1q05 consolidated results alessandro profumo - ceo
DESCRIPTION
1Q05 CONSOLIDATED RESULTS Alessandro Profumo - CEO. Milan - May, 12 th 2005. Solid operating performance (Operating income: +13.0% y/y and +7.6% q/q ) benefiting from good results in all Divisions. Continued volume growth (AuM: +5.2%, Loans 1 : +3.0% q/q). - PowerPoint PPT PresentationTRANSCRIPT
1Q05 CONSOLIDATED RESULTS
Alessandro Profumo - CEO
Milan - May, 12th 2005
2
1Q05 ACHIEVEMENTS CONFIRM THE GROUP’S STRATEGY
Strengthened competitive positioning in Italian banking (lending market share +5 bp, mutual funds market share +16 bp vs Dec04)
Solid operating performance (Operating income: +13.0% y/y and +7.6% q/q ) benefiting from good results in all Divisions
Headcount reduction plan well on track: -917 vs Jun04 and -427 vs Dec04 in Italy
Continued volume growth (AuM: +5.2%, Loans1: +3.0% q/q)
(1) Ex-repos
Net income up 48.7% y/y, benefiting also from “Serenissima” disposal
3
HIGH QUALITY RESULTS: ALL KPIs MOVING IN THE RIGHT DIRECTION
Total Revenues
Euro mln
2,712
693
60 bp
+1.2%
+10.5%
-3 bp
Operating Income
Net Income
1Q05 Q/Q ch.
1,209 +7.6%
55.4%C/I Ratio, %
7.36% +0 bpCore Tier I ratio
Cost of Risk, bp(1)
+9.0%
+48.7%
Y/Y ch.
+13.0%
(1) 1Q05 data annualised
Including +200 mln gain from disposal of “Serenissima” stake
Ch. on FY041Q05
32.0%Tax Rate, %
-262 bp -155 bp
+10.9 pp -5.1 pp
4
GOOD PERFORMANCE OF NET INTEREST INCOME (+7.1% Y/Y)
1Q04
New Europe
Italy
1,189
930
259
4Q04
1,304
981
323
NET INTEREST INCOME excl. dividends
1,274
986
288
1Q05
Q/Q trends
1Q05 2 days shorter than 4Q04 (gap of ~28 mln)
Italy contribution constantly up
New Europe decrease vs. 4Q mainly due to FX effect (26 mln)
+7.1%
+6.1%
+10.9%
Y/Y % ch.
Underlying y/y growth(1) would be +9.5%
(1) Y/y % ch. adjusted by “1 day effect” (91 days in 1Q04 vs. 90 days in 1Q05) and Locat securitisation effect (amounting to ~13 mln)
5
Mar04
10.79%
10.74%
INCREASED LENDING VOLUMES AND MARKET SHARE GAINS WHILE MAINTAINING PRICING PREMIUM
Retail: loan growth driven by mortgages, consumer credit and small business Corporate: up 1.4% vs Dec04 with strong contribution of m/l term (+5.22%) New Europe: +5.0% at unchanged FX with q/q increases in all banks (Pekao +2.1%,
Bulbank +14.5%, Zaba +6.2%, Koc +10.1%) Good lending spread (3.87%, up from 3.82% in Dec04) with pricing premium vs industry
(49bp)
1 Net of repos2 Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos)3 Including 3 bn mortgages securitisation
Mar05
On Total Loans 10.88%
On M/L term loans 11.133%
Dec04
10.83%
11.05%
UCI LENDING MARKET SHARE2 IN ITALYTOTAL CUSTOMER LOANS1 (bn)
Dec04
135.6 139.6
+2.8%
Corporate
New Europe +6.6%
Mar04 Mar05
126.5
Retail
3.2
12
61.1
2.0
62.9
15
58.2
63.8
+10.4%
Other +31.7%
+1.4%
50.1 56.7
14
2.7
% vs Dec04+3.0%
6
SIGNIFICANT INCREASE IN NET COMMISSIONS (+9.1% Y/Y)
115113
93
(1) Up-front on AUM and AUC referred to UniCredit Banca, UniCredit Private Banking and Xelion
Accounting data
NET COMMISSIONS (Euro mln)
Up-front(1)
Other
Weight of Up-front on Total (%)
871
13.2
1Q05
756
798
1Q04
685
14.1
4Q04
10.7
776
869
Good y/y growth mainly driven by: Fees on segregated accounts & mutual funds (excl. up-front), +33 mln Fees from investment banking activity in UBM, +25 mln
Trend q/q characterised by Increased fees from wealth management (+ 9 mln excl. up front) Lower contribution of performance fees due to seasonal effect(2) (~ –18 mln)
+9.1%
+1.8%
+10.4%
Y/Y % ch.
(2) Till year-end 2004 performance fees on long-only funds were cashed by Pioneer once a year at year-end, with a seasonal effect in 4Q. Starting from 2005 they are calculated and cashed on a quarterly basis
7
TOTAL ASSETS UNDER MANAGEMENT: AROUND 7 bn GROWTH IN JUST THREE MONTHS
UCI TOTAL AUM(bn)
Dec04
UCI mkt. share2 14.54%
… and continued gains in market share, reaching 2nd ranking
Over 3.3 bn net sales for Pioneer worldwide in 3 months (vs 1.4 bn in 1Q04)
4 months of UCI’s out-performance of the Italian market in net sales: 680 mln out of 1.2 bn for the entire System …
(2) Calculated according to the “new” classification methodology adopted by Assogestioni since January 2005
128
Mar05
135
Dec04Mar04
123
+5.2%
Leveraging on Pioneer global presence: +12 bn AUM in 12 months, of which ~7 in the international business units1
(1) US + New Markets + International (ex Italy)
No pricing pressure
Italy
International1 3438
41
89 9094
+6.5%
+4.6%
Mar05
14.67%
Apr05
14.70%
+9.4%% ch. vs Dec04
8
INCOME FROM FINANCIAL TRANSACTIONS(mln)
INCOME FROM FINANCIAL TRANSACTIONS IN LINE WITH 1Q04
Derivatives posting a strong recovery vs 4Q04 (+91.2%), mainly due to the positive seasonal effect in 1Q05 …
Of which: Derivatives
(Corporate + Institutional + Retail) 98
1Q04
292
199
4Q04
173
188
1Q05
287 -1.7%
-5.4%
… and a slight reduction vs 1Q04 (-5.4%), with stable contribution to consolidated revenues (6.9% in 1Q05)
Y/Y % ch.
