Unicredit — Earnings Release 2022

May 5, 2022

Informazione Regolamentata n. 0263-61-2022		Data/Ora Ricezione 05 Maggio 2022 06:58:45	Euronext Milan
Societa'	:	UNICREDIT
Identificativo Informazione Regolamentata	:	161617
Nome utilizzatore	:	UNICREDITN05 - Berneri
Tipologia	:	2.2
Data/Ora Ricezione	:	05 Maggio 2022 06:58:45
Data/Ora Inizio Diffusione presunta	:	05 Maggio 2022 06:58:47
Oggetto	:	setting first quarter delivering UniCredit Unlocked targets across all metrics	UniCredit: 1Q22 Group Results. Record
Testo del comunicato

Vedi allegato.

MILAN, 5 MAY 2022

UNICREDIT: 1Q22 GROUP RESULTS¹

RECORD SETTING FIRST QUARTER DELIVERING UNICREDIT UNLOCKED TARGETS ACROSS ALL METRICS

1Q22 net profit at €1.2 billion² , resulting in healthy organic capital generation of 44 basis points, net revenues of €4.7 billion and cost/income ratio of 47.8 per cent, excluding Russia³

Prudent Group Loan Loss Provisions of €1.3 billion booked in 1Q22; low Cost of Risk at 5 basis points, excluding Russia

Best-in-class capital position with 1Q22 CET1 ratio at 14.0 per cent post 2021 €1.6 billion share buyback, 1Q22 €0.4 billion dividend accrual⁴ and impact of LLPs

€1.6 billion 2021 share buyback confirmed; confidence in delivering remaining €1 billion share buyback⁵ , subject to Russia performance

Well positioned to absorb potential spill-over macroeconomic effects⁶ due to robust capital position, prudent coverage, and diversified and resilient franchise

Excellent 1Q22 with all businesses⁷ beating UniCredit Unlocked 2022 guidance⁸ and continuing 2021's quarterly advancements across all regions, with profitability above the cost of equity; 1Q22 RoTE at 10.2 per cent, excluding Russia

Running ahead of ESG total volume targets 2022-2024

Confident that franchise excluding Russia will meet 2024 UniCredit Unlocked RoTE and organic capital generation targets, with all key levers contributing

Committed to 2021-2024 distribution of at least €16 billion assuming our base case macroeconomic scenario and achievement of the Strategic Plan

On 4 May 2022, the Board of Directors of UniCredit S.p.A. ("UniCredit" or "the Group") approved the Consolidated Results of the Group as at 31 March 2022.

The quarter sets a number of records on revenues, costs and net profit, following a very successful 2021 that demonstrates the strong commercial momentum within the business. Excluding the impact of Russia, the Group posted €1.2 billion net profit, resulting in healthy organic capital generation of 44 basis points, net revenues of €4.7 billion, up 7.9 per cent year on year, and cost/income ratio of 47.8 per cent.

¹ All figures are related to consolidated Group, unless otherwise stated that they are Group excluding Russia.

² 1Q22 Group stated net profit at €1.2 billion.

³ Russia includes the local bank and legal entities, plus the cross-border exposure booked in UniCredit SpA, see page 10 for the Russia segment 1Q22 results. For Group consolidated results, including Russia, see page 11.

⁴ 2022 cash dividend at 35 per cent of Net Profit excluding Russia, net of AT1, CASHES coupons and impacts from DTAs from tax loss carry forward contribution (zero in 1Q22).

⁵ Subject to supervisory approval.

⁶ Spill-over macroeconomic effect considers second degree impact of conflict in Ukraine on rest of the Group excluding Russia.

⁷ Excluding Russia. ⁸ UniCredit Group 2022 financial guidance available in section "Group excluding Russia key financial 2022 guidance" at page 12.

In the first quarter the Group prudently booked €1.3 billion Loan Loss Provisions (LLPs) almost entirely against Russia. UniCredit is positioned to incorporate possible spill-over macroeconomic effects⁶ due to strong capitalisation and asset quality, including sizeable overlay LLPs. Our Cost of Risk, excluding Russia, is confirmed at 30 to 35 basis points for this year and for the 2022-2024 Strategic Plan period. For the first quarter it was almost zero, at 5 basis points, without releasing overlays.

At the April 8 th AGM, shareholders approved a total 2021 distribution of €3.75 billion, which includes the already paid €1.2 billion cash dividend plus €2.6 billion in the form of share buybacks. The 2021 first planned share buyback tranche of €1.6 billion has received supervisory approval and is intended to commence as soon as possible, while the remaining €1 billion share buyback⁵ is subject to Russia performance. The cash dividend and initial share buyback tranche represent a compelling yield of 20 per cent.

The Group's 1Q22 CET1 ratio stood at 14.0 per cent, above the 2022-2024 12.5-13.0 per cent target range, absorbing, already in 1Q22, 92 basis points of capital impact from Russia⁹ (of which 50 basis points of participation capital impact and 40 basis points as a result of applying conservative coverage of around 30 per cent on the net cross-border exposure) and the €1.6 billion share buyback. Considering the very strong capital position of UniCredit and the high levels of existing provisions, management remains confident in its ability to execute the full 2021 shareholder distribution of €3.75 billion.

UniCredit confirms its financial guidance for 2022⁸ , adjusted for the impact of Russia. This is based on the UniCredit macroeconomic base case scenario of UniCredit footprint GDP growth of around 2.6 per cent in 2022 and 3.1 per cent in 2023, with inflation assumed at 5.9 per cent in 2022 and 2.4 per cent in 2023¹⁰ .

The UniCredit Unlocked 2024 financial ambitions of average organic capital generation of 150 basis points, incremental net revenue of c. €1.1 billion and a RoTE of c. 10 per cent are confirmed with positive results already being delivered by combining the three levers of net revenues, costs and capital efficiency. The Bank continues its focus on the execution of the 2022-2024 Strategic Plan to fully unlock the value of UniCredit and is committed to deliver attractive and sustainable returns, with the ambition to return at least €16 billion to shareholders by 2024.

The Group is trending well ahead on UniCredit Unlocked targets for environmental lending, ESG Investment Products and Social Lending, and are on track to deliver origination of Sustainable Bonds over the plan.

Key recent events include the following:

• Yapi Kredi disposal concluded, with residual capital impacts to be booked in 2Q22;
• €1.2 billion 2021 dividend paid on 21 April 2022;
• 2021 first share buyback tranche of €1.6 billion approved¹¹ and expected to commence as soon as possible;
• UniCredit SpA's 'BBB/Positive' issuer rating affirmed by S&P.

⁹ For further information refer to the 1Q22 Market Presentation.

¹⁰ GDP and inflation growth of Group footprint are calculated based on a weighted GDP and inflation average of the respective countries (excluding Russia). ¹¹ Shareholder and supervisory approval.

Andrea Orcel, Chief Executive Officer of UniCredit S.p.A. :

"UniCredit delivered another excellent quarter of high quality financial results across all our businesses, setting records across a number of key metrics, demonstrating the inherent value and commercial dynamism of our franchise and people. Healthy organic capital generation means we have maintained a very strong CET1 ratio of 14.0 per cent, which includes €1.6 billion for the 2021 share buyback, dividend accrual and the negative impact of our exposure to Russia.

The first months of 2022 have been marked by extreme geopolitical and macroeconomic uncertainty. Whilst challenges undoubtedly lie ahead for the global economy due to the war in Ukraine and its broader impact, UniCredit is entering this period with a resilient and profitable model, and prudent capital and existing provisions. This gives us confidence in our ability to execute on our 2022-24 Strategic Plan, and to continue supporting our communities, clients and the financial system during this turbulent period."

1Q22 KEY FIGURES GROUP EXCLUDING RUSSIA

• Total Revenues: €4.8 bn, up 12.0 per cent Q/Q and up 5.5 per cent Y/Y
• Net Revenues: €4.7 bn, up 35.0 per cent Q/Q and up 7.9 per cent Y/Y
• Net Interest Income (NII): €2.2 bn, down 4 per cent Q/Q and up 5.5 per cent Y/Y
• Fees: €1.8 bn, up 9 per cent Q/Q and up 8 per cent Y/Y
• Trading income: €701 m, strongly increased Q/Q and up 15.4 per cent Y/Y
• Operating costs: €2.3 bn, down 5 per cent Q/Q and down 3 per cent Y/Y
• Cost/Income ratio: 47.8 per cent, down 8 p.p. Q/Q and down 4 p.p. Y/Y
• Net profit: €1.2 bn, up 91.1 per cent Q/Q and up 48.0 per cent Y/Y
• Stated net profit: €1.2 bn, strongly increased Q/Q and up 37.8 per cent Y/Y
• RoTE: 10.2 per cent, up 5 p.p. Q/Q and up 3 p.p. Y/Y
• EPS: €0.53, up 94 per cent Q/Q and up 51 per cent Y/Y
• Group CET1 ratio: CET1 ratio at 14.0 per cent, down 1 p.p. Q/Q and down 2 p.p. Y/Y
• Risk Weighted Assets (RWAs): €308.9 bn, down 0.5 per cent Q/Q and up 1.8 per cent Y/Y
• LLPs: -€0.1 bn, down 93.2 per cent Q/Q and down 64.6 per cent Y/Y
• Cost of Risk (CoR): 5 bps, down 67 bps Q/Q and down 9 bps Y/Y
• Group gross NPE ratio: 3.5 per cent, flat Q/Q and down 1 p.p. Y/Y

KEY HIGHLIGHTS GROUP EXCLUDING RUSSIA

A record setting quarter, beating targets across all metrics, with €1.2 bn of net profit² , resulting in healthy organic capital generation of 44 bps.

