Bank Austria Öffentliche Pfandbriefe (Public Sector Covered Bonds) September 2010

Bank Austria Öffentliche Pfandbriefe (Public Sector Covered Bonds) September 2010

AGENDA UNICREDIT GROUP / BANK AUSTRIA: OVERVIEW PUBLIC SECTOR COVERED BOND OF BANK AUSTRIA AUSTRIAN LEGAL FRAMEWORK PFANDBRIEFE 2

AGENDA UNICREDIT GROUP / BANK AUSTRIA: OVERVIEW PUBLIC SECTOR COVERED BOND OF BANK AUSTRIA AUSTRIAN LEGAL FRAMEWORK PFANDBRIEFE 3

UNICREDIT GROUP IS A TRULY EUROPEAN BANK Market capitalisation (in bn) as of 9 August 2010 At a glance* UNICREDIT GROUP: OVERVIEW HSBC Santander BNP Paribas RBS Lloyds UBS Barclays StanChart 84,5 68,2 66,1 64,5 50,6 48,6 46,1 3 rd in Eurozone 142,1 Strong local roots in 22 European countries Approx. 161,000** employees, approx. 9.600** branches Total assets: 969 bn Shareholders equity: 64 bn Loans and receivables with customers: 559 bn Customers deposits and debt securities in issue: 589 bn 185 bn of Assets under Management 19.8 bn operating income in 9M10 ( 27.6 bn in 2009) Aa3 Stable / A Stable / A Negative long-term ratings (Moody's, S&P, Fitch) UniCredit 40,6 * As of September 2010 ** Including all employees and branches of subsidiaries consolidated proportionately (Sources: FY2009 and 1H10 financial reports) Leading position in core markets Market share (1) Ranking Logo Austria 16.3% # 1 Emerging Europe 7.0% # 1 e.g. Italy 13.5% # 2 Germany 3.5% # 3 4 (1) Market share in terms of loans as of Feb. 2010 (Source: UniCredit Research Network)

EXECUTIVE SUMMARY ON 2009 FINANCIALS UNICREDIT & BANK AUSTRIA: OVERVIEW Key pillars UniCredit Group Bank Austria Group Diversification benefits 1.7 bn net profit in a challenging year Operating profit up 20.3% y/y, or +27.5% at constant FX and perimeter 1.1 bn consolidated net profit in a challenging year Operating profit up 10.3% y/y Cost control Operating costs -8.2% y/y, -5.3% at constant FX and perimeter Operating costs -8.1% y/y, Cost/Income Ratio at 49.9% Deleveraging Capital strength Effective deleveraging: total assets -11.2% from Dec. 2008; Tangible assets / tangible equity from 29x to 22x pro-forma for 4 bn capital increase (announced in Sept. 2009 and finalized in Feb. 2010) Tier 1 ratio at 8.63%, ~9.5% pro forma (Core Tier 1 ratio ~8.47%) for 4 bn capital increase Total assets ( 194 bn) down by 12% vs. December 2008 Core Tier 1 ratio at 8.33% 5 2009 results confirm the solid franchise Even in a difficult market environment

9M10 UNICREDIT GROUP AND BANK AUSTRIA GROUP UNICREDIT & BANK AUSTRIA: OVERVIEW Key pillars Diversification benefits UniCredit Group 1,003 mn consolidated profit in 9M10 Operating Income of 19.8 bn with resilient trend Bank Austria Group 761 mn consolidated profit in 9M10 in a still challenging environment Operating Income of 5.4 bn on level of previous quarters Cost control Balance sheet stabilization Cost/income ratio: 59.3% (-3,893 FTE in 9M10) Total assets ( 969 bn) back to moderate growth with stable loans and deposits, lower net interbank exposure Operating expenses: 2.8 bn (+4% vs. 9M09) Further optimization of total assets ( 191.5 bn vs. 194.5 bn at YE09) Capital strength Focus on asset quality Core Tier 1 ratio increased further to 8.61% (+99 bps since end of 2009) due to controlled development of RWA Provisioning charge keeps decreasing (-17.7% vs. 9M09); 122 bps cost of risk (-19 bps vs. 9M09) Asset quality deterioration slowing: gross impaired loans +2.3% q/q; gross NPLs +2.2% q/q Core Tier 1 ratio rose to 9.63% - following a capital increase of 2 bn carried out in March 2010 Tier 1 ratio up at 9.95% Provisioning charge decreasing (-18% vs. 9M09); cost of risk down at 139 bps (180 bps in 2009) 6 9M10 results reflect focus on cost and sustained profitability at decreasing provisioning charge in a still challenging environment

