1. The Funding of Sustainable Development EMN Annual Conference Milan - 5 June 2009

2. 2 1888 Birth of the Banca San Paolo di Brescia (BSPB) 1883 Birth of the Credito Agrario Bresciano (CAB) 1963 BSPB acquires Banca di Valle Camonica (BVC) 1992 Acquisition of Banco di San Giorgio (BSG) by CAB 1998 Merger of CAB and BSPB with the creation of Banca Lombarda as parent company and contribution of branch network of CAB and BSPB to Banco di Brescia 2000 Acquisition of Banca Regionale Europea* by Banca Lombarda. The Group takes the name of Banca Lombarda e Piemontese Group Birth of the Banca Mutua Popolare della Città e Provincia di Bergamo then renamed Banca Popolare di Bergamo (BPB) 1869 Birth of the Società per la Stagionatura e lAssaggio delle Sete ed Affini (later renamed Banca Popolare Commercio e Industria BPCI) 1888 Merger of BPB and Credito Varesino (BPB- CV) 1992 Acquisition of Banca Popolare di Ancona (BPA) by BPB- CV. Birth of the BPB-CV Group 1996 Acquisition of Centrobanca by BPB-CV, Birth of Banca 24-7 (BPB-CV Group) 2000 Acquisition of Banca Carime by BPCI 2001 Birth of the BPU Banca Group from the integration of BPB-CV and BPCI 2003 1 st April 2007 Birth of UBI Banca following the merger of the BPU Banca Group and the Banca Lombarda e Piemontese Group *Banca Regionale Europea was created in 1994 following the merger between Cassa di Risparmio di Cuneo and Banca del Monte di Lombardia UBI Banca was formed on 1 April 2007 following the merger of the Banche Popolari Unite Group and the Banca Lombarda e Piemontese Group

3. The UBI Group: Predominant Retail Business and Strong Northern Italian Franchise Mkt Share >= 15% 5% <= Mkt Share < 15% 2% <= Mkt Share < 5% Market share < 2% 58 18 43 124 103 56 12 121 888 113 6 222 122 8 2 22 1 44 Northern Italy:** 71% deposits 84% loans 65% branches Group activity focussed on the Retail segment 4 million clients**, mainly retail; at network bank level approx. 77% of revenues are generated by retail customers, 17% by corporate customers and 6% by private banking clients As at 31 March 2009: Total loans : 96,9 bln (96,4 as at 31.12.2008) Total direct funding: 95,7 bln (97,2 as at 31.12.2008) Total indirect funding : 73,4 bln (74 as at 31.12.2008) Good credit quality: as at 31 st March 09, NPL/total loans: 0,98%, net impaired loans /total loans: 1,3% - cost of credit 66 bps Low risk profile: Funding mainly from customer base (86%) and limited recourse to international financial markets (14%) Defensive business mix: focus on commercial customer business, with a non aggressive commercial policy No exposure to subprime mortgages and related instruments * As at 26 May 2009 ** As at 30 September 2008 1.964 branches in Italy + 9 branches abroad First Italian cooperative banking Group by market capitalization (6,3 bln*), organized as a federal model, comprising nine network banks and several highly specialized product companies, offering a wide range of financial services and products. 1 Number of branches as at 24 March 2009 Market shares as at Sept 2008 3

4. 4 Close to 4 Million Clients with a Very Large Retail Component*** * Calculated as Net Interests + Net Commissions by market over Markets Total (Retail + Corporate + Private) ** Includes other Retail clients *** Commercial segmentation: Private: Assets > 500k Euro, Mass Market: Assets 150 Euro Million

5. 5 The Group structure (1/2): Multi-functional Federal Model, Highly Integrated at Commercial, Organizational and Financial Level with Centralised Risk Monitoring Mission Presence in reference markets Distinctive capability to understand and serve local economies Drivers Service model differentiated by customer segment Sharing of the same organizational structure Sharing of tools and services provided by parent company Mission Competitive product and services offering, in line with market best practice Drivers Continuous product innovation Ability to listen to distribution network requirements Mission Management, co-ordination and control Leading business functions Provision of key support services Centralised risk monitoring 9 Network Banks Product companies Parent Bank: UBI Banca

6. 6 361 branches 358 branches 216 branches 291 branches 259 branches 318 branches 59 branches 52 branches 38 branches 924 financial advisors (7) 9 NETWORK BANKS ASSET MANAGEMENT UBI Pramerica (partnership with Prudential US) CONSUMER CREDIT B@nca 24-7 CORPORATE BANKING Centrobanca FACTORING UBI Factor LEASING UBI Leasing NON-LIFE BANCASSURANCE UBI Assicurazioni LIFE BANCASSURANCE Aviva Vita (Partnership with Aviva) Lombarda Vita (Partnership with Cattolica) ON LINE TRADING IW Bank (listed company) MAIN PRODUCT COMPANIES (listed cooperative Bank) provides management, co-ordination, control and supply of centralized services to the network (1) and 19.98% by Fondazione Cassa di Risparmio di Cuneo and 19.98% by Fondazione Banca del Monte di Lombardia and the rest by minority shareholders; (2) and 16.64% by Aviva SpA; (3) and the rest by minority shareholders; (4) and 14.15% by Aviva SpA and the remaining by minority shareholders; (5) and (6) by minority shareholders. Data as at 30 September 2008 (7) Number of financial advisors as at 31 Dec 2008 100.00% 83.36% (2) 59.95% (1) 100.00% 99.29% (3) 85.83% (4) 82.96% (5) 91.16% (6) The Group structure (2/2) Number of branches updated as at 24 March 2009

7. 7 Distribution Model Specialized by Market as Enabling Factor of Commercial Approach Differentiated by Segment Main Characteristics PrivateCorporate Commercial Area Parent Bank Retail Branch Network Bank RetailCorporatePrivate Private Banking Unit Corporate Banking Unit Retail Territorial Area Retail Distribution Structure Commercial Area Divisional model (Retail, Private, Corporate) with customer segmentation (Mass Market, Affluent, Small Business, Private, Corporate) 2 Linearity of commercial processes by market between the Parent Company and the Network Banks 3 Relationship with the customers focused by segment with specialized account managers (Mass Market, Affluent and Small Business Account Managers, Corporate Account Managers and Private Bankers) 4 Commercial targets by Market and with differentiated KPIs according to the segments characteristics 5 Clear separation between commercial and lending processes 1 Commercial Area Parent Bank General Management

8. 8 Microcredit: Italy in the European context In recent years Italy has become a high immigration rate Country and according to a recent World Bank Study, the ratio of exclusion from financial services reaches 25% of the population, one of the highest the European Union. Nevertheless services in microfinance (especially microcredit) are under developed. Source: Overview of the Microcredit Sector in the European Union 2006-2007 EMN Working Paper n. 5

9. Absence of dedicated regulation Misinterpretation of the meaning: often considered as a social mean of support (redistribution of wealth – preferential and assistential welfare regime) instead of creation of new entrepreneurial opportunities. The problems of microcredit in Italy Political/Regulatory Context Microfinance organizations General Fragmentation (limited size and geographic distribution) Difficulty in working with commercial banks (due to the compulsory regulation which must be respected) Reliance especially on donations / guarantee funds and volunteer activities Welfare model (very low or no interest rates and reduced attention to default rates) Difficulty in raising funds Low medium/long term economic sustainability Limited results (in terms of credit facilities granted and beneficiaries reached) Skill fragmentation and lack of scoring models

10. MFIs from Italy Context of Activity/ Legal Status Microcredit Personal Loans Financing Microfinance activity International 666,7% NonProfit 444,4% Profit 222,2% Domestic26,7%111,1% NonProfit13,3% Profit13,3%111,1% Local2893,3%222,2% NonProfit2583,3%222,2% Profit310,0% Overall Total30100,0%9 Source: www.microfinanza-italia.org Mostly small initiatives promoted on a local level by Public Administration or Banking Foundations. Almost none grants credit directly, the majority promote Guarantee Funds, leaving the loan facilities to Banking Institutions

11. Funding model and terms are the biggest weaknesses of MFIs from both Eastern and Western Europe. Not only lack of funding, but also missing strategy Funding related needs: Developing fund raising and long term funding strategies Funding operational costs relating to growth and to increase outreach Funding of incentives to scale up operations Scale from 1 – weak to 4 – strong. EIF Market Study Microlending (1/3) Survey Results - Funding

12. The organization needs to: Adopt a professional, not an assistential, approach, Assume the risk directly by granting credit Pursue economic sustainability Economies of scale (significant volumes and standardized processes) Adequate rates to cover financial costs (access to credit vs. rate levels) Moderate Default Probability ( safety net network + credit scoring) Income Statement Integration (complementary revenues + territorial and/or communitarian funds) for coverage o Selection and Support costs o Creation of a Territorial Network Operational Model (1/2)

13. Different funding needs and sources Financing of start-up costs, Equity capital, Temporary and over-time-decreasing subsidies for operational costs, Budget to co-finance specific capacity building activities (Training, MIS, Mutual Exchange, etc.) Key findings from the EIF Market Study Microlending: Potential Funding Model for MFIs in the EU

14. Operational Model Proposal SPECIALIZED FINANCIAL INTERMEDIARY NATIONAL AND COMMUNITARIAN INSTITUTIONS ASSOCIATIONS AND LOCAL AUTHORTITIES FINANCIAL PARTNER OF NATIONAL LEVEL FOUNDATIONS AND ASSOCIATIONS Funds for structural investments Funds for supporting activity Guarantee Funds Target Individuation Communication Selection and Support Territorial Network Equity Territorial Network Complementary Products and Services

15. The Expected Partnership Benefits Equity Support to the development of the territorial network Network Banks (corner in branches) Collateral Products and Services for Income Statement integration Product Companies Cost Control (synergies) Institutional Recognition Specialized Financial Intermediary Financial Partner Positioning in a sector of high social value Bespoken products focused on the defined target (ex. InItaly for immigrants) Potential acquisition of new clientele New bankable subjects Partners of relevant social organizations