PRESS RELEASE

UBI Group results as at 31.03.2020

The year 2020 began for UBI Banca with yet again solid operating and financial results. In the first quarter of the year, which included the first impacts of the Covid 19 emergency which started to manifest in March, net profit came to €93.6 million (more than twofold the €38.1 million result for 4Q 2019 and up 12.2% on €83.4 million in 1Q 2019)1, notwithstanding substantial additional specific impairment losses booked on UTPs in those sectors hit hardest by the Covid 19 crisis.

The fully loaded CET 1 ratio rose significantly to 12.86% (+57 bps vs 31.12.2019) and the total capital ratio to 17.05% (+122 bps vs 31.12.2019). Gross non-performing loans fell further by 2.4%, entirely the result of internal workout, to stand at 7.5% of gross loans (6.7% pro forma with account taken of wholesale disposal of bad loans amounting to approx. €800 million currently in progress). The Texas ratio was 48.8% (55.13% at year-end 2019).

The quality of performing loans improved further (the high-risk component dropped to 2.7%); the default rate decreased consequently to 1% including the new definition of default.

The Bank reacted extremely rapidly to the crisis created by Covid19 to protect both its employees and customers, leveraging, amongst other things, on the efficiency and flexibility of its IT systems and organizational structures which were up to the emergency.

The Group took immediate action to offer all types of support to customers, confirming fast action, high-performance and responsive IT system, the ability to respond to customer demands with sound and concrete answers, flexibility and swift adaptation of its business model. This included the following:

  • allsmall business, premium, private banking and corporate account managers (over 4,700 staff) were enabled to conduct remote sales, offering products and services (financial advisory, lending products, etc) and processing contracts remotely. As a result commercial activities continued even at the peak of the crisis;
  • on 1st April UBI Banca launched its "Rilancio Italia" scheme, a financial support programme worth up to €10 billion for businesses, households and the third sector. These funds are earmarked for advances on temporary unemployment benefits, loans to provide companies with new liquidity and deferred repayments of mortgages and loans, with interventions which combine a response to meet urgent needs with the intention to support economic recovery in coming months;

1 Restated to take account of a change in the measurement criteria employed for real estate assets. See the methodological note and the attached statements. Net profit previously published amounted to € 82.2 million in 1Q 2019 and to 60.1 in 4Q2019.

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  • UBI Banca has also taken action to allow easier access, including remote access, to the opportunities offered by government decrees. The moratoriums granted reached 130,000 and approximately 50% of these were in terms of outstanding debt in Lombardy. UBI has been recognised as the fastest bank to process applications for loans of up to €25,000, thanks to swift and smooth procedures implemented in co-operation with SF Consulting, an associate company of the Group: as at the 7th of May, loans which have obtained the guarantee and are ready for disbursement amount to 40% of the system total. The Bank's strong capital position and its ability to respond to local needs led to the implementation of initiatives to support households and businesses to a far greater extent than would be expected from the Group's natural market share.
    An agreement has also been signed to grant loans with SACE (Italian state export credit agency) guarantees.

The health and safety measures put in place2 allowed the Group to keep all its branches open, although with reduced opening hours, with the exception of some mini-branches. Smart working was enabled for all Group employees, with the set-up of 20,000 remote workstations used at the peak of the crisis by approximately 50% of the Group's staff.

Customer service also continued in the contact centre which was fully operational in smartwork mode. In order to guarantee the best possible customer service, the contact centre was reinforced with additional staff from the branch network for a total of approximately 420 people in contact with customers.

***

Income statement figures for 1Q 2020

Stated net profit of €93.6 million, more than double the €38.1 million in 4Q 2019 and +12.2% compared with €83.4 million in 1Q 20193

Net interest income remained resilientat €405.2 million, more or less unchanged compared with €412 million in 4Q 2019 if account is taken of the smaller number of days in the current quarter, notwithstanding a lower contribution from the securities portfolio.

Compared with €445.6 million in 1Q 2019, the 2020 result was affected by a higher cost of funding, partly in relation to institutional issuances carried out successfully in 2019, and a reduction of the IFRS9 contribution as a consequence of the wholesale disposals concluded in 2019.

As a matter of fact, the issue plan enabled the requested MREL levels to be achieved ahead of schedule, which made the Bank independent of potential market closures, while the reduction in non- performing exposures allowed it to face the crisis with fewer concerns and greater strength.

The customer spread grew continuously to 1.77% (1.75% in 4Q 2019 and 1.76% in 1Q 2019).

Net fee and commission income was again strong at €420.5 million, +4.9% compared with €400.9 million in 1Q 2019(€446.3 million in 4Q 2019, which benefited from greater performance fees on funds and Sicav's normally recognised at year-end).

  1. The Group immediately put all possible health and safety measures in place, which were continuously reinforced as time went on: enhanced cleaning, facemasks, disinfectant liquids, plastic dividers, shift-working, appointments for branch access, etc.
  2. The comparative quarters were impacted by the change in the measurement criteria for properties. See the methodological note and the attached tables. Net profit previously published amounted to € 82.2 million in 1Q 2019 and to 60.1 in 4Q2019.

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Operating expenses fell- net of systemic contributions - to €551.6 million, reducing continuously (-3.6%)compared with €572.2 million in 4Q 2019 and (-1.7%)compared with €561 million in 1Q 2019, notwithstanding the application of the new national labour contract.

Loan losses stood at €155.6 million, of which approximately €50 million due to greater, mainly specific, impairment losses recognised in March 2020 on unlikely-to-payloans in the sectors hit hardest by the Covid 19(compared with €128.6 million in 1Q 2019 and €208.2 million in 4Q 2019 which included most of the cost of the approximately €800 million disposal of SME bad loans currently in progress)

***

The balance sheet

  1. Non-performingexposures reduce further and capital rises
    • Gross non-performing exposures of €6.7 billion, down 2.4% compared with 31.12.2019 and 29.4% compared with 31.03.2019.
      The ratio of gross non-performing exposures stood at 7.5% of total gross loans (7.8% as at 31.12.2019 and 10.4% as at 31.03.2019). Preparation for the disposal of a portfolio of approximately €800 million gross of SME bad loans is continuing. The cost has already been largely included in impairment losses on loans recognised in the last quarter of 2019. If that operation were included, expected to be completed in 3Q 2020, pro forma gross non-performing exposures would amount to 6.7%4of total gross loans.
    • Default rate5 in 1Q 2020 of 1% (1.1% in 2019).
    • Texas ratio6 of 48.8% (55.1% at year-end 2019).
    • Fully loaded CET1 ratio of 12.86% (12.29% at year-end 2019) and an MDA buffer (CET1) of 361 bps7 (459 bps in the hypothesis of full application of art104a of CRD5).
    • Fully loaded Total Capital Ratio of 17.05% (15.83% at year-end 2019).
  3. Liquidity and regulatory ratios are again solid
    • The Group already amply exceeds the MREL requirements (total and subordinated)
    • LCR>1
    • NSFR >1 even net of the contribution from TLTRO2 funding
    • Liquid assets of €36.8 billion, of which €23.8 billion available

***

Milan, 8th May 2020 - the Board of Directors di Unione di Banche Italiane Spa (UBI Banca) approved the consolidated results for the first quarter of 2020.

Methodological note

  1. The ratio was calculated by excluding the amount of €800 million from the numerator (gross non-performing exposures) and from the denominator (total gross loans).
  2. Default rate: annualised gross migrations of performing exposures to non-performing status/initial stock of gross performing loans and advances (item 40.2) in the reclassified consolidated balance sheet).
  3. Calculated as net non-performing exposures / (equity, excluding profits and intangible assets).
  4. The MDA buffer represents the maximum available amount for dividend distribution. For UBI Banca, the CET1 ratio is compared with the SREP level (9.25%)

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It is underlined that as of 31st March 2020 the UBI Group changed the measurement criteria for real estate assets, adopting the fair value criterion in place of that of cost.

