Fixed Income Presentation. Milan, 14 May 2018

Transcription

1 Fixed Income Presentation Milan, 14 May 2018

2 Disclaimer This Presentation may contain written and oral forward-looking statements, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of UniCredit S.p.A. (the Company ). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision. The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the Other Countries ), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries. Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Stefano Porro, in his capacity as manager responsible for the preparation of the Company s financial reports declares that the accounting information contained in this Presentation reflects the UniCredit Group s documented results, financial accounts and accounting records. This Presentation has been prepared on a voluntary basis since the financial disclosure additional to the half-year and annual ones is no longer compulsory pursuant to law 25/2016 in application of Directive 2013/50/EU, in order to grant continuity with the previous quarterly presentations. The UniCredit Group is therefore not bound to prepare similar presentations in the future, unless where provided by law. Neither the Company nor any member of the UniCredit Group nor any of its or their respective representatives, directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it. 2

3 Agenda UniCredit at a glance Transform 2019 update P&L results Asset quality Capital position Funding & Liquidity 3

4 Transform 2019 drives tangible improvements. Best first quarter since 2007 Non Core rundown accelerated to 2021 Core Bank solid performance with Group Core RoTE at 10.4%, up 1.1p.p. Y/Y. Group Core gross NPE ratio improving, down 0.9p.p. Y/Y to 4.7% Group net profit at 1.1bn, up 22.6% Y/Y. Underlying financial performance is strong with net operating profit at 1.9bn, up 25.5% Y/Y. RoTE at 8.9%, up 1.8p.p. Y/Y. FY19 RoTE target >9% confirmed Resilient Group NII at 2.6bn (-0.4% Q/Q), in line with guidance. Positive sustained commercial dynamics, fees up 2.8% Y/Y driven by investment fees (+2.3% Y/Y) and transactional fees (+9.3% Y/Y) costs at 2.74bn, down 2.0% Q/Q and 5.2% Y/Y. Cost/Income ratio at 53.5%, down 2.5p.p. Y/Y CoR at 45bps. FY18 CoR target of 68bps confirmed Non Core rundown accelerated to 2021 from In 1.8bn write-offs in Non Core. FY18 Group gross NPE disposal target of 4bn, of which 2bn in Non Core Group gross NPE ratio down to 9.5% with gross NPEs down 10.6bn Y/Y and 3.8bn Q/Q IFRS9 FTA impact (1) of 104bps including accelerated Non Core rundown through NPE sales and write-offs CET1 ratio at 13.06%. Fully loaded CET1 ratio for year end 2018 between 12.3% and 12.6% Impact of models, procyclicality and EBA guidelines anticipation confirmed, the majority of which is expected in 2H18 UniCredit: a pan European Winner UniCredit at a glance 4 NB: Numbers throughout the document reflect "line adjustments from accounting changes" as announced during the CMD IFRS9 first time adoption (FTA) impact on 1 January 2018 of -104bps on fully loaded CET 1 ratio, equivalent to around -3.8bn deriving from LLP effect and write offs. Higher than -75bps communicated at due to sale price update of selling scenario and write-offs

5 UniCredit: a simple successful Pan European Commercial Bank with inherent competitive advantages and CIB fully plugged-in Commercial Banking model delivering unique Western, Central and Eastern European network to extensive Retail and Corporate client franchise UniCredit at a glance 25.8 million clients (1) 79% revenues from Commercial Banking (2) "One Bank" business model replicated across full network, driving synergies and streamlined operations CIB plugged into Commercial Banking, enabling cross-selling and synergies across business lines and countries Commercial Banks with leadership position (3) in 12 out of 14 countries (4) 0.7bn joint CIB-Commercial Banking revenues (5) Low risk profile business model benefiting from diversification and a more stable macro/regulatory environment 52% revenues outside Italy 5 1. Data as of includes 100% clients in Turkey 2. Business division revenues as of, CB Italy, CB Germany, CB Austria, CEE, Fineco 3. Data as of FY2017 or latest available, ranking between #1 and #5 of market share in terms of total assets according to local accounting standard 4. Italy, Germany, Austria, Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia and Herz., Serbia, Russia, Romania, Bulgaria, Turkey (data as of FY2017) 5. Data as of Mar includes revenues on GTB, ECM, DCM, M&A, Markets products from Commercial Banking clients and structured finance products from Corporate Sources: for total assets, central bank statistics, if available, or local company reports

