OREANDA-NEWS. March 20, 2009. As of the press service of the Bank with the reference to the official press release of Unicredit Group.
 
CONSOLIDATED 2008 RESULTS: NET PROFIT OF EUR4 BILLION, PRO-FORMA CORE TIER I RATIO AT 6.5%

Group’s portion of net profit at EUR 4,012 million

Core Tier 1 ratio at 6.5% pro-forma after the capital increase of EUR 3 billion

Operating profit EUR 10,174 million

Solid performance of the commercial banks with operating profit up by 9.3% YoY

Operating costs unchanged YoY (-0.05%) on a like-for-like foreign exchange and perimeter basis

Cost of risk 62 bp, an increase compared to the 44 bp in 2007, gross NPLs up +3.6% YoY

Proposal to distribute profits by assigning to shareholders newly issued UniCredit shares (“scrip dividend”)

In line with the Group’s governance rules, the CEO, the Deputy CEOs and the Management Committee members will not be awarded any performance bonus for 2008

At the end of December 2008 the Group’s organization consisted of  a staff (3) of 174,519 employees, an increase when compared to the 169,816 headcounts at December 2007. This trend is due to the changes in the perimeter of consolidation (primarily the consolidation of Uksotsbank, 9,670 heads at January 2008, which more than offset the drop due to the sale of Capitalia branches, 945, and the sale of BPH, 3,220).

Net the above mentioned changes the total staff perimeter dropped by approximately 800 headcounts in 2008: the reduction in Italy, Germany and Poland offset the growth in CEE (due to the opening of branches, suspended in 2009). In the fourth quarter, the Group’s staff decreased by 2,873 headcounts, with a drop in both Western Europe and CEE. In the first two months of 2009, the trend continues resulting in the reduction of circa 3,300 FTE.

The Group’s network at the end of 2008 consisted of 10,251 branches (9,714 at December 2007).

The Board of Directors also approved the draft financial statements of UniCredito Italiano SpA, which show net income of EUR3,281mn (EUR 1,858 mn in 2007).

In line with the Group governance model – which provides for a direct link between corporate results and Senior Management variable compensation — no 2008 performance-related bonuses are foreseen for Group CEO, Deputy CEOs and all Management Committee Members.

The Board of Directors has proposed to submit to the next Shareholders General Meeting the assignment of profits to the shareholders, which would be realized by assigning to shareholders newly issued UniCredit shares (“scrip dividend”) deriving from a free capital increase to be executed by allocation of available reserves.

In particular, it will be proposed to the shareholders the attribution of 13 new ordinary shares for every 36 already owned ordinary shares and 1 new saving share for every 5 already owned saving shares, each with a nominal value of EUR 0,50. It is envisaged that the assignment of the newly issued shares to shareholders will be effective on 21st May 2009.

Furthermore, the Board of Directors has proposed the assignment to saving shareholders of a EUR 0,025 cash dividend per share; such dividend, in the amount approved by the Shareholders General Meeting, will be payable on 21st May 2009, with coupon detachment on 18th May 2009.

Notes:
Primarily the RER and SCP portfolios

2007 figures under Basel 1

"Full time equivalent", calculated according to a new methodology which does not include unpaid leaves. In the figures reported the KFS Group, proportionately consolidated, is included at 100%.