As a consequence of the above, the income statement and balance sheet figures for the comparative periods have been restated and they therefore differ from those published as at their respective reporting dates.

In compliance with IAS 8, the comparative figures for previous periods have been restated following retrospective application (from 1.1.2019) of the change in the measurement criteria for real estate assets, subject to IAS 40 rules.

On the contrary, the change in the measurement criteria for operational real estate assets, pursuant to IAS 16, has been applied prospectively from 31st March 2020, in compliance with IAS 8.

Following the change in the measurement criteria for real estate assets, we report the following as of these financial statements:

  • the item "Property, plant and equipment" in the balance sheet includes measurement of "Operational properties" pursuant to IAS 16 and "Investment property" pursuant to IAS 40, at the "revalued amount" and at "fair value" respectively;
  • the item "Depreciation and net impairment losses on property, plant and equipment and intangible assets" in the income statement includes, with regard real estate assets, only the depreciation of "Operational properties" since "Investment properties" measured at fair value are not depreciated;
  • the item "Net income (loss) from fair value change in property, plant and equipment and intangible assets" includes

the result for changes in the fair value of properties in the period, in compliance with the new measurement criteria adopted.

Reference is made to the restated financial statements attached.

Operating performance of the Group

The first quarter of 2020 recorded a net profit of €93.6 million, a more than twofold increase compared with €38.1 million8 achieved in the fourth quarter of 2019 and up 12.2% on €83.4 million9 in the first quarter of 2019.

In 1Q 2020, net operating income amounted to €320 million, a slight increase compared with €317.7 million recorded in 1Q 2019 and down compared with €371.9 million in 4Q 2019, primarily the result of greater systemic contributions (€42 million in 1Q 2020 compared with €4.4 million in the 4Q 2019).

In detail, net interest income amounted to €405.2 million (-1.7% vs 4Q 2019 and -9.1% vs 1Q 2019), composed as follows:

  • net interest income from banking business with customers, net of the impact of IFRS9, amounted to €359 million compared with approximately €364.5 million in 4Q 2019 and €383.1 million in 1Q 2019.
    This result is in line with that for 4Q 2019, if it is considered that the first quarter of the year is one day shorter (-€4 million), while in the comparison with 1Q 2019 it was affected by a higher impact of the funding component due to both substantial institutional issuances carried out in 2019 and a fall in market interest rates which had an overall impact of around 10 basis points on the markdown. As a result of good performance by the markup on loans, which rose again in 1Q 2020, the customer spread10 rose to 177 basis points from 175 bps previously and from 176 bps in 1Q 2019.
    The IFRS9 contributionwas almost unchanged at €11.2 million in 1Q 2020 compared with 4Q 2019, while it was down by approx. €15 million on 1Q 2019, due primarily to the effect of the wholesale disposals carried out in 2019.
    It is underlined that issuances carried out in 2019 enabled the requested MREL levels to be achieved ahead of schedule, which made the Bank independent of potential market closures, while the reduction in non-performing exposures allowed it to face the crisis with fewer concerns and greater strength;
  1. See the methodological note and the attached statements.
  2. See the methodological note and the attached statements.
  3. These are spreads that do not include the benefits of TLTRO2.

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  • the contribution from financial activitiesamounted to €36.8 million, down from €50.7 million in 4Q 2019 and from €44.4 million in 1Q 2019, as a result of lower profitability of the securities portfolio and a negative impact by hedging derivatives;
  • net income from business on the interbank market and otherwas favourable, with the negative impact down to -€1.9 million in 1Q 2020 compared with -€12.7 million in 4Q 2019 and -€7.9 million in 1Q 2019.

Net fee and commission income grew to €420.5 million, an increase of 4.9% compared with €400.9 million in 1Q 2019 (€446.3 million in 4Q 2019, which included greater performance fees on funds and Sicav's normally recognised at year-end).

During the quarter, the contribution from services relating to securities business rose to €243 million from €225.5 million in 1Q 2019 (€252.9 million in 4Q 2019). Net of performance fees and upfront commissions related to funds, Sicav's and insurance products, the contribution from services related to securities business rose to approximately €183.2 million in 1Q 2020 from €177.1 million in 4Q 2019 and from €171.3 million in 1Q 2019, the best result ever recorded for this item thanks to strong performance by fees and commissions on trading in financial instruments and the placement of securities.

The contribution from fees and commissions relating to general banking business was €177.5 million, up on €175.4 million in 1Q 2019, but down compared with €193.4 million in 4Q 2019, which moreover included seasonal items normally recognised in the last period of the year (e.g. rappel and other).

The finance result was positive by €53.6 million in 1Q 2020 as a result of good performance from "net income from the disposal/repurchase of financial assets and liabilities" achieved by the partial disposal of the corporate bond portfolio at a time of favourable market conditions. This compares with +€58.2 million achieved in 4Q 2019 and +€37.4 million in 1Q 2019.

Constant control over costs again had a positive impact on operating expenses.

It is underlined that, unlike other major Italian banks, UBI Banca includes systemic contributions to the Resolution Fund and to the Deposit Guarantee Scheme within operating expenses and, more specifically, within other administrative expenses. If these contributions are included, operating expenses totalled €593.6 million in 1Q 2020, compared with €576.7 million in 4Q 2019 and €602.9 million in 1Q 2019.

If these contributions are excluded (approximately €42 million in both 1Q 2020 and 1Q 2019 and €4.4 million in 4Q 2019), and therefore on a comparable basis with other major Italian banks, then operating expenses amounted to €551.6 million, down constantly (-3.6%)compared with €572.2 million in 4Q 2019 and (-1.7%)compared with €561 million in 1Q 2019.

In detail:

  • staff costs totalled €355 million, down 2.6% compared with €364.4 million in 1Q 2019 (and almost unchanged compared with €355.5 million in 4Q 2019), notwithstanding the application of the new national labour contract, thanks to staff exits agreed in trade union agreements signed in previous periods. On the basis of those agreements a further 133 staff exits are still scheduled starting from the end of March 2020;
  • other administrative expenses, net of systemic contributions (approximately €42 million in both 1Q 2020 and in 1Q 2019 and €4.4 million in 4Q 2019), were down substantially to €139.4 million in 1Q 2020, a decrease of 11.9% compared with €158.2 million in 4Q 2019 and of 3.2% compared with €144 million in 1Q 2019;
  • depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets amounted to €57.2 million in 1Q 2020, compared with €52.5 million in 1Q 2019 (€58.5 million in 4Q 2019).

In the first quarter of the year net impairment losses on loans and advances to customers amounting to €155.6 million were recognised, of which approximately €50 million relating primarily to specific

5

impairment losses recognised on unlikely-to-pay exposures in the sectors hit hardest by the Covid 19 (retail businesses, transport, hospitality and catering, textiles and clothing, hire-travelagencies-business support services, etc.), which brought average coverage for these sectors as a whole to approximately 35%.

This amount for impairment losses recognised in 1Q 2020 compares with €128.6 million recognised in 1Q 2019 and €208.2 million in 4Q 2019 which included most of the costs incurred for the announced wholesale disposal of approximately €800 million of bad loan SME positions.

Net impairment losses on loans give an annualised loan loss rate of 73 basis points, compared with 59 basis points in 1Q 2019.