6 Strong competitive advantage across countries and products UniCredit at a glance Italy Strong local Commercial Banks # clients, m (1) 8.9 Rank by assets in Europe (2) Germany Austria CEE "Go to" bank for European "Mittelstand" Corporates Loans to corporates in EU zone, bn (4) Peer 1 UniCredit EMEA rankings (5) Best-in-class CIB product provider EMEA Bonds in Euro by # of transactions (5) 1 Syndicated Loans in Italy (5) Syndicated Loans in Germany (5) 1 2 Revenues by geography (3) CEE Peer 2 Syndicated Loans in Austria (5) 1 20% Peer 3 Awards Austria 9% 48% Italy 23% Germany Peer 4 Peer 5 #1 Best services in Trade Finance 2018 (6) #1 Best Trade Finance Provider in CEE, Austria, Bulgaria and Croatia in 2018 (7) #1 Bank for Liquidity Management Western Europe in 2018 and in CEE in 2018 (7) 6 1. Data as of includes 100% clients on Turkey 2. Data as of FY17, for Germany, only private banks; for CEE compared to Erste, KBC, Intesa Sanpaolo, OTP, RBI, Société Générale (data as of FY17) 3. Data as of based on regional view 4. Data as of ; peers include: BNP Paribas, Deutsche Bank, Intesa Sanpaolo, Santander, Société Générale 5. Dealogic as of 3 April 2018; period: 1 Jan 31 Mar All Syndicated Loans in Euro, All EMEA Bonds in Euro 6. Source: Global All services, Products/Payments, Overall execution; CEE All services; Italy All services; in BiH, BG, HR, HU, RO, RS, RU All services 7. Source:

7 Agenda UniCredit at a glance 2 Transform 2019 update P&L results Asset quality Capital position Funding & Liquidity 7

8 UniCredit key targets Transform 2019 update Revenues, bn Cost, bn Net Income, bn Cost/income Cost of Risk RoTE CET1 FL ratio % 56.9% 53.5% <55% <52% 103bps 76bps 45bps 68bps 55bps (1) 4% 5.5% 8.9% >9% 10.4% 13.60% 13.06% % >12.5% 8 RWA, bn Group Gross NPEs, bn Non Core Gross NPE, bn Group Gross NPE Ratio 16.0% 10.3% 9.5% 7.5% Group Core Gross NPE Ratio 6.1% 5.0% 4.7% 4.7% Group Net NPEs, bn Adjusted to exclude the positive net impact from Bank Pekao and Pioneer disposals (+ 93 m in ) Improved from 40.3bn Improved from 17.2bn improved from 7.8% improved from 17.7bn

9 Transform 2019 achievements (1/2) Transform 2019 update STRENGTHEN AND OPTIMISE CAPITAL IMPROVE ASSET QUALITY Strong capitalisation Higher IFRS9 FTA NPE disposals and targets improved Accelerated Non Core rundown by 2021 fully loaded CET1 ratio at 13.06%, including 99bps IFRS9 FTA (net of tax) Strong capital position allowing the Group to accelerate the Non Core rundown. Higher IFRS9 FTA on non performing residential mortgages Fully loaded CET1 ratio for year end 2018 between 12.3% and 12.6% fully loaded CET1 ratio target confirmed >12.5% FINO transaction successfully closed in January 2018 Group gross NPE ratio 9.5% in, down 2.1p.p. Y/Y Group Core gross NPE ratio 4.7% down by 0.9p.p. Y/Y Accelerated full Non Core rundown by end 2021, brought forward from In 1.8bn write-offs in Non Core Improved 2019 Gross NPE targets of 37.9bn for Group, of which 14.9bn in Non Core FY18 Group gross NPE disposal target of 4bn, of which 2bn in Non Core TRANSFORM OPERATING MODEL Branch and FTE reductions ahead of schedule Branches down by 50 Q/Q and 732 since December 2015 in Western Europe, meaning 78% of 944 Transform 2019 target achieved FTEs down by 1,587 Q/Q and 10,586 since December 2015, meaning 75% of the 14,000 Transform 2019 target achieved 9

