UNICREDIT S.P.A. 10 February 2021
Table of contents
Executive summary Group P&L Group balance sheet
Page 23: Tangible equity | Closing remarks Annex |
▪Page 59-65: End notes
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Agenda
Executive summary
Group P&L
Group balance sheet
Closing remarks
Annex
FY20 underlying net profit of 1.3bn on lower costs and better provisions
Executive summary - Highlights (1/2)
FY20 underlying net profit1 1.3bn, ahead of guidance of >0.8bn thanks to better costs and LLPs
FY20 stated net loss of 2.8bn driven by Yapi deconsolidation2, integration costs in Italy2 and CIB goodwill impairment2
FY20 stated CoR well within guidance at 105bps, including 46bps (2.2bn) of overlays to anticipate future impacts
Non Core rundown fully on track with FY20 gross NPEs down to 3.7bn, well ahead of target
FY20 Group gross NPE ratio at 4.5%3, down 0.5p.p. Y/Y
Balance sheet strength with very strong capital and liquidity position:
FY20 pro-forma CET1 ratio at 15.08%(a) with CET1 MDA buffer at 605bps(a), FY20 LCR at 1784%
(a) Including deduction of ordinary share buyback of 179m, subject to supervisory and AGM approval. Stated CET1 ratio at 15.14% a nd stated MDA buffer at 611bps.
Balance sheet significantly strengthened since 2015
20151
20171
20191
20201
77.8
Gross NPE, bn
48.4
25.3
21.2
+470bps
88
CET1 MDA buffer, bps2
Executive summary - Balance sheet strength
307
312
605
Strong financial foundations with derisked balance sheet
Risk and cost culture integral part of bank DNA
35
EL on new business, bps
20151
Executive summary - Risk culture
20171
20191
20201
32
32
25
101,297 5,713
FTE, # Branches2, #
91,952 4,817
84,245 82,107
3,717 3,490
Proactive and prudent risk management combined with strict cost discipline
FY20 underlying net profit of 1.3bn, successfully navigating an extraordinary year from a position of strength
Executive summary - Highlights (2/2)
Delivering on commitment to sustainability with clear ESG roadmap adhering to highest global standards
Successful operational response with enhanced customer service, accelerated digital transformation, and group wide measures to protect the health, safety and wellbeing of all stakeholders
Delivered 1.3bn of underlying net profit1, whilst booking 5bn of LLPs1,2 in 2020 to reflect the potential economic impact of Covid-19
Proposed capital distribution(a) of 1.1bn, of which 0.3bn cash dividend and 0.8bn via share buyback
Executive summary - Group key figures
Revenues, bn
-2.7%
3Q20 4Q20
4.9
4.4
4.2
Costs, bn
-2.5
-2.4
-2.5
+2.0%
CoR, bps
137
63
179
+117
Gross NPE, bn
25.3
22.7
21.2
-6.4%
Gross NPE ratio, %
5.0
4.7
4.5
-0.1p.p. -0.5p.p.
Underlying RoTE1, %
10.8
5.4
1.6
-3.8p.p. -9.2p.p.
Pro-forma CET1 MDA buffer(b), bps
605 (b)
312
538
+67
Tangible equity, EoP bn
53.0
50.9
50.5
-0.8%
Underlying net profit2, bn
1.4
0.7
0.2
-70.5%
(a) Ordinary distribution (447m): 60% cash (268m), 40% share buyback (179m) ('SBB'). Ordinary cash distribution: €0.12 per share, expected to be paid in Apr 21 subject to AGM approval. Ordinary SBB distribution subject to supervisory and AGM approval. Ordinary SBB execution expected to commence after AGM in A pr 21. Extraordinary distribution (652m): 100% SBB. Extraordinary SBB distribution subject to supervisory and AGM approval (and provided that on 30 Sep 21 the ECB will repeal th e recommendation of 15 Dec 20). Extraordinary SBB execution expected to commence not before 01 Oct 21.
(b) FY20 including deduction of share buyback of 179m, subject to supervisory and AGM approval. FY20 stated MDA buffer at 611bps. Comparable pro-forma FY20 CET1 MDA transitionalbuffer 688bps.
Agenda
Executive summary
Group P&L
Group balance sheet
Closing remarks
Annex
Significant LLPs taken in FY20 in anticipation of future impacts
Data in m
Total revenues
Operating costs
Gross operating profit
LLPs
Net operating profit
Other charges & provisions
o/w Systemic charges
Integration costs
Profit (loss) from investments
Profit before taxes
Income taxes
Net profit from discontinued operations
Goodwill impairment
Stated net profit
Underlying net profit1
18,839
-9,929
-3,382
8,910
5,527
3,065
1,383
3,373
4,675
FY19
-886
-954
-664
-844
-890
0
Group P&L - Summary
Strong contribution from CIB and CEE to FY20 underlying net profit
Group P&L - FY20 underlying net profit
Underlying net profit1 by division FY20, m
1,264
1,002
671
191
8
25
-113
CB ItalyCB GermanyCB Austria
CEE
CIB
-520 Group CCNon Core
Group(a)
Underlying FY20 RoAC2
0.1%
4.0%
0.6%
7.8%
9.2%
n.m.
n.m.
▪ CIB delivering strong performance thanks to commercial revenues dynamics driven by client activity. Solid FY20 underlying RoAC at 9.2%
▪ CEE confirms its position as a resilient contributor to Group's profitability with FY20 underlying RoAC at 7.8%
(a) For the Group, underlying FY20 RoTE is +2.5%.
NII down 2.3% Q/Q on lower lending contribution, partially offset by TLTR03
Net interest1 Q/Q, m
Group P&L - Net Interest Q/Q
▪ Overall lower loan volumes reflecting prudent approach to risk combined with year-end early repayments
▪ Continued pressure on loan customer rates, as lower yielding government guaranteed loans in Italy substituted short term faci lities
▪ TLTRO3 enhanced terms support NII in 4Q20 and beyond
Fees up 2.5% Q/Q driven by investment and financing fees
Group P&L - Fees
Fees, m
-4.5% -4.7%
FY/FY
▪ Investment fees up 8.4% Q/Q driven by strong commercial activity, in particular in AuM gross sales volumes in CB Italy
▪ Financing fees up 7.0% Q/Q mainly thanks to higher fees from loans and capital markets
▪ Transactional fees down 6.3% Q/Q reflecting the Covid-19 impact on GDP sensitive subcategories such as cards
Trading income excluding XVA normalising towards year end Contribution from dividends down FY/FY following strategic disposals
Group P&L - Trading and dividends
Trading income, m
Dividends1, m
1,669
-34.8% -6.4%
-9.6% 1,412
▪ Trading income down 15.4% FY/FY, as stronger treasury results only partially offset lower client activity
▪ 4Q20 dividends down 6.8% Y/Y affected by disposals (Mediobanca -23m Y/Y) partly offset by other financial investments (+14m Y/Y)
FY20 costs down 1.2% FY/FY thanks to strict cost discipline and lower HR costs, more than offsetting Covid-19 related expenses
Trading income, m
Costs, m
Cost/Income
52.1%
FY/FY
55.3%
58.0%
▪ 4Q20 with unusually high Non HR costs up 7.7% Q/Q primarily due to IT amortisation and Covid-19 related costs
▪ FY20 costs at 9.8bn, primarily due to variable compensation (lowered by >0.1bn vs. FY19)
Group P&L - Costs
Q/QY/Y
Branch network optimisation and FTE reduction on track
Group P&L - FTEs and branches
FTEs, eop
Branches, eop
Q/QY/Y
Q/QY/Y
-1.8% -2.5%
-1.4% -1.3%
-2.0% -3.0%
-2.4% -6.1%
-2.6% -5.2%
-2.3% -6.4%
▪ Team 23 target of around 8,000 FTE reductions and around 500 branch closures on track
▪ Agreements with trade unions for the implementation of Team 23 already signed and fully booked in 4Q19/1Q20
FY20 stated CoR at 105bps at lower end of guidance range
Group P&L - LLPs and CoR
Loan loss provisions(a), m
Cost of risk(a), bps
Specific
LLPs(b)
Overlays | Regulatory | Specific | Overlays | Regulatory |
on LLPs(c) | headwinds | CoR(b) | on CoR(c) | headwinds |
▪ 4Q20 CoR at 179bps, driven by proactive UTP classification (specific CoR 89bps), new DoD (regulatory headwinds 49bps), and overlays (42bps)
▪ FY20 stated CoR at 105bps mainly due to anticipation of future impacts1 with 46bps overlays, 47bps specific and 12bps regulatory headwinds
▪ FY21 stated CoR close to 70bps, underlying CoR(d) close to 60bps
(a) The split of LLPs and cost of risk between the overlay and specific parts has been calculated by applying the sum of quarterl y LLP data coherently with the quarterly staging dynamic.
