The Board of Directors of UniCredit approved the consolidated results for first quarter 2010 which show the Group’s portion of net profit at €520 million, increasing both QoQ (+40.1%) and YoY (+16.5%). UniCredit Group’s exposure to sovereign bonds of Greece, Spain, Ireland and Portugal, as of March 31, 2010, was of around €1,6 billion overall. Furthermore, the UniCredit Group announces that it has appointed BofA Merrill Lynch and its Corporate and Investment Banking Division to explore all strategic options to maximise Pioneer’s overall franchise value.

First quarter 2010 features the consolidation of several positive elements that emerged in previous quarters, which include: the growth of net commissions, stabilization of net interest, and a decline in loan loss provisions. The quarter also stands out for the significant increase in net trading, hedging and fair value income which is more than triple with respect to the prior quarter.

In first quarter 2010 operating income rises 5.6% QoQ to €6,806 million, with all the main components recording a solid performance. With respect to the same quarter in 2009 there is also an increase of 3.7% YoY.

Net interest amounts to €3,917 million in first quarter 2010, a drop YoY when compared to the €4,650 million recorded in first quarter 2009, but basically unchanged with respect to the €4,017 million recorded in fourth quarter 2009.

Net commissions in first quarter 2010 continue to show gradual strengthening, rising both QoQ (+2.6%) and YoY (+17.5%) to €2,169 million. As in the prior quarter, both commissions from asset management, custody and administration and other commissions record an increase QoQ (+6.1% and +0.2% respectively). At March 31st 2010, the assets managed by the Group’s Asset Management Division amount to €185.4 billion, an increase of 5.5% QoQ and with a positive trend in net sales.

Net trading, hedging and fair value income in first quarter 2010 amounts to €560 million, a significant increase with respect to the €151 million reported in fourth quarter 2009 and the -€94 million reported in the same period of the prior year. The excellent quarterly performance is attributable to strong growth in the revenues from Fixed Income and Currencies in Markets business.

Other net income of €99 million are in line with the €105 million recorded in the same period of the prior year.

Operating costs amount to €3,878 million in first quarter 2010, compared to €3,803 million in fourth quarter 2009 and €3,822 million in first quarter 2009. The increase QoQ of +2.0% is primarily attributable to currency and perimeter effects (+1.2% at constant FX and perimeter), variable charges and a drop in the recovery of expenses (which were particularly relevant in fourth quarter 2009). Net of these items, the operating costs show a decline of 0.9% QoQ.

In first quarter 2010 payroll costs amount to €2,322 million compared to €2,277 million in the prior quarter and to €2,296 million in the same period of 2009. The quarterly trend, +1.3% QoQ net the currency effect and on a constant perimeter basis, is explained entirely by variable items (provisions for potential variable compensation and charges linked to future staff reductions), net of those the trend shows a -0.3% QoQ.

Other administrative expenses, net recovery of expenses, reach €1,240 million in first quarter 2010 (compared to €1,176 million in fourth quarter 2009 and €1,226 million in first quarter 2009). The change in the quarter is primarily attributable to currency and perimeter effects and to the decrease of €44 million in recovery of expenses (change QoQ net these items: +0.7%).

Amortization, depreciation and impairment losses on intangible and tangible assets in first quarter 2010 amount to €317 million, compared to €351 million in fourth quarter 2009 and €301 million in first quarter 2009.

The cost/income ratio for first quarter 2010 drops both QoQ (-2.0 p.p.) and YoY (-1.3 p.p.) coming in at 57.0%.

Operating profit in the first quarter of 2010 amounts to €2,928 million, a decided increase with respect to both fourth quarter 2009 (+10.9%) and to first quarter 2009 (+6.9%).