H. 18.16 - UBI Banca: trade union agreement

Bergamo, 26th October 2017 - UBI Banca informs that a Framework Agreement has been signed today with all trade union representatives, which completes the process started on 15th June 2017 with the legal and contractual procedures relating to the update of the Group's Business Plan, resulting from the acquisition and integration of the three Banks (Banca Adriatica, Banca Tirrenica e Banca Teatina) within the context of the Group's new organisational structure.

This agreement, concluded close to the first1 of the three planned migrations into UBI Banca, relating to Banca Adriatica (the former Nuova Banca Marche) and Carilo, contains a "framework" of rules to be applied in the progressive steps for the implementation of the Business Plan and is designed to support the Group's reorganisation and strategic development processes and at the same time to manage the repercussions on the working conditions of staff on the basis of social and economic sustainability criteria, with attention paid to employment and territorial issues, but nevertheless within the necessary limits set by the processes for the overall restructuring and increased efficiency of the Group, designed to achieve the objectives and synergies set out in that same Business Plan.

The key aspects of the agreement regard the following:

• the activation of an incentivised early staff exit plan, which at this first stage will allow a total of approximately 400 staff in the Group who satisfy the relative pension requirements by 31.12.2024 to gain voluntary access to pension treatment, which is to say to the benefits of the sector "solidarity fund". Those exits are scheduled to commence from as early as January 2018.

  The exits agreed will entail further costs amounting to approx. € 50 million gross to be recognised in the Profit and Loss relating to the results for the 4th quarter of 2017. The expected synergies are in line with Business Plan forecasts;

• the continuation and expansion of part-time working in all the newly acquired companies, the maintenance of flexibility connected amongst other things with the temporary suspension of work (measures termed "defensive solidarity") as agreed with the "Bridge Banks", together with the right of all Group staff to apply voluntarily in 2018 for periods of extraordinary leave with a view to achieving cost synergies with compatible forms of social policies;

• solutions also of an organizational nature, consisting of the identification of decentralised operating and territorial centres, designed to conserve employment and professional expertise directly in the local areas in which the staff concerned are located, supported also by appropriate personnel role-change and retraining programmes.

The subsequent stages for the implementation of the strategic plan will be followed by further processes and initiatives required for the necessary overall streamlining of the Group's workforce and the consequent containment of operating costs.

Finally, the generation turnover plan will continue on the basis of the numbers already laid down in the aforementioned Business Plan, related principally to the redundancy initiative, with provisions also to support youth employment, with around 130 new staff by the end of 2018, consisting mainly of people starting their first job.

For further information: UBI Banca - Investor Relations - Tel +39 035 3922217; Email: investor.relations@ubibanca.it; UBI Banca - Media Relations - Tel. +39 02 77814213/ 4936 /4938; Email: media.relations@ubibanca.it. Copy of this press release is available on the web site www.ubibanca.it

1

As already reported, the mergers of the remaining banks acquired are expected to take place at the end of November 2017 ( Banca Tirrenica and

subsidiary) and in February 2018 (Banca Teatina).