(b) Specific LLPs: analytical and statistical LLPs related to non performing portfolio (stage 3), excluding changes in NPE sellin g scenario.
(c) Includes among others: IFRS9 macro, sector based provisioning, proactive classification and coverage increases in Stage 2.
17 (d) Underlying CoR: defined as stated CoR excluding regulatory headwinds.
Agenda
Executive summary
Group P&L
Group balance sheet
Closing remarks
Annex
Increase in gross NPEs driven by proactive groupwide UTP classification
Group excluding Non Core - Non performing exposures1, bn
Group balance sheet - Group excluding Non Core asset quality o/w Gross bad loans, bn
Net bad loansCoverage ratio
o/w Gross unlikely to pay, bn
Net UTPCoverageratio
▪ Gross NPE ratio for Group excluding Non Core remains below European average (EBA definition)
▪ Coverage ratio down 0.3 p.p. Q/Q due to mix effect of more UTPs and less bad loans
-25.5%
FY20 Non Core NPEs materially better than target thanks to disposals
Group balance sheet - Non Core asset quality
Non Core - Non performing exposures1, bn
Actions on Non Core rundown, bn
-57.0%
Coverage ratioNet NPEs
DisposalsRecoveries and repaymentsWrite-offs
1.42 3.4
0.2 0.5
0.6 1.0
Back to performing
Total
0.1 0.2
2.2 4.9
4Q20 pro-forma CET1 MDA buffer at 605bps
Group balance sheet - CET1
Fully loaded Common Equity Tier 1 ratio, %
MDA buffer Fully loaded, bpsCET1 capital Fully loaded, bn
Total RWAs Fully loaded, bn
325.8 325.7
▪ 4Q20 pro-forma CET1 MDA buffer at 605bps, up 67bps Q/Q driven by lower RWAs mainly from business evolution and positive effect from changed regulatory treatment of software assets
▪ Capital distribution policy confirmed with 50% ordinary payout of underlying net profit2 (max 30% cash, min 20% share buyback)
▪ Proposed ordinary distribution of 447m(9)and, for 2021, an extraordinary capital distribution of 652m(9), will be submitted to the AGM
▪ Medium to long term CET1 MDA buffer target confirmed at 200-250bps
4Q20 pro-forma TLAC buffer at 737bps
Group balance sheet - TLAC
Transitional Total Loss-Absorbing Capacity, %
Senior non preferred & other2
4Q20
Additional
4Q20
AdditionalTier 2
4Q20
CET1 ratio FL transitional buffer
CET1 ratio transitional
Tier 1
TLAC subordinationSenior preferred
4Q20
TLACOrdinary share buyback
4Q20
TLAC pro-forma
▪ 4Q20 pro-forma TLAC transitional ratio of 26.92%, pro-forma TLAC MDA transitional buffer of 737bps
▪ 2020 TLAC funding plan completed and pre-funded c. 2bn of 2021 TLAC funding needs
▪ UniCredit SpA successfully issued a 2bn dual tranche Senior Preferred (in 5Y and 10Y format) in Jan 21, part of 2021 Funding Plan
Tangible equity at 50.5bn
Tangible equity (end-of-period), bn
Group balance shGereotu-pTbanalgainbcl e Esqhueietty
Tangible book value per share1
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
0.7bn
Dividends/DPS
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
0.6bn
∑1.3bn
0.32
0.27
∑0.59
Agenda
Executive summary
Group P&L
Group balance sheet
Closing remarks
Annex
Proposed capital distribution(a) of 1.1.bn and FY21 underlying net profit target confirmed
Closing remarks
Total revenues and costs in line with previous guidance
Outlook FY21Stated CoR close to 70bps, underlying CoR1 close to 60bps
Underlying net profit2 >3bn
Capital distribution policy confirmed with 50% ordinary payout (max 30% cash, min 20% share buyback)
For 2021, as an exception, ordinary capital distribution to comply with ECB payout recommendationspublished on 15 Dec 20, which for UniCredit limits distributions to 447m until 30 Sep 21
Proposed ordinary distribution of 268m cash(a) and 179m share buyback(a) will be submitted to the AGM
For 2021, we also propose an extraordinary capital distribution of 652m, fully in the form of share buybacks.
It will be submitted to the AGM in Apr 21 and execution should commence not before 01 Oct 21
(a)
Medium to long term CET1 MDA buffer target confirmed at 200-250bps
(a) Ordinary distribution: 60% cash, 40% share buyback ('SBB'). Ordinary cash distribution: €0.12 per share, expected to be paid in Apr 21 subject to AGM approval. Ordinary SBB distribution subject to supervisory and AGM approval. Ordinary SBB execution expected to commence after AGM in Apr 21. Extrao rdinary distribution: 100% SBB. Extraordinary SBB distribution subject to supervisory and AGM approval (and provided that on 30 Sep 21 the ECB will repeal the recommendation of 15 Dec 20). Extraordinary SBB execution expected to 25 commence not before 01 Oct 21.
