An introduction
to the UBI Banca Group
March 2015
Disclaimer
This document has been prepared by
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informational purposes only.
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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
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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 31st December 2014
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.
UBI Banca is the only bank of the Group which is listed on the Milan Stock Exchange and included in the
FTSE/MIB index.
The said principles
are equally applied
to listed and nonlisted popular banks
No one may hold shares amounting to more than 1% of the share capital (with the exception of collective
investment companies)
As at December 2014, voting shareholders number nearly 79,237*
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)
48.9
35.3
Market Capitalisation as at
(EUR bln)
5th
March 2015
Source: “Il Sole 24ore” – Italian Financial Newspaper –
Dated 6th March 2015
* *As at 19th May 2014 (ex dividend date), total shareholders (voting and non voting) number 152,000
Page 4
#3
6.3
4.9
3.7
3.5
2.8
UBI Banca and its Peers
No. of branches as at 31st December 2014
Total assets as at 31st December 2014 (€ bln)
7,616
844
5,867
646
2,226
#5
1,878
1,676
1,274
123
706
Customer loans as at 31st December 2014 (€ bln)
122
61
48
Total direct funding as at 31st December 2014 (€ bln)
561
471
360
339
120
#4
#4
86
126
80
44
Page 5
#5
183
Source: Press releases.
32
93
87
46
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 85.6 bn customer lending and EUR 93.2 bn direct funding (loan/deposit ratio: 91.9%)
 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 December 2014: CET 1 ratio (phased in): 12.33%; CET 1 ratio (fully loaded)
under Basel 3 rules: 11.5%
 Leverage ratio under Basel 3 (tier one capital / (on- and off-balance-sheet assets)) is at 5.78% phased
in, 5.42% 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 LTRO/TLTRO)
Good Asset
Quality
 Good asset quality compared to the Italian banking system
 Cost of credit of 108 bps of total loans
 Focus on traditional banking activities: Customer loans/total assets at 70.3%
Low Risk Profile
Page 6
 Funding mainly from own customer base (over 80%); limited recourse to institutional markets
 Financial assets/total assets: 19%. Italian Govies represent approx.18% of total assets
Figures as at 31st December 2014 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...)
8 DOMESTIC NETWORK BANKS
351 branches
288 branches
Northern
Italy
196 branches
208+3* branches
66 branches
Central
Italy
208 branches
Southern
Italy
216 branches
**
Page 7
Information updated as at 19 January 2015
*indicates branches outside Italy
**Merger announced to be completed in 1H2015
21 branches
713 financial
advisors
MAIN PRODUCT COMPANIES
100.00%
100.00%
83.76% (1)
74.76% (2)
82.96% (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
99.53%
ON LINE TRADING
99.99%
100.00%
IW Bank **
Presence in Italy
Introduction to the UBI Banca Group:
Predominant Retail Business and Strong Northern Italian Franchise
1
1
762
169
38
Approx. 3.7 million clients, mainly retail
9
27
1,560 branches, of which 762 in Lombardy (which
generates over 20% of Italian GDP)
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 19 January 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)
2015 opening of Rep Offices in New
York and Dubai
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