Finally, estimated taxes on income for the period from continuing operations in 1Q 2020 amounted to €52.4 million, to give a tax rate of 33.96% (compared with 27.9% in 1Q 2019 and 18.6% in 4Q 2019).

Profit net of non-recurring items11 amounted to €99.3 million compared with €83.9 million in the fourth quarter of 2019 and €126.1 million in the first quarter of 2019.

***

Balance sheet figures

Net loans and advances to customers12 as at 31st March 2020 totalled €85.8 billion, compared with €84.6 billion at year-end 2019.

Within the item:

  • net performing exposuresgrew to €81.7 billion from €80.4 billion at the end of December 2019;
  • net non-performingexposures reduced constantly, and declined by €138.1 million during the quarter as a result of internal workout action taken, falling to €4.03 billion from €4.17 billion as at 31st December 2019 (€5.76 billion as at 31.03.2019).

More specifically, with regard to trends for non-performingexposures:

  • total grossnon-performing exposures13 amounted to €6,673.2 million, down 2.4%(€165.2 million) compared with 31st December 2019.
    The ratio of gross non-performing exposures fell further to 7.51%(7.80% in December 2019 and 10.36% in March 2019) and to approximately 6.7%pro forma if account is taken of the disposal, currently in progress, of approximately €800 million of exposures to small and medium-sized enterprises classified as bad loan positions.
    The default rate, which measures the migration of new inflows of gross loans from performing to non-performing status, was again low at 1%, in line with 1.1% recorded for the full year 2019, inclusive of the impact of the new definition of default.
    At the end of March 2020, coverage for total non-performingexposures was slightly up, both in terms of stated coverage (39.56% compared with 39% at the end of 2019) and inclusive of write- offs (52.03% compared with 50.92% at the end of 2019);

11 The main non-recurring items net of taxes and minority interests include the following:

  • in 1Q 2020: -€5.8 million net (-€8.7 million gross) relating to the first time application of the fair value measurement of properties;
  • in 1Q 2019: -€42.6 million net (-€63.7 million gross) in relation to the March 2019 trade union agreement;
  • in 4Q 2019: -€46.8 million of redundancy incentives (-€70 million gross), +€1.2 million of profit on the disposal of investments

(+€1.8 million gross), -€0.3 million of impairment losses on real estate properties (-€0.4 million gross).

  1. Item 40. 2) in the reclassified consolidated balance sheet.
  2. See the tables attached.

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  • in net terms, total non-performingexposures declined to €4,033.4 million compared with €4,171.5 million in December 2019, a decrease of 3.3% (€138.1 million). Net non-performing exposures as a percentage of total net loans fell to 4.70% from 4.93% as at 31.12.2019.

As a result of the reduction in total net non-performing exposures, the Texas ratio fell further to 48.8%, showing continuous improvement compared with 55.1% in December 2018 and 78% in March 2019.

As at 31st March 2020, the direct banking funding of the Group amounted to €94 billion, down compared with €95.5 billion in December 2019 due primarily to a contraction in the corporate component within the item "current accounts and deposits" (down by €1.1 billion to €68 billion on aggregate), designed, amongst other things, to reduce expenses on reserves held with the ECB, and to maturities and repurchases of retail bonds (down by €0.3 billion to €4.6 billion), while other items remained more or less stable. Direct banking funding grew slightly, on the other hand, compared with €93.6 billion in March 2019.

Indirect funding was influenced by market performance and stood at €92.2 billion at the end of March 2020 compared with €101.5 billion at year-end2019. Net of the performance effect, which impacted both assets under management and assets under custody, indirect funding fell by 0.5%.

More specifically, assets under management in the narrow sense totalled €41.2 billion (-10.1% vs €45.8 billion at year-end 2019 and +0.3% net of the performance effect) and assets under custody totalled €23.9 billion (-15.6% vs €28.4 billion at year-end 2019 and -3.9% net of the performance effect due to the absence of an institutional position), while insurance products were largely unchanged at €27.1 billion (+1.5% net of the performance effect).

As a result of the Funding Plan implemented during 2019, mainly on institutional markets, the Bank is already exceeding MREL requirements (both total and subordinated), which will come into force as of June 2020.

Following repayments of €1.5 billion made with value date 25th September 2019 and of €1 billion with value date 18th December 2019, Group exposure to the ECB in TLTRO2 amounted to €10 billion nominal. The contractual maturity schedule for that TLTRO2 exposure, recognised under "due to banks", and therefore not included in direct funding, involves repayment of €7.5 billion in June 2020 and €2.5 billion in March 2021. No recourse has been made at present to TLTRO3 funding.

The Group continues to benefit from a solid liquidity position, with ratios (Net Stable Funding Ratio and Liquidity Coverage Ratio) constantly higher than one. The NSFR was again confirmed at greater than one even net of the contribution from TLTRO2.

Eligibile assets available to the Group as at 31st March 2020, totalled €36.8 billion (of which €23.8 billion available) already net of haircuts and inclusive of €5.8 billion of liquidity deposited with the ECB.

The Group's financial assets14 grew to €20.1 billion at the end of March 2020 (€19.2 billion in December 2019), the result of a slight increase in short term Italian government securities in order to invest liquidity and in the trading portfolio. Altogether Italian government securities amounted to €11 billion compared with €9.8 billion at year-end 2019 (and, net of insurance company positions, to €9.5 billion compared with €8.4 billion at year-end 2019), accounting for 54.6% of the securities portfolio.

As at 31st March 2020, net equity attributable to the shareholders of the Parent, inclusive of profit, amounted to €10,095,693 thousand, up compared with 9,539,42415 thousand in December 2019, due to the AT1 issuance carried out in January 2020, to the impact of the change in the measurement criterion

  1. The sum of items 20.3), 30.3) and 40.3) - government securities in the reclassified consolidated balance sheet.
  2. Restated to take account of change in valuation criteria.

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for real estate assets and to profit for the quarter, notwithstanding the negative impact of market performance on securities fair value reserves.

Again at the end of March 2020, the Group's CET1 ratio was 12.86% fully loaded compared with 12.29% at year-end 2019. The main benefits recorded in the period were attributable to the change in the criterion for the measurement of real estate assets (a total of approximately +38 basis points), to the inclusion of the portion of 2019 profit set aside for dividends which were not declared following the ECB recommendation of 27th March 2020 (26 basis points approx.) and to profit for the period (net of the pro rata dividend provided for under the 2020 Business Plan), which more than compensated for the negative impact of wider spreads on the securities portfolio and the inclusion of the impact of TRIM inspections.

It is underlined that even net of the amount set aside for the 2019 dividend which was not declared following the ECB recommendation, the CET1 ratio would still be higher than 12.5% forecast under the 2022 Business Plan.

The Group's Total Capital Ratio was 17.05% fully loaded (15.83% as at 31.12.2019) and 17.08% phased-in (15.88% as at 31.12.2019), benefiting from both the increase in the CET1 capital and from the AT1 issuance of approximately €400 million carried out in the January 2020.

Finally, in March 2020 the Group's leverage ratio was 5.89% phased-in and 5.87% fully loaded (5.44% and 5.42% in December 2019).

***

As at 31st March 2020, total staff of the UBI Banca Group numbered 19,629 compared with 19,940 at the end of December 2019.

Again as at 31st March 2020, the domestic branch network was composed of 1,566 branches (1,575 as at 31st December 2019).

***

Statement of the senior officer responsible for preparing the company accounting documents

Elisabetta Stegher, as the Senior Officer Responsible for preparing the company accounting documents of Unione di Banche Italiane Spa, hereby declares, in compliance with the second paragraph of article 154 bis of the Testo unico delle disposizioni in materia di intermediazione finanziaria (Consolidated Finance Law), that the financial information contained in this press release is reliably based on the records contained in company documents and accounting records.