Agenda
Executive summary
Group P&L
Group balance sheet
Closing remarks
Annex
Delivering on commitment to sustainability with clear ESG roadmap
Annex - ESG roadEmSaGp
4Q19
1Q20
2Q20
3Q20
4Q20
Sustainability targets part G of senior management long term remuneration
ESG
MSCI rating upgraded to 'A' (from 'BBB')
E
Revised coal with coal sector phase out by 20 | policy total 28 |
total
Best Social Impact Bank S in Europe by Capital
Finance International
A clear ESG roadmap that adheres to highest global standards Public recognition an outcome, not a target of our commitments
ESG
G CDP rati to 'A-' (fr | ng upgraded m 'B') |
upgraded
G Bloomberg Gender Equality Index
Confirmed in
Rating range
ESG Rating:
CCCBBB
ESG Risk Rating:
Severe 100 - 40
High 40 - 30
CDP Score:
D
C
Disclosure
Awareness
Corporate ESG Rating:
BBB
A
AAAAA
Med 30 - 20
Low 20 - 10
Neg 10 - 0
B
A
Management Leadership
-D+
-C+
-B+
-A+
ESG Score:
Comments
Annex - ESG ratings (1/2)
▪ ESG Risk Rating improved from last 25.3 as of November 2020
▪ Medium exposure and strong management of material ESG issues
▪ UniCredit is noted for its strong corporate governance performance
▪ UniCredit's 2020 rating upgraded from "B" to "A-", within the Leadership band
▪ Average rating for Financial services is "B", for Europe is "C" and for Global Average is "C"
0-29
Weak
Limited
30-49
50-59
Robust
Advanced
60-100
Worst level
Best level
Bloomberg
Rating range
Ratings and level of compliance:
FFF
Index Score:ESG Rating:
0
1
Sustainability Score:
FFFE
EE+
EEE
71.7 100
2
3
4 5
1) ESG Disclosure Score:
49 100
56.1 100
2) GEI score:
77.4% 100%
Comments
Annex - ESG ratings (2/2)
▪ UniCredit is the only bank in Italy with an EE+ rating. It is regarded by Standard Ethics as an example of European excellence in terms of sustainability
▪ Strong compliance and ability to manage reputational risks linked to the United Nations, OECD and EU agenda on sustainability and corporate governance
▪ UniCredit is the first bank in the Top 10 ranking, 8th out of 741
▪ UniCredit included in the Top 3 in the financial sector
▪ UniCredit is ranked in the 90th percentile of banks
▪ UniCredit scores are higher than the banks subsector and industry averages
▪ Score dropped to 49 from 53 but percentile ranking improved to 67 from 63
▪ The assessment is performed based on public sources without any active participation of UniCredit
▪ ESG Disclosure Score is not a rating but a disclosure score:
▪ Score split: 49.1 (Environmental); 55.0 (Social); 71.4 (Governance)
▪ GEI score improved to from last year 69.2% to 77.4%
▪ Average scores: 66.4% (Global GEI); 68.2% (Financial sector); 66.7% (Italy)
Worst level
Best level
CB Italy
Commercial revenues up Q/Q driven by strong AuM fee evolution
Data in m
Total revenues
o/w Net interest o/w Fees
Operating costs
Gross operating profit
LLPs
Net operating profit
Integration costs
Stated net profit
Underlying net profit1
Stated RoAC
Underlying RoAC1
C/I
CoR (bps)
3,300 3,652
-3,782 3,280
-1,041 2,239
-82 1,350 1,525 11.2%
12.7% 53.6%
7,062
FY19
76
Annex - Divisional data
▪ NII down 0.9% Q/Q due to continued pressure on customer loan rates driven by Euribor impact and increased customer deposit volumes. Lower yielding government guaranteed loans substituted short term facilities, partially mitigated by TLTRO3 benefit
▪ Fees up 2.3% Q/Q driven by AuM upfront fees growing 26% Q/Q thanks to robust AuM gross sales contribution at highest level since 4Q18
▪ Costs down 4.2% Y/Y thanks to lower HR expenses driven by FTEs exits (-1,495 Y/Y)
▪ LLPs up Y/Y mainly due to overlays reflecting forward looking approach to risk and additional LLPs in 4Q20 due to new Definition of Default
Main drivers
CB Germany
Resilient commercial revenues FY/FY
Data in m
Total revenues
o/w Net interest o/w Fees
Operating costs
Gross operating profit
LLPs
Net operating profit
Stated net profit
Underlying net profit1
Stated RoAC
Underlying RoAC1
C/I
CoR (bps)
1,530 716
-1,626
11.9% 10.4% 67.6%
2,404
FY19
-100
778
678
552
484
12
Annex - Divisional data
▪ NII almost flat Q/Q with TLTRO3 benefit offset by deposit customer rates. Lower loan volumes compensated by repricing actions
▪ Fee down 6.4% Q/Q mainly driven by lower financing fees (-19.9% Q/Q) and GDP sensitive transactional fees (-12.1% Q/Q), such as cards
▪ Costs flat Y/Y with NHR costs absorbing Covid- 19 related expenses
Main drivers
▪ -25m integration costs in 4Q20 including further restructuring charges for FTEs reduction
▪ LLPs up Y/Y reflecting forward looking approach to risk and proactive UTP classification
CB Austria
Positive Q/Q revenues trend thanks to sustained commercial activity
Annex - Divisional data
Data in m
Total revenues
o/w Net interest o/w Fees
Operating costs
Gross operating profit
LLPs
Net operating profit
Stated net profit
Underlying net profit1
1,546
FY19
-969 577 -41 536
689 605
563 677
1,363
FY20
-991 371 -245 127
617 578
-12 25
Main drivers
▪ NII up 1.5% Q/Q thanks to loan margin and growth in deposit volumes
▪ Dividends down Q/Q driven by lower contribution from 3 Banken
▪ Fees up 4.9% Q/Q thanks to investment services (+11.2%), sustained by strong AuM upfront fees (+39.0%)
▪ Costs up 2.9% Y/Y affected by non recurring item in depreciation in 4Q20
approach to risk, including additional LLPs in 4Q20 due to new Definition of Default
▪ LLPs up Y/Y reflecting forward looking
CEE
Fees up Q/Q, supported by investment and financing fees
Data in m (a)
Total revenues1
o/w Net interest o/w Fees
Operating costs
Gross operating profit
LLPs
Net operating profit
▪ Costs decreasing 4.1% Y/Y at constant FX (4.9%
Stated net profit
FY19
4,001
2,610
834
-1,535
2,466 -453 2,014
1,398
2,295
-1,486
3,422
1,937 -974 963
FY20
715
603
-54.8%
304
226
44
-78.0%
-82.7%
▪ NII down 3.0% Q/Q at constant FX impacted by drop in loan volumes while pressure on customer loan rates largely offset by repricing action on customer deposit rates in the quarter
▪ Fees up 5.0% Q/Q at constant FX thanks to financing (+16.6%) and investment fees (+19.3%), with transactional fees (-1.9%) mainly impacted by lower turnover in cards
Y/Y net of Covid-19 costs), well below +1.9% inflation. Decreasing HR costs (9.6% at constant FX), partially offset by Non HR costs increase for depreciation and Covid-19 expenses
▪ -47m integration costs in 4Q20 mainly in Russia and Croatia due to FTEs reduction and increasing digitalisation
▪ FY20 CoR at 150bps reflecting conservative approach to risk and prudent UTP classification
33 (a) Stated numbers at current FX. Variations Q/Q and Y/Y at constant FX (Underlying net profit, RoAC, C/I and CoR variations at current FX).
Annex - Divisional data
Main drivers
CIB
Strong fee dynamic Q/Q thanks to robust client activity
Data in m
Total revenues(a)
o/w Net interest o/w Fees
o/w Trading o/w XVA
Operating costs
Gross operating profit
LLPs
Net operating profit
Stated net profit
Underlying net profit1
Stated RoAC
Underlying RoAC1
C/I
CoR (bps)
2,259 555 1,051
-1,549
12.8% 15.2%
38.9%
3,985
2,436
2,327
1,413
1,686
FY19
-109
3
8
34 (a) 4Q19 other revenues include Ocean Breeze contribution.
