PRESS RELEASE

UBI results for the period ended 30th June 2020

The Bank performed with great resilience in the first half of 2020 even in an economic scenario strongly impacted by Covid-19.

Net profit stood at €184.3 million, up by 38.1% com pared with the same period in 2019. Long- term loan originations accelerated in 2Q 2020 to €5 .5 billion compared with €3.9 billion in 1Q 2020 (+42%); indirect funding rose to €98.7 billion compared with €92.2 billion as at 31 st March 2020 (+7%); deposits on current accounts reached €70.7 billion, up from approximately €68 billion as at 31 st March 2020; the CET 1 ratio was 13.41% (after the pro- rata accrual of an hypothesis of dividend of €0.20 per share for FY2020) compared with 12.86% as at 31st March 2020.

The UBI Banca Board of Directors wishes to convey its special thanks to all the Bank's employees, who put maximum commitment into ensuring continuity and excellence of service together with attention and responsiveness to the Group's customers and to the relative communities.

In detail

Strong balance sheet indicators

  • Fully loaded CET1 ratio of 13.41% (12.86% in March 2020) after the pro-rata accrual of an hypothesis of dividend of €0.20 per share for FY 2020
    The ratio includes neither future DTAs nor capital optimisation actions
  • NPE ratio of 7.48% (7.51% in March 2020) and 6.6% pro forma excluding the disposal of approximately €800 million of SME bad loans current ly being processed
  • Annualised default rate1 in 1H 2020 of 1%, unchanged compared with 1H 2019 notwithstanding the inclusion of the impacts of the new definition of default
  • Texas ratio2 of 47% (48.8% as at 31.3.2020)
  • Direct funding grows to €98.6 billion (+4.8% vs Mar ch 2020)
  • Indirect funding grows to €98.7 billion (+7% vs Mar ch 2020)
  • NSFR > 100%
  • LCR > 200%

Solid operating results in 1H 2020(vs 1H 2019)

  • Net profit of €184.3 million, up 38.1% compared wit h €133.4 million in the first half of 2019
  1. Default rate: annualised gross migrations of performing exposures to non-performing status/initial volumes of gross performing loans (item 40. 2) in the reclassified consolidated balance sheet).
  2. Calculated as total net non-performing exposures/((equity excluding profit and profit attributable to minority interests) - total intangible assets).

1

  • Operating income of €1,795.6 million, slightly down by 1.8% compared with 1H 2019 notwithstanding the impact of the Covid-19 lockdown
    • Net interest income of €803.4 million (-9.3%). Net of the effects of IFRS 9 (down to +€17.2 million in 1H 2020 compared with +€56.2 mill ion in 1H 2019 primarily due to a significant reduction in non-performing exposures), the fall in net interest income reduces to 5,3%
    • Sound performance by net fee and commission income at €823.7 million (+1.3%)
    • Finance result of €95.2 million (€55.1 million in t he 1H 2019)
  • Operating expenses of €1,178.7 million (-0.8%), not withstanding the inclusion of higher administrative expenses (approx. €37 million) in re lation to Covid-19 and the ISP public purchase and exchange offer
  • Annualised loan loss rate of 79 bps compared with 783 bps in 1H 2019, which included approximately 13 bps relating to wholesale disposals carried out in 2019.
  • Profit net of non-recurring items4, inclusive of the lockdown effects, was €176.1 mil lion, substantially in line with €185.8 million in 1H 201 9

Solid operating results in 2Q 2020(vs 1Q 2020)

  • Stated profit of €90.7 million, in line with €93.6 million in 1Q 2020 notwithstanding the Covid-19 lockdown impact on revenues and greater loan provisioning.
  • Operating income fell 3.5% to €882 million
    • Net of the effects of IFRS 9 (+€6 million in 2Q 202 0 vs +€11.3 million in 1Q 2020), net interest income was essentially unchanged compared with 1Q 2020 at €392.3 million. If the effects of IFRS 9 are included, net interest income was €398.3 million compared with €405.2 million in 1Q 2020
    • Net fee and commission income came higher than net interest income and amounted to €403.3 million notwithstanding the impact of lockdo wn (€420.5 million in 1Q 2020)
    • Finance result of €41.6 million (€53.6 million in 1 Q 2020)
  • Operating expenses of €585.2 million, down 1.4% com pared with €593.6 million in 1Q 2020, notwithstanding the inclusion of approx. €31 million in relation to higher costs for Covid-19 and in relation to the ISP public purchase and exchange offer
  • Annualised loan loss rate of 85 bps, leading to an increase of almost 1 percentage point in all categories of non performing loans. Coverage for performing exposures rose further to 0.58%.
  • Profit net of non-recurring items5, inclusive of the lockdown effects, was €76.7 mill ion, compared with €99.3 million in 1Q 2020

3 Account was taken once only of the impact of the disposals of the factoring and lease positions in the calculation of the annualisation of the loan loss rate

4 The main non-recurring items in the first half net of taxes and minority interests:

1H 2020: +€8.2 million (+€12.7 million for the rel ease of excess provisions for redundancy incentive expenses; +€11.7 million from the sale of real estate properties in Milan; -€10.9 million extraordinary contribution to the Reso lution Fund; -€5.8 million resulting from the first time application of the fair valuation of real estate properties);

1H 2019: -€52.5 million (-€42.6 million relating to redundancy incentives under the trade union agreement reported in the press release dated 28.03.2019, -€12.2 million for extrao rdinary contributions to the National Resolution Fund; +€2.5 million relating to disposals of equity and other investments).

5 The main non-recurring items in the quarter net of taxes and minority interests:

2Q 2020: +€12.7 million for the release of excess p rovisions for redundancy incentive expenses; +€11.7 million from the sale of real estate properties in Milan; -€10.9 million ext raordinary contribution to the Resolution Fund.

1Q 2020: +€5.8 million resulting from first-time ap plication of the fair valuation of real estate properties.

2

***

Milan, 3rd August 2020 - The Board of Directors of Unione di Banche Itali ane Spa (UBI Banca) has approved the consolidated results as at and for the period ended 30 June 2020.

Operating performance of the Group

Results for the second quarter of 2020 (compared with 1Q 2020)

The second quarter of the year was impacted by the consequences, not yet resolved, of the pandemic which hit Italy and the world. Notwithstanding this, the Bank showed its resilience and promptness of reaction and a great ability to recover, ending the quarter with a net profit of €90.7 million , substantially in line with €93.6 million in 1Q 2020.