9
IMPROVED COST/INCOME AT 55.4% (VS. 57% IN 1Q04)
OPERATING COSTS BREAKDOWN(mln)
Personnel costs
Other admin. Expenseso. w.: indirect taxes and duties
Depr. & amort.
1Q05
859 883
566
130
518
102
4Q04
837
475
106
1Q04
1,418
1,555 1,503 -3.3%
-8.5%
+2.8%
+6.0%
-21.5%
Q/Q trend: Operating costs down 3.3% vs. 4Q04
TOTAL COSTS
Dec04
39,85839,368
Jun04
38,941
Mar05
Staff
Other administrative expenses down 8.5% mainly due to lower marketing expenses (-18 mln)
Italy
Group 1 71,214
Q/Q % ch.
1 incl. KFS calculated on a 100% basis
70,543 70,376
-917
Y/Y growth of operating costs mainly impacted by:
higher indirect taxes and duties on other admin. expenses in 1Q05 (approx.+26% equal to 16 mln) due to the new Finance Act
increased postal and telephone tariffs (+16.1% equal to 8 mln) adjustments for 2004 MBO (16 mln) and higher provisions for the new labour contract (13 mln)
787262
10
Stated cost of risk (annualised)
Provisions on performing loans 1,376 +5.3%
Coverage ratio 0.97% +1 bp
Net Doubtful Loans 5,036 +2.8%
60 bp -3 bp
Weight on Net Loans 3.46% -3 bp
mln, where not specified
Net Non Performing Loans 2,676 +2.1%
Weight on Net Loans 1.84% -3 bp
Mar05ch. on 2004
Mar05ch. on Dec04
ASSET QUALITY: REDUCTION OF FLOWS OF NEW DOUBTFUL LOANS AND LOWER WEIGHT OF DOUBTFUL ON TOTAL LOANS
(1) Defined as: Flow from performing loans to any category of doubtful loans less Flow-back from any category of doubtful loans to performing
Limited growth of net doubtful loans (+2.8% q/q and +1.9% y/y)
Stability of coverage ratios:
Cost of risk (annualised) at 60 bp, of which 22 bp for provisions on performing loans
60.2% on NPLs (in line with Dec04)
48.1% on total doubtful (vs 48.2% as of Dec04)
1.4 bn provisions on performing loans (+70 mln vs Dec04)
4Q04 1Q05
490
NET FLOWS OF NEW DOUBTFUL LOANS1, (mln)
1Q04
508642
-3.7% Q/Q
-23.8%
0.97% on performing loans (vs 0.96% as of Dec04)
11
DIVISIONAL PERFORMANCE: GROWTH FROM ALL DIVISIONS
OPERATING INCOME BY DIVISION
y/y % ch.
543Corporate +6.5%
416Retail +40.5%
1,209TOTAL GROUP +13.0%
221New Europe +16.3%
CONTRIBUTION TO GROUP OPERATING INCOME PRE CORPORATE CENTRE AND ELISIONS
132Private & AM +32.0%
mln
17.0%
10.0%
41.3%
31.7%
RETAIL DIVISION CORPORATE DIVISION
PRIVATE & AM DIVISION NEW EUROPE DIVISION
12
RETAIL DIVISION: CONTINUED LENDING GROWTH SUSTAINING NET INTEREST INCOME GOOD PERFORMANCE
EXCELLENT LENDING GROWTH (+16.2% Y/Y) …
Mortgages +21.9% y/y (+3.9% vs. Dec04)
Consumer credit +42.5% y/y (+8.1% vs. Dec04)
Small Business +11.0% y/y (+1.2% vs. Dec04)
… AND GOOD SPREAD RESILIENCE IN ALL KEY MARKETS…
1Q average spread(1) on:
new mortgages at 1.35% for UCB (+6 bp q/q) and 1.37% for UBCasa (-6 bp q/q)
small business(2) s/term loans at 7.87% (-11 bp q/q)
revolving cards at 11.37% (+17 bp q/q)
… SUSTAINING NET INTEREST INCOME GOOD PERFORMANCE (despite the fact that 1Q05 was 2 days shorter than 4Q04)
1Q04
562
4Q04
612
NET INTEREST INCOME (ex. div.), mln
1Q05
614
(1) Management accounts(2) Management accounts, includes also maximum overdraft charges
+9.1%
13
-746 vs. June 04
RETAIL DIVISION OPERATIONAL ACHIEVEMENTS
1H04
25,467
2004
25,136
TOTAL STAFF
SLIGHT INCREASE OF OPERATING COSTS (mainly 2004 MBO adjustments and indirect taxes)
CONTINUED FOCUS ON WEALTH MANAGEMENT PRODUCTS GENERATING RECURRING REVENUES
4Q04
1.5
1Q05
1.9
SALES OF SEGR. ACCOUNTS INVESTING IN FUNDS, bn
STAFF REDUCTION WELL UNDERGOING WITH BENEFITS EXPECTED DURING THE YEAR
OPERATING COSTS, mln
FEB 05
24,721
4Q04
743
1Q05
762
EXCELLENT INCREASE IN CONTRIBUTION TO GROUP NET INCOME
CONTRIB. TO GROUP NET INCOME, mln
1Q04
127
4Q04
126
1Q05
187
14
CORPORATE DIVISION: NET INTEREST INCOME SUPPORTED BY HIGHER LENDING VOLUMES
(2) Only UBI + UBMC (Source: BankIT Matrix)
NET INTEREST INCOME (excl. dividends), (mln)
(1) Almost totally recovered as “Other income”
TOTAL LOANS (ex Repos), (bn)
Of which: M/L2
Good loan growth: around 9.0% y/y gross of securitisations, +1.4% q/q …
… with significant contribution of M/L term lending (+14.5% y/y and +5.2% q/q)
Slight reduction of lending spreads for UBI (2.27% Avg. 1Q05, -3 bp q/q)
371360 358
1Q04 4Q04 1Q05
-3.4%
-0.4% Q/Q Y/Y trend penalised by the securitisation made by Locat in 4Q04 (~13 mln1); 1Q05 in line with 1Q04 net of this effect
Q/Q trend affected by “2 days less” in 1Q05 (~6 mln only for UBI)
61.1 62.9 63.8
1Q04 4Q04 1Q05
+4.3%
+1.4% vs Dec04
23.5 25.6 27.0
+9.0% gross of securitisations
+5.2% vs Dec04
15
HIGHER SERVICE REVENUES AND IMPROVED RISK PROFILE
NET COMMISSIONS, (mln)
Foreign-trade services: 33 mln, +22.6% y/y
Transaction services: 18 mln, +7.9% y/y
Strong performance of net commissions, driven by:
NET FLOWS OF NEW DOUBTFUL LOANS1, (mln)
Default Rate2 at 0.38% vs 0.60% in 1Q04
Net flows of net doubtful loans 33% down vs 1Q04
(1) Defined as: Flow from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans(2) Defined as: (Flows from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans)/ Total Gross In
Bonis Loans as of previous 31 December
100111
129
1Q04 4Q04 1Q05
+29.3%
+16.7% Q/Q
377
253
1Q04 1Q05
-32.8%
UBM Investment Banking activities (Equity Capital Market and Leverage Finance): 39 mln vs 14 mln both in 1Q04 and 4Q04
16
Mar05
14.67%
Dec04
14.54%
Apr05
14.70%
Poland – Invest. Funds
Increased market shares:
PRIVATE & ASSET MANAGEMENT DIVISION: CONTINUED ASSETS GROWTH LEADING TO HIGHER MANAGEMENT FEES
