The UBI Banca Group

Consolidated Results as at 31st December 2014

12th February 2015

This document has been prepared by Unione di Banche Italiane Scpa ("UBI") for informational purposes only and for use in the presentation of

February 2015. It is not permitted to publish, transmit or otherwise reproduce this document, in whole or in part, in any format, to any third

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The disclosure relating to shareholdings of top management is available in the annual reports.

Methodology

The “notes on the reclassified financial statements” contained in the periodic financial reports of the Group may be consulted for a fuller

comprehension of the rules followed in preparing the reclassified financial statements.

Disclaimer

2

3

Executive Summary

0.05 0.06

0.08

FY12 FY13 FY14

PROPOSED DIVIDEND PER SHARE

(€)

Cash dividend always paid through the crisis

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)

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

The Group’s solid capital strength is confirmed:

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%

CET 1

phased

-in

Strength of capital ratios affirmed

4

CET 1

phased

-in

Sept ’14

Risk parameters (PD and LGD) update (-)

Repurchase of minorities in BPCI, BPA,

Carime (-)

Reduction in equity investments (also

disposal of insurance companies) (+)

Deferred tax recognised in income

statement following impairment (+)

Etc...

Dec ’14

CET 1

Fully

loaded

Dec ’14

TOTAL

CAPITAL

RATIO

phased-

in

Dec ’14

11.5%

15.29%*

13.00% 12.33%

* Following very recent more restrictive interpretation of rules by authorities, a subordinated loan amounting to 926 mln/€ was excluded

from calculation of Tier 2 affecting TCR by 150 bps

-67 bps due among other to:

78,175 78,348

77,550 77,214

78,311

76,837

76,179 75,926

75,098 75,129

76,618

Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

5

Lending: encouraging evidences from the end of October 2014

12,577 12,659 12,650

12,729 12,788 12,955 12,972

13,089 13,224 13,164

13,049

TOTAL GROSS LENDING EVOLUTION (€ mln, end date)

Total Performing Loans

Total Deteriorated Loans

Turn around point

end -October 2014

(before TLTRO)

Trend confirmed in

January 2015

TLTRO taken in Dec ’14: ~ 3.2 bln/€

As at 6th February ’15:

• Financing requests received: 3.7 bln/€

• Loans either granted or disbursed: 2.3 bln/€

48% in FY14 (vs 38% in FY13)

6

97% 105%

88%

112%

* As at 31 Dec 2014, including NPLs, management accounts

New origination

Reimbursement = 82% 86% 82% 91%

1Q 2Q 3Q 4Q

New origination

Reimbursement

=

Portfolio in run off: 6.5 bln/€ end Sept ‘14, 6.9 bln/€

end Dec ‘13, mainly former Banca 24/7 and Leasing

FOCUS ON MEDIUM / LONG TERM LENDING

(~73% of TOTAL LENDING)

Significant improvement in new inflows in 4Q14, replacement rate 112% in

Network Banks, 64% in Product Companies

2013

2014

FY14 = 101%

FY13 = 86%

TOTAL STOCK *

~62.4 bln/€ (~62.5 bln/€ in Sept ‘14)

64% in 4Q14 (vs 41% in 4Q13)

NETWORK BANKS

44.7 bln/€ (44.4 bln/€ in Sept’ 14)

PRODUCT COMPANIES

11.3 bln/€ (11.6 bln/€ in Sept’ 14)

PORTFOLIO IN RUN OFF

6.4bln/€ (6.5 bln/€ in Sept’ 14)

4Q/3Q14: Direct funding +6.1% and Total Funding +3.1%

Good performance in current accounts (+3.5%) and AUM (+2.4%)

7

* Bonds placed on third party banks networks

~80% of total direct funding

~20% of total direct funding

91.9%

Loan to Deposit ratio

IAS amounts in € bln Dec '13 Sept '14 Dec '14quarterly

% changes

DIRECT FUNDING FROM

ORDINARY CUSTOMERS74.7 74.0 74.0 0.0%

Current accounts and deposits 42.6 42.8 44.3 3.5%

Term deposits, other payables and repos 2.6 2.0 1.8 -12.7%

Securities in issue:

Network banks + UBI 24.1 24.6 23.6 -3.9%

Extra-captive customers* 3.7 3.3 3.3 -0.5%

Other (mainly customer CDs) 1.7 1.3 1.0 -22.8%

DIRECT FUNDING FROM

INSTITUTIONAL CUSTOMERS17.9 13.9 19.3 38.8%

Covered Bonds 7.7 8.9 9.8 10.8%

EMTN 4.2 3.6 3.1 -13.5%

CD and ECP 0.2 0.7 0.8 15.2%

Preferred shares 0.3 0.0 0.0 n.s

Repos with CCG 5.5 0.7 5.5 n.s.