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Outlook

The Covid19 emergency is a crisis that is different from others both because of how it originated and how it might develop, which makes any type of forecast complex. However, even in this crisis, the key factor is the quality of credit. To face this unprecedented crisis, swifter and more incisive measures were taken by domestic and international authorities to mitigate its impact.

These measures, recently implemented, should allow the Bank to preserve its level of net interest income. Weaker performance by the fee and commission component relating to transactions following the slowdown in the economy is expected, while the fee and commission component relating to assets under management will be affected by the crisis in the first part of the year, but will depend on the performance of markets in the second part of the year.

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Maximum efforts will continue to be made to contain operating expenses, although in a different manner, driven by smartworking.

As concerns loan losses, these will be higher than forecast for the first year under the Business Plan, although mitigated by the use of support initiatives included in the mentioned recent measures. The Bank has already made greater provisions for unlikely-to-pay loans in those sectors more exposed to the crisis with an impact on 1Q 2020 of about 50 million (with an overall cost of credit of 73 bps), and it will focus its attention during the year on these loans, given the high quality of performing loans (the level of high-risk performing loans fell further in 1Q 2020 to 2.7%, the default rate is expected to remain low and coverage for performing loans is among the highest for major Italian banks). The internal workout strategy for non-performing loans is therefore confirmed.

From a balance sheet viewpoint, the UBI Group's capital position, its solid liquidity and its asset quality enables it to face this crisis with a reasonable level of confidence, as already occurred in previous crisis, and to generate profits on a continuing basis to the benefit of all stakeholders (including dividends when authorised by the ECB).

***

For further information please contact:

UBI Banca - Investor relations - Tel. +39 035 3922217

Email: investor.relations@ubibanca.it

UBI Banca - Media relations - Tel. +39 027781 4213 - 4938 - 4139

Email: media.relations@ubibanca.it

Copy of this press release is available on the website www.ubibanca.it

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Attachments - UBI Banca Group: Reclassified and mandatory financial statements

  • Impact of the change in the measurement criteria for real estate assets on the reclassified quarterly income statements
  • Reclassified consolidated income statement
  • Reclassified consolidated balance sheet
  • Reclassified consolidated quarterly income statements
  • Reclassified consolidated income statement net of the most significant non-recurring items

(brief and detailed)

  • Consolidated balance sheet - mandatory statement
  • Consolidated income statement - mandatory statement
  • Loan tables

***

Notes to the reclassified consolidated financial statements

The mandatory financial statements have been prepared on the basis of Bank of Italy Circular No. 262/2005 of 22nd December 2005, as introduced by the 6th update, dated 30th November 20181.

The reclassified financial statements have been prepared in order to allow a meaningful management accounting commentary on capital and operating figures, not subject to audit by the independent auditors, on the basis of the financial statements pursuant to the 6th update of Bank of Italy Circular No. 262/2005.

As of 31st March 2020 the UBI Group changed the criterion it uses to measure real estate assets, adopting the fair value criterion in place of that of cost. As a consequence of the above, the restated comparative periods differ from those published as at their respective reporting dates. In compliance with IAS 8, the comparative figures for previous periods have been restated following retrospective application of the change in the measurement criterion for real estate assets, subject to IAS 40 rules.

On the contrary, the change in the measurement criteria for operational real estate assets, pursuant to IAS 16, has been applied prospectively from 31st March 2020, in compliance with IAS 8.

Following the change in the measurement criteria for real estate assets, we report the following as of these financial statements:

  • the item "Property, plant and equipment" in the balance sheet includes measurement of "Operational properties" pursuant to IAS 16 and "Investment property" pursuant to IAS 40, at the "revalued amount" and at "fair value" respectively;
  • the item "Depreciation and net impairment losses on property, plant and equipment and intangible assets" in the income statement includes, with regard real estate assets, only the depreciation of "Operational properties" since "Investment properties" measured at fair value are not depreciated;
  • the item "Net income (loss) from fair value change in property, plant and equipment and intangible assets" includes the result for changes in the fair value of properties in the period, in compliance with the new measurement criteria adopted.

It follows that the figures reported are comparable with previous periods except for the item "Property, plant and equipment" in the balance sheet and the item "Net income (loss) from fair value change in property, plant and equipment and intangible assets" in the income statement.

***

In order to facilitate analysis of the Group's operating performance and in compliance with Consob Communication No. DEM/6064293 of 28th July 20062, a schedule has been included which provides a comparison of the normalised results for the period and shows the impact on earnings of the principal non-recurring events and items.

Reference is made to the "notes on the reclassified consolidated financial statements" contained in the periodic financial reports of the Group for more precise details of the rules followed in preparing the reclassified financial statements.

  • The update is applicable for financial statements ending as at 31st December 2019 or still open on that date.
  • Following the entry into force (on 3rd July 2016) of ESMA guidelines 2015/1415 which the Consob incorporated in its supervisory and issuer monitoring practices, the UBI Banca Group criteria for the identification of non-recurring items (reported in the normalised statements) have been subject to review. The criteria approved by the Management Board on 18th October 2016 limit the nature of non-recurring expenses to clearly specified items of income and expense (connected for example with the adoption of a Business Plan, or with the impacts of valuations and disposals of property plant and equipment, intangible and financial assets, with the effects of regulatory and methodological changes and also with extraordinary events including those of a systemic nature).

i

Impact of the change in the measurement criterion for real estate assets on the reclassified quarterly income statements

These consolidated financial statements incorporate the restatements of previous periods following the retroactive application of the measurement of real estate assets at fair value under IAS 40. The restatement of items in the income statement are reported below.

2019

4th Quarter

3rd Quarter

2nd Quarter

Figures in thousands of euro

restatement

restatement

restatement

impacts

impacts

impacts

10.-20.-140.

Net interest income

of which: TLTRO II

of which: IFRS 9 credit components

of which: IFRS 9 contractual modifications without derecognition components

70.

Dividends and similar income

Profits (losses) of equity-accounted investees

40.-50.

Net fee and commission income

of which: performance fees

80.+90.

Net income (loss) from trading, hedging and disposal/repurchase activities and from

+100.+110.

assets/liabilities measured at fair value through profit or loss

160.+170.

Net income from insurance operations

230.

Other net operating income/expense

1st Quarter restatement impacts

Operating income

-

-

-

-

190. a) Staff costs

190. b)

Other administrative expenses

of which: SRF and DGS contributions

Depreciation, amortisation and net impairment losses on property, plant and

210.+220.

equipment and intangible assets

2,590

2,212

1,851

1,809

Operating expenses

2,590

2,212

1,851

1,809

Net operating income

2,590

2,212

1,851

1,809

130. Net impairment losses for credit risk relating to:

130. a) - financial assets measured at amortised cost: loans and advances to banks

130. a) - financial assets measured at amortised cost: loans and advances to customers

  1. a) - financial assets measured at amortised cost: securities
  1. b) - financial assets measured at fair value through other comprehensive income
  1. a) Net provisions for risks and charges - commitments and guarantees granted

200. b) Net provisions for risks and charges - other net provisions

Net income (loss) from fair value change in property, plant and equipment and

260.

intangible assets

(39,386)

-

-

-

250.+280.

Profits (losses) from the disposal of equity investments

290.

Profit (loss) before tax from continuing operations

(36,796)

2,212

1,851

1,809

300.