Significant growth of Tot. Financial Assets (+11.9% y/y & +3.1% q/q up to 179 bn)
All figures at unchanged FX
Excellent net sales:
Asset Management: 3.3 bn
Asset Gathering (UPB+Xelion): 0.7 bn, of which 0.5 bn of AM products
Italy – Mutual Funds
36.14%
(1) Assoreti perimeter
TOTAL REVENUES (mln)
Up-front fees
Management & other fees
Growth of Management fees pretty in line with Total Financial Assets, no margin pressure
34.46%
Asset Management: +10.2% y/y & +3.6% q/q up to 136 bn Asset Gathering: +11.2% y/y & 1.8% q/q, up to 67 bn
Xelion: confirmed leadership in Italy1
Performance fees
Q/Q decrease of total revenues totally due to lower up-front and performance fees2
(2) Till year-end 2004 performance fees on long-only funds were cashed by Pioneer once a year at year-end, with a seasonal effect in 4Q. Starting from 2005 they are calculated and cashed on a quarterly basis
4Q04
341312 -8.7%
+4.9%
1Q04 1Q05
280
216
136
225
42
26
236
822
+11.4%
+9.3%
Q/Q % ch.
Net Interest & other Income 45
4846
17
FURTHER EFFICIENCY GAINS SUPPORTING PROFITABILITY
All figures at unchanged FX
Operating Income:
Net income at 97 mln, +45% y/y; 35% reduction vs 4Q, which benefited from ~47 mln tax-free extraordinary gains
C/I RATIO, %
OPERATING INCOME (mln)
4Q04 1Q05
57.7
1Q04
59.864.8-210bp q/q
-710bp Improved efficiency, thanks to:
Leverage on economies on scale
Cost control: 1Q05 operating costs at 180 mln, in line with 1Q04 and 12% lower than 4Q04
4Q04 1Q05
132
1Q04
13798
-4.3% q/q
+33.4%
Excellent y/y performance: +33.4%
Slight q/q decrease directly linked to lower up-front and performance fees
18
STRONG LENDING GROWTH: +15.9% Y/Y (+24.1% at current FX)
INCREASED MUTUAL FUND BUSINESS WITH POSITIVE IMPACT ON REVENUES
All figures stated at unchanged FX
(1) Management accounts in LASITAS
Mortgages(1) (Euro mln) Leasing (Euro mln) Consumer credit(1) (Euro mln)
Mutual Funds(2) (Euro mln) Net non interest income
(Euro mln)Market share (PPIM(3))
NEW EUROPE DIVISION: STRONG VOLUME GROWTH SUPPORTING REVENUES
(3) Pioneer Pekao Investment Management
(2) New Europe Business Area of Pioneer is included at current FX
1Q05
2,139
4Q04
2,2031,753
1Q04 1Q05
398
4Q04
439299
1Q04 1Q05
1,557
4Q04
1,6241,297
1Q04
1Q05
4,865
4Q04
5,6164,179
1Q04 1Q05
179
4Q04
183167
1Q04 1Q05
34.5
4Q04
36.131.9
1Q04
+25.7% +46.6% +25.2%
+34.4% +10.0% 4.2 pp
19(1) 1Q05 data annualised
ASSET QUALITY STILL IMPROVING
NET INCOME BENEFITS FROM LOWER PROVISION NEEDS
BETTER OPERATING INCOME: +12.1% Q/Q, +8.3% Y/Y
ITAS
Total Revenues (Euro mln) Cost/income (%)
Cost of risk(1) (bp) Coverage ratio of doubtful loans
Attributable Net income (Euro mln)
STRONG NET INCOME, ENHANCED EFFICIENCY AND BETTER ASSET QUALITY
All figures stated at unchanged FX
1Q05
481
4Q04
475442
1Q04
1Q05
70.7
4Q04
71.966.0
1Q04
1Q05
99
4Q04
10386
1Q04
1Q05
58.8
4Q04
53.553.8
1Q04
1Q05
89
FY04
78
Net Provisions on loans (Euro mln)
1Q05
26
4Q04
2936
1Q04
+19.8%-19.8%
-11 bp +5.9 pp
-0.3 pp+7.5%
20
THE ACQUISITION OF YAPI REPRESENTS A FURTHER STEP FORWARD, ALLOWING KFS TO REACH A SIGNIFICANT POSITION IN A LARGE HIGH-GROWTH COUNTRY
UCI entered the Turkish market in October 2002 via a JV: Turkey was at the time among the NE countries with lower presence of foreign banks (~7% of total assets)
Since the JV, KFS:
Implemented a thorough client segmentation
Upgraded its IT system
Acquired over 400,000 new clients
Opened 40 new branches, increasing its network size by 28%
Achieved positive results with ROE steadily at ~ 25% and Cost / Income < 45%
KFS is currently the 8th Turkish bank by total assets, 3rd in Asset Management and market leader in Leasing and Factoring
UCI IN TURKEY: TIMELY ENTRANCE, SUCCESSFUL JOINT VENTURE NOW AIMING AT LEADERSHIP WITH THE ACQUISITION OF YKB
21
YKB: STRATEGIC RATIONALE
Significant scale (top three privately owned banking groups in Turkey)
Successful experience of UCI’s partnership with Koç Group
Strong operational fit with KFS: distribution and production platforms with leading positions in most strategic business areas
KFS & YAPI WILL CREATE:
1ST IN CREDIT CARDS
1ST IN ASSET MANAGEMENT
1ST IN LEASING
1ST IN FACTORING
3RD PRIVATELY OWNED BANK IN TURKEY BY ASSET SIZE
3RD BY DEPOSITS
Acquisition in a large country with substantial growth potential
22
KFS (50/50 UCI- Koc Group) to acquire 57.42% of Yapi from Çukurova
KFS, after deal closing and the relevant approval, will launch a tender offer for all YKB remaining shares
Terms of the offer:
Price for 57.42% Euro 1,160 mln (implied value for 100%: 2,021mln), subject to price adjustment for the market value of the participation of Turkcell at the time of closing
Çukurova to restructure its exposure to YKB, to be given the right to acquire YKB participation in Turkcell and to purchase YKB stakes in Fintur, Digiturk and Superonline
Offer subordinated to the approval of all relevant authorities and realisation of certain condition precedents
YKB: DEAL STRUCTURE
1Q05 RESULTS - ANNEXES
24
AGENDA
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
25 (1) Net write-downs of financial investments, provisions for risks and charges,
provisions for possible loan losses and provisions to reserve for general banking risk
1Q05 CONSOLIDATED INCOME STATEMENT
Net extraordinary income
Net non interest income
Total revenues
Operating income
Provisions on loans
Administrative costs (incl. depr.)
