UniCredit to merge seven subsidiary banks

The board of directors of UniCredit has approved the One for Clients project and merger.

The approval will enable the UniCredit group to simplify its structure, proximity to territories and communities, safeguarding important brands UniCredit Banca, UniCredit Banca di Roma, Banco di Sicilia. Moreover, this project will ensure an efficient organization granting additional authority to the networks.

The seven subsidiary banks are UniCredit Banca, UniCredit Banca di Roma, Banco di Sicilia, UniCredit Corporate Banking, UniCredit Private Banking, UniCredit Family Financing Bank, UniCredit Bancassurance Management & Administration with the parent company UniCredit Spa.

Similar to the structure that currently exists in Austria, Germany and Poland, the board has also decided to appoint a country chairman for Italy. His role will be to act as a point of reference for the group's activities in the Italian market and to coordinate its territorial strategies. He will have co-responsibility for the business results together with the Italian network heads.

Gabriele Piccini, CEO of UniCredit Banca and head of Italy retail network, has been appointed as country chairman for Italy. He will report to Roberto Nicastro, deputy CEO.

The country chairmen of Germany and Austria will report to Sergio Ermotti, deputy CEO, while those of the CEE-countries will report to Federico Ghizzoni, head of CEE banking operations.

The project, which has been designed under the leadership of deputy CEO Paolo Fiorentino, strengthens the current divisional model of the group and will create four specialized business segments in Italy, Austria and Germany, as: families, dedicated to private customers with assets up to €500,000; SMEs, for companies with yearly turnover up to €50m; corporate banking, for companies with yearly turnover over €50m; and private banking, for customers with assets above €500,000.

Seven territorial areas will be set up in Italy. The task of the managers of these areas - the heads of territories - will be to act as points of reference for relations with major local institutional partners, within an Italian network committee chaired by the country chairman, in which the three Italian network heads and the head of the territorial relations department will participate.

Alessandro Profumo, CEO of UniCredit, said: "Our company will be more focused on our customers and closer to the territories and local communities. We are therefore prepared to deal with the challenges that modern banking has to face today."

On August 3, 2010, the board of directors will resolve on the merger that is expected to become effective as of November 1, 2010, subject to the required authorizations by competent authorities.