Taxes on income for the period from continuing operations

11,289

(715)

(595)

(582)

340. (Profit) loss for the period attributable to minority interests

Profit (loss) for the period attributable to the shareholders of the Parent

before the Business Plan and other impacts

(25,507)

1,497

1,256

1,227

190. a) Redundancy expenses net of taxes and minority interests

190. b) Business Plan project expenses net of taxes and minority interests

Depreciation and net impairment losses on property, plant and equipment net of

210.

taxes and minority interests

3,432

350.

Profit (loss) for the period attributable to the shareholders of the Parent

(22,075)

1,497

1,256

1,227

ii

UBI Banca Group: Reclassified consolidated balance sheet

31.03.2020

31.12.2019

Changes

% changes

31.03.2019

Changes

% changes

restated

restated

Figures in thousands of euro

A

A-B

A/B

A-C

A/C

B

C

ASSETS

10.

Cash and cash equivalents

543,344

20.

Financial assets measured at fair value through profit or loss

2,445,729

1)

Loans and advances to banks

16,875

2)

Loans and advances to customers

275,614

3)

Securities and derivatives

2,153,240

Financial assets measured at fair value through other

30.

comprehensive income

11,476,015

1)

Loans and advances to banks

-

2)

Loans and advances to customers

-

3)

Securities

11,476,015

40.

Financial assets measured at amortised cost

101,689,225

1)

Loans and advances to banks

9,467,195

2)

Loans and advances to customers

85,778,114

3)

Securities

6,443,916

50.

Hedging derivatives

34,039

60.

Fair value change in hedged financial assets (+/-)

651,581

70.

Equity investments

293,676

80.

Technical reserves of reinsurers

104

90.

Property, plant and equipment

2,590,524

100.

Intangible assets

1,731,379

of which: goodwill

1,465,260

110.

Tax assets

3,748,151

120.

Non-current assets and disposal groups held for sale

291,766

130.

Other assets

997,059

Total assets

126,492,592

694,750

(151,406)

(21.8%)

606,459

(63,115)

(10.4%)

1,758,730

686,999

39.1%

1,504,110

941,619

62.6%

16,213

662

4.1%

14,715

2,160

14.7%

260,667

14,947

5.7%

270,459

5,155

1.9%

1,481,850

671,390

45.3%

1,218,936

934,304

76.6%

12,221,616

(745,601)

(6.1%)

11,237,472

238,543

2.1%

-

-

-

-

-

-

-

-

-

15

(15)

(100.0%)

12,221,616

(745,601)

(6.1%)

11,237,457

238,558

2.1%

101,736,289

(47,064)

-

103,161,917

(1,472,692)

(1.4%)

11,723,923

(2,256,728)

(19.2%)

11,327,078

(1,859,883)

(16.4%)

84,564,033

1,214,081

1.4%

87,095,528

(1,317,414)

(1.5%)

5,448,333

995,583

18.3%

4,739,311

1,704,605

36.0%

35,117

(1,078)

(3.1%)

20,298

13,741

67.7%

547,019

104,562

19.1%

320,370

331,211

103.4%

287,353

6,323

2.2%

263,307

30,369

11.5%

-

104

-

-

104

-

2,370,247

220,277

9.3%

2,492,994

97,530

3.9%

1,739,903

(8,524)

(0.5%)

1,721,712

9,667

0.6%

1,465,260

-

-

1,465,260

-

-

3,755,895

(7,744)

(0.2%)

4,123,686

(375,535)

(9.1%)

268,100

23,666

8.8%

10,320

281,446

n.s.

1,200,966

(203,907)

(17.0%)

1,357,159

(360,100)

(26.5%)

126,615,985

(123,393)

(0.1%)

126,819,804

(327,212)

(0.3%)

LIABILITIES AND EQUITY

10.

Financial liabilities measured at amortised cost

108,386,682

109,795,016

(1,408,334)

(1.3%)

111,409,557

(3,022,875)

(2.7%)

a) Due to banks

14,497,500

14,367,985

129,515

0.9%

17,776,512

(3,279,012)

(18.4%)

b) Due to customers

71,435,696

72,577,255

(1,141,559)

(1.6%)

69,830,403

1,605,293

2.3%

c) Debt securities issued

22,453,486

22,849,776

(396,290)

(1.7%)

23,802,642

(1,349,156)

(5.7%)

20.

Financial liabilities held for trading

617,709

555,296

62,413

11.2%

461,254

156,455

33.9%

30.

Financial liabilities designated at fair value

285,439

197,610

87,829

44.4%

124,296

161,143

129.6%

40.

Hedging derivatives

575,925

386,778

189,147

48.9%

107,022

468,903

n.s.

50.

Fair value change in hedged financial liabilities (+/-)

156,033

145,191

10,842

7.5%

124,767

31,266

25.1%

60.

Tax liabilities

300,268

210,882

89,386

42.4%

196,528

103,740

52.8%

70.

Liabilities associated with assets held for sale

-

2,331

(2,331)

(100.0%)

-

-

-

80.

Other liabilities

3,145,785

2,735,807

409,978

15.0%

2,271,216

874,569

38.5%

90.

Provision for post-employment benefits

264,793

289,641

(24,848)

(8.6%)

307,910

(43,117)

(14.0%)

100.

Provisions for risks and charges:

448,535

489,485

(40,950)

(8.4%)

495,298

(46,763)

(9.4%)

a) commitments and guarantees granted

54,255

54,005

250

0.5%

54,026

229

0.4%

b) pension and similar obligations

85,035

86,756

(1,721)

(2.0%)

87,111

(2,076)

(2.4%)

c) other provisions for risks and charges

309,245

348,724

(39,479)

(11.3%)

354,161

(44,916)

(12.7%)

110.

Technical reserves

2,149,201

2,210,294

(61,093)

(2.8%)

1,962,495

186,706

9.5%

120.+150.+160.

Share capital, share premiums, reserves, valuation reserves

+170.+180

and treasury shares

10,002,121

9,306,321

695,800

7.5%

9,243,950

758,171

8.2%

190.

Minority interests (+/-)

66,529

58,230

8,299

14.3%

32,076

34,453

107.4%

200.

Profit (loss) for the period/year (+/-)

93,572

233,103

(139,531)

(59.9%)

83,435

10,137

12.1%

Total liabilities and equity

126,492,592

126,615,985

(123,393)

(0.1%)

126,819,804

(327,212)

(0.3%)

iii

UBI Banca Group: Reclassified consolidated income statement

1Q 2020

1Q 2019

Change

% change

FY 2019

restated

restated

Figures in thousands of euro

A

B

A-B

A/B

C

10.-20.-140.

Net interest income

405,163

445,597

(40,434)

(9.1%)

1,725,105

of which: TLTRO II

10,111

12,391

(2,280)

(18.4%)

48,688

of which: IFRS 9 credit components

20,063

31,159

(11,096)

(35.6%)

110,595

of which: IFRS 9 contractual modifications without derecognition components

(8,803)

(5,156)

3,647

70.7%

(25,283)

70.

Dividends and similar income

4,776

5,170

(394)

(7.6%)

7,658

Profits (losses) of equity-accounted investees

7,808

6,315

1,493

23.6%

40,343

40.-50.

Net fee and commission income

420,483

400,936

19,547

4.9%

1,661,759

of which: performance fees

7,063

2,982

4,081

136.9%

40,598

80.+90.

Net income (loss) from trading, hedging and disposal/repurchase activities and from

+100.+110.

assets/liabilities measured at fair value through profit or loss

53,596

37,435

16,161

43.2%

104,284

160.+170.

Net income from insurance operations

2,501

3,502

(1,001)

(28.6%)

15,314

230.