Other net provisions(1)
Goodwill depr.
(Euro mln)
Minorities
Taxes
% ch. on 1Q04
Net interest income (incl. div.)
- of which Dividends
+9.1
+9.0
+11.5
n.m.
+6.0
+13.0
n.m.
-1.4
+23.7
+17.6
+8.9
% ch. on 4Q04 1Q05
1,413
2,712
-1,503
1,209
-214
207
-44
-70
-47
-348
1,299
25
+10.6
+1.2
-7.4
n.m.
-3.3
+7.6
n.m.
+14.8
+38.2
n.m.
-7.3
-74.5 n.m.
Net income +48.7693 +10.5
26
Retail Division
Corporate Division
Priv.& AM Division
NE Division
Total Group(1)
Total revenues+1.8% +17.5% -3.8% -10.1% +1.2%
Operating costs
Operating income
Net write-downs of loans
Net income for the Group
C/I Ratio
+2.6% -4.7% -6.7% -18.1% -3.3%
+0.5% +29.6% +0.8% +1.1% +7.6%
-0.6% -8.3% n.m. -2.8% -7.4%
+48.5% +17.8% -32.2% -1.9% +10.5%
+0.5 pp -6.8 pp -1.9 pp -5.2 pp -2.6 pp
(1) Balance due to the Parent Company, other Group companies and elisions
(2) Calculated on data at end of period FX
(Euro mln - Data at end of period FX)
DIVISIONAL CONTRIBUTION TO CONSOLIDATED RESULTS IN 1Q05
1,178 764 312 475 2,712
-762 -221 -180 -254 -1,503
417 543 132 221 1,209
-84 -96 0 -29 -214
187 251 97 103 693
64.7% 28.9% 57.7% 53.4% 55.4%
(3) Including all the employees of Koc Financial Services (4,134 as at 31.03.2005)
Employees(3) 24,721 5,269 3,574 29,778 70,376
1Q05 RESULTS
% Change vs 4Q04(2)
% Change vs 4Q04(2)
% Change vs 4Q04(2)
% Change vs 4Q04(2)
% Change vs 4Q04(2)
Change in pp vs 4Q04(2)
27
NON OPERATING ITEMS
Operating income
Goodwill amort.
Net Income
Net write-downs of loans
Other net provisions(1)
Net extraord. income
Taxes
Minorities
4Q04
1,124
-61
627
-231
-221
61
-141
-34
1Q04
1,070
-71
466
-192
-9
2
-296
-38
1,209
-70
693
1Q05
-214
-44
207
-348
-47
(1) Net write-downs of financial investments & provisions for risks and charges
Reserve for general bkg risk +130 --
28
-on tot. Gross doubtful loans, % 38.2% 35.3% 48.2%70.8%38.6% 33.5% 71.9% 48.1%
-on total gross NPL, % 48.7% 40.1% 84.8% 60.2%48.7% 39.5% 85.1% 60.2%
Total gross doubtful loans 3,536 2,722 3,040 9,469+0.2% +2.4%
Net Doubtful Loans/Tot. Net Loans,% 3.49%3.86% 2.60% 6.32%
3,620
3.82%
+2.4% +5.0%2,858
2.73%
3,047
5.71%
9,695
3.46%
% change on Dec 04
Gross Doubtful Loans/Tot. Gr. Loans,% 6.47%6.06% 3.93% 18.5%6.04% 4.01% 17.5% 6.40%
Total net doubtful loans 2,185 1,762 888 4,901-3.7% +2.8%
2,223+1.7% +7.9%
1,901 855 5,036% change on Dec 04
ASSET QUALITY: DETAILS BY DIVISIONS
Coverage ratios
Retail Division
Dec 04 Mar 05
1 Balance due to other Group companies
(mln - Data at end of period FX)
Corporate Division
NE Division Total Group 1
Gross NPL
% change on Dec 04
Gross NPL/Tot. Gr. Loans,%
Net NPL/Tot. Net Loans,%
2,153 1,8582,45
06,586
+1.6% +2.0%
3.69% 2.68% 14.9% 4.50%
1.95% 1.65% 2.66% 1.87%
2,236
3.73%
1.97%
+3.8% +0.4%
1,866
2.62%
1.62%
2,489
14.3%
2.48%
6,716
4.43%
1.84%
Net NPL
% change on Dec 04
1,105 1,114 373 2,621
-0.5% +2.1%
1,146
+3.8% +1.4%
1,130 371 2,676
Dec 04 Mar 05 Dec 04 Mar 05 Dec 04 Mar 05
29
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
AGENDA
30
RETAIL DIVISION: P&L
Interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Net operating income
Net income
Cost/income ratio, %
Q/q% ch.
