Outlook

Expansion in Russia

With the acquisition of Aton Capital, one of Russia’s leading investment banks, we have taken an important step for the strategic growth of operations in Russia. The transaction was signed at the end of December 2006 and attracted much attention from Russia’s financial community; the closing is to take place in the first half of 2007, when the required offical approvals are available.

UniCredit Markets & Investment Banking is cooperating closely with International Moscow Bank, which maintains a strong market position in corporate customer business, with the aim of becoming a leading market participant in Russia. UniCredit Group has a very strong position in the distribution and structuring of products across all asset classes, and in investment banking in Austria and Central and Eastern Europe. Together with the Group’s technical expertise in finding innovative solutions for its customers, this constitutes the basis for further growth of the Markets & Investment Banking Division.

CEE capital markets expanding

In light of general convergence trends, the experts of our New Issues unit expect a further rapid rise in business volume in the region of Central and Eastern Europe, in regard to the volume of new bonds launched on the international eurobond market and on the national bond markets. Equity capital activities are also expected to remain at a high level. The strategic capital flows from West to East and the equity capital flows of institutional investors show no sign of flagging.