TOTAL DIRECT FUNDING 92.6 87.9 93.2 6.1%

Current accounts & deposits up QoQ and YoY

Retail bonds: lower rates imply a shift towards

current accounts (more liquid) or AUM (more

profitable)

1 bln/€ 10Y Covered Bond issuance in Nov 2014 at a

spread of 30 bps above the 10y midswap rate

AUM 27.8 30.0 30.7 2.4%

Bancassurance 11.7 12.2 12.6 3.0%

AUC 32.1 33.9 32.5 -4.0%

TOTAL INDIRECT FUNDING 71.7 76.1 75.9 -0.3%

TOTAL FUNDING 164.3 164.0 169.1 3.1%

Mutual funds stocks up by around 3.6 bln/€ YoY

In the period Dec’14-Feb’15 SICAV subscribed for

~912.5 mln/€ that will be booked in 1Q15 volumes

8.45 7.30

9.55

2.57

7.23

2015 2016 2017 2018 and following

Matured FY14

FY14

8

Both retail and institutional bonds placed at significantly lower spreads

* Inclusive of original 0.5 bln/€ of private placement with BEI expiring within 2022. Further 2.4 bln/€ retained issue not included

RETAIL BONDS: Maturity Profile

INSTITUTIONAL BONDS: Maturity Profile

(Nominal amounts in € bln, net of bond repurchases)

(Nominal amounts in € bln)

150 126 110 102 84

58

FY12 FY13 1Q14 2Q14 3Q14 4Q14

Decreasing spreads vs. 6M Euribor (bps)

EMTN COVERED BONDS*

RETAIL BONDS: NEW ISSUANCES

0.97

0.10 0.80

0.16

1.00

0.55 1.80

1.05

0.05

1.05

2015 2016 2017 2018 2019 2020 and following

4.61

0.03

FY14

2.08

0.05

CDS 5Y SENIOR : UBI vs ITALY

UBI

ITALY

Source: Datastream

Matured FY14

bps

0

100

200

300

400

500

600

700

31-Oct-08 31-Oct-09 31-Oct-10 31-Oct-11 31-Oct-12 31-Oct-13 31-Oct-14 2009 2010 2011 2012 2013 2014 2015

The Italian Govies portfolio: after 4Q14 significant maturities, replaced with

lower yield bonds, no relevant maturities are expected in 2015

ITALIAN GOVIES: ~ 93% OF

FINANCIAL ASSETS

17.2 17.5

0.4 0.8

3.1 3.6

Sept '14 Dec '14

HTM

HFT

AFS

20.7 21.9 TOTAL*

(IAS value, € bln)

9

1.8 0.1 1.8 1.9

7.8 5.8

0.2 0.6

3.1

3.6

4Q14 2015 2016 2017 2018-2019 Over

(market values, € bln)

Modified duration of Italian

Govies portfolio: 1.2 years

15.6 17.2

1.7 0.4 3.1 3.1

June '14 Sept '14

HTM

HFT

AFS

ITALIAN GOVIES MATURITY

PROFILE

Matured

* In terms of nominal value, Dec ’14 vs. Sept ’14: +0.4 bln/€

Total eligible assets: nearly 30 bln/€, of which 14 unencumbered

ITALIAN GOVIES: ~ 73% OF ELIGLIBLE ASSETS

~32% of short term deposits

6%

8.3

7.4

14.0Unencumbered

Pledged for TLTRO/LTROs**

Use of eligible assets (€ bln)Data as at 30th January 2015

Eligible Assets: 29.8 bln/€

(net of haircut)Data as at 30th January 2015

73%12%

9%6%

Italian GoviesRetained securitisationsRetained covered bonds*Other (ABACO)

7.4CCG Repos

8.3Outstanding**

TLTRO/LTROsData as at 30th January 2015

� 3.2 bln/€ TLTRO

� 5 bln/€ LTROs expiring on 26 Feb’15

LIQUIDITY RATIOS (as at 31 Dec ‘14)

10* 2.1 bln/€ on the 15 bln/€ Retail Mortgages CB Programme, 1.6 bln/€ on the 5 bln/€ Commercial Mortgages CB Programme (net of haircut) ** Amounts include interest accrued

7.0LTROsReimbursed

� 1 bln/€ on 8 Oct ’14 � 3 bln/€ on 12 Nov ’14� 1 bln/€ on 17 Dec ’14� 2 bln/€ on 29 Jan ’15

� Loan to Deposit ratio = 91.9%

� NSFR and LCR >1 (even in the presence of an ordinary funding structure not based on TLTRO/LTROs support)

LIQUIDITY RATIOS (as at 31 Dec ‘14)

11

Pre-tax Profit: 449 mln/€ in FY14 vs. 285 mln/€ in FY13

Normalised Net Profit: 147 mln/€ in FY14 vs. 100 mln/€ in FY13

PPA allocated line by line

MAIN INCOME STATEMENT ITEMS

Figures in € mlnFY13 FY14 % change 4Q13 3Q14 4Q14

% change

4Q14 vs 4Q13

% change

4Q14 vs 3Q14

Net interest income 1,751 1,818 3.9% 459 468 442 (3.8%) (5.5%)

Net commission income 1,187 1,227 3.3% 299 299 318 6.5% 6.7%

Net result from finance 325 200 (38.5%) 156 14 49 (68.5%) 254.7%

Other income items 175 165 (5.6%) 37 42 42 15.9% 2.1%

Operating income 3,437 3,410 (0.8%) 951 822 852 (10.4%) 3.7%

Staff costs (1,302) (1,302) 0.0% (327) (329) (325) (0.7%) (1.1%)

Other administrative expenses (660) (635) (3.8%) (166) (147) (177) 6.5% 20.2%

Net impairment losses on property, equipment and investment property

and intangible assets(180) (171) (4.9%) (45) (42) (44) (3.2%) 2.9%

Operating expenses (2,142) (2,108) (1.6%) (538) (518) (546) 1.3% 5.3%

Net operating income 1,295 1,301 0.5% 413 303 306 (25.7%) 1.0%

Net impairment losses on loans (943) (929) (1.5%) (366) (197) (302) (17.4%) 53.5%

Net impairment losses on other financial assets and liabilities (48) (9) (81.8%) (25) (0) (6) (74.7%) n.s.