STRONG CAPITAL POSITION: CORE TIER 1 RATIO 9.63%, TOTAL CAPITAL RATIO 11.76% (BA GROUP) BANK AUSTRIA GROUP: OVERVIEW Core Tier 1 Ratio (Basel 2) Total Capital Ratio (Basel 2) 8.33% +130 bps 9.63% 10.92% +84 bps 11.76% Dec. 09 Sept. 10 Dec. 09 Sept. 10 Core Tier 1 ratio stands at 9.63% - following a capital increase of 2 bn carried out in March 2010 hereby exceeding the ratio of most Austrian competitors Safe capital base as Bank Austria unless its main competitors did not take up state capital which would be to be repaid at a later stage Deleveraging of RWA (-5% since the end of 2008) also contributed to strengthening of capital ratios 7

BALANCE SHEET EVOLUTION IN 9M10 AGAIN SOLID (BA GROUP) BANK AUSTRIA GROUP: OVERVIEW Customer Loans ( bn) 123.6 127.7 Customer Deposits ( bn) 97.0 97.7 Securities in Issue ( bn) 28.8 27.9 Dec. 09 Sept. 10 Customer loans increased by 3.3% at BA Group level Increase in particular in some areas: Turkey, Russia, Czech Republic and CIB Austria Shareholders Equity ( bn) Dec. 09 Sept. 10 Customer deposits up, securities in issue slightly down Customer loans funded nearly at 100% by customer deposits and securities Leverage Ratio 1) Dec. 09 Sept. 10 14.4 17.9 13.5% 10.7% Dec. 09 Sept. 10 Dec. 09 Sept. 10 Increase in equity mainly due to 2 bn capital increase in March 2010 and retained profit Leverage ratio improving to 10.7% mainly due to 2 bn capital increase 8 1) Defined as Assets / Equity according to IFRS

RATING OVERVIEW Moody's S&P Fitch Short Term Long Term Subordinated Short Term Long Term Subordinated Short Term Long Term Subordinated P-1 A1 A2 A-1 A A- - - - Bank Austria 1) negative outlook stable outlook UniCredit S.p.A. P-1 Aa3 A1 A-1 A A- F1 A A- stable outlook stable outlook negative outlook Moody's S&P Fitch Bank Austria - Public Sector Covered Bond Bank Austria - Mortgage Bond Aaa - - - - - (as of September 2010) 9 1) Grandfathered debt is rated Aa2 (senior debt) and respectively Aa3 (subordinated debt) by Moody s and AA+ (senior and subordinated debt) by Standard & Poor s. This relates to securities issued before 31 Dec. 2001 which are guaranteed by the City of Vienna.

AGENDA UNICREDIT GROUP / BANK AUSTRIA: OVERVIEW PUBLIC SECTOR COVERED BOND OF BANK AUSTRIA AUSTRIAN LEGAL FRAMEWORK PFANDBRIEFE 10

EXECUTIVE SUMMARY BANK AUSTRIA PUBLIC SECTOR COVER POOL Aaa Rating by Moody s Strong and long existing legal framework for Austrian Pfandbriefe All cover pool assets are either originated in Austria (99%) or originated in Europe and guaranteed by the Republic of Austria (1%) Average volume of loans less than 1 mn Average seasoning is 5.8 years 11

PARAMETERS OF COVER POOL AND ISSUES Total Value of the Cover Pool as of 30 th September 2010 in EUR equivalent: 3,697 mn thereof in EUR: 2,545 mn thereof in CHF*: 216 mn thereof public sector bonds in EUR equivalent: 937 mn Parameters of Cover Pool Weighted Average Life (in years incl. Amortization) 9.6 Contracted Weighted Average Life (in years) 13.2 Average Seasoning (in years) 5.8 Total Number of Loans 3,715 Total Number of Debtors 1,186 Total Number of Guarantors 117 Average Volume of Loans (in EUR) 985,645 Stake of 10 Biggest Loans 23.2% Stake of 10 Biggest Guarantors 45.1% Stake of Bullet Loans 39.9% Stake of Fixed Interest Loans 30.9% Moody s Rating: Aaa Nominal over-collateralisation: 60.7%** Net present value of over-collateralisation: 58.6%** Total Value of Sold Covered Bonds as of 30 th September 2010 in EUR: 2,301 mn Parameters of Issues: Total Number 43 Average Maturity (in years) 4.5 Average Volume (in EUR) 53,501,705 12 * Cover Pool incl. FX Haircut 16.4%. ** Austrian Mortgage Law requires a nominal over-collateralisation of min. 2%. Additionally, in its Articles of Association, UniCredit Bank Austria commits itself to an over-collateralisation on a net present value (NPV) basis.