10 Transform 2019 achievements (2/2) Transform 2019 update MAXIMISE COMMERCIAL BANK VALUE Multichannel offer/ customer experience E2E redesign and streamlining Commercial partnerships Leading Debt and Trade Finance house in Europe UniCredit is the only bank in Italy to offer all three mobile payments Apple Pay, Alipay and Samsung Pay, the latter successfully launched in, further strengthening the Group's offer In Italy, 93% (vs. 95% 2019 target) of basic transactions (1) migrated to self-service channels, while remote sales increased by 4.5p.p Y/Y, reaching 20.8% of total bank sales (2) In CEE, the mobile user penetration (3) improved by 2.2p.p. Q/Q to 33.8% Following the successful execution of the E2E redesign of the first 8 products (4), 3 additional products launched in Italy (online banking, deposits & withdrawals and bancassurance) taking the total of E2E redesigns running in parallel to 11. Redesign concept extended to Germany Launched new "Easy Export" product in Italy to support the internationalisation of Italian companies leveraging on new partnership with Alibaba.com Confirmed leading Trade Finance House with strong progress in Germany Ranking #1 in "EMEA All Bonds in EUR" by number of transactions underlining the strength of the fully plugged-in CIB platform (5) ADOPT LEAN BUT STEERING 10 CENTRE Governance Group CC streamlining New corporate governance in line with best in class European peers. Annual General Meeting approved Board list with 90% of votes. Fabrizio Saccomanni elected new Chairman Weight of Group Corporate Centre of total costs at 3.4% in, stable Y/Y (+0.1p.p.) (FY15 actual: 5.1%, FY19 target: 3.5%) Includes cash withdrawals, cash deposits and transfers 2. Percentage of remote sales (transactions concluded through ATM, online, mobile or Contact Centre) calculated on total bank products that have a direct selling process. 3. Including Turkey at 100%. Ratio defined as number of retail mobile users as percentage of active customers. 4. Current accounts, credit cards, receivable financing, residential mortgages, advisory, assets under management, corporate mortgages and debit cards. 5. Source: Dealogic, as of 3 April Period 1 January 31 March 2018.

11 Agenda UniCredit at a glance Transform 2019 update 3 P&L results Asset quality Capital position Funding & Liquidity 11

12 Group Core net profit at 1.2bn, up 11.8% Y/Y. RoTE at 10.4%, up 1.1p.p. Y/Y Main drivers Stable revenues at 5.1bn in (+0.1% Y/Y), supported by fees (+2.4% Y/Y) Costs down 2.9% Q/Q and 4.9% Y/Y thanks to continued strong cost discipline. C/I ratio at 52.7%, down 2.8p.p. Y/Y LLPs down 25.7% Y/Y. CoR at 35bps Gross NPE ratio 4.7% (2), down by 0.9p.p Y/Y Net profit at 1.2bn, up 11.8% Y/Y. RoTE at 10.4%, up 1.1p.p. Y/Y Data in m 1Q17 % vs. P&L results % vs. 1Q17 Total revenues 5,127 4,893 5, % +0.1% o/w Net interest 2,612 2,608 2, % +0.1% o/w Fees 1,719 1,704 1, % +2.4% Operating costs -2,846-2,785-2, % -4.9% Gross operating profit 2,281 2,108 2, % +6.4% LLP % -25.7% Net operating profit 1,782 1,445 2, % +15.3% Net profit 1, , % +11.8% Adjusted net profit (1) 1, , % +11.8% Adjusted RoTE (1) 9.3% 7.1% 10.4% +3.3p.p. +1.1p.p. C/I 55.5% 56.9% 52.7% -4.2p.p. -2.8p.p. CoR (bps) bps -13bps Gross NPE ratio 5.6% 5.0% 4.7% -29bps -87bps Group Core adjusted net profit and adjusted RoTE exclude the net impact of the Pioneer and Pekao disposals (+93m ). RoTE calculated at CMD perimeter, taking into account the capital increase and Pekao and Pioneer disposals as at 1 January Group Core RoTE for 1Q17 adjusted versus the previously published version for Non Core allocated capital 2. Weighted average of EBA sample banks is 4.0%. Source: EBA risk dashboard (data as of )