Net provisions for risks and charges (12) (9) (26.7%) 2 (1) (5) n.s. n.s.

Profits (losses) from disposal of equity investments (7) 94 n.s. (8) 0 94 n.s. n.s.

Pre-tax profit from continuing operations 285 449 57.4% 15 105 87 460.8% (17.3%)

Taxes on income for the period from continuing operations 55 (187) n.s. 205 (52) 1 n.s. n.s.

Profits for the period attributable to non-controlling interests (26) (29) 11.7% (8) (9) (4) (47.5%) (56.7%)

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 (25.9%) 213 44 83 (72.7%) (17.3%)

Impairment on tangible and intangible assets

(net of tax and non-controlling interests)(38) (883) n.s. (38) (883) n.s. n.s.

Charges for exit incentives

(net of tax and non-controlling interests)(26) (76) n.s. (26) (76) 193.7% n.s.

Profit for the period 251 -726 n.s. 149 44 (876) n.s. n.s.

Profit for the period NET OF NON-RECURRING ITEMS 100 147 46.2% 26 45 -29 n.s. n.s.

Taxes on income included (all effects in 4Q):

negative effect of additional IRES taxes established by Italian Law Decree no. 133/2013 (€ -33 mln)

positive effect of deductibility, for IRAP purposes, of impairments on loans introduced by the 2014 Stability Law (€+50 mln)

IRAP tax relief on goodwill (€+213 mln), not previously recognised for prudential reasons

See annex 7 for detail on non-recurring items

12

FY14 vs. FY13: differential contribution Yearly evolution

Quarterly evolution

1,751 1,818

FY13 FY14

417 428 446

459 454 454 468

442

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

1,751 1,818

-151 +179 +45 -5

NII

in FY13

Lending Funding NII

In FY14

Financial

activities

-4.3 bln

(€ mln)

(€ mln)

(€ mln)

-1.5 bln Change in

avg.

Volumes

+1.3 bln

+3.9%

One-Off*

Net Interest Income: +3.9% YoY. 4Q14 affected by lower avg. lending

volumes, large amount of Italian Govies maturities and one-off item

468 442 -23

+7 -5 -5

NII

in 3Q14

Lending Funding NII

In 4Q14

Financial

activities

-1 bln

(€ mln)

+0.3 bln +1 bln

One-Off*

Change in avg.

Volumes

4Q14 vs. 3Q14: differential contribution

Jan ‘15

improvement in

volumes and

spreads vs Dec ‘14

* One off booked at the end of the year, following the introduction of a new methodology for the accounting of interest on claims in

Prestitalia

281 280

165 184

-116 -96

19.6 20.9

FY13 FY14

13

Growth of Net Interest Income from business with customers thanks to

widening of customer spread (+19 bps) and notwithstanding lower avg.

lending volumes

*Average period data referred to the whole consolidated Group (Network banks+ Product companies + UBI)

**see note on previous page

NII from BUSINESS

with CUSTOMERS (€ mln) 1,405 1,434

NII from FINANCIAL ASSETS &

INTERBANK EXPOSURE (€ mln)

FY13 FY14

Mark-up

Mark-down

Customer Spread (UBI Banca Group)

Pricing

(average

bps on

stocks*)

Average

interest-

bearing

volumes

(€ bln)

• ~ 80% of NII generated by

business with customers

• good improvement in

customer spread YoY:

‒ Better markdown related to

lower cost of funding

‒ Stable mark up thanks to

substitution of expiring

loans at higher spreads

Net yield on financial

portfolio: improvement due

to lower associated funding

costs Financial asset

average volumes (€ bln)

See annex 8 for details

346 384

FY13 FY14

Including a negative one-

off** component for

-5 mln/€

Euribor 1M 13 14

84 80

87 85

FY13 FY14

Lending

Funding

14

4Q/3Q14: Net Interest Income from business with customers affected by

competition and lower market rates. Lower contribution from financial

assets following expiry of 4.9 bln/€ of IT govies (25% of the whole portfolio)

286 281

187 185

-99 -96

21.0 21.9

3Q14 4Q14

NII from BUSINESS

with CUSTOMERS (€ mln) 368 348

NII from FINANCIAL ASSETS &

INTERBANK EXPOSURE (€ mln)

3Q14 4Q14

Mark-up

Mark-down

Customer Spread (UBI Banca Group)

Pricing

(average

bps on

stocks*)

Average

interest-

bearing

volumes

(€ bln)

• 4Q14 vs. 3Q14 stable

customer spread:

‒ decrease in markup in

4Q14 mainly due to strong

competition in s/t lending in

the first part of the quarter

(-12 bps s/t mark up)

‒ better markdown mainly

due to lower cost of

medium-long term funding

Net yield on financial

portfolio: interest income

lower in 4Q, due to large

amount (4.9 bln/€) of Italian

Govies matured in 4Q14

and bought in FY11

Financial asset

average volumes (€ bln)

See annex 8 for details

100 94

3Q14 4Q14

79 78 84 84

3Q14 4Q14

Lending

Funding

Lending

Funding

Including a negative one-

off component** for

-5 mln/€

Euribor 1M 7 1

*Average period data referred to the whole consolidated Group (Network banks+ Product companies + UBI)

**see note on page 13

15

* See page 5

Focus on moving parts of NII

LENDING FUNDING

Long term loans: ~62.4 bln/€

...of which ~0.5/0.6 bln/€

Deposits: ~47.1 bln/€

Retail bonds: ~23.6 bln/€

Institutional bonds: ~13.7 bln/€ Run-off of a higher priced

portfolio (third parties lending).

