The UBI Banca Group Consolidated Results as at 30th June 2014

8th August 2014

Disclaimer

This document has been prepared by Unione di Banche Italiane Scpa ("UBI") for informational purposes only and for use in the presentation ofAugust 2014. It is not permitted to publish, transmit or otherwise reproduce this document, in whole or in part, in any format, to any third partywithout the express written consent of UBI and it is not permitted to alter, manipulate, obscure or take out of context any information set out inthe documentthe document.

The information, opinions, estimates and forecasts contained herein have not been independently verified and are subject to change withoutnotice. They have been obtained from, or are based upon, sources we believe to be reliable but UBI makes no representation (eitherexpressed or implied) or warranty on their completeness, timeliness or accuracy. Nothing contained in this document or expressed during thepresentation constitutes financial legal tax or other advice nor should any investment or any other decision be solely based on thispresentation constitutes financial, legal, tax or other advice, nor should any investment or any other decision be solely based on thisdocument.This document does not constitute a solicitation, offer, invitation or recommendation to purchase, subscribe or sell for any investmentinstruments, to effect any transaction, or to conclude any legal act of any kind whatsoever.This document contains statements that are forward-looking: such statements are based upon the current beliefs and expectations of UBI andare subject to significant risks and uncertainties These risks and uncertainties many of which are outside the control of UBI could cause theare subject to significant risks and uncertainties. These risks and uncertainties, many of which are outside the control of UBI, could cause theresults of UBI to differ materially from those set forth in such forward looking statements.Under no circumstances will UBI or its affiliates, representatives, directors, officers and employees have any liability whatsoever (in negligenceor otherwise) for any loss or damage howsoever arising from any use of this document or its contents or otherwise arising in connection withthe document or the above mentioned presentation.For further information about the UBI Group, please refer to publicly available information, including Annual, Quarterly and Interim Reports.By receiving this document you agree to be bound by the foregoing limitations.Please be informed that some of the managers of UBI involved in the drawing up and in the presentation of data contained in this documenteither participated in a stock option plan and were therefore assigned stock of the company or possess stock of the bank otherwise acquired.The disclosure relating to shareholdings of top management is available in the annual reportsThe disclosure relating to shareholdings of top management is available in the annual reports.

Methodology

The “notes on the reclassified financial statements” contained in the periodic financial reports of the Group may be consulted for a fullercomprehension of the rules followed in preparing the reclassified financial statements.

2

Executive summary: strong balance sheet ratio confirmed

BASEL 3 CAPITAL RATIOS phased-in JUNE ‘14 CET 1 (fully loaded)

CAPITAL INDICATORS 18 0%

CET 1 pro-forma: fullyloading the new regulatoryf k t M h d

11.2% 11.7%~10.9%12.7%

18.0% framework to March andJune ‘14 data

CET 1 at regime: fullyapplying the new regulatoryframework and including aprudential approach to credit

Mar '14pro-forma

(excl. profit)

June '14pro-forma

June '14 fully loaded at regime

CET 1 TOTAL CAPITALRATIO

12.2%

prudential approach to creditand market parameters, andthe estimates of the JV Avivaand JV UBI Assicurazionitransactions. No optimisationactions or self financing areincluded17.7%March ‘14

(excluding profit) included(excluding profit)

LCR & NSFRLEVERAGE RATIO* (Basel 3)LIQUIDITY POSITION

5.2% >5.8% >5.4% > 1 >1 >1 >1

TLTRODec '13

fully loadedat regime

June '14phased-in

June '14fully loadedat regime

Mar '14 June '14

LCR and NSFR > 1 also net of LTRO

TLTRO

Estimated 3 bln/€ take up in December 2014

(vs. 6 bln/€ expiring LTRO in Jan ‘15)

3* According to Basel 3 definition of Leverage Ratio, the tier one capital must be equal to at least 3% of on- and off-balance-sheet assets

Executive summary: improving profitability and cost control capacity confirmed1H13 1H14 % h

1,652 1,736

OPERATING INCOME

NET INTEREST INCOME 845

1H13

909

1H14 % change

+7.5%

1H13 1H14

+5.1%

NET RESULTS FROM FINANCE 109 137 +24.9%

NET COMMISSION INCOME 602 610 +1.2%

OPERATING EXPENSESSTAFF COSTS 646

1H13

648

1H14 % change

+0.3%

OTHER ADMINISTRATIVE EXPENSES 335 311 -7.2%

D&A 90 85

1,072 1,044

-2.6%

1H13 1H14 % changeNotwithstanding +11.8% in LLPs

D&A 90 85 -5.7%1H13 1H14

NET OPERATING INCOME

NET PROFIT

PRE-TAX PROFIT

53

169

106

257 +52.6%

+100 6%580

692

NET PROFIT 53 106 +100.6%

NET PROFIT net of non-recurring items 52 131 +150.4%1H13 1H14

+19.2%

4

(€ mln)

First signs of loan book stabilisation in 2Q14.Confirmation of low risk concentration portfolio

% Q QNet volumes in € bln 30 June '13 31 Dec '13 31 Mar '14 30 June '14 % Qo Q changes