Annex - Divisional data
Main drivers
▪ NII flat Q/Q with loan volume reduction driven by repayment of drawn credit facilities and pressure on customer rates offset by TLTRO3 benefit
▪ Fees up 27.7% Q/Q driven by strong results both in global capital markets and structured finance. Higher investment fees from lower rebates to the network on certificates sales distribution
▪ Trading up 22.9% Y/Y driven by customer driven equity and commodities products, treasury and XVA
▪ Costs improved by 4.2% Y/Y thanks lower Non HR and HR expenses despite Covid-19 resulting in best in class C/I ratio
▪ LLPs up Y/Y reflecting forward looking approach to risk and additional LLPs in 4Q20 due to new Definition of Default
Group Corporate Centre4Q20 positive underlying net profit
Data in m
Total revenues1
Operating costs
Gross operating profit
LLPs
Net operating profit
Other charges & provisions
o/w Systemic charges
Integration costs
Profit from investments
Profit before taxes
Income taxes
Goodwill impairment
Stated net profit
Underlying net profit2
-1,403
FY19
-229
-119
-292
-410
-416
-360
-108
-518
-220
-357
-63
-6
0
Annex - divisional data
▪ Revenues down 66m Q/Q mainly due to lower NII affected by higher liquidity surplus (Q/Q) driven by lower loan volumes and higher deposits, fees negatively impacted by non recurring items
▪ Costs up 70.7% Y/Y mainly due to Non HR expenses impacted by depreciation and Covid- 19 costs (28m in 4Q20)
▪ Q/Q positive systemic charges dynamic, due to higher 3Q20 contributions vs. 4Q20
▪ Profit from investments positively impacted by 154m Yapi valuation adjustment in 4Q20
▪ Note: Yapi included in Group Corporate Centre as a financial investment since 1Q20
Main drivers
Non Core 2020 rundown target delivered despite Covid-19. FY21 run off confirmed
Data in m
Total revenues
Operating costs
Gross operating profit
LLPs
Net operating profit
Stated net profit
Underlying net profit1
FY19
-41 -177 -218 -1,632
Gross customer loans
o/w NPEs
NPE coverage ratio
Net NPEs
-1,850 -1,683 -770 8,592
8,592
78.1%
1,886
RWA
10,966
Annex - Divisional data
Main drivers
▪ Gross NPEs now at 3.7bn further reduced by 2.2bn Q/Q mainly thanks to disposals
▪ Costs down 54.9% Y/Y driven by lower credit recovery costs and HR costs (lower FTEs), both related to lower NPE stock
▪ 4Q20 profit on investments mainly impacted by RE valuation update
▪ FY21 run off confirmed
Net interest walk FY/FY
Net interest1 FY/FY, m
Annex - Net interest FY/FY
Average Euribor 3M
-0.42% (-7bps FY/FY)
Performing loans volumes rates
FY19
Deposits
Term fundingTLTRO benefit / TieringInvestment portfolio & markets/ treasury
Other2
FY20
Commercial loans and customer rates by division
Avg gross commercial performing loans1 4Q20, bn
CB ItalyCB GermanyCB AustriaCEEGroup3
CIB
Q/Q
Y/Y
-6.1% -0.2%
390.6 -2.4% -2.7%
Gross customer performing loan rates2 4Q20
CB ItalyCB GermanyCB AustriaGroup3
CEECIB
2.07%
Annex - Divisional data
Q/QY/Y
-10bps -29bps
+3bps -17bps
-7bps -15bps
-6bps -42bps
-6bps -36bps
Commercial deposits and customer rates by division
CB ItalyCB GermanyCB AustriaCEECIBGroup3
Avg commercial deposits1 4Q20, bn
Q/QY/Y
3.8% 9.8%
4.6% 16.2%
1.9% 5.7%
0.4% 2.4%
Customer deposits rates2 4Q20
3.1% 8.2%
Annex - Divisional data
Q/QY/Y
--0bbppss --0bbppss
++11bbpps -8bps
--11bbpps -4bps
-2bps -19bps
--1bps -15bps
TFAs
Group TFAs1, bn
▪ 4Q20 net sales +13bn: AuM +0.3bn, AuC +0.3bn driven by Italy, deposits +12.4bn mainly in Italy and Austria
▪ 4Q20 market performance +17bn: AuM +7.1bn and AuC +10.1bn
Annex - TFAs
Q/QY/Y
3.8% 0.8%
7.7% 4.1%
3.4% 10.0%
4Q20 stated net profit by division
Stated net profit by division 4Q20, m
Annex - 4Q20 stated net profit by division
FY20 stated RoTE
354
-1,179
CB ItalyCB GermanyCB Austria
CEE
CIB
Group CC
Non Core
Group
4Q20 adjustments for underlying net profit
Stated vs underlying net profit1, m
Annex - 4Q20 stated vs underlying net profit
FY20 Underlying RoTE2
4Q20 stated net profit
Goodwill impairment Regulatory headwinds Non Core accelerated Real Estate valuation3 Tax effects and other5
impact on CoR3,4
rundown3
▪ Goodwill impairment is non cash-item and neutral for both CET1 capital and tangible equity
4Q20 underlying net profit1
▪ Real estate valuation includes pure P&L mark to market effects (following the change of methodology) and gains and losses on disposal
4Q20 underlying net profit by division
Underlying net profit1 by division 4Q20, m
Annex - 4Q20 underlying net profit
400
-220
CB ItalyCB GermanyCB Austria
CEE
CIB
Group CC
Non Core
Group
Annex - Non operating items 2019
2019
2019
Net profit, m
Division
Net profit, m
Division
All divisions 3Q
2Q 4Q
Disposal of 9% of Yapi Kredi1
Integration costs in Germany & Austria
Revaluation of RE and effects of disposals
Non Core LLPs for updated rundown strategy
-365 -319
Impairment of intangibles and other
Annex - Non operating items 2020
2020
Yapi deconsolidation1 -1,576 -1,576
GCC
Integration costs in Italy -1,347 -1,272
Additional real estate disposals
Regulatory headwinds impact on CoR
Real estate valuation3
Regulatory headwinds impact on CoR
Non Core accelerated rundown
Real estate valuation
+516 +296
All divisions2
GCC
-5 -3 +9 +9
-6 -4
-98 -98 -5 -7
All divisions
CB Germany, CEE,
CIB
Non Core
All divisionsRegulatory headwinds impact on CoR
Non Core accelerated rundown
Real estate valuation3
Regulatory headwinds impact on CoR4
Non Core accelerated rundown
Real estate valuation3
Goodwill impairment
2020
-3
-4
CB Germany
-4 -5
-4 -5
Non Core
All divisions
-557
-519 All divisions
-8
-8
30 -878
23 -878
Non Core
All divisions
GCC
Expected loss(a) on stock and new business
Underlying expected loss on new business1, bps
Underlying expected loss on stock1, bps
FY20 underlying expected loss - new business distribution, bps
Annex - Risk story - Expected loss
Avg EL> 100
25
4Q20 underlying expected loss - stock distribution, bps
Avg EL> 100
32
▪ Expected loss on new business in FY20 below Team 23 guidance and solidly in the investment grade category 2
(a) Group excluding Non Core.
46 (b) Impact of state guarantees on EL new business was -2bps in 3Q20 and -2bps in FY20.