No replacement nor repricing

New loans at higher spreads

substituting expiring loans.

Annual change in avg.

spread: +70 bps

Substitution rate ~101% in

network banks*

~7 bln/€ expiring

every year

Limited repricing still

possible

Yearly 1/3 of the stock expires,

replaced now at ~60 bps vs. 6M

EUR (150 bps in FY12 and 126

bps in FY13)

Opportunistic recourse to

Covered Bond, EMTN,

Lower Tier 2...

...of which ~6.3 bln/€

Short term loans: ~23.3 bln/€ Spreads on new loans now

affected by competition

FINANCIAL ASSETS

In 2015 expected stable portfolio (maturities 0.3 bln/€),

but:

4.9 bln/€ (of which 3.1 bln/€ HTM) expired from mid

Nov 2014 replaced by lower yield bonds

opportunistic sales given positive AFS reserve

Expected recomposition of retail

bonds funding vs. deposits or AuM

16

Net Commission Income: +3.3% YoY mainly thanks to good performance of

securities-related business but also to careful management of assets

+3.3%

(€ mln)

(€ mln)

Yearly evolution

Quarterly evolution

Trend affected by volumes of

business

Good performance thanks to

better market conditions and

good performance in AuM

(+10.5% YoY). Still plenty of

room to switch AuC to AuM,

improving mix

See annex 9 for details

All state guaranteed bonds

reimbursed within August 2014*

1,187

1,227

FY13 FY14

299 299 318

4Q13 3Q14 4Q14

Detail of Net Commission Income - yearly evolution

Detail of Net Commission Income - quarterly evolution

4Q13 3Q14

Guarantees (on State Guaranty Bonds) (12) (3) - n.s. n.s.

Banking Services Commissions 163 151 161 -1.0% 7.0%

Securities Management, Trading &

Advisory Services**148 151 157 6.2% 4.4%

Total Net Commission Income 299 299 318 6.5% 6.7%

4Q14 vs4Q13 3Q14 4Q14mln/€

+6.7%

mln/€ FY13 FY14 % change

Guarantees (on State Guaranty Bonds) (47) (18) -60.5%

Banking Services Commissions 645 615 -4.8%

Total Net Commission Income 1,187 1,227 3.3%

Securities Management, Trading &

Advisory Services**588 630 7.2%

* First reimbursement 3 bln/€ value 7th March ’14 and remaining 3 bln/€ value 7th August ’14

** Includes FX negotiations. Performance fees: 17 mln/€ in FY14 (14.2 mln/€ in FY13)

17

AuM shows positive evolution both YoY and QoQ

Dec ‘13

51%

25%

12%

5% 7%

Bond Balanced Equity Flexible Cash

bln/€ Dec '13 Sept '14 Dec '14% change

vs Dec '13

% change

vs Sept '14

AuM 27.8 30.0 30.7 10.4% 2.5%

Bancassurance 11.7 12.2 12.6 7.8% 3.0%

AuC 32.1 33.9 32.5 1.4% -4.0%

Total Indirect Funding 71.7 76.1 75.9 5.8% -0.3%

51%

25%

13%

5% 6%

Sept ‘14 Dec ‘14

UBI Pramerica SGR

AUM

Composition

Indirect Funding

Evolution

56%

17%

13%

4%

10%

18

* PPA effect amounted to € 20 mln in FY13 and to approx. € 21 mln in FY14

Cost evolution continues to be favourable (Stated amounts)

mln/€ FY13 FY14 % change

Staff cost 1,302 1,302 0.0%

Other Admin. Expenses 660 635 -3.8%

D&A (including PPA*) 180 171 -4.9%

Total operating costs 2,142 2,108 -1.6%

Cost control efforts to

continue in 2015...

Y

E

A

R

L

Y

Q

U

A

R

T

E

R

L

Y

mln/€ 4Q14 4Q13 3Q14

Staff cost 325 327 -0.7% 329 -1.1%

Other Admin. Expenses 177 166 6.5% 147 20.2%

D&A (including PPA*) 44 45 -3.2% 42 2.9%

Total operating costs 546 538 1.3% 518 5.3%

% change % change

+19.1

FY13 FY14

1,301.7 1,301.8

Previous

National

Labour

Contract

inertial

increase

-19.0

4Q14 / 3Q14 increase mainly due to:

usual seasonality

+8.1 mln/€ referring to new IT projects implementations

relating to Digital Bank project, merger between IW Bank and

UBI Private Investment, stabilisation and replacement of the

Prestitalia IT system, interventions to support single European

banking supervision regulations, a project to improve office

automation tools, etc.).