44.7 44.0 43.5 43.1 -0.9%

of which: Private Customers 21.2 21.3 21.3 21.4 0.5%

Retail

Small business 14.5 14.2 14.0 13.9 -1.3%

UBI Banca (former Banca 24/7) 6.4 6.0 5.8 5.7 -2.8%

Prestitalia 2.7 2.4 2.3 2.2 -6.5%

29 5 28 0 27 9 27 9 0 0%Corporate

1

2

29.5 28.0 27.9 27.9 0.0%

of which: Core corporate 15.0 14.6 14.5 14.5 -0.3%Large corporate 8.9 8.1 8.2 8.4 2.2%UBI Banca (former Centrobanca) 5.7 5.3 5.2 5.1 -2.7%

0 8 0 8 0 8 0 8

Corporate

P i t

Risk concentration

Fractioned and diversified lending policyt i d i k t ti i i0.8 0.8 0.8 0.8 0.6%

16.2 15.7 14.8 15.3 2.8%

of which: UBI Leasing 7.8 7.4 7.3 7.2 -1.4%UBI Factor 2.3 2.3 2.0 2.0 0.6%

Private

Other

contained risk concentration, in progressivereduction since 2007:

5% 2.6%2.7%Largest 10

31.12.2007 31.06.201431.12.2013Customers

UBI Banca 1.5 1.4 0.9 1.0 9.8%

91.3 88.4 87.1 87.1 0.0%Total lending

Small business: turnover up to €15 mln

312.1% 7.7%7.9%Largest 50

Total gross lending book

pCore Corporate: turnover from €15 to €250 mlnLarge Corporate: turnover > €250 mln

1 Following the merger of Banca 24/7 in UBI Banca, effective July 2012, UBI Banca is managing the remaining stock of non captive mortgages andpersonal and special purpose loans. Prestitalia is managing the “salary backed loan” operations

2 Minor companies, IAS adjustments, loans not segmented to commercial portfolios and intercompany eliminations3 UBI net of intercompany

5

M/L Term lending volumes trends show: 1) an improvement in new lending inflows in Network Banks with a rising new origination/reimbursement ratio

at 104% in 2Q142) i l dit d d f d t i2) an ongoing low credit demand for product companies 3) further reduction of stocks in run-off

All together a good relative growth in new origination but not enough for absolute growth

STOCK 1

FOCUS ON MEDIUM / LONG TERM LENDING(~73% of TOTAL LENDING)

SEMESTER COMPARISONNew Origination (M/L term loans)

~63.2 bln/€

NETWORK BANKS: 90%

95%

104%

Private Customers +33%

1H14 / 1H13Segment

2

New origination

Reimbursement

BANKS:

~ 44.5 bln€=

82% 85% 82%90%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

Private Customers

Corporate Sector

Small Business

+33%

+34%

+16%

99%in 1H14

(vs 83% in 1H13)

~ 44.4 bln/€i M ‘14

PRODUCT COMPANIES~ 12.0 bln/€ 42% in 1H14 (vs 35% in 1H13)

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

New origination=

in Mar ‘14

42% in 1H14 (vs 35% in 1H13)Reimbursement

=

~ 12.4 bln/€in Mar ‘14

STOCK IN RUN-OFF~6.7 bln/€ Portfolio in run off: 6.7 bln/€ end June ‘14, 6.8 bln/€ end March ’14,

6.9 bln/€ end December 2013, mainly former Banca 24/7 and Leasing~ 6.8 bln/€in Mar ‘14

1 As at 30 June 2014, including NPLs, management accounts; 2 Net of mortgages granted to Group employees6

Stable “core funding” (current accounts and retail bonds) with improving mark-downand further optimisation of higher cost items

80% of total direct funding

IAS amounts in € bln June '13 Dec '13 Mar '14 June '14 quarterly % changes

DIRECT FUNDING FROM 77 9 74 7 74 9 74 0 1 3%

Loan to Deposit Ratio 96.6%

~80% of total direct fundingORDINARY CUSTOMERS 77.9 74.7 74.9 74.0 -1.3%

Current accounts & deposits (other than CCG) 43.0 42.6 42.4 42.5 0.1%

Term deposits, other payables and repos 4.4 2.6 2.5 2.4 -5.8%

Sec rities in iss e

Stable current accounts & deposits

Securities in issue: Network banks + UBI 24.4 24.1 24.9 24.4 -2.0%Extra-captive customers* 3.8 3.7 3.5 3.4 -3.1%Other (mainly customer CDs) 2.2 1.7 1.5 1.3 -16.1%

DIRECT FUNDING FROM

Strong placement power of retail bonds confirmed

~20% of total direct fundingDIRECT FUNDING FROM INSTITUTIONAL CUSTOMERS 18.5 17.9 15.9 16.2 1.7%

Securities in issue:Covered Bonds 6.3 7.7 8.7 8.8 1.2%EMTN 5.8 4.2 5.1 4.3 -17.0%

New issuances welcomed by institutional markets inJan/Feb ’14: 1 bln/€ Covered Bond and 1 bln/€ Emtn

CD and ECP 0.6 0.2 0.7 0.8 29.8%Preferred shares 0.3 0.3 0.0 0.0 n.s.