Avg EL< 25
Avg EL< 32
Loan book by sector
4Q20 gross performing customer loans EoP(a)
Rating distribution1
Sector
446bn
17%HighMediumModerateLow
59%
Annex - Risk story - Loan book by sectorSectors Covid-19 impact (selection)
▪ High Impact (10%)
- Transport, travel & airline
- Shipping
- Tourism
- Oil
▪ Medium Impact (14%)
-
Construction
▪ Moderate Impact (17%)
- Automotive
- Private individuals (other)
▪ Low Impact (59%)
- Agricultural
- Utilities
- Healthcare & pharma
- Private individuals (mortgages)
(a) Gross performing customer loan end-of-period = total loans to customers at face value (i.e. before deduction of provisions), including repos and (in divisional figures) intercompany, excluding non performing
(i.e. bad loans, unlikely to pay, and past due) and debt securities.
Loan book by sector deep dive
4Q20 gross performing customer loans EoP(a)
Country distribution
Italy
High impact sector (exhaustive)
Gaming
Airline Shipping Textiles
Automotive suppliers
TourismOil and gasTransport, travel
10%
1%
1%
2%
3%
Annex - Risk story - Loan book by sector
Rating distribution1
4Q20
48 (b) Total gross performing customer loans for 4Q20 at 446bn of which 10% high impact, 14% medium impact, 17% moderate impact, 59% low impact.
(a) Gross performing customer loan equal to total loans to customers at face value (i.e. before deduction of provisions), includi ng repos and (in divisional figures) intercompany, excluding non performing (i.e. bad loans, unlikely to pay, and past due) and debt securities.
Moratoria
Moratoria1
Country2
Segment
Outstanding volume, bn
Outstanding as % of total loan portfolio
Expired volume, bn
Individuals Enterprises
4.3 1.4
15.1 2.1
Total
19.4
11.4% 3.5
Annex - Risk story - Moratoria
Non Investment GradeInvestment Grade
Individuals Enterprises
0.0 0.3
0.0 0.4
0.0% 0.7
Individuals Enterprises
0.0 0.4
0.1 1.2
Total
0.2
0.3% 1.7
Total 3.2
Individuals 0.8
Enterprises 2.4
2.0 4.2
Moratoria: expiration dates and volumes in Italy and CEE
Annex - Risk story - Moratoria expirations
Expiring volumes1, bn
ITACEE
1Q21
2Q21
3Q21
4Q21
After 2021
State guaranteed volumes
Annex - Risk story - State guarantees
UniCredit1
State guarantee programmes
450(a)
129
154.3
15.6
822(a)
36
3.9
3.3
150(a)
7
1.1
0.8
28
n.a.
8.1
1.1
51 (a) Source:https://www.ecb.europa.eu/pub/financial-stability/fsr/focus/2020/html/ecb.fsrbox202005_04~42dd37a855.en.html.
Net loans covered by state guarantee
Risk for UniCredit
Asset quality by division
Net flows to NPEs, recoveries and write-offs - FY20, m
Annex - Risk story - Asset quality by division
Recoveries
Write-offs
6,389
CB Italy
CB Germany
CB Austria
CEE1
CIB
Group excl.
Non Core2
Gross NPE ratio
2.3% 3.8%
Default rate
1.0% 1.6%
Gross loans breakdown by stages
Gross loans1 and provisions EoP, bn
Stage 3
Stage 2
502 25 44
484 23 67
467 21
83
Stage 1
432
395
363
Stage 1 and 2: 446bn
Provisions on Stage 3
Provisions on Stage 1 and 2
4Q19
o/wGrossNPE
Stage 3
Stage3
(% of Gross loans)
Annex - Risk story - Loan book by stage
Coverage ratio
o/wStage2
Stage 2
(% of Gross loans)
5.0% | 4.7% | 4.5% |
4Q19
3Q20
4Q20
65.2%
61.3%
59.8%
o/wGrossperformingloans
8.8% 4Q19
Coverage ratio
3.6%
3Q20
4Q20
16.5
13.9 12.7
2.6
3.8 4.1
86.1%
o/wStage1
Stage 1
(% of Gross loans)
13.8%
17.8%
3Q20
4Q20
4.1%
3.6%
81.5%
77.6%
4Q19
3Q20
4Q20
Coverage ratio
0.2%
0.3%
0.3%
2021 TLAC/MREL funding plan
UniCredit SpA 2021 TLAC/MREL funding plan, bn
11.5 - 14.0
Annex - TLAC/MREL funding plan
Main drivers
▪ In January 2021 UniCredit SpA has already successfully issued 2bn dual tranche Senior Preferred (in 5Y and 10Y format), that are part of 2021 Funding Plan
MREL eligible instruments1
4.5 - 5.5
TLAC
Senior preferred exemption
Senior non preferred
Tier 2
AT1
2.5 - 3.0
2.5 - 3.0
1.0 - 1.25
1.0 - 1.25
2021 Plan
▪ The issuance follows the successful completion of 2020 TLAC/MREL funding plan for almost 13bn, including c. 2bn of SNP issuances as pre-funding
▪ This year the issuance plan is more skewed towards MREL instruments, while bank capital needs are quite limited given the very substantial buffer
Risk weighted assets
Annex - RWAs
RWA transitional1 Q/Q, bn
Operational
378.7
MarketCredit
▪ Credit RWA down 7.8bn Q/Q mainly driven by: − Business evolution (-5.6bn Q/Q, o/w -2.2bn new state guarantees, balance mainly reflecting lower loans) − Regulatory headwinds (-0.7bn Q/Q, o/w +0.2bn Procyclicality)
▪ Market RWA down 1.3bn Q/Q mainly due to decreased exposure in Interest Rate Risk trading book
▪ Operational RWA down 1.6bn benefitting from a lower risk profile thanks to better trend in operational losses
CET1 capital
Annex - CET1 capital
CET1 fully loaded
CET1 transitional(a)
Absolute amount
51.8bn
50.1bn
48.5bn
49.1bn(b)
Absolute amount
50.1bn
51.0bn
(b)
(a) CET1 transitional benefit from the application of the transitional arrangements foreseen by the regulation and adopted by the Group. From 2Q20 onwards, the differences against the fully loaded ratios are fully due to the IFRS9 transitional treatment adopted by UCG.
(b) Pro forma including deduction of share buyback of 179m, subject to supervisory and AGM approval. Stated CET1 ratio at 15.14%, stated MDA buffer at 611bps and stated CET1 capital at 49.3bn. Stated CET1 ratio transitional at 15.96%, stated MDA buffer transitional at 693bps and stated CET1 capital transitional at 52.0bn
Tier 1 and total capital
Annex - Tier 1 and Total Capital ratio
Tier 1 transitional
Total capital transitional
Absolute amount
56.4bn
58.3bn
59.1bn
(a)
Absolute amount
67.0bn
66.8bn
67.3bn
(a)
(a) Pro forma including deduction of share buyback of 179m, subject to supervisory and AGM approval. Stated Tier 1 ratio transiti onal at 18.22%, stated Tier 1 buffer transitional at 736bps and stated Tier 1 capital transitional at 59.3bn. Stated Total capital ratio transitional at 20.72%, stated Total capital buffer transitional a t 742bps and stated Total capital transitional at 67.5bn.
Leverage ratio
Basel 3 leverage ratio fully loaded
Annex - Leverage ratio
Basel 3 leverage ratio transitional
Please note that numbers may not add up due to rounding, and some figures are managerial. These notes refer to the metric and/or defined term presented onpage 4 (Highlights 1/2):
End notes
1. Underlying net profit is the basis for the ordinary capital distribution policy. See page 43 -44-45 in annex for details. For 2021, as an exception, the ordinary capital
distribution will comply with the ECB's payout recommendations published on 15 Dec 20.
