Prospectus - Notowania

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RISK FACTORS
Increases in the unemployment rate in Italy and in the regions to which the Group is
exposed, the reduced earning-power of the companies and the rise in insolvency rates
with regard to both businesses and private individuals in relation to the payment of
lease fees, could increase the inability of the borrowers of funds to repay the debts
taken out and reduce the market value of the collateral offered against the loans raised.
As at September 30, 2009, the exposure of commercial real estate loans, concentrated
in the CIB business segment, came to €50.9 billion, distributed throughout the
following geographic areas: Italy 50%, Germany 27%, Austria 19%, and Poland 4%.
With regard to the CEE countries (excluding Turkey), exposure as at September 30,
2009 of loans to companies operating in the real estate sector amounted to €6.1 billion,
down with respect to the exposure as at December 31, 2008 totalling €6.5 billion 7 .
The Group handles the risk of default by the counterparts mainly in relation to the
income-earning capacity of the commercial activities undertaken in the properties
leased or being leased and not only the value of the properties and the collateral
offered; despite this fact, it cannot be excluded that the decrease in the value of the
properties and the collateral (or the deterioration of other parameters used for
monitoring the loan) may lead, in certain specific cases, to a negative impact on the
income-earning ability of the counterparts. In particular, the difficulties or problematic
conditions which the counterparts are subject to when operating under impaired
market conditions could have a negative impact on the UniCredit Group’s ability to
achieve the repayment of the amounts financed.
The occurrence of the circumstances described above could have negative effects on
the results and the balance sheet, income statement and financial situation of the
UniCredit Group.
For further details, see the First Section, Chapter 9 and 20.
4.1.11 Risks connected to the loan activity to the naval sector
The UniCredit Group is exposed to risks connected to the loan activities to the naval
sector that was negatively influenced by the recent deterioration of the
macroeconomic context. This sector today is made up of multiple segments, each of
which characterised by specific risk profiles connected not only to different economic
parameters (amongst which, the category of the asset financed, the type of applicants
and charterers) but also to the type of loans in existence (amongst which, the nature of
the loan, its duration, the nature of the underlying guarantees for the loan).
Furthermore, the performance of this sector depends in a decisive way on the overall
turnover of the goods transported, in turn strictly connected to the increase of the gross
internal profit.
7 The data indicated are deduced from the management system and constructed according to internal management logic
which, therefore, do not match with the tables in the explanatory notes attached to the consolidated condensed financial
statements as at September 30, 2009.