GENERAL MEETING DRAFT - Bankier.pl

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>> Report on Operations
Retail
In 2009, UniCredit Family Financing Bank launched the "ARCA" (Advanced credit recovery measures)
project designed to implement a number of campaigns to assist families who have different earning
profiles than those observed at the issue stage due to the unfavorable economic situation, in order to
identify useful solutions to overcome the difficulties.
Among the main initiatives in this respect, from which approximately 25,000 customers have benefited,
were:
� Convenzione ABI-MEF [ABI-MEF Agreement], which provides the opportunity for some
customers with variable-rate mortgages to renegotiate the loan by reducing the rate to a level
equal to that prior to the increases in rates by suspending the payment of the differences
originating from the renegotiation to the end of the amortization schedule;
� Insieme 2009 project, which allows low-income families to stay free of payment of mortgage
installments up to a maximum of 12 months in the event that any adverse events temporarily
impair their solvency;
� Instalment plan suspension for borrowers resident in areas officially declared to be
disaster areas;
� Law 2/2009, launched a loan at a variable rate indexed to the "ECB Rate” parameter. Law
2/2009 also introduced the benefit of a “rate cap” for variable-rate mortgages.
The international financial crisis has made its effects of loans and consumer credit on businesses
generating a decline in demand and an increased credit risk. UniCredit Family Financing Bank in 2009
was affected by the unfavorable scenario conditions, showing weakening indicators, in particular in the
new flows of disbursement.
The increased risk observed has led to a more careful assessment of the creditworthiness of customers,
through innovations in the sales approach with the use of so-called "Pricing at risk", which aims to relate
the quality of the risk to the price terms offered.
UniCredit Family Financing Bank finished 2009 with a stock of loans consisting of approximately
780,000 accounts for a price of approximately €63 billion (including securitizations). Using this stock,
several important securitization transactions and issuing of secured bank bonds were completed during
the year allowing alternative, less expensive funding channels to be used. In 2009, the new production of
loans equaled about €2.3 billion in decline from the previous year. This dynamic was in line with the
context of market difficulties due to the decline in demand for loans and the effects of the financial crisis
on the economic resources of families. The market share of the total new business in the banking industry
was approximately 6%. The contribution of the non-banking channel to new loans was nearly 35%.
In the consumer credit products area, compared to a stock of €7.6 billion, at the end of December new
business was generated (personal loans, special-purpose loans, revolving credit cards and loans against
wages) of €3.5 billion (-8% y/y), of witch nearly 32% of new production from non-banking. These are
positive results, in the light of the difficulties in the consumer credit market which registered a decline of
13% in 2009, should be considered positive because they allowed the Retail SBA to increase its own
market share (Assofin survey) of the total loans in the industry at 9.5% compared to 7.6% in 2008.
Product innovation activity has continued with the aim of guaranteeing an offering distinguished by
maximum flexibility of use, in line with the new market requirements. After the launch in the first half-year
of the UniCreditCard Extra Revolving card and the CreditExpress Dynamic personal loan with
"installment skipping", "installment changing" and "reloading" features, the new Credit Express Premium
product was launched in the fourth quarter of 2009, which rewards good behavior with an annual rate cut
of 100 basis points, and was promoted in various sales channels with dedicated advertising materials.