IL SISTEMA BANCARIO BULGARO E UNICREDIT BULBANK

IL SISTEMA BANCARIO BULGARO E UNICREDIT BULBANK Sofia, 07 June 2010 Aldo Andreoni Head of International Department CIB & PB Forum Economico “ Bulgaria-Italia: insieme per uscire della crisi” Panel tecnico. “ I protagonisti della ripresa: mezzi e strumenti per il rilancio degli investimenti

Credit growth has stalled Bulgarian banking sector: Loans growth (Jun`2006 – Mar`2010, yoy) ,[object Object],[object Object],Source: BNB Bulgarian banking sector: Loans growth forecast (2007- 2015 f, yoy ) Source : BNB, UniCredit Bulbank forecast

Deposit growth remains more resilient, despite recession ,[object Object],[object Object],Bulgarian banking sector: Deposit grwoth (Jun`2006 – Mar`2010, yoy) Bulgarian banking sector: Deposits growth forecast (2007- 2015 f, yoy ) Source: BNB Source : BNB, UniCredit Bulbank forecast

Although indebtedness remain moderate for the economy as a whole, some deleveraging pressure is likely in the most overheated sectors such as real estate and construction. Source: NSI, UniCredit Bulbank Economic Research

[object Object],[object Object],[object Object],In early 2010, free liquidity was used to reduce some of the most expensive sources of foreign funding Bulgarian banking sector: External position (Dec`07 – Mar`10) Source : BNB, UniCredit Bulbank forecast Note: Forecasts are draft-projections agreed with Strategic Research Team in Vienna for the 5Y Pan in March 2009 Bulgarian banking sector: Liquidity indicators (Dec`07 – Mar`10)

Despite challenging profitability backdrop banks in Bulgaria continued cutting loan-to-deposit interest rate spread Loan-to-deposit interest rate spread (Feb 2004 – Mar 2010) Source: BNB, UniCredit Bulbank Economic Research Retail loan-to-deposit interest rate spread Corporate loan-to-deposit interest rate spread

Bulgarian banking sector looks well positioned to deal with the implications of recession Source: BNB * Bad and restructured loans – the total amount of balance sheet loans exposures, which are classified as “substandard exposures” (the principal or interest arrears payments have been past-due 61 to 90 days), “non-performing exposures” (the principal or interest arrears payments have been past-due over 90 days) and restructured loans (regardless of the group they are classified in) as per Ordinance No. 9 of BNB, is included. ,[object Object],[object Object],Bulgarian banking sector: NPL’s (1Q 2007 – 1Q 2010) Bulgarian banking sector: Bad and restructured loans (Dec 2007 – Mar 2010)

In early 2010, the profitability of Bulgarian banking sector remains under pressure ,[object Object],[object Object],P&L of the banking system (2007 – 2010f*) Source: BNB, UniCredit Bulbank Economic Research

Despite the crisis Bulgaria will remain an attractive market looking forward… Bulgaria : Return on assets ( ROA ), before tax Bulgaria : Return on capital ( ROE ), before tax Bulgarian : Cost to Income ratio ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source : BNB, UniCredit Bulbank 5Y Plan draft forecast

MARKET POSITIONING UniCredit Bulbank is the market leader in the Bulgarian banking system, with 16% market share in assets … ,[object Object],[object Object],[object Object],[object Object],[object Object],* Adjusted with the effect of re-imported loans

MARKET POSITIONING … with profitability, efficiency, asset quality and balance sheet structure better than banking system levels * Source: Regulatory financial statements for both the banking system and UniCredit Bulbank as of 31.03.2010. -0.9 pp - 5.2pp - 3.3 pp 0.3 pp 2.1 pp ,[object Object],[object Object]

PROFIT AND LOSS (consolidated*) Strong performance with Net Profit at BGN 39 mln, which is about ¼ of the total banking system net profit * Consolidated financial statements of UCI Bulbank include HVI and UniCredit Factoring ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

* Consolidated financial statements of UCI Bulbank include HVI and UniCredit Factoring BALANCE SHEET (consolidated*) Balance sheet re-positioned in line with the strategic focus on customer business; Securities down by 15.5%; Net Loan/Deposits ratio improved by 165 bps ,[object Object],[object Object],[object Object],[object Object]

AWARDS OF UNICREDIT BULBANK 2009 Best Bank in BG Bank of the year in BG Best Bank in BG Best Custodian in BG CSR Award CSR Award

IL SISTEMA BANCARIO BULGARO E UNICREDIT BULBANK

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IL SISTEMA BANCARIO BULGARO E UNICREDIT BULBANK