7.8.2015 2Q15 and 1H15 UniCredit Group Results

The Board of Directors of UniCredit approved 1H15 results. Federico Ghizzoni, CEO of UniCredit, comments: "UniCredit posted a net profit exceeding € 1 billion in the first half 2015, an excellent result in a still unfavorable environment for the banking sector, with interest rates at their historical lows. We strengthened our capital ratios, confirming the solidity of our Group; capital should further improve also thanks to Pioneer deal. In contrast with the banking sector in Italy, UniCredit's asset quality improved significantly as a result of the reduction in impaired loans, deriving from a resilient performing loan book and an increase in collections. In a scenario characterized by a moderate economic recovery, both in Italy and in Europe, UniCredit showed significant growth in new loans origination. The new medium-long term credit granted to corporates and households, across its key markets, increased by c. 40% in the first half."

All divisions contribute positively to quarterly performance with a Group net profit of €522 m in 2Q15 (+2.0% Q/Q, +29.5% Y/Y), exceeding €1 bn in 1H15 with RoTE [1] at 5.0%.

CET1 ratio transitional rises to 10.52% (+66bps Q/Q) and including Pioneer deal reaches 10.92%. Tier 1 ratio transitional at 11.40% and Total Capital ratio transitional at 14.24%. CET1 ratio fully loaded pro-forma improves to 10.37% (including AFS reserves and Pioneer deal at 10.84%). Basel 3 Leverage ratio transitional at 4.60% and fully loaded pro-forma at 4.31%.

Group asset quality improvement accelerates in 2Q15, with gross impaired loans further down to €81.7 bn (-1.8% Q/Q). Gross bad loans reduce by -0.2% Q/Q, supported by continued disposals. Other gross impaired loans further shrink by -4.3% Q/Q, due to higher collections and back to performing. UniCredit's coverage ratio on gross impaired loans rises at 51.0%, among the highest in the Italian banking sector.

The Core Bank posts a net profit of €819 m in 2Q15, reaching €1.7 bn in 1H15, supported by net interest income growth (+1.8% Q/Q) and higher dividends (+127% Q/Q), partially offsetting increase in operating costs (+1.6% Q/Q) and LLP (+8.1% Q/Q).

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