IT Projects expenses in 2014: 85.5 mln/€ vs 75.3 mln/€ in 2013

Headcounts

exit /

substitution

and relative

retribution

evolution

+9.4

Incentives,

benefits,

variable

retribution,

social hour

and other

Detail of STAFF COSTS - yearly evolution

1,320.8 -9.4

Sale of

BDG and

closing

of UBI

Singapore

Detail of OTHER ADMIN. EXPENSES - quarterly evolution

STAFF COSTS OTHER ADM. EXPENSES

STAFF HEADCOUNTS NUMBER OF DOMESTIC BRANCHES

Confirmed strong track record in cost management (Amounts net of non-recurring items)

(€ mln, net of PPA)

(€ mln) (€ mln, net of PPA)

TOTAL OPERATING COSTS

Note: staff headcounts at the end of the period

2,599 2,142

2,104

FY07 FY13 FY14

1,590 1,302

1,302

FY07 FY13 FY14

21,700

18,337

18,132

1st Apr '07 Dec '13 Dec '14

765 660 633

FY07 FY13 FY14

1,970

1,725

1,670

1st Apr '07 Dec '13 Dec '14

19

-3.2%

-1.7%

= -4.0%

-1.1%

On 26 Nov ‘14

Framework Agreement

signed with Trade

Unions

500 staff reductions

(o/w 80% already

completed within Jan

‘15) and flexibility in

working hours

4Q14 One-off cost:

111.5 mln/€ gross

(76.3 mln/€ net)

Cost savings at

regime:

~50 mln/€ gross

starting from 2015

helping to offset

possible increases

coming from New

National Labour

Contract

Analytical Provisioning 366 539

o/w Credit File Review Perimeter 199 193

o/w Projection of Findings Perimeter 167 346

Collective Provisioning 23 70

TOTAL PROVISIONING 390 609

LOAN LOSS PROVISIONS (€ mln)

FY13 FY14

LLPs guidance delivered: 929 mln/€ vs. 943 mln/€ in FY13, including

adjustments to enlarged AQR perimeter of 609 mln/€ vs. 390 mln/€ requested

FY14 Cost of credit at 108 bps (107 bps in FY13)

A

Q

R

P

E

R

I

M

E

T

E

R

AQR

REQUEST

UBI LLPs ON

PORTFOLIO

IN SCOPE

€/mln

Net analytical Impairments 908 902

o/w writebacks 72 93

Net collective impairments 35 26

TOTAL IMPAIRMENTS 943 929

20

LOAN LOSS PROVISIONS (€ mln) – quarterly evolution

158

199

226

230

193

197

366

302

FY13

FY14

1Q 2Q 3Q 4Q

929

943

Total FY

+26% +2% +2% -17% Change % -1.5%

Those provisions do not only

concern positions subject to a

specific request for an addition to

them*, but also positions that did

not require adjustments when the

AQR was carried out, but which

following events that occurred in

2014 were added to in compliance

with internal policies

Relating to the annual update of the

risk parameters used in the

advanced methods for calculating

capital requirements.

These parameters reflect the current

recession phase of the business cycle

because they are now:

- updated to include trends

observed up to the end of 2013;

- calibrated over a historical period

of full crisis (the last 7 years for

the corporate segment and the last

5 years for the retail segment)

* Carried out totally, partially or not at all in view of changes occurring in those positions during 2014 and of documentary

evidence acquired

8,589

10,958

12,674 13,089

13,049

Dec '11 Dec '12 Dec '13 Sept'14 Dec '14

NET DETERIORATED LOAN STOCKS (€ mln)

GROSS DETERIORATED LOAN STOCKS (€ mln)

21

6,280

8,105

9,312 9,448 9,508

Dec '11 Dec '12 Dec '13 Sep' 14 Dec '14

+14.9%

+1.5%

Stock of deteriorated loans stabilising in 2014...

+15.7%

+3.0%

+1.7 bln/€ +0.4 bln/€ +1.2 bln/€

+0.2bln/€

+27.6%

+2.4 bln/€

+29.1%

+1.8 bln/€

DISPOSALS OF HIGHLY PROVISIONED POSITIONS

(NPLs) IN THE LAST 4 YEARS

2014: 304 mln/€* covered at ~85%

2013: 103 mln/€ covered at ~93%

2012: 108 mln/€ covered at ~96%

2011: 219 mln/€ covered at ~98.5%

COVERAGE Dec '13 Sept '14 Dec '14

Performing loans 0.61% 0.56% 0.63%

Total deteriorated loans 26.5% 27.8% 27.1%

..including write-offs 36.3% 37.8% 37.1%

NPLs (sofferenze) 41.6% 40.5% 38.6%

..including write-offs 56.0% 55.0% 53.4%

Impaired loans (incagli) 15.1% 16.1% 16.3%

Restructured loans 13.9% 16.7% 18.5%

Past due loans 2.8% 4.5% 4.4%

-0.3%

+0.6%

Dec ’14 pro-forma

NPLs disposal

40.6%

55.2%

28.5%

38.7%

NPLs Dec ‘14 coverage affected by disposal, higher level

of secured inflows and increase in stock write-offs

* Of which 89 mln/€ in 2Q14 and 215 mln/€ in 4Q14

22

2,821

4,307 4,124

2,632

FY11 FY12 FY13 FY14

TOTAL INFLOWS FROM PERFORMING TO

DETERIORATED LOANS (€/mln)

-36.2%

...benefitting from lower inflows from performing loans...

...as a consequence of a better risk profile...