Other net operating income/expense

19,269

21,662

(2,393)

(11.0%)

83,472

Operating income

913,596

920,617

(7,021)

(0.8%)

3,637,935

190. a)

Staff costs

(354,975)

(364,434)

(9,459)

(2.6%)

(1,427,650)

190. b)

Other administrative expenses

(181,402)

(186,031)

(4,629)

(2.5%)

(711,060)

of which: SRF and DGS contributions

(41,983)

(41,998)

(15)

(0.04%)

(107,585)

Depreciation, amortisation and net impairment losses on property, plant and equipment and

210.+220.

intangible assets

(57,181)

(52,485)

4,696

8.9%

(221,327)

Operating expenses

(593,558)

(602,950)

(9,392)

(1.6%)

(2,360,037)

Net operating income

320,038

317,667

2,371

0.7%

1,277,898

130.

Net impairment losses for credit risk relating to:

(157,114)

(130,003)

27,111

20.9%

(744,098)

130. a)

- financial assets measured at amortised cost: loans and advances to banks

(181)

(49)

132

n.s.

137

130. a)

- financial assets measured at amortised cost: loans and advances to customers

(155,616)

(128,568)

27,048

21.0%

(738,438)

130. a)

- financial assets measured at amortised cost: securities

615

(487)

1,102

n.s.

(2,454)

130. b)

- financial assets measured at fair value through other comprehensive income

(1,932)

(899)

1,033

114.9%

(3,343)

200. a)

Net provisions for risks and charges - commitments and guarantees granted

(942)

(562)

380

67.6%

(26)

200. b)

Net provisions for risks and charges - other net provisions

909

(3,467)

4,376

n.s.

(24,809)

Net income (loss) from fair value change in property, plant and equipment and intangible

260.

assets

(8,718)

-

(8,718)

-

(39,386)

250.+280.

Profits (losses) from the disposal of equity investments

67

273

(206)

(75.5%)

6,101

290.

Profit (loss) before tax from continuing operations

154,240

183,908

(29,668)

(16.1%)

475,680

300.

Taxes on income for the period/year from continuing operations

(52,382)

(51,385)

997

1.9%

(118,812)

340.

(Profit) loss for the period/year attributable to minority interests

(8,303)

(6,415)

1,888

29.4%

(33,912)

Profit (loss) for the period/year attributable to the shareholders of the Parent before

the Business Plan and other impacts

93,555

126,108

(32,553)

(25.8%)

322,956

190. a)

Redundancy expenses net of taxes and minority interests

17

(42,585)

42,602

n.s.

(89,413)

190. b)

Business Plan project expenses net of taxes and minority interests

-

(88)

(88)

(100.0%)

(145)

Depreciation and net impairment losses on property, plant and equipment net of taxes and

210.

minority interests

-

-

-

-

(295)

350.

Profit (loss) for the period/year attributable to the shareholders of the Parent

93,572

83,435

10,137

12.1%

233,103

iv

UBI Banca Group: Reclassified consolidated quarterly income statements

2020

2019

1st Quarter

4th Quarter

3rd Quarter

2nd Quarter

1st Quarter

Figures in thousands of euro

restated

restated

restated

restated

10.-20.-140.

Net interest income

405,163

412,041

426,851

440,616

445,597

of which: TLTRO II

10,111

11,100

12,695

12,502

12,391

of which: IFRS 9 credit components

20,063

21,395

22,543

35,498

31,159

of which: IFRS 9 contractual modifications without derecognition components

(8,803)

(11,867)

(2,979)

(5,281)

(5,156)

70.

Dividends and similar income

4,776

77

371

2,040

5,170

Profits (losses) of equity-accounted investees

7,808

9,139

11,783

13,106

6,315

40.-50.

Net fee and commission income

420,483

446,256

402,569

411,998

400,936

of which: performance fees

7,063

30,127

3,318

4,171

2,982

80.+90.

Net income (loss) from trading, hedging and disposal/repurchase activities and from

+100.+110.

assets/liabilities measured at fair value through profit or loss

53,596

58,198

(8,998)

17,649

37,435

160.+170.

Net income from insurance operations

2,501

4,030

3,848

3,934

3,502

230.

Other net operating income/expense

19,269

18,797

23,938

19,075

21,662

Operating income

913,596

948,538

860,362

908,418

920,617

190. a)

Staff costs

(354,975)

(355,469)

(351,754)

(355,993)

(364,434)

190. b)

Other administrative expenses

(181,402)

(162,670)

(187,198)

(175,161)

(186,031)

of which: SRF and DGS contributions

(41,983)

(4,448)

(43,069)

(18,070)

(41,998)

Depreciation, amortisation and net impairment losses on property, plant and

210.+220.

equipment and intangible assets

(57,181)

(58,542)

(55,876)

(54,424)

(52,485)

Operating expenses

(593,558)

(576,681)

(594,828)

(585,578)

(602,950)

Net operating income

320,038

371,857

265,534

322,840

317,667

130. Net impairment losses for credit risk relating to:

130. a) - financial assets measured at amortised cost: loans and advances to banks

130. a) - financial assets measured at amortised cost: loans and advances to customers

  1. a) - financial assets measured at amortised cost: securities
  1. b) - financial assets measured at fair value through other comprehensive income
  1. a) Net provisions for risks and charges - commitments and guarantees granted

200. b) Net provisions for risks and charges - other net provisions

Net income (loss) from fair value change in property, plant and equipment and

260. intangible assets

250.+280. Profits (losses) from the disposal of equity investments

290. Profit (loss) before tax from continuing operations

300. Taxes on income for the period from continuing operations

340. (Profit) loss for the period attributable to minority interests

Profit (loss) for the period attributable to the shareholders of the Parent before the Business Plan and other impacts

190. a) Redundancy expenses net of taxes and minority interests

190. b) Business Plan project expenses net of taxes and minority interests

Depreciation and net impairment losses on property, plant and equipment net of

210. taxes and minority interests

350. Profit (loss) for the period attributable to the shareholders of the Parent

(157,114)

(210,487)

(140,233)

(263,375)

(130,003)

(181)

(344)

(243)

773

(49)

(155,616)

(208,167)

(138,687)

(263,016)

(128,568)

615

(1,355)

(335)

(277)

(487)

(1,932)

(621)

(968)

(855)

(899)

(942)

(1,936)

(33)

2,505

(562)

909

(1,223)

(21,357)

1,238

(3,467)

(8,718)

(39,386)

-

-

-

67

1,813

100

3,915

273

154,240

120,638

104,011

67,123

183,908

(52,382)

(22,469)

(35,131)

(9,827)

(51,385)

(8,303)

(12,972)

(7,239)

(7,286)

(6,415)

93,555

85,197

61,641

50,010

126,108

17

(46,830)

-

2

(42,585)

-

-

(12)

(45)

(88)

-

(295)

-

-

-

93,572

38,072

61,629

49,967

83,435

v

UBI Banca Group: Reclassified consolidated income statement net of the most significant non-recurring items

1Q 2020

1Q 2019 restated

Change

% change

net of non-

recurring items

net of non-

Figures in thousands of euro

recurring items

Net interest income

405,163

445,597

(40,434)

(9.1%)

of which: TLTRO II

10,111

12,391

(2,280)

(18.4%)

of which: IFRS 9 credit components

20,063

31,159

(11,096)

(35.6%)

of which: IFRS 9 contractual modifications without derecognition components

(8,803)

(5,156)

3,647

70.7%

Dividends and similar income

4,776

5,170

(394)

(7.6%)

Profits (losses) of equity-accounted investees

7,808

6,315

1,493

23.6%

Net fee and commission income

420,483

400,936

19,547

4.9%

of which: performance fees

7,063

2,982

4,081

136.9%

Net income (loss) from trading, hedging and disposal/repurchase activities and from

assets/liabilities measured at fair value through profit or loss

53,596

37,435

16,161

43.2%

Net income from insurance operations

2,501

3,502

(1,001)

(28.6%)

Other net operating income/expense

19,269

21,662

(2,393)

(11.0%)

Operating income

913,596

920,617

(7,021)

(0.8%)

Staff costs

(354,975)

(364,434)

(9,459)

(2.6%)

Other administrative expenses

(181,402)

(186,031)

(4,629)

(2.5%)

Depreciation, amortisation and net impairment losses on property, plant and equipment and

intangible assets

(57,181)

(52,485)

4,696

8.9%

Operating expenses

(593,558)

(602,950)

(9,392)

(1.6%)

Net operating income

320,038

317,667

2,371

0.7%

Net impairment losses for credit risk relating to:

(157,114)

(130,003)

27,111

20.9%

- financial assets measured at amortised cost: loans and advances to banks

(181)

(49)

132

n.s.

