UniCredit reported a profit of €403 m in the second quarter of 2014. The positive financial result considerably exceeds the expectations of financial analysts who forecasted a profit of € 330 m.

The net profit of UniCredit for the first half of the year reached €1.1 bn, which brought the Group closer to its target at the end of 2013 to generate an annual profit of € 2 bn for 2014. In contrast to the first half of 2013, profits of the leading European bank group have increased by 38% despite the challenging microeconomic environment. Operating profit remains at good levels thanks to the efficient cost management.

In the second quarter UniCredit continues to improve its capital indicators. Towards the middle of the year the Group CET1 ratio increased to 10.4%. At the same time asset quality keeps improving, provisions reporting a reduction. The Group has an extremely high coverage ratio above 51%.

Figures show that all divisions and countries contribute to the positive result. CEE region is a key contributor to Group result.

The business in Italy has started to recover. After the recession in the country which lasted for a long time Italy made the greatest contribution to the net profit of UniCredit for the period thanks to improved assed quality and the large number of loans.

Federico Ghizzoni, CEO of UniCredit commented at today's meeting of the Board of Directors: "The positive results achieved in this quarter confirm the Group’s strong performance, despite the uncertain macroeconomic environment. These results bring us closer to our target of c. €2 bn net profit for 2014, which is now more challenging in light of the revised tax charge on the valuation of the stake in Banca d’Italia, not included in our projections". He summarized that the financial results secure the bank's position as one of the most solid banks in Europe with CET1 ratio exceeding 10%.

"Geographical diversification remains one of our key strengths. Italy displays increasing profitability and new loan origination increases by over 50% versus first half 2013, confirming our commitment to support the real economy”, said Ghizzoni.

Key Financial Data for the second quarter of 2014:

• Net profit: €403 m (€618 m excluding taxes on the stake in Banca d’Italia)

• Revenues: €5.7 bn

Total costs: €3.4 bn

More information for clients:

UniCredit Bulbank, Call Centre

Phone: 0700 1 84 84

More information for media:

UniCredit Bulbank, Identity & Communications Department

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Ekaterina Ancheva, Phone: + 359 2 9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch

Magdalena Ivanova, Phone: + 359 2 9232 528, nbhebmfob/jwbopwbAvojdsfejuhspvq/ch