Repos with CCG 5.4 5.5 1.4 2.3 59.9%

TOTAL DIRECT FUNDING 96 3 92 6 90 8 90 2 0 7%

(vs. 0.9 bln/€ Emtn matured)

Preferred shares redeemed in Mar ‘14

TOTAL DIRECT FUNDING 96.3 92.6 90.8 90.2 -0.7%

AUM 27.3 27.8 27.9 28.7 2.6%Bancassurance 11.4 11.7 11.9 12.1 2.0%AUC 30.2 32.1 33.6 32.9 -2.1%

Among AuM, mutual funds and SICAV stocks up by 2.2bln/€ (+11.4%) June ‘14 vs. June ’13

Positive placement of bancassurance products, with anAUC 30.2 32.1 33.6 32.9 2.1%

TOTAL INDIRECT FUNDING 68.9 71.7 73.4 73.7 0.4%

TOTAL DIRECT + INDIRECT FUNDING 165.3 164.3 164.2 163.8 -0.2%

Positive placement of bancassurance products, with anincrease +5.8% in stocks June ‘14 vs. June ’13

7* Bonds placed on third party banks networks

Bond securities maturities programmed so as to be fully sustainable: new issuances at significantly lower spreads

New Issuances

8.52 8.23

RETAIL BONDS: Maturity Profile(Nominal amounts in € bln, net of bond repurchases)

R l t t 100%2014

4.91

7.288.23

2 01

Replacement rate: > 100%

Decreasing spreads

1H14 2015 2016 2017 and following

3Q14 4Q14

1.54 2.01Matured 150 126 110 102

FY12 FY13 1Q14 2Q14

Spread vs. 6M Euribor

(bps)

Issuances in 1H14

g

INSTITUTIONAL BONDS: Maturity Profile(Nominal amounts in € bln)

In January 2014 issued:

• € 1 bln of Covered Bond1 05

1.05

2014

(maturity Feb 2024, fixed rate 3.125%)

The outstanding residential coveredbond program was enlarged to 15 bln/€

0.97 0.80 1.00

0.551.80

1.05

0.05

3.61

0 690.03

0 91

0.03

Matured

In February 2014 issued:

• € 1 bln of EMTN

(maturity Feb 2019, fixed rate 2.875%)

0.10 0.162015 2016 2017 2018 2019 2020 and

followingEMTN COVERED BONDS*

0.030.69 0.48

3Q14 4Q141H14

0.91

8* Inclusive of 0.5 bln/€ of private placement with BEI expiring within 2022. Further 1.7 bln/€ retained issue not included

EMTN COVERED BONDS

Italian Govies proprietary portfolio at around 20 bln/€ (21 bln/€ in March 2014) strongly contributing to total eligible assets

Eligible Assets: 31.1 bln/€ (net of haircut)Italian Govies: ~ 92% of Financial Assets(€ mln)

st o g y co t but g to tota e g b e assets

2 590 3 435 1 6603,087

3,113 3,050 HTM

TOTAL 19,738 21,126 20,283

Italian Govies ~ 63%

%Eligible assets breakdown

Data as at 6th August 2014(€ mln)

14,061 14,578 15,573

2,590 3,435 1,660

AFS

HFTItalian Govies

Gov. Guaranty bonds

Retained securitisations

 63%

~ 10%

~ 11% On 7th August ‘14 obtained authorisation

for early

31 Dec 2013 31 Mar 2014 30 June 2014

Retained covered bonds *

Other (ABACO)

~ 10%

~ 6%

for early reimbursement of the

residual 3 bln/€State guaranty bond

Modified duration of Italian Govies

portfolio: 0.7 years

Maturity Profile(market values, € bln)

Use of eligible assets**

3 05.1 6.2

2.5 1.8

portfolio: 0.7 years

AFS

HFT

HTM

Unencumbered

Pledged for LTROs***

CCG Repos

17.4 bln/€

12.3 bln/€

1 4 bln/€

~41% of short term deposits

3.0 1.7

Over 2017-20182015-20162H2014

HTM

AFS Reserve on Italian Govies: +112 mln/€ as at 30th July 2014

CCG Repos 1.4 bln/€

9* 1.5 bln/€ on the 15 bln/€ Retail Mortgages CB Programme, 1.7 bln/€ on the 5 bln/€ Commercial Mortgages CB Programme (net of haircut) ** 6 bln/€ of LTRO were taken in December 2011 (expiring in Jan ‘15), further 6 bln/€ in February 2012 (expiring in Feb ‘15)*** Including among others interest expense accrued

AFS Reserve on Italian Govies: +112 mln/€ as at 30 July 2014

Stated Net Profit: 106 mln/€ in 1H14 vs. 53 mln/€ in 1H13

MAIN INCOME STATEMENT ITEMSFigures in € mln 1H13 1H14 % change 2Q13 1Q14 2Q14 % change

2Q14 vs 2Q13% change

2Q14 vs 1Q14

Net interest income 845 909 7.5% 428 454 454 6.0% (0.1%) Net commission income 602 610 1.2% 297 300 310 4.1% 3.2% Net result from finance 109 137 24.9% 67 63 74 9.9% 18.2% Other income items 95 81 (14.9%) 59 36 45 (24.6%) 23.6%

Operating income 1,652 1,736 5.1% 852 853 882 3.5% 3.4% St ff t (646) (648) 0 3% (315) (326) (322) 2 2% (1 3%)Staff costs (646) (648) 0.3% (315) (326) (322) 2.2% (1.3%)

Other administrative expenses (335) (311) (7.2%) (174) (153) (159) (8.6%) 3.9%

Net impairment losses on property, equipment and investment property and intangible assets (90) (85) (5.7%) (45) (43) (43) (5.4%) 0.3%

Operating expenses (1 072) (1 044) (2 6%) (534) (521) (523) (2 0%) 0 4%Operating expenses (1,072) (1,044) (2.6%) (534) (521) (523) (2.0%) 0.4%

Net operating income 580 692 19.2% 319 332 359 12.7% 8.2% Net impairment losses on loans (384) (429) 11.8% (226) (199) (230) 1.9% 16.0%

Net impairment losses on other financial assets and liabilities (17) (2) (88.4%) (9) 2 (4) n.s. n.s.

