Prospectus - Notowania

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RISK FACTORS
demand for financial services, which meant a slowdown in Group activities for
UniCredit, along with an increase in finance costs, a decrease in share prices and the
value of the assets, as well as additional costs deriving from writedowns and
depreciations, with a decrease in profitability (see First Section, Chapters 9 and 20).
Despite a number of recent macro-economic forecasts having been reviewed
positively, there are no certainties with regard to the economic pick-up and in the
event that a further deterioration in the global economic situation or in the countries in
which it operates should come about in the future or the economic pick-up is modest,
the UniCredit Group could suffer further negative consequences with regard to its
operating results and its balance sheet, income statement and financial situation.
Furthermore, the UniCredit Group, despite limited exposure to the risks deriving from
recent instability and from the injections of public capital into financial institutions, is
in any event exposed to the risk of losses if financial institutions or other lending
counterparts become insolvent or in any event are not in a position to meet their
obligations. The performance of the UniCredit Group could also be influenced by the
impossibility of recouping the value of its assets in percentage terms consistent with
its historic recovery estimates, which could in fact emerge as inaccurate in the
changed market context.
A number of specific risk factors are illustrated below, associated in particular with
the fluctuation in interest rates, exchange rates and financial market trends,
particularly affected by the current global financial scenario and on which, what is
more, the UniCredit Group’s results depend.
(a) Risks associated with the fluctuation in interest rates
The performances of the UniCredit Group are influenced by the trend and by the
fluctuation in interest rates in Europe and on other markets in which the
UniCredit Group carries out its activities. In detail, the results of banking and
finance transactions depend on the handling of the exposure to the interest rates
of said UniCredit Group, in other words the relationship existing between the
changes in the interest rates of the reference markets and those of the net interest
income. Any misalignment between interest income accrued by the Group and
interest expense payable by the same (in the absence of suitable instruments for
protecting against this misalignment), could have significant effects on the
financial position and the Group’s operating results.
For further information, reference should be made to the matters described in the
First Section, Chapter 9, of the Prospectus.
(b) Risks associated with exchange rates
A significant part of the UniCredit Group’s activities are carried out in
currencies other than the Euro and mainly in currencies used in CEE countries
and in US dollars (USD). This exposes the UniCredit Group to risks associated
with changes in exchange rates and the monetary market.