 
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
Page 11
Mumbai
Representative Office
* Joint-venture in which UBI Banca holds 35% of the total share. (Other partners: Guodu Securities Co. Ltd. holds 30% of the
total share, Beijing Baijun Investment Co., Ltd holds 30% of the total share and WinnerKey Investment Co. Ltd holds 5% of
the total share). At 31st December 2013, the ex Lombarda China Fund Management Co., actives in the management of retail
funds and of IPO, handled an AUM of 14.5 billions of Rmb (about 1.7 billions of euro).
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.
6.9 bln EUR in net Loans to Customers
Page 16
Data as at 31.12.2014
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.
7.7 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.
35.4 bln EUR in Assets Under Management
Online Trading
IW Bank is a 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.
Assets under management of EUR 569.7 mln.
Page 17
Data as at 31.12.2014, unless otherwise stated
FY14 Results: improving core profitability and cost control confirmed
Growth in core revenues and operating income in 2014 compared with 2013
Consolidated profit net of non-recurring items of 146.5 mln/€, up 46.2% compared with 100.2
mln/€ in 2013
Consolidated results (stated)
PROPOSED DIVIDEND PER SHARE
(€)
0,05
0,06
0,08
 Operating income of 3,409.6 mln/€ (-0.8% YoY)
Net interest income of 1,818.4 mln/€ (+3.9% YoY)
Net fee and commission income of 1,226.6 mln/€ (+3.3% YoY)
Finance result of 199.7 mln/€ (324.6 mln/€ in 2013)
 Constantly lower operating expenses down to 2,108.2 mln/€ (-1.6%) - 6th consecutive year
of reduced costs
 Net operating income of 1,301.4 mln/€ (+0.5%)
 Annualised loan loss rate of 108 bps or 929 mln/€ inclusive of the results of the AQR (107
bps or 943 mln/€ in 2013)
 New inflows from performing loans to deteriorated status down significantly by 36.2% vs
2013
 Profit on continuing operations before tax of €449.1 mln/€ (+57.4%)
 A consolidated loss for the Group of 725.8 mln/€ compared with a profit of 250.8 mln/€ in
2013, following approximately 883 mln/€ of net impairment losses on goodwill and intangible
assets (no impact on real profitability, +32bps of CET1 following booking of deferred taxes in
income statement on fiscally recognised goodwill, lower PPA (-6 mln/€) starting from 2015)
 Approximately 80% of the redundancies planned under the Framework Agreement signed
with trade unions on 26th Nov ‘14 (a total of 500 workers) were complete as at 31st Jan ‘15
 Loans at 85.6 bln/€, up 0.8% compared with Sept ‘14 – Positive trend confirmed in Jan ‘15
 Direct funding at 93.2 bln/€, up 6.1% compared with Sept ‘14
Page 18
FY12
FY13
FY14
Cash dividend always paid through the crisis
UBI Banca Main Consolidated figures: Balance Sheet
Main balance sheet
figures
Dec ‘13
Dec ‘14
COMPREHENSIVE ASSESSMENT RESULTS 26TH Oct 14
Figures in billions of euro
UBI
Italy
SSM*
Loans to customers
88.4
85.6
CET 1
as at 1st Jan 2014
12.25%
10.17%
11.77%
Direct funding
92.6
93.2
AQR adjusted
CET 1
11.82%
9.47%
11.35%
CET 1 after
adverse scenario
8.20%
6.14%
8.37%
of which: Direct Funding from
Ordinary Customers (current
accounts + retail bonds)
74.7
74.0
of which: Direct Funding from
Institutional Customers
17.9
19.3
Net Interbank exposure
(not included in Direct Funding –
mainly LTRO)
Total assets
10.9
10.0
The Group’s solid capital strength is confirmed:
121.8
71.2%
70.3%
71.7
75.9
of which: AUM
39.6
43.3
of which: AUC
32.1
32.5
Indirect funding (AuM + AuC)
Page 19
Page 20
+ 1.7
bln/€
CAPITAL RATIOS AS AT 31st Dec 14
124.2
Loans to customers / total
assets
Capital excess after AQR
and adverse stress test
 Common Equity Tier 1 ratio “phased in” as at 31st
December 2014: 12.33% following update of risk
parameters (13% as at 30/09/2014)
 Pro forma Common Equity Tier 1 ratio “fully loaded”
estimate of 11.5% (12% as at 30/09/2014)
 Basel 3 leverage ratio: “phased in” at 5.78%,
“fully loaded” of 5.42%
UBI Banca Main Consolidated figures: P&L & Outlook
MAIN INCOME STATEMENT ITEMS
Figures in € mln
OUTLOOK
FY13
FY14
% change
Net interest income
1,751
1,818
Net commission income
1,187
1,227
3.3%
325
200
(38.5%)
Net result from finance
175
165
(5.6%)
Operating income
3,437
3,410
(0.8%)
(1,302)
(1,302)
0.0%
Other administrative expenses
(660)
(635)
(3.8%)
Net impairment losses on property, equipment and investment property
and intangible assets
(180)
(171)
(4.9%)
(1.6%)
Staff costs
Operating expenses
(2,142)
(2,108)
Net operating income
1,295
1,301
0.5%
Net impairment losses on loans
(943)
(929)
(1.5%)
Net impairment losses on other financial assets and liabilities
(48)
(9)
(81.8%)
Net provisions for risks and charges
(12)
(9)
(26.7%)
(7)
94
n.s.
57.4%
Profits (losses) from disposal of equity investments
Pre-tax profit from continuing operations
285
449
Taxes on income for the period from continuing operations
55
(187)
n.s.
Profits for the period attributable to non-controlling interests
(26)
(29)
11.7%
Profit/loss for the period attributable to the shareholders of the Parent
before charges for exit incentives and impairments on tangible and
intangible assets
315
233
(38)
(883)
Impairment on tangible and intangible assets
(net of tax and non-controlling interests)
Charges for exit incentives
n.s.
Profit for the period
251
-726
n.s.
Profit for the period NET OF NON-RECURRING ITEMS
100
147
Page 20
46.2%
3Q14interest4Q14
net
income4Q14
will
be
vs 4Q13
affected
by a lower
4Q14 vs 3Q14
contribution from the securities portfolio, mainly as a result of
459
468
442
(3.8%)
(5.5%)
positions
that299matured 318
in the held-to-maturity
portfolio in the
299
6.5%
6.7%
last 156
months of14 2014. A49recovery(68.5%)
in volumes254.7%
of business with
customers
should
make42it possible
37
42
15.9%to increase
2.1%net interest
income
business with
951 from 822
852 customers,
(10.4%) even in the
3.7% presence of
strong
on
and help offset
(327) competition
(329)
(325)pricing, (0.7%)
(1.1%) the lower
contribution
forecast from
(166)
(147)
(177) the securities
6.5% portfolio
20.2%
(45)
(42)
(44)
(3.2%)
2.9%
(25)
(0)
(6)
(74.7%)
n.s.