Net provisions for risks and charges (12) (3) (76 7%) (9) (10) 7 n s n sNet provisions for risks and charges (12) (3) (76.7%) (9) (10) 7 n.s. n.s.

Profits (losses) from disposal of equity investments 1 (0) n.s. 2 (1) 0 n.s. n.s.

Pre-tax profit from continuing operations 169 257 52.6% 76 125 133 74.5% 6.7%

Taxes on income for the period from continuing operations (103) (135) 31.3% (47) (59) (77) 64.8% 30.6%

P fit f th i d tt ib t bl t t lli i t t (13) (16) 24 5% (3) (8) (8) 5 3%Profits for the period attributable to non-controlling interests (13) (16) 24.5% (3) (8) (8) n.s. 5.3%

Profit for the period 53 106 100.6% 26 58 48 81.5% (17.3%)

Profit for the period NET OF NON-RECURRING ITEMS 52 131 150.4% 33 59 72 116.5% 21.6%

Taxes on income include non-recurring items related to: increase from 12% to 26% of the substitute tax on revaluation of Bank of Italy stake for -4.5 mln/€

(or -3.7 mln/€ net of minorities)

impact from change in IRAP* tax rate of existing DTA: -19.6 mln/€

10PPA allocated line by line

* IRAP = regional production tax

Net Interest Income at:909 mln/€ in 1H14: +7.5% vs. 1H13 and +0.4% vs. 2H13

1H14 vs. 1H13: differential contributionHalf year evolution

454 mln/€ in 2Q14: +6% vs. 2Q13 and flat vs. 1Q14

y

905 909845

909

+124

+23(€ mln) (€ mln)

845905

-84 +124

NII Loans Funding NIIFinancial

+7.5%

1H13 2H13 1H14

NII in 1H13

Loans Funding NII In 1H14

Financial activities

-4.3 bln -2.4 blnChange in avg. volumes

+1.3 bln

Quarterly evolution

(€ mln) Main trends in NII determined by:

t t i t i t d

417 428446

459 454 454 constant improvement in customer spread...

...thanks to optimisation of funding structureand strong improvements in markdown

+6%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 and notwithstanding decrease in average

lending volumes

11

Net Interest Income:contribution from business with customers and from financial assets

NII from BUSINESS with CUSTOMERS (€ mln) 337 343 361 358

1Q13 2Q13 1Q14 2Q14See annex 5 for details

284 281 277 277

159 161 179 182

Mark-up

Customer Spread(UBI Banca Group)

Pricing(average

~ 80% of NII generated bybusiness with customerbenefiting from constantimprovement in customer

-125 -120 -98 -95Mark-down(average bps on stocks*)

pspread:

unvaried mark-upnotwithstanding loweravg lending volumes

86 85 81 8089 87 85 86

Lending

Funding

Average interest-bearing volumes(€ bl )

Lending

Funding

avg. lending volumes lower mark-down notwith-

standing recent higheravg. funding volumes

Mar '13 June '13 Mar '14 June '14(€ bln)

NII from FINANCIAL ASSETS & INTERBANK EXPOSURE (€ mln) 80 85 93 96

1Q13 2Q13 1Q14 2Q14

Positive evolution of netyield on financial portfoliof f f

19.0 19.3 20.6 20.3

173 177 185 188yield on financial portfoliosustained by lower interestrate on LTRO

Yield of financial portfolio net of funding cost (bps)

Financial asset average volumes (€ bln)

Mar '13 June '13 Mar '14 June '14

12* Average period data referred to the whole consolidated Group (Network banks+ Product companies + UBI)

Net Commission Income. Positive 6 months and quarterly progression: +1.2% YoYand +3.2% 2Q14 vs. 1Q14 notwithstanding lower intermediated volumes

Half year evolution1H14

See annex 6 for details

602 610 

+1.2%(€ mln)

Banking Services Commissions ‐6.7%

1H14vs 1H131H13 1H14

324.7 302.9

Guarantees (on State Guaranty Bonds) ‐31.8%(23.1) (15.7)Performance affected by sluggisheconomy and decreasing avg.loans (-5.1% YoY)

Net Commission Income (mln€)

602 Securities Management, Trading & Advisory Services

+7.3%300.6 322.5

Total 602.2 609.7 +1.2%

Good performance thanks tobetter market conditions andgood performance in AuM

1H13 1H14

On 7th August ‘14 obtainedauthorisation for early reimburse-ment of the residual 3 bln/€ State

(€ mln) +4.1%

Quarterly evolution

2Q14Net Commission Income (mln€) 2Q13 1Q14 2Q14vs 1Q14

2Q14vs 2Q13

guaranty bond

297 300 310

+3.2%

Banking Services Commissions

Securities Management, Trading & Advisory Services

159.0 150.6

150.0 159.6

Guarantees (on State Guaranty Bonds) (11.6) (10.1)

152.3 +1.1% ‐4.2%

162.9 +2.1% +8.6%

(5.6) (‐44.5%) (‐51.6%)

2Q13 1Q14 2Q14

& Advisory Services

Total 297.5 300.1 309.6 +3.2% +4.1%

13* Includes FX negotiations and excludes performance fees

Cost control capacity confirmed in 1H14: total operating costs -2.6% YoY mainlyupheld by staff cost trends and significant effort in other administrativeexpenses containment