2. Non operating items related to Yapi deconsolidation equal to 1.6bn, integration costs in Italy equal to 1.3bn, CIB goodwill impairment equal to 0.9bn.
3. As at 31 Dec 2020, the Non-Performing Exposures do not incorporate the New Definition of Default classification. However, if thenew classification criteria were implemented, the UniCredit Group gross Non-Performing Exposures (NPE) ratio - which at 31 Dec 2020 amounts to 4.5 per cent (5.3 per cent UniCredit S.p.A. ratio) - would have been slightly higher (approximately 4.8%, and 5.8% for UniCredit S.p.A.).
4. LCR shown is point in time ratio as of 31 Dec 20, regulatory figure published in pillar 3 as of 4Q20 will be 171% (trailing 12M average).
These notes refer to the metric and/or defined term presented onpage 5 (Balance sheet strength):
1. For 2015 figures as shown in FY16 results. For 2017 figures as shown in FY18 results. For 2019 and 2020 figures as shown in FY20 results. P2R in 2015 at 250bps, lowered to 200bps in 2018. In 2020, P2R further lowered to 175bps (o/w 98bps to be covered by CET1, 77bps by AT1 and T2, than ks to art. 104a CRDV). Including deduction of ordinary share buyback of 179m, subject to supervisory and AGM approval. Stated CET1 ratio at 15.14% and stated MDA buffer, at 611bps.
These notes refer to the metric and/or defined term presented onpage 6 (Risk culture):
1. For 2015 figures as shown in FY16 results. For 2017 figures as shown in FY18 results. For 2019 and 2020 figures as shown in FY20 results. For the expected loss, figures are shown as per the corresponding year. For 2015 expected loss on stock as per regulatory reporting, EL on new business presented as marginal contribution.
2. Retail branches only; for Western Europe excluding minor premises, Corporate and Private Banking. For 2015 and 2017 including Turkey otherwise excluded.
This note refer to the metric and/or defined term presented onpage 7 (Highlights 2/2):
1. Underlying net profit is the basis for the ordinary capital distribution policy. See page 43-44-45 in annex for details. For 2021, as an exception, the ordinary capital distribution will comply with the ECB's payout recommendations published on 15 Dec 20.
2. Stated LLPs in FY20 (€4,996m) based on reclassified profit & Loss (P&L).
These notes refer to the metric and/or defined term presented onpage 8 (Group key figures):
1. Based on underlying net profit. See page 43-44-45 in annex for details.
2. Underlying net profit is the basis for the ordinary capital distribution policy. See page 43 -44-45 in annex for details. For 2021, as an exception, the ordinary capital
distribution will comply with the ECB's payout recommendations published on 15 Dec 20.
This note refer to the metric and/or defined term presented onpage 10 (Group P&L - Summary):
1. Underlying net profit is the basis for the ordinary capital distribution policy. See page 43-44-45 in annex for details. For 2021, as an exception, the ordinary capital distribution will comply with the ECB's payout recommendations published on 15 Dec 20.
These notes refer to the metric and/or defined term presented onpage 11 (FY20 underlying net profit):
1. Underlying net profit is the basis for the ordinary capital distribution policy. See page 43 -44-45 in annex for details. For 2021, as an exception, the ordinary capital distribution will comply with the ECB's payout recommendations published on 15 Dec 20.
2. Underlying RoAC based on underlying net profit. See page 43-44-45 in annex for details.
These notes refer to the metric and/or defined term presented onpage 12 (Net interest):
59 1. Net contribution from hedging strategy of non-maturity deposits in 4Q20 at 361.1m, +7.4m Q/Q and +7.0m Y/Y.
2. Other include: margin from impaired loans, time value, days effect, FX effect, one -offs and other minor items.
End notes
These notes refer to the metric and/or defined term presented onpage 14 (Trading and Dividends):
1. Include dividends and equity investments. Yapi is valued by the equity method (at 32% stake for Jan 20 and at 20% thereafter) and contributes to the dividend line of the Group P&L based on managerial view.
2. Valuation adjustments (XVA) include: Debt/Credit Value Adjustment (DVA/CVA), Funding Valuation Adjustments (FuVA) and Hedging desk.
This note refers to the metric and/or defined term presented onpage 15 (Costs):
1. Non HR costs include "other administrative expenses", "recovery of expenses" and "amortisation, depreciation and impairment losses on intangible and tangible assets".
This note refer to the metric and/or defined term presented onpage 17 (LLPs and CoR):
1. Anticipation of future impacts: increased overlay, prudent classification and regulatory headwinds including new Definition o f Default.
This note refer to the metric and/or defined term presented onpage 19 (Group excl. Non Core asset quality):
1. Gross non performing exposure end-of-period including gross bad loans, gross unlikely to pay and gross past due. Gross past due at 751m in 4Q20 (-13.0% Q/Q and -
12.0% Y/Y).
These notes refer to the metric and/or defined term presented onpage 20 (Non Core asset quality):
1. Gross non performing exposure end-of-period including gross bad loans, gross unlikely to pay and gross past due.
2. Including disposal of a portfolio of Leasing real estate exposures closed in 4Q20.
These notes refer to the metric and/or defined term presented onpage 21 (CET1 capital):
1. MDA buffer is regulatory relevant only versus the CET1 ratio transitional, at 693bps; Including deduction of ordinary share buyback of 179m, subject to supervisory and AGM approval, pro-forma CET1 ratio transitional, at 688bps; CET1 MDA requirements at 9.03% in 4Q20.
2. Underlying net profit is the basis for the ordinary capital distribution policy. See page 43 -44-45 in annex for details. For 2021, as an exception, the ordinary capital distribution will comply with the ECB's payout recommendations published on 15 Dec 20.
3. Payment of coupon on AT1 instruments (194m pre tax in 4Q20, 449m pre tax for FY20) and CASHES (30m pre tax in 4Q20, 122m for FY20). Dividends accrued as 60% of ECB cap (15% of the cumulated 2019-2020 net profit adjusted by capital neutral items).
4. In 4Q20 CET1 ratio impact from FVOCI +5bps, o/w +4bps due to BTP.
5. BTP sensitivity: +10bps parallel shift of BTP asset swap spreads has a -2.3bps pre and -1.7bps post tax impact on the fully loaded CET1 ratio as at 31 Dec 20.
6. TRY sensitivity: 10% depreciation of the TRY has around -1.8bps net impact (capital) on the fully loaded CET1 ratio. Managerialdata as at 31 Dec 20.
7. DBO sensitivity: 10bps decrease in discount rate has a -5.2bps pre and -3.7bps post tax impact on the fully loaded CET1 ratio as at 31 Dec 20.
8. Proposal of ordinary share buyback subject to supervisory and AGM approval.
9. Ordinary distribution (447m): 60% cash (268m), 40% share buyback (179m) ('SBB'). Ordinary cash distribution: €0.12 per share, expected to be paid in Apr 21 subject to AGM approval. Ordinary SBB distribution subject to supervisory and AGM approval. Ordinary SBB execution expected to commence after AGM in Apr 21. Extraordinary distribution (652m): 100% SBB. Extraordinary SBB distribution subject to supervisory and AGM approval (and provided that on 3 0 Sep 21 the ECB will repeal the recommendation of 15 Dec 20). Extraordinary SBB execution expected to commence not before 01 Oct 21.
End notes
These notes refer to the metric and/or defined term presented onpage 22 (TLAC):
1. As of Dec 20, P2R at 175bps and countercyclical buffer of 4bps.
2. Non computable portion of subordinated instruments.
3. Proposal of ordinary share buyback subject to supervisory and AGM approval.
This note refers to the metric and/or defined term presented onpage 23 (Tangible equity):
1. End-of-period tangible book value per share equals end-of-period tangible equity divided by end-of period number of shares excluding treasury shares. Number of shares
2,237m as of Dec 20.
These notes refer to the metric and/or defined term presented onpage 25 (Closing remarks):
1. Underlying CoR: defined as stated CoR excluding regulatory headwinds.
2. Underlying net profit is the basis for the ordinary capital distribution policy. See page 43-44-45 in annex for details. For 2021, as an exception, the ordinary capital
distribution will comply with the ECB's payout recommendations published on 15 Dec 20.
These notes refer to the metric and/or defined term presented onpage 29 (ESG ratings 2/2):
1. Score downgraded to 71.7 from 74 mainly due to changes in the assessment process (UniCredit ranking has in fact improved to 8 /74 from 10/61) - covering Italian companies only.
2. Rating downgraded to 4.6 from 5 mainly due to changes in FTSE4Good assessment methodology.
This note refers to the metric and/or defined term presented onpage 30 (Division: CB Italy):
1. Normalised for one-offs (-118m) in 2Q19, non operating items (-56m) in 4Q19, integration costs in Italy (-742m) in 1Q20 and regulatory headwind impact on CoR including new DoD (-224m) in 4Q20.
This note refers to the metric and/or defined term presented onpage 31 (Division: CB Germany):
1. Normalised for the impact of real estate valuation (+24m) in 1Q19, (+6m) in 2Q19, (+79m) in 3Q19 and (+117m) in 4Q19, non operating items (-158m) in 4Q19, regulatory headwinds impact on CoR including new DoD (-3m) in 1Q20, (-5m) in 2Q20, (-3m) in 3Q20 and (-13m) in 4Q20, real estate valuation (-1m) in 2Q20, (-1m) in 3Q20 and (+2m) in 4Q20.
This note refers to the metric and/or defined term presented onpage 32 (Division: CB Austria):
1. Normalised for the impact of real estate valuation (+1m) in 1Q19, (-7m) in 2Q19 and (+3m) in 4Q19, non operating items (-110m) in 4Q19, real estate valuation (+2m) in 1Q20, (+5m) in 2Q20, (-1m) in 3Q20 and (-1m) in 4Q20 and regulatory headwind impact on CoR including new DoD (-42m) in 4Q20.
End notes
These notes refer to the metric and/or defined term presented onpage 33 (Division: CEE):
1. Excludes dividends from Yapi which are no longer reported in CEE and now reported in Group Corporate Centre.
2. Normalised for the impact of real estate valuation (+1m) in 1Q19, (+1m) in 2Q19, (-1m) in 3Q19 and (-17m) in 4Q19, non operating items (-16m), integration costs in Italy (-11m) in 1Q20, real estate valuation (+3m) in 1Q20, (-3m) in 2Q20, (+1m) in 4Q20, regulatory headwinds impact on CoR including new DoD (+1m) in 2Q20 and (- 59m) in 4Q20.
This note refers to the metric and/or defined term presented onpage 34 (Division: CIB):
1. Normalised for disposal of Ocean Breeze (-178m) in 2Q19, non operating items (-97m) and real estate valuation (+2m) in 4Q19, integration costs in Italy (-19m) in 1Q20, real estate valuation (-1m) and regulatory headwinds impact on CoR including new DoD (-46m) in 4Q20.
These notes refer to the metric and/or defined term presented onpage 35 (Division: Group Corporate Centre):
1. Includes dividends from Yapi which are no longer reported in CEE and now reported in Group Corporate Centre.
2. Normalised for the impact of real estate valuation (+21m) in 1Q19, (-1m) in 2Q19, (+2m) in 3Q19 and (-153m) in 4Q19, Fineco disposal and other related effects (+1,176m) and other one-offs (-33m) in 2Q19, unwinding of Yapi joint venture (-365m), integration costs (-73m), Non Core accelerated rundown (-348m) and other non operating items (-90m) in 4Q19, Yapi deconsolidation (-1,576m), Integration costs in Italy (-489m) and additional real estate disposals (+296m) in 1Q20, real estate valuation (+4m) in 1Q20, (-8m) in 2Q20, (-3m) in 3Q20 and (+21m) in 4Q20, CIB goodwill impairment (-878m) and regulatory headwinds impact on CoR including new DoD (-136m) in 4Q20.
This note refer to the metric and/or defined term presented onpage 36 (Division: Non Core):
1. Normalised for other one-offs (-22m) in 2Q19 and (-186m) in 4Q19, real estate valuation (+2m) and Non Core accelerated rundown (-707m) in 4Q19, integration costs in
Italy (-10m) in 1Q20, Non Core accelerated rundown (-98m) in 2Q20, (-4m) in 3Q20 and (-8m) in 4Q20.
These notes refer to the metric and/or defined term presented onpage 37 (Net interest):
1. Net contribution from hedging strategy of non-maturity deposits in FY20 at 1,390.0m, -11.4m FY/FY.
2. Other include: margin from impaired loans, time value, days effect, FX effect, one -offs and other minor items.
These notes refer to the metric and/or defined term presented onpage 38 (Commercial loans & rates):
1. Average gross commercial performing loans excluding repos are managerial figures and are calculated as daily averages.
2. Gross customer performing loan rates calculated assuming 365 days convention, adjusted for 360 days convention where analytic ally available, and based on average gross balances.
3. Includes Group Corporate Centre and Non Core.
End notes
These notes refer to the metric and/or defined term presented onpage 39 (Commercial deposits & rates):
1. Average commercial deposits excluding repos are managerial figures and are calculated as daily averages. Deposits net of Group Bonds placed by the network.
2. Gross customer performing deposits rates calculated assuming 365 days convention, adjusted for 360 days convention where anal ytically available, and based on average gross balances.
3. Includes Group Corporate Centre and Non Core.
This note refer to the metric and/or defined term presented onpage 40 (TFAs):
1. Refers to Group commercial Total Financial Assets. Non-commercial elements, i.e. CIB, Group Corporate Centre, Non Core and Leasing/Factoring are excluded.
Numbers are managerial figures.
These notes refer to the metric and/or defined term presented onpage 42 (4Q20 stated vs Underlying net profit):
1. Underlying net profit is the basis for the ordinary capital distribution policy. See page 43 -44-45 in annex for details. For 2021, as an exception, the ordinary capital
distribution will comply with the ECB's payout recommendations published on 15 Dec 20.
2. Underlying RoTE based on underlying net profit.
3. Gross impact before taxes.
4. Including new definition of default.
5. Including PPA and minorities.
This note refer to the metric and/or defined term presented onpage 43 (4Q20 underlying net profit):
1. Underlying net profit is the basis for the ordinary capital distribution policy. See page 44-45 in annex for details. For 2021, as an exception, the ordinary capital distribution will comply with the ECB's payout recommendations published on 15 Dec 20.
These notes refer to the metric and/or defined term presented onpage 44 (Non operating items 2019):
1. As per specific Press Release published on 30 Nov 19.
2. Severance charges for Germany and Austria booked in commercial banking, CIB and Group Corporate Centre divisions.
3. Including -6m related to net interest.
4. Impairment of intangible and other include -189m software write-off and -279m other (o/w -93m Group excluding Non Core and -186m Non Core).
These notes refers to the metric and/or defined term presented onpage 45 (Non operating items 2020):
1. Adjustment for Yapi MtM valuation (previously -1,669m) applied retroactively in 1Q20.
2. 1Q20 integration costs in: CB Italy equals to -742m, CB Germany equals to -0m, CB Austria equals to -0m, CEE equals to -11m, CIB equals to -19m, GCC equals to
-489m and Non Core equals to -10m.
3. Adjustment for Real Estate MtM valuation (previously zero) applied retroactively in 1Q20.
63 4. Including new definition of default.
End notes
These notes refer to the metric and/or defined term presented onpage 46 (Expected loss):
1. Always excludes regulatory headwinds. For stock: 0bp in FY19; 0bps in 9M20 and 0bp in FY20. For the new business: 0bp in FY19 ; 0bps in 9M20 and 0bps in FY20.
2. Investment grade based on internal rating scale definition. Distribution by rating for Western Europe net of banks and govies. Managerial data.
This note refer to the metric and/or defined term presented onpage 47 (Loan book by sector):
1. Investment grade based on internal rating scale definition.
This note refer to the metric and/or defined term presented onpage 48 (Loan book by sector deep dive): 1. Investment grade based on internal rating scale definition.
These notes refer to the metric and/or defined term presented onpage 49 (Moratoria):
1. Data as of 15 Jan 21 (Austria as of 31 Dec 20), including all Covid-19 initiatives. Volumes in Enterprises include Leasing. CEE consolidated data. Rating distribution calculated on the basis of internal details.
2. Figures based on legal entities. Includes also CIB clients.
3. Opt-out means that the moratoria is automatically granted to all clients which can then decide not to have it. It applies in Ser bia and Hungary.
This note refer to the metric and/or defined term presented onpage 50 (Moratoria expiration):
1. Italy data as of 02 Feb 21 to embed the postponement of the expiration date of State moratoria from January to June 2021 established by "Legge Bilancio 2021".
CEE data as of 15 Jan 21. In Romania and Serbia, moratoria issued in 2020 fully expired. A new wave of moratoria for 2021 has been launched.
These notes refer to the metric and/or defined term presented onpage 51 (State guarantees):
1. Data as of 15 Jan 21, including all Covid-19 initiatives. CEE consolidated data. The percentage covered by guarantee calculated on the basis of internal details.
2. Figures based on legal entities. Includes also CIB clients.
3. Data as of 31 Dec 20 (Italy as of 12 Jan 21).
These notes refer to the metric and/or defined term presented onpage 52 (Asset quality by division):
1. Including Profit Centre Milan.
2. The sum of the divisions shown is not equal to the Group excluding Non Core as excludes Group Corporate Centre.
This note refer to the metric and/or defined term presented onpage 53 (Loan book by stage):
1. Total loans to customers end-of-period, at face value (i.e. before deduction of provisions), including active repos and (in divisional figures) intercompany, both performing and non performing (comprising bad loans, unlikely to pay, and past due); debt securities and non current assets held for disposa l are excluded.
End notes
These notes refer to the metric and/or defined term presented onpage 54 (TLAC/MREL funding plan):
1. Volumes gross of expected buy back flows.
2. As of January 22nd 2021
This note refers to the metric and/or defined term presented onpage 55 (RWA):
1. Business evolution: changes related to customer driven activities (mainly loans. Including guaranteed loans). Regulatory head winds includes: regulatory changes (eg. CRR or
CRD) determining variations of RWA; Procyclicality: change in macroeconomy or client's credit worthiness; Models: methodological changes to existing or new models.
Business actions: initiatives to decrease RWA (e.g. securitisations, collateral related actions). FX effect: impact from exposures in foreign currencies. Other credit includes extraordinary/non-recurring disposals.
These notes refer to the metric and/or defined term presented onpage 56 (CET1 ratio):
1. Capital requirement for Dec 19: 10.09% CET1 ratio computed as 4.50% CET1 Pillar 1 minimum + 2.00% Pillar 2 requirements + 3.5 9% combined capital buffer.
2. Capital requirement for Sep 20: 9.03% CET1 ratio computed as 4.50% CET1 Pillar 1 minimum + 0.98% Pillar 2 requirements (as 56 .25% of P2R binding in 2020: 1.75%) + 3.54% combined capital buffer, including CRD5 art. 104a.
3. Capital requirement for Dec 20: 9.03% CET1 ratio computed as 4.50% CET1 Pillar 1 minimum + 0.98% Pillar 2 requirements (as 56 .25% of P2R binding in 2020: 1.75%) + 3.54% combined capital buffer, including CRD5 art. 104a.
These notes refer to the metric and/or defined term presented onpage 57 (Tier 1 and Total Capital):
1. Minimum capital requirement for Dec 19: 11.59% Tier1 (T1) ratio computed as 6.00% T1 Pillar 1 minimum + 2.00% Pillar 2 requirements + 3.59% combined capital buffer.
2. Minimum capital requirement for Sep 20: 10.85% Tier1 (T1) ratio computed as 6.00% T1 Pillar 1 minimum + 1.31 % Pillar 2 requi rements + 3.54% combined capital buffer, including CRD5 art. 104a.
3. Minimum capital requirement for Dec 20: 10.85% Tier1 (T1) ratio computed as 6.00% T1 Pillar 1 minimum + 1.31 % Pillar 2 requi rements + 3.54% combined capital buffer, including CRD5 art. 104a.
4. Minimum capital requirement for Dec 19: 13.59% Total Capital (TC) ratio computed as 8.00% TC Pillar 1 minimum + 2.00% Pillar 2 requirements + 3.59% combined capital buffer.
5. Minimum capital requirement for Sep 20: 13.29% Total Capital (TC) ratio computed as 8.00% TC Pillar 1 minimum + 1.75% Pillar 2 requirements + 3.54% combined capital buffer.
6. Minimum capital requirement for Dec 20: 13.29% Total Capital (TC) ratio computed as 8.00% TC Pillar 1 minimum + 1.75% Pillar 2 requirements + 3.54% combined capital buffer.
Disclaimer
This Presentation includes "forward-looking statements" which rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of UniCredit S.p.A. (the "Company") and are therefore
inherently uncertain. There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents or expectations of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance.
The information and opinions contained in this Presentation are provided as at the date hereof and the Company undertakes no obligation to provide further information, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except if required by
applicable law. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to
such securities or other financial instruments. Any recipient is therefore responsible for his own independent investigations and assessments regarding the risks,
benefits, adequacy and suitability of any operation carried out after the date of this Presentation. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or
Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in
the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Stefano Porro, in his capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects the UniCredit Group's documented results, financial accounts and accounting records.
Neither the Company nor any member of the UniCredit Group nor any of its or their respective representatives, directors or employees shall be liable at any time in connection with this Presentation or any of its contents for any indirect or incidental damages including, but not limited to, loss of profits or loss of opportunity, or any other liability whatsoever which may arise in connection of any use and/or reliance placed on it.
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UniCredit S.p.A. published this content on 10 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2021 22:20:03 UTC.