A
in
could n.s.
allow positive
(8)
0
94
n.s.
n.s.
results to be achieved for trading and hedging activity
again in
105
87
460.8%
(17.3%)
201515

(8)
(9) union agreement
(4)
(47.5%)
(56.7%)
The recent
trade
will help compensate
for the
automatic increases in staff costs, the overall performance of
213 will in 44
(72.7%)
which
any case 83
depend on
the final(17.3%)
outcome of the
renewal of the national trade union contract

The downwards trend for other administrative expenses is
(26)
(76)
193.7%
n.s.
forecast to continue
2
further
205
n.s.
(76)
Page 20
Net fee and commission income should benefit from positive
(538) expected
(518) for assets
(546) under management
1.3%
5.3%
trends
and insurance
413
303
306
(25.7%)
and possible growth in fees and commissions 1.0%
associated with
(366)
(197)
(302)
(17.4%)
53.5%
lending
(25.9%)
(26)
(net of tax and non-controlling interests)
% change

3.9%
Other income items
% change

In4Q13
2015
(1)
decrease
(52)
(38)
149

(5)
sovereign
1
(883)
44
(876)
debtn.s.risk
n.s.
n.s.
n.s.
n.s.
n.s.
n.s.
The slowdown in the pace of new defaulted loans recorded in
45
-29
n.s.
n.s.
201426is expected
to continue
in 2015
and could
favour an
improvement in loan losses compared with 2014
Group BIC codes
BEPOIT21
BCABIT21
BREUITM1
POCIITM1
BLOPIT22
BPAMIT31
CARMIT31
BVCAIT21
BLPIIT21
CABILULL


Page 21
BIC ACTIVE
BIC NON ACTIVE
UBIBESMM
Madrid Branch
BEPODEMM
Munich Branch