Net revenue reaching €4.7 bn, up 7.9 per cent Y/Y, reflecting the LLPs close to zero in this quarter and strong capital-light, high risk adjusted return growth across the regions.

Total Revenues stood at €4.8 bn, up 12 per cent Q/Q and up 5.5 per cent Y/Y, driven by higher fees and net interest income.

NII was at €2.2 bn up 2 per cent Q/Q when adjusting for one-off items and days effect. Fees were €1.8 bn, up 9 per cent Q/Q and up 8 per cent Y/Y, delivering another excellent performance and further demonstrating our commercial momentum.

Costs at €2.3 bn down 5 per cent Q/Q and down 3 per cent Y/Y. The Group's cost discipline and continued focus

UniCredit's asset quality¹² remains sound, with Group gross NPE ratio at 3.5 per cent and Net NPE ratio at 1.6 per cent. CoR is close to zero, at 5 bps, reflecting our historically prudent approach on classification and provisioning.

on cost efficiency resulted in a Cost/Income ratio of 47.8 per cent in 1Q22, down 8.4 p.p Q/Q and down 4 p.p. Y/Y.

UniCredit - Public

In the first quarter the Group prudently booked €1.3 bn Loan Loss Provisions (LLPs) almost entirely against Russia.

The Group CET1 ratio is a strong 14.0 per cent and factors in the deduction of the 2021 €1.6 bn share buyback and €0.4 bn dividend accrual⁴ .

Group Tangible equity was €52.3 bn, down 1.0 per cent Q/Q and up 1.1 per cent Y/Y, while Group tangible book value per share was €23.9, up 0.3 per cent Q/Q and up 3.9 per cent Y/Y. The RoAC of all regions in the 1Q22 is double-digit despite booking the majority of systemic charges, €0.7 billion, as always, in the first quarter.

The initial tranche of UniCredit's 2021 share buyback of €1.6 bn will commence as soon as possibile and management is confident in its ability to execute the remaining €1 bn, subject to Russia performance and supervisory approval, keeping the full 2021 distribution of €3.75 bn intact. This assumes the UniCredit baseline macroeconomic scenario of a UniCredit footprint GDP growth of around 2.6 per cent in 2022 and 3.1 per cent in 2023, with inflation assumed at 5.9 per cent in 2022 and 2.4 per cent in 2023¹⁰ .

In terms of our 2022 shareholder distribution, if our baseline macroeconomic scenario remains valid by the end of the first quarter 2023 and we have achieved our 2022 UniCredit Unlocked financial ambitions, which we are confident that we will, we will seek authorisation at next year's AGM for the same distribution as for 2021 of €3.75 bn.

Investor Relations: Tel. +39-02-886-21028 e-mail: : investorrelations@unicredit.eu Media Relations: Tel. +39-02-886-23569 e-mail: mediarelations@unicredit.eu

UNICREDIT 1Q22 GROUP RESULTS – DETAILS OF CONFERENCE CALL

MILAN, 5 May 2022 – 10.00 CET

ITALY: +39 02 802 09 11 UK: +44 1212 818004 USA: +1 718 7058796

THE CONFERENCE CALL WILL ALSO BE AVAILABLE VIA LIVE AUDIO WEBCAST AT

https://www.unicreditgroup.eu/en/investors/group-results.html, WHERE THE SLIDES WILL BE DOWNLOADABLE

¹² NPEs excludes exposures classified as held for sale.

UNICREDIT GROUP CONSOLIDATED RESULTS EXCLUDING RUSSIA

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
Total revenues	4,537	4,275	4,787	+12.0%	+5.5%
o/w Net interest	2,062	2,269	2,175	-4.2%	+5.5%
o/w Fees	1,692	1,674	1,826	+9.0%	+7.9%
o/w Trading	608	205	701	n.m.	+15.4%
Operating costs	-2,347	-2,401	-2,287	-4.8%	-2.6%
Gross operating profit	2,190	1,874	2,501	+33.5%	+14.2%
Loan Loss Provisions	-148	-768	-52	-93.2%	-64.6%
Net operating profit	2,042	1,106	2,448	n.m.	+19.9%
Stated net profit/loss	844	-1,467	1,162	n.m.	+37.8%
Net profit	785	608	1,162	+91.1%	+48.0%
CET1 ratio	15.9%	15.0%	14.0%	-1 p.p.	-2 p.p.
RoTE	6.9%	5.2%	10.2%	5 p.p.	3 p.p.
Customers loans excl. repos and IC	406,218	407,460	411,334	+1.0%	+1.3%
Gross NPE	21,840	15,853	15,499	-2.2%	-29.0%
Deposits (excl. repos)	442,906	466,278	470,595	+0.9%	+6.3%
Cost/income ratio	51.7%	56.2%	47.8%	-8 p.p.	-4 p.p.
Stated cost of risk (bps)	13	72	5	-67	-9

Note: Group excluding Russia net profit excludes the regulatory headwinds impact on CoR (-€217 m in 4Q21), real estate valuation (+€4 m in 1Q21, - €26 m in 4Q21), severance (-€734 m in 4Q21), other integration costs (-€216 m in 4Q21), Yapi Kredi deconsolidation (-€1,644 m in 4Q21), legal entity sale (-€554 m in 4Q21) and DTA write-up (+€1,164 m in 4Q21). Furthermore, it is net by AT1 (-€24 m in 1Q21, -€153 m in 4Q21) and cashes charges (-€30 m in 1Q21). CET1 ratio corresponds to Group CET1 ratio including Russia.

Total revenues up 12.0 per cent Q/Q and up 5.5 per cent Y/Y to €4.8 bn in 1Q22, with continued strong fees (+9.0 per cent Q/Q, +7.9 per cent Y/Y) offset by weaker quarterly trends in NII (-4.2 per cent Q/Q, +5.5 per cent Y/Y). Net revenues reached €4.7 bn in 1Q22, up 35 per cent Q/Q and up 8 per cent Y/Y.

In 1Q22, NII stood at €2.2 bn, down 4.2 per cent Q/Q. Adjusted for a positive non-recurring item in Germany in 4Q21 and days effect, NII was up 2 per cent Q/Q, also supported by recovering demand for credit. Average client loan volumes are up €8 bn Q/Q driven by Austria, Germany and Italy.

Fees delivered a very robust performance at €1.8 bn in 1Q22, up 9.0 per cent Q/Q and 7.9 per cent Y/Y demonstrating good commercial momentum. Our fees are well diversified, and all categories contributed positively, led by transactional and financing fees. In particular:

• − Investment fees generated another good performance at €0.8 bn, up 10 per cent Q/Q and up 4 per cent Y/Y, thanks to strong recurring AuM management fees up 12 per cent Y/Y, mainly in Italy and Germany and better AuC fees, up 11 per cent Y/Y, mostly related to certificates activity, compensating for lower AuM upfront fees;
• − Financing fees stood at €0.5 bn, up 17 per cent Q/Q and up 11 per cent Y/Y, supported by Loan and Guarantee fees in Italy and Germany and Credit Protection Insurance in Italy;
• − Transactional fees generated €0.6 bn, up 3 per cent Q/Q and up 11 per cent Y/Y, thanks to current account, card and payment fees responding to the pick-up in economic activity.

Trading income was strong at €701 m in 1Q22, of which €388 m client driven, thanks to good results in Fixed Income, Currencies & Commodities in both in Italy and Germany, with positive XVA and good Treasury results contributing to a Q/Q increase.

Operating costs base reduced, despite inflationary pressure, down 4.8 per cent Q/Q and down 2.6 per cent Y/Y, at €2.3 bn in 1Q22, resulting in a cost/income ratio of 47.8 per cent, down 8 p.p. Q/Q and down 4 p.p. Y/Y. In particular:

UniCredit - Public

• − HR costs were €1.4 bn in 1Q22, down 4.2 per cent Q/Q and down 0.9 per cent Y/Y, benefiting from lower FTEs in Italy and Germany;
• − Non HR costs were €0.9 bn in 1Q22, down 5.7 per cent Q/Q, thanks to lower consulting and advertisement, and down 5.3 per cent Y/Y.

1Q22 stated CoR was close to zero, at 5 bps, down 67 bps Q/Q and down 9 bps Y/Y. The €1.3 bn Group LLPs booked in the quarter were almost all related to Russia, and include an updated IFRS9 macroeconomic scenario for Russia. With reference to geographies different from Russia the updated IFRS9 macroeconomic scenario will be executed in the second quarter 2022, as per ordinary process. Our Cost of Risk is confirmed at 30 to 35 bps for this year and for the 2022-2024 Strategic Plan period.

In 1Q22, the Group excluding Russia posted a stated tax rate of 31.8 per cent. If normalised by the taxes from not recognised tax shield in Italy, stated tax rate would stand at 27.1 per cent below 30 per cent, guidance excluding DTA write up. 1Q22 Group tax rate of 57.4 per cent was negatively affected by losses on Russia considered as permanently not deductible for local tax purposes.