1Q05
Net provisions
mln
Net income for the Group(2)
Y/y% ch.
- of which: Staff costs
- of which: Other adm. expenses
- o/w: Net write-down of loans
627
552
1,178
-762
417
188
64.7
187
-403
-342
-84
-95
+2.1
+1.6
+1.8
+2.6
+0.5
+48.4
+46 bp
+48.5
+3.9
+2.3
-0.6
-13.4
+11.4
+21.7
+16.0
+5.9
+40.5
+47.7
-616 bp
+47.7
+4.5
+9.0
+50.3
+52.2
Net extraordinary income (loss) -1 n.m. n.m.
31
Interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Net operating income
Net income
Cost/income ratio, %
TOTAL(1)Banca d. Umbria
UniCredit Banca
Net provisions
mln
Net income for the Group(2)
UBCasa
- of which: Staff costs
- of which: Other costs
Clarima
RETAIL DIVISION: 1Q05 RESULTS BREAKDOWN BY COMPANY
- o/w: Net write-down of loans
512
513
1,025
-695
330
143
68.0
140
-375
-305
-61
-71
28
18
46
-25
21
10
53.7
10
-13
-11
-3
-4
32
2
34
-17
17
7
49.5
8
-6
-11
-7
-7
36
13
49
-17
32
12
35.0
12
-5
-12
-13
-13
(1) Balance due to rounding and elisions of infragroup dividends and goodwill amortisation
CR Carpi
9
6
15
-8
7
4
56.2
4
-4
-4
-
-
(2) Net of consolidation adjustments and minorities
Net extraordinary income (loss) -1 - -1 - -
627
552
1,178
-762
417
188
64.7
187
-403
-342
-84
-95
-1
32
1.2 1.4
RETAIL DIVISION - MORTGAGES AND CONSUMER FINANCING
RESIDENTIAL MORTGAGESSTOCK, bn NEW FLOWS, bn
CONSUMER FINANCING1Q04 1Q05
27.5
33.5 +21.9%
NEW FLOWS OF PERSONAL LOANS, mln
1Q04 1Q05
52 mln66 mln
REVOLVING CARDS TOTAL SPENDING(2) (+67k revolving cards in 1Q05)
DEC04
32.2
mkt share(1)
17.40%17.71% 17.75%
(1) Group market share, related to mortgages to households as of Bank of Italy definition in table TDME0070 of the monthly bulletin
(2) POS and ATM spending
1Q04 1Q05
183
350
+91%
1Q04 1Q05
1.81.8
+3.4%
0.50.5
UCB
UBCasa
+12.6%
-13.5%
STOCK, bn
1Q04 1Q05
2.1
3.0+42.5%
DEC04
2.8
33
RETAIL DIVISION - SMALL BUSINESS STOCK, SPREAD AND CUSTOMER ACQUISITION
STOCK, bn
1Q052004
SHORT TERM SPREAD(1)
1Q04
(1) Management accounts, includes also maximum overdraft charges
16.6 16.8
+1.2% 8.08%7.96%
2Q04
7.98%
3Q04
7.98%
4Q04
7.87%
1Q04
18,000
2Q04
19,000
3Q04
15,000
4Q04
17,500
QUARTERLY TRENDS IN SMALL BUSINESS CUSTOMER ACQUISITION
1Q05
1Q05
17,000
34
RETAIL DIVISION - CUSTOMER LOANS AND CUSTOMER DEPOSITS BREAKDOWN AND DETAILS OF SHORT TERM SPREADS
SB loans (1)
Residential mortgages (2)
Cons. creditOther loans
EOP LOANS, Euro bn
UCB AVG. MARK UP(4) (Households), %
Other deposits
Households c/accounts
Bonds
EOP DEPOSITS, Euro bn UCB AVG. MARK-DOWN(4) (Households), %
4Q041Q04
4Q041Q04
+8.1%
(1) Includes short term and m/l term loans(2) Includes only households mortgages
+17.3%
+9.7%
+31.8%-6.4%
+5.8%
-2.0%
+7.7%
50.1
27.5
15.1
2.15.4
64.1
21.5
15.4
27.2
UCB AVG. MARK UP(4) (Small Business), %
7.03
1Q04
1.65
5.60
1Q05
1Q05
58.2
66.9
33.5
21.8
16.8
3.04.9
15.7
29.4
+13.1%
+3.9%
+1.2%
+8.1%-2.7%
-4.5%
+4.4%
+0.5%
+4.7%
7.08
2Q04
1.65
5.47
(3) Including ANBI(4) Source: Bank of Italy matrix data
56.7
67.2
32.2
22.8
16.6
2.85.0
15.1
29.3
7.33
3Q04
1.67
5.55
-0.3%
7.21
4Q04
1.71
5.42
1Q04 2Q04 3Q04 4Q04
1Q04 2Q04 3Q04 4Q04
7.27
1Q05
1.70
5.43
1Q05
1Q05
35
RETAIL DIVISION - NET COMMISSIONS
RETAIL DIVISION: NET COMMISSIONS
mln
Securities in custody
TOTAL RETAIL DIVISION
Total Commissions from Wealth Management
- Mutual funds (1)
- Segregated Accounts (2)
Other services
- Insurance Products (3)
Breakdown by nature
(1) Includes subscription and management fees from Plain Vanilla Mutual Funds(2) Includes management fees related to underlying Mutual Funds. Net commissions related to Focus Invest do no impact consolidated results
Y/y% ch.
+65.3
+27.9
+20.4
-24.3
n.m.
+19.0
+4.2
1Q05
89
386
179
45
53
119
81
(3) Includes management fees related to underlying Mutual Funds
Q/q% ch.
