Strong competitive position in its domestic market, including retail roots in Italy's most wealthy regions; Superior profitability and efficiency, driven by the ability to constantly invent new products; Sound balance sheet, characterized by satisfactory capital, liquidity and asset quality positions; and Credible strategy, with strong track record of management in reaching self-imposed targets. Revenue composition, with an increasing weight of income from potentially volatile derivatives sales business; and Exposure to banking markets with higher economic and industry risks in Eastern Europe. The ratings on UniCredito Italiano reflect the bank's strong domestic market position, credible strategy, and sound financial profile. The bank has maintained a low-risk profile and superior earnings capacity in a difficult operating environment, despite the challenges related to