Net profit stood at €1.2 bn in 1Q22, up 91.1 per cent Q/Q and up 48 per cent Y/Y. Stated net profit stood at €1.2 bn in 1Q22 strongly increased Q/Q and up 37.8 per cent Y/Y.

BALANCE SHEET EXCLUDING RUSSIA

Average gross commercial performing loans were at €396.1 bn¹³ as of 31 Mar 22 (+2.1 per cent Q/Q, +4.7 per cent Y/Y). The main contributors were Italy (€166.8 bn), Germany (€111.5 bn) and Central Europe (€88.5 bn).

Gross customer performing loan rates were at 1.85 per cent¹³ in 1Q22 flat Q/Q and down 8 bps Y/Y.

Average commercial deposits increased to €460.8 bn¹³ as of 31 Mar 22 (+1.7 per cent Q/Q, +5.7 per cent Y/Y). The main contributors were Italy (€194.8 bn), Germany (€134.6 bn) and Central Europe (€92.0 bn).

Customer deposits rates stood at 0.02 per cent¹³ in 1Q22 flat Q/Q and Y/Y.

Total Financial Assets (TFAs) reached €738.3 bn in 1Q22, down 2.6 per cent Q/Q and up 3.9 per cent Y/Y

• − AuM: €214 bn in 1Q22, down 3 per cent Q/Q and up 3 per cent Y/Y;
• − AuC: €153 bn in 1Q22, down 7 per cent Q/Q and up 7 per cent Y/Y;
• − Deposits: €371 bn, down 1 per cent Q/Q and up 3 per cent Y/Y.

ASSET QUALITY EXCLUDING RUSSIA¹²

Gross NPEs were €15.5 bn in 1Q22 (-2.2 per cent Q/Q and -29.0 per cent Y/Y) leading to a gross NPE ratio of 3.5 per cent (flat Q/Q, -1 p.p. Y/Y), while Net NPEs were €7.1 bn in 1Q22 (-4.4 per cent Q/Q and -23.5 per cent Y/Y),

with a net NPE ratio of 1.6 per cent (flat Q/Q, flat Y/Y). The NPE coverage ratio was 54.3 per cent (+1 p.p. Q/Q and -3 p.p. Y/Y).

UniCredit - Public

Gross bad loans amounted to €4.4 bn in 1Q22 (+1.9 per cent Q/Q, -39.6 per cent Y/Y) with a coverage ratio of 76.6 per cent (+2 p.p. Q/Q, -1 p.p. Y/Y). Gross unlikely to pay stood at €10.3 bn (-3.3 per cent Q/Q, -22.9 per cent Y/Y), with a coverage ratio of 46.1 per cent (flat Q/Q, -2 p.p. Y/Y).

CAPITAL & FUNDING

The Group's 1Q22 CET1 ratio stood at 14.0 per cent, above the 2022-2024 12.5-13.0 per cent target range, absorbing, already in 1Q22, 92 bps of capital impact from Russia⁹ (of which 50 bps of participation capital impact and 40 bps as a result of applying conservative coverage of around 30 per cent on the net cross-border exposure), and the €1.6 bn share buyback.

The CET1 ratio of 14.0 per cent was mainly driven by -55 bps from 2021 share buyback, +44 bps from organic capital generation, -13 bps from distribution, -6 bps from regulatory headwinds, +18 bps from other items¹⁴ and -92 bps from 1Q22 Russia impact. Leverage ratio transitional stood at 5.19 per cent in 1Q22, down 0.5 per cent Q/Q.

At the April 8 th AGM, shareholders approved a total 2021 distribution of €3.75 bn, which include the already paid €1.2 bn cash dividend plus €2.6 bn in the form of share buybacks. The 2021 first share buyback tranche of €1.6 bn has received supervisory approval and is intended to commence as soon as possible, while the remaining €1 bn share buyback is subject to Russia performance and supervisory approval.

RWAs stood at €329.9 bn in 1Q22, up 2.5 per cent Q/Q, driven by impact of Russia, due to the increase in credit risk (+€3.1 bn) and in market risk (+€4.9 bn) and to the decrease in operational risk (-€0.1 bn), and up 4.8 per cent Y/Y, with Russia leading the change (+€9.6 bn).

RWAs, excluding Russia, totalled €308.9 bn in 1Q22, down 0.5 per cent Q/Q, due to the decrease in credit risk (- €5.9 bn), operational risk (-€0.1 bn) and to the increase in market risk (+€4.4 bn), and up 1.8 per cent Y/Y, with Central Europe leading the change (+€6.6 bn, of which €5.4 bn regulatory headwinds).

The 2022 Funding Plan focuses mostly on MREL instruments, while bank capital needs remain quite limited. UniCredit TLAC fully loaded ratio stood at 24.78 per cent with a substantial buffer above requirements of 21.55 per cent¹⁵ .

¹⁴ Including capital reserves and other capital deductions impacts.

¹⁵ 1Q22 TLAC fully loaded requirement 21.55 per cent (assuming combined capital buffer as of 1Q22) with 3.50 per cent senior exemption.

DIVISIONAL HIGHLIGHTS¹⁶

ITALY

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
Total revenues	2,229	2,030	2,246	+10.7%	+0.7%
o/w Net interest	941	913	872	-4.4%	-7.3%
o/w Fees	1,062	1,046	1,129	+7.9%	+6.3%
Operating costs	-998	-985	-992	+0.7%	-0.6%
Gross operating profit	1,231	1,045	1,254	+20.0%	+1.9%
Loan Loss Provisions	-152	-360	10	n.m.	n.m.
Net operating profit	1,079	685	1,264	+84.5%	+17.1%
Stated net profit/loss	728	869	593	-31.8%	-18.6%
Net profit	704	326	593	+82.0%	-15.8%
RoAC	15.8%	7.3%	13.5%	+6.2 p.p.	-2.3 p.p.
Cost/income ratio	44.8%	48.5%	44.2%	-4 p.p.	-1 p.p.
Stated cost of risk (bps)	31	79	-2	-81	-33

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
Total revenues	1,197	1,129	1,364	+20.8%	+13.9%
o/w Net interest	574	717	642	-10.5%	+12.0%
o/w Fees	302	272	351	+29.0%	+16.2%
Operating costs	-699	-665	-647	-2.8%	-7.4%
Gross operating profit	498	464	717	+54.6%	+43.9%
Loan Loss Provisions	46	-93	-64	-31.6%	n.m.
Net operating profit	545	370	653	+76.3%	+19.9%
Stated net profit/loss	165	-282	278	n.m.	+68.8%
Net profit	151	245	278	+13.3%	+84.2%
RoAC	5.8%	9.2%	10.4%	+1.1 p.p.	+4.5 p.p.
Cost/income ratio	58.4%	58.9%	47.4%	-12 p.p.	-11 p.p.
Stated cost of risk (bps)	-15	30	20	-10	+35

GERMANY

¹⁶ Please consider that (i) all divisional figures in "Divisional Highlights" represent the contribution of each division to Group data; (ii) Return on Allocated Capital (RoAC) related to each division and shown in this section is calculated as: annualised net profit / allocated capital. Allocated capital calculated as 13 per cent of RWA plus deductions. Non core division not reported.

CENTRAL EUROPE

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
Total revenues	740	763	783	+1.8%	+4.3%
o/w Net interest	379	438	449	+1.4%	+16.5%
o/w Fees	226	250	245	-2.6%	+7.2%
Operating costs	-393	-429	-399	-7.4%	+0.4%
Gross operating profit	347	334	385	+13.7%	+8.7%
Loan Loss Provisions	-13	-170	40	n.m.	n.m.
Net operating profit	334	164	424	n.m.	+25.0%
Stated net profit/loss	160	-174	204	n.m.	+24.8%
Net profit	150	210	204	-4.5%	+33.3%
RoAC	8.1%	10.5%	10.0%	-0.6 p.p.	+1.8 p.p.
Cost/income ratio	53.1%	56.2%	50.9%	-5 p.p.	-2 p.p.
Stated cost of risk (bps)	6	76	-17	-93	-24

Note: Stated numbers at current FX. Variations Q/Q and Y/Y are at constant FX.

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
Total revenues	449	454	449	-1.0%	+0.3%
o/w Net interest	274	299	284	-4.9%	+4.0%
o/w Fees	104	108	116	+7.1%	+11.8%
Operating costs	-188	-199	-194	-2.2%	+3.3%
Gross operating profit	261	255	255	-0.2%	-1.9%
Loan Loss Provisions	-62	-122	2	n.m.	n.m.
Net operating profit	199	133	257	+92.4%	+29.5%
Stated net profit/loss	120	96	181	+89.3%	+51.2%
Net profit	113	130	181	+39.5%	+60.8%
RoAC	12.4%	15.2%	20.9%	+5.7 p.p.	+8.6 p.p.
Cost/income ratio	42.0%	43.8%	43.3%	-0 p.p.	1 p.p.
Stated cost of risk (bps)	89	169	-2	-172	-92

EASTERN EUROPE

Note: Stated numbers at current FX. Variations Q/Q and Y/Y are at constant FX.