- financial assets measured at amortised cost: loans and advances to customers

(155,616)

(128,568)

27,048

21.0%

- financial assets measured at amortised cost: securities

615

(487)

1,102

n.s.

- financial assets measured at fair value through other comprehensive income

(1,932)

(899)

1,033

114.9%

Net provisions for risks and charges - commitments and guarantees granted

(942)

(562)

380

67.6%

Net provisions for risks and charges - other net provisions

909

(3,467)

4,376

n.s.

Net income (loss) from fair value change in property, plant and equipment and intangible assets

-

-

-

-

Profits (losses) from the disposal of equity investments

-

273

(273)

(100.0%)

Profit (loss) before tax from continuing operations

162,891

183,908

(21,017)

(11.4%)

Taxes on income for the period for continuing operations

(55,243)

(51,385)

3,858

7.5%

Profit (loss) for the period attributable to minority interests

(8,303)

(6,415)

1,888

29.4%

Profit (loss) for the period attributable to the shareholders of the Parent

99,345

126,108

(26,763)

(21.2%)

vi

UBI Banca Group: Reclassified consolidated income statement net of the most significant non-recurring items

2017-2020 Business

Plan

1Q 2020

Redundancy

expenses

Figures in thousands of euro

other items

First time application of

Profits/losses from

1Q 2020

measurement of

disposal of equity and

properties at fair value

net of non-

other investments

(pursuant to IAS 16)

recurring items

2017-2020 Business Plan

1Q 2019

1Q 2019

restated

restated

Redundancy

Business Plan

expenses

project expenses net of non-

recurring items

Net interest income

405,163

-

-

-

405,163

of which: TLTRO II

10,111

-

-

-

10,111

of which: IFRS 9 credit components

20,063

-

-

-

20,063

of which: IFRS 9 contractual modifications without derecognition components

(8,803)

-

-

-

(8,803)

Dividends and similar income

4,776

-

-

-

4,776

Profits (losses) of equity-accounted investees

7,808

-

-

-

7,808

Net fee and commission income

420,483

-

-

-

420,483

of which: performance fees

7,063

-

-

-

7,063

Net income (loss) from trading, hedging and disposal/repurchase activities and from assets/liabilities measured at fair value

through profit or loss

53,596

-

-

-

53,596

Net income from insurance operations

2,501

-

-

-

2,501

Other net operating income/expense

19,269

-

-

-

19,269

Operating income

913,596

-

-

-

913,596

Staff costs

(354,975)

-

-

-

(354,975)

Other administrative expenses

(181,402)

-

-

-

(181,402)

Depreciation, amortisation and net impairment losses on property, plant and equipment and intangible assets

(57,181)

-

-

-

(57,181)

Operating expenses

(593,558)

-

-

-

(593,558)

Net operating income

320,038

-

-

-

320,038

Net impairment losses for credit risk relating to:

(157,114)

-

-

-

(157,114)

- financial assets measured at amortised cost: loans and advances to banks

(181)

-

-

-

(181)

- financial assets measured at amortised cost: loans and advances to customers

(155,616)

-

-

-

(155,616)

- financial assets measured at amortised cost: securities

615

-

-

-

615

- financial assets measured at fair value through other comprehensive income

(1,932)

-

-

-

(1,932)

Net provisions for risks and charges - commitments and guarantees granted

(942)

-

-

-

(942)

Net provisions for risks and charges - other net provisions

909

-

-

-

909

Net income (loss) from fair value change in property, plant and equipment and intangible assets

(8,718)

-

8,718

-

-

Profits (losses) from the disposal of equity investments

67

-

-

(67)

-

Profit (loss) before tax from continuing operations

154,240

-

8,718

(67)

162,891

Taxes on income for the period for continuing operations

(52,382)

-

(2,883)

22

(55,243)

(Profit) loss for the period attributable to minority interests

(8,303)

-

-

-

(8,303)

Profit (loss) for the period attributable to the shareholders of the Parent before the Business Plan and other

impacts

93,555

-

5,835

(45)

99,345

Redundancy expenses net of taxes and minority interests

17

(17)

-

-

-

Business Plan project expenses net of taxes and minority interests

-

-

-

-

-

Depreciation and net impairment losses on property, plant and equipment net of taxes and minority interests

-

-

-

-

-

Profit (loss) for the period attributable to the shareholders of the Parent

93,572

(17)

5,835

(45)

99,345

vii

445,597

-

-

445,597

12,391

-

-

12,391

31,159

-

-

31,159

(5,156)

-

-

(5,156)

5,170

-

-

5,170

6,315

-

-

6,315

400,936

-

-

400,936

2,982

-

-

2,982

37,435

-

-

37,435

3,502

-

-

3,502

21,662

-

-

21,662

920,617

-

-

920,617

(364,434)

-

-

(364,434)

(186,031)

-

-

(186,031)

(52,485)

-

-

(52,485)

(602,950)

-

-

(602,950)

317,667

-

-

317,667

(130,003)

-

-

(130,003)

(49)

-

-

(49)

(128,568)

-

-

(128,568)

(487)

-

-

(487)

(899)

-

-

(899)

(562)

-

-

(562)

(3,467)

-

-

(3,467)

-

-

-

-

273

-

-

273

183,908

-

-

183,908

(51,385)

-

-

(51,385)

(6,415)

-

-

(6,415)

126,108

-

-

126,108

(42,585)

42,585

-

-

(88)

-

88

-

-

-

-

-

83,435

42,585

88

126,108

UBI Banca Group: Consolidated balance sheet

- mandatory statement -

31.03.2020

31.12.2019

Figures in thousands of euro

restated

ASSETS

10.

Cash and cash equivalents

543,344

694,750

20.

Financial assets measured at fair value through profit or loss

2,445,729

1,758,730

a) financial assets held for trading

1,139,785

427,980

b) financial assets designated at fair value

8,554

10,278

c) other financial assets mandatorily measured at fair value

1,297,390

1,320,472

30.

Financial assets measured at fair value through other comprehensive income

11,476,015

12,221,616

40.

Financial assets measured at amortised cost

101,689,225

101,736,289

a) loans and advances to banks

9,467,195

11,921,289

b) loans and advances to customers

92,222,030

89,815,000

50.

Hedging derivatives

34,039

35,117

60.

Fair value change in hedged financial assets (+/-)

651,581

547,019

70.

Equity investments

293,676

287,353

80.

Technical reserves of reinsurers

104

-

90.

Property, plant and equipment

2,590,524

2,370,247

100.

Intangible assets

1,731,379

1,739,903

of which: goodwill

1,465,260

1,465,260

110.

Tax assets

3,748,151

3,755,895

a) current

1,075,533

1,084,413

b) deferred

2,672,618

2,671,482

- of which pursuant to Law No. 214/2011

1,764,076

1,794,331

120.