PERFORMING LOAN PORTFOLIO*: RISK PROFILE

December 2014 vs December 2013

Low Risk 71% vs 67.2% in Dec ’13

High risk 5.5% vs 6.4% in Dec ’13

Unrated 5.8% vs 5.7% in Dec ’13

* Perimeter: Network Banks + UBI Banca (essentially former Banca 24/7 activities)

Medium Risk 17.7% vs 20.7% in Dec ’13

23

Outlook

In 2015 net interest income will be affected by a lower contribution from the securities portfolio,

mainly as a result of positions that matured in the held-to-maturity portfolio in the last months of

2014. A recovery in volumes of business with customers should make it possible to increase net

interest income from business with customers, even in the presence of strong competition on pricing,

and help offset the lower contribution forecast from the securities portfolio

Net fee and commission income should benefit from positive trends expected for assets under

management and insurance and possible growth in fees and commissions associated with lending

A further decrease in sovereign debt risk could allow positive results to be achieved for trading and

hedging activity again in 2015

The recent trade union agreement will help compensate for the automatic increases in staff costs, the

overall performance of which will in any case depend on the final outcome of the renewal of the

national trade union contract

The downwards trend for other administrative expenses is forecast to continue

The slowdown in the pace of new defaulted loans recorded in 2014 is expected to continue in 2015

and could favour an improvement in loan losses compared with 2014

24

Annexes

Main Reclassified Balance Sheet Items

25

Annex 1

* Goodwill impairment in 2014

** Including € 3.2 bln TLTRO and € 7 bln LTRO

Financial assets (AFS, HFT, FV, HTM) 21,841 22,617 23,746 8.7% 5.0%

Loans to customers 88,421 84,947 85,644 -3.1% 0.8%

Property, equipment and investment property 1,798 1,741 1,729 -3.9% -0.7%

Intangible assets 2,919 2,883 1,777 -39.1% -38.4%

of which: goodwill* 2,512 2,512 1,465 -41.7% -41.7%

Tax assets 2,833 2,567 2,992 5.6% 16.5%

Other assets 931 778 931 0.0% 19.7%

Total assets 124,242 120,539 121,787 -2.0% 1.0%

Net interbank position** 10,888 12,259 9,952 -8.6% -18.8%

Due to customers 50,702 45,582 51,617 1.8% 13.2%

Securities issued 41,902 42,272 41,590 -0.7% -1.6%

Tax liabilities 756 732 630 -16.7% -13.9%

Net worth attributable to the Parent 10,089 10,651 10,530 4.4% -1.1%

Non-controlling interests 842 831 555 -34.1% -33.2%

Profit for the period 251 150 (726) n.s. n.s

Total liabilities and equity 124,242 120,539 121,787 -2.0% 1.0%

MAIN ASSETS ITEMSFigures in millions of euro

% annual

change

% quarterly

change30.09.2014 31.12.201431.12.2013

MAIN LIABILITIES AND EQUITY ITEMSFigures in millions of euro

% quarterly

change31.12.2013

% annual

change30.09.2014 31.12.2014

26

Annex 2 Capital Ratios (Phased in, Basel 3) as at Dec‘14:

Common Equity Tier 1 Ratio at 12.33%, Total Capital Ratio at 15.29%

13.00%

18.09%

12.33% 15.29%

Common Equity Tier 1

Total Capital Ratio

Sept '14 Dec '14

mln/€ Sept '14 Dec '14

Risk weighted assets 59,291.5 61,762.6

Total prudential requirements

Credit risk 4,348.4 4,572.7

CVA (Credit Value Adjustment) risk 11.5 14.7

Market risk 49.6 56.5

Operational risk 333.8 297.1

mln/€ Sept '14 Dec '14

Common Equity Tier 1 Capital

(before filters and transitional provisions)8,021.7 8,029.9

Transitional provisions (minority interest) 386.8 258.1

Transitional provisions (AFS Reserves) -103.2 -92.5

Common Equity Tier 1 Capital filters -2.1 -1.9

Italian Govies filters -103.3 -60.0

Common Equity Tier 1

(after filters)8,199.8 8,133.6

Common Equity Tier 1 regulatory adjustments: negative elements

for deduction excess of expected losses over impairment losses -490.6 -518.3

Common Equity Tier 1 Capital (CET1) 7,709.2 7,615.3

Additional Tier 1 before deductions 39.0 37.6

Additional Tier 1 regulatory adjustments: negative elements for

deduction excess of expected losses over impairment losses -39.0 -37.6

Additional Tier 1 - -

Tier 1 Capital 7,709.2 7,615.3

Tier 2 Capital before transitional provisions 3,347.7 2,187.8

Tier 2 instruments grandfathering 6.8 -

Tier 2 Capital after transitional provisions 3,354.5 2,187.8

Tier 2 capital regulatory adjustments -339.0 -361.4

of which: negative elements for deduction excess of expected

losses over impairment losses -353.1 -370.6

Tier 2 Capital 3,015.4 1,826.3

TOTAL OWN FUNDS 10,724.6 9,441.6

Dec ‘14 ratios:

CET1 affected by update of risk parameters to end 2013 and

benefits from DT release following impairment of goodwill

TCR affected by a recent more restrictive interpretation given

by Authorities on the qualifications for inclusion in the

regulatory capital of subordinated liabilities issued after

31/12/2011, with an amortisation schedule which starts to run

before five years since issuance, which are totally excluded

from the calculation of own funds. The UBI Group has issued

one single subordinated bond for approximately 926 mln/€

with an impact of 150 bps on the total capital ratio

* Following the merger of Banca 24/7 in UBI Banca, effective July 2012, UBI Banca is managing the remaining stock of non captive mortgages and personal

and special purpose loans. Prestitalia is managing the “salary backed loan” operations