-9.2
+0.1
+12.3
+18.0
+17.6
-8.0
+6.3
36
RETAIL DIVISION - DETAILS ON ASSET QUALITY
Provisions on performing loans 327 +3.6%
Coverage ratio 0.58% - bp
Net Doubtful Loans 2,223 +1.7%
Weight on Net Loans 3.82% -4 bp
mln, where not specified
Net Non Performing Loans 1,146 +3.8%
Weight on Net Loans 1.97% +2 bp
Cost of risk(1) 58 bp +8 bp
1Q05ch. on
Dec. 04
1Q05ch. on 2004
(1) Annualised
-16.4%
1Q04 1Q05
240
200
REDUCTION OF NET FLOWS OF NEW DOUBTFUL LOANS(2) VS. 1Q04
(2) Defined as: Flow from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans
37
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
AGENDA
38
CORPORATE DIVISION: 1Q05 INCOME STATEMENT- BREAKDOWN BY COMPANY
Net Interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Net operating income
Net income
TOTAL1UBI
Net provisions
(Euro mln)
Net income for the group
- of which: Staff costs
- of which: Other admin. expenses
Other companies
- o/w: Net write-downs of loans
322
145
467
332
-57
-77
-135
129
128
28.9%Cost/income Ratio
-90
-112
UBM LOCAT
-13
219
206
151
-24
-29
-56
92
92
27.0%
-
-
33
25
58
44
-5
-8
-13
21
21
23.1%
-7
-7
20
13
33
16
-10
-8
-17
9
11
51.6%
-
-1
362
402
764
543
-95
-122
-221
251
251
28.9%
-96
-121
1 Balance due to roundings and elisions of infragroup dividends and goodwill amortisation
39
CORPORATE DIVISION: 1Q05 INCOME STATEMENT
Net interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. depr.)
Operating income
Net income
Total net provisions
Taxes
Net income for the group
Cost Income ratio, %
(Euro mln) 1Q05/4Q04 % ch. 1Q05
764
-221
543
-171
28.9%
-121
251
251
362
402
1Q05/1Q04 % ch.
+17.4
-4.7
+29.6
n.s.
-666bp
-22.9
+17.3
+20.1
-0.8
+40.6
+5.5
+3.3
+6.5
+6.2
-61bp
+13.1
+4.1
+3.7
-2.7
+14.2
40
CORPORATE DIVISION - DETAILS ON ASSET QUALITY
1Q05ch. on 2004
Provisions on performing loans 747 +7.2%
Coverage ratio 1.09% +4 bp
Net Doubtful Loans 1,901 +7.9%
Cost of risk (annualised) 56 bp -14 bp
Weight on Net Loans 2.73% +13 bp
mln, where not specified
Net Non Performing Loans 1,130 +1.4%
Weight on Net Loans 1.62% -3 bp
Mar05ch. on Dec04
(1) Defined as: Flow from in bonis loans to any category of doubtful loans less Flow-back from any category of doubtful loans to in bonis loans
NET FLOWS OF NEW DOUBTFUL LOANS1, (mln)
377
253
1Q04 1Q05
-32.8%
41
(Euro mln)
Net interest income 322
Net income for the group
Cost Income RATIO, %
128
28.9%
Net non interest income 145
Total revenues
Operating costs
Operating income
467
-135
332
Net write-downs of loans
Other net provisions
-90
-22
Of which:
97
- Trading profits 47
- Net commissions
UNICREDIT BANCA D’IMPRESA: 1Q05 INCOME STATEMENT
1Q05/4Q04 % ch. 1Q05 1Q05/1Q04
% ch.
-1.3
-3.0
+43 bp
-7.0
-3.1
-1.7
-3.7
-10.2
-54.5
-5.4
+15.6
+0.8
-3.1
+13 bp
+5.4
+2.2
+2.6
+2.0
-9.7
n.s.
+7.2
+3.1
42
UBM: 1Q05 INCOME STATEMENT
(Euro mln)
Total revenues
Staff costs
Other costs (incl. depr.)
Operating income
Net income
C/I Ratio
206
-29
-26
151
92
27.0%
Net extraord. income 1
Taxes -59
1Q05/4Q04 % ch. 1Q05 1Q05/1Q04
% ch.
+156.8
+24.8
-26.3
n.s.
n.s.
vs. 73.6%
-91.1
n.s.
+8.7
+2.7
+1.2
+11.4
+11.2
-177 bp
-59.1
10.2
Net interest income (incl. div.)
Net non interest income
-13
219
-16.3
+129.2
+68.9
+11.0
Avg. daily VAR 1
1 Pls. note that the comparison with 1q04 is not significant as UBM did not included TradingLab, merged in UBM from July 1st, 2004
3.6 -8.1 n.s.
43
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
AGENDA
44
PRIVATE & AM DIVISION: 1Q05 INCOME STATEMENT – BREAKDOWN BY COMPANY
Net interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Operating income
Net income
Cost/Income Ratio
Total net provisions
Net income for the group
- of which: Staff costs
- of which: other admin. expenses
(Euro mln)
Net extraordinary income
TOTAL DIVISION1
27
285
312
-180
-86
-88
132
-2
100
97
57.7%
-
UPB +
Subsidiaries
18
67
85
-55
-33
-21
30
-1
27
13
64.4%
10
4
202
206
-94
-48
-44
112
-
62
8645.8
%
-
3
15
19
-29
-5
-23
-11
-1
-9
-7
n.s.
-
PGAM Group UniCredit Xelion Banca
2
1
3
-2
-1
-1
1
-
20
5
n.s.
-10
Other Companies
1 Balance due to roundings and elisions of infragroup dividends and goodwill amortisation
45
PRIVATE & AM DIVISION: 1Q05 INCOME STATEMENT
Net interest income (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. depr.)
Operating income
Net income
Total net provisions
Taxes
Net income for the Group
Cost Income ratio, %
1Q05/4Q04 % ch. 1Q05
312
-180
132
-30
57.7%
-2
97
100
27
285
1Q05/1Q04 % ch.
-8.7
-11.6
-4.3
+86.4
-193 bp
-95.2
-34.8
-33.5
-0.8
-9.4
+11.4
-0.5
+33.4
+4.5
-695 bp
+12.9
+44.9
+47.4
+7.7
+11.8
(Euro mln - Data at current FX, % ch. at fixed FX)
46
PRIVATE & AM DIVISION: DETAILS ON TOTAL FINANCIAL ASSETS Y/Y AND Q/Q TRENDS
(bn - Data at end of period FX)
Securities in custody
Direct deposits1
AUMs
PRIVATE & AM DIVISION TOTAL FINANCIAL ASSETS
+3.9% q/q
Mar04
5.8
25.6
129.6
6.9
29.3
135.7
161.0171.9
6.8
29.9
141.9
178.6
Dec04 Mar051 Including Repos
+10.9%
+11.9% at fixed FX
+3.1% q/q at fixed FX
471 Balance due to roundings
Italy
New Markets
92,809
3,885
TOTAL PIONEER
Alternative Investments
129,614
3,830
2,356
382
3,331
213
US 25,032 -25
International (ex-Italy) 7,889 617
AuM as at 31.12.2004
US in USD 34,096 -31
96,417
4,358
135,587
4,166
25,947
8,864
AuM as at 31.03.20051
33,638
AuM as at 30.4.20052
97,123
25,327
8,641
4,266
135,357
4,226
32,816
1Q05 Net sales
PIONEER GROUP: DETAILS ON NET SALES AND AUM TREND (Dec04-Apr05)
2 Provisional figures; balance due to Market Performance (including FX effect)
1,253
91
2,642
123
940
358
-428
156
74
212
143
-103
85
-133
Net sales Apr.05
1Q05 Mkt. Perf. (mln - Data at end of period FX)
48
Finanza & Futuro
Rasbank
Credem + Euromob.