UniCredit - Public

GROUP CORPORATE CENTRE (GCC)

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
Total revenues	-61	-82	-55	-33.0%	-9.7%
Operating costs	-48	-109	-55	-49.5%	+15.4%
Gross operating profit	-108	-191	-110	-42.4%	+1.4%
Loan Loss Provisions	5	2	-39	n.m.	n.m.
Stated net loss	-308	-1,939	-93	-95.2%	-69.7%
Net profit	-309	-267	-93	-65.0%	-69.8%
FTE	10,117	9,939	9,844	-1.0%	-2.7%
Costs GCC/total costs	2.0%	4.4%	2.3%	-2 p.p.	0 p.p.

RUSSIA³

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
Total revenues	138	150	230	+78.6%	+82.8%
o/w Net interest	108	127	126	+15.4%	+28.2%
o/w Fees	16	23	17	-14.8%	+15.5%
Operating costs	-56	-61	-55	+7.7%	+9.2%
Gross operating profit	83	90	175	n.m.	n.m.
Loan Loss Provisions	-19	-42	-1,231	n.m.	n.m.
Net operating profit	63	48	-1,056	n.m.	n.m.
Stated net profit/loss	44	27	-915	n.m.	n.m.
Net profit	44	48	-915	n.m.	n.m.
RoAC	10.7%	8.0%	n.m.	n.m.	n.m.
Cost/income ratio	40.2%	40.4%	23.8%	-16 p.p.	-16 p.p.
Stated cost of risk (bps)	72	142	n.m.	n.m.	n.m.

Note: Stated numbers at current FX. Variations Q/Q and Y/Y are at constant FX.

UNICREDIT GROUP CONSOLIDATED RESULTS

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
Total revenues	4,675	4,425	5,017	+13.4%	+7.3%
o/w Net interest	2,170	2,396	2,301	-4.0%	+6.0%
o/w Fees	1,708	1,697	1,843	+8.6%	+7.9%
o/w Trading	619	202	785	n.m.	+26.9%
Operating costs	-2,403	-2,462	-2,341	-4.9%	-2.6%
Gross operating profit	2,272	1,963	2,676	+36.3%	+17.7%
Loan Loss Provisions	-167	-810	-1,284	+58.5%	n.m.
Net operating profit	2,105	1,153	1,392	+20.7%	-33.9%
Stated net profit/loss	887	-1,439	247	n.m.	-72.2%
Net profit	829 656 15.9% 15.0% 7.0% 5.4% 417,183 419,305 22,424 16,268 453,621 476,761 51.4% 55.6% 15 74 Note: Group net profit excludes the regulatory headwinds impact on CoR (-€232 m in 4Q21), real estate valuation (+€4 m in 1Q21, -€26 m in 4Q21), severance (-€735 m in 4Q21), other integration costs (-€221 m in 4Q21), Yapi Kredi deconsolidation (-€1,644 m in 4Q21), legal entity sale (-€554 m in 4Q21) and DTA write-up (+€1,164 m in 4Q21). Furthermore, it is net by AT1 (-€24 m in 1Q21, -€153m in 4Q21) and cashes charges (-€30m in 1Q21). 1Q22 KEY FIGURES bn, up 13.4 per cent Q/Q and up 7.3 per bn, down 3.3 per cent Q/Q and down 17.2 per (NII): €2.3 bn, down 4.0 per cent Q/Q and up per cent Q/Q and up 7.9 per cent Y/Y m, strongly increased Q/Q and up 26.9 per bn, down 4.9 per cent Q/Q and down 2.6 46.7 per cent, down 9 p.p. Q/Q and down 5 down 62.4 per cent Q/Q and 70.2 per cent Y/Y Q/Q and down 72.2 down 3 p.p Q/Q and down 5 p.p. Y/Y	247	-62.4%	-70.2%
CET1 ratio	2.1% 116 cent per p.p.	14.0%	-1 p.p.	-2 p.p.
RoTE				-3 p.p.	-5 p.p.
Customers loans excl. repos and IC			422,001	+0.6%	+1.2%
Gross NPE			16,785	+3.2%	-25.1%
Deposits (excl. repos)			483,290	+1.4%	+6.5%
Cost/income ratio			46.7%	-9 p.p.	-5 p.p.
Stated cost of risk (bps)				+42	+101
Total Revenues: €5.0			Y/Y
Net Revenues: €3.7			cent	Y/Y
Net Interest Income			6.0	per cent	Y/Y
Fees: €1.8 bn, up 8.6
Trading income: €785			cent	Y/Y
Operating costs: €2.3
Cost/Income ratio:
			cent	Y/Y
			Y/Y
Net profit: €247 m,
Stated net profit: €247 m, strongly increased				per cent Y/Y
RoTE: 2.1 per cent,
EPS: €0.11, down 62.1 per cent	Q/Q and down 70.3 per cent Y/Y
CET1 ratio: CET1 ratio at 14.0 per cent,	down 1 p.p.	Q/Q and	down 2 p.p.	Y/Y
RWAs: €329.9 bn, up 2.5 per cent Q/Q and up 4.8 per cent Y/Y
LLPs: €1.3 bn, up 58.5 per cent Q/Q and	significantly	increased	Y/Y
Cost of Risk (CoR): 116 bps, up 42 bps Q/Q	and up	101 bps	Y/Y
Average gross commercial performing loans:		€407.5 bn up 1.9		per cent Q/Q and up 4.8 per cent Y/Y
Group average commercial deposits:: €471.3 bn			up 1.6 per cent Q/Q and up 5.5 per cent Y/Y
Group Gross NPEs: €16.8 bn in 1Q22 up	3.2 per cent	Q/Q and	down 25.1	per cent	Y/Y
Group gross NPE ratio: 3.7 per cent, flat	Q/Q and down 1 p.p. Y/Y
Group net NPEs: €7.9 bn in 1Q22 up 6.1	per cent Q/Q	and down	15.2	per cent Y/Y

Note: Group net profit excludes the regulatory headwinds impact on CoR (-€232 m in 4Q21), real estate valuation (+€4 m in 1Q21, -€26 m in 4Q21), severance (-€735 m in 4Q21), other integration costs (-€221 m in 4Q21), Yapi Kredi deconsolidation (-€1,644 m in 4Q21), legal entity sale (-€554 m in 4Q21) and DTA write-up (+€1,164 m in 4Q21). Furthermore, it is net by AT1 (-€24 m in 1Q21, -€153m in 4Q21) and cashes charges (-€30m in 1Q21).

1Q22 KEY FIGURES

• Total Revenues: €5.0 bn, up 13.4 per cent Q/Q and up 7.3 per cent Y/Y
• Net Revenues: €3.7 bn, down 3.3 per cent Q/Q and down 17.2 per cent Y/Y
• Net Interest Income (NII): €2.3 bn, down 4.0 per cent Q/Q and up 6.0 per cent Y/Y
• Fees: €1.8 bn, up 8.6 per cent Q/Q and up 7.9 per cent Y/Y
• Trading income: €785 m, strongly increased Q/Q and up 26.9 per cent Y/Y
• Operating costs: €2.3 bn, down 4.9 per cent Q/Q and down 2.6 per cent Y/Y
• Cost/Income ratio: 46.7 per cent, down 9 p.p. Q/Q and down 5 p.p. Y/Y
• Net profit: €247 m, down 62.4 per cent Q/Q and 70.2 per cent Y/Y
• Stated net profit: €247 m, strongly increased Q/Q and down 72.2 per cent Y/Y
• RoTE: 2.1 per cent, down 3 p.p Q/Q and down 5 p.p. Y/Y
• EPS: €0.11, down 62.1 per cent Q/Q and down 70.3 per cent Y/Y
• CET1 ratio: CET1 ratio at 14.0 per cent, down 1 p.p. Q/Q and down 2 p.p. Y/Y
• RWAs: €329.9 bn, up 2.5 per cent Q/Q and up 4.8 per cent Y/Y
• LLPs: €1.3 bn, up 58.5 per cent Q/Q and significantly increased Y/Y
• Cost of Risk (CoR): 116 bps, up 42 bps Q/Q and up 101 bps Y/Y
• Average gross commercial performing loans: €407.5 bn up 1.9 per cent Q/Q and up 4.8 per cent Y/Y
• Group average commercial deposits:: €471.3 bn up 1.6 per cent Q/Q and up 5.5 per cent Y/Y
• Group Gross NPEs: €16.8 bn in 1Q22 up 3.2 per cent Q/Q and down 25.1 per cent Y/Y
• Group gross NPE ratio: 3.7 per cent, flat Q/Q and down 1 p.p. Y/Y

• Group net NPEs: €7.9 bn in 1Q22 up 6.1 per cent Q/Q and down 15.2 per cent Y/Y

• NPE Coverage ratio: 52.7 per cent down 1 p.p. Q/Q and down 5 p.p. Y/Y

• Group gross bad loans: €4.6 bn up 1.7 per cent Q/Q and down 39.8 per cent Y/Y
• Group gross unlikely to pay: €11.5 bn up 4.8 per cent Q/Q and down 16.3 per cent Y/Y

GROUP EXCLUDING RUSSIA KEY FINANCIAL 2022 GUIDANCE

Net revenue	$c.16.0$ bn
Net interest net of non-recurring items	In line with 2021
Costs	$c.9.5$ bn
Cost / Income	c.55%
Net profit	$>3.3$ bn
Cost of risk	30-35bps range
CET1r Group including Russia	12.5-13%