** Minor companies, IAS adjustments, loans not segmented to commercial portfolios and intercompany eliminations

*** Repos with CCG for the investment of liquidity made by UBI Banca and higher margins on liability repos

Total Lending up by 0.8% vs Sept ‘14

Small business: turnover up to €15 mln

Core Corporate: turnover from €15 to €250 mln

Large Corporate: turnover > €250 mln

27

€ bln, end date 31 Dec '13 30 Sept '14 31 Dec '14 changes

vs Dec '13

changes

vs Sept '14

44.0 42.8 42.3 -3.9% -1.0%

of which: Private Customers 21.2 21.2 21.2 -0.1% 0.1%

Small business 14.4 14.0 13.8 -3.5% -1.3%

UBI Banca (former Banca 24/7)* 6.0 5.5 5.4 -11.1% -2.5%

Prestitalia 2.4 2.1 1.9 -21.4% -6.8%

28.0 26.9 27.1 -3.1% 0.6%

of which: Core corporate 14.7 14.2 14.1 -3.5% -0.1%

Large corporate 8.0 7.8 8.1 0.9% 3.5%

UBI Banca (former Centrobanca) 5.3 5.0 4.9 -8.0% -1.9%

0.7 0.7 0.8 4.6% 5.7%

15.7 14.5 15.4 -1.4% 6.4%

of which: UBI Leasing 7.4 7.0 6.9 -6.7% -1.4%

UBI Factor 2.3 2.0 2.0 -11.6% 1.4%

UBI Banca*** 1.4 0.7 1.6 14.4% n.s.

88.4 84.9 85.6 -3.1% 0.8%Total lending

Retail

Corporate

Private

Other**

Annex 3

Asset Quality Details

28

* As a percentage of total loans

Annex 4

LOANS TO CUSTOMERS - AS AT 31 DECEMBER 2014

GROSS EXPOSURE IMPAIRMENT

LOSSES € mln

NPLs (Sofferenze) 7.31% 2,527

IMPAIRED LOANS (Incagli) 5.65% 827

RESTRUCTURED LOANS 0.98% 163

PAST DUE 0.61% 24

TOTAL DETERIORATED LOANS 14.55% 3,541

€ mln %*

CARRYING AMOUNT

4.70% 4,025 38.56%

4.95% 4,237 16.33%

0.84% 717 18.51%

0.61% 529 4.39%

11.10% 9,508 27.13%

COVERAGE

RATIO %

TOTAL PERFORMING LOANS 85.45% 482 88.90% 76,136 0.63%

TOTAL LOANS TO CUSTOMERS 100% 4,023 100% 85,644 4.49%

6,551

880

554

13,049

76,618

89,667

€ mln %*

5,064

LOANS TO CUSTOMERS - AS AT 30 SEPTEMBER 2014

GROSS EXPOSURE IMPAIRMENT

LOSSES € mln

NPLs (Sofferenze) 7.39% 2,665

IMPAIRED LOANS (Incagli) 5.57% 799

RESTRUCTURED LOANS 0.98% 146

PAST DUE 0.76% 30

TOTAL DETERIORATED LOANS 14.70% 3,640

€ mln %*

CARRYING AMOUNT

4.60% 3,911 40.53%

4.90% 4,162 16.11%

0.86% 729 16.73%

0.76% 647 4.49%

11.12% 9,448 27.82%

COVERAGE

RATIO %

TOTAL PERFORMING LOANS 85.30% 428 88.88% 75,498 0.56%

TOTAL LOANS TO CUSTOMERS 100% 4,069 100% 84,947 4.57%

6,576

875

677

13,089

75,926

89,016

€ mln %*

4,961

29

Other key elements to assess the Group loan portfolio

December 2014

Loan To Value* (Network banks + UBI):

Performing loans:

Retail: 45.6% (44.8% in Dec ’13)

Corporate: 39.8% (42.1% in Dec ‘13)

Impaired Loans:

Retail: 55.6% (57.8% in Dec ’13)

Corporate: 49.4% (51.9% in Dec ‘13)

% of Collateralised (real estate) Positions*:

Total portfolio: > 60% (of which NPLs and Impaired > 65%)

* Arithmetic mean

Annex 5

30

Securities Portfolio Composition*

Annex 6

* Analysis refers to a portfolio which excludes participations, some smaller portfolios and derivatives. Management accounts,

positions determined on trade date

** Fixed rate securities with asset swaps are considered as floating rate securities; securities in asset swap represent 97% of

floating rate securities as at 31st December 2014

Composition of the portfolio 31.12.2013 30.09.2014 31.12.2014

Government bonds 93.3% 94.8% 95.6%

Corporate bonds (mainly bank issues) 4.6% 4.4% 3.3%

Hedge funds 0.6% 0.6% 0.5%

Funds and shares 1.5% 0.3% 0.6%

Floating rate** 20.4% 52.1% 57.9%

Fixed rate 74.5% 44.1% 38.2%

Structured securities 3.0% 3.0% 2.8%

Shares, funds, convertible bonds 2.2% 0.9% 1.1%

Securities in euro 99.7% 99.7% 99.7%

Securites of the euro area 99.6% 99.7% 99.9%

USA securities 0.0% 0.00% 0.00%

Investment grade 99.1% 98.7% 99.4%

Average rating Baa2 Baa2 Baa2

BY TYPE OF

FINANCIAL

INSTRUMENT

BY FINANCIAL

PROFILE

BY CURRENCY

BY GEOGRAPHICAL

DISTRIBUTION

BY RATINGS (BONDS)