13 Group net profit at 1.1bn, up 22.6% Y/Y mainly thanks to lower LLPs and lower costs Main drivers Data in m 1Q17 % vs. P&L results % vs. 1Q17 Total revenues 5,150 4,906 5, % -0.7% 13 Resilient NII at 2.6bn in (-0.4% Q/Q) in line with guidance as the days effect was mainly offset by lower funding costs Fees increased 2.8% Y/Y, underpinned by sustained positive commercial dynamics mainly in investment fees (+2.3% Y/Y) and transactional fees (+9.3% Y/Y) Costs down 2.0% Q/Q and 5.2% Y/Y mainly thanks to lower HR costs (-3.9% Q/Q, -6.9% Y/Y). FTE down 1,587 Q/Q LLPs down 35.2% Y/Y, leading to a seasonally low CoR of 45bps. No impact from models Other charges & provisions include 465m systemic charges as more than half of the FY systemic charges are booked in 1Q Tax rate down 4.9p.p. Y/Y based on changes in the geographical mix of profits and impact from IFRS9 FTA 1. Group adjusted net profit excludes the net impact of the Pioneer and Pekao disposals (+93m ) o/w Net interest 2,660 2,646 2, % -0.9% o/w Fees 1,703 1,683 1, % +2.8% o/w Trading % -19.0% Operating costs -2,886-2,794-2, % -5.2% Gross operating profit 2,264 2,112 2, % +5.0% Loan loss provisions % -35.2% Net operating profit 1,498 1,277 1, % +25.5% Other charges & provisions n.m % o/w Systemic charges n.m. +7.1% Profit before taxes 1, , % +31.8% Income taxes n.m. +0.6% Net profit from discontinued operations n.m. n.m. Net profit , % +22.6% Adjusted net profit (2) (1) , % +22.6%

14 Group Resilient net interest at 2.6bn (-0.4% Q/Q), in line with guidance. Positive sustained commercial dynamics, fees up 2.8% Y/Y Net interest, m Fees & commissions, m P&L results -0.9% -0.4% 2,660 2,646 2,636 Average Euribor 3M 1, % 1, % 1, % (flat Q/Q) Investment fees Financing fees Transactional fees Net 1Q17 interest margin 1.41% 1.42% 1.47% Q Resilient net interest mainly thanks to lower funding costs Fees up 2.8% Y/Y driven by investment and transactional fees, up 2.3% and 9.3% Y/Y respectively 14

15 Group Trading income down 19.0% Y/Y Dividends increased by 11.4% Y/Y, thanks to the strong performance of Turkey Trading income, m Dividends (1), m P&L results Client driven Other trading % +24.5% Other dividends and equity investments Turkey (at equity) +11.4% +58.3% Q17 1Q17 Trading income down 19.0% Y/Y, after some large client driven transactions in 1Q17 Up 24.5% Q/Q on increased market volatility and some nonrecurring trading gains, up 23.2% Q/Q adjusted for the latter (2) Client driven share of trading high at 82% in, stabilising trading income 15 Turkey's contribution up 29.7% Y/Y at constant FX Other dividends up 13.5% Y/Y mainly thanks to insurance JVs in Italy 1. Include dividends and equity investments. Turkey is valued at equity method and contributes to the dividend line to the Group P&L based on managerial view 2. Adjusted for non-recurring net trading gains from participations in +39m in CIB and in +28m in CB Germany