-2.6%1 072

335 311

90 85

-7.2%

-5.8%

1,072 1,044

Other Adm. Expenses

D&A (incl. PPA*)

Total oper. costs(€ mln)

Staff costs flat, notwithstanding inclusion of progressive increases asfrom 1st June 2013 and 1st June 2014 set out in the National LabourContract in force

From 1st July 2014, 183 exits**, as per March ‘14 trade union646 648+0.3%

Staff costs

y pagreement

1H13 1H14

Total operating costs (€ mln) of which Staff costs (€ mln) of which Other admin. expense (€ mln)

-2.0%

+0 4% +2 2% 8 6%

534 521 523

315 326 322 174 153 159

+0.4% +2.2%

-1.3%-8.6%

+3.9%

2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q14

14* PPA effect amounted to 10.2 mln/€ in 1H13 and to 9.8 mln/€ in 1H14** Reminder: net one-off costs for leaving incentives booked in 4Q13 at 26 mln/€

An impressive cost management story strongly committed to efficiency(Amounts net of non-recurring items)

1H 2014 vs. 1H 2007...

1,294 1,305 1,316 1,287 1,244 1,228 1,222 1,209 1,216 1,198

-19.3%

(€ mln, net of PPA)

TOTAL OPERATING COSTS

, 1,198 1,137 1,128

1,072 1,070 1,044

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H

2007 2008 2009 2010 2011 2012 2013 2014

STAFF COSTS OTHER ADM. EXPENSE19 % 1 %

(€ mln) (€ mln, net of PPA)1H 2014 vs. 1H 20071H 2014 vs. 1H 2007 1H 2014 vs. 1H 20071H 2014 vs. 1H 2007

805 785 811 774 745 720 714 704 738 713 689 685 646 655 648 369 396 372 376 383 387 385 385 356 362 352 350 335 325 311

-19.5% -15.7%

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H

2007 2008 2009 2010 2011 2012 2013 2014

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H

2007 2008 2009 2010 2011 2012 2013 2014

STAFF HEADCOUNTS-15.0%

NUMBER OF DOMESTIC BRANCHES-15.1%

1,970 1,929 1,944 1,939 1,955 1,884 1,892 1,877 1,875

1,801

21,700 21,550 20,680 20,926 20,285 20,260 19,699 19,546 19,407 19,306 19,088 18,485 18,338 18,438

June 2014 vs. April 2007 June 2014 vs. April 2007

,1,727 1,726 1,725 1,673

Apr June Dec June Dec June Dec June Dec June Dec June Dec June

2007 2008 2009 2010 2011 2012 2013 2014

Apr June Dec June Dec June Dec June Dec June Dec June Dec June

2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 20142007 2008 2009 2010 2011 2012 2013 2014

15Note: staff headcounts at the end of the period

Signs of stabilisation in gross deteriorated loan stocks, decrease in netdeteriorated loan stocks. Encouraging evidences also in terms of inflows fromperforming loans ( 38 1% YoY)performing loans (-38.1% YoY)

Gross deteriorated loan stocks (€ mln)

+0 9%+8% +7%

See annex 6 for detailsNet deteriorated loan stocks (€ mln)

-0.6%+7.6% +6.7%

10,958 11,840 12,674 12,788

+0.9%+8% 7%

8,105 8,725 9,312 9,257

0.6%7.6% 6.7%

Dec '12 June '13 Dec '13 June '14 Dec '12 June '13 Dec '13 June '14

Outflows from deteriorated loans (€ mln)

1 831 2,035

Inflows from performing loans (€ mln)

-38.1% Outflows to f i l Loans cashed-in Write-offs

492598 528

1,831

1,260

performing loans

451468

487

141 177

309

1H12 1H13 1H141H12 1H13 1H14 1H12 1H13 1H14 1H12 1H13 1H14

Significant slowdown in deteriorated loans inflows from performing loans (-38.1% 1H14 vs. 1H13)

Slight decrease in outflows of deteriorated loans to performing loans (-70 mln/€ 1H14 vs. 1H13) more than compensated bygood problematic credit recollection (loans cashed-in up by 19 mln/€, or +3.9% 1H14 vs. 1H13) and by noteworthyincrease in stock write-offs (+132 mln/€ or +74 4%) almost completely NPLs with an impact on their coverage

16

increase in stock write offs (+132 mln/€, or +74.4%), almost completely NPLs with an impact on their coverage

6 month annualised cost of credit at 99 bps (vs. 84 bps of 1H13)LLPs directly correlated to Italian GDP trends

0 1% 1.4% 1.2% 0 3%

y

LOAN LOSS PROVISIONS* YoY change on 6 month basis in ...(€ l ) 0.1%

-6.8%

%-2.1% -2.3% -0.3%

429

... Italian GDP

UBI LLPs

6 month basis in ...(€ mln)

5164

828470

99

Annualised cost of credit (bps)

32

34.0%

158.4%

-18.6% -18.1%26.9% 14.8% 11.8%115 153

395 322 264 334 384 429 ... UBI LLPs32

25

1H08 / 1H07

1H09 / 1H08

1H10 / 1H09

1H11 / 1H10

1H12 / 1H11

1H13 / 1H12

1H14 / 1H13

1H07 1H08 1H09 1H10 1H11 1H12 1H13 1H14

Increasing provisions in 1H14 vs. 1H13 are due to:

transfers within the deteriorated loans portfolio to NPLs(“Sofferenze”), involving higher coverage rate.NET ANALYTICAL IMPAIRMENTS* 368 449