The Bank's operations succeeded in generating approximately €882 million of operating income compared with approximately €913.6 million in 1Q 20 20, the result of resilient performance by net interest income, a strong recovery by fee and commission income during the quarter, a good result from equity-accounted investees and the contribution, although smaller, from the finance result.

In detail net interest income came to €398.3 million, down 1.7% or -€6.9 million vs 1Q 2020. The reduction is due almost completely to the contraction in the contribution of IFRS 9 resulting from non- performing exposures, which fell to approximately € 6 million in 2Q 2020 from €11.3 million in 1Q 2020.

Net fee and commission income was higher than net interest income in the second quarter of the year, which confirmed a trend in progress since 4Q 2019.

Notwithstanding the impact of lockdown, which prevented the Bank from conducting normal business with customers, the second quarter of the year recorded net fee and commission income of €403.3 million, lower than €420.5 million in 1Q 2020, but more than satisfactory given the operating conditions. The impact of lockdown took effect mainly in April - leading to a result for fees and commissions far below the Business Plan6 forecast -, but also in May, although to a smaller degree. A significant recovery was however seen in June (up 11.6% compared with the BP forecast for the month), recorded as a result of the contribution from both the components: securities-related services and general banking business with customers.

This performance brought the contribution from securities-relatedservices to a total of €228.5 million in 2Q 2020, compared with €243 million in 1 Q 2020, while that by fees and commissions on general banking business was €174.8 million compared with €177.5 million in 1Q 2020.

The total finance result was positive by €41.6 million in 2Q 2020 and compa res with €53.6 million earned in 1Q 2020.

Profits of equity-accountedinvestees in 2Q 2020 came to €15 million compared with €7.80 million in 1Q 2020, the result of stronger results reported by all the joint ventures (Zhong Ou, Aviva Vita and Lombarda Vita).

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

Including systemic contributions to the Resolution Fund, operating expenses totalled €585.2 million in 2Q 2020 compared with €593.6 million in 1Q 2020 (-1.4%).

6 BP published in February 2020

3

Net of those contributions (€17.5 million to the Re solution Fund in 2Q 2020 compared with €42 million in 1Q 2020), and therefore in terms comparable with other major Italian banks, operating expenses stood at €567.7 million, up 2.9% compared with €551.6 mil lion in 1Q 2020, due to the inclusion of €31.2 million of expenses connected with Covid-19 and the ISP public purchase and exchange offer (takeover bid). Net of those items, operating expenses, again excluding the systemic contributions, stood at €536.5 million, down 1.6% compared with 1Q 2020.

In detail:

  • staff costs totalled €342.2 million, down 3.6% compared with € 355 million in 1Q 2020, benefiting, amongst other things, from staff departures which had taken place in previous periods.
    Excess redundancy provisioning effected in previous periods (in relation to the 2017-2019 Business Plan) compared to costs actually sustained for those redundancies, gave rise to reversals amounting to €12.7 million recognised within a separate item "redundancy scheme expenses" net of taxes and minority interests;
  • other administrative expenses, net of systemic contributions (€17.5 million in 2 Q 2020 and €42 million in 1Q 2020), increased to €169.8 million du e to higher costs (€31.2 million) connected with Covid-19 and the ISP public purchase and exchange offer, compared with €139.4 million in 1Q 2020. Net of those higher costs, administrative expenses are substantially in line (-1 million) quarter- on-quarter.
  • depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets amounted to €55.7 million in 2Q 2020 compared with €57.2 million in 1Q 2020.

Net impairment losses on loans and advances to customers amounted to €180.8 million in the second quarter of the year compared with €155.6 million in 1Q 2020.

Provisioning in 2Q 2020 led to further growth in coverage for all categories of non-performing exposures of almost 1 percentage point and increased coverage for performing exposures to 0.58% (compared with 0.55% in 1Q 2020). As already reported, provisioning in 1Q 2020 included approximately €50 million relating to specific impa irment losses recognised on unlikely-to-payexposures in the sectors hit hardest by Covid-19,which brought average coverage as a whole in these sectors to approximately 35%.

Net impairment losses on loans recognised in 2Q 2020 give an annualised loan loss rate of 85 basis points, compared with 73 basis points in 1Q 2020.

Finally, taxes on income for the period from continuing operations in 2Q 2020 amounted to €32.1 million, to give a tax rate of 26.2% (compared with 34% in 1Q 2020).

***

Results for the first half of 2020 compared with the first half of 2019

The first half of 2020 incorporated the immediate impacts of the terrible pandemic which hit Italy and led to lockdown in many areas and to a new way of working, with social distancing and new personal protection regulations.

Notwithstanding this, the first half ended with net profit for the Group of €184.3 million, to record growth of 38.1% compared with €133.4 million in 1H 2019.

Operating income totalled €1,795.6 million, down slightly by 1.8% c ompared with €1,829 million earned in 1H 2019. The resilience of this income was the result of: growth in fees and commissions which exceeded net interest income to confirm a trend which first appeared in the last quarter of 2019; an increase in profits of equity accounted investees; and the finance result, which increase compared with the first half of 2019.

4

Within operating income, net interest income came to €803.4 million (886.2 in 1H2019), affected mainly by a smaller contribution from the IFRS 9 component (down by -€39 million) and greater cost for funding due to prior year (2019) issuances of institutional funding and growth in deposits by ordinary customers.

The good performance by net fee and commission income continued, up by 1.3% to €823.7 million from €812.9 million in 1H 2019, notwithstanding the lockdown which affected 2020 due to the Covid- 19 crisis.

The increase in net fee and commission income is attributable to performances as follows:

  • the contribution from securities-relatedservices which grew 3.3% to €471.4 million compared with €456.3 million in 2019;
  • fees and commissions from ordinary banking business amounting to €352.3 million, down by 1.2% compared with €356.6 million in 1H 2019.

The finance result totalled +€95.2 million, up compared with +€55.1 m illion in 1H 2019, the aggregate result of the following:

  • the profit on the disposal/repurchase of financial assets and liabilities was +€70 million (+€20.7 million in 1H 2019);
  • net trading income totalled +€23.2 million (+€1.1 m illion in 1H 2019);
  • net hedging income recorded a loss of €14.6 million (-€8 million in 1H 2019)
  • net income from assets/liabilities measured at fair value was positive by +€16.6 million (+€41.4 million in 1H 2019).

