Prospectus - Notowania

has an adequate level of portfolio diversification, it is nevertheless exposed to risks if loan
counterparties become insolvent and, as a result, the Group is required to increase its levels
of provisions. Difficulties could also arise in debt collection, specifically as a result of the
current economic trend, also due to the values of assets provided as security proving lower
than the current and/or initial appraisals.
• Deposits
The Group funds its operations through deposits from customers, the issue of bonds, the
interbank deposit market and the securitisation of its own credit. The macroeconomic
conditions in place from Q4 2007 had direct effects on deposit growth. Though the Group
benefits from a level of diversification of its extensive deposit base both in terms of type of
product offered as well as geographic area, it is subject to these trends, with a resulting
impact on the cost of money and thus, on net interest income.
� Interest Rate Fluctuations
The results are influenced by the trend and fluctuation in interest rates in Europe and in the
other markets where the Group operates. Specifically, income from banking and funding
depends on the management of sensitivity to interest rate exposure. Without suitable
instruments for protection, any misalignment between interest income and interest expense
could significantly impact the financial position and operating income.
� Exchange Rate Fluctuations
A significant portion of UniCredit Group business is done in currencies other than the
Euro, predominantly in the legal tender of CEE states and in United States Dollars. The
Group is therefore exposed to risks connected with fluctuations in exchange rates and with
the money market. Since the financial statements and interim reporting are prepared in
Euro, the necessary currency conversions are made in accordance with the applicable
accounting standards. Any negative change in exchange rates could thus have effects on the
Group’s performance.
� Performance of the Financial Markets
Group results depend significantly on the performance of the financial markets. In
particular, volatility and the unfavourable performance of financial markets affect: (i) the
flows from the placement of savings under management and administration products with
the resulting impact on the levels of placement fees earned; (ii) management fees, by virtue
of the lower value of the assets and due to redemptions caused by unsatisfactory
performance; (iii) operations by the Group’s Market structures, with particular reference to
placement and brokerage of financial instruments; and (iv) the results of the banking
portfolio and of the trading portfolio.
The recent evolution of the financial markets – in particular, most recently, the changed
economic framework that characterised the sovereign debt of Greece and Spain and the
indebtedness of an important economic-financial operator in Dubai are expected to have a
negative impact on revenues deriving from trading and Group operations in capital markets
in Q4 of 2009 and Q1 of 2010.
Main Changes in the Scope of Consolidation from 2006 to 2009
The main changes in the scope of the UniCredit Group over the three-year period 2006-2009
are reported below. The balance sheet, income statement and financial information presented in
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