1H13 1H14LLPs breakdown (€ mln)

( Sofferenze ), involving higher coverage rate.In 1H14 gross NPLs represented nearly 50% of the total grossdeteriorated loans vs. approx 47% in 1H13

in a prudential stance, higher incidence of write-offs (69 mln/€ inNET COLLECTIVE IMPAIRMENTS 16 -20

143 187of which writebacks*

1H14 vs. 42 mln/€ in 1H13)

17* Analytical writebacks net of time reversal: 123 mln/€ in 1H14 vs.100 mln/€ in 1H13

Source of Italian GDP: Istat. 1H14 vs. 1H13 preliminary estimate

June ‘14 vs. Dec ‘13: coverage of total deteriorated loans up by 109 bps to 27.61%(+134 bps including write-offs to 37.60%) ( p g )

Coverage 30 Jun '13 31 Dec '13 31 Mar '14 30 June '14

Coverage impacted by the sale of 61 mln/€ ofgross NPLs covered at 91%.

Total deteriorated loans 26.31% 26.52% 27.26% 27.61%..including write-offs 36.18% 36.26% 37.23% 37.60%

NPLs (sofferenze) 41.78% 41.60% 41.02% 40.61%Excluding this event, the coverage would haverisen to 41.1% (55.4% including write-offs)

..including write-offs 56.17% 56.05% 55.80% 55.09%

Impaired loans (incagli) 14.07% 15.12% 16.22% 16.23%

Restructured loans 14.45% 13.94% 14.16% 14.49%

Past due loans 3.23% 2.83% 4.95% 4.78%

Performing loans 0.56% 0.61% 0.59% 0.57%

LOAN TO VALUE*(Impaired Loans Stock)

% OF COLLATERALISED POSITION**NPLs and Impaired Loans Stock)

COVERAGE OF NON-COLLATERALISED POSITIONS(as at 31 Mar ‘14 and 30 June ‘14)

OTHER KEY ELEMENTS TO ASSESS THE GROUP LOAN PORTFOLIO

57.0% 57.1%52.7% 49.7% > 63%> 64%

(Impaired Loans Stock) NPLs and Impaired Loans Stock) (as at 31 Mar 14 and 30 June 14)

71.65%71.88%

25.29%25.25%

NPLs (including write-offs) Impaired loansMar '14 June '14 Mar '14 June '14Retail Corporate Mar ‘14 June ‘14

18

* The LTV of performing loans stocks is 45.8% for Retail mortgages and 41.2% for Corporate mortgages. All figures, both for performingand non performing loans, refer to Network Banks + UBI

** Overall over 60% of the total loan portfolio is assisted by collateral-real estate (the secured portion of the portfolio increases to 75.9%adding up personal guarantees). Source: 2013 Annual Report

Outlook

Under current market conditions net interest income should benefit in terms of:

‒ interest expense from a progressive decrease in the cost of the marginal moreinterest expense from a progressive decrease in the cost of the marginal, moreonerous components and from repricing action already taken, which will becomefully effective in the second half

‒ interest income from the resilience of medium to long-term loan yields

The positive contribution from fee and commission income is expected tocontinue, assisted by favourable seasonal factors that normally occur in the second halfof the year

The reduction in administrative expenses is confirmed compared to 2013, while theperformance of staff costs will depend on the final outcome of the renewal of the nationalp plabour contract

The slowdown in the pace of new defaulted loans recorded in the first quarter of The slowdown in the pace of new defaulted loans recorded in the first quarter ofthe current year continued again in the second quarter and allows expectations ofan overall year-on-year improvement compared with 2013 in loan losses to be confirmed

19

Latest Group streamlining processes

Recent announcements on... P&L impacts

Redefinition of strategic partnership in the bancassurance sector

Lif l b UBI B f 30% f A i Vit S A d A i Life: sale by UBI Banca of 30% of Aviva Vita S.p.A. and AvivaAssicurazioni Vita S.p.A. and repurchase by UBI Banca of all thestakes held by subsidiaries of Aviva Italia Holding Spa in BancaPopolare Commercio e Industria, Banca Popolare di Ancona and

€ 57 mlnof net gain

p , pBanca Carime

Non Life: sale of UBI Banca’s remaining stake in UBI Assicurazioni € 27 mlng(50%-1 share) to BNP Paribas Cardif and Ageas

