XARXA DE PARTICIPACIÓ SECTORIAL I TERRITORIAL

As at 30th _{June 2007, the total funding of the UBI Group, consisting of the total volumes}

administered on behalf of customers, exceeded 184,5 billion euro with an increase of 7,6% on an annual basis as a result of the particularly favourable performance of direct funding. Net of institutional funding performed through the EMTN programme, the annual change in the aggregate was 4,9%.

Despite the not very favourable context characterised by increased volatility on equity markets and the continuing weakness of Italian mutual funds, penalised by competition from short term government securities, indirect funding made a positive contribution as a result also of growth in assets under custody.

Total funding from customers

Table No. 11 30.6.2007 pro-forma % 31.12.2006 pro-forma % 30.6.2006 pro-forma % Changes A/C

Figures in thousands of euro A B C absolute %

Direct funding 88.248.028 47,8% 85.621.008 47,5% 80.187.085 46,8% 8.060.943 10,1%

Indirect funding 96.255.378 52,2% 94.446.401 52,5% 91.214.541 53,2% 5.040.837 5,5%

of which: assets under

management _{56.303.757 30,5% 55.302.413 30,7% 53.783.963 31,4% 2.519.794 4,7%}

TOTAL FUNDING 184.503.406 100,0% 180.067.409 100,0% 171.401.626 100,0% 13.101.780 7,6%

As shown in table 11, direct funding from customers, the sum of “Amounts due to customers”

(liabilities item 20 net of policies of a predominantly financial character issued by UBI

Assicurazione Vita, because these are more appropriately classified within assets under

management) and “securities in issue” (liabilities item 30), rose to 88,2 billion euro, an

improvement of more than 10% compared to June 2006 (+8,1 billion). The increase on a half yearly basis was 3,1% (+2,6 billion).

Net of EMTN securities, however, direct funding remained unchanged during the first half, with an increase of 4,2% on an annual basis (+3 billion) to 74,3 billion.

Direct funding from customers

Table No. 12 30.6.2007 pro-forma % 31.12.2006 pro-forma % 30.6.2006

pro-forma % Changes A/C

Figures in thousands of euro A B C absolute %

Due to customers (liabilities item 20) 48.364.006 54,8% 48.119.051 56,2% 45.166.476 56,3% 3.197.530 7,1% - financial funding of UBI Assicurazioni Vita -605.322 -0,7% -614.960 -0,7% -616.963 -0,7% 11.641 -1,9%

Due to customers 47.758.684 54,1% 47.504.091 55,5% 44.549.513 55,6% 3.209.171 7,2% Securities in issue (liabilities item 30) 40.489.344 45,9% 38.116.917 44,5% 35.637.572 44,4% 4.851.772 13,6%

of which: EMTN (*) 13.904.591 15,8% 11.596.496 13,5% 8.812.403 11,0% 5.092.188 57,8%

TOTAL DIRECT FUNDING (**) 88.248.028 100,0% 85.621.008 100,0% 80.187.085 100,0% 8.060.943 10,1%

of which: - preference shares (***) 570.000 0,6% 570.000 0,7% 570.000 0,7% - -

- EMTN (subordinated securities) (****) 2.490.000 2,8% 2.490.000 2,9% 2.140.000 2,7% 350.000 16,4%

(****) Nominal values.

(*) The corresponding nominal values amounted to 13.927 million euro as at 30th June 2007, to 11.598 million as at 31st December 2006 and to 8.825 million as at 30th June 2006, with an annual increase of 5.102 million .

(**) The figure for 31st December 2006 is different from that previously published because of a marginal reclassification to the item "other liabilities".

(***) Nominal values. Preference shares were issued by BPB Capital Trust amounting to 300 million, by Banca Lombarda Preferred Securities Trust amounting to 155 million and by BPCI Capital

Trust amounting to 115 million.

In terms of the types of funding, tables 12 and 13 show that the increase of 8,1 billion on an annual basis consisted of 4,9 billion from securities in issue and the remaining 3,2 billion from all other types of funding taken together. As concerns the latter, current accounts and sight deposits (+1,5 billion), driven again by “bundled” accounts, made a determining

contribution together with reverse repurchase agreements (+955 million) and time deposits (+649 million).