16 Group Costs down 5.2% Y/Y, down 2.0% Q/Q FY bn and FY bn total cost targets confirmed Main drivers Execution of Transform 2019 progressing: 75% of FTE reduction target achieved (11k out of 14k) 78% of branch closures completed (732 out of 944) FTEs down 6,058 Y/Y, branches down 504 Y/Y C/I 53.5% in, down 2.5p.p. Y/Y. FY18 <55% C/I target confirmed total costs at 2.74bn, ahead of schedule expense recoveries lower, as mentioned last quarter FY bn and FY bn total cost targets confirmed C/I 2,886 1Q17 Costs, m -5.2% 2, % 2, % 56.9% 53.5% 96,423 CEE 24,208 W.E. 72,215 1Q17 5,263 CEE 1,793 W.E. 3,470 1Q17 FTEs (eop) -6,058-1,587 91,952 90,365 24,089 24,031 67,864 66,334 Branches (1) ,817 4,759 1,690 1,682 3,127 3,077 P&L results Q/Q -0.2% -2.3% Q/Q -0.5% -1.6% Branch figures consistent with CMD perimeter

17 Group LLPs down 35.2% Y/Y, leading to low CoR of 45bps FY18 68bps CoR target confirmed, of which 15bps due to models impact 17 Main drivers (1) LLPs down 35.2% Y/Y to 496m, with CoR seasonally low at 45bps. No models impact FY18 68bps CoR target confirmed, o/w 15bps due to models impact, the majority of which is expected in 2H18 Group gross NPE ratio 9.5% in, down 2.1p.p. Y/Y. Coverage ratio improved to 60.3% (up 3.8p.p. Y/Y) Group Core gross NPE ratio 4.7%, down by 0.9p.p. Y/Y CoR across divisions in : CB Italy CoR at 64bps down 11bps Y/Y with no models impact CB Germany CoR at seasonally low 13bps, stable Y/Y (+1bp) CB Austria CoR at -34bps due to net write-backs. CoR expected to normalise over the course of 2018 CEE CoR low at 69bps thanks to repayments and writebacks. CoR expected to normalise over the course of 2018 CIB CoR at a seasonally low 19bps in, down 13bps Y/Y Cost of risk Cov. ratio gross NPE Gross NPE ratio Loan loss provisions, m 1. Following the FINO" portfolio disposal, which occurred in July 2017 and the application of the IAS39 principle, the credit exposures related to portfolio have been derecognised for accounting purposes from the balance sheet assets. The NPE data are calculated accordingly 766 1Q17 o/w 15bps models impact -35.2% % bps 76bps 45bps 59.3% pro-forma IFRS9 FTA 56.5% 56.3% 60.3% 11.6% 10.3% 9.5% P&L results

18 Group net profit at 1.1bn, up 22.6% Y/Y, underpinned by sustained positive Group wide commercial dynamics m adjusted (1) Group 801 Net profit, m 1,112 1,112 Group Core 858m adjusted (1) 951 1,243 CB Italy CB Germany Net profit by division, m CB Austria 50 P&L results RoAC (2) 14% 7% 7% CEE 1, % RoTE (1) 1Q17 7.0% 5.5% 8.9% 1Q17 9.3% 7.1% 10.4% 1,422 CIB 378 Fineco 21 16% 56% Group CC -85 n.m. Group RoTE 8.9% in, up 1.8p.p. Y/Y. CEE, CB Italy and CIB as main drivers FY19 Group RoTE target >9% confirmed Group Core RoTE 10.4% in, up 1.1p.p. Y/Y Group Core 1,243 6,252 Non Core -131 Group 1,112 5, n.m. n.m. n.m Group and Group Core adjusted net profit and adjusted RoTE exclude the net impact of the Pioneer and Pekao disposals (+93m ). RoTE calculated at CMD perimeter, taking into account the capital increase and Pekao and Pioneer disposals as at 1 January Group Core RoTE for 1Q17 adjusted versus the previously published version for Non Core allocated capital 2. Normalised RoAC: CIB 14.1%