Integration between IW Bank and UBI Banca Private Investment

of net gain

20

Annexes

21

Reclassified balance sheet: highlightsAnnex 1

Financial assets (AFS, HFT, FV, HTM) 21,763 21,841 23,238 22,153 1.8% -4.7%

30.06.2013 31.12.2013 % annual change

% quarterly change31.03.2014 30.06.2014MAIN ASSETS ITEMS

Figures in millions of euro

Loans to customers 91,268 88,421 87,095 87,119 -4.5% 0.0%

Property, equipment and investment property 1,922 1,798 1,781 1,765 -8.2% -0.9%

Intangible assets 2,946 2,919 2,903 2,896 -1.7% -0.2%

of which: goodwill 2,537 2,512 2,512 2,512 -1.0% 0.0%

Tax assets 2,393 2,833 2,824 2,567 7.3% -9.1%

Other assets 1,543 931 773 1,169 -24.3% 51.2%

Total assets 127,930 124,242 123,983 123,226 -3.7% -0.6%

% quarterly change31.03.201430.06.2013 31.12.2013 % annual

change30.06.2014MAIN LIABILITIES AND EQUITY ITEMSFigures in millions of euro

Net interbank position* 10,250 10,888 11,389 11,886 16.0% 4.4%

Due to customers 52,843 50,702 46,367 47,127 -10.8% 1.6%

Securities issued 43,501 41,902 44,478 43,049 -1.0% -3.2%

Tax liabilities 537 756 908 620 15.5% -31.7%

Net worth attributable to the Parent 9,809 10,089 10,609 10,603 8.1% -0.1%

Non-controlling interests 832 842 816 823 -1.1% 0.9%

Profit for the period 53 251 58 106 100.6% 82.7%

Total liabilities and equity 127,930 124,242 123,983 123,226 -3.7% -0.6%

22* Including €12 bln LTRO

Annex 2Capital Ratios (Phased in, Basel III) as at 30 June ‘14: Common Equity Tier 1 Ratio at 12.73%, Total Own Funds Ratio (TCR) at 18.03%

Figures in millions of euro31 Mar '14

Basel III30 June '14

Basel III

Common Equity Tier 1 Capital (before filters and transitional provisions) 7,842 7,974

Transitional provisions (minority interest) 383 3 375 6Transitional provisions (minority interest) 383.3 375.6

Transitional provisions (AFS Reserves) -130.6 -103.6

Common Equity Tier 1 Capital filters -5.2 -2.8

Italian Govies filters 5.5 -59.8

Common Equity Tier 1 (after filters and transitional provisions) 8,094.7 8,183.5

Common Equity Tier 1 regulatory adjustments -572.2 -519.4

of which: negative elements for deduction excess of expected losses over impairment losses

-535.2 -519.4

Common Equity Tier 1 7,522.5 7,664.1

Tier 1 7,522.5 7,664.1

Tier 2 capital before transitional provisions 3,688.0 3,527.9

Tier 2 instruments grandfathering 31.8 19.4

Tier 2 capital after transitional provisions 3,719.9 3,547.2Tier 2 capital regulatory adjustments -346.0 -357.9

of which: negative elements for deduction excess of expected losses over impairment losses

-356.8 -372.6

Tier 2 capital 3,373.9 3,189.3

Total Own Funds 10,896.4 10,853.4, ,Credit risk 4,449.1 4,414.9

CVA (Credit Value Adjustment) risk 8.5 10.8Market risk 103.5 55.7Operational risk 359.1 333.8

Total prudential requirements 4,911.8 4,804.4Total prudential requirements 4,911.8 4,804.4

Risk weighted assets 61,504.1 60,190.4

Common Equity Tier 1 Capital Ratio 12.23% 12.73% Tier I Ratio 12.23% 12.73%

23

Total Own Funds Ratio (TCR) 17.72% 18.03%

Indirect Funding Evolution Annex 3

68.9 71.7 73.4 73.7INDIRECT FUNDING +6.8% +0.4%

June '13 Dec '13 Mar '14 June '14In € bln ∆ vs. June ‘13 ∆ vs. March ‘14

11 7 11 9 12 1

27.3 27.8 27.9 28.7AuM

Bancassurance

+5.1% +2.6%

+5.8% +2.0%

30.2 32.1 33.6 32.9

11.4 11.7 11.9 12.1Bancassurance

AuC +8.8% -2.1%

June ‘13 Dec ‘13 Mar ‘14 June ‘14

62%11%13%

3%11%

Source: Assogestioni’s

AuM56%

17%

13%4%

10%

52%

21%

13%5%

9%

49%13%5%

8%More favourable

composition of AuM

Source: Assogestioni s“PATRIMONIO GESTITO*

aggregate

21% 25%

Bond Balanced Equity Flexible Cash

24* Customers assets managed to which assets received for management under a mandate from other managers are added and from

which assets entrusted under mandate to other managers are subtracted. With reference to UBI Pramerica, as from June ‘12Assogestioni includes again in this aggregate the amounts managed by third parties, i.e. approx. € 4.8 bln managed by Prudential

Securities Portfolio Details* Annex 4

Composition of the portfolio 31.12.2013 31.03.2014 30.06.2014

Government bonds 93 2% 94 4% 94 8%Government bonds 93.2% 94.4% 94.8%

Corporate bonds (mainly bank issues) 4.6% 4.7% 4.3%

Hedge funds 0.6% 0.6% 0.6%

Funds and shares 1 6% 0 4% 0 3%

BY TYPE OF FINANCIAL

INSTRUMENTFunds and shares 1.6% 0.4% 0.3%

Floating rate** 20.4% 20.0% 49.5%

Fixed rate 74.5% 76.1% 46.8%BY FINANCIAL

Structured securities 3.0% 2.9% 2.8%

Shares, funds, convertible bonds 2.2% 0.9% 0.9%

PROFILE

Securities in euro 99.7% 99.7% 99.7%

Securites of the euro area 99.6% 99.6% 99.7%

USA iti 0 0% 0 00% 0 00%

BY CURRENCY

BY GEOGRAPHICAL DISTRIBUTION USA securities 0.0% 0.00% 0.00%

Investment grade 99.1% 99.0% 99.1%

Average rating Baa2 Baa2 Baa2

DISTRIBUTION

BY RATINGS (BONDS)Average rating Baa2 Baa2 Baa2

25* Analysis refers to a portfolio which excludes participations, some smaller portfolios and derivatives** Fixed rate securities with asset swaps are considered as floating rate securities; securities in asset swap represent 94% of

floating rate securities as at 30th June 2014

Net Interest Income/Customer Spread: DetailsAnnex 5

CUSTOMER SPREADSCUSTOMER SPREADS

in bps on avg. STOCK* 2Q13 1Q14 2Q14

1M Euribor 12 23 23

Mark up vs 1M Euribor 281 277 277Short term 377 358 345M di l t 252 253 257Medium-long term 252 253 257