Non-current assets and disposal groups held for sale

291,766

268,100

130.

Other assets

997,059

1,200,966

Total assets

126,492,592

126,615,985

LIABILITIES AND EQUITY

10.

Financial liabilities measured at amortised cost

108,386,682

109,795,016

a) due to banks

14,497,500

14,367,985

b) due to customers

71,435,696

72,577,255

c) debt securities issued

22,453,486

22,849,776

20.

Financial liabilities held for trading

617,709

555,296

30.

Financial liabilities designated at fair value

285,439

197,610

40.

Hedging derivatives

575,925

386,778

50.

Fair value change in hedged financial liabilities (+/-)

156,033

145,191

60.

Tax liabilities

300,268

210,882

a) current

80,165

64,547

b) deferred

220,103

146,335

70.

Liabilities associated with assets held for sale

-

2,331

80.

Other liabilities

3,145,785

2,735,807

90.

Provision for post-employment benefits

264,793

289,641

100.

Provisions for risks and charges:

448,535

489,485

a) commitments and guarantees granted

54,255

54,005

b) pension and similar obligations

85,035

86,756

c) other provisions for risks and charges

309,245

348,724

110.

Technical reserves

2,149,201

2,210,294

120.

Valuation reserves

(14,124)

(79,938)

140.

Equity instruments

397,948

-

150.

Reserves

3,508,627

3,276,589

160.

Share premiums

3,294,604

3,294,604

170.

Share capital

2,843,177

2,843,177

180.

Treasury shares (-)

(28,111)

(28,111)

190.

Minority interests (+/-)

66,529

58,230

200.

Profit (loss) for the period/year (+/-)

93,572

233,103

Total liabilities and equity

126,492,592

126,615,985

viii

UBI Banca Group: consolidated income statement

- mandatory statement -

Figures in thousands of euro

1Q 2020

1Q 2019

restated

10.

Interest and similar income

506,976

551,016

- of which: interest income calculated with the effective interest method

495,396

501,409

20.

Interest and similar expense

(80,429)

(87,794)

30.

Net interest income

426,547

463,222

40.

Fee and commission income

482,257

456,676

50.

Fee and commission expense

(60,527)

(55,035)

60

Net fee and commission income

421,730

401,641

70.

Dividends and similar income

4,961

5,333

80.

Net trading income (loss)

3,963

3,711

90.

Net hedging income (loss)

(12,422)

(4,896)

100.

Income (losses) from disposal or repurchase of:

66,127

13,053

a) financial assets measured at amortised cost

6,428

(658)

b) financial assets measured at fair value through other comprehensive income

61,777

14,406

c) financial liabilities

(2,078)

(695)

110.

Net income (loss) from other financial assets and liabilities measured at fair value through profit or loss

(20,047)

27,206

a) financial assets and liabilities designated at fair value

26,388

172

b) other financial assets mandatorily measured at fair value

(46,435)

27,034

120.

Gross income

890,859

909,270

130.

Net impairment losses for credit risk relating to:

(157,114)

(130,003)

a) financial assets measured at amortised cost

(155,182)

(129,104)

b) financial assets measured at fair value through other comprehensive income

(1,932)

(899)

140.

Profits (losses) from contractual modifications without derecognition

(8,803)

(5,156)

150.

Financial income

724,942

774,111

160.

Net insurance premiums

86,121

74,453

170.

Other income/expenses of insurance operations

(75,923)

(81,011)

180.

Net income from banking and insurance operations

735,140

767,553

190.

Administrative expenses

(590,463)

(670,708)

a) staff costs

(354,975)

(428,117)

b) other administrative expenses

(235,488)

(242,591)

200.

Net provisions for risks and charges

(33)

(4,029)

a) commitments and guarantees granted

(942)

(562)

b) other net provisions

909

(3,467)

210.

Depreciation and net impairment losses on property, plant and equipment

(36,380)

(33,927)

220.

Amortisation and net impairment losses on intangible assets

(20,775)

(18,526)

230.

Other net operating income/expense

67,594

73,141

240.

Operating expenses

(580,057)

(654,049)

250.

Profits (losses) of equity investments

7,808

6,315

260.

Net income (loss) from fair value change in property, plant and equipment and intangible assets

(8,718)

-

280.

Profit (loss) from disposal of investments

67

273

290.

Profit (loss) before tax on continuing operations

154,240

120,092

300.

Taxes on income for the year for continuing operations

(52,382)

(30,282)

310.

Profit (loss) after tax from continuing operations

101,858

89,810

330.

Profit (loss) for the period

101,858

89,810

340.

(Profit) loss for the period attributable to minority interests

(8,286)

(6,375)

350.

Profit (loss) for the period attributable to the shareholders of the Parent

93,572

83,435

ix

UBI Banca Group: Loan tables

Loans and advances to customers measured at amortised cost as at 31st March 2020

Figures in thousands of euro

Gross exposure

Impairment

Carrying amount

losses

Non-performing exposures (Stage three)

(7.51%)

6,673,244

2,639,851

(4.70%)

4,033,393

- Bad loans

(3.84%)

3,414,032

1,758,613

(1.93%)

1,655,419

- Unlikely-to-pay loans

(3.55%)

3,154,776

872,276

(2.66%)

2,282,500

- Past-due exposures

(0.12%)

104,436

8,962

(0.11%)

95,474

Performing exposures (Stages one and two)

(92.49%)

82,195,800

451,079

(95.30%)

81,744,721

Total

88,869,044

3,090,930

85,778,114

Loans and advances to customers measured at amortised cost as at 31st December 2019

Figures in thousands of euro

Gross exposure

Impairment

Carrying amount

losses

Non-performing exposures (Stage three)

(7.80%)

6,838,473

2,667,009

(4.93%)

4,171,464

- Bad loans

(4.05%)

3,555,090

1,847,960

(2.02%)

1,707,130

- Unlikely-to-pay loans

(3.62%)

3,172,926

809,849

(2.79%)

2,363,077

- Past-due exposures

(0.13%)

110,457

9,200

(0.12%)

101,257

Performing exposures (Stages one and two)

(92.20%)

80,853,909

461,340

(95.07%)

80,392,569

Total

87,692,382

3,128,349

84,564,033

Loans and advances to customers measured at amortised cost as at 31st March 2019

Figures in thousands of euro

Gross exposure

Impairment

Carrying amount

losses

Non-performing exposures (Stage three)

(10.36%)

9,458,410

3,697,678

(6.61%)

5,760,732

- Bad loans

(5.87%)

5,358,071

2,632,265

(3.13%)

2,725,806

- Unlikely-to-pay loans

(4.42%)

4,039,595

1,059,103

(3.42%)

2,980,492

- Past-due exposures

(0.07%)

60,744

6,310

(0.06%)

54,434

Performing exposures (Stages one and two)

(89.64%)

81,876,631

541,835

(93.39%)

81,334,796

Total

91,335,041

4,239,513

87,095,528

x

Coverage ratio

Coverage ratio

excluding write-offs

including write-offs

39.56%

52.03%

51.51%

67.66%

27.65%

28.34%

8.58%

0.55%

3.48%

Coverage ratio

Coverage ratio

excluding write-offs

including write-offs

39.00%

50.92%

51.98%

67.12%

25.52%

26.09%

8.33%

0.57%

3.57%

Coverage ratio

Coverage ratio

excluding write-offs

including write-offs

39.09%

46.96%

49.13%

59.68%

26.22%

10.39%

0.66%

4.64%

Attachments

Disclaimer

UBI Banca – Unione di Banche Italiane Scpa published this content on 08 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2020 14:38:01 UTC