19 Agenda UniCredit at a glance Transform 2019 update P&L results 4 Asset quality Capital position Funding & Liquidity 19

20 Group Asset quality further improved in the quarter with lower NPE, improved NPE ratios and strengthened coverage ratios Non performing exposures, bn o.w. Gross bad loans, bn % Asset quality % -9.3% Net NPE Q17-7.8% Net bad loans Coverage ratio Q % 65.9% 73.0% o.w. Gross unlikely to pay, bn Gross NPE ratio Net NPE ratio Coverage ratio 11.6% 10.3% 9.5% 5.4% 4.8% 4.0% 56.5% 56.3% 60.3% Net UTP Q % -5.8% Coverage 44.0% 43.6% 44.1% ratio

21 Non Core Gross NPEs at 23.6bn, down 22.7% Y/Y and 10.7% Q/Q Non performing exposures (1), bn o.w. Gross bad loans, bn -22.6% Asset quality -22.7% -14.0% % 23.6 New target, improved from 17.2bn 14.9 Net bad loans Q Net NPEs Coverage ratio 64.6% 64.2% 73.9% 1Q o.w. Gross unlikely to pay, bn Gross NPE ratio 85.4% 89.1% 89.8% 100% -22.4% -4.9% Net NPE ratio Coverage ratio 72.2% 78.8% 78.1% 57.3% 56.9% 62.4% 61.3% pro-forma IFRS9 FTA 100% >57% Net UTP Coverage ratio % 43.8% 43.6% Following the FINO" portfolio disposal, which occurred in July 2017 and the application of the IAS39 principle, the credit exposures related to portfolio have been derecognised for accounting purposes from the balance sheet assets. The NPE data are calculated accordingly.

22 Non Core Further decisive action to accelerate the Non Core rundown to 2021 from 2025 Gross Loans, bn Performing NPE Non Core evolution (1) 2.3bn lower than previous target of 17.2bn 0 Gross loans, bn "Back" to Core Repayments Actions of Non Core run down FINO FINO phase 2 closed in Jan 2018 Mostly corporate Mainly driven by corporate, small business Sep16-Mar18 Mar18-Dec Asset quality Q Disposals Both single name and portfolios Net Loans, bn Recoveries Cash recoveries on workout and UTP NPEs coverage, % >57 Write-offs Active portfolio management and cost optimization UTP coverage, % Bad loans cov., % >38 >63 Other Active portfolio management and cost optimization Total bn Bad Loans, 3.6bn UTP and 0.2bn Past Due

23 Agenda UniCredit at a glance Transform 2019 update P&L results Asset quality 5 Capital position Funding & Liquidity 23

24 Group CET1 ratio down to 13.06%, mostly due to IFRS9 FTA impact Fully loaded Common Equity Tier 1 ratio, % Capital position 13.60% +31bps +4bps +13bps 13.06% -91bps -7bps -4bps AFS/FVOCI: +1bps FX: -6bps DBO: flat Regulation, models and procyclicality: -9bps stated IFRS9 (1) /FINO (2) Net profit 20% dividend accrual & coupons (3) AFS/FVOCI, FX, DBO reserves RWA dynamics (excl.fino) Other stated CET1 ratio down 53bps Q/Q mainly due to IFRS9 FTA, partially compensated by earnings generation Impacts from models, procyclicality and EBA guidelines anticipation confirmed, the majority of which is expected in 2H18 Fully loaded CET1 ratio for year end 2018 between 12.3% and 12.6% IFRS9 first time adoption (FTA) impact (net of tax) on 1 January 2018 of -99bps on fully loaded CET 1 ratio, equivalent to around -3.5bn (net of tax) deriving from LLP effect and write offs 2. The completion of FINO phase 2 in January 2018 with the connected Significant Risk Transfer (SRT) of the FINO portfolio results in a +8bps fully loaded CET1 ratio impact in, that will increase over time due to the evolution of retained exposures. The +8bps capital benefit in, in comparison to +17bps previously disclosed, is due to higher capital requirements for retained regulatory exposures as shared with ECB 3. Coupons on AT1 instruments paid in equal to 34m before tax