FY13 and FY14 P&L non-recurring items: detail

31

Post tax contribution of non-recurring items to net profit of the period (in € mln)

Annex 7

FY13 FY14

Net stated profit

Net profit excluding non-recurring items

250.8

100.2

Recognition of IRAP* DTA on tax relief on goodwill

Disposal of equity stakes

Profit on the repurchase of financial liabilities

(subordinated EMTN)

Profit on Bank of Italy stake

Net impairment losses on AFS financial assets

Modification of 2013 IRES** tax rate

Net impairment losses on tangible and intangible

assets

Leaving incentives

Intervention by the Interbank Deposit Protection Fund

212.6

47.6

20.5

(20.7)

(37.5)

(37.7)

(26.0)

(11.4)

3.2

Net stated profit

Net profit excluding non-recurring items

(725.8)

146.5

Disposal of equity stakes

Leaving incentives

IT write off

92.5

(76.3)

(2.6)

(882.7)

Integration costs BPI-IW Bank (1.0)

Net impairment losses on tangible and intangible

assets

* IRAP = regional production tax

** IRES = corporate income tax

Profit on the disposal of real estate properties 6.5

Intervention by the Interbank Deposit Protection Fund (0.4)

Net impairment losses on AFS financial assets (4.4)

Change in the substitute tax on the valuation of profit

participation stakes in the Bank of Italy (3.8)

32

Net Interest Income - Customer Spread Details

* Average period data referred to the whole consolidated Group (Network banks+ Product companies + UBI), unless otherwise stated

1Q14 and 2Q14 values restated for consistency

Annex 8

CUSTOMER SPREADS

in bps on avg. STOCK* 1Q14 2Q14 3Q14 4Q14

1M Euribor 23 23 7 1

Mark up vs 1M Euribor 278 277 286 281

Short term 361 348 347 335

Medium-long term 253 257 268 266

Mark down vs 1M Euribor -98 -95 -99 -96

Sight deposits -8 -7 -19 -20

Term deposits -191 -163 -130 -125

Retail bonds -146 -146 -148 -142

Institutional bonds -186 -183 -191 -189

UBI Group - Customer spread 180 182 187 185

of which

UBI Network Banks cust. spread 197 199 204 203

33 * Includes FX negotiations

Net Commission Income Details

Annex 9

Net Commission Income (€ mln) FY13 FY14% FY14 vs.

FY13

Guarantees (on State guaranty bonds) (46.5) (18.4) -60.5%

BANKING RELATED COMMISSIONS 645.3 614.6 -4.8%

of which:

Guarantees (banking activity) 47.6 48.8 2.6%

Collection and payment services 127.3 125.8 -1.2%

Services for factoring transactions 23.2 18.7 -19.3%

Current accounts management 205.5 204.0 -0.7%

Other services 241.8 217.3 -10.1%

MANAGEMENT, TRADING & ADVISORY

SERVICES*588.3 630.4 7.2%

of which:

Portfolio management 252.3 266.8 5.7%

Placement of securities 147.3 165.5 12.3%

Third party services distribution 153.4 171.9 12.0%

TOTAL 1,187.1 1,226.6 3.3%

FY14 vs. FY07-19.0%

An impressive cost management story strongly committ ed to efficiency(Amounts net of non-recurring items)

(€ mln, net of PPA)

TOTAL OPERATING COSTS

1,294 1,305 1,316 1,287 1,244 1,228 1,222 1,209 1,216 1,198

1,137 1,128 1,072 1,070 1,044 1,060

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H

Annex 10

STAFF COSTS OTHER ADM. EXPENSES

-18.1% -17.2%

(€ mln) (€ mln, net of PPA)FY14 vs. FY07FY14 vs. FY07 FY14 vs. FY07FY14 vs. FY07

805 785 811

774 745

720 714 704 738

713 689 685

646 655 648 654

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H

2007 2008 2009 2010 2011 2012 2013 2014

369 396

372 376 383 387 385 385 356 362 352 350

335 325 311 322

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H

2007 2008 2009 2010 2011 2012 2013 2014

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H

2007 2008 2009 2010 2011 2012 2013 2014

21,700 21,55020,680 20,926

20,285 20,26019,699 19,546 19,407 19,306 19,088

18,485 18,337 18,43818,132

Apr June Dec June Dec June Dec June Dec June Dec June Dec June Dec

2007 2008 2009 2010 2011 2012 2013 2014

1,970 1,929 1,944 1,939 1,9551,884 1,892 1,877 1,875

1,8011,727 1,726 1,725

1,673 1,670

Apr June Dec June Dec June Dec June Dec June Dec June Dec June Dec

2007 2008 2009 2010 2011 2012 2013 2014

STAFF HEADCOUNTS

-16.4%

NUMBER OF DOMESTIC BRANCHES

-15.2%

December 2014 vs. April 2007 December 2014 vs. April 2007

Note: staff headcounts at the end of the period34