Prospectus - Notowania

45
>> Group Results
Retail
Retail profit before taxes totaled €720 million for the first nine months, which translates into a strong decrease from the
previous year (-67%). The very different economic environments in the two periods do not allow a constructive comparison of
these two results. More indicative is the good result achieved by the Retail SBA in this difficult environment: profit before
taxes amounted to €156 million, down by 21% from the previous quarter.
With regard to credit quality, in September the Retail SBA reported an annualized cost of risk of 106 bps, representing an
increase of about 49 bps over September 2008, which should be interpreted as the effect of an increase in non-performing
loans due to the worsening credit scenario in the last year.
With the aim of creating shareholder value, retail has continued to implement a number of actions to ensure efficient capital
allocation, which allowed to generate EVA in the amount of €104 million for the first nine months of 2009, which however
represents a strong decline from 2008.
Key Ratios and Indicators
RETAIL
FIRST 9 MONTHS CHANGE
2009 2008 AMOUNT %
EVA (€ million) 104 1,041 -937 -90.01%
Absorbed Capital (€ million) 5,038 6,010 -972 -16.17%
RARORAC 2.75% 23.10% n.s.
Operating Income/RWA (avg) 13.73% 13.02% 71bp
Cost/Income 70.1% 64.7% 540bp
Cost of Risk 1.06% 0.57% 49bp
The balance of loans and receivables with customers (€169 billion) was down of €5 billion from June and of nearly €11
billion (-6%) from last December confirming the downward trend affecting the entire banking industry. Despite the downturn in
the economic cycle, the Retail SBA's strategy in the area of loan management was to provide adequate financial support to
business initiatives and needs of households without, however, neglecting careful assessment of creditworthiness, which has
always been a feature of the Group's business. In the first nine months of the year new loans to households were made
totaling €4.5 billion, and new short, medium and long-term loans totaling €7.8 billion were made to small business customers.
In September 2009, deposits from customers in the Retail SBA, including deposits and securities in issue, totaled €243
billion representing an increase of nearly €1 billion over June and of €26.6 billion (+12.3%) over year end. Without the bond
issue of UniCredit Family Financing Bank (aimed to fund the mortgages stock following the carve-out of ex-Capitalia banks)
the real growth in direct deposits (10 billion) is due to the strong customer preference for simpler and more secure savings
instruments, strongly contributing to the Group funding in an environment with conditions of uncertainty of the interbank
market.
Balance Sheet (€ million)
RETAIL
AMOUNTS AS AT CHANGE ON DEC '08
09.30.2009 06.30.2009 12.31.2008 AMOUNT %
Loans to customers 169,295 174,282 180,280 -10,985 - 6.1%
Customer deposits (incl. Securities in issue) 242,529 241,946 215,915 26,614 + 12.3%
Total RWA 69,933 73,170 80,410 -10,477 - 13.0%
RWA for Credit Risk 56,271 59,009 67,278 -11,007 - 16.4%
Breakdown of loans by country and deposits (€ million)
RETAIL
LOANS DEPOSITS FROM CUSTOMERS
TO CUSTOMERS CHANGE AND DEBT SECURITIES IN ISSUE
CHANGE
09.30.2009 12.31.2008 % 09.30.2009 12.31.2008 %
Italy 115,762 121,103 - 4.4% 178,208 152,356 + 17.0%
Germany 35,060 39,990 - 12.3% 31,686 35,347 - 10.4%
Austria 18,473 19,187 - 3.7% 32,635 28,212 + 15.7%
Total 169,295 180,280 - 6.1% 242,529 215,915 + 12.3%