25 Group Transitional capital ratios well above MDA levels Capital position CET1 transitional (1) Tier 1 transitional (1) Total capital transitional (1) 2017 Basel 3 phase-in 80% 2018 Basel 3 phase-in 100% 2017 Basel 3 phase-in 80% 2018 Basel 3 phase-in 100% 2017 Basel 3 phase-in 80% 2018 Basel 3 phase-in 100% 13.73% -0.6p.p % 15.36% -0.6p.p % 1.58% AT1 0.94% AT1 0.94% AT % -1.0p.p % T2 2.41% 2.87% AT1 1.58% 1.38% T2 AT1 9.15% MDA 13.13% CET % CET % CET % MDA CET % 13.13% CET % MDA 49 bn 46 bn 55 bn 52 bn 64 bn 60 bn Phase-in of net liability related to Defined Benefit Obligation at 60% in 2017 and 80% in xxbn Absolute amount for CET1 transitional, Tier1 capital transitional and total capital transitional.

26 Solid fully loaded CET1 ratio at 13.06% and leverage ratio at 5.35% Capital position Fully loaded CET1 capital (1) as of Mar-18, bn /bn Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 UC Peer 8 Peer 9 Peer 10 Peer 11 Total capital (2) Total assets , , ,478 1,438 2,151 2,152 Fully loaded Basel 3 Leverage ratio (3) as of Mar-18, % Peers Avg. 4.94% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 UC Peer 9 Peer 10 Peer FL CET1 calculated as FL CET1 ratio * RWA (FL where available) 2. FL Total Capital where available 3. FL leverage ratio where available Peers: BBVA, BNP, Commerzbank, CASA, DB, HSBC, ISP, ING Group, Nordea, SAN, SG. FX exchange rate at 31 March 2018

27 Agenda UniCredit at a glance Transform 2019 update P&L results Asset quality Capital position 6 Funding & Liquidity 27

28 Well diversified and centrally coordinated funding and liquidity profile Funding & Liquidity UniCredit SpA is operating as the Group Holding as well as the Italian operating bank: TLAC/MREL issuer assuming Single-Point-of-Entry (SPE) Coordinated Group-wide funding and liquidity management to optimise market access and funding costs Diversified by geography and funding sources Western Europe CEE Banks (11 CEE countries (1) ) Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Romania, Russia, Slovakia, Slovenia, Serbia and Turkey

29 Strong and disciplined liquidity management Funding & Liquidity strong liquidity buffer bn Additional eligible assets available within 12 months (1) Cash and Deposits with Central Banks Compliant with key liquidity ratios LCR NSFR >100% >100% Unencumbered assets (immediately available) bn liquid assets immediately available, well above 100% of wholesale funding maturing in 1 year UniCredit S.p.A. LCR and NSFR >100% 29 Note: Managerial figures 1. Unencumbered assets are represented by all the assets immediately available to be used with Central Banks. Additional eligible assets (available within 12 months) consist of all the other assets eligible within 1 year time