Mark down vs 1M Euribor -120 -98 -95Sight deposits -27 -8 -7Term deposits -284 -191 -163pRetail bonds -154 -146 -146Institutional bonds -176 -186 -183

UBI Group - Customer spread 161 179 182p p

of whichNetwork Banks cust. spread** 175 196 198

26* Average period data referred to the whole consolidated Group (Network banks+ Product companies + UBI), unless otherwise stated** Network Bank customer spread includes subordinated debt

1Q14 values restated for consistency

Net Commission Income details Net Commission Income: Half Year Evolution

Annex 6

Net Commission Income: Half-Year Evolution

Net Commission Income (€ mln) 1H13 1H14 1H14 / 1H13(%)

Guarantees (on State guaranty bonds) (23.1) (15.7) -31.8%

BANKING RELATED COMMISSIONS 324.7 302.9 -6.7%

of which:

Guarantees (banking activity) 25.2 26.7 5.9%

Collection and payment services 53.4 50.7 -5.0%

S i f f t i t ti 12 4 10 1 18 7%

Net Commission Income: Quarterly Evolution

Services for factoring transactions 12.4 10.1 -18.7%

Current accounts management 98.9 98.1 -0.8%

Other services 134.8 117.3 -13.0%

MANAGEMENT, TRADING & ADVISORY SERVICES* 300.6 322.5 7.3%

Net Commission Income (€ mln) 2Q13 1Q14 2Q14 2Q14 / 2Q13(%)

2Q14 / 1Q14(%)

Guarantees (on State guaranty bonds) (11.6) (10.1) (5.6) -51.6% -44.5%

BANKING RELATED COMMISSIONS 159 0 150 6 152 3 4 2% 1 1%

of which:

Portfolio management 115.4 123.7 7.2%

Placement of securities 91.9 93.6 1.9%

Third party services distribution 75.3 87.0 15.6%

BANKING RELATED COMMISSIONS 159.0 150.6 152.3 -4.2% 1.1%

of which:

Guarantees (banking activity) 10.4 14.4 12.3 17.7% -14.9%

Collection and payment services 27.3 25.4 25.3 -7.0% -0.3%

Services for factoring transactions 5.9 5.2 4.9 -17.4% -6.1%

TOTAL 602.2 609.7 1.2%

Current accounts management 50.8 47.6 50.6 -0.4% 6.3%

Other services 64.7 58.0 59.2 -8.4% 2.1%

MANAGEMENT, TRADING & ADVISORY SERVICES* 150.0 159.6 162.9 8.6% 2.1%

of which:

Portfolio management 58.8 59.6 64.1 9.0% 7.6%

Placement of securities 43.8 47.1 46.5 6.3% -1.3%

Third party services distribution 38.4 43.1 43.9 14.3% 1.9%

TOTAL 297 5 300 1 309 6 4 1% 3 2%TOTAL 297.5 300.1 309.6 4.1% 3.2%

27* Includes FX negotiations and excludes performance fees

Asset Quality details Annex 7

LOANS TO CUSTOMERS - AS AT 30 JUNE 2014GROSS EXPOSURE IMPAIRMENT

LOSSES € mln€ mln %* CARRYING AMOUNT COVERAGE

RATIO %€ mln %*

Coverage impacted by thesale of 61 mln/€ of grossNPLs covered at 91%.Excluding this event, thecoverage would have risen to:

NPLs (Sofferenze) 6.97% 2,579IMPAIRED LOANS (Incagli) 5.40% 798RESTRUCTURED LOANS 0.92% 121

4.33%3,771 40.61%4.73%4,117 16.23%0.82%717 14.49%

6,3514,915

838

g

41.1%

27.9%

NPLs coverage pro-forma

Total deteriorated coverage pro-forma

PAST DUE 0.75% 33

TOTAL DETERIORATED LOANS 14.04% 3,531

0.75%652 4.78%

10.63%9,257 27.61%TOTAL PERFORMING LOANS 85.96% 449 89.37%77,862 0.57%

685

12,788

78,311

LOANS TO CUSTOMERS - AS AT 31 MARCH 2014

TOTAL LOANS TO CUSTOMERS 100% 3,980 100%87,119 4.37%91,099

GROSS EXPOSURE IMPAIRMENT LOSSES € mln

NPLs (Sofferenze) 6.61% 2,468

€ mln %* CARRYING AMOUNT

4.07%3,548 41.02%

COVERAGE RATIO %

6,015

€ mln %*

IMPAIRED LOANS (Incagli) 5.58% 824RESTRUCTURED LOANS 0.97% 125PAST DUE 0.75% 34

4.88%4,254 16.22%0.87%760 14.16%0.75%647 4.95%

5,077886680

TOTAL DETERIORATED LOANS 13.91% 3,450 10.57%9,208 27.26%TOTAL PERFORMING LOANS 86.09% 462 89.43%77,887 0.59%

TOTAL LOANS TO CUSTOMERS 100% 3,912 100%87,095 4.30%

12,659

78,348

91,007

28* As a percentage of total loans