SIGNIFICANT EVENTS DURING AND AFTER 1Q22

UniCredit - Public

With reference to the main events that occurred during 1Q22 and after, refer to section "Subsequent events" in the Consolidated report on operations, which is an integral part of 2021 Annual Reports and Accounts of UniCredit Group as well as the press releases published on the UniCredit Group website. Here below therefore, the main price sensitive financial press releases published after 15 Feb 22 (date of approval of 2021 Annual Reports and Accounts of UniCredit Group):

− "Conclusion of the Second Buy-Back Programme 2021. Update on the execution of the share buy-back Programme during the period from 21 to 28 February 2022. Definition of the final amount of the 2022 dividend per share referred to the year 2021" (press release published on 01 Mar 22);

− "UniCredit: update on exposure to Russia" (press release published on 08 Mar 22);

− "UniCredit strengthens Wealth Management & Private Banking Division in Italy Cordusio SIM merged into UniCredit Group" (press release published on 25 Mar 22);

− "UniCredit S.p.A. announces that it has completed the sale of its stake corresponding to 18 per cent of the issued share capital of Yapı ve Kredi Bankası A.Ş. (YKB) to Koc Holding A.S." (press release published on 01 Apr 22);

− "Update of the Financial Calendar" (press release published on 08 Apr 22);

− "UniCredit supports Renco S.p.A. financing €20 million" (press release published on 15 Apr 22);

− "Notice of early redemption - UniCredit "€500,000,000 Non-Cumulative Temporary Write Down Deeply Subordinated Fixed Rate Resettable Notes" (THE "NOTES") ISIN XS1539597499" (press release published on 21 Apr 22);

− "UniCredit: S&P affirmed UniCredit S.p.A. 's issuer rating at 'BBB'. Outlook remained positive" (press release published on 27 Apr 22);

− "UniCredit: resolution approving the merger by absorption of Cordusio SIM S.p.A. into UniCredit S.p.A." (press release published on 29 Apr 22).

ECONOMIC OUTLOOK

We forecast GDP in the eurozone to expand by 3.1 per cent this year and 2.5 per cent in 2023, based on the assumption that Russia will continue to export oil and gas to Europe. This growth trajectory is about 1 p.p. lower than before the Russia-Ukraine conflict started. An easing of pandemic restrictions, still large amounts of excess savings for households and targeted fiscal stimulus are important mitigating factors. Our eurozone inflation forecast for 2022 has surged to close to 7 per cent, followed by a decline to an average rate of about 2 per cent in 2023. Facing a worsened trade-off between lower growth and higher inflation, the ECB confirmed a plan to speed up the reduction of net asset purchases in 2Q22, aiming to end Quantitative Easing (QE) in 3Q22 and to begin a tightening cycle, which should start between the end of this year and the first months of 2023.

GROUP TABLES

UNICREDIT GROUP: RECLASSIFIED INCOME STATEMENT

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
Net interest	2,170	2,396	2,301	-4.0%	+6.0%
Dividends	112	114	90	-20.8%	-19.4%
Fees	1,708	1,697	1,843	+8.6%	+7.9%
Trading income	619	202	785	n.m.	+26.9%
Other expenses/income	68	16	(2)	n.m.	n.m.
Revenue	4,675	4,425	5,017	+13.4%	+7.3%
HR costs	(1,470)	(1,522)	(1,456)	-4.3%	-0.9%
Non HR costs	(792)	(804)	(738)	-8.2%	-6.9%
Recovery of expenses	129	150	128	-14.2%	-0.7%
Amortisations and depreciations	(270)	(286)	(276)	-3.5%	+2.1%
Operating costs	(2,403)	(2,462)	(2,341)	-4.9%	-2.6%
GROSS OPERATING PROFIT (LOSS)	2,272	1,963	2,676	+36.3%	+17.7%
Loan Loss Provisions (LLPs)	(167)	(810)	(1,284)	+58.5%	n.m.
NET OPERATING PROFIT (LOSS)	2,105	1,153	1,392	+20.7%	-33.9%
Other charges and provisions	(702)	(274)	(725)	n.m.	+3.3%
of which: systemic charges	(620)	(92)	(719)	n.m.	+16.0%
Integration costs	(0)	(1,327)	(3)	-99.8%	n.m.
Net income from investments	(195)	(2,325)	(60)	-97.4%	-69.1%
PROFIT (LOSS) BEFORE TAX	1,207	(2,772)	603	n.m.	-50.0%
Income taxes	(314)	1,338	(347)	n.m.	+10.2%
Profit (Loss) of discontinued operations	1	2	3	+29.2%	n.m.
NET PROFIT (LOSS) FOR THE PERIOD	894	(1,432)	260	n.m.	-71.0%
Minorities	(7)	(8)	(13)	+73.2%	+93.8%
NET PROFIT (LOSS) ATTRIBUTABLE TO THE GROUP BEFORE PPA	888	(1,439)	247	n.m.	-72.2%
Purchase Price Allocation (PPA)	(0)	(0)	-	n.m.	n.m.
Goodwill impairment	-	-	-	n.m.	n.m.
GROUP STATED NET PROFIT (LOSS)	887	(1,439)	247	n.m.	-72.2%

Note: Figures of Reclassified income statement relating to 2021 have been restated with the effects of the:

• shift of the Interest Rate component of the DBO (Defined Benefit Obligation), TFR (Trattamento di Fine Rapporto) and Jubilee from HR costs to Net interest;

• shift of the Structuring and mandate Fees on certificates, and connected derivatives, issued by the Group and placed to internal and external networks from Trading income to Fees.

Since 1Q2022 the losses recognized on derivatives assets and arising from inability of the counterparty to fulfill contractual obligations have been reclassified from Trading income to Loans Loss Provisions (LLPs).

UNICREDIT GROUP: RECLASSIFIED BALANCE SHEET

(€ million)	1Q21	4Q21	1Q22	Q/Q	Y/Y
ASSETS
Cash and cash balances	123,899	107,407	125,874	+17.2%	+1.6%
Financial assets held for trading	73,925	80,109	76,144	-4.9%	+3.0%
Loans to banks	100,733	82,938	101,662	+22.6%	+0.9%
Loans to customers	446,691	437,544	444,725	+1.6%	-0.4%
Other financial assets	158,337	157,902	154,833	-1.9%	-2.2%
Hedging instruments	6,607	4,576	1,676	-63.4%	-74.6%
Property, plant and equipment	9,817	8,911	8,791	-1.3%	-10.4%
Goodwill	0	-	-	n.m.	n.m.
Other intangible assets	2,116	2,213	2,184	-1.3%	+3.2%
Tax assets	12,831	13,551	13,079	-3.5%	+1.9%
Non-current assets and disposal groups classified as held for sale	1,003	14,287	13,497	-5.5%	n.m.
Other assets	6,206	7,234	6,804	-5.9%	+9.6%
Total assets	942,165	916,671	949,271	+3.6%	+0.8%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits from banks	189,419	162,561	180,544	+11.1%	-4.7%
Deposits from customers	497,394	500,504	522,769	+4.4%	+5.1%
Debt securities issued	98,876	95,898	90,415	-5.7%	-8.6%
Financial liabilities held for trading	46,428	51,608	56,987	+10.4%	+22.7%
Other financial liabilities	12,326	11,616	11,336	-2.4%	-8.0%
Hedging instruments	9,056	5,265	(3,202)	n.m.	n.m.
Tax liabilities	1,113	1,216	1,473	+21.1%	+32.3%
Liabilities included in disposal groups classified as held for sale	651	2,149	2,008	-6.5%	n.m.
Other liabilities	25,803	23,760	25,391	+6.9%	-1.6%
Minorities	440	465	465	-0.0%	+5.8%
Group Shareholders' Equity:	60,660	61,628	61,085	-0.9%	+0.7%
- Capital and reserves	59,772	60,089	60,838	+1.2%	+1.8%
- Group stated net profit (loss)	887	1,540	247	-84.0%	-72.2%
Total liabilities and Shareholders' Equity	942,165	916,671	949,271	+3.6%	+0.8%

UNICREDIT GROUP: SOVEREIGN DEBT SECURITIES – BREAKDOWN BY COUNTRY/PORTFOLIO

UniCredit - Public

With reference to the Group's sovereign exposures¹⁷, the book value of sovereign debt securities as of 31 Mar 2022 amounted to €109,575 m (of which €106,774 m classified in the banking book¹⁸), over the 82 per cent of it concentrated in eight countries; Italy, with €39,516 m, represents over 36 per cent of the total. For each of the eight countries, the following table shows the nominal value, the book value and the fair value of the exposures broken down by portfolio as of 31 Mar 2022.

¹⁷ Information on Sovereign exposures refers to the scope of the UniCredit Group consolidated results as at 31 Mar 2022, determined under IAS/IFRS. Sovereign exposures are bonds issued by and loans given to central and local governments and governmental bodies. To the purpose of this risk exposure are not included: • Sovereign exposures of Group's Legal entities classified as held for sale as at 31 Mar 2022

^• ABSs." ¹⁸ The banking book includes financial assets designated at fair value, those mandatorily at fair value, those at fair value through other comprehensive income and those at amortised cost.