Constant control over costs again had a positive impact on operating expenses (which included the contributions to the Resolution Fund amounting to € 59.5 million in the reporting period compared with €60.1 million in 1H 2019).

Operating expenses were in fact down by 0.8% to total €1,178.7 million compared with €1,188.5 million in 1H 2019, notwithstanding greater costs incurred in relation to Covid-19 and the ISP public purchase and exchange offer. Net of these components, operating expenses fell by 4%.

In detail:

  • in 1H 2020 staff costs amounted to €697.2 million, down 3.2% compared with 1H 2019. The improvement is attributable mainly to reductions in staff numbers with 694 fewer staff than at the end of June 2019, the result above all of participation in voluntary redundancies schemes.
    Excess redundancy provisioning effected in previous periods (in relation to the 2017-2019 Business Plan) compared to costs actually sustained for those redundancies, gave rise to reversals amounting to €12.7 million recognised within a separate item "redundancy scheme expenses" net of taxes and minority interests;
  • other administrative expenses totalled €368.7 million from €361.2 million in 1H 2019 and they included a contribution of €59.5 million to the Res olution Fund (€60.1 million in 1H 2019). It is highlighted that 1H 2020 included the recognition of greater costs incurred in relation to Covid-19 and the ISP public purchase and exchange offer for a total of €37.3 million. Net of those greater costs and of systemic contributions, other administrative expenses fell significantly by 9.7%.
  • depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets amounted to €112.9 million in 1H 2020 compared wit h €106.8 million in 1H 2019.

Net impairment losses on loans and advances to customers amounting to €336.4 million were recognised in the first half of the year, compared with €391.6 million in 1H 2019 impacted by the recognition of €112.1 million in relation to the sa le of bad loan lease and factoring positions.

The loan loss rate in the first half of the year was 79 basis points annualised (78 bp annualised7 in 1H 2019, which when adjusted to exclude the impact of disposals for the period stood at 65 bp annualised).

7 Account was taken once only of the impact of the disposals of the factoring and lease positions in the calculation of the annualisation of the loan loss rate.

5

Finally, taxes on income for the period from continuing operations for 1H 2020 amounted to €84.4 million, to give a tax rate of 30.5%.

***

Balance sheet figures

As at 30th June 2020, net lending to customers8 excluding repos and CCG financing, totalled €83 billion, down compared to €83.2 billion in March ma inly due to the reduction in net non-performing exposures by over €0.1 billion 9.

Grants of medium to long-term loans grew in the first half to €9.4 billion (compared with €5.6 billion in the same period of 2019) with a substantial acceleration in the second quarter of 2020 (€5.5 billion, +42% compared with the first quarter of 2020), due, amongst other things, to "Covid-19" loans granted on local markets.

With regard to trends for non-performing exposures:

  • total grossnon-performing exposures10 amounted to €6,568.6 million, a decrease of 1.6% (€104.6 million) compared with 31 st March and down by 3.9% (€269.8 million) compared w ith December 2019.
    The ratio of gross non-performing exposures fell further to 7.48%(7.51% in March 2020 and 7.80% in December 2019) and to approximately 6.6%pro forma if account is taken of the disposal, currently being processed, of approximately €800 mi llion 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% annualised, in line with the figure for 31st March 2020 (and slightly down compared with 1.1% recorded for the full year 2019).
    At the end of June 2020, coverage for total non-performingexposures was up overall, both in terms of stated coverage (40.52% compared with 39.56% at the end of March and with 39.00% as at 31st December 2019) and including write-offs (52.96% compared with 52.03% at the end of March and with 50.92% at the end of 2019).
  • In netterms, total non-performingexposures fell to €3,906.8 million compared with €4,033.4 million in March and €4,171.5 million in December 2 019 with a contraction of 3.1% (€126.6 million) compared with March 2020 and of 6.3% (€264 .7 million) compared with December 2019
    respectively. Net non-performing exposures as a percentage of total net loans fell to 4.61% from 4.70% in March and 4.93% as at 31st December 2019.

As a result of the reduction in total net non-performing exposures, the Texas ratio fell further to 47%, showing continuous improvement compared with 48.8% in March and 55.1% in December 2019.

As at 30th June 2020, direct banking funding of the Group amounted to €98.6 billion, an increase compared with €94 billion as at 31 st March 2020 and with €95.5 billion at the beginning of the year, as result of:

  1. Item 40. 2) in the reclassified consolidated balance sheet.
  2. Inclusive of repos and CCG financing, net lending to customers was 84.7 billion compared to 85.8 in March 2020 and 84.6 in Dec 2019.
  3. See the tables attached.

6

  • growth in funding from ordinary customers (€78.4 billion compared with €75.5 billion in March and €76.9 billion at the end of 2019). "Current account s and sight deposits" grew to €70.7 billion (€68 billion at the end of the first quarter and €69 bil lion at the end of 2019), notwithstanding growth at the same time in assets under management;
  • an increase in institutional funding to €20.1 bil lion from €18.5 billion in March 2020 and from €18. 6 billion at the end of 2019.

Indirect funding grew due to both an increase in volumes and the market performance effect to reach €98.7 billion at the end of June 2020, up fro m €92.2 billion at the end of March.

In detail, assets under management in the narrow sense totalled €44.9 billion (+9% compared with the end of March) and assets under custody amounted to €26.1 billion (+8.9% compared with the end of March), while insurance products were slightly up to €27.7 billion from €27.1 billion in March.

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 came into force in June 2020.

As concerns the Group's exposure to the ECB in TLTROs, TLTRO2 repayments were made with value date 24th June 2020 for a total of €10 billion (maturity of a €7.5 billion tranche and early repayment of €2.5 billion with final maturity in Ma rch 2021).

Again with value date 24th June 2020, the UBI Group took part in the TLTRO3 auction for €12 billion .

The Group continues to benefit from a solid liquidity position, with a Net Stable Funding Ratio higher than one and a Liquidity Coverage Ratio higher than two.

Eligible assets available to the Group as at 30th June 2020, totalled €34.6 billion (of which €29.2 billion available) already net of haircuts and inclusive of €11.1 billion of liquidity deposited with the ECB.

