Board of Directors approved the Group's consolidated 2004 year-end financial results. In 2004 the UniCredit Group achieved net profit of ? 2,131 million (mn), as compared with ? 1,961 mn in 2003, with growth of 8.7% YoY. ROE rose to 17.9% vs. 17.7% in 2003, whilst EPS increased to ? 34 cents, compared to ? 31 cents in the previous year.

Board of Directors approved the Group's consolidated 2004 year-end financial results

In 2004 the UniCredit Group achieved net profit of ? 2,131 million (mn), as compared with ? 1,961 mn in 2003, with growth of 8.7% YoY. ROE rose to 17.9% vs. 17.7% in 2003, whilst EPS increased to ? 34 cents, compared to ? 31 cents in the previous year.

2004 year-end net interest income amounted to ? 5,200 mn, growing by 4.3% YoY. Customer loans, which totalled ? 140.4 bn, increased by 10.8% vs. December 2003.

Operating profit amounted to ? 4,434 mn and featured a dip of 5.8% YoY. The trend in operating profit was due to a marginal YoY decrease of total revenues (-0.7%), accompanied by operating costs up by 3.5% YoY. Revenue and cost dynamics led to a full-year cost/income ratio of 57.3%, as compared with 55% in 2003.

New Europe Division

During 2004 the New Europe Division (consolidating results of 7 different banks including Bulbank, operating in 8 countries) further strengthened its leading position by size and profitability, featuring strong growth and progressive reduction of the cost of risk due.

Divisional net profit totalled ? 585 mn with an increase in of 22.8% YoY thanks to strong performance by all banks. The cost/income ratio was 55.2%, showing improvement over the previous year (56.0% at 2003 year-end).

Total revenues amounted to ? 1,835 mn, growing by 4.8% over the previous year, thanks net interest income growth by 2.8% (to ? 1,154 mn with revenues from financial transactions grew by 9.4% YoY (to ? 128 mn).

Depreciation and amortisation of tangible and intangible fixed assets (? 139 mn) increased by 4.5% over 2003 also because of depreciation of investments related to the new information systems in Bulbank.

The Division's customer loans totalled ? 14.0 bn, growing by 10.6% YoY, customer deposits rose to ? 22.3 bn.

Excellent control of credit risk translated into a reduction in net provisions (? 125 mn, -19.4% YoY), accompanied by an improvement of the coverage ratio for non-performing loans (from 81.4% in 2003 to 84.8% in 2004) and for doubtful loans (from 64.0% to 70.8%).

Operating profit amounted to ? 822 mn, growing by 6.6% YoY. As at 2004 year-end, the division's employees totalled 27,568 with 1,287 branches over 8 different countries.