(€ million)	Nominal Value	Book value	Fair Value
As at 31 March 2022
- Italy	38,955	39,516	39,849
financial assets/liabilities held for trading (net exposures)(*)	(1,531)	(1,736)	(1,736)
financial assets designated at fair value	-	-	-
financial assets mandatorily at fair value	50	59	59
financial assets at fair value through other comprehensive income	16,903	17,562	17,562
financial assets at amortised cost	23,533	23,631	23,964
- Spain	16,618	16,764	16,772
financial assets/liabilities held for trading (net exposures)(*)	1,054	1,021	1,021
financial assets designated at fair value	-	-	-
financial assets mandatorily at fair value	-	-	-
financial assets at fair value through other comprehensive income	4,359	4,426	4,426
financial assets at amortised cost	11,205	11,317	11,325
- Japan	10,625	10,745	10,738
financial assets/liabilities held for trading (net exposures)(*)	-	-	-
financial assets designated at fair value	-	-	-
financial assets mandatorily at fair value	-	-	-
financial assets at fair value through other comprehensive income	7,155	7,163	7,163
financial assets at amortised cost	3,470	3,582	3,575
- Germany	8,915	9,016	8,953
financial assets/liabilities held for trading (net exposures)(*)	421	416	416
financial assets designated at fair value	-	-	-
financial assets mandatorily at fair value	2,702	2,725	2,725
financial assets at fair value through other comprehensive income	2,040	2,067	2,067
financial assets at amortised cost	3,752	3,808	3,745
- Austria	4,170	4,284	4,272
financial assets/liabilities held for trading (net exposures)(*)	411	467	467
financial assets designated at fair value	18	16	16
financial assets mandatorily at fair value	90	111	111
financial assets at fair value through other comprehensive income	3,500	3,530	3,530
financial assets at amortised cost	151	160	148
- United States of America	4,323	4,274	4,274
financial assets/liabilities held for trading (net exposures)(*)	1,102	1,029	1,029
financial assets designated at fair value	-	-	-
financial assets mandatorily at fair value	-	-	-
financial assets at fair value through other comprehensive income	3,165	3,189	3,189
financial assets at amortised cost	56	56	56
- France	2,982	3,102	3,061
financial assets/liabilities held for trading (net exposures)(*)	731	909	909
financial assets designated at fair value	36	34	34
financial assets mandatorily at fair value	1	1	1
financial assets at fair value through other comprehensive income	1,739	1,677	1,677
financial assets at amortised cost	475	481	440
- Romania	2,561	2,606	2,462
financial assets/liabilities held for trading (net exposures)(*)	105	96	96
financial assets designated at fair value	-	-	-
financial assets mandatorily at fair value	-	-	-
financial assets at fair value through other comprehensive income	679	678	678
financial assets at amortised cost	1,777	1,832	1,688
Total on-balance sheet exposures	89,149	90,307	90,381

Note: (*) Including exposures in Credit Derivatives. In case of negative amount, it indicates the prevalence of liabilities positions.

UNICREDIT GROUP: WEIGHTED DURATION

The weighted duration of the sovereign bonds shown in the table above, divided by the banking and trading book, is the following:

	Weighted duration	Banking Book		Trading Book
	(years)		Assets positions		Liabilities positions
	- Italy	3.85	3.13		4.97
	- Spain	3.87	14.91		10.63
	- Japan - Germany	3.53 3.55	- 15.31		- 3.27
	- Austria	5.51	4.99		9.08
	- United States of America	2.75	21.26		-
	- France	5.89	21.20		10.32
	- Romania	4.28	7.51		8.21
	The remaining 18 per cent of the total of sovereign debt securities, amounting to €19,268 m with reference to the book values as at 31 Mar 2022, is divided into 37 countries, including Bulgaria (€2,044 m), Czech Republic (€2,030 m), Croatia (€1,844 m), Hungary (€1,626 m), Portugal (€1,601 m), Israel (€1,186 m), Ireland (€1,029 m), Serbia (€944 m), Poland (€935 m), Russia (€794 m) and China (€789 m).
	With respect to these exposures, as at 31 Mar 2022 there were no indications that defaults the Group is closely monitoring the evolution of the situation.				have occurred and
preparation".	With particular reference to the book value of the sovereign debt securities exposure to Russia it should be noted that €793 m are held by the Russian controlled bank and classified in the banking book. For more information on the criteria adopted for the evaluation of the Russian counterparties, see the following chapter "Basis of
	It should also be noted that among the aforementioned remaining part of sovereign debt securities as at 31 Mar
	2022 there are also debt securities towards Supranational Organisations such as the European Union, the European Financial Stability Facility and the European Stability Mechanism amounting to €2,596 m.
	In addition to the exposures to sovereign governmental bodies must be taken into account, amounting to €25,383 m as at 31 Mar 2022, of which about 63 per cent to Austria, Italy and Germany.		debt securities, loans19 given to central and local governments and
		UNICREDIT	GROUP: RATINGS
		Short-term	Medium and	Outlook
		debt	long-term debt		Rating
	Standard & Poor's	A-2	BBB	Positive	Standalone bbb
	Moody's Fitch Ratings	P-2 F2	Baa1 BBB	Stable Stable	baa3 bbb

The remaining 18 per cent of the total of sovereign debt securities, amounting to €19,268 m with reference to the book values as at 31 Mar 2022, is divided into 37 countries, including Bulgaria (€2,044 m), Czech Republic (€2,030 m), Croatia (€1,844 m), Hungary (€1,626 m), Portugal (€1,601 m), Israel (€1,186 m), Ireland (€1,029 m), Serbia (€944 m), Poland (€935 m), Russia (€794 m) and China (€789 m).

With respect to these exposures, as at 31 Mar 2022 there were no indications that defaults have occurred and the Group is closely monitoring the evolution of the situation.

With particular reference to the book value of the sovereign debt securities exposure to Russia it should be noted that €793 m are held by the Russian controlled bank and classified in the banking book. For more information on the criteria adopted for the evaluation of the Russian counterparties, see the following chapter "Basis of preparation".

It should also be noted that among the aforementioned remaining part of sovereign debt securities as at 31 Mar 2022 there are also debt securities towards Supranational Organisations such as the European Union, the European Financial Stability Facility and the European Stability Mechanism amounting to €2,596 m.

In addition to the exposures to sovereign debt securities, loans¹⁹ given to central and local governments and governmental bodies must be taken into account, amounting to €25,383 m as at 31 Mar 2022, of which about 63 per cent to Austria, Italy and Germany.

	Short-term	Medium and	Outlook	Standalone
	debt	long-term debt		Rating
Standard & Poor's	A-2	BBB	Positive	bbb
Moody's	P-2	Baa1	Stable	baa3
Fitch Ratings	F2	BBB	Stable	bbb

UNICREDIT GROUP: RATINGS

BASIS OF PREPARATION

1. This Consolidated interim report as at 31 Mar 22 - Press release has been prepared on a voluntary basis, with the aim of ensuring continuity with the previous quarterly reports, following the elimination of the requirement to disclose additional financial information to the half-year and annual reports pursuant to law (D.Lgs.) 25/2016, issued in application of Directive 2013/50/EU. This Consolidated interim report as at 31 Mar 22 - Press release as well as the press releases on significant events occurred during the period, the market presentation of 1Q22 results, the Divisional Database, and the disclosure by institutions pursuant to Regulation (EU) No.575/2013 and subsequent amendments are available on UniCredit group website.

This Consolidated interim report - Press release is not audited by the External Auditors.

1. Reclassified balance sheet and income statements items have been prepared pursuant to Banca d'Italia instructions laid down in Circular 262/2005 (and subsequent amendments) by applying the aggregations and reclassifications disclosed in Annex 1 of 2021 Annual Reports and Accounts of UniCredit Group, supplemented by the notes below the reclassified balance sheet and income statement of this document.

2. The contents of this Consolidated interim report as at 31 Mar 22 - Press release are not prepared according to the international accounting standard on interim reporting (IAS34).

Furthermore, in addition to the financial information prepared by applying measurement criteria in accordance with International Financial Reporting Standards ("IFRS"), this document contains alternative performance measures ("APMs") as defined in the Guidelines on Alternative Performance Indicators (APIs) issued by the European Securities and Markets Authority (ESMA) on 5 Oct 15 (ESMA/2015/1415) and other information not based on-IFRS definitions, in order to provide further information about the Group's performance. The financial measures that qualify as APMs and additional information not based on IFRS definitions determined using information from UniCredit Group should be considered supplemental information to IFRS information and do not intend to substitute them. Furthermore, companies in our industry and others may calculate or use APIs and information not based on IFRS definitions differently, thus making them less useful for compare.

The description of such APIs (such as Cost/income ratio, EVA, RoTE, RoAC, Cost of risk, Net bad loans to customer/Loans to customers, Net non-performing loans to customers/Loans to customers, Absorbed capital, ROA) is included in the 2021 Annual Reports and Accounts Consolidated of UniCredit group (Consolidated report on operations and Annexes). Further APMs (i.e. Coverage ratio, RoTE) have been described in the 1Q22 market presentation.

1. The Consolidated interim report as at 31 Mar 2022 - Press release, within which the accounts are presented in reclassified form, was prepared on the basis of IAS/IFRSs in force.