Composition of direct funding from customers

Table No. 13 30.6.2007 pro-forma % 31.12.2006 pro-forma % 30.6.2006 pro-forma % Changes A/C

Figures in thousands of euro A B C absolute %

Current accounts and deposits 40.765.936 46,2% 41.119.990 48,0% 39.215.987 48,9% 1.549.949 4,0%

Time deposits 1.736.439 2,0% 1.573.984 1,8% 1.087.106 1,4% 649.333 59,7%

Funds administered on behalf of public

bodies 4.786 -0,1% 4.820 0,0% 6.619 0,0% -1.833 n.s.

Financing 66.170 0,1% 60.708 0,1% 85.962 0,1% -19.792 -23,0%

- financial leasing 1.931 0,0% 3.300 0,0% 1.749 0,0% 182 10,4% - other 64.239 0,1% 57.408 0,1% 84.213 0,1% -19.974 -23,7%

Amounts due for commitments to repurchase

own equity instruments 171.339 0,2% 169.627 0,2% 169.627 0,2% 1.712 1,0%

Liabilities relating to assets transferred not

derecognised in the accounts 4.328.097 4,9% 3.948.252 4,6% 3.372.662 4,2% 955.435 28,3%

- reverse repurchase agreements 4.328.097 4,9% 3.948.252 4,6% 3.372.662 4,2% 955.435 28,3% - other - - - - - - - -

Other payables 1.291.239 1,5% 1.241.670 1,5% 1.228.513 1,6% 62.726 5,1%

- financial funding of UBI Assicurazioni Vita -605.322 -0,7% -614.960 -0,7% -616.963 -0,8% 11.641 -1,9%

Total amounts due to customers 47.758.684 54,1% 47.504.091 55,5% 44.549.513 55,6% 3.209.171 7,2%

Bonds 36.783.657 41,7% 33.086.530 38,6% 32.254.871 40,2% 4.528.786 14,0%

Other certificates 3.705.687 4,2% 5.030.387 5,9% 3.382.701 4,2% 322.986 9,5%

Total securities in issue 40.489.344 45,9% 38.116.917 44,5% 35.637.572 44,4% 4.851.772 13,6% TOTAL DIRECT FUNDING 88.248.028 100,0% 85.621.008 100,0% 80.187.085 100,0% 8.060.943 10,1%

Securities in issue increased on an annual basis by 13,6% to almost 40,5 billion euro, driven by bonds, which rose to 36,8 billion and now account for 41,7% of all direct funding.

As table 12 shows, funding from bonds was fuelled by 5,1 billion from new issues on international markets as part of the EMTN programmes(Euro Medium Term Notes).

The EMTN securities currently in issue come from two different programmes: one on the London financial market, where the relative notes are admitted for trading (they relate to the former BPU Banca), for a maximum issue of up to 10 billion euro, and one on the Luxembourg market, where the relative securities are admitted for trading (they relate to the former Banca Lombarda e Piemontese), for a maximum of up to 6 billion euro.

In consideration of the operation to merge Banca Lombarda into BPU Banca, this latter issue has not been renewed. To replace it and in order to meet the requirements of the new Group, the Parent Bank, UBI Banca, raised the maximum limit from 10 to 15 billion euro, which was authorised by the London listing authority on 1st _{July 2007.}

More specifically, at the end of June the existing stock of these securities had reached a nominal amount of 13.927 million euro (of which 2.490 million subordinated). A nominal amount of 5.702 million of these were issued by the former Banca Lombarda e Piemontese (of which 1.150 million subordinated).

Over the course of twelve months, new issues amounted nominally to 5.272 million against maturities/redemptions of approximately 170 million. As concerns the subordinated component, these consisted of two issues for a total of 500 million against a bond redeemed for 150 million.

New issues in the first six months of 2007, on the other hand, were all concentrated in the first quarter with a nominal value of 2.350 million against maturities/redemptions of approximately 21 million (of which 16 million relating to a subordinated bond).

As concerns customers by market segment1_, operating figures in terms of average volumes, for network banks only, show annual growth in funding of 4,3% for the retail market, of 10,7% for the private market and of 6% for the corporate market.

Finally table 14 shows the geographical distribution of traditional funding (consisting of current accounts, savings deposits and certificates of deposit) in Italy (reconstructed in homogeneous terms also for the comparison period).

Given the Group’s particularly strong roots in northern Italy, the figures show a particularly marked concentration of funding in northern regions (71,7%), as compared with both southern (14,8%) and central regions (+13,5%).