7,049Credem + Euromob.
1 Calculated on average PFAs2 AUMs, Securities in Custody, Bancassurance and liquidity3 Ranking taking into account only the 10 major Italian players by Total Financial Assets as at 31.3.20054 Including Banca Generali + SIMGENIA Sim
Source: Assoreti
Net Inflows:455 Mln,2nd in Italy
Data as at 31.3.2005 – Mln
TOTAL NET INFLOWS 2 & 3
Xelion 455
354
Generali Group4
319
268
Credem + Euromob. 119
Rasbank
78Fineco
66
Finanza & Futuro -44
Fideuram + SPI
-28
Data as at 31.3.2005
2,023 PFAs,5th in Italy
NUMBER OF PFAs
Fideuram + SPI
4,966
Rasbank
4,207
4,015
Generali Group4
3,723
Finanza & Futuro 1,122
1,076
Tot. Fin. Assets:~12.6 bn,5th in Italy
Data as at 31.3.2005 – Mln
TOTAL FINANCIAL ASSETS
Fideuram + SPI 59,887
Mediolanum 21,454
Rasbank 20,367
9,206Azimut
7,843
Credit Suisse 7,1235
Xelion 12,565
16,055
Fineco 6,632
Net Inflows per PFA1:2rd among Top-
Players
Data as at 31.3.2005 – Mln
NET INFLOWS PER PFA 2 & 3
Azimut 0.30
Xelion 0.22
0.11Credem + Euromob.
0.09
0.08
Generali Group4
0.08
Finanza & Futuro
0.02
-0.04
Fideuram + SPI
-0.09
Mediolanum
0.05
ASSORETI PERIMETER, RANKING BY GROUP: XELION, STRONG NET SALES (17.2% MARKET SHARE) AND HIGH PRODUCTIVITY PER PFA
Mediolanum
Xelion 2,023
Banca SAI 1,471
Azimut
Generali Group4
Fineco 1,451
Bipielle Network 1,168
Fineco
Credit Suisse
459
Mediolanum
Credit Suisse
5 Data as of 31.12.2004 (data as of 31.3.2005 not disclosed)
49
Group
Divisional Reporting
Retail Division
Corporate Division
Private & AM Division
New Europe Division
AGENDA
50
Tax Rate (%) -4.2 pp21.2 +2.1 pp
ROE (%)
Cost/Income ratio (%) -0.3 pp53.5 -5.3 pp
17.0 +0.9 ppy/y ch.
2.9%(1)
2.1%(1)
(Euro mln)
Net interest income(2)
Net non interest income
Total revenues
Operating Costs(3)
Operating income
Net write-down of loans
Net extraordinary income
Net income
Other net provisions(4)
Taxes
(4) Including provisions to reserve for general banking risk
(2) Including dividends(3) Including depreciation
%ch. at unchanged FX
7.3%(1)
41.4%(1)
21.0%(1)
20.9%(1)
(1) Weight of the bank Total Revenues in 1Q05 on Division Total Revenues – only UCI’s portion; balance due to UniLeasing Romania and Xelion Poland
Net income for the Group
NEW EUROPE DIVISION % ch. on 1Q04
+6.2
+10.0
+7.5
+6.7
+8.3
-19.8
-
+18.1
n.m.
-4.7
+19.83.8%(1)
BREAKDOWNOF REVENUES
ITAS
1Q05
292
183
475
-254
221
-29
3
150
-5
-41
103
% ch. on 4Q04
-3.4
+3.0
-1.0
-10.2
+12.1
+11.4
-86.2
+4.0
-67.5
+18.8
+6.2
NEW EUROPE DIVISION: 1Q05 INCOME STATEMENT
51
NEW EUROPE DIVISION: 1Q05 TREND IN VOLUMES
ITAS
% ch. on
Dec04
Mar05(Euro mln)
% ch. on
Mar04
Net Customer Loans
- o/w Pekao
Mortgages(1)
+5.0
+2.1
+15.9
+6.4
+3.0 +25.7
14,987
6,395
2,203
- o/w Pekao LC +6.3 +71.3600
- o/w Pekao
Mutual Funds(2)
+1.3 -5.8
+15.4 +34.4
Deposits -0.4 +4.323,200
10,819
5,616
- o/w Pekao(3) +13.3 +30.63,612
NET CUSTOMER LOANS 1Q05/4Q04: Bulbank +14.5%, KFS
+10.1%, Zaba +6.2% Mar05/Mar04: Bulbank +77.3%, KFS
+47.0%, Zaba +14.5%
(3) Pioneer Pekao Investment Management
At unchanged FX
MUTUAL FUNDS in PEKAO: Market share(3): to 36.1 up 4.2 pp y/y
(1) Management accounts in LAS
(2) New Europe Business Area of Pioneer is included at current FX
52
NEW EUROPE ASSET QUALITY
Net NPLs and Doubtful Loans as % of Total Net Loans 84.8
Dec04 Mar05
85.1
70.8 71.9
Coverage ratios
On Gross Doubtful Loans
On Gross NPLs
Net NPL/ Loans %
Mar05
Total NE -0.62.5
ch. on Dec04 (pp)
Net Doubtful/Loans %
Mar05
ch. on Dec04 (pp)
5.7-0.2
At unchanged FX
Zaba -0.31.9 2.9-0.2
Unibanka -0.43.0 5.5-0.1
Pekao -0.63.6 7.3-0.1
Bulbank 0.1 -0.21.5-
KFS -0.82.0 4.5-0.6
Cost of risk(1)
-11 bp
(bp, annualised)
89
78
1Q05FY04
(1) Calculated as Net Loan Loss Provisions on Net Customer Loans at period-end. 1Q05 data annualised
ITAS
53
Interest margin (incl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Net operating income
Net income
ROE
Cost/income
TOTAL(1)
292
183
475
-254
221
150
17.0%
53.5%
Net provisions -33
(1) Balance due to roundings and other small companies
(Euro mln)
(UCI stake)
Net income(3) (UCI’s portion) 103
- of which: Staff costs -129
- of which: Other costs -89
NEW EUROPE DIVISION: 1Q05 RESULTS BREAKDOWN BY BANK
- o/w: Net write-down of loans -29
UNI BANKA (77.2%)
5
7
12
-9
3
4
16.7%
76%
-1
3
-5
-4
-1
BULBANK (86.1%)
18
10
28
-9
19
19.3%
33%
-3
14
12
-4
-3
-2
Group PEKAO (53.0%)
140
114
255
-138
116
16.7%
54%
80
-15
46
-71
-48
-15
63
20
83
-49
35
23
13.3%
58%
-6
19
Group ZABA
(81.9%)
-27
-15
-3
5
2
7
-6
1
1
7.1%
86%
-3
-3
-
1
-
52
16
68
-28
40
22
23.9%
42%
-14
-11
-8
22
KFS(2) (50.0%)
-7
(2) Consolidated with proportional method (50%)
8
5
13
-10
3
1
4.7%
78%
-5
-4
-1
1
Zivno (96.6%)
-1
UniCredit Romania (99.9%)
ITAS
Banks’ data gross of consolidation adjustment
(3) Net of consolidation adjustment
54
NET INCOME FOR THE GROUP
y/y % ch.