As at 31 Dec 2021, the market environment was affected by a significant risk of lower predictivity of the macroeconomic projections arising from uncertainty about the evolution of the pandemic Covid-19, and the consequent difficulty in predicting timing and extent of the economic recovery which could occur in future periods. Considering the mentioned Covid-19 related uncertainty and ESMA Public Statement dated 29 October 2021 ("European common enforcement priorities for 2021 Annual Financial Reports"), UniCredit Group used, for the purposes of the evaluation processes and in addition to the base scenario ("Baseline") which reflects the most likely expectations concerning macroeconomic trends considered in the new UniCredit Unlocked 2022-2024 strategic plan, alternative scenarios by assuming different trends in the main macroeconomic parameters(e.g., gross domestic product, interest rates); in this respect:

• with reference to the sustainability test of deferred tax assets, a worst-case scenario ("Downturn") was used, reflecting a downward forecast of the expected profitability of the business;

• with reference to the valuation of credit exposures (IFRS9), two alternative scenarios ("Positive" and "Negative" vis-à-vis the "Baseline" scenario) were defined; such alternative scenarios provide for different assessments regarding the expected trend of the parameters that can influence the assessment of the prospective credit risk.

The above outlined lower predictivity has heightened in the first quarter 2022 due to the outbreak of geopolitical tensions between Russian Federation and Ukraine.

Indeed, ECB Macro-economic Projections published in Mar 2022²⁰ report that the outlook regarding the trend in economic activities and inflation in the euro area has become very uncertain and depends crucially on how the war in Ukraine unfolds, on the impact of current sanctions and on possible further measures. Negative effects in term of GDP growth are deemed by ECB to be temporary: economic activity is still projected to expand at a relatively strong pace in the coming quarters with growth projected to converge towards historical average rates. Moreover, with reference to Covid-19, ECB projections highlights that the spread of the Omicron coronavirus variant could impact the outlook. At the turn of the previous year, the spread of the new Omicron variant caused an unprecedented increase in the number of coronavirus (Covid-19) infections. However, as available evidence suggests that the Omicron wave will be shorter than previous waves, the impact on the global economy is expected to be limited.

In light of the above-mentioned heightened uncertainties, specific analyses were performed in the first quarter of 2022 with the aim to evaluate whether scenarios used as at 31 Dec 2021 for the purposes of the evaluation process of the main items subject to valuation uncertainties were still valid or, conversely, which adjustments had put in place in order to properly reflect the updated economic environment. Such analyses, explained below, also leveraged on an updated macro-economic scenario developed by UniCredit Research in Mar 2022.

1. Starting from 31 Dec 19, the Group updated the calculation of the sustainability test methodology considering appropriate a 10 years' time horizon, for the recognition of DTA arising from tax loss carrying forward deemed coherent for assessing the generation of sufficient taxable profit to be available against which tax assets can be utilized.

In the first quarter 2022, the following analyses were performed with reference to the Italian Tax Perimeter (which accounts for the significant majority of the DTAs): (i) analysis of the evolution of the macroeconomic scenario for the period 2022-2024 compared to the scenario underlying the valuation process at 31 Dec 2021; (ii) comparison between the actual profit before taxes and the budget underlying the test executed in Dec 2021; (iii) confirmation of the validity of the additional methodological assumptions (reference tax legislation, perimeter of companies, volatility of the parameters underlying the model and reversal timeline of non-convertible DTAs) used in the valuation process. With specific reference to the macro-economic scenario the comparison between Baseline/Downturn scenarios, foreseen by the new strategic plan and used in the evaluation process as at 31 Dec 2021 and the updated macro-economic scenario highlighted that: (i) Italian GDP is substantially aligned with the Downturn in 2022 and with Baseline in 2023/2024; (ii) higher interest rates are foreseen, thus representing a positive driver considering the positive correlation existing between net interest income and interest rates trend.

According to the outcome of such analysis, no material changes were highlighted that may lead to put in discussion the data, parameters and assumptions adopted for 31 Dec 2021 sustainability test. Therefore, the 31 December 2021 DTA test sustainability results are confirmed, and no impacts were recognised as at 31 Mar 2022.

²⁰ ECB staff macroeconomic projections for the euro area, March 2022 (europa.eu).

It shall be noted that the outcome of the measurement is significantly influenced by assumptions on future cash flows, which in turn incorporate assumptions on the evolution of the macroeconomic scenario. Moreover, the sustainability of deferred tax assets is influenced by criteria and assumptions of the statistic model used for future taxable income projections, for the period following that for which the official projections are available, as the volatility of expected results and by the confidence level used.

Therefore, the results of these evaluations might be subject to changes currently not foreseeable, depending on the existence and degree of economic recovery which in turn depends on (i) the evolution of the geo-political tensions between Russian Federation and Ukraine, the effects of sanctions imposed to Russia as well as (ii) the evolution of the pandemic and the progressive lifting of the containment measures put in place by governments. Possible deviations of the actual economic recovery, compared to the assumptions which form the basis of the evaluations, might require a re-determination of the parameters used for valuation purposes, in particular regarding the future cash flows, and the consequent change in the valuation.

1. With reference to the credit exposures, in accordance with the Group Policies, the update of macroeconomic scenarios used for calculation of credit risk parameters (Probability of Default, Loss Given Default and Exposure at Default) occurs on a semi-annual basis (June and December).

In light of the evolution of the geopolitical environment in the first quarter of 2022, a specific analysis was put in place by comparing the scenarios used in the evaluation process of credit exposures as at 31 Dec 2021 and the updated macro-economic scenario developed in Mar 2022 by UniCredit Research.

With reference to the geographies different from Russia, the macroeconomic scenario developed in Mar 2022 reports a limited decrease in term of GDP for the periods 2022 - 2024 compared with 31 Dec 2021, not triggering an extraordinary update as of 1Q2022. It should be noted that in the context of the estimates made as at 31 Dec 2021, the probability of the "negative" scenario was set at 40 per cent in order to incorporate the risks of adverse changes. The probabilities used for the "base" and "positive" scenarios were set at 55 per cent and 5 per cent respectively.

With reference to Russian consolidated subsidiaries, the macroeconomic scenario developed in Mar 2022 reports worsening GDP projections for the periods 2022 - 2024 compared with the negative scenario considered in Dec 2021 both on a year to year and on a cumulated basis. Consequently, as of 1Q22: (i) the Baseline scenario was updated in coherence with Mar 2022 evidence; (ii) the negative scenario has been updated by keeping constant the multi-scenario overlay used as at 31 December 2021, thus implying a downward GDP correction with the same magnitude of the correction to the Baseline. Furthermore, the weight of negative scenario was increased from 40 per cent to 50 per cent and the baseline reduced from 55 per cent to 50 per cent (with positive scenario also reduced from 5 per cent to 0 per cent). Eventually, such update led to recognize additional Loan Loss provision ("LLP") as of 1Q22.

With reference to Russian credit exposures (i.e. both cross - border and originated by Russian consolidated subsidiaries), the adverse change in the economic environment, as above outlined, has been deemed evidence of a significant increase in credit risk triggering: (i) their classification in Stage 2; (ii) an update of the Russian Sovereign rating so to embed - in the measurement process - the worsening of Russia credit worthiness, triggered by the severity of Western countries' sanctions, Russian authorities' responses and the economic effects of the war itself. Such approach led to a consequent increase in LLP.

Furthermore, an overlay (basically tiering the effect resulting from an UTP classification) has been recognized on cross-border loans exposures toward Russian counterparties in order to reflect the differentiation in asset valuation between on-shore and off-shore investors, in light of sanctions imposed to Russian Federation, with offshore investors being penalized vs on-shore ones in their ability to recover their claims against investments in Russia. Indeed, such circumstance stemmed from several occurrences, e.g., among them: (i) certain Russian

counterparties entered in technical default as a result of sanctions imposed against Russian Federation (which impeded them to repay their debt toward foreign counterparty in accordance with the original terms of the contract subscribed); (ii) several Multinational Corporations decided to exit from Russian Market and, among them, certain financial group disposed their activities in Russia or announced their intention to do so with a zeroed investment value recovered.

While these events materialized also after 31 Mar 2022, they stemmed from events (Russia - Ukraine conflict and sanction) which started before 31 March 2022.

As a result, such events were deemed to be "adjusting events" for the purposes of preparation of these Consolidated Results of UniCredit Group as at 31 Mar 2022.

It is finally worth mentioning that the overall impact of the actions presented in the previous paragraphs led to a coverage ratio so to better reflect the different risk profile of domestic and cross border exposures, where only the latter are directly impacted by the sanctions, impairing the willingness and technical abilities of Russian counterparties to honor the terms and conditions of their obligations to foreign debt holders.

In this context, the amount of loan loss provisions is determined by considering the classification - current and expected - of credit exposures as non-performing, the sale prices (for those non-performing exposure whose recovery is expected through sale to external counterparties), and credit risk parameters which - in accordance with IFRS9 - incorporate, among other factors, forward looking information and the expected evolution of the macroeconomic scenario.

Therefore, also in this case, the measurement is affected by the already mentioned degree of uncertainty on (i) the evolution of the geo-political tensions between Russian Federation and Ukraine, the effects of sanctions imposed to Russia as well as (ii) the evolution of the pandemic and the progressive lifting of the containment measures put in place by governments in order to contain it.

Indeed, the evolution of these factors might require the classification of additional credit exposures as nonperforming in future reporting periods, thus determining the recognition of additional loan loss provisions related to both these exposures as well as performing exposures following the update in credit risk parameters.

In addition, the need to adjust the loan loss provisions might derive from the occurrence of a macroeconomic scenario different from the one estimated for the calculation of the credit risk parameters, or by the prevalence on the market of non-performing exposures of prices different from those used in the measurement.