MATURITY STRUCTURE OF COVER POOL AND ISSUES Maturity of Assets in the Cover Pool in mn EUR in % Maturity up to 12 months 77 2.1% Maturity 12-60 months 644 17.4% thereof Maturity 12-36 months 371 10.0% thereof Maturity 36-60 months 273 7.4% Maturity 60-120 months 585 15.8% Maturity longer than 120 months 2,392 64.7% Total 3,697 100.0% Maturity of Issued Covered Bonds in mn EUR in % Maturity up to 12 months 185 8.0% Maturity 12-60 months 1,885 81.9% thereof Maturity 12-36 months 1,033 44.9% thereof Maturity 36-60 months 852 37.0% Maturity 60-120 months 11 0.5% Maturity longer than 120 months 220 9.6% Total 2,301 100.0% 13

REGIONAL BREAKDOWN OF ASSETS* IN AUSTRIA Regional Breakdown Austria in mn EUR in % Vienna 461 12.5% Lower Austria 716 19.4% Upper Austria 573 15.5% Salzburg 138 3.7% Tyrol 222 6.0% Styria 321 8.7% Carinthia 742 20.1% Burgenland 68 1.8% Vorarlberg 166 4.5% Republic of Austria 292 7.9% Total Austria 3,697 100.0% U p p e r A u st r ia 1 5. 5 % R e g io n a l B r e a k d o w n A u s tr ia S alzb u r g 3. 7 % Ty r o l 6. 0 % S t y r ia 8. 7 % C ar in t h ia 2 0. 1 % L o w e r A u st r ia 1 9. 4 % V ie n n a 1 2. 5 % B u r g e n lan d 1. 8 % V o r ar lb e r g 4. 5 % R e p u b lic o f A u st r ia 7. 9 % 14 *Considering Guarantors

VOLUME BREAKDOWN BY SIZE OF ASSETS Volume Breakdown by Size of Assets in mn EUR Number below 300,000 245 2,228 thereof under 100,000 51 1,178 thereof 100,000-300,000 194 1,050 300,000-5,000,000 1,302 1,391 thereof 300,000-500,000 197 505 thereof 500,000-1,000,000 331 480 thereof 1,000,000-5,000,000 774 406 above 5,000,000 2,151 96 Total 3,697 3,715 Breakdown by Size of Assets thereof 1,000,000-5,000,000 20.9% above 5,000,000 58.2% thereof 500,000-1,000,000 9.0% thereof 300,000-500,000 5.3% thereof 100,000-300,000 5.2% thereof under 100,000 1.4% 15

ASSETS VOLUME BREAKDOWN BY TYPE OF DEBTOR / GUARANTOR Assets: Type of Debtor / Guarantor in mn EUR Number State 39 2 Federal States 340 443 Municipalities 1,320 2,762 Guaranteed by State 253 33 Guaranteed by Federal States 1,213 91 Guaranteed by Municipalities 435 252 Other 97 132 Total 3,697 3,715 Assets: Type of Debtor / Guarantor Guaranteed by State 6.8% Guaranteed by Federal States 32.8% Municipalities 35.7% Federal States 9.2% State 1.1% Other 2.6% Guaranteed by Municipalities 11.8% 16

AGENDA UNICREDIT GROUP / BANK AUSTRIA: OVERVIEW PUBLIC SECTOR COVERED BOND OF BANK AUSTRIA AUSTRIAN LEGAL FRAMEWORK PFANDBRIEFE 17

AUSTRIAN LEGAL FRAMEWORK MORTGAGE AND PUBLIC SECTOR PFANDBRIEFE Austrian Covered Bonds Pfandbriefe Fundierte Schuldverschreibungen Hypothekenbankgesetz (Mortgage Banking Act 1899) Pfandbriefgesetz (Pfandbrief Law 1938) Law of 1905 Bank Austria 18 Remark: Austrian Mortgage Pfandbriefe also follow the same legal regulation as Public Sector Pfandbriefe

COMPARISON AUSTRIA VS. GERMANY Criteria of Pfandbrief law / Hypothekenbankgesetz Austria Germany Austrian Hypothekenbankgesetz was intially based on the German legislation Pfandbrief law in place YES YES Mortgage and public sector collateral assets in separate pools YES YES Cover register YES YES Collateral assets limited to Europe YES X Legally required minimum over - collateralization YES YES Cover Pool monitoring (Trustee) YES YES Special proceedings in case of insolvency Pfandbriefe remain outstanding in case of issuer s bankruptcy YES YES YES YES NPV matching YES* YES Important changes to the German "Pfandbrief" - legislation were followed by the Austrian "Hypothekenbankgesetz", which continues to reflect the principal features of the German "Pfandbriefgesetz Main differences in the current version are: German law also allows collateral assets from non- European countries German law includes compulsory NPV-matching, whereas in Austrian law NPVmatching is voluntary (Bank needs to setup a selfcommitment in its articles of association which is the case for Bank Austria s Public Sector Cover Pool) 19 * if included in the Articles of Association of the respective credit institution

YOUR CONTACTS CFO Finance UniCredit Bank Austria AG Corporate & Investment Banking UniCredit Bank Austria AG Franz Stegmüller Head of Strategic Funding Tel. +43 (0) 50505 82639 franz.stegmueller@unicreditgroup.at Gabriele Wiebogen Head of Long Term Funding Tel. +43 (0) 50505 82337 gabriele.wiebogen@unicreditgroup.at Günther Stromenger Head of Corporate Relations Tel. +43 (0) 50505 87230 guenther.stromenger@unicreditgroup.at Impressum UniCredit Bank Austria AG CFO Finance A-1010 Wien, Schottengasse 6-8 20

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