer deposits came from Northern Italy,
12.6% from Central Italy and 14.9% from Southern Italy
 Capital ratios as at 31 Mach 2015:
CET 1 ratio phased in: 12.45% vs. 9.5% SREP requirement
CET 1 ratio fully loaded under Basel 3 rules: 12.20%
 Leverage ratio under Basel 3 (tier one capital / (on- and off-balance-sheet assets)) is at 5.82% phased in,
5.73% 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 90 bps of total loans
 Focus on traditional banking activities: Customer loans/total assets at 70.6%
Low Risk Profile
 Funding mainly from own customer base (over 80%); limited recourse to institutional markets
 Financial assets/total assets: 19.4%. Italian Govies represent approx.18% of total assets
Page 6
Figures as at 31 March 2015 unless otherwise stated
* Data referred to banking perimeter only.
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
351 branches
288 branches
Northern
Italy
196 branches
208+3* branches
66 branches
Central
Italy
208 branches
Southern
Italy
216 branches
**
23 branches, ~ 750
financial advisors
100.00%
100.00%
83.76% (1)
74.76% (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 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
3) moreover, 5.50% of capital held by Cattolica Assicurazioni and the rest by minority shareholders
8
Presence in Italy
Introduction to the UBI Banca Group:
Predominant Retail Business and Strong Northern Italian Franchise
1
1
762
Approx. 3.7 million clients, mainly retail
9
27
1,560 branches, of which 762 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
40.2
35.0
21.0
16.0
22.3
22.5
23.7
23.4
28.7
27.1
27.8
18.4
National market share of 5.4% in terms of branches
1,560 branches in Italy + 6 branches abroad
As at 31st March 2015
Page 8
*
Market shares calculated as at 30th June 2014 .
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)
FOREIGN BANKS
Head office in Luxembourg
SUBSIDIARIES
UBI TRUSTEE SA
(Luxembourg)
Page 10
BRANCHES
LUXEMBOURG
MADRID
MUNICH
MOSCOW
SAO PAULO
MUMBAI
SHANGHAI
HONG KONG
VIENNA
(Business Consultant)
NEW YORK
(Opening 2015)
DUBAI
(Opening 2015)
Presence in the world
2015 opening of
Representative Offices
in New York and Dubai
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
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
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 13
• Europe & CIS Countries
Representative Offices Contacts
HONG KONG
MUMBAI
SHANGHAI
Mr Andrea Croci
Ms Rajeshree Balsari
Ms Lu Bo
[email protected]
[email protected]
[email protected]
Suite 2911, Tower Two,
Times Square 1, Matheson St. Causeway Bay Hong Kong - S.A.R.
92 Mittal Chambers, 9th Floor,
Nariman Point,
400 021 Mumbai - India
The Center
Suite 3304
989, Changle Road
200031 Shanghai – China
Tel. +852 2878 7393
Fax +852 2878 7932
Tel. +91 22 22023601
Fax +91 22 22023603
MOSCOW
SAO PAULO
Tel +86 21 61675333
Fax +86 21 61675582
VIENNA (Business Consultant)
Mr Ferdinando Pelazzo
Mr Isidoro Guerrerio
Ms Annick Stockert
[email protected]
[email protected]
[email protected]
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. +55 11 3063 0454
Fax +55 11 3063 3785
Tel. +43 1 514 37 26
Fax +43 1 514 37 60
Tel. +7 495 725 4466
Fax +7 495 725 4465
Page 14
Agenda
Annex
Foreign Banks
Product Companies
Group Results
Group BIC codes
Page 15
Foreign Banks
Qualified and specific services offered to Corporate customers:
 establishment of international companies
 trustee operations and corporate financing
 payment services
 corporate and syndicated loans
 issuance of bonds and international guarantees
 cash pooling
 factoring
Services offered to Private customers:
 wealth management and investment advisory;
 heritage and personal wealth planning with tailor made financial engineering solutions;
 investment Funds and Sicav;
 financial and asset planning with tailored engineering solutions;
 term deposits in all major currencies,;
 trading and safekeeping of securities on all the major stock and bond markets;
 spot and forward foreign exchange transactions;
 services for the establishment of Trust Companies through UBI Trustee SA based in Luxembourg.
Leasing
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
Page 16
Data as at 31.03.2015
Product Companies
Factoring
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.
1.9 bln EUR Turnover; 2 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.
39.6 bln EUR in Assets Under Management
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
Page 17
Data as at 31.03.2015 unless otherwise stated
The UBI Banca Group: consolidated results as at 31st March 2015
Strength of balance sheet ratios confirmed
CET 1 PHASED IN
CET 1 FULLY LOADED
12.45%
12.20%
12.33%
11.50%
Dec '14
Mar '15
Dec '14
Mar '15
LEVERAGE RATIO
TOTAL CAPITAL
PHASED IN
Phased in
5.78%
Fully loaded
5.82%
5.73%
15.34%
15.29%
5.42%
Dec '14
Page 18
Mar '15
Dec’14 Mar’15
Dec’14 Mar’15
The UBI Banca Group: consolidated results as at 31st March 2015
Income statement
Mln€; LLPs in % of net loans
Operating income
+1.6%
853.4
882.5
821.7
852.0
866.0
COST/INCOME
down to 59.4%
excluding PPA
in 1Q15
Stated net profit
(excluding impairment in 4Q2014)
58.1
75.9
48.1
43.6
7.1
1Q14
2Q14
3Q14
4Q14
1Q15
+1.5%
0.91% 1.06% 0.93%
-4.4%
523.1
518.3
1Q14
2Q14
1.41%
Operating costs
521.2
Loan Loss provisions / Net loans
545.6
1Q14
2Q14
3Q14
1Q15
4Q14
1Q15
+30.6%
0.90%
4Q14
3Q14
Net profit
excluding non recurring items
521.4
59.0
81.7
71.8
44.6
(28.9)
1Q14
2Q14
3Q14
+0.0%
Page 19
Page 20
4Q14
1Q15
1Q14
2Q14
3Q14
+38.4%
4Q14
1Q15
Group BIC codes
BEPOIT21
BCABIT21
BREUITM1
POCIITM1
BLOPIT22
BPAMIT31
CARMIT31
BVCAIT21
BLPIIT21
UBIBESMM
Madrid Branch
BEPODEMM
Munich Branch
CABILULL


Page 21
BIC ACTIVE
BIC NON ACTIVE