Finally, the evolution of the real estate market could impact on the value of properties received as collateral and may require an adjustment to the loan loss provisions.

1. With reference to the real estate portfolio, which starting from 31 Dec 2019 is measured at fair value, it is worth to note that, in accordance with Group Policies, the evaluations through external appraisals are updated on a semi-annual basis in June and December. As at 31 Mar 2022, the Group performed an analysis on the real estate market and the status of the properties ("trigger analysis") aimed to evaluate whether the values determined as at 31 December 2021 were confirmed.

The trigger analysis performed did not reveal significant events that had impacts on the evaluation of real estate portfolio compared to 31 Dec 2021. With specific reference to real estate held by Russian consolidated subsidiaries, an analysis has been executed with the goal of highlighting positive or negative changes in fair value. According to such analysis, corroborated by market reports provided by leading Real Estate specialists, no significant changes in fair value were observable in the first quarter of 2022, both in office and street retail real estate sectors.

In light of this evidence, it has been concluded that - as at 31 Mar 2022 - there is no market evidence that lead to conclude for significant changes in fair value of the real estate portfolio of Russian consolidated subsidiaries.

Within next reporting periods, the fair value of these assets might be different from the values presented as at 31 Mar 2022 as a result of the possible evolution of prices of real estate market which will also depend on (i) the evolution of the geo-political tensions between Russian Federation and Ukraine, the effects of sanctions imposed to Russia as well as (ii) the evolution of the pandemic and the progressive lifting of the containment measures put in place by governments in order to contain it.

1. In addition to the above the following additional Balance sheet items might be significantly affected in their evaluation by risks and uncertainties, even if not directly connected with the slow-down of the economic activity and the associated uncertainty level of the economic recovery:

2. fair value of financial instruments not listed in active markets;

3. severance pay and other employee's benefits (including defined benefit obligation);
4. provisions for risks and charges.

While evaluations have been made on the basis of information deemed to be reasonable and supportable as at 31 Mar 2022, they might be subject to changes not foreseeable at the moment, as a result of the evolution in the parameters used for the evaluation.

Furthermore, the following factors, in addition to those illustrated above, might influence the future results of the Group and cause outcomes materially different from those deriving from the valuations: (i) general economic and industrial conditions of the regions in which the Group operates or holds significant investments; (ii) exposure to various market risks (e.g. foreign exchange risk); (iii) political instability in the areas in which the Group operates or holds significant investments; (iv) legislative, regulatory and tax changes, including regulatory capital and liquidity requirements, also taking into account increased regulation in response to the financial crisis. Other unknown and unforeseeable factors could determine material deviations between actual and expected results.

1. Regarding the application of the FX rates for the preparation of the Consolidated interim report as at 31 Mar 2022, an assessment was executed considering that - starting from 2 Mar 2022 - ECB has stopped the quotation of Eur/Rub exchange rate.

In accordance with IAS21, which requires to use the foreign exchange rate at which the future cash flows could have been settled if those cash flows had occurred at the measurement date, the Group has applied an OTC foreign exchange rate provided by Electronic Broking Service²¹ (EBS). Coherently, the foreign exchange differences valuation reserve related to the consolidation of Russian consolidated subsidiaries has been determined on the basis of the EBS rate.

1. Losses recognized on derivative assets and arising from inability of the counterparty to fulfill contractual obligations have been presented as LLPs.

2. Considering the current international geopolitical situation, already outlined in the previous paragraphs, the internal managerial reporting envisages the segregation of the business in Russia, previously within Eastern Europe. In line with IFRS8 that requires application of a "through the eyes of the management" approach the Consolidated interim report as at 31 Mar 2022 - Press release includes the new Russian operating segment.

3. Regarding the scope of consolidation, in the first three months of 2022 the following changes occurred:

• the number of fully consolidated companies, including those ones classified as non-current assets and asset disposal groups based on the accounting principle IFRS5, decreases for 13 (1 in and 14 out) changing from 407, at the end of 2021, to 394 as at 31 March 2022;

²¹ EBS is a wholesale electronic trading platform used to trade on the foreign exchange market (FX) with market-making banks. It is part of CME Group (Chicago Mercantile Exchange).

• the number of companies consolidated by using the equity method, including those ones classified as noncurrent assets and asset disposal groups, is 29, unchanged from the end of 2021 to Mar 2022.

1. As at 31 Mar 2022, the main assets which, based on the application of IFRS5 accounting principle, were reclassified as non-current assets and asset disposal groups, regard the following individual asset and liability held for sale and groups of assets held for sale and associated liabilities which do not satisfy IFRS5 requirements for the classification as discontinued operations:

2. the companies of the WealthCap Group, the leasing controlled companies UniCredit Leasing S.p.A. and its controlled company, UniCredit Leasing GMBH and its controlled companies, UniCredit Leasing, Leasing, D.O.O., the controlled company UCTAM Svk S.R.O. and the associated company Risanamento S.p.A.;

3. the loans included in some sale's initiatives of portfolios;
4. the real estate properties held by certain companies in the Group.

GENERAL NOTES

• CET1 ratio fully loaded throughout the document, unless otherwise stated.
• Numbers throughout the press release may not add up precisely to the totals provided in tables and text due to rounding.
• Russia includes the local bank and legal entities, plus the cross-border exposure booked in UniCredit SpA.
• Shareholders distribution subject to supervisory and AGM approvals.

MAIN DEFINTIONS

• Average commercial deposits (excluding repurchase agreements repos) are managerial figures and are calculated as daily averages. Deposits net of Group bonds are placed by the network.
• Average gross commercial performing loans defined as average stock for the period of performing loans to commercial clients (e.g. excluding markets counterparts and operations); managerial figures, key driver of the NII generated by the network activity.
• Cost of risk (CoR) is based on reclassified P&L and Balance sheet, calculated as (i) LLPs of the period (annualised in the interim periods) over (ii) by average loans to customers (including active repos) excluding debt securities (also IFRS5 reclassified assets are excluded).
• Coverage ratio (on NPE) defined as stock of LLPs on NPEs over gross NPEs excluding IFRS5 reclassified assets.
• EPS calculated as net profit average on number of diluted shares (i.e. outstanding shares excluding average treasury and CASHES usufruct shares).
• Gross customer performing deposits rates calculated assuming 365 days convention, adjusted for 360 days convention where analytically available, and based on average gross balances.
• Gross customer performing loan rates calculated assuming 365 days convention, adjusted for 360 days convention where analytically available, and based on average gross balances.
• Gross NPE ratio defined as (i) gross NPEs over (ii) gross loans (including repurchase agreements repos) excluding debt securities and IFRS5 reclassified assets.
• Gross NPEs defined as non performing exposures before deduction of provisions comprising bad loans, unlikely to pay, and past due; including only loans to customers (including repurchase agreements – repos), excluding debt securities and IFRS5 reclassified assets.
• IFRS5 reclassified assets means exposures classified as Held for Sale.
• Net NPE ratio defined as (i) Net NPEs over (i) total loans (including repurchase agreements repos), excluding debt securities and IFRS5 reclassified assets.

• Net NPEs defined as loans to customers non performing exposures after deduction of provisions, comprising bad loans, unlikely to pay, and past due (including active repurchase agreements – repos, excluding debt securities and IFRS5 reclassified assets).

• Net profit for 2021 equal to stated net profit adjusted for non-operating items considering also AT1, CASHES coupons and impacts from DTAs from tax loss carry forward sustainability test, for 2022 equal to stated net profit adjusted for AT1, CASHES coupons and impacts from DTAs from tax loss carry forward sustainability test (zero impacts in 1Q22).

• Net revenues means (i) revenues minus (ii) Loan Loss Provisions (LLPs).
• Organic capital generation for Group calculated as (Net Profit excluding Russia pre AT1 & CASHES less delta RWA excluding Regulatory Headwinds x CET1r actual)/ RWA.
• Regulatory headwinds are mostly driven by regulatory changes and model maintenance (impacting on both P&L, RWA and capital), shortfall and calendar provisioning (impacting on capital).
• RoTE means (i) net profit over (ii) average tangible equity excluding AT1, CASHES and DTA from tax loss carry forward contribution.
• Share buyback defined as repurchasing of shares by the company that issued them to reduce the number of shares available on the open market.
• Stated net profit means accounting net profit.
• Tangible book value per share for Group calculated as end-of-period tangible book value per share equals end-of-period tangible equity over end-of-period number of shares excluding treasury shares.
• Tangible equity for Group calculated as shareholders' equity (including Group stated profit of the period) less intangible assets (goodwill and other intangibles), less AT1 component.
• TFAs refers to Group commercial Total Financial Assets. Non-commercial elements, i.e. CIB, Group Corporate Centre, Non Core and Leasing/Factoring are excluded. Numbers are managerial figures.
• Valuation adjustments (XVA) include: Debt/Credit Value Adjustment (DVA/CVA), Funding Valuation Adjustments (FuVA) and Hedging desk.

Declaration by the Manager charged with preparing the financial reports

The undersigned, Stefano Porro, in his capacity as the Manager charged with preparing UniCredit S.p.A.'s financial reports

DECLARES

that, pursuant to Article 154 bis, paragraph 2, of the "Consolidated Law on Finance", the information disclosed in this document corresponds to the accounting documents, books and records.

Milan, 04 May 2022

Manager charged with preparing the financial reports