46Pekao +20.9%
19Zaba -21.7%
NE Division
22KFS +61.2%
16Others +56.4%
STRONG NET INCOME GROWTH AND VALUE OF A DIVERSIFIED PORTFOLIO
PEKAO Significant lending growth: +6.4% y/y, +2.1% q/q (o/w
mortgages(1) +71% y/y, +6.3% q/q), with positive impact on net interest income (+1.4% y/y)
Strong performance in Mutual Funds(2): +30.6% y/y, +13.3% q/q with even higher market share (to 36.1%(4))
Good cost management: +0.5% y/y
Decreased cost of risk: to 94 bp(5), -25 bp on FY04
ZABA Net income (-5 mln y/y) mainly due to pressure on spreads,
new accounting for up-front fees, and FX loss linked to Kuna appreciation (+3% in 1Q05)
Further lending growth: net loans +14.5% y/y, +6.2% q/q (o/w mortgages(6) +17.6% y/y, +1% q/q)
Improvement in Mutual Funds: +74% y/y, +21% q/q
KFS Strong lending growth: net loans +47.0% y/y, +10.1% q/q
Lower negative impact of monetary loss (+9 mln y/y)
Focus on retail products: Mutual Funds +6% y/y, +7% q/q; ~59,000 cards and ~8,000 C/A packages sold in 1Q05
(1) Management accounts in LAS, only LC(2) Pioneer Pekao Investment Management
All figures stated at unchanged FX
103 +19.8(3)%
(3) +25.9% at current FX
(4) Pioneer Pekao Investment Management (5) 1Q05 data annualised(6) Management accounts in LAS, only bank
55
% ch. on 1Q04(4)
+2.2
+0.6
+1.5
+.5
+2.7
-36.6
n.m.
+12.5
n.m.
+6.5
+20.9
-0.9 pp
1Q05
140
114
255
-138
116
-15
-
80
-
-22
46
21%
% ch. on 4Q04(4)
-5.8
-3.6
-4.9
-4.7
-5.1
-26.4
n.m.
-12.5
n.m.
+0.6
+12.3
+2.2 pp
-52 bp54% +11 bp
CONSOLIDATED INCOME STATEMENT: PEKAO
(3) Including provisions to reserve for general banking risk
(1) Including dividends(2) Including depreciations
(4) At unchanged FX
(Euro mln)
Net interest income(1)
Net non interest income
Total revenues
Operating costs(2)
Operating income
Net write-down of loans
Net extraordinary income
Net income
Other net provisions(3)
Taxes
ITAS
Data gross of consolidation adjustment
Net income for the Group(5)
(5) Net of consolidation adjustment
Cost/Income
Tax Rate
56
(3) Including provisions to reserve for general banking risk
(1) Including dividends(2) Including depreciations
(4) At unchanged FX
CONSOLIDATED INCOME STATEMENT: ZAGREBACKA
ITAS
(Euro mln)
Net interest income(1)
Net non interest income
Total revenues
Operating costs(2)
Operating income
Net write-down of loans
Net extraordinary income
Net income
Other net provisions(3)
Taxes
Net income for the Group
% ch.(4) on 1Q041Q05
63
20
83
-49
35
-3
-
23
-2
-6
19
% ch. on 4Q04(4)
-20.2
-5.5
-17.1
-13.6
-21.4
n.m.
n.m.
-40.3
-54.7
-42.2
-40.1
+0.2
-21.2
-6.0
+3.2
-16.7
-47.5
n.m.
-22.4
n.m.
-10.7
-21.7
Data gross of consolidation adjustment (excluding Net Income for the Group that is net)
57
TURKEY: POSITIVE OUTLOOK, PROGRESS ON EU RELATIONS
Population: 72.4 mln (2004)
Indebtedness of Individuals: 7% of GDP (2004f)
S&P country rating: BB-/Stable
Real GDP y/y % growthInflation (CPI) y/y, DecInflation (WPI), y/y, DecReference rate (eop)Exchange Rate (eop)
8.99.3
13.818.0
1.8321
2004
6.08.08.0
13.51.8657
2005f
Source: NE division research network
Loans -o/w retail-o/w corporate
52.1107.742.9
2004e
35.354.429.7
2005f
Deposits -o/w retail-o/w corporate
25.623.534.9
18.617.023.3
Mutual Funds 22.2 35.6
Strong growth driven by investment and personal consumption
Disinflation process will continue
Monetary policy will be accommodating with rate cuts
Loans mainly driven by declining interest rates; Deposits mainly driven by Corporate side
MACROECONOMIC DATA BANKING SECTOR
y/y % growth