UniCredit Bank Ireland plc

Background to the Contraventions Contraventions 1 and 2 In October 2011, following a three notch simultaneous ratings downgrade of the Republic of Italy, the Firm immediately notified the Central Bank that it had an exposure to non-Euro denominated sovereign Italian bonds in excess of the permitted large exposure limits. In January 2012, following a two notch simultaneous ratings downgrade of the Kingdom of Spain, the Firm immediately notified the Central Bank that it had an exposure to non-Euro denominated sovereign Spanish bonds in excess of the permitted large exposure limits. These downgrades led to the non-Euro denominated sovereign assets being reclassified for the purpose of large exposure requirements. Prior to the downgrades, each of these assets had a risk weighting of 0% but following the downgrades the risk weighting moved 2 immediately to 100%. Following notification to the Central Bank, a remediation proposal was made which was ultimately approved. Contravention 3 and 4 In January 2013 the Firm notified the Central Bank that its exposure to one of its clients had also exceeded the permitted large exposure limits for certain dates in November 2012 and December 2012. This occurred as a result of an increase in the Firm's exposure to this client and the failure by the Firm to monitor at all times its total exposure to this client for large exposure purposes.