30 Optimised TLAC funding plan: all issuances from UniCredit SpA coherent with SPE model Funding & Liquidity UniCredit SpA TLAC funding plan: UniCredit Group funding plan TLAC requirement (1) : >19.6% Target 2019 >20.5% bn Updated funding plan As of CMD17 of which to be issued As of May-18 bn Senior outstanding TLAC eligible (2) Senior Preferred 2.5% Senior bond exemption Subordinated req.: >17.1% >18.0% Previously 13.35bn Senior Non Preferred Tier AT Previous New (3) CET1 ratio Total TLAC funding plan Covered Bonds Previously 26.4bn Unsecured funding Supranational and other m/l term funding 30 Note: Managerial figures TLAC transitional requirement (Pillar 1 MREL) bn, outstanding senior bonds, not part of the funding plan 3. For comparison purposes vs. Previous Funding Plan, 1.7bn Supranational funding in Bank Austria would have to be excluded

31 UniCredit Group 2018 funding plan 2018 M/L Term Funding Plan by region 2018 M/L Term Funding Plan by product Funding & Liquidity 27.5bn 27.5bn TLAC Funding Plan Unsecured Funding Italy 41.5% 29.7% Covered Bonds Supranational and other m/l term funding Germany Austria CEE (1) 28.0% 5.3% 25.2% 2018 (Planned) 4.5bn (3) Italy 45.0% Germany 29.8% Austria 1.0% CEE (1) 24.2% 2018 (Realised) (2) 30.5% 5.9% 33.9% 2018 (Planned) TLAC Funding Plan: Euro 1.0bn AT1 pre-funding already executed in December 2017, not reported in 2018 funding plan realised In the first part of January 2018, UniCredit SpA has successfully issued its debut 5-year Non-Preferred Senior Notes for a total amount of Euro 1.5bn targeted to institutional investors As of end of April, c. 16% or c. 4.5bn of the 2018 Group Funding Plan is executed 31 Note: Managerial figures 1. Including Turkey at 100% 2. As of 30 th of April Excluding 1.0bn AT1 already executed in December'17

32 Ratings Overview Funding & Liquidity SpA BBB/Stable/A2 (1) Baa1/Positive/P2 (1) BBB/Stable/F2 (1) (bbb) (2) (ba1) (2) (bbb) (2) Following the upgrade at end of Oct'17, UC SpA has been affirmed on April'18: our view that UC group will continue to build on its strengths--its strong franchises make further progress in tackling its stock of nonperforming exposures in Italy" UC SpA's outlook changed to positive from stable on Jan'18 indicating:...rating agency's increased confidence that the bank will ultimately reach its 2019 targets, which will establish a more solid solvency profile UC SpA affirmed on Dec'17: the bank has made good progress in implementing its strategic plan, which it recently updated, and that it is in a good position to meet its planned targets Issuance Ratings Issuance Ratings Issuance Ratings Senior Non Preferred T2 AT1 OBGI (Ital CB) (5) OBGII (Ital CB) (6) BBB- BB+ nr A+ nr Senior Non Preferred T2 AT1 OBGI (Ital CB) (5) OBGII (Ital CB) (6) Baa3 Ba1 nr Aa2 Aa2 Senior Non Preferred T2 AT1 OBGI (Ital CB) (5) OBGII (Ital CB) (6) BBB BBB- B+ AA nr Italy BBB/Stable/A2 (1) Baa2/Negative/P2 (1) BBB/Stable/F2 (1) BBB+/Develop (3) /A2 (1) A2 (4) /Stable/P1 (1) BBB+/Negative/F2 (1) (bbb+) (2) (baa2) (2) (bbb+) (2) 32 BBB/Positive/A2 (1) Baa1/Stable/P2 (1) (bbb) (2) (baa3) (2) Not Rated 1. Order: Long-Term Sr Unsecured Debt Rating / Outlook or Watch-Review / Short-Term Rating 2. Stand-Alone Rating 3. Outlook "Developing" due to uncertainties around resolution process 4. Deposit rating shown, while Senior Debt at 'Baa2/Stable/P1' 5. Soft Bullet 6. Conditional Pass Through