The Group's financial assets11 grew to €23 billion at the end of June (€20.1 bill ion at the end of March 2020 and €19.2 billion in December 2019), the resul t of an increase in short-term positions held in Italian government securities, above all in the portfolio of financial assets measured at amortised cost. Altogether Italian government securities amounted to €13.07 billion compared with approx. €11 billion at the end of March and €9.79 billion at the end of December (and, net of insurance company positions, to €11.59 billion compared with €9.53 billion at th e end of March and €8.38 billion in December 2019). They account for 56.8% of the securities portfolio.

As at 30th June 2020, equity attributable to the shareholders of the Parent, inclusive of profit, amounted to €10,242,988 thousand, up compared with €10,095,6 93 thousand in March 2020 and €9,539,424 thousand12 in December 2019.

Again at the end of June 2020, the Group's CET1 ratio was 13.41% fully loaded (12.86% in March 2020 and 12.29% at year-end 2019). The main benefits recorded in 2Q 2019 were attributable to the change in CRR2 regulations (+34 bps as a result, amongst other things, of the credit supporting factor) and to OCI valuation reserves (+14 bps). The ratio includes profit for the period, after the pro-rata accrual of an hypothesis of dividend of €0.20 per s hare for FY2020.

The fully loaded Tier 1 ratio was 14.12% (13.54% as at 31st December 2020).

The Group's fully loaded Total Capital Ratio was 17.84% (17.05% as at 31st December 2020). In phased-in terms the ratios are 13.45% (CET 1), 14.16% (Tier 1) and 17.88% (total capital).

Finally, in June 2020 the Group's leverage ratio was 5.7% (phased-in and fully loaded).

***

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

7

As at 30th June 2020, total staff of the UBI Banca Group numbered 19,547 (19,629 at the end of December 2020 and 19,940 at the end of December 2019).

Again at the end of June 2020, the domestic branch network was composed of 1,565 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.

***

Outlook

The UBI Banca Group's capital strength, its solid liquidity position, the high quality of its assets and the dedication of its staff were confirmed and fundamental in meeting the challenge of the crisis, supporting communities and achieving the significant results reported at the end of the first half of 2020.

The outlook for the second half of the year will be influenced by the extraordinary operations which ISP will carry out following the positive outcome of the public purchase and exchange offer.

At present the Board of Directors has no details of the aforementioned operations (e.g. sale of branches to BPER), the relative timing and the operating and capital impacts.

In the absence of the aforementioned extraordinary operations and of a new Covid-19 crisis, core revenues (net interest income and fee and commission income) are forecast to remain resilient, while careful control over costs will continue.

Loan losses will be affected by the completion of the wholesale disposal of SME bad loans, large part of which was however already recognised in 2019, and by the end (if not extended) of the moratoriums granted to help households and companies, the possible impacts of which will be partially mitigated by the use, in progress, of support measures provided by recent legislative measures.

Overall positive net profit is forecast, able to pay dividends in line with the expectations of the Updated Business Plan 2022.

For further information please contact:

UBI Banca - Investor relations - Tel. +39 035 39222 17

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

8

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 items "Depreciation, amortisation and net impairment losses on property, plant and equipment and intangible assets" 2 and "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 20063, 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.

  1. The update is applicable for financial statements ending as at 31st December 2019 or still open on that date.
  2. As far as the item "Depreciation, amortisation and net impairment losses on property, plant and equipment and intangible assets" is concerned, it is specified that starting from the 2nd quarter 2020, the depreciation relating to the instrumental properties pursuant to IAS 16 have been recognised on the basis of the "revalued value" and of useful life re-determined in light of the future change in the valuation method.
  3. 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 properties 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

1st Quarter

Figures in thousands of euro

restatement

restatement

restatement

restatement

impacts

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

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

130. 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 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

30.06.2020

31.12.2019

Changes

% changes

30.06.2019

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

595,996

694,750

(98,754)

-14.2%

616,670

(20,674)

-3.4%

20.

Financial assets measured at fair value through profit or loss

2,918,145

1,758,730

1,159,415

65.9%

1,660,974

1,257,171

75.7%

1) Loans and advances to banks

17,320

16,213

1,107

6.8%

15,365

1,955

12.7%

2) Loans and advances to customers

258,194

260,667

(2,473)

-0.9%

268,043

(9,849)

-3.7%

3) Securities and derivatives

2,642,631

1,481,850

1,160,781

78.3%

1,377,566

1,265,065

91.8%

Financial assets measured at fair value through other

30.

comprehensive income

12,343,270

12,221,616

121,654

1.0%

11,618,770

724,500

6.2%

1) Loans and advances to banks

-

-

-

-

-

-

-

2) Loans and advances to customers

-

-

-

-

-

-

-

3) Securities

12,343,270

12,221,616

121,654

1.0%

11,618,770

724,500

6.2%

40.

Financial assets measured at amortised cost

107,308,571

101,736,289

5,572,282

5.5%

103,356,416

3,952,155

3.8%

1) Loans and advances to banks

14,527,728

11,723,923

2,803,805

23.9%

12,393,150

2,134,578

17.2%

2) Loans and advances to customers

84,739,135

84,564,033

175,102

0.2%

86,074,151

(1,335,016)

-1.6%

3) Securities

8,041,708

5,448,333

2,593,375

47.6%

4,889,115

3,152,593

64.5%

50.

Hedging derivatives

21,869

35,117

(13,248)

-37.7%

22,452

(583)

-2.6%

60.

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

913,730

547,019

366,711

67.0%

541,946

371,784

68.6%

70.

Equity investments

284,750

287,353

(2,603)

-0.9%

266,897

17,853

6.7%

80.

Technical reserves of reinsurers

77

-

77

-

-

77

-

90.

Property, plant and equipment

2,879,330

2,370,247

509,083

21.5%

2,596,499

282,831

10.9%

100.

Intangible assets

1,745,824

1,739,903

5,921

0.3%

1,720,771

25,053

1.5%

of which: goodwill

1,465,260

1,465,260

-

0.0%

1,465,260

-

0.0%

110.

Tax assets

3,584,469

3,755,895

(171,426)

-4.6%

3,963,978

(379,509)

-9.6%

120.

Non-current assets and disposal groups held for sale

90,109

268,100

(177,991)

-66.4%

7,353

82,756

n.s.

130.

Other assets

1,847,177

1,200,966

646,211

53.8%

1,199,827

647,350

54.0%

Total assets

134,533,317

126,615,985

7,917,332

6.3%

127,572,553

6,960,764

5.5%

LIABILITIES AND EQUITY

10.

Financial liabilities measured at amortised cost

114,934,180

109,795,016

5,139,164

4.7%

111,840,625

3,093,555

2.8%

a) Due to banks

16,679,833

14,367,985

2,311,848

16.1%

17,053,172

(373,339)

-2.2%

b) Due to customers

76,065,027

72,577,255

3,487,772

4.8%

70,840,373

5,224,654

7.4%

c) Debt securities issued

22,189,320

22,849,776

(660,456)

-2.9%

23,947,080

(1,757,760)

-7.3%

20.

Financial liabilities held for trading

598,541

555,296

43,245

7.8%

571,499

27,042

4.7%

30.

Financial liabilities designated at fair value

462,372

197,610

264,762

134.0%

149,871

312,501

n.s.

40.

Hedging derivatives

708,400

386,778

321,622

83.2%

230,655

477,745

n.s.

50.

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

166,404

145,191

21,213

14.6%

188,275

(21,871)

-11.6%

60.

Tax liabilities

295,667

210,882

84,785

40.2%

170,802

124,865

73.1%

70.

Liabilities associated with assets held for sale

-

2,331

(2,331)

-100.0%

-

-

-

80.

Other liabilities

4,154,680

2,735,807

1,418,873

51.9%

2,290,570

1,864,110

81.4%

90.

Provision for post-employment benefits

277,276

289,641

(12,365)

-4.3%

299,460

(22,184)

-7.4%

100.

Provisions for risks and charges:

397,084

489,485

(92,401)

-18.9%

415,665

(18,581)

-4.5%

a) commitments and guarantees granted

61,025

54,005

7,020

13.0%

51,951

9,074

17.5%

b) pension and similar obligations

81,200

86,756

(5,556)

-6.4%

87,892

(6,692)

-7.6%

c) other provisions for risks and charges

254,859

348,724

(93,865)

-26.9%

275,822

(20,963)

-7.6%

110.

Technical reserves

2,250,864

2,210,294

40,570

1.8%

2,070,095

180,769

8.7%

120.+140.

Share capital, equity instruments, share premiums, reserves,

10,058,703

9,306,321

752,382

8.1%

9,172,290

886,413

9.7%

+150.+160.

valuation reserves and treasury shares

+170.+180

190.

Minority interests (+/-)

44,861

58,230

(13,369)

-23.0%

39,344

5,517

14.0%

200.

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

184,285

233,103

(48,818)

-20.9%

133,402

50,883

38.1%

Total liabilities and equity

134,533,317

126,615,985

7,917,332

6.3%

127,572,553

6,960,764

5.5%

iii

UBI Banca Group: Reclassified consolidated income statement

1H 2019

2nd

2nd

FY 2019

1H 2020

Change

% change

Quarter

Quarter

Change

% change

restated

restated

2020

2019

Figures in thousands of euro

A

B

A-B

A/B

C

D

C-D

C/D

E

10.-20.-140.

Net interest income

803,428

886,213

(82,785)

(9.3%)

398,265

440,616

(42,351)

(9.6%)

1,725,105

of which: TLTRO II

20,556

24,893

(4,337)

(17.4%)

10,445

12,502

(2,057)

(16.5%)

48,688

of which: IFRS 9 credit components

34,692

66,657

(31,965)

(48.0%)

14,629

35,498

(20,869)

(58.8%)

110,595

of which: IFRS 9 contractual modifications without derecognition components

(17,462)

(10,437)

7,025

67.3%

(8,659)

(5,281)

3,378

64.0%

(25,283)

70.

Dividends and similar income

5,274

7,210

(1,936)

(26.9%)

498

2,040

(1,542)

(75.6%)

7,658

Profits (losses) of equity-accounted investees

22,827

19,421

3,406

17.5%

15,019

13,106

1,913

14.6%

40,343

40.-50.

Net fee and commission income

823,748

812,934

10,814

1.3%

403,265

411,998

(8,733)

(2.1%)

1,661,759

of which: performance fees

33,119

7,153

25,966

n.s.

26,056

4,171

21,885

n.s.

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

95,153

55,084

40,069

72.7%

41,557

17,649

23,908

135.5%

104,284

160.+170.

Net income from insurance operations

7,546

7,436

110

1.5%

5,045

3,934

1,111

28.2%

15,314

230.

Other net operating income/expense

37,581

40,737

(3,156)

(7.7%)

18,312

19,075

(763)

(4.0%)

83,472

Operating income

1,795,557

1,829,035

(33,478)

(1.8%)

881,961

908,418

(26,457)

(2.9%)

3,637,935

190. a)

Staff costs

(697,208)

(720,427)

(23,219)

(3.2%)

(342,233)

(355,993)

(13,760)

(3.9%)

(1,427,650)

190. b)

Other administrative expenses

(368,682)

(361,192)

7,490

2.1%

(187,280)

(175,161)

12,119

6.9%

(711,060)

of which: SRF and DGS contributions

(59,456)

(60,068)

(612)

(1.0%)

(17,473)

(18,070)

(597)

(3.3%)

(107,585)

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

210.+220.

equipment and intangible assets

(112,852)

(106,909)

5,943

5.6%

(55,671)

(54,424)

1,247

2.3%

(221,327)

Operating expenses

(1,178,742)

(1,188,528)

(9,786)

(0.8%)

(585,184)

(585,578)

(394)

(0.1%)

(2,360,037)

Net operating income

616,815

640,507

(23,692)

(3.7%)

296,777

322,840

(26,063)

(8.1%)

1,277,898

130.

Net impairment losses for credit risk relating to:

(341,489)

(393,378)

(51,889)

(13.2%)

(184,375)

(263,375)

(79,000)

(30.0%)

(744,098)

130. a)

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

(479)

724

(1,203)

n.s.

(298)

773

(1,071)

n.s.

137

130. a)

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

(336,447)

(391,584)

(55,137)

(14.1%)

(180,831)

(263,016)

(82,185)

(31.2%)

(738,438)

130. a)

- financial assets measured at amortised cost: securities

(362)

(764)

(402)

(52.6%)

(977)

(277)

700

n.s.

(2,454)

130. b)

- financial assets measured at fair value through other comprehensive income

(4,201)

(1,754)

2,447

139.5%

(2,269)

(855)

1,414

165.4%

(3,343)

200. a)

Net provisions for risks and charges - commitments and guarantees granted

(8,181)

1,943

(10,124)

n.s.

(7,239)

2,505

(9,744)

n.s.

(26)

200. b)

Net provisions for risks and charges - other net provisions

125

(2,229)

2,354

n.s.

(784)

1,238

(2,022)

n.s.

(24,809)

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

260.

intangible assets

(8,718)

-

(8,718)

n.s.

-

-

-

-

(39,386)

250.+280.

Profits (losses) from the disposal of equity investments

18,180

4,188

13,992

n.s.

18,113

3,915

14,198

n.s.

6,101

290.

Profit (loss) before tax from continuing operations

276,732

251,031

25,701

10.2%

122,492

67,123

55,369

82.5%

475,680

300.

Taxes on income for the period/year from continuing operations

(84,433)

(61,212)

23,221

37.9%

(32,051)

(9,827)

22,224

n.s.

(118,812)

340.

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

(20,748)

(13,701)

7,047

51.4%

(12,445)

(7,286)

5,159

70.8%

(33,912)

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

before the Business Plan and other impacts

171,551

176,118

(4,567)

(2.6%)

77,996

50,010

27,986

56.0%

322,956

190. a)

Redundancy expenses net of taxes and minority interests

12,734

(42,583)

55,317

n.s.

12,717

2

12,715

n.s.

(89,413)

190. b)

Business Plan project expenses net of taxes and minority interests

-

(133)

(133)

(100.0%)

-

(45)

(45)

(100.0%)

(145)

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

210.

taxes and minority interests

-

-

-

-

-

-

-

-

(295)

350.

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

184,285

133,402

50,883

38.1%

90,713

49,967

40,746

81.5%

233,103

iv

UBI Banca Group: Reclassified consolidated quarterly income statements

2020

2019

2nd

4th Quarter

3rd Quarter

2nd

1st Quarter

Figures in thousands of euro

1st Quarter

Quarter

Quarter

restated

restated

restated

restated

10.-20.-140.

Net interest income

398,265

405,163

412,041

426,851

440,616

445,597

of which: TLTRO II

10,445

10,111

11,100

12,695

12,502

12,391

of which: IFRS 9 credit components

14,629

20,063

21,395

22,543

35,498

31,159

of which: IFRS 9 contractual modifications without derecognition components

(8,659)

(8,803)

(11,867)

(2,979)

(5,281)

(5,156)

70.

Dividends and similar income

498

4,776

77

371

2,040

5,170

Profits (losses) of equity-accounted investees

15,019

7,808

9,139

11,783

13,106

6,315

40.-50.

Net fee and commission income

403,265

420,483

446,256

402,569

411,998

400,936

of which: performance fees

26,056

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

41,557

53,596

58,198

(8,998)

17,649

37,435

160.+170.

Net income from insurance operations

5,045

2,501

4,030

3,848

3,934

3,502

230.

Other net operating income/expense

18,312

19,269

18,797

23,938

19,075

21,662

Operating income

881,961

913,596

948,538

860,362

908,418

920,617

190. a)

Staff costs

(342,233)

(354,975)

(355,469)

(351,754)

(355,993)

(364,434)

190. b)

Other administrative expenses

(187,280)

(181,402)

(162,670)

(187,198)

(175,161)

(186,031)

of which: SRF and DGS contributions

(17,473)

(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

(55,671)

(57,181)

(58,542)

(55,876)

(54,424)

(52,485)

Operating expenses

(585,184)

(593,558)

(576,681)

(594,828)

(585,578)

(602,950)

Net operating income

296,777

320,038

371,857

265,534

322,840

317,667

130.

Net impairment losses for credit risk relating to:

(184,375)

(157,114)

(210,487)

(140,233)

(263,375)

(130,003)

130. a)

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

(298)

(181)

(344)

(243)

773

(49)

130. a)

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

(180,831)

(155,616)

(208,167)

(138,687)

(263,016)

(128,568)

130. a)

- financial assets measured at amortised cost: securities

(977)

615

(1,355)

(335)

(277)

(487)

130. b)

- financial assets measured at fair value through other comprehensive income

(2,269)

(1,932)

(621)

(968)

(855)

(899)

200. a)

Net provisions for risks and charges - commitments and guarantees granted

(7,239)

(942)

(1,936)

(33)

2,505

(562)

200. b)

Net provisions for risks and charges - other net provisions

(784)

909

(1,223)

(21,357)

1,238

(3,467)

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

260.

intangible assets

-

(8,718)

(39,386)

-

-

-

250.+280.

Profits (losses) from the disposal of equity investments

18,113

67

1,813

100

3,915

273

290.

Profit (loss) before tax from continuing operations

122,492

154,240

120,638

104,011

67,123

183,908

300.

Taxes on income for the period from continuing operations

(32,051)

(52,382)

(22,469)

(35,131)

(9,827)

(51,385)

340.

(Profit) loss for the period attributable to minority interests

(12,445)

(8,303)

(12,972)

(7,239)

(7,286)

(6,415)

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

85,197

61,641

50,010

126,108

before the Business Plan and other impacts

77,996

93,555

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

12,717 17

- -

- -

90,713 93,572

(46,830)

-

2

(42,585)

-

(12)

(45)

(88)

(295)

-

-

-

38,072

61,629

49,967

83,435

v

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

1H 2020

1H 2019

restated

Change

% change

Figures in thousands of euro

net of non-

net of non-

recurring items

recurring items

Net interest income

803,428

886,213

(82,785)

(9.3%)

of which: TLTRO II

20,556

24,893

(4,337)

(17.4%)

of which: IFRS 9 credit components

34,692

66,657

(31,965)

(48.0%)

of which: IFRS 9 contractual modifications without derecognition components

(17,462)

(10,437)

7,025

67.3%

Dividends and similar income

5,274

7,210

(1,936)

(26.9%)

Profits (losses) of equity-accounted investees

22,827

19,421

3,406

17.5%

Net fee and commission income

823,748

812,934

10,814

1.3%

of which: performance fees

33,119

7,153

25,966

n.s.

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

assets/liabilities measured at fair value through profit or loss

95,153

55,084

40,069

72.7%

Net income from insurance operations

7,546

7,436

110

1.5%

Other net operating income/expense

37,581

40,737

(3,156)

(7.7%)

Operating income

1,795,557

1,829,035

(33,478)

(1.8%)

Staff costs

(697,208)

(720,427)

(23,219)

(3.2%)

Other administrative expenses

(352,573)

(343,106)

9,467

2.8%

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

and intangible assets

(112,852)

(106,323)

6,529

6.1%

Operating expenses

(1,162,633)

(1,169,856)

(7,223)

(0.6%)

Net operating income

632,924

659,179

(26,255)

(4.0%)

Net impairment losses for credit risk relating to:

(341,489)

(393,378)

(51,889)

(13.2%)

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

(479)

724

(1,203)

n.s.

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

(336,447)

(391,584)

(55,137)

(14.1%)

- financial assets measured at amortised cost: securities

(362)

(764)

(402)

(52.6%)

- financial assets measured at fair value through other comprehensive income

(4,201)

(1,754)

2,447

139.5%

Net provisions for risks and charges - commitments and guarantees granted

(8,181)

1,943

(10,124)

n.s.

Net provisions for risks and charges - other net provisions

125

(2,229)

2,354

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

-

-

-

-

Profit (loss) before tax from continuing operations

283,379

265,515

17,864

6.7%

Taxes on income for the year for continuing operations

(86,542)

(65,965)

20,577

31.2%

Profit (loss) for the period attributable to minority interests

(20,748)

(13,701)

7,047

51.4%

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

176,089

185,849

(9,760)

(5.3%)

vi

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

Business Plan

Other items

(BI)

1H 2020

First time

Profits/losses

1H 2020

Redundancy

Milan logistics

Extraordinary

application of

measurement of

from disposal of

expenses

reorganisation project

contribution to the

properties at fair

equity and other

net of non-

(2017-2020 BI)

(2020-2022 BI)

Resolution Fund

value

investments

recurring items

Figures in thousands of euro

(pursuant to IAS 16)

Net interest income

803,428

803,428

of which: TLTRO II

20,556

20,556

of which: IFRS 9 credit components

34,692

34,692

of which: IFRS 9 contractual modifications without derecognition components

(17,462)

(17,462)

Dividends and similar income

5,274

5,274

Profits (losses) of equity-accounted investees

22,827

22,827

Net fee and commission income

823,748

823,748

of which: performance fees

33,119

33,119

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

at fair value through profit or loss

95,153

95,153

Net income from insurance operations

7,546

7,546

Other net operating income/expense

37,581

37,581

Operating income

1,795,557

-

-

-

-

-

1,795,557

Staff costs

(697,208)

(697,208)

Other administrative expenses

(368,682)

16,109

(352,573)

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

(112,852)

(112,852)

Operating expenses

(1,178,742)

-

-

16,109

-

-

(1,162,633)

Net operating income

616,815

-

-

16,109

-

-

632,924

Net impairment losses for credit risk relating to:

(341,489)

(341,489)

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

(479)

(479)

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

(336,447)

(336,447)

- financial assets measured at amortised cost: securities

(362)

(362)

- financial assets measured at fair value through other comprehensive income

(4,201)

(4,201)

Net provisions for risks and charges - commitments and guarantees granted

(8,181)

(8,181)

Net provisions for risks and charges - other net provisions

125

125

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

18,180

(17,443)

(737)

-

Profit (loss) before tax from continuing operations

276,732

-

(17,443)

16,109

8,718

(737)

283,379

Taxes on income for the year for continuing operations

(84,433)

5,768

(5,238)

(2,883)

244

(86,542)

(Profit) loss for the year attributable to minority interests

(20,748)

(20,748)

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

other impacts

171,551

-

(11,675)

10,871

5,835

(493)

176,089

Redundancy expenses net of taxes and minority interests

12,734

(12,734)

-

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

184,285

(12,734)

(11,675)

10,871

5,835

(493)

176,089

2017-2020 Business Plan

Other items

1H 2019

Extraordinary

Profits/losses

1H 2019

restated

restated

Redundancy

Business Plan

contribution to

from disposal of

expenses

project expenses

the Resolution

equity and other

net of non-

Fund

investments

recurring items

886,213

886,213

24,893

24,893

66,657

66,657

(10,437)

(10,437)

7,210

7,210

19,421

19,421

812,934

812,934

7,153

7,153

55,084

55,084

7,436

7,436

40,737

40,737

1,829,035

-

-

-

-

1,829,035

(720,427)

(720,427)

(361,192)

18,086

(343,106)

(106,909)

586

(106,323)

(1,188,528)

-

-

18,086

586

(1,169,856)

640,507

-

-

18,086

586

659,179

(393,378)

(393,378)

724

724

(391,584)

(391,584)

(764)

(764)

(1,754)

(1,754)

1,943

1,943

(2,229)

(2,229)

-

-

4,188

(4,188)

-

251,031

-

-

18,086

(3,602)

265,515

(61,212)

(5,880)

1,127

(65,965)

(13,701)

(13,701)

176,118

-

-

12,206

(2,475)

185,849

(42,583)

42,583

-

(133)

133

-

-

-

133,402

42,583

133

12,206

(2,475)

185,849

vii

UBI Banca Group: Consolidated balance sheet

- mandatory statement -

30.06.2020

31.12.2019

Figures in thousands of euro

restated

ASSETS

10.

Cash and cash equivalents

595,996

694,750

20.

Financial assets measured at fair value through profit or loss

2,918,145

1,758,730

a) financial assets held for trading

1,579,775

427,980

b) financial assets designated at fair value

8,545

10,278

c) other financial assets mandatorily measured at fair value

1,329,825

1,320,472

30.

Financial assets measured at fair value through other comprehensive income

12,343,270

12,221,616

40.

Financial assets measured at amortised cost

107,308,571

101,736,289

a) loans and advances to banks

14,527,728

11,921,289

b) loans and advances to customers

92,780,843

89,815,000

50.

Hedging derivatives

21,869

35,117

60.

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

913,730

547,019

70.

Equity investments

284,750

287,353

80.

Technical reserves of reinsurers

77

-

90.

Property, plant and equipment

2,879,330

2,370,247

100.

Intangible assets

1,745,824

1,739,903

of which: goodwill

1,465,260

1,465,260

110.

Tax assets

3,584,469

3,755,895

a) current

978,088

1,084,413

b) deferred

2,606,381

2,671,482

- of which pursuant to Law No. 214/2011

1,767,517

1,794,331

120.

Non-current assets and disposal groups held for sale

90,109

268,100

130.

Other assets

1,847,177

1,200,966

Total assets

134,533,317

126,615,985

LIABILITIES AND EQUITY

10. Financial liabilities measured at amortised cost

  1. due to banks
  2. due to customers
  3. debt securities issued

20. Financial liabilities held for trading

30. Financial liabilities designated at fair value

40. Hedging derivatives

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

60. Tax liabilities

  1. current
  2. deferred

70. Liabilities associated with assets held for sale

80. Other liabilities

90. Provision for post-employment benefits

100. Provisions for risks and charges:

  1. commitments and guarantees granted
  2. pension and similar obligations
  3. other provisions for risks and charges

110. Technical reserves

120. Valuation reserves

140. Equity instruments

150. Reserves

160. Share premiums

170. Share capital

180. Treasury shares (-)

190. Minority interests (+/-)

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

Total liabilities and equity

viii

114,934,180 109,795,016

16,679,833 14,367,985

76,065,027 72,577,255

22,189,320 22,849,776

598,541 555,296

462,372 197,610

708,400 386,778

166,404 145,191

295,667 210,882

51,637 64,547

244,030 146,335

  • 2,331
    4,154,680 2,735,807
    277,276 289,641
    397,084 489,485
    61,025 54,005
    81,200 86,756
    254,859 348,724
    2,250,864 2,210,294
    50,712 (79,938)
    397,948-
    3,499,465 3,276,589
    3,294,604 3,294,604
    2,843,177 2,843,177
    (27,203) (28,111)
    44,861 58,230
    184,285 233,103

134,533,317 126,615,985

UBI Banca Group: consolidated income statement

- mandatory statement -

Figures in thousands of euro

1H 2020

1H 2019

restated

10.

Interest and similar income

1,004,984

1,104,669

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

985,105

1,001,942

20.

Interest and similar expense

(158,531)

(182,054)

30.

Net interest income

846,453

922,615

40.

Fee and commission income

939,847

925,790

50.

Fee and commission expense

(113,780)

(111,228)

60

Net fee and commission income

826,067

814,562

70.

Dividends and similar income

5,518

7,472

80.

Net trading income (loss)

23,164

871

90.

Net hedging income (loss)

(14,613)

(8,036)

100.

Income (losses) from disposal or repurchase of:

72,299

23,290

a) financial assets measured at amortised cost

7,255

(4,220)

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

67,140

28,865

c) financial liabilities

(2,096)

(1,355)

110.

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

7,061

42,811

a) financial assets and liabilities designated at fair value

13,222

292

b) other financial assets mandatorily measured at fair value

(6,161)

42,519

120.

Gross income

1,765,949

1,803,585

130.

Net impairment losses for credit risk relating to:

(341,489)

(393,378)

a) financial assets measured at amortised cost

(337,288)

(391,624)

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

(4,201)

(1,754)

140.

Profits (losses) from contractual modifications without derecognition

(17,462)

(10,437)

150.

Financial income

1,406,998

1,399,770

160.

Net insurance premiums

151,962

159,533

170.

Other income/expenses of insurance operations

(154,217)

(173,285)

180.

Net income from banking and insurance operations

1,404,743

1,386,018

190.

Administrative expenses

(1,157,591)

(1,258,548)

a) staff costs

(678,208)

(784,110)

b) other administrative expenses

(479,383)

(474,438)

200.

Net provisions for risks and charges

(8,056)

(286)

a) commitments and guarantees granted

(8,181)

1,943

b) other net provisions

125

(2,229)

210.

Depreciation and net impairment losses on property, plant and equipment

(71,432)

(69,626)

220.

Amortisation and net impairment losses on intangible assets

(41,369)

(37,218)

230.

Other net operating income/expense

137,148

143,197

240.

Operating expenses

(1,141,300)

(1,222,481)

250.

Profits (losses) of equity investments

22,827

19,421

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

18,180

4,188

290.

Profit (loss) before tax on continuing operations

295,732

187,146

300.

Taxes on income for the year for continuing operations

(90,716)

(40,086)

310.

Profit (loss) after tax from continuing operations

205,016

147,060

330.

Profit (loss) for the period

205,016

147,060

340.

(Profit) loss for the period attributable to minority interests

(20,731)

(13,658)

350.

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

184,285

133,402

ix

UBI Banca Group: Loan tables

Loans and advances to customers measured at amortised cost as at 30th June 2020

Figures in thousands of euro

Gross exposure

Impairment

Carrying amount

losses

Non-performing exposures (Stage three)

(7.48%)

6,568,648

2,661,844

(4.61%)

3,906,804

- Bad loans

(3.84%)

3,377,032

1,770,187

(1.90%)

1,606,845

- Unlikely-to-pay loans

(3.50%)

3,078,068

880,681

(2.59%)

2,197,387

- Past-due exposures

(0.13%)

113,548

10,976

(0.12%)

102,572

Performing exposures (Stages one and two)

(92.52%)

81,304,495

472,164

(95.39%)

80,832,331

Total

87,873,143

3,134,008

84,739,135

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 30th June 2019

Figures in thousands of euro

Gross exposure

Impairment

Carrying amount

losses

Non-performing exposures (Stage three)

(9.97%)

9,002,822

3,690,587

(6.17%)

5,312,235

- Bad loans

(5.70%)

5,146,645

2,663,714

(2.88%)

2,482,931

- Unlikely-to-pay loans

(4.20%)

3,794,244

1,020,242

(3.22%)

2,774,002

- Past-due exposures

(0.07%)

61,933

6,631

(0.06%)

55,302

Performing exposures (Stages one and two)

(90.03%)

81,282,373

520,457

(93.83%)

80,761,916

Total

90,285,195

4,211,044

86,074,151

Coverage ratio

Coverage ratio

excluding write-offs

including write-offs

40.52%

52.96%

52.42%

68.38%

28.61%

29.34%

9.67%

0.58%

3.57%

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

40.99%

49.55%

51.76%

62.60%

26.89%

27.53%

10.71%

0.64%

4.66%

x

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Disclaimer

UBI Banca – Unione di Banche Italiane Scpa published this content on 03 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2020 12:16:09 UTC