The Board of Directors of UniCredit approved today the 2011 results, with a Group Loss of €9,206 million.

The profitability of 2011 has been affected by several non-operating and one-off items, amounting to -€10,317 million (of which -€133 million in 4Q11) mostly related to: Goodwill and Trademark Impairment, Losses on Investments and Integration Costs.

UniCredit closed the full-year 2011 with a Net Profit, net of one-offs, at €1,110 million (vs. €1,528 million in 2010).

Federico Ghizzoni, CEO of UniCredit says: ‘The underlying performance in 2011 showed the resilience of the Group in a very challenging environment, that and the significant rebound of the results of our Italian business, proves the pertinence of our actions and our targeted strategic approach.

After our very successful capital increase, a seamless execution of our Strategic Plan, focusing on increasing the client business and cross selling in our franchise as well as stricter management of our resources and risks will allow us to deliver a higher profitability to our shareholders.’

In 4Q11 Net Profit amounts to €114 million net of taxes, while adjusted Net Profit amounts to €247 million, calculated net of one-offs due to Greek bonds impairment (€70 million net of taxes) and severance costs (€63 million net of taxes). Although quarterly results are affected by financial markets volatility, due to Sovereign debt crisis and negative macroeconomic environment, the main operating lines are showing improvements.

How the Group performed:

• 4Q11 back to profit

As stated on the occasion of the 3Q11 results, UniCredit was expecting to get back to profitability in 4Q11. The recovering of 4Q11 operating results demonstrate that UniCredit is on the right path; in detail:

- Revenues up quarter/quarter with stable core revenues and positive Trading Income reflecting more favorable market conditions and a more focused approach;

- Costs down (-2.1% quarter/quarter) driven by Staff Expenses reduction and non-HR costs influenced by seasonality;

- Loan Loss Provisions retracting after 3Q11 spike, with cost of risk decreasing to 106 bp in 4Q11.

• Further improved Liquidity & Funding position

Despite a challenging environment in 4Q11, we successfully focused on the execution of our Funding Plan mainly through our Network, improving Loans/Deposits ratio, being able to continue to refinance longer maturities.

As of today, over 30% of our 2012 Funding Plan has already been realized (36% in Italy).

• A sound and sustainable balance sheet

A very solid balance sheet confirmed with a Core Tier 1 ratio at 8.40% under Basel 2.5 and about 10% pro-forma after the recent successful capital increase, well above the 9% required by EBA.

• Execution of our Strategic Plan well on track

With the Strategic Plan evolution UniCredit is on target. The capital increase was successfully completed; with regard to Italy turnaround, the positive trend in Italy is confirmed thanks to the re-pricing actions, cost control and declining provisions.

As for Business refocusing, CIB is on schedule with the run-off portfolio (€4 billion) and a better than expected 2011 RWA management (€15 billion).

With regard to Cost Management, several actions aimed at reducing costs are already on-going.

Full information